Where are you from originally?
I was born and raised in Kenya until my teenage years. Thereafter we lived in Europe before I came to the United States for College.
What university did you go to?
I did my bachelors in James Clark School of Engineering – University of Maryland and McDonough School of Business – Georgetown University
What brought you to Austin?
I visited a friend of mine during her graduation and fell in love with the city. I later moved my consulting firm here and have loved it ever since.
What is the idea behind your group?
National Black MBA Association, Austin Chapter: http://www.austinblackmba.org/
The mission of Austin Chapter of the NBMBAA is to lead in the creation of educational opportunities and economic growth for African American Professionals in Central Texas. Our Chapter is comprised of a network of business professionals, business students, and entrepreneurs whose goal is to share knowledge, build business skills, and generate employment opportunities in management fields. The NBMBAA Austin Chapter was established in December 2006 and since then has continued to educate its members both on the professional and entrepreneurial pursuits.
What need does it fulfill?
The need for this event is to provide minority business owners who are set for their next challenge an avenue to take their businesses to the next level. By bringing VCs and AIs and minority innovators together we hope to enrich the community as well as educate our entrepreneurs.
What exactly does your group do?
In addition to providing professional, leadership and entrepreneurial development to our members we also have a leaders of Tomorrow (LOT) program, a high school mentoring program that has helped to expand the overall number of minority leaders in corporate America by providing mentor/leader relationships with business executives and high school students in the community. We also have the Rising Stars Collegiate Program launched on Oct. 13th, 2009 in partnership with Huston-Tillotson University. Local business professionals and leaders serve as volunteer mentors to students, one mentor per student. Events such as the upcoming event help us identify successful entrepreneurs who can mentor entrepreneurial innovators in our chapter.
Who is it for?
Anyone interested in the progress of minorities in Austin.
What was the most challenging aspect of starting up the group?
The most challenging aspect of starting a group is finding the resources to support the organization’s initiatives and also finding the right people who have enough time to volunteer and help execute the vision and initiatives of the organization.
What is the next step for you and your group?
Since we have only been existence for four years and the main focus has been getting started in the right direction, the next step is creating awareness about the organization in the Austin community and growing the chapter in membership and sponsorship. Building value for our members is our key focus 2011.
What advice do you have for entrepreneurs?
Austin has wonderful resource organizations to support your dreams. Joining such organizations as AEN, BootStrap Austin, Texas Venture Labs, Tech Ranch and leveraging RISE Alliance conferences, start-up conferences you are sure to network with like minds to take you to the next level.
Tell me more about your upcomingevent
This upcoming event program highlights different avenues for funding and sessions from some of Austin’s business leaders. We also plan to have a VC and AI funding symposium which will be the main feature after the luncheon, where at least 5 participants will get to pitch in front of an audience for funding between $150K – 5M. Keynotes include The path to entrepreneurship featuring Bijoy Goswami and luncheon keynote featuring Corey Bell on Serial Entrepreneur. The details are:
Event Location: AT & T Executive Center – UT,
Time: 8.00AM – 4.00PM
Date: November 12th, 2010
What Austin-based resource have you found to be the most helpful and why?
AEN and ABJ are the most helpful as they keep entrepreneurs connected and well informed on what is going on in the city. There’s never a shortage of business development ideas at their events and connecting with like minds helps keeps you innovative.
Wednesday, September 22, 2010
Saturday, September 18, 2010
Aaron Lyons of McCombs School of Business Talks about Texas Startup Meetup
Where are you from originally?
I’ve lived all over the country, but have called Austin home for the last 15 years.
What university did you go to?
I received my undergraduate degree from UT in 2005, and am currently in my second year of the full time MBA program at UT focusing on entrepreneurship.
What brought you to Austin?
I grew up in Austin but moved to Dallas to work after school. I moved back to Austin for school and to get back into the entrepreneurship scene.
What is your passion and strength?
Other than family and UT football, my biggest passion is entrepreneurship and taking things from an idea to reality. I think this passion, along with my creativity and the ability to understand and relate to the consumer, are the biggest strengths I bring to the table.
What need does it fulfill?
Anytime you’re starting a company or working for a start-up, you better have passion. Lack of resources forces you to be creative, and if you don’t understand the consumer there’s no way you’ll succeed.
