Sunday, August 12, 2007

Writing a Small Business Plan - 7 Great Tips for Mature Business Entrepreneurs

Mature business owners - entrepreneurs in the 40+, 50+ and 60s age group – are in a prime position to start up on their own after retirement from their mainstream career. Great ideas from experienced minds may be flowing, but without a good business plan format any new venture is much more likely to fail. Transforming your vision into reality begins with writing a small business plan, outlining your structure, costs and staffing, and making sure that your new business has the best chance of success from the outset!

Writing a small business plan – tip #1. Outline your structure.

Begin with the simplest ideas, using your existing knowledge and strengths, and start to build up your business plan format with the basics first. Think about how you want your new venture to run, how much time you’ll be able to commit, and what you ultimately want to achieve. Using a business start up kit is an excellent solution for new mature entrepreneurs.

Writing a small business plan – tip #2. Investment and capital.

Consider the financial side of your new business, how much money you personally have to start up with, and if you’ll require investment from elsewhere – banks or other lenders, venture capital, small business loans or even family and friends. When you’re looking at how to format a business plan, the financial side of your new enterprise is all too important, so making sure that you have the capital and investments in place from the beginning is an essential part of writing a small business plan.

Writing a small business plan – tip #3. Running costs.

Now that you’ve sorted out the initial capital, think about the day-to-day costs of running your new business. As well as the obvious overheads – materials, staffing costs and transport - remember to include the smaller items such as paper and envelopes, ink for your printer, telephone calls, internet and website charges in your business plan format.

Writing a small business plan – tip #4. Staffing.

No matter how large or small your new venture will be, you’re likely to need help with setting up or running your business, and this should be reflected in your business plan format. Consider the possibility that you’ll need to employ a few people, or if you’re working on your own, whether you’ll require to outsource some of your tasks, for example web design or copywriting.

Writing a small business plan – tip #5. Operations, sales and marketing.

A business start up kit for the home office could be a good choice when you’re moving into a new business after retiring. Planning the day to day running of your business, marketing and selling your product are all necessary components when writing a small business plan, so you’ll need good software to help you keep on track.

Writing a small business plan – tip #6. Time.

As a mature entrepreneur, you will no doubt have built up various skills over the years, which you will find invaluable when starting your own business. Keep in mind though; you want your business to work for you, not the other way round. Your business plan format should include the ability to automate and delegate tasks to streamline your business, giving you free time to enjoy the benefits of having your own company.

Writing a small business plan – tip #7. Organization and vision.

A key element when writing a small business plan is to ensure that the components of your business are neat and tidy. This includes files, documents, spreadsheets and software applications. Your business plan format must be adaptable, allowing you to change and grow your business in the future.

After retirement from a regular job, forming your own business can be an extremely rewarding experience. Starting out in the right way when writing a small business plan will not only save you time and money, but will give your new business the best opportunity for success in the future!

Read More...

Monday, July 9, 2007

Business Plan for a Startup Business

Read More...

Thursday, June 28, 2007

11 Golden Tips To Cut Costs When Launching A Startup

Launching a startup can be very expensive. In the last few years however the cost of launching innovative projects and web startups in particular has dropped dramatically. What you usually need to spend on is: hosting, domain registration, help from friends and a “big garage”. What is really important is to be patient and find a niche for your service or product. Many people get discouraged because of entry costs in markets and costs of creating and launching a startup.

Let me tell you how you can cut costs easily:

1. Look into projects according to your background.

The best way to save money is have a proper knowledge of the industry and the products you are going to provide. If you are an engineer try to stick to your background; biochemistry or astronomy will probably be something to avoid especially if you don’t have anyone with such knowledge in your company. The key to success is competitive advantage which derives from unique abilities and skills.

2. Ask your family and your friends to comment on the project.

You family and your friends will always tend to be subjective, but their advice will be free. Asking “what do you think about it?” will allow you to identify potential opportunities and serious mistakes. This could be vital.

3. Observe competitors before spending money.

This is something that I always stress. Don’t create another Youtube or Google, focus on innovation. A good solution is to avoid cloning, but invent something new every time. The only exception that comes to my mind is cloning from one country to another. Fotki.pl for example is very similat to Flickr.com and is a polish clone of it. This site is very popular and in this case it turns out to be a good approach to business.

4. Keep your ideas secret.

It usually takes 2-3 weeks to clone a project. Your ideas are the most important thing in the whole company. Never share all your ideas or you will end up with nothing. Competition is fierce and big players in the industry are always one step ahead, so be careful.

5. Negotiate with suppliers

Cutting costs by negotiating with suppliers is extremely important. Your bargain power at the begging is very low but if you are cunning you can find special opportunities even in competitive markets.

