Laid off? Can't find employment? Have you always dreamed of the independence of having your own business? Do you feel that this is your chance to finally realize your dream? You are not alone. This past recession, like the one 15 years ago, has driven huge numbers of people to start their own enterprises. The Kaufman Institute says that in 2010 over 565,000 Americans a month began a business.
If you're thinking you have what it takes to be an entrepreneur, you should take the time to read not only this blog, but also the lead article in the August 14, 2011 Sunday Styles section of the The New York Times: "Maybe It's Time For Plan C." The article illustrates how very hard the transition can be from a corporate office job to running everything yourself. In fact, starting a business ("Plan B") has become so hard for some people that they are moving to "Plan C" -- going back to work for someone else.
From 1994 to 1998, I worked as a mentor and teacher to people who wanted to start businesses. Out of hundreds of people my colleague and I counseled and taught, only a fraction decided to actually start a business. We found in many instances that the people we met with or taught were shocked to learn all that they had to do to have success as a business owner. The ex-bankers who were used to the support system of an office just couldn't get used to the idea that they would have absolutely no support and that they would have to invest some start-up capital before they could even earn a dime. Others were genuinely surprised at how really hard it was to get a loan from a bank or equity investments from professional investors.
The people who did start businesses, and the successful entrepreneurs I worked with as a consultant and business planner between 1999 and today were the ones willing to do as much as they could themselves. They used their personal savings, buyout bonuses, credit cards, home equity (when people had home equity), loans and investments from friends and family to get their seed capital. They did the homework of researching the need in the marketplace, finding the lowest cost space, best raw materials, best people to join their team, and the best outside resources to do the things they couldn't do themselves.
They made big picture, as well as detailed plans. They had the goal, the strategy and the tactics thought out. They had a business model that made sense. And they executed their plans. The smartest ones also had good lawyers to help them with the legal ins and outs.
They knew that starting and running a business is more than a full-time job. It truly is all consuming. So if you're thinking of starting a business -- or sticking with the one you have -- you have to ask yourself if you are willing to do what it takes to be successful. Do you believe enough in your goal and yourself?
If you do, then go for it! (But seek help when you need it. The help is out there from free sources and paid professionals.)
Showing posts with label starting a business. Show all posts
Showing posts with label starting a business. Show all posts
Monday, August 15, 2011
Monday, January 3, 2011
Resolved to Start a Business in 2011?
Did you make a new year's resolution to finally start your own business? As you begin, take time to answer some key questions. You can do this in your head, but I suggest writing down your answers in a notebook (yes, with pen and paper), or writing them on a screen and saving them in a special file. You can return to your thoughts and modify them as often as you like. But once committed to paper or screen, your ideas will become more concrete and will help you move toward your goal. In fact, that is the first question (see below).
America is a great country partly because it is made up of so many independent businesses. Just drive down any street in any town or city and see all the shops. Go online on Ebay or Etsy and see all the small businesses selling a variety of items. Look at the successful big businesses. They all started with a person with an idea for a better way to fill a need. Ford, HP, Apple, Facebook, Google, IBM, AT&T...
1. What is your goal? Freedom? Independence? Making money? Being Creative? Making the World Better?
2. What is your big idea?
3. What need do you see in the marketplace that your idea will fill?
4. Who is your target audience? Who will buy what you have to offer?
5. What resources will you need to tap to bring your idea to fruition?
6. What will you need to spend? (How cheaply can you execute?)
7. Will you do this on your own or with a team? Have you assembled the team?
8. How will you market your idea?
9. How will you make and deliver your product or service?
10. What will you live on while you do this? How will you finance your business?
Feel free to contact me if you'd like help in working through these questions, or if you need a guide for a plan. That's my business -- helping entrepreneurs turn ideas into reality and crafting plans that answer the questions investors ask most often. www.upstartbusinessplanning.com - upstartwyn@gmail.com - Twitter: @upstartwyn
America is a great country partly because it is made up of so many independent businesses. Just drive down any street in any town or city and see all the shops. Go online on Ebay or Etsy and see all the small businesses selling a variety of items. Look at the successful big businesses. They all started with a person with an idea for a better way to fill a need. Ford, HP, Apple, Facebook, Google, IBM, AT&T...
1. What is your goal? Freedom? Independence? Making money? Being Creative? Making the World Better?
2. What is your big idea?
3. What need do you see in the marketplace that your idea will fill?
4. Who is your target audience? Who will buy what you have to offer?
5. What resources will you need to tap to bring your idea to fruition?
6. What will you need to spend? (How cheaply can you execute?)
7. Will you do this on your own or with a team? Have you assembled the team?
8. How will you market your idea?
9. How will you make and deliver your product or service?
10. What will you live on while you do this? How will you finance your business?
Feel free to contact me if you'd like help in working through these questions, or if you need a guide for a plan. That's my business -- helping entrepreneurs turn ideas into reality and crafting plans that answer the questions investors ask most often. www.upstartbusinessplanning.com - upstartwyn@gmail.com - Twitter: @upstartwyn
Friday, July 9, 2010
Inventions, Entrepreneurs and Success
Last night I watched "How I Made My Millions" on CNBC. The show gave excellent capsulized stories of how people had really great, simple ideas which they turned into businesses. It's clear that it's not easy to execute ideas, but the people profiled in the show had the tenacity, passion and focus to do it. And they made millions.
I know that there are thousands of entrepreneur wannabes and inventive tinkerers out there with the big idea and the next great business. Some of you will fail because your ideas really aren't that great. Some will fail because you don't have a plan or funding. Some will fail because you just don't have the energy to take the idea to fruition. You'll let roadblocks get in the way.
But the entrepreneurs and inventors in this TV show didn't let any of that stop them. Their creations and ideas filled needs and resonated with the public. Take a look. You can watch it on HULU:
http://www.hulu.com/watch/46543/cnbc-originals-how-i-made-my-millions
If you need a business plan or some mentoring along the way, contact me at: upstartwyn@gmail.com. Visit my website: www.upstartbusinessplanning.com.