What exactly do you bring to startups?
Because of my diverse experience and background, I have the ability to adapt, learn quickly, and wear multiple hats. In a startup environment you play different roles every day, so it’s important to be able to step outside of your comfort zone and take on whatever challenge may present itself.
What type of startup would benefit from your strengths?
Any company that is truly customer centric. It’s easy to say you’re customer centric, but I mean companies that revolve around and engage the customer in every aspect of the business.
What was the most challenging aspect of starting up a business?
Well since I’m going through the process now, I can tell you that investing the time and resources up front to validate the market opportunity is difficult and exhausting, but it’s something that must be done and is often overlooked.
What advice do you have for entrepreneurs?
Surround yourself with people who are smarter than you, don’t be afraid to share your ideas and goals, spend as much time as you can up front validating your market
What Austin-based resource have you found to be the most helpful and why?
There is no shortage of them, that’s for sure. AEN, ABJ, AAS are all fantastic at reporting the latest happenings in the Austin entrepreneurial community. Paying attention to the calendars and going to networking events like Start Up Meet Up (SUMU) is ultimately the most valuable thing you can do as an entrepreneur in Austin.
I’ve lived all over the country, but have called Austin home for the last 15 years.
What university did you go to?
I received my undergraduate degree from UT in 2005, and am currently in my second year of the full time MBA program at UT focusing on entrepreneurship.
What brought you to Austin?
I grew up in Austin but moved to Dallas to work after school. I moved back to Austin for school and to get back into the entrepreneurship scene.
What is your passion and strength?
Other than family and UT football, my biggest passion is entrepreneurship and taking things from an idea to reality. I think this passion, along with my creativity and the ability to understand and relate to the consumer, are the biggest strengths I bring to the table.
What need does it fulfill?
Anytime you’re starting a company or working for a start-up, you better have passion. Lack of resources forces you to be creative, and if you don’t understand the consumer there’s no way you’ll succeed.
What exactly do you bring to startups?
Because of my diverse experience and background, I have the ability to adapt, learn quickly, and wear multiple hats. In a startup environment you play different roles every day, so it’s important to be able to step outside of your comfort zone and take on whatever challenge may present itself.
What type of startup would benefit from your strengths?
Any company that is truly customer centric. It’s easy to say you’re customer centric, but I mean companies that revolve around and engage the customer in every aspect of the business.
What was the most challenging aspect of starting up a business?
Well since I’m going through the process now, I can tell you that investing the time and resources up front to validate the market opportunity is difficult and exhausting, but it’s something that must be done and is often overlooked.
What advice do you have for entrepreneurs?
Surround yourself with people who are smarter than you, don’t be afraid to share your ideas and goals, spend as much time as you can up front validating your market
What Austin-based resource have you found to be the most helpful and why?
There is no shortage of them, that’s for sure. AEN, ABJ, AAS are all fantastic at reporting the latest happenings in the Austin entrepreneurial community. Paying attention to the calendars and going to networking events like Start Up Meet Up (SUMU) is ultimately the most valuable thing you can do as an entrepreneur in Austin.
Thursday, September 16, 2010
Shaun Tinoco a SATOP Technical Consultant Talks about NASA Support Startups
Where are you from originally?
I grew up in Thousand Oaks in Southern California enjoying the great weather, beaches and mountains. The Dallas Cowboys used to hold their training camp in T.O., so I was always a fan and now I can watch them every weekend here in Texas. It’s still nice to visit my family out there, but it’s just not affordable anymore.
What university did you go to?
After being a Nuclear Plant Watch Officer in the Navy, I went to UC San Diego to get my BS Mechanical Engineering degree. I also attended the IC2 Institute here at UT-Austin in 2002 to obtain my MS in Technology Commercialization. This is the program that has led me down my present day path.
What brought you to Austin?
As I mentioned before, the affordability of California is difficult and the other side of my family, at the time, had family in Georgetown so we headed east. The timing was good and I landed a position at Applied Materials, but had to endure two separate layoffs in 1996 and again in 2001. So let’s say, I’m not looking to work there anymore.
What is your passion and strength?