6. Don’t tell media what you are doing in the first stage of your project.

This point is connected with point 4. If you tell media about your ideas they will do exactly, what you planned to do. Marketing comes next, first concentrate on the product.

7. Be flexible.

If you see that there is something to be changed, change it. There is no point being stubborn. Be critical and you will be able to optimize your product or service.

8. Spend more time thinking than doing

It doesn’t matter how much time you spend working on a bad project. It’s better to wrok an hour on a very good idea than 24 hours on crap. “Quality is the king”.

9. Be ready to give up when everything goes wrong. There are thousands of project to look at.

This point is vital to survive. Risk diversification and project selection will take you out of major problem. If something goes wrong, switch to something diffeent.

10. Run a blog to keep in touch with users.

Keep in touch with customers. It doesn’t matter how you do, but they have to know that you are able to support them in case something goes wrong.

11. Don’t hire, outsource instead

It is always a good idea to focus on the core business. If you need to have something done from someone else, especially from time to time, try to avoid hiring.

Read More...

Monday, June 25, 2007

3 Important Qualities of Entrepreneurs

Entrepreneurs today have transformed to become a new breed of business-savvy individuals. Although they may come from all corners of the world, they still possess the same qualities. You should check out these qualities in order to know whether or not you fit the description of an entrepreneur.

1. Patience Most successful entrepreneurs understand the need for patience. After all, Rome was not built in a single day. From formulating a strategy to planning and implementation, you should know that it will take time. If you are not normally a patient person, you can make a realistic plan complete with an acceptable timeline. This way, you will be focused on meeting each deadline and not on how long each portion of the plan is taking. Make use of this time to explore and look at your plans on every angle. Conduct researches and interviews to verify information.

2. Organized Because most entrepreneurs establish businesses single-handedly, being organized is a must. You must be able to manage your time and resources well in order to maximize their full potentials. If you are having difficulties managing your time, you should consider looking for effective ways to accomplish this, such as making lists. Most entrepreneurs manage excellently because they have learned to discern which among the many tasks at hand is least important. Prioritizing is the key and even if many people say that there is no single formula for establishing a business, you will learn eventually that effective time management helps immensely.

3. Perseverance As an entrepreneur, this quality is important for the simple reason that businesses do not succeed overnight. You should expect bumps along the way and some losses. If you are willing to look at these setbacks as challenges and opportunities to persevere and work harder, then your decision to be an entrepreneur is right, but if you feel disheartened at the first sign of trouble, then this is not the career for you. Entrepreneurs usually welcome these obstacles because they test flexibility, adaptability and of course, perseverance.

Becoming an entrepreneur requires you to have a complete set of entirely new qualities. Luckily for you, these qualities can be considered as skills that can be acquired through dedication or commitment. Now that you have realized that establishing a business is exciting AND very challenging, you should prepare yourself for any unexpected problems, the good news is you will learn a lot from all these situations and gain much enlightening and rewarding experiences.

Read More...

Wednesday, June 20, 2007

S Corp Or Llc? That Is The Question.

As a business owner, it only makes sense to protect your personal assets from company debts and liabilities. The question is: what’s the best way to do that? If you’re going back and forth between the limited liability corporation (LLC) and the S Corporation (standard corporation), you’re certainly not alone!

LLC vs Corporation – The Similarities

So what benefits do these two business entities share? Owners of an S Corp or LLC both enjoy limited personal liability, they both avoid "double taxation," and they both pay income taxes on a flow-through basis like sole proprietors and partners.

In the past, business owners who wanted to protect their personal assets but also wanted to report income and losses on a personal tax return had to create an S Corporation. Today, that can also be accomplished with an LLC. And for many small businesses, the flexibility of the LLC makes it a pretty popular option. In fact, in the LLC vs S Corp battle, the LLC is quickly becoming the entity of choice among small business.

Benefits of LLC vs S Corp

•Simple & Fast – An LLC can be formed in one easy step, while an S Corporation election is made only after a General Corporation is formed first.

•Skip the Formalities – S Corporations are required to hold annual meetings and keep formal minutes, while an LLC is not.

•Flexibility – LLC members can split profits/losses in any way they choose. In an S Corporation, shareholders must receive dividends according to the number of shares that they own, regardless of the amount of effort put into the business.

•Ownership Freedom – Any combination of individuals or business entities can own an LLC. Only United States citizens and resident aliens may own an S Corporation.

Still, when it comes to the question of S Corp or LLC, a clear winner cannot be named. While many business owners are enjoying the simplicity and flexibility of the LLC, it’s not the best choice for everyone.

Benefits of S Corporation

•Issuing of Stock – If you want to entice or compensate employees with stock options or stock bonuses, the S Corp is still the way to go since LLCs do not issue stock.