I know that there are thousands of entrepreneur wannabes and inventive tinkerers out there with the big idea and the next great business. Some of you will fail because your ideas really aren't that great. Some will fail because you don't have a plan or funding. Some will fail because you just don't have the energy to take the idea to fruition. You'll let roadblocks get in the way.
But the entrepreneurs and inventors in this TV show didn't let any of that stop them. Their creations and ideas filled needs and resonated with the public. Take a look. You can watch it on HULU:
http://www.hulu.com/watch/46543/cnbc-originals-how-i-made-my-millions
If you need a business plan or some mentoring along the way, contact me at: upstartwyn@gmail.com. Visit my website: www.upstartbusinessplanning.com.
Monday, February 15, 2010
Starting a Business to Help People
When Paul Hogan saw how his mother's care for her mother (his grandmother) yielded better health and a better, longer life for his grandmother, it provided him with inspiration to start his own business providing such care for others. He formed Home Instead Senior Care. The story of how he did this and turned the company into an organization with franchises all over the world was in the New York Times on Sunday, February 14, 2010.
Here is a link. It is a story worth reading because it shows how personal experience of seeing a real need for real people can be translated into a solid business that fills that need. This is the essence of what it takes to be a successful entrepreneur.
http://www.nytimes.com/2010/02/14/jobs/14boss.html
Here is a link. It is a story worth reading because it shows how personal experience of seeing a real need for real people can be translated into a solid business that fills that need. This is the essence of what it takes to be a successful entrepreneur.
http://www.nytimes.com/2010/02/14/jobs/14boss.html
Monday, June 1, 2009
Start-up Tip #1 - What is Your Value Proposition?
Thinking of starting a business? As part of your planning process, you must come to grips with what your value proposition is. In advertising we used to call it a "unique selling proposition". But really all you're doing is figuring out what the true value of your business, product or service is.
How are you filling a real need in a unique way?
As you prepare to answer this question, think about who will use your product and why.
If you can answer this question in a 45 words or less, you are on your way to success.
Contact me, if you want more tips on crafting your value proposition.
How are you filling a real need in a unique way?
As you prepare to answer this question, think about who will use your product and why.
If you can answer this question in a 45 words or less, you are on your way to success.
Contact me, if you want more tips on crafting your value proposition.
Monday, May 11, 2009
Recessions and Invention
Great article on invention and recessions....
Deb Riechmann
Associated Press
WASHINGTON – Got a bright business idea? Take a number.
Americans haven't stopped dreaming up newfangled gizmos or sketching engineering marvels on the back of cocktail napkins. But tight credit and business cutbacks have slowed the pace of getting the latest U.S. innovations to market.
Venture capital investments have plummeted. Lenders aren't lining up to fund business startups. New patent applications are down at the U.S. Patent and Trademark Office, creating a budget crisis at the agency, which depends on money from fees to keep operating.
If patent fee revenue continues at its current rate, the office will end the budget year collecting roughly $100 million below projections.
That puts the patent office in a catch-22. After several years of hiring more than 1,200 patent examiners a year, the office has suspended hiring, trimmed overtime and made other cutbacks. This comes as the office and its 6,000 examiners are struggling to whittle down a backlog of 770,000 new, unexamined applications.
"Innovation is the way America generally gets out of downturns," said Robert Budens, president of the Patent Office Professional Association. The group represents 4,000 examiners and other patent professionals, many of whom worry the recession will mean layoffs before the end of the year.
"At the Patent Office, we're one of the key drivers of stimulating innovation and for us to get to the point where we might have to furlough or have a reduction in force would just be horrible," he said.
So far, companies that spend the most on innovation have resisted the temptation to raid their research and development budgets. They're opting to ride out the recession with an eye to future sales, according to Booz & Co., which surveys the world's 1,000 largest publicly traded, corporate research and development spenders.
Although those budgets often are set months in advance, recent data that Booz collected on about 400 of the companies shows that research spending rose 2 percent from the first quarter of 2008 to the fourth quarter.
"The recession has caused us to be very conservative in a lot of areas, but research and development is not one of them," said James Norrod, president and chief executive officer of Segway Inc., the Bedford, N.H.-based maker of two-wheeled, stand-up vehicles. "We think that R&D is really the life blood of the company. We haven't cut back. We have actually added people in that area."
Matthew Sampson, an intellectual property lawyer at McDonnell Boehnen Hulbert & Berghoff in Chicago, says business hasn't slowed yet, but that patent work usually lags during economic downturns.
"I'm actually a little bit nervous about next year," Sampson said.
Businesses, however, have begun cherry-picking the ideas they want to shepherd through the expensive patent process. Seed money to nurture innovation also is drying up.
Venture capitalists invested just $3 billion in the first quarter of the year – down 47 percent from the fourth quarter of 2008 and the lowest level since 1997, according to the National Venture Capital Association. Bank loans and "angel capital" – money that friends and families and wealthy individuals cough up to support innovation they personally believe in – also are contracting.
"If banks stop lending in general, lending for small, innovative technologies dries up completely," said Jere Glover, a Washington business attorney who directs the National Small Business Association'
Deb Riechmann
Associated Press
WASHINGTON – Got a bright business idea? Take a number.
Americans haven't stopped dreaming up newfangled gizmos or sketching engineering marvels on the back of cocktail napkins. But tight credit and business cutbacks have slowed the pace of getting the latest U.S. innovations to market.
Venture capital investments have plummeted. Lenders aren't lining up to fund business startups. New patent applications are down at the U.S. Patent and Trademark Office, creating a budget crisis at the agency, which depends on money from fees to keep operating.
If patent fee revenue continues at its current rate, the office will end the budget year collecting roughly $100 million below projections.
That puts the patent office in a catch-22. After several years of hiring more than 1,200 patent examiners a year, the office has suspended hiring, trimmed overtime and made other cutbacks. This comes as the office and its 6,000 examiners are struggling to whittle down a backlog of 770,000 new, unexamined applications.