Being in the Tech Commercialization field I thoroughly enjoy working with entrepreneurs, inventors and small businesses. These people have such great ideas, but unfortunately not always novel. I attempt to find another use or twist for their technology to keep the possibilities alive, but not at a financial or time cost. If it’s not good I recommend that they stop and move onto something else. I have covered many deserving technologies through IC2 and working at NASA Johnson Space Center’s Tech Transfer Office. By seeing so many it becomes easier to find ways to improve and implement them.
What need does it fulfill?
My desire helps to solve the need or “pain” that the people I work with have. Many are obviously engineers with tremendous intellect for solving technical issues, but don’t have the expertise to solve the business aspects to complete the technology’s lifecycle. I have been an engineer involved with design, quality, manufacturing, implementation, customer support and many other tasks, but now I am on the other side addressing market and risk analysis, partnerships, marketing and licensing.
I am able to understand my customers and then provide services to satisfy them.
What exactly do you bring to startups?
Presently I bring opportunity both through my expertise and with the Space Alliance Technology Outreach Program (SATOP).
Recently I was in Corpus Christi and spoke at the Coastal Bend Business Innovation Center promoting SATOP. There are a number of start-ups housed at their incubator and they were so excited learning about the 40 hours of FREE technical support from NASA that they could get by simply signing up. I had a waiting line after the presentation and signed up three companies that afternoon with three more now working a little more diligently to get their technology ready to be reviewed.
By sitting with them I was able to understand what they were working on, but also heard that they needed technical and business support. They weren’t sure what the next step best may be.
What type of startup would benefit from your strengths?
I’ll start with, definitely not a software or an IT company. I’m a hands-on person and have worked from the bottom of ships to the highs of NASA space technologies.
I enjoy learning about new technologies and how best to apply them. They can be in materials, systems, biotech, nanotech, energy, etc. It doesn’t really matter because I absorb it all and bring the best methods to the table.
Being at NASA has me constantly thinking of ways to use space technologies originally designed for the rigors of harsh environments and how to now implement them down here on Earth. Let’s say I want to bring technology to earth.
What was the most challenging aspect of starting up a business?
Getting paid. I have done plenty of pro bono work while starting up, but now it’s paying off. When you’re on your own you have to constantly be looking for the next customers to work with. Through the SATOP program I have been traveling and telling as many organizations and networking groups about it. This has been double good; small entities are getting free assistance to get them over a barrier and I get to network and develop relationships where I can continue with them during commercialization.
I look forward to talking with any of your entrepreneurial network members to determine what services I can provide for them.
What advice do you have for entrepreneurs?
Take advantage of real free opportunities and sign up for the SATOP program at www.spacetechsolutions.com. It’s funded by NASA with no cost to you. For once, a free government program that you can take from.
Network and get known. You never know when the next opportunity will happen.
What Austin-based resource have you found to be the most helpful and why?
My strongest relationship in Austin is with the IC2 Institute. Our alums are in so many different industries that there is always someone that can provide a quick answer.
Of course the Austin Entrepreneur Network and Austin Inventors & Entrepreneurs Association have been helpful in supporting my work with SATOP.
Thanks,
Shaun
I grew up in Thousand Oaks in Southern California enjoying the great weather, beaches and mountains. The Dallas Cowboys used to hold their training camp in T.O., so I was always a fan and now I can watch them every weekend here in Texas. It’s still nice to visit my family out there, but it’s just not affordable anymore.
What university did you go to?
After being a Nuclear Plant Watch Officer in the Navy, I went to UC San Diego to get my BS Mechanical Engineering degree. I also attended the IC2 Institute here at UT-Austin in 2002 to obtain my MS in Technology Commercialization. This is the program that has led me down my present day path.
What brought you to Austin?
As I mentioned before, the affordability of California is difficult and the other side of my family, at the time, had family in Georgetown so we headed east. The timing was good and I landed a position at Applied Materials, but had to endure two separate layoffs in 1996 and again in 2001. So let’s say, I’m not looking to work there anymore.
What is your passion and strength?
Being in the Tech Commercialization field I thoroughly enjoy working with entrepreneurs, inventors and small businesses. These people have such great ideas, but unfortunately not always novel. I attempt to find another use or twist for their technology to keep the possibilities alive, but not at a financial or time cost. If it’s not good I recommend that they stop and move onto something else. I have covered many deserving technologies through IC2 and working at NASA Johnson Space Center’s Tech Transfer Office. By seeing so many it becomes easier to find ways to improve and implement them.