•Tax Benefits – S Corp shareholders pay Medicare and Social Security tax only on money received as wages or salary, not on profits received as dividends or that stay within the company.

•Fewer Audits – An S Corporation is said to have less risk of government audits as a corporation, compared to an LLC.

As you can see, there’s no clear cut answer as to which form of business entity is better. Each individual business owner will have to weigh his or her options in the battle of LLC vs S Corp. If you’re still feeling overwhelmed, it might be time to talk to a business attorney or accountant about what’s best for you. Another great option is utilizing an online incorporation firm – they can answer your questions and assist you in setting up your S Corp or LLC for a reasonable fee.

Read More...

Sunday, May 20, 2007

How to Research Your Business Idea.

The Idea Stage

For some entrepreneurs, getting the idea-and imagining the possibilities-is the easy part. It's the market research that doesn't come so naturally. "It's a big red flag when someone outlines the size of the market-multibillion dollars-but doesn't clearly articulate a plan for how the idea will meet an unmet need in the marketplace," says Aaron Keller, an adjunct professor of marketing at the University of St. Thomas in neighboring St. Paul and a managing principal of Capsule, a Minneapolis-based brand development firm.

That kind of full-throttle approach can cost you. "Entrepreneurs are often so passionate about their ideas, they can lose objectivity," adds Nancy A. Shenker, president of the ONswitch LLC, a full-service marketing firm in Westchester, New York. "Rather than taking the time to thoroughly plan and research, they sometimes plow ahead with execution, only to spend valuable dollars on unfocused or untargeted activities."

Market research, then, can prove invaluable in determining your idea's potential. You can gather information from industry associations, Web searches, periodicals, federal and state agencies, and so forth. A trip to the library or a few hours online can set you on your way to really understanding your market. Your aim is to gain a general sense of the type of customer your product or service will serve-or at least to being willing to find out through the research process. "For example," says Shenker, "if you don't know if your product will appeal to the youth market, make sure you include a sample of that population in your research efforts."

Your research plan should spell out the objectives of the research and give you the information you need to either go ahead with your idea, fine-tune it or take it back to the drawing board. Create a list of questions you need to answer in your research, and create a plan for answering them. "Utilize experts in planning and conducting research sessions," Shenker advises. "They can recommend what type of research is most appropriate, help you develop statistically valid samples and write questionnaires, and provide you with an objective and neutral source of information."

The type of information you'll be gathering depends on the type of product or service you want to sell as well as your overall research goals. You can use your research to determine a potential market, to size up the competition, or to test the usefulness and positioning of your product or service. "If, for example, the product is a tangible item, letting the target audience see and touch a prototype could be extremely valuable," notes Shenker. "For intangible products, exposing prospective customers to descriptive copy or a draft Web site could aid in developing clear communications."
Analysis

When working with firms on brand development, Keller first looks at a business idea from four perspectives: company, customer, competitor and collaborator. This approach allows Keller to scrutinize a business idea before even approaching the topic of brand development. Here's what he looks at for each of the four issues:

1. Company. Think of your idea in terms of its product/service features, the benefits to customers, the personality of your company, what key messages you'll be relaying and the core promises you'll be making to customers.

2. Customer. There are three different customers you'll need to think about in relation to your idea: purchasers (those who make the decision or write the check), influencers (the individual, organization or group of people who influence the purchasing decision), and the end users (the person or group of people who will directly interact with your product or service).

3. Competitor. Again, there are three different groups you'll need to keep in mind: primary, secondary and tertiary. Their placement within each level is based on how often your business would compete with them and how you would tailor your messages when competing with each of these groups.

4. Collaborators. Think of organizations and people who may have an interest in your success but aren't directly paid or rewarded for any success your business might realize, such as associations, the media and other organizations that sell to your customers.

Another approach is to research is SWOT analysis, meaning analysis of the strengths of your industry, your product or service; the weaknesses of your product (such as design flaws) or service (such as high prices); and potential threats (such as the economy). "[SWOT] enables you to understand the strengths and flaws, [everything] from internal information such as bureaucracy, product development and cost to external factors such as foreign exchange rates, politics, culture, etc.," says Drew Stevens, a St. Louis professional speaker and consultant who works with entrepreneurs in researching and marketing their ideas. "SWOT enables an entrepreneur to quickly understand whether their product or service will make it in the current environment."

Whatever your approach to evaluating your idea, just be sure you're meeting the research objectives you've outlined for your product or service. With those goals always top-of-mind, your analysis will help you discover whether your idea has any holes that need patching.
Checking Out the Competition

Assuming your research process has helped you uncover your competition, you now need to find out what they're up to. Shenker advises becoming a customer of the competition, whether by shopping them yourself or by enlisting the help of a friend. "Visit their Web site and put yourself on their list," she says. "Talk to your competitor's customers, too-ask them what they like or don't like about your competitor's product or service. If you conduct formal research, include a question like 'Where do you currently go for that product or service? Why?'"