"Innovation is the way America generally gets out of downturns," said Robert Budens, president of the Patent Office Professional Association. The group represents 4,000 examiners and other patent professionals, many of whom worry the recession will mean layoffs before the end of the year.
"At the Patent Office, we're one of the key drivers of stimulating innovation and for us to get to the point where we might have to furlough or have a reduction in force would just be horrible," he said.
So far, companies that spend the most on innovation have resisted the temptation to raid their research and development budgets. They're opting to ride out the recession with an eye to future sales, according to Booz & Co., which surveys the world's 1,000 largest publicly traded, corporate research and development spenders.
Although those budgets often are set months in advance, recent data that Booz collected on about 400 of the companies shows that research spending rose 2 percent from the first quarter of 2008 to the fourth quarter.
"The recession has caused us to be very conservative in a lot of areas, but research and development is not one of them," said James Norrod, president and chief executive officer of Segway Inc., the Bedford, N.H.-based maker of two-wheeled, stand-up vehicles. "We think that R&D is really the life blood of the company. We haven't cut back. We have actually added people in that area."
Matthew Sampson, an intellectual property lawyer at McDonnell Boehnen Hulbert & Berghoff in Chicago, says business hasn't slowed yet, but that patent work usually lags during economic downturns.
"I'm actually a little bit nervous about next year," Sampson said.
Businesses, however, have begun cherry-picking the ideas they want to shepherd through the expensive patent process. Seed money to nurture innovation also is drying up.
Venture capitalists invested just $3 billion in the first quarter of the year – down 47 percent from the fourth quarter of 2008 and the lowest level since 1997, according to the National Venture Capital Association. Bank loans and "angel capital" – money that friends and families and wealthy individuals cough up to support innovation they personally believe in – also are contracting.
"If banks stop lending in general, lending for small, innovative technologies dries up completely," said Jere Glover, a Washington business attorney who directs the National Small Business Association'
Basement inventors are really feeling the pinch.
"A lot of independent inventors get their start by floating their expenses on charge cards, and of course charge card credit lines have been greatly restricted," said Ronald Riley, the man behind numerous patents including those related to the automated industrial monorail and the treadmill.
"For independent inventors, at least until they achieve some commercial success, the money for patenting comes out of discretionary income. It doesn't mean they're not inventing, it just means they're just not going to file until things improves," said Riley, founder of the Professional Inventors Alliance.
It costs roughly $10,000 to obtain and hold a patent, although fees vary depending on the type of application.
A $1,090 fee is paid when an application is filed and $1,510 more is due when a patent is granted. Maintenance fees of $980, $2,480 and $4,110, which maintain a patent holder's legal protection for the life ½ ½ years and 11 ½ years, 7 of a patent, are due at 3 years, respectively.
Some penny-pinching patent holders have stopped paying their maintenance fees, choosing to let their rights to a patent expire early on innovations not critical to profits down the road. In addition, fewer patent seekers are paying fees to obtain more extra time to respond to questions from the patent office.
Some companies are in such dire straits that innovation is just not an option for them, but more and more companies are recognizing how critical innovation is, said Scott Anthony, president of Innosight, a management and innovation consulting company in Watertown, Mass., and author of several books on the subject.
"Some people say `I cannot afford to innovate.' What they are really doing is sowing the seeds of their own destruction,
Anthony notes that many innovative companies were started during economic downturns.
Hewlett-Packard formed in a California garage at the end of the Great Depression. Digital Equipment was born during a recession in the 1950s. During an economic downturn in the 1970s, 23-year-old Carol Wior started a garment business with $77 and three sewing machines in her parents' garage.
Thirty-seven years later, the maker of the patented "Slimsuit" and her company's 200 employees in Bell Gardens, Calif., are working through the recession on a new undergarment and swimsuit concept. "I think you'd be a fool if you didn't tighten up a little bit," Wior said. "We're being more careful, but I'm not tightening up when it really comes to marketing and product development.
Sidebar:
Inventors Thomas Edison, left, and Charles Steinmetz work in Steinmetz's laboratory during the Great Depression. "Innovation is the way America generally gets out of downturns," says Robert Budens, president of the Patent Office Professional Association.
(Full-size photo)
(All photos)
Patent costs
It costs roughly $10,000 to obtain and hold a patent, although fees vary depending on the type of application and are adjusted downward for individual inventors, small business and nonprofits.
COMMENTS:
http://www.spokesma
Saturday, November 15, 2008
Starting a Business In Bad Times
An inventor sent me this article. It shows how to take advantage of the downturn and start a successful business. Read on...
By Joan Lefkowitz, Accessory Brainstorms
"Few can believe that suffering, especially by others, is in vain.Anything that is disagreeable must surely have beneficial economiceffects." - John Kenneth Galbraith
You might think that during times of economic recession consumers arein no mood to experiment with, or purchase inventive products.Counter-intuitively, starting a business or launching an inventionduring a recession can be one of the smartest moves to make- dependingof course, on if you take certain factors into account. Looking atpast recessions and consumer psychology can give us ideas on the typesof inventions that can succeed during an economic downturn. Let's walkthrough some of these themes that appear on the psychologicallandscape during a recession.
Nesting
Let's start with how people are feeling during these uncertain times.Recessions can generate fear and uncertainty in the minds of people.All around, people are watching others suffer economic hardship,losing their jobs and homes. A result of this is a mindful gratitudethat they are not that person they see struggling on the nightly newsor in their neighborhood. An appreciation of what one already has, asopposed to what one can attain becomes paramount.
That's why many inventions that do well during hard times have to dowith comfort, organization and do-it-yourself products. Nesting relates to all things related to the home; personal possessions,making oneself more comfortable and secure, improving homeenvironment, and making one's life more functional. It's also a knownfact that during recessions, many people have less disposable incometo spend on going out, so home entertainment and gaming items arealways popular. An example of an inventive gaming product introducedduring this recession is The Sega "Project Beauty" virtual realityvideo game (designed for Nintendo DS), which helps women try outdifferent make-up looks via their TV screen.