What need does it fulfill?
My desire helps to solve the need or “pain” that the people I work with have. Many are obviously engineers with tremendous intellect for solving technical issues, but don’t have the expertise to solve the business aspects to complete the technology’s lifecycle. I have been an engineer involved with design, quality, manufacturing, implementation, customer support and many other tasks, but now I am on the other side addressing market and risk analysis, partnerships, marketing and licensing.
I am able to understand my customers and then provide services to satisfy them.
What exactly do you bring to startups?
Presently I bring opportunity both through my expertise and with the Space Alliance Technology Outreach Program (SATOP).
Recently I was in Corpus Christi and spoke at the Coastal Bend Business Innovation Center promoting SATOP. There are a number of start-ups housed at their incubator and they were so excited learning about the 40 hours of FREE technical support from NASA that they could get by simply signing up. I had a waiting line after the presentation and signed up three companies that afternoon with three more now working a little more diligently to get their technology ready to be reviewed.
By sitting with them I was able to understand what they were working on, but also heard that they needed technical and business support. They weren’t sure what the next step best may be.
What type of startup would benefit from your strengths?
I’ll start with, definitely not a software or an IT company. I’m a hands-on person and have worked from the bottom of ships to the highs of NASA space technologies.
I enjoy learning about new technologies and how best to apply them. They can be in materials, systems, biotech, nanotech, energy, etc. It doesn’t really matter because I absorb it all and bring the best methods to the table.
Being at NASA has me constantly thinking of ways to use space technologies originally designed for the rigors of harsh environments and how to now implement them down here on Earth. Let’s say I want to bring technology to earth.
What was the most challenging aspect of starting up a business?
Getting paid. I have done plenty of pro bono work while starting up, but now it’s paying off. When you’re on your own you have to constantly be looking for the next customers to work with. Through the SATOP program I have been traveling and telling as many organizations and networking groups about it. This has been double good; small entities are getting free assistance to get them over a barrier and I get to network and develop relationships where I can continue with them during commercialization.
I look forward to talking with any of your entrepreneurial network members to determine what services I can provide for them.
What advice do you have for entrepreneurs?
Take advantage of real free opportunities and sign up for the SATOP program at www.spacetechsolutions.com. It’s funded by NASA with no cost to you. For once, a free government program that you can take from.
Network and get known. You never know when the next opportunity will happen.
What Austin-based resource have you found to be the most helpful and why?
My strongest relationship in Austin is with the IC2 Institute. Our alums are in so many different industries that there is always someone that can provide a quick answer.
Of course the Austin Entrepreneur Network and Austin Inventors & Entrepreneurs Association have been helpful in supporting my work with SATOP.
Thanks,
Shaun
Wednesday, September 15, 2010
Sales 101--The Three Basic Qualifiers
In sales, there are three basic qualifiers that indicate you’re on the path to a successful sale.
The first is confirming the need for your product or service. They must have a real need in order to go through with purchasing the product.
The second is to ensure the person you are talking to can make the decision to buy. If they can’t make the decision then you have to start over again with someone else.
The third is determining if they have a budget for the product/service you have to offer. If they don’t have the funds available then you’ll be convincing someone to buy your product who has no ability to actually proceed.
Best regards,
Hall T.
Thursday, September 9, 2010
Brandon Leblanc of Texas Evening Entrepreneurs Talks About His Group
Where are you from originally?
I was born in New Orleans, but I spent the first few years of my life in the Middle East(Egypt, UAE). I moved the Dallas area in the 6th grade.
What university did you go to?
I went to the University of Texas, and I am back there now getting my MBA.
What brought you to Austin?
School, and then I just couldn’t find a compelling reason to leave.
What is your passion and strength?
Providing services or products that add value to people’s lives in forum that is an integral part of its community.
What need does it fulfill?
For me it fulfills the need to see the results of my work. To feel like I did something productive and beneficial at the end of the day.
What exactly do you bring to startups?
I’m still working on that. My natural bent is creative solutions to problems or identifying a void in a market. But I am building the skills to implement all the moving parts to an idea.
What type of startup would benefit from your strengths?
Those that need an outside perspective. Someone who can understand what they are trying to do, but may not be married to the way they are going about it.
What was the most challenging aspect of starting up a business?
