The Bottom Line For Entrepreneurs

If you're an entrepreneur you face some uncertainty from time to time. What is the biggest risk you run into as an entrepreneur?

Is it losing face, losing people, or losing money?

"Cash is King" is a Cliche that holds true.

Usually, the problem most entrepreneurs face is losing money. Your cash flow is the key to your business booming, and also the lifeblood BOTTOM LINE for the life of your company.

Q: How can you make sure you never run the risk of losing your business?

A: Always make sure the money coming in is higher than the money going out.

In a recession, many companies close offices that weren't profitable or achieving as high of profit margins as others. The question I would pose to those companies is "Why did you allow those offices to be open when it wasn't a recession?" Seriously, if it makes sense to close the office during a down economy, it probably makes sense to close it during an up economy, too.

Part of the problem with entrepreneurs is they rely heavily on the availability to cash lines. If the average length of time for you to close a sale extends two months to five months, and you only have three months cash in the back, you've got a problem.

So manage your business in such a way that your expenses do not outweigh your cash flow and your availability to money. If you're currently running at a negative, with no projection for positive cash flow, I'd have to say I hope you have enough money in the bank to justify such a cocky behavior. Jeff Bezos, CEO of Amazon, pulled it off. However, he also had a mountain of money. Most entrepreneurs won't be able to last beyond the money. So, why push your luck?

Instead of buying new computers, hold off and let new sales pay for the new equipment. I've taken that approach with my company. Every time I succeed with a new sale, I buy something on my list or add a new software tool to make me more effective. But I don't buy the product or software until I've proven I can support the revenue stream with a new client.

Try supporting your cash position with the philosophy that sales drives the business and you'll see your focus improve, too.

Protect your cash flow and you protect your bottom line.

What do you think? How have you implemented solutions in your company to improve cash flow?
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Be A Better Entrepreneur: The Savvy Entrepreneur Series, Part II

If you have an inkling of an idea, you might be considering becoming an entrepreneur.

Entrepreneurs have an interesting life, without a doubt. If you want to be an entrepreneur, you'll learn many skills you might not posses from the corporate world, for sure. And, thankfully, there are wise owls willing to share their experience with us. For my part, I'll share what I've learned with you, and point out several aspects of entrepreneurialism I discovered the old-fashioned way: from the school of hard knocks!

Keys To Becoming A Better Entrepreneur

1. Your "Big Idea" is just that. Somewhere between 5 and 500 other people in the world may have had the exact same light bulb moment you did. The only difference is who will ACT on their big idea.

2. Your "Big Idea" is just a beginning. Where do you go from here? How do you create a plan? What ways might you implement your strategy? Who will you hire? Where will you base your headquarters? Who should you hire to help? There are so many questions facing entrepreneurs - start to make a list of ways you think you might need help. Then seek out resources to help you in your journey.

3. Most companies do not fail because their idea stinks. Most companies fail because their execution stinks. What am I talking about? Well, for starters, how well are you managing your money? This is the #1 place businesses fail.

(# Months) Life of business = $ in bank - burn rate per month + new money in.

This is the bottom line. Yep, cash IS king! If you're able to get your ego out of the way, you might look at this first:

a. How much money are you bringing in versus how much money are you spending?

When you can answer that question and the money in is greater than the money out, you're getting somewhere!

What's the next biggest area of execution where people fail? They go it alone. It isn't easy to be an entrepreneur. It's even harder to do it by yourself. This is why my firm, ARRiiVE Business Solutions, has two "i" letters (and why they're emphasized) -- because you no longer have to feel you're launching your product by yourself. I help you and we're now a team! i and i is the Rastafarian way of saying "we" so why not "i" and "i" doing it together?! Anyway, decide what kind of help you want on your team: marketing, legal, financial, operational, managerial, sales, support, HR, etc., and go get it. Most companies need help with either marketing or operations. The positions I've hired or outsourced have been marketing 60%, operations 25% and legal and financial the remainder. Make sure, at the least, that you have a good attorney and a good accountant. Their advice is always handy.

b. Get good help. Most entrepreneurs have a difficult time getting past their ego. If you can't get beyond your own "I think I know the answer" problem most entrepreneurs suffer from, you won't ever lift a finger or write a check to get help from people who can and will help you. I'd start with your operations. Make sure you have a solid product or service to offer FIRST, then you'll have a solid way to make money.

c. While you're getting help, make sure your marketing is in order. Most entrepreneurs skimp on part of their marketing. Perhaps they think that saving money in this area is wise, but it is the wrong place to save (I'll say more on that in a bit) but no -- make sure you spend money where you need to in order to have solid marketing.

Critical Marketing Success Tactics

1. Get A Logo. Your logo represents what you do. When I designed my first logo, I hired a graphic designer to help. (See www.AspireNow.com). My second logo, third, fourth, and fifth, I hired out help, too. Now I design logos for others whenever I want the side work, see www.ARRiiVE.com for an example of a logo I designed.

2. Professional Business Card. Hire a professional designer and use proper card stock. You'd be surprised how much more seriously people take you when you make this one simple change. If you're using the Avery ink jet printer cards, stop right now, call me. I can help you. The layout on your card is as important as the stock. I've also seen people skimp thinking they know graphic design (artists, especially) and then after I get through with their card, they always thank me for improving their card design.

3. Professional Website. Get your website right. Don't start big (like I did) start small. Keep it simple. Then focus on getting the word out and building traffic. The good news is that today you can start a website far less expensively and with much more power than when I started AspireNow.com. The bad news is that there are MILLIONS of sites you're now competing with. You'll likely need to hire an expert who knows how to get Top 10 position on Google and can teach you tricks how to drive traffic to your site (hint, hint). I have designed many websites. At ARRiiVE Business Solutions, I still offer web design as a service even though I now outsource 98% of this work. This is a good thing, because you gain extra eyeballs on the site design challenge and also gain another expert's opinion in the process, along with someone who's been there and done that and also understands layout AND sales copy. I find this useful to my clients and they're happy with the end-result.