The Magic Fur Ball helpstake care of your clothing and laundry by removing people and pet hairfrom fabrics in the dryer. Lumbarwear is a soft undergarment thatsupports core and back strength, while providing comfort to thewearer. Tag Tamers is another product that enables comfort byrelieving the itchiness of garment labels and eliminating the need tocut them out of clothing. By the way, replenishment products such asthis are great for repeat sales. The stylish Shoe Seen is atransparent shoe pouch that helps people organize and store theirfootwear. All of these are products that satisfy that urge for nesting.
Competition- "Looking Good is Feeling Good"
People are looking to improve themselves to compete in a tougher jobmarket. They become acutely more aware of their own presentation andappearance, viewing the world as a more competitive, rather thanfriendly place. A recent `Do-it-Yourself' beauty invention that's ahit in the market is the ZENO PRO Acne Clearing Device (uses heat toclear blemishes), which despite retailing at over $100 saves moneythat would otherwise be spent at the dermatologist. Another example ofa grooming tool that's time and money saving (no trips to the salon!)and makes the consumer look good is R.E.M. Spring, a battery-freefacial hair remover. Slimpressions is a shapewear product designed toslim a woman's arms, back and midriff. These products help people lookgreat, and also are created to deal with ongoing beauty issues.
Survivor
Where once people saw life as a progression of economic milestones,lowering expectations during a recession to "just getting by" becomesroutine. Products that emphasize survival in the economic storm shouldbe central in the minds of inventors. For example, Steam Buddy ironthat replaces dry-cleaner wrinkle-removal (plus, you don't have todrag out the ironing board) costs about $20, but saves the averagecustomer $100's in dry cleaning bills over the course of a year.Re-usable items that replace disposables, such as Zorbeez absorbentcloths that are used in place of paper towels, will also appeal tomoney-strapped consumers.Back in the 1960's, there used to be special areas in departmentstores that sold "Notions" or problem-solving personal products. Todaythese types of products that emphasize personal preparation arethriving on the internet, and in mail order catalogues.
Examples include Hollywood Fashion Tapes, double sided clear tape for "fashionemergencies", and Bosom Button, a discreet jewel-like pin which allowspeople to wear clothes with embarrassingly low necklines, or turnscarves into skirts.Escapism…and HopeRecessions can cause collective anxiety and panic within the public.
Thoughts of losing ones job, the home that the job pays for, and allits contents, are scary enough. It's common knowledge that during thegreat depression, the movie cinemas served as a great escape for themasses. Often those movies featured the lives of the rich and famous,in the most expensive and lavish of clothes and settings, a starkcontrast to the movie-goers reality. Bars and liquor stores alsoexperience an uptick in clientele. What is entertainment but an escapefrom the mundane.
Escapism is a search for hope and magic. Hope iswhat people need and crave most during tough times. People are lookingfor things to magically improve their lives.
Examples of "magical" and entertaining products include the "Roomba" robotic vacuum cleaner and"Change Rocks", the inter-changeable, multi-stone ring. Another suchitem is the Shower Bow Shower Curtain Expander, which creates a moreluxurious bathroom experience, by creating more space in the shower.People need little extravagances as opposed to big ones.Tips
For Inventions
Let's look through some of the hallmarks that make for good retail inventions:
It is functional and simple to use. It makes life easier, while makingthe user feel better, smarter, more efficient or more attractive. It'sfun to use. It retails for $40 or less, yet has an element of magic.It saves both time and money, and is reliable, durable, safe andperforms well. It is convenient to store.
During a recession, otherattributes of successful inventions would include items that helpconsumers repair/improve or re-use what they already own.The item should be visually and tactilely appealing, have a nice shapeand be made available in an attractive color, with smooth edges and aneven finish. Packaging should be compact and the product name catchyand memorable; logo and graphics are clear and easy to read. Photos ofproduct results should appear on the front of the package. Simple'how-tos' should appear on the back of the package.
What Wholesale Buyers are Looking ForMost inventions are currently sold to wholesale buyers and/or solddirectly to the public (through internet and TV commercials). Inselling to wholesale buyers, it is critical to keep in mind theirperspective. Wholesale buyers are on the lookout for something that will cut through the jungle of "stuff" already out there, that will sell itself, and is so novel it needs little to no advertising. In cash poor times, buyers are looking to tighten inventories bybuying and stocking less, and paying less for products in order toincrease profit margins, while offering value to customers. Some ofthe ways to appeal to a buyer and help them market your product are: Source for the best pricing on materials and labor. Keep size of theproduct to a minimum (which takes up less space on the store shelf).Provide alluring signage, displays and photos if the retailer permits.Offer live demonstrations and inventor "guest" appearances. Offer"how-to" videos to stores that will run them on the selling floor.Offer bonus booklets showing extra style or use options as a method ofsampling or giveaways. Create special price breaks to buyers if theywill "outpost" your product in multiple locations in a store. Provide periodic surprising new add-on products to keep the buyer interested, grow your solitary item into a full product line; and help theretailer satisfy consumers who are always looking for "what's next"(regardless of the economy.)
Why This is a Good Time for You, The Inventor
You may be unemployed, or in need of extra money. You may be scared totake that next step. You may have been waiting for the "perfect time"to launch your invention. But now is the time to put your idea intoaction. Now is the time to push yourself to compete, and complete yourvision. Take advantage of recessionary times. If your invention issuccessful during a recession, it can really thrive during good times. As Frank Sinatra's most famous song said, "If you can make it here,you can make it anywhere", we say "If you can make it now- go for it!"