I wish I had a good answer to this but I don’t.
What advice do you have for entrepreneurs?
Research. Everthing.
What Austin-based resource have you found to be the most helpful and why?
So far grad school, and taking the opportunity to work with startups through educational partnerships.
I am in the part time program, which means I am working full time while I go to school. In lieu of internships we have the opportunity to work on ENHANCE projects. These are actual projects for actual companies that the grad students work on and present findings to the company. Most of these are found through University staff and are from larger companies.
As a member and now President of the Texas Evening Entrepreneurs I have been involved in recruiting projects from small businesses in the Austin area. It allows us to work on something entrepreneurial, and provides small business owners a team of 3-5 intelligent people to work on an issue they are facing for free.
Our official website is being revamped but if there is any interest in this or the other opportunities we have for entrepreneurs through TEE please email me at Brandon.Leblanc@mba12.mccombs.utexas.edu or connect to our facebook group http://www.facebook.com/#!/group.php?gid=79967277818
I was born in New Orleans, but I spent the first few years of my life in the Middle East(Egypt, UAE). I moved the Dallas area in the 6th grade.
What university did you go to?
I went to the University of Texas, and I am back there now getting my MBA.
What brought you to Austin?
School, and then I just couldn’t find a compelling reason to leave.
What is your passion and strength?
Providing services or products that add value to people’s lives in forum that is an integral part of its community.
What need does it fulfill?
For me it fulfills the need to see the results of my work. To feel like I did something productive and beneficial at the end of the day.
What exactly do you bring to startups?
I’m still working on that. My natural bent is creative solutions to problems or identifying a void in a market. But I am building the skills to implement all the moving parts to an idea.
What type of startup would benefit from your strengths?
Those that need an outside perspective. Someone who can understand what they are trying to do, but may not be married to the way they are going about it.
What was the most challenging aspect of starting up a business?
I wish I had a good answer to this but I don’t.
What advice do you have for entrepreneurs?
Research. Everthing.
What Austin-based resource have you found to be the most helpful and why?
So far grad school, and taking the opportunity to work with startups through educational partnerships.
I am in the part time program, which means I am working full time while I go to school. In lieu of internships we have the opportunity to work on ENHANCE projects. These are actual projects for actual companies that the grad students work on and present findings to the company. Most of these are found through University staff and are from larger companies.
As a member and now President of the Texas Evening Entrepreneurs I have been involved in recruiting projects from small businesses in the Austin area. It allows us to work on something entrepreneurial, and provides small business owners a team of 3-5 intelligent people to work on an issue they are facing for free.
Our official website is being revamped but if there is any interest in this or the other opportunities we have for entrepreneurs through TEE please email me at Brandon.Leblanc@mba12.mccombs.utexas.edu or connect to our facebook group http://www.facebook.com/#!/group.php?gid=79967277818
Wednesday, September 1, 2010
Content-Based Marketing -- -5 Steps to Creating a Content-Based Marketing Campaign
To gain attention in today’s business world you need to have something relevant, informative, and interesting to say. The days of banner ads are long gone. Content-based marketing will help you establish your name in the market. Here are the five steps to creating a content-based marketing campaign:
1. Know your audience--know their interests, care-abouts, problems, and issues.
2. Create a Mantra and a Message--boil your core message down to a few words
3. Create a list of topics --these topics address what you found in step 1. Focus on what your audience wants to read or know about.
4. Write about those topics in your blog -- you need to write consistently over time to establish a presence in the market.
5. Reformat the content for other purposes -- take the show on the road with presentations, articles, etc.
As you build out your content, you’ll also find you’re niche and your target audience will become more clearly defined.
Best regards,
Hall T.
Thursday, August 26, 2010
Networking--Take Them With You on the Entrepreneurial Journey
I see many companies go through the fund raising process. Without a doubt the ones with networking skills come out with checks more often than those without networking skills. Most investors are found through the networking process and even more importantly those relationships are nurtured through good networking practices. Entrepreneurs seeking funding need to apply their networking skills to the fund raising process just as they do to other areas of their business.
In fact, even before you go out to raise funding you should begin the networking process. When you identify an investor -- ask to put him on your list to keep him informed of your progress. As you make progress send out a short email (say once a month or quarter) with an update of accomplishments.