Your aim is to understand what your competition is doing so you can do it better. Maybe their service is poor. Maybe their product has some flaws-something you'll only know if you try it out yourself. Or maybe you've figured out a way to do things better, smarter, more cost-effectively. Find your selling point. It's going to be the core of your marketing program, if and when you're ready for that step. It's also going to be what sets you apart and lures customers your way.

After all this-the idea stage, analysis of the idea, competitive analysis-you might find that your idea (and not your competitor's, as you'd hoped) is the one with the holes. Does that mean you need to scrap the whole thing and resign yourself to life as an employee? "Not always," says Keller. "Sometimes it just needs to be reworked or retooled."

That can be disheartening if you've already spent X amount of hours in the idea stage, plus X amount of hours on market research-only to find that you're not quite ready to get started after all. But taking the time to refocus your energies and determine why your idea needs some tightening is the best predictor of future success. "No entrepreneur wants to hear that his 'baby' is flawed, but only by listening and reacting to feedback can he give his idea a chance for success," notes Shenker. "Ask yourself, 'Is this a weakness that can be overcome?' If you can't create true value for your customer and your business, then it's time to pick another idea to pursue."

Remember, though, that many ideas simply need some fine-tuning. Before you panic and start flipping through your idea books again, closely consider whether you can make this idea work. After all, there was a reason you thought of that idea in the first place. Some ideas that seem like they'll be total duds after doing a little research end up being great successes. "Ideas that seem like a flop are always interesting to me," says Keller. "Sometimes you look into an idea and find it was just luck-but many times, you find the original founder had some clear insight into the potential. That insight was his or her focus, and it seemed to lead them to success.

"I've seen many people launch ideas that I thought were beyond foolish," Keller adds, "but then I learned more about the idea, the customer and the vision-and realized the true risk being taken."
When Your Idea Is Ready to Go

The market research you've conducted thus far ought to be a good indicator of where you need to go next with your idea. One key factor to consider is pricing. You want to do it competitively while also considering what the market will bear. For products or services that have a close competitor, Keller advises pricing with respect to the competitive position. "Higher-priced positioning requires an idea with enough relevance and importance to customers to overcome the gap between your idea and the nearest competitor," Keller says.

The beauty of being in business for yourself is that you have the option to make changes at will-so if a pricing structure isn't working, you can alter it. "Price high to start-you can always drop the price down," says Keller. "You can never go up."

Shenker adds that you need to be sure your product or service is delivering enough value to command the price you set. If possible, test different pricing offers as you go, and determine what works best.

When you're ready to get started, be sure you're selling where your target market is likely to buy. "Your marketing plan and budget should include a well-crafted distribution strategy," notes Shenker. If you'll sell over the Internet, budget for media to drive new customers to your site. If you'll sell via retail distribution, you might need workers with industry experience to help you reach your target market.

Remember, too, that you can always seek help in this long, arduous process of bringing an idea to fruition. The Internet, your local library, the U.S. Census Bureau, business schools, industry associations, trade and consumer publications, industry trade shows and conferences, and new-product development firms can be invaluable sources of information and contacts. "It's just a matter of seeking knowledge from as many sources as possible," notes Keller. It's also a matter of putting your ego aside and being willing to create a business that will not only survive, but thrive. "If you have an idea, don't be afraid to refine it, retool it, rethink it," adds Keller. "The more you do before you launch, the less you'll have to do [afterwards], and the less painful the lessons tend to be."

Read More...

Friday, May 11, 2007

10 crucial questions when naming your business, product, or Web site.

1.Who are my consumers?
You can't expect to sell to everyone, so define narrowly who you want to sell to and make the name appeal to that group. You need to know how the members of that group think. You will make your best guesses with your current knowledge, but you must be willing to discard some personal favorites when later testing shows that they don't work. Unfortunately, your first inclinations are seldom your best. Trust your testing.

2.What am I naming?
The goal here is to give the product a name that has appealing associations. In all types of naming it is important that the name evokes the right emotions, associations, and images. In addition, if you are naming a product that will be on a retail shelf, the name should be short enough to fit on the retail box and be legible from several feet away.

If your business, product, or service is altogether new, you will generally want its name to communicate at a glance what it concerns. For example, business names (trade names) such as GENERAL NUTRITION, SPORTSMAN'S WAREHOUSE, BURGER WORLD, and PETSMART communicate immediately what is at issue. On the other hand, if