Joan Lefkowitz (who knows how to spot a retail trend when she seesone, having represented inventors through her third recession), is anoriginal marketer of TopsyTail tm, and is president of ACCESSORYBRAINSTORMS, NYC, a licensing agency, sales representation andconsultancy for Fashion and Beauty Accessory and Lifestyle Inventions.www.accessorybrainstorms.com
By Joan Lefkowitz, Accessory Brainstorms
"Few can believe that suffering, especially by others, is in vain.Anything that is disagreeable must surely have beneficial economiceffects." - John Kenneth Galbraith
You might think that during times of economic recession consumers arein no mood to experiment with, or purchase inventive products.Counter-intuitively, starting a business or launching an inventionduring a recession can be one of the smartest moves to make- dependingof course, on if you take certain factors into account. Looking atpast recessions and consumer psychology can give us ideas on the typesof inventions that can succeed during an economic downturn. Let's walkthrough some of these themes that appear on the psychologicallandscape during a recession.
Nesting
Let's start with how people are feeling during these uncertain times.Recessions can generate fear and uncertainty in the minds of people.All around, people are watching others suffer economic hardship,losing their jobs and homes. A result of this is a mindful gratitudethat they are not that person they see struggling on the nightly newsor in their neighborhood. An appreciation of what one already has, asopposed to what one can attain becomes paramount.
That's why many inventions that do well during hard times have to dowith comfort, organization and do-it-yourself products. Nesting relates to all things related to the home; personal possessions,making oneself more comfortable and secure, improving homeenvironment, and making one's life more functional. It's also a knownfact that during recessions, many people have less disposable incometo spend on going out, so home entertainment and gaming items arealways popular. An example of an inventive gaming product introducedduring this recession is The Sega "Project Beauty" virtual realityvideo game (designed for Nintendo DS), which helps women try outdifferent make-up looks via their TV screen.
The Magic Fur Ball helpstake care of your clothing and laundry by removing people and pet hairfrom fabrics in the dryer. Lumbarwear is a soft undergarment thatsupports core and back strength, while providing comfort to thewearer. Tag Tamers is another product that enables comfort byrelieving the itchiness of garment labels and eliminating the need tocut them out of clothing. By the way, replenishment products such asthis are great for repeat sales. The stylish Shoe Seen is atransparent shoe pouch that helps people organize and store theirfootwear. All of these are products that satisfy that urge for nesting.
Competition- "Looking Good is Feeling Good"
People are looking to improve themselves to compete in a tougher jobmarket. They become acutely more aware of their own presentation andappearance, viewing the world as a more competitive, rather thanfriendly place. A recent `Do-it-Yourself' beauty invention that's ahit in the market is the ZENO PRO Acne Clearing Device (uses heat toclear blemishes), which despite retailing at over $100 saves moneythat would otherwise be spent at the dermatologist. Another example ofa grooming tool that's time and money saving (no trips to the salon!)and makes the consumer look good is R.E.M. Spring, a battery-freefacial hair remover. Slimpressions is a shapewear product designed toslim a woman's arms, back and midriff. These products help people lookgreat, and also are created to deal with ongoing beauty issues.
Survivor
Where once people saw life as a progression of economic milestones,lowering expectations during a recession to "just getting by" becomesroutine. Products that emphasize survival in the economic storm shouldbe central in the minds of inventors. For example, Steam Buddy ironthat replaces dry-cleaner wrinkle-removal (plus, you don't have todrag out the ironing board) costs about $20, but saves the averagecustomer $100's in dry cleaning bills over the course of a year.Re-usable items that replace disposables, such as Zorbeez absorbentcloths that are used in place of paper towels, will also appeal tomoney-strapped consumers.Back in the 1960's, there used to be special areas in departmentstores that sold "Notions" or problem-solving personal products. Todaythese types of products that emphasize personal preparation arethriving on the internet, and in mail order catalogues.
Examples include Hollywood Fashion Tapes, double sided clear tape for "fashionemergencies", and Bosom Button, a discreet jewel-like pin which allowspeople to wear clothes with embarrassingly low necklines, or turnscarves into skirts.Escapism…and HopeRecessions can cause collective anxiety and panic within the public.
Thoughts of losing ones job, the home that the job pays for, and allits contents, are scary enough. It's common knowledge that during thegreat depression, the movie cinemas served as a great escape for themasses. Often those movies featured the lives of the rich and famous,in the most expensive and lavish of clothes and settings, a starkcontrast to the movie-goers reality. Bars and liquor stores alsoexperience an uptick in clientele. What is entertainment but an escapefrom the mundane.
Escapism is a search for hope and magic. Hope iswhat people need and crave most during tough times. People are lookingfor things to magically improve their lives.
Examples of "magical" and entertaining products include the "Roomba" robotic vacuum cleaner and"Change Rocks", the inter-changeable, multi-stone ring. Another suchitem is the Shower Bow Shower Curtain Expander, which creates a moreluxurious bathroom experience, by creating more space in the shower.People need little extravagances as opposed to big ones.Tips
For Inventions
Let's look through some of the hallmarks that make for good retail inventions:
It is functional and simple to use. It makes life easier, while makingthe user feel better, smarter, more efficient or more attractive. It'sfun to use. It retails for $40 or less, yet has an element of magic.It saves both time and money, and is reliable, durable, safe andperforms well. It is convenient to store.
During a recession, otherattributes of successful inventions would include items that helpconsumers repair/improve or re-use what they already own.The item should be visually and tactilely appealing, have a nice shapeand be made available in an attractive color, with smooth edges and aneven finish. Packaging should be compact and the product name catchyand memorable; logo and graphics are clear and easy to read. Photos ofproduct results should appear on the front of the package. Simple'how-tos' should appear on the back of the package.