I advised a local gaming company to do that and when I received their first status report, I was blown away by the accomplishments they had achieved in the past few months including downloads, subscribers, product developments, awards, and more. Had they not sent me that report, I would never have suspected they had as much traction as they did. That’s the key to networking -- making contact and keeping those contacts with you on the journey.
Best regards,
Hall T.
Wednesday, August 25, 2010
Guest Blogger-- Kevin Ready 10 Seconds and Your Business is Toast!
The Survival Tactic Every Company Needs
Would you keep live hand grenades in your desk drawer?
Not unless you are Blackwater International!
That being the case, why do so many companies keep comparably deadly problems in their metaphorical desk drawer for months or even years without dealing with them?
What are we talking about here?
We are talking about Single Points of Failure!
A single key employee that has unique knowledge required to do your business. What will you do if they move on, or (in business parlance) ‘get hit by a bus?’
A single advertising medium can be a big risk too. If you depend on being on the first page of Google for most of your business, you are going to have problems if or when you are no longer at the top of the search results. Do you drive most of your traffic from Google AdWords? What would happen if you could no longer advertise there?
An outsized large client – If your company depends disproportionately on one client like Wal-Mart, then you are clearly at risk.
A Single Sales Channel - I was a partner in a company that depended disproportionately on EBay for moving physical products from its warehouse into consumer's hands. This eventually got 'em in big trouble - as Ebay.com policies frequently changed, and their systems could be unstable.
A Single Financial Pathway- This is a huge one. If you are an online merchant, what will you do if your merchant account gets yanked out from under you? (This happened to us in 1999) Depend on PayPal? What would happen if they suddenly demand over $1 million in warm, fuzzy, escrow money to continue using them? (This happened to us in 2008).
What is the magic solution, the ‘bomb squad’ that will remove that live grenade out of your desk drawer?
One word: Diversification
Diversification is a buzzword in financial markets for a reason. It makes a critical difference when things don't go as planned...and things rarely go as planned. Look through your organization and play a game of "What IF?" and consider what would happen if any of the various cogs and wheels that make your company operate should break, disappear, or stop working. If your investigation hits on any points that make you feel uncomfortable, sick at your stomach or like you want to throw up on your desk -- you've hit gold!
I know what you are saying, I have heard it before. Hell, I have SAID it before: “We know about the dependency but we are too busy working on everything else to deal with it right now.” Having two businesses that took torpedoes to the engine room by the “leave it alone for the time being, too busy to fix it” mindset gives me the right – the privilege – to tell you this:
“You DO have time to fix your dependencies if you decide that it is important to do so.”
Hire more talent and train them to know what your key people know. (This can be TOUGH to do, but should be part of your plan -- even if it is a long term goal).
Build diversification into your marketing plan. Invest in alternative methods of reaching your customers like pay-per-click, traditional advertising (if appropriate), social media, etc. Hope for the best, but plan for the worst. It will mean more business in good times and better survivability in bad times.
Establish multiple payment methods for your transactions. (This too can be hard, but you will never regret finding a viable solution to this single point of failure.)
The Takeaway (and an excellent sound-bite): Fix single points of failure before they bite you in the ass! It is less a matter of “IF”, and really a matter of “WHEN” that bite will come.
Kevin Ready blogs on business and entrepreneurship at http://KevinReady.com
Photo Credit
Would you keep live hand grenades in your desk drawer?
Not unless you are Blackwater International!
That being the case, why do so many companies keep comparably deadly problems in their metaphorical desk drawer for months or even years without dealing with them?
What are we talking about here?
We are talking about Single Points of Failure!
A single key employee that has unique knowledge required to do your business. What will you do if they move on, or (in business parlance) ‘get hit by a bus?’
A single advertising medium can be a big risk too. If you depend on being on the first page of Google for most of your business, you are going to have problems if or when you are no longer at the top of the search results. Do you drive most of your traffic from Google AdWords? What would happen if you could no longer advertise there?
An outsized large client – If your company depends disproportionately on one client like Wal-Mart, then you are clearly at risk.
A Single Sales Channel - I was a partner in a company that depended disproportionately on EBay for moving physical products from its warehouse into consumer's hands. This eventually got 'em in big trouble - as Ebay.com policies frequently changed, and their systems could be unstable.