4. Off-line Promotions. Are you going to trade shows? Are you going door-to-door? Are you speaking publicly about your services or related topics? (Speaking drives a considerable stream of revenue to my business). Have you created a nice 3-part brochure that showcases your product(s) and service(s) properly? Again, hire it out, do it right. But once you have the material to hand someone, you have to take ACTION and get out there. Go to networking events. Leave them with something but always ASK FOR SOMETHING in return. How can they help? Who do they know? Can THEY use your service?

5. Hone your Sales Skills. Entrepreneurs must learn to sell or they will fail - period. You must be a good salesperson. Right now, I offer a lot of sales advice at the ARRiiVE: Innovations In Business blog. You can browse around there, although sign-up for the blog on email because in the future I'll be offering video training to help you improve your sales techniques and grow success.

6. Improve Your Marketing Pitch. When you can say what you do in 20 seconds and people get excited and ask you to meet with them, you've got your pitch refined. Seriously, that's the essence of it, right there. Test it, test it, test it, practice saying it BEFORE that important contact at the mixer you attend, so you have it right on target there and capture what you need from those vital interactions.

There's so much more to being an entrepreneur... if I could leave you with one super-valuable piece of advice I learned the hard way: downsize your expenses immediately. Many entrepreneurs only give themselves 6 months worth of money to make it. We all read how it takes entrepreneurs up to 5 - 10 years to succeed, but then why would we only allow our self only six months? This is stupid. It is ego. Take out your ego and downsize immediately if you are serious about making this dream a reality. Sell your house, drive a less-expensive car, get rid of HBO, do whatever it takes, but downsize your bills. Figure out how to give yourself a 5 year money plan and then spend your money wisely.

If I had done this one step of advice I just gave you, I would have incurred zero debt during my first five years of business. Instead, I continued to live in an expensive house, drive a nice truck, and kept the cable bill on. Be smart with your money, and then figure out how to make more money quickly, and build, and improve, and learn, and improve. Notice I said "learn" not fail. I don't view failure as failure unless I failed to learn from it. So, I say learn, build, improve, learn, build, improve... it's a multi-part process. We will take a step back once in a while. But learn and then go two or three steps forward.

Take a deep breath... exciting days are ahead of you!

Coming soon:

Be Different: The Savvy Entrepreneur Series, part 3 of 10.
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The Value Of Starting Small - The Savvy Entrepreneur Series, part 1 of 10

Welcome to "The Savvy Entrepreneur Series - Part 1 of 10 - The Value of Starting Small"!



It is valuable to start small if you aspire to be a savvy entrepreneur.

When entrepreneurs dream, they often dream large. Is that good or bad? Well, if you ask many people, the problem with dreaming large is that large projects require large money to get off the ground. I recall my first seminar I launched. Rather than start small, with a handful of people in the room, I "dreamed large" and booked a room that held 600, scheduled guest speakers, booked a band, and so forth. I then went on the radio and promoted this seminar. Several days prior to the big event, we had less than 20 sign-ups for this seminar and realized I ought to have dreamed a little smaller when I launched the seminar. Or, at least I could have started smaller and held the bigger dream as a future goal. I ended up pulling the plug on that seminar after I realized a small turnout wouldn't cover overhead and lost about $2,000 in promotion fees plus a considerable amount of valuable time. It also gave me a little egg on my face at the time, too.

My point: start small.

The biggest mistake entrepreneurs make is starting too big, or even "acting" like they're big. Hey, if you're small, that means you're nimble. Be quick. Be nimble. And be DIFFERENT. This is the value of being small. Capitalize on that value. Start small and ACT like you're small.

Match your marketing with what you offer:

Don't act big when you're not big. Act small and promote the strength of being small to your clients.

If you're seeking ways to grow your business, don't be afraid to admit you're not a huge company. I'll admit that ARRiiVE Business Solutions is not a big company at the time of this writing. Will it grow? Probably. Do I need to act bigger to succeed with my products and services? Not really. Because people who hire me KNOW that I have an extensive network of resources at my fingertips. If my team can't get the job done, we know who to outsource work out to in order to complete stellar work at a highly reasonable fee.

Make sure you deliver what you need to deliver:

Maximize what you can do. Outsource what you can't do that is directly related to what you can do and need to deliver. Don't do the rest.

Make sure that you know your products and services. Build your team to deliver those services. And, if you can't hire permanent employees, build a network of outsourcing partners who enable you to deliver high quality work. I've been doing this successfully at ARRiiVE Business Solutions for several years, now.

Keep your start-up costs low:

When we start small, we can keep our cost structure low, develop a core service, then repeat and grow our marketing message until a massive number of customers consider us a valued business partner. From there, we can grow bigger. Use your noggin and be a quick, nimble, savvy small fish in a small pond and you'll eventually grow to be a bigger fish who can jump to a bigger pond.

Coming soon:

Be A Better Entrepreneur: The Savvy Entrepreneur Series, part 2 of 10. ________________________________________

Copyright © 1999-2008 by ARRiiVE Business Solutions. All Rights Reserved. SUBSCRIBE.

Do Something Different

Are you finding it hard to succeed in your business objectives?

If so, you might be in a rut. If this is you, there are a few ideas I'm going to share to help you break free and start getting the success ball rolling again.

First, minimize what didn't work.

If you're finding yourself spending a lot of time trying to sell a service that either has a low profit margin or high levels of competition, you might want to minimize selling that service for a while. I'm not saying to can it completely. Just consider leading with something else for a while.

Second, do something different.

Yes, break away from what you have been doing and focus on something where people have told you "you know, if you could do.... I'd pay money for that." Maybe it's time to offer that service! Break away from what you did that wasn't working, and try something new that might.

I had some success with one of my services this past year, but it wasn't exactly breaking the bank open nor was it exciting me to even deliver that type of work. So, I decided to do something different. I looked for a new angle in a related service where I could use my skills, knowledge, and background to maximum affect.

Third, improve your new service.