What Wholesale Buyers are Looking ForMost inventions are currently sold to wholesale buyers and/or solddirectly to the public (through internet and TV commercials). Inselling to wholesale buyers, it is critical to keep in mind theirperspective. Wholesale buyers are on the lookout for something that will cut through the jungle of "stuff" already out there, that will sell itself, and is so novel it needs little to no advertising. In cash poor times, buyers are looking to tighten inventories bybuying and stocking less, and paying less for products in order toincrease profit margins, while offering value to customers. Some ofthe ways to appeal to a buyer and help them market your product are: Source for the best pricing on materials and labor. Keep size of theproduct to a minimum (which takes up less space on the store shelf).Provide alluring signage, displays and photos if the retailer permits.Offer live demonstrations and inventor "guest" appearances. Offer"how-to" videos to stores that will run them on the selling floor.Offer bonus booklets showing extra style or use options as a method ofsampling or giveaways. Create special price breaks to buyers if theywill "outpost" your product in multiple locations in a store. Provide periodic surprising new add-on products to keep the buyer interested, grow your solitary item into a full product line; and help theretailer satisfy consumers who are always looking for "what's next"(regardless of the economy.)
Why This is a Good Time for You, The Inventor
You may be unemployed, or in need of extra money. You may be scared totake that next step. You may have been waiting for the "perfect time"to launch your invention. But now is the time to put your idea intoaction. Now is the time to push yourself to compete, and complete yourvision. Take advantage of recessionary times. If your invention issuccessful during a recession, it can really thrive during good times. As Frank Sinatra's most famous song said, "If you can make it here,you can make it anywhere", we say "If you can make it now- go for it!"
Joan Lefkowitz (who knows how to spot a retail trend when she seesone, having represented inventors through her third recession), is anoriginal marketer of TopsyTail tm, and is president of ACCESSORYBRAINSTORMS, NYC, a licensing agency, sales representation andconsultancy for Fashion and Beauty Accessory and Lifestyle Inventions.www.accessorybrainstorms.com
Wednesday, August 27, 2008
10 Tips for Starting a Business - Tip #10 - Get Going
You've done your research. You've developed a great plan. You've assembled a super team. You have an exit strategy.
Now, you have to launch. Execute your plan. Take action.
The first action you need to take, if you haven't already, is to be aware of any legal or tax restrictions or implications. It's best if you contact your attorney and accountant for advice. You can also read up on local, state and federal requirements.
Sometimes you don't need money to start. Other times, you do, but you can be creative in finding money. If you have savings or friends and family who are willing to bet on you and your team, you can get going. Banks, angels and VCs usually want to see that you have started and have a revenue stream or amazing intellectual property protected by patents before they'll jump in.
As you take action, you'll probably deviate from your plan. Things will happen. You have to be resilient and open to the possibilities while having enough focus to not get sidetracked. For example, Teroforma was originally going to sell its tableware via its unique website directly to consumers. But so many retailers were interested in their wares, they are now more of a B2B model.
Now, you have to launch. Execute your plan. Take action.
The first action you need to take, if you haven't already, is to be aware of any legal or tax restrictions or implications. It's best if you contact your attorney and accountant for advice. You can also read up on local, state and federal requirements.
Sometimes you don't need money to start. Other times, you do, but you can be creative in finding money. If you have savings or friends and family who are willing to bet on you and your team, you can get going. Banks, angels and VCs usually want to see that you have started and have a revenue stream or amazing intellectual property protected by patents before they'll jump in.
As you take action, you'll probably deviate from your plan. Things will happen. You have to be resilient and open to the possibilities while having enough focus to not get sidetracked. For example, Teroforma was originally going to sell its tableware via its unique website directly to consumers. But so many retailers were interested in their wares, they are now more of a B2B model.
Monday, August 25, 2008
10 Tips for Starting a Business - Tip # 8 - Make Money
It may seem like an obvious notion, but businesses should make money. If you are going to invest your own money, borrow money or ask other people to invest in your business, then you really need to know how you will pay back yourself, your creditors and your investors.
In fact, before you can raise money, you need to be able to explain exactly how you'll make money.
Back in the days of the dot-com boom, it seemed that entrepreneurs only had to explain how they would generate revenue -- or sales. The idea of actually making money -- i.e., a profit was largely ignored. That's why we had the dot-com meltdown and so many businesses went out of business.
But nowadays, you need to know how you'll generate positive cash flow and profit. That takes a financial plan, or more simply, a budget. You need to answer these questions:
How much do you think you'll sell each month?
What will it cost to create what you sell (cost of goods sold)?
What will it cost to sell what you sell (selling and marketing)?
What will your overhead cost (all your fixed costs)?
What's left after you subtract your costs from your sales (Your operating income)?
All that goes into your income statement. When you actually make money, you can substract depreciation, income taxes, amortization and interest expenses to get net income.
To understand your cash flow, you'll have to look at capital expenditures and the cost of producing your inventory, in addition to other cash outflows and inflows. These numbers are key in understanding what it will take to open and operate your business. Cash is king. If you have the cash to pay the bills, you'll be O.K..
Your assets (your cash and what you own) and your liabilities (what you owe) and your owner's equity (the difference between your liabilities and assets) are all on your balance sheet. Bankers care about balance sheets.
To learn more, visit www.sba.gov. That's the website for the Small Business Administration. They have lots of great information about financial planning and budgeting. Or contact me at upstartwyn@gmail.com.
In fact, before you can raise money, you need to be able to explain exactly how you'll make money.
Back in the days of the dot-com boom, it seemed that entrepreneurs only had to explain how they would generate revenue -- or sales. The idea of actually making money -- i.e., a profit was largely ignored. That's why we had the dot-com meltdown and so many businesses went out of business.
But nowadays, you need to know how you'll generate positive cash flow and profit. That takes a financial plan, or more simply, a budget. You need to answer these questions:
How much do you think you'll sell each month?
What will it cost to create what you sell (cost of goods sold)?
What will it cost to sell what you sell (selling and marketing)?
What will your overhead cost (all your fixed costs)?
What's left after you subtract your costs from your sales (Your operating income)?
All that goes into your income statement. When you actually make money, you can substract depreciation, income taxes, amortization and interest expenses to get net income.
To understand your cash flow, you'll have to look at capital expenditures and the cost of producing your inventory, in addition to other cash outflows and inflows. These numbers are key in understanding what it will take to open and operate your business. Cash is king. If you have the cash to pay the bills, you'll be O.K..