A Single Financial Pathway- This is a huge one. If you are an online merchant, what will you do if your merchant account gets yanked out from under you? (This happened to us in 1999) Depend on PayPal? What would happen if they suddenly demand over $1 million in warm, fuzzy, escrow money to continue using them? (This happened to us in 2008).
What is the magic solution, the ‘bomb squad’ that will remove that live grenade out of your desk drawer?
One word: Diversification
Diversification is a buzzword in financial markets for a reason. It makes a critical difference when things don't go as planned...and things rarely go as planned. Look through your organization and play a game of "What IF?" and consider what would happen if any of the various cogs and wheels that make your company operate should break, disappear, or stop working. If your investigation hits on any points that make you feel uncomfortable, sick at your stomach or like you want to throw up on your desk -- you've hit gold!
I know what you are saying, I have heard it before. Hell, I have SAID it before: “We know about the dependency but we are too busy working on everything else to deal with it right now.” Having two businesses that took torpedoes to the engine room by the “leave it alone for the time being, too busy to fix it” mindset gives me the right – the privilege – to tell you this:
“You DO have time to fix your dependencies if you decide that it is important to do so.”
Hire more talent and train them to know what your key people know. (This can be TOUGH to do, but should be part of your plan -- even if it is a long term goal).
Build diversification into your marketing plan. Invest in alternative methods of reaching your customers like pay-per-click, traditional advertising (if appropriate), social media, etc. Hope for the best, but plan for the worst. It will mean more business in good times and better survivability in bad times.
Establish multiple payment methods for your transactions. (This too can be hard, but you will never regret finding a viable solution to this single point of failure.)
The Takeaway (and an excellent sound-bite): Fix single points of failure before they bite you in the ass! It is less a matter of “IF”, and really a matter of “WHEN” that bite will come.
Kevin Ready blogs on business and entrepreneurship at http://KevinReady.com
Photo Credit
Wednesday, August 18, 2010
Seed Stage Funding -- Over 200 Accelerator and Incubators in the US Today
Angel groups fund deals that have a product in the market or going to market very soon--say the next three months. Often times, start ups approach me seeking seed stage funding. They have an idea or the beginnings of a product but they need funding to finish the prototype. I call this seed stage funding because they are still fleshing out the business model and product. Formal angel groups typically don’t invest in seed stage deals. They want deals that are further along with more of the risk taken off the table.
There are several sources of funding for seed stage deals. If the entrepreneur only needs $50K to $100K this is more easily raised from family and friends. Also, individual angels will sometimes invest in seed stage deals if they like the idea, the entrepreneur, or the target market.
There’s a host of accelerators and incubator programs which offer funding as well as training. Here’s a list of over 100 accelerator programs and a similar list for for business incubators. Given the lower cost of starting a business today (it’s about 1/10 what it was 10 years ago), these accelerator/incubator programs can be quite helpful.
Best regards,
Hall T.
There are several sources of funding for seed stage deals. If the entrepreneur only needs $50K to $100K this is more easily raised from family and friends. Also, individual angels will sometimes invest in seed stage deals if they like the idea, the entrepreneur, or the target market.
There’s a host of accelerators and incubator programs which offer funding as well as training. Here’s a list of over 100 accelerator programs and a similar list for for business incubators. Given the lower cost of starting a business today (it’s about 1/10 what it was 10 years ago), these accelerator/incubator programs can be quite helpful.
Best regards,
Hall T.
Friday, August 13, 2010
Intellectual Property--The Four Elements of Intellectual Property
Almost every entrepreneur has heard that it’s important to protect the idea and most have heard about patents. But in addition to patents there are other forms of protection that come under the name of Intellectual Property. They are
Trade Secrets--information about your product/service that is not publicly known
Trade Patents--protection based on legal means through the US patent office
Copyrights--set of exclusive rights granted to the author or creator of an original work
Trademarks-- a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services.
A robust intellectual property strategy for your business includes all of the above. Some recommend you start with trade secrets and only move to patents if necessary. Using copyrights and trademarks you can add additional layers of protection around your business.
For a software business many startups talk about their patents, but most angels know that patent protection is weak at best in the software world since there are many ways to work around a patent if someone wants to duplicate the idea. A better measure is to calculate the cost of duplicating the software including design, coding, build out, and most importantly data set build out.
Best regards,
Hall T.
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