I also took stock in recent customer comments and honed a service through feedback until I had a viable new service to offer into the marketplace. Each time I sell this service I get more and more focused on what my client's need to get the biggest return for the dollar invested and deliver more and more of that. As a result, I've been able to raise my prices. That's a good thing, isn't it?

Fourth, find a way to bundle more services to increase your price (upsell), differentiate, and add value.

Add additional services into the offering and bundle the service or product with other products and services you sell. This may increase the amount per sell. You've heard it's six times easier to sell to the client who already buys and this is true. So, get more money from each client by offering an upsell.

Fifth, downsell (unbundle any services they don't want) to get what is in front of you.

By downselling, I mean don't be afraid to unbundle your products and services to get the sale the customer CAN AFFORD. In other words, get what's in front of you. Tom Antion, a great Internet marketer, often suggests a downsell for ebook sales. So, if they say "I can't afford the $39.95 e-book" then offer them a window that says "Hey, maybe my e-book isn't worth $39.95. What do I know? Why don't you tell me what it's worth!" and then he offers them options of $29.95, $19.95, or $14.95. You'll capture 30% more orders at the $14.95 and maybe even once in a while a $19.95 order!

So, if you're stuck in a rut, try the following ideas to break free to create more success:

First, minimize what isn't working.

Second, try something different. It certainly can't hurt to try something new. I always suggest offering the service that people have been suggesting they'll pay for if you offer.

Third, expand the value and differentiation to continue to grow the new service.

Fourth, expand your offering. Find a way to add back other services into the offering to bundle services and add more value. A client may ask you to unbundle a solution, but you'll sell more if you lead with the bundled solution.

Fifth, offer downsells to sell what's in front of you. If the client will only buy the base solution, sell that. If they client can only afford a trial solution, sell that then. Just sell what's in front of you. The more feet you get in the door, the more opportunities to get your whole body in later.
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Copyright © 1999-2008 by ARRiiVE Business Solutions. All Rights Reserved. SUBSCRIBE.

You Call The Shots

A new book for entrepreneurs just came to my attention. This book was written by a guy who made his first $15,000 by the age of 9 and started an internet site more successful than most internet marketers by the age of 15. Inspiring?

Read it yourself and be the judge...

http://astore.amazon.com/aspirenow-20/detail/B000WPMQHI/002-1778283-8772807

You Call the Shots: Succeed Your Way-- And Live the Life You Want-- With the 19 Essential Secrets of EntrepreneurshipBy Cameron Johnson, John David Mann

One of my friends, Chris Howard, had this to say about the book:

"I really love the full title, though, because it really
describes what Cameron is all about: "You Call
the Shots: Succeed Your Way - and Live the Life
You Want - With the 19 Essential Secrets of
Entrepreneurship." That's right, it's all about
Living the Life You Want, and that's what Cameron
will help you do through reading his book."

Click here to order your copy of You Call The Shots now:
http://www.cameronjohnson.com/bookbonus?11"

Note: that link that Chris Howard provides is cool - they give you a bunch of BONUS products AFTER you just provide your Amazon order number. So, if you're like me, you'll keep your Amazon order number, then input it with your other email information in the bonus link there by CameronJohnson.com: http://www.cameronjohnson.com/bookbonus?11. And, no, I don't get anything from the Bonus Link (maybe they'll throw back some kudos my way? hint, hint!)

I just ordered my own personal copy, so you know I'm intrigued!
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Copyright © 1999-2008 by ARRiiVE Business Solutions. All Rights Reserved.

Plan For Success

I'm always amazed when I talk with a business leader and find out they don't have a business plan or sales plan. Why? Because, they just failed the most important step in ensuring success with their business:

Develop a plan!

A former manager of mine, Dick Boren, used to put a slide up on the overhead in every sales meeting. It read the following words: "Fail to plan, plan to fail."

Now, while that slide is perhaps against the Law of Attraction (why put the words fail on a slide in the first place?) it does highlight a basic truth in selling: you must plan to succeed if you are going to increase your success. As a law of attraction coach, I recommend another quote Dick used even more:

"Plan your work, work your plan. Measure your success."

See, because, when you have a plan for success, you're much more likely to succeed, because you've made a written agreement for success. People tend to honor written agreements more than verbal agreements. Why do you think that out of 100 graduating students, the 3% who wrote down their goals achieved more than the other 97%? This statistic came from a study of graduating students at Harvard University over fifty years ago. In the study, they found that the 3% who wrote down their goals were wealthier than the other 97%, combined. Not only that, but they were also more content. Big surprise, huh?

I recently read that less than 1% of Americans write down there goals. While I haven't yet substantiated that statistic, perhaps that might explain why Americans have so much debt! Land of the free? It's hard to be free when you're buried under a mountain of debt. I've been on both sides of that picture and I'd much rather be debt-free, with money in the bank, than fighting debt collectors.

So, if you're considering how to succeed, maybe you're nodding and realizing, "Hmm.. Scott's right! I need a plan."

Do you have a plan for business success?

If you're writing a sales plan, you'll need some basic elements, which include:

1. Vision. What are you trying to accomplish in your selling efforts?
2. Goals. What numbers, strategies, and basic goals do you wish to accomplish?
3. Company numbers. I've always found a good rule of thumb is to take other people's expectations of me and double them. Why? Because, if I miss MY goals, I'll still HIT THEIR GOALS. And, that's all upper managers seem to care about. You can even do this for yourself, just pretend you're a manager. Give yourself a quota. Then put on your salesperson hat and double the quota! Write down the new number as your goal.
4. Know your territory. If you're going after a sales territory, chances are high that you probably are either organized by a geography, product offering, or vertical market. Out of all the strategies, I've always found that organizing outbound telephone or email calls by vertical market to be wisest, as then you're speaking with the same vernacular during your calls. For example, problems managing the flow of paper in healthcare will carry over from one hospital to another. Language can be quite different between prospects, so by organizing by vertical you can lower the impact of this challenge. However, when making outbound face-to-face calls, it is wisest to organize by geography. This is to limit the cost and time-impact between calls. So, use both strategies to effectiveness if you wish to maximize your time both inside and outside while selling.
5. Know your customer. If you were to ask me the single most important skill a salesperson might possess, I'd have to say "The art asking intelligent questions and listening to the answers for meaning." How many salespeople are great at telling you all about their product? How many salespeople are great at asking intelligent questions, listening, and then converting that knowledge into a solution for the customer? The latter is the salesperson I want to hire.
6. Know your product. Okay, so you did a good job questioning your prospect. You listened to their problem. But when it comes time to describe your solution to their problem, you need to know what you offer, and specifically how it relates to what THEY need. I've been shocked at the number of times in my life when a salesperson either "winged it" or outright "lied" when they didn't know the answer to a question. Don't be lazy. Do your homework, know your product. Especially the features, functions, and benefits that will apply to your prospect's needs. Don't leave it up to them to figure it out. Make it easy for your prospect to buy from you.
7. Have a gifting strategy. Gifting is the #1 most powerful way to build relationships quickly.
8. Have a follow-up strategy: Following-up is the #1 most powerful way to get remembered and strengthen the relationships you build.
9. Have a plan to build value, differentiate, and surprise your clients on EVERY call and in every meeting. This is the #1 most important rule in executing sales calls.
10. Have an action plan. Which accounts, contacts, and strategy will you utilize for each prospect? You ought to at least define your strategic plan for your top ten prospects.

Similar techniques may be used in a business plan, although you'll add in competitive reviews, marketing strategies, market segmentation, financial analysis, and more.

Do you have a plan for personal success?

I even suggest to people to write down their personal goals each year. If you're running a business, evaluate your goal achievements on a monthly and weekly basis. Don't just wait for the quarterly review, as that might be too long of time-lapse between review cycles.

Last, if you need help with a plan, seek out professional assistance. My firm, ARRiiVE Business Solutions, offers executives help writing business plans to raise funding, business plans to improve strategy, sales plans, and personal growth plans. When you work with a professional, you cut the bull from "template" business plans you can buy. You eliminate the generalized answers and fluff you might get from your SBDC (small business development center) and software templates. Many software business planning systems use a "fill-in-the-blank" type of approach to generating business plans. I don't recommend fill-in-the-blank business plans. They are really obvious to someone familiar with reading plans. I use a template, yes, but I custom-write each plan for each client. Why? Because I find that I don't have as many holes. And, even more than that, I don't get FLUFF in my plans. You really don't want a plan if it is full of guesses and generalizations.

Get a plan that offers specific actions, dates, and ways to measure results against the plan to ensure you succeed with your objectives and strategies.

Last, remember, if you plan your work, you plan to succeed. Plan your work, and work your plan. Measure your results. And celebrate your wins! Life is too short not to have a little fun along the way. After all, success is in the act of doing, perhaps as much or more than the act of accomplishment.

The quality of your plan for success directly related to the quality of your results!

If you don't have a solid (quality) plan for success, you might be blocking your development. Either write one yourself; or, better yet, hire an expert to help you plan for your success. Watch how many positives will be drawn to you when you are working from a well-written plan. You can succeed. You will succeed. Make this your mantra. Make a plan. Write it down. Tweak it, work it, measure it, and celebrate it when you win.
__________________________________

Post by Scott Andrews, CEO of ARRiiVE Business Solutions.

ARRiiVE Business Solutions helps executives improve sales, launch products and services, and build dynamic, cross-functional collaborative teams. For more information, contact info (at)ARRiiVE (dot) com or call us at 1 (805) 459-6939.

Copyright © 2007 by ARRiiVE Business Solutions. All Rights Reserved. You may republish this article only if you publish in WHOLE with the COPYRIGHT and ALL ACTIVE LINKS intact.

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Have A Big Idea?

I have a big idea.

And, I am inspired by a CEO, who in his past also has demonstrated big ideas. His company has done some really great things. In fact, this company is now a multi-billion dollar empire. I want to share my thoughts and business model with the CEO, and see if he doesn't have a usage for ways to utilize my big idea within HUGE (my fictional renamed version of his company's name). It could be a big win for my company and a win that would lead to other wins.

Can you relate?

So, I visit HUGE's website to see how to contact the CEO. But, rather than that, there was an invitation to submit my big idea. It glared like a neon light from HUGE's website page:

"Do YOU have a BIG IDEA?"

"YES, I have a big idea!" my insides practically screamed out to tell the website operators of HUGE. Their format of inviting this question seemed innocent, enough.

And, perhaps, they DO intend to honor my big idea.

However, big corporations are caught, literally, between a rock and a hard place. They want to be innovative. They even want to compensate people for innovation. In talking with the largest corporation executives, my experience has been pleasant in that they SEEM to want to encourage innovation within their organizations, supply-chain, partnerships, and consumers of their products and services.

Yet, they are bound by legalism, corporate codes, human-resource policy, and the sheer challenge of simply sorting through the mountainous barrage of email, mail, and SPAM hitting their organizations on a daily basis. But, that's not all. Large organizations are also impacted by the fact that they might have multiple divisions. And, in many cases, these organizations do not communicate with each other very well --if, at all.

I began my search through their site to try to initiate a discourse with HUGE to submit my big idea. As I drilled down past the qualifying page describing if I had a big idea, my excitement waned as I found myself reading the HUGE company's request that I figure out which of their vast organizations would be the best fit for my idea, then to figure out who to contact from there. My approach felt more and more nebulous, rather than more and more defined. Then, I found a form! Ah Ha! Perhaps this was the magic bullet to cut the corporate-crap and get to the heart of the matter: how to submit my BIG IDEA to this wonderful company!

Here is the form, with the company name changed to "HUGE" and other detailed information omitted or edited to protect the innocent (including me!):

"IDEA SUBMISSION AGREEMENT

HUGE and its affiliates, including without limitation HUGE USA and its divisions, subsidiaries and affiliates (collectively, “we” or “us”) understand that you have an idea, proposal concept, project or transaction (“idea”) that you think will be of interest to us. You should realize that an idea that is new to you may be old to us, or may be in the public domain, or already in a planning or development stage by us. Thus we have found that good business practice requires a full explanation of the conditions under which we can review your idea."

1. NO OBLIGATIONS
I cannot reprint this exact clause. However, suffice it to say that HUGE is outlining that they are not under obligation to use your idea, nor are they under obligation of an agreement should it be previously submitted or considered by them.

Blog post editor's comments: This means that HUGE doesn't have to use your idea. That seems fair enough. It also means that HUGE might use your idea and they are not bound to you if they use it. Does that seem fair to you?

2. LIMITED RIGHTS TO YOUR IDEA

This clause, while I cannot reprint the exact wording, states that your intellectual property is protected under patent, trademark, and copyright law. It also stated that consideration of your big idea submission in no way impairs their right to contact the validity of your intellectual property.

This gives HUGE the right to contest your patent, trademark, and/or copyright should they decide they want to use your idea. This clause limits YOUR rights as idea submitter and broadens HUGE company's rights if or when they ever decide to use the idea or creatively "borrow' it. At least, that's how I read this. Call me paranoid.

3. NO COMPENSATION

Basically states that finder's fees, commissions, and so forth are not entitled.

This means that you're agreeing you won't be paid for HUGE bending down to hear your big idea. They're not agreeing to pay any fees for it at this time.

4. MISCELLANEOUS
This Idea Submission Agreement shall be construed and governed by the laws of the State of OMITTED without regard to its conflicts of laws rules. Any questions or disputes arising hereunder shall be exclusively resolved by either Federal or State courts situated in the State and County of OMITTED and you hereby submit to the jurisdiction of such courts.

This is a standard paragraph that means if you have to sue HUGE, it's going to be on their attorney's turf and in their home state. This is a legal disadvantage, in many cases, to the idea submitter. If I had to sue a company, I'd much prefer it to be in the State where MY company is incorporated than THEIR company's home state. Would you agree?

Your Acceptance of the Idea Submission Agreement

I acknowledge that no promises or representations either oral or written have been made to me by HUGE concerning my idea. Further, it is agreed that no change may be made in the Idea
Submission Agreement unless it is in writing and signed by both myself and HUGE. I have read
the Idea Submission Agreement set forth above. I agree to accept each of the conditions contained in the Idea Submission Agreement.

Brief Idea Description:___________________________________________________________
Signature:_____________________________ Address:__________________________________
Name (print):__________________________ Date:_________________________________ Phone:___________________________________
Email:___________________________________

Are you shocked in that I decided not to fill out this agreement. Maybe I'm just paranoid. Either that, or I hate forms. I'm not sure which is greater. I can certainly say that all of my enthusiasm to discuss my big idea with HUGE's CEO practically vanished after reading their Big Idea Submission Agreement. Yes, I'd still be excited to talk with him if he called me, but I stopped submitting my idea right there.

You see, I just find it extremely off-putting that HUGE would need a legal agreement to protect themselves and limit me in how I might approach them with a Big Idea. While it might satisfy the legal-eagles, it turns my entrepreneurial stomach and makes me yearn to sit across from HUGE company's CEO and ask him "How did it get to this?"

This agreement is actually a "nice" version of these corporate agreements. I actually felt it was the most kind and least limiting of agreements I've seen of agreements of this nature. That's right, I've seen worse. This is the fifth agreement like this I've either received directly or reviewed at a corporate website in the past 6 months. It seems to be a growing trend among corporations like HUGE. Is your own corporation utilizing an agreement like this?

You must realize that I cease to submit when you send me this agreement.

Why? Because I see it like this:

If I agree to this statement, I may have just limited my rights. I may have given you permission to use my big idea without compensation, recourse, and even given you the right to challenge my copyright in writing, which to some extent might be construed as inviting such challenge. this agreement makes me feel that my idea is not protected except by copyright or trademark law, may not be kept confidential, and may be used without any compensation to me, even though you might benefit enormously from implementing my idea. I realize that you didn't say OUTRIGHT that you would pirate my idea, but having an agreement LIMIT my protection of my idea, rather than PROTECT my idea, seems in YOUR best interest and not in MY best interest. And, that's counter-productive to the entrepreneurial process.

Disclaimer: I am not an attorney and I am NOT providing LEGAL ADVICE.

This post is for entertainment purposes only and merely to help entrepreneurs see the value in protecting their ideas. If you have a legal matter or wish to submit an idea to a corporation requiring you to sign a similar agreement, I strongly suggest you seek your own legal counsel.

That said, I welcome anyone with a law degree to tell me whether or not this agreement is as binding as I've outlined in this post. Is the agreement fair to the entrepreneur? I'm curious to get your take at it. Because, to me, signing an agreement like this is counter-productive to the experience of building a relationship where I'm excited to share my big idea.

If you're an entrepreneur with a BIG IDEA, how do you feel about signing such an agreement? It seems as if, more and more, the Idea Submission Agreement is becoming an obstacle to sharing your idea with corporations.

Please, discuss - I welcome your feedback and comments.

________________________________

Post by Scott Andrews, CEO of ARRiiVE Business Solutions.

ARRiiVE Business Solutions helps executives improve sales, launch products and services, and build dynamic, cross-functional collaborative teams. For more information, contact info (at)ARRiiVE (dot) com or call us at 1 (805) 459-6939.

Copyright © 2007 by ARRiiVE Business Solutions. All Rights Reserved. Reprinting of the agreement included some minor modifications. HUGE is a fictional company name intended to protect the larger company name's copyright and trademark. No copyright infringement is intended. You may republish this article only if you publish in WHOLE with the COPYRIGHT and ALL ACTIVE LINKS intact.

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Bootstrapping 101: Get It Together, Then Get The Word Out

It amazes me that out of all the companies started each year, less than 1% are backed by a venture capitalist or angel investor. Yet, out of all the entrepreneurs I've talked with over the past year, when asked about their biggest problem, over 80% of them will say either "funding" or "raising money" for their enterprise.

Is it possible most of them are wrong? I think so.

Here's why: not that lack of money is not a problem, because it is. But, many entrepreneurs start out their organization before they fully realize what they're into. Hey, I did, I ought to know. They think to themselves, "well, I've got enough money in my bank account, or with stocks, and a last resort, with credit cards, to pay the bills until this thing takes off." What they don't realize is that their timeline might be off: by YEARS. And that is when they get into the money scramble game of trying to pay bills and trying to keep their company going.

How do you stay out of this dangerous lack/fear game with money?


First of all, start by taking the amount of time you think it might take you to launch your firm, and triple it. Or, take the amount of money you think you need, and triple it. Either way, you're probably closer to reality with this new budgetary figure for cash (lifeblood) than the number you first assumed would cover your start-up.

Second, get your act together. Most executives starting their venture are so blinded by what they know that they don't realize what they DON'T know. Their business plans suck. They lack marketing. Their products are a mess. They aren't selling properly. And so on. So many entrepreneurs I've talked to know they need help, but when you say, "you need help with this aspect of your marketing, or your logo, or.." they'll turn right back around and say "oh, no, we've got that covered." But, just two days earlier they had admitted, in writing no less, that they did NOT have that covered. What gives? The problem is our inate ability to bullsh*t ourselves. Seriously. The only way to cut the bull is to get real and realize that we DON'T have it all together. A ship cannot sail if it's leaking too much water. For our business ship to sail, we need the next step, finding help for where we have holes.

Third, find professional help. An example of this is with patents, trademarks, and copyrights. There's no way I am going to recommend to you that you do your own trademark from a box. Get professional help. Do it right. There's no way I'm going to tell you that you can buy Quickbooks and you'll have your own built in accountant. No, hire a professional and meet with them on a quarterly basis. Pay them for their time. It is worth it to have your financials in order. Not only that, but how many executives consider getting outside professional assistance to help write sales scripts, website copy, structure teams, build sales presentations, and develop ways to market to their clients outside the norm?

Wait - let's take a step back. Are you making any money? If not, you need to look at why not. Most people are not making money for one of the following three reasons:

1. Product/service poorly defined: you have not fully created what you do.
2. Product/service poorly articulated: sales pitch, graphics not professional.
3. Product/service poorly marketed: not enough people know about what you do.

It's almost always one of these three blunders. If your problem is money, as in making any money, then you need to examine these three critical areas of your product lines and MAKE DAMN SURE you have your act together on these, or you've got a partial company, at best. (To me, I see holes in the hull of your sailboat.) I made this mistake when I first launched AspireNow (http://www.AspireNow.com). Rather than get one product really well articulated, with tight sales copy, dynamite graphics, packaged right, priced right, and then communicated through the various channels of marketing, I missed an opportunity to make money earlier by focusing on an online service and networking. And, it cost me a lot to run my business without that income coming in.

Mistake made = lesson learned. Fill the holes, right the ship.

So, I've been there. Don't do what I did. Do it smarter. Get your act together with your products and services. Don't skimp on product design. I've been redesigning all of my products to include classier pictures of people enjoying the product or solution. We buy from emotion, justify with logic. Don't skimp on sales copy. I've been selling and marketing long enough now that I can offer sales copy expertise to people who need it. Is your sales copy written to dig into people's guts and make them thirst for what you offer them? Good copy will provoke the curious prospect to buy. How complicated is it? Many products are now sold on the web with three page websites. Do you know why? One of my websites has an average page view statistic of 1.5 pages per visitor. That means, that if I don't get an order by page two, I'm not going to get an order from that visitor. And, although they MIGHT become a repeat visitor; then again, they might not. So, I figured out that I need to sell on the FIRST page they visit. Not *hope* the visitor decides I'm so wonderful to just click on over to the products page and buy all my stuff. It just doesn't work like that.


Last, if you're not getting the word out properly, you've set yourself up to fail.

What are you doing to get the word out? I'm joining professional organizations, cross-linking, blogging (to create backlinks and position my expertise), hosting a radio show, speaking as an expert on professional panels, speaking in person at professional events, and more. Notice I didn't say that I'm flooding the market with press releases boasting about what we can do? I didn't say pay for an expensive advertising program. Hey, you're boot-strapping, right? But you've got to find creative ways to get the word out and not drain your bank account.

One sales tool worth spending money on is gifts.

One of my philosophies in sales is that *you have to gift your prospects* much like a man ought to gift a woman when they are dating. Frank Sinatra said "you gotta gift 'em." From a man who once had a drawer with 200 toothbrushes stacked in it, he would have known, right? Anyway, if you're not gifting your prospects, you're not seeding them to like you. I have one company I'm helping get in the door of a major distribution center right now. My approach: gifting. I'm gifting each of their top managers, the product tester, the buyer, and several distribution center managers with a generous amount of product. I will include a simple one page letter explaining the virtues of partnering with my client's firm. And, I'll include a packet of marketing brochures to show the glossy material to back it up. Last, I'll include a page or two of client references, with testimonials.

Do you think I'll get in?

Many companies are now approaching ARRiiVE Business Solutions to serve as an "Acting VP of Key Accounts" to enable them to get into their top prospects. Now, they have a team of 10 salespeople who can't do it. But we can. Why is that?

Because we GIFT. Not only that, but we also have a strategy and structure to the process of the approach, the pitch, product demonstration, company demonstration, financial demonstration/trial-close, relationship implementation that wins business. But it never happens if we don't get the word out, first and then gift, second.

I recommend you utilize this approach to your marketing:

Blast small freebies to your mass marketing approaches.
Seed larger groups with a trial, but inexpensive gift.
Gift larger gifts in larger ways to your top prospects.

What I mean is when you run a press release, post a new blog article, send an email newsletter out, those types of marketing methods can be blasts that have a small hit but are large blasts of targeted people. After all, a blog may be hit by thousands of people. Put up a post at Squidoo and thousands may see it. Send out a press release, thousands my see it. You could even run an adwords campain, and thousands of impressions will see it. Offer people a free report to come to your site or to call you and learn more.