Your assets (your cash and what you own) and your liabilities (what you owe) and your owner's equity (the difference between your liabilities and assets) are all on your balance sheet. Bankers care about balance sheets.
To learn more, visit www.sba.gov. That's the website for the Small Business Administration. They have lots of great information about financial planning and budgeting. Or contact me at upstartwyn@gmail.com.
Friday, August 22, 2008
10 Tips for Starting a Business - Tip # 7 - Your Team
Investors don't invest in products or services. They invest in people. They look at the management team as the most important part of the business.
Even if you aren't going to raise outside capital, you still need a strong team to make your business successful. Of course, the first member of your team is YOU. Why are you the person who will create a business that is successful? Do you have experience as an entrepreneur? Do you have experience in the industry? How about your partners or your advisers?
If you just have an idea or a prototype of an invention, can you tap outside experts to help you produce and market your product? Do you have trusted advisers, such as a lawyer or accountant, who can help you? How about a professional strategic planner or operations expert?
Figure out what people you need, whom you want to work with, then get the team together.
But whatever you do, make sure you work out who will contribute what and what each person will receive in rewards. Pay? Stock? Options? Work it out in advance. Then, put it in writing. Get a lawyer to help you craft a document detailing what will happen if the company grows or if the company goes bust or is sold.
In any event, if you're raising capital, highlight the skills, talents and experience of the management team in all your pitches. That is your key to success.
Even if you aren't going to raise outside capital, you still need a strong team to make your business successful. Of course, the first member of your team is YOU. Why are you the person who will create a business that is successful? Do you have experience as an entrepreneur? Do you have experience in the industry? How about your partners or your advisers?
If you just have an idea or a prototype of an invention, can you tap outside experts to help you produce and market your product? Do you have trusted advisers, such as a lawyer or accountant, who can help you? How about a professional strategic planner or operations expert?
Figure out what people you need, whom you want to work with, then get the team together.
But whatever you do, make sure you work out who will contribute what and what each person will receive in rewards. Pay? Stock? Options? Work it out in advance. Then, put it in writing. Get a lawyer to help you craft a document detailing what will happen if the company grows or if the company goes bust or is sold.
In any event, if you're raising capital, highlight the skills, talents and experience of the management team in all your pitches. That is your key to success.
Wednesday, August 20, 2008
10 Tips for Starting a Business - Tip #5 - Basic Operations
You're really starting a business. Where is that business going to be? Now is the time to start planning your operations.
Is your headquarters in the basement of your house? Your garage? An empty bedroom? Or are you going to go out and rent a building or a space in a business incubator? This is one of the basic questions you need to answer. How much will it cost to rent space? Do you really need to do this?
One of my clients, a fashion designer, designed all of her creations in her basement. She had her patterns, her computers and her samples all in the basement. To manufacture her clothes, she ordered fabric from France and had it shipped to the manufacturers in New York. There, the pattern makers, cutters and sewers mass produced the clothes. Then, they shipped the clothes (the inventory) to a warehouse. The warehouse shipped everything to the boutiques. It was quite a process. Brigitte, the designer, found that she would need far more volume if she wanted to contract with overseas producers in places like China or Turkey. That's why she manufactured in New York.
Another client, Teroforma has their headquarters in the same building as their warehouse. They do their own shipping to consumers and to retailers. Their inventory is manufactured by artisans overseas. But while the management was finding designers and artisans, they worked out of their house.
Another client, MyBroadway.com, has its production studios for producing proprietary videos in the same building as its offices in New York City. This gives the company a distinct advantage.
What do you need to provide your service or manufacture and sell your product? If you're an inventor, will you license your design or actually manufacture and sell your product?
You need to think all this through and price the alternatives. What will computers cost? Furniture? Overhead? Personnel? Security? Should you lease or buy?
Start doing your homework.
Is your headquarters in the basement of your house? Your garage? An empty bedroom? Or are you going to go out and rent a building or a space in a business incubator? This is one of the basic questions you need to answer. How much will it cost to rent space? Do you really need to do this?
One of my clients, a fashion designer, designed all of her creations in her basement. She had her patterns, her computers and her samples all in the basement. To manufacture her clothes, she ordered fabric from France and had it shipped to the manufacturers in New York. There, the pattern makers, cutters and sewers mass produced the clothes. Then, they shipped the clothes (the inventory) to a warehouse. The warehouse shipped everything to the boutiques. It was quite a process. Brigitte, the designer, found that she would need far more volume if she wanted to contract with overseas producers in places like China or Turkey. That's why she manufactured in New York.
Another client, Teroforma has their headquarters in the same building as their warehouse. They do their own shipping to consumers and to retailers. Their inventory is manufactured by artisans overseas. But while the management was finding designers and artisans, they worked out of their house.
Another client, MyBroadway.com, has its production studios for producing proprietary videos in the same building as its offices in New York City. This gives the company a distinct advantage.
What do you need to provide your service or manufacture and sell your product? If you're an inventor, will you license your design or actually manufacture and sell your product?
You need to think all this through and price the alternatives. What will computers cost? Furniture? Overhead? Personnel? Security? Should you lease or buy?
Start doing your homework.
Tuesday, August 19, 2008
10 Tips for Starting a Business -- Tip # 4 -- What Will It Take?
What is it going to take to start your business?
How will you make and sell your product or service?
How will you get the word out?
Now is the time to start really researching and planning. Do you need an office? A factory? What can you do yourself? What do you need to outsource?
To find out, go out and study similar businesses. Talk to business owners, read articles in the trade press, join trade associations, go to events.
Make a list of questions, then go out and get them answered.
What will it take in time, space and money? Write down the answers. Create a plan for achieving your goals.
How will you make and sell your product or service?
How will you get the word out?
Now is the time to start really researching and planning. Do you need an office? A factory? What can you do yourself? What do you need to outsource?
To find out, go out and study similar businesses. Talk to business owners, read articles in the trade press, join trade associations, go to events.
Make a list of questions, then go out and get them answered.