But when you're targeting your initial prospect list, where you could actually name the companies or individuals you want to do business with, seed them with something larger. For example, a website may not know who this prospect is, but they know they are on a website page. They could seed with a free workbook, white paper, or small product for visiting a page that creates interaction. That's what I mean by seed larger. If you're trying to sell to The Gap, maybe the first thing you want to do is send a sample of the fabric you use, complete with intricate stitching, to their top executives and buyers. You've got the list, right? So, seed larger, with a small gift, that shows your capability. Or, perhaps, make it more fun, send them the seed, but let them know that you'll create a free patch for them with their kids name, spouse's name, friend's name, or slogan, with your material as a fun way to see how well you can respond to their demands. Different, huh? Be different. Add value. Be personable. These things help you get their attention.

Then when you have their attention, gift larger, with product they can try and possibly even sell to their client-base. Put it in their store. Make it easy for them. And, when it sells (because you've already tested that it will sell, right?) then you can ask for the price you want, because you've built a relationship that fostered trust.

If I were to do it all over again, I'd follow the advice in this article like a Bible. If only I could go back, right? Well, I can't, but you can. You have the opportunity in front of you to launch your dream, and create success. Bootstrapping doesn't have to be ultra-stressful. It can be a lot of fun. And, you can make a lot of money, if you do it right. Go after your dream, but get your act together, then get the word out the right way. Don't forget to gift 'em. And watch your sales skyrocket, too.
__________________________________________________

Scott Andrews, CEO of ARRiiVE, heads up professional panels, offers keynote speaking, and leads professional services helping executives start a company, launch new products and services, improve sales and marketing, and empower teams through dynamic collaboration models and tools. Find out more at http://www.ARRiiVE.com.

Duo-function Retro MP3 AND Cassette Player

(photo credit: Chinavision)
This is from the site, Popgadget: "I haven’t seen the retro look blend better with any product in a long time than it does with the Cassette MP3 player. This gadget looks like a normal cassette tape on the outside but is actually an mp3 player. The camouflage design is not without functional advantages too – not only do you get the cool retro look with the cassette casing, but you can also use the player as a car cassette, or with any cassette player, or as a normal mp3 player.

Expect no frills with this gadget – no expensive LCD screen, no built-in memory (you will have to use your own SD cards in the card slot provided), and PC interface is via USB. Which obviously means it will also go very easy on your wallet (well, the upfront investment at least). Summary – if you are on the lookout for a cheap, no-frills player and are not too particular about the specs or the brand, this one is well worth trying." Cool, huh?

I might just have to buy one of these, myself. I've been looking at MP3 players, but I have this cassette deck in my truck that I don't want to get rid of, because I still like being able to listen to audio tapes sometimes for recordings of the band and some of the older programs I listen to. But, this solves two problems: being an MP3 and inexpensively solving the plugging to the car audio system, while being retro and cool. Like it? Let me know if you'd like to see more posts like this.

~Scott (http://www.ARRiiVE.com)
In addition, we're looking for people with up-and-coming cool products who want to plug them and get them more exposure. We're happy to do so as part of our business launch services. Contact info@ARRiiVE.com for more details.

10 Ways To Start A Company And Launch Your Big Idea

There are many ways to launch a company. However, most people who haven't yet launched their "big idea" often delay because of fears. Fears facing new entrepreneurs are often about the following:

• Fear of lack of knowledge about idea, industry or type of company
• Fear that money might run out
• Fear of failure and possible embarrassment
• Fear that the idea is a stupid idea
• Fear they aren't smart enough to launch the product or service successfully

This list may continue, but you get the point. What in the world are we so afraid of? Of all the fears, the worst is probably analysis paralysis, where an entrepreneur waits for a magic answer to help them get beyond all the other fears. The truth of it? There isn't a magic answer. Instead, are some tried-and-true ways to start a company, live your dream, and get that great idea launched that are typically rooted in practical steps that just might surprise you.

From my research, I've determined the ways most entrepreneurs become millionaires is to utilize these basic steps to success:

1. Vision.
2. Faith.
3. Action.
4. Persistence.
5. Simple Initial Design.
6. Control of Finances.
7. Good Marketing
8. Good Product Design.
9. A Team.
10. Passion.

I've gone into more detail on each of these at my article at AspireNow (http://www.aspirenow.com/leader_0707_10_keys_to_start_a_company_successfully_and_launch_your_product.htm).

Consider that most successful entrepreneurs create their success, not because they are a genius, but because they've done their homework, pounded the pavement, and stuck with it long enough to figure out how to make their dream a success.

Do you have a dream? A product you wish to launch? Don't sit still on it! Take action. That's key to success! I did not include PLAN on my list, although it could probably be added to it, too. If you don't have a plan, take a day to create one. You can afford one day. And, if you can't, hire it out. We've helped people write plans that later enabled them to raise the money required to start their company. I think that when ordinary people come up with a new idea, and get excited about it, just about anything is possible.

Are you considering starting a company? Are you seeking help with product launch? Please comment on your own personal story of getting your dream started and help other entrepreneurs who read this.

The Job That Won't Get Outsourced

I just finished reading an article on a popular website that was called "Jobs That Won't Get Outsourced." Now, the topic caught my eye, because my company ARRiiVE is focused on helping people create empowered environments (harder to do when you outsource). So, what are the industries that present these downsizing-proof jobs?

Examples given included CONSTRUCTION, EDUCATION, HEALTHCARE, REAL ESTATE, and MILITARY. All I could think was, Hmm. I think the author is WRONG!

That's right, wrong. No offense, but as many comment bloggers noted, each of these industries are being impacted as much as the notorious call centers, customer service, and programming shops in India, China, and Mexico. We're starting to see more of the legal profession, salespeople, architects, and other careers impacted by outsourcing, too.

Outsourcing will happen any time the head of an industry can see a way to lower costs. And, in a world that is now a "global" economy, who do you think will cost less: the job/cost of an American who lives 2.6 people per household with a $39,452.74 per capita? Or the job/cost of an Indian who lives 2.7 per ROOM with a $640.47 per capita? (source: NationMaster) Isn't it obvious to you what is going on in the world? Are way of life in America is threatening the very job we wish to keep secure!

NO JOB IS SAFE FROM OUTSOURCING. I'll say it again: NO JOB is safe from OUTSOURCING. Now, if you're a teacher, once you are tenured, your job is pretty safe. But, on the whole, outsourcing is hitting every industry imaginable.

Outsourcing irritations: why do people get upset about outsourcing?Well, if you've had your job outsourced to a foreign country and all your friends in your division let go and looking for work, you could probably share first-hand about the frustrations of outsourcing just from the loss of jobs, let alone impact upon hard-working American families, children, and spouses. Perhaps Outsourcing is a popular topic if you manufacture Prozac or Zanax, but otherwise it probably brings up feelings of anger or concern. After all, downsizing is never pretty.

Almost everyone who calls an outsourced customer support line knows that when you're expecting an English-speaking support agent to help you, but then line get frustrated trying to explain your problem you're already upset about with the hard-to-understand foreign accent only adding to confusion, it can be frustrating to deal with outsourced call centers. One of my hosting companies provides support from the Philippines. I had a dickens of a time trying to get the site live, until I complained and threatened to pull my account, then the hosting firm escalated my email to the American headquarters and pronto - problem solved in one email.

Amazing how support may not always be the same level with outsourced centers. So, that is another one of the problems. I could go on and complain for quite a while, but there are probably many people who would defend call center outsourcing by saying they've experienced lesser hold time and more satisfaction in some cases, too, to be fair.

My own company, ARRiiVE Business Solutions, offers an outsourced "Acting VP of Sales" program, not to replace your VP of Sales but to give you insights into your selling process that otherwise you could not get from a typical salesperson or manager. I don't know how I can offer that same service only serving as a consultant. So, there are cases where it can be truly helpful to outsource. And, when you're multiplying costs of $20 per event x 80,000 events, you start to get into pretty serious cost savings that make it hard to resisst outsourcing.

Now, let's take construction, for example. Aren't we seeing changes in the labor force in that industry? I've seen changes in this industry in California. Why couldn't someone come here from China or India build a building better than an American labor force? After all, was it not China who had the roadroad chain gangs that laid much of the rail lines across America over 100 years ago? I'd say construction is not a safe industry from outsourcing.

We're utilizing more and more online education as a way of learning. In fact, schools are going to more and more online methods to reduce their costs of teaching. Classrooms are getting bigger, not smaller. And, there's a lack of qualified teachers in many areas, but in others, teaching jobs are hard to come by. Consider that school districts have largely done away with such positions as Vocational Education (my father can talk to you about this - he taught machine shop) and many music programs (sniff - I grew up playing my sax in the schools bands).

Today, most of the machine shops are located, guess where: CHINA! That's right. One of my best friends runs a machine shop. Fortunately for him, he has the talent to do the rare jobs that nobody else can do. So, his shop was spared the closings that occurred during the mass outsourcing and shop closures of the early 21st century. But all around him the machine shops shut down and their business, just like Nixon, went to China. In 2000, the Chinese bought up so much of the metal supplied that it became very expensive in America to compete. Welcome to the global economy. So, vocational education has been replaced with courses on computers, graphic design, and programming. But, have those jobs been outsourced? You betcha!

Education will continue to be impacted by outsourcing in the coming years.

Healthcare. I read one post that said a surgical procedure in America costs $72,000. That same procedure costs $12,000 in India. According to Travelocity, I can fly roundtip leaving San Francisco on August 21st and returning August 28th from New Delhi, India right now for: $1,550.00. Add that to the $12,000, and I think I might consider that surgery in India. Insurance or no insurance, I might save a lot of money. So, yes, healthcare is going to be affected by outsourcing, too. I already know travelling nurses are becoming a bigger profession to fill rotating needs at hospitals. More changes in healthcare are surely coming as this overpriced industry is poised, in fact, for a crash, if you ask me.

Next, Real Estate. Wait, did I just say healthcare was poised for a crash? Well, what about Real Estate? With the boom that has gone on the past 5 years, with rates well under 10%, people have boosted real estate into a bubble almost as dangerously speculative as technology stocks in the year 2000. The general rule of thumb on an investment, for fair market value, is 8.5%. Once the rates go above 8.5%, we'll see the market decline. Do you think that's going to happen soon? If and when it does, do you think we might see more real estate positions (brokers, etc.) outsourced? Yeah, I think so, too.

Last, the military. Well, I don't know about you, but if we're not in a war your military job isn't very safe from outsourcing. The military can hire many things to replace people. Technology replaces people. But, more than that, I see robots becoming more and more of a factor in military settings. (Why get human beings killed when we can send a robot to do their dirty work?) Okay, so I'm jumping into the future and pondering a world of Terminators with that comment. But, don't you think ANY industry is vulnerable to outsourcing?

That's my point.

Therefore, the only JOB that isn't vulnerable to outsourcing is that of the ENTREPRENEUR.

That's right, the person who starts a business, not self-employed, as a plumber, hair salon, or some other self-employed service job may still be vulnerable, but the entrepreneur who is creating cash-flow through some mechanism is probably the only person safe from outsourcing.

That's why I became an entrepeneur. Well, not exactly. I'm just driven to do things and adverse to risk. But, being an entrepreneur is the only way I can see clear of the problem with outsourcing. It's a crazy world, but there's always been a career that has been impacted by lower prices, change in demand, technological advances, and influence of trade with other countries. Ask a horseshoer, blacksmith, farmer, and machinist how they like their job today. You'll be looking for a while before you find one of these people, yet, not so long ago those were some of the top JOB descriptions in the census. (Source: my mother's geneology work!)

What do you have to say about outsourcing? Do you think it is for real? Think you've got an idea how to protect yourself and your career from outsourcing? Let's discuss!