What will it take in time, space and money? Write down the answers. Create a plan for achieving your goals.
Monday, August 18, 2008
10 Tips for Starting a Business - Tip #3 - The Big Idea
They say that necessity is the mother of invention. That's why big needs help inventive people come up with BIG IDEAS. You know there's a need. You know there's a big, growing market with that need.
How are you going to fill that need? What is your BIG IDEA?
Your idea for filling a need can be born from a passion you have or simply a frustration. That's how Airborne was invented. A second grade school teacher was tired of getting sick. She created an herbal concoction to help her immune system fight off germs. The product is wildly successful.
From the Airborne website: "Airborne is the best-selling herbal health formula that boosts your body's immune system. It was created by a former second-grade school teacher, Victoria Knight-McDowell." http://www.airbornehealth.com/about_index.php
One of my own clients saw a need in the marketplace for videos that enable people to talk about their passions and the products they are loyal to. It's called Loyaltv.com -- www.loyaltv.com. My favorite video on the site is the one about the Camry. That video lets people see so much more about that car than you would ever get from a car commercial or even the Toyota website. This site fills people's needs to learn more about products from real people telling real stories. I'm thinking of going out and making some videos like this myself. I want other people to know about the products I think are great.
Now, some people approach this whole business development dynamic differently. They have what they think is the Big Idea and then look to see if there is a need and a market. That's OK, as long as you have all three elements.
How are you going to fill that need? What is your BIG IDEA?
Your idea for filling a need can be born from a passion you have or simply a frustration. That's how Airborne was invented. A second grade school teacher was tired of getting sick. She created an herbal concoction to help her immune system fight off germs. The product is wildly successful.
From the Airborne website: "Airborne is the best-selling herbal health formula that boosts your body's immune system. It was created by a former second-grade school teacher, Victoria Knight-McDowell." http://www.airbornehealth.com/about_index.php
One of my own clients saw a need in the marketplace for videos that enable people to talk about their passions and the products they are loyal to. It's called Loyaltv.com -- www.loyaltv.com. My favorite video on the site is the one about the Camry. That video lets people see so much more about that car than you would ever get from a car commercial or even the Toyota website. This site fills people's needs to learn more about products from real people telling real stories. I'm thinking of going out and making some videos like this myself. I want other people to know about the products I think are great.
Now, some people approach this whole business development dynamic differently. They have what they think is the Big Idea and then look to see if there is a need and a market. That's OK, as long as you have all three elements.
What is your big idea? Is it big enough to catch on in the marketplace? 8 out of 10 new products die. What will make yours survive?
Tuesday, August 12, 2008
10 Tips for Starting a Business - Tip #2
Lots of people want to start a business because they love doing something, such as writing computer code. Others have an invention. Still others just want the freedom to be their own boss.
But the single most important thing you must figure out is if there is a need in the marketplace. Do lots of people have a need for your product or service? Is the need big enough that they will spend money to satisfy that need?
Tip # Find and Fill a Need.
But the single most important thing you must figure out is if there is a need in the marketplace. Do lots of people have a need for your product or service? Is the need big enough that they will spend money to satisfy that need?
Tip # Find and Fill a Need.
Monday, August 11, 2008
Ten Tips for Starting Your Business
Lots of people think about starting businesses. But if you really want to do it, you have to clear away the cobwebs of your mind. You have to start thinking strategically and logically. I don' t mean that you can't have passion. You won't succeed without passion. But you do need to become focused.
Tip 1: Decide what you really want out of your business. Where do you want to be in five years?
Stay tuned. More tips to come.
Tip 1: Decide what you really want out of your business. Where do you want to be in five years?
Stay tuned. More tips to come.
Tuesday, July 22, 2008
Starting a Business
I received a comment about starting businesses with a question about how to decide if you should buy or start your own business and how to do it. Here is my reply:
I think that the best way to start a business is to look for a need in the marketplace that no one else is filling. Can you fill it?
To buy a business is a bit different. You could invest in a start-up that you believe in and become a hands-on manager, using your special skills. You can find businesses at local venture fairs.
There are also franchise fairs and business brokers. If you get involved with either of those, get yourself a good business lawyer and do lots of research and ask lots of questions.
Consultants like me can coach you through the process.
Thanks for your comments.
UpstartWyn
I think that the best way to start a business is to look for a need in the marketplace that no one else is filling. Can you fill it?
To buy a business is a bit different. You could invest in a start-up that you believe in and become a hands-on manager, using your special skills. You can find businesses at local venture fairs.
There are also franchise fairs and business brokers. If you get involved with either of those, get yourself a good business lawyer and do lots of research and ask lots of questions.
Consultants like me can coach you through the process.
Thanks for your comments.
UpstartWyn
Wednesday, February 27, 2008
Stop Planning, Start Doing
In the past two weeks I discovered that two people who took my course in business planning had started businesses. I was so excited. Typically, people take a class on how to write a business plan and then procrastinate. But these two entrepreneurs have actually started businesses. One called me to come over and see his products, distribution center and offices. His website will launch next month. When it does, I'll be sure to write about it. In the second case, I saw an ad for the business and remembered it from my class. It's called DanielCare. Daniel provides aides to frail elderly who need help with the chores of daily living. www.danielcare.com.
I was particularly interested because I'm doing volunteer work to help people in my town and church age in place. Aging in Place is a national movement. Most older folks simply want to stay in their homes, not move to assisted living or a nursing home. Aging in Place organizations help them do that.
The thing that struck me most about my students is that they each perceived a need in the marketplace and commenced to fill it. They took their own money and time and just did it.
Please contact me with questions or comments.
I was particularly interested because I'm doing volunteer work to help people in my town and church age in place. Aging in Place is a national movement. Most older folks simply want to stay in their homes, not move to assisted living or a nursing home. Aging in Place organizations help them do that.
The thing that struck me most about my students is that they each perceived a need in the marketplace and commenced to fill it. They took their own money and time and just did it.
Please contact me with questions or comments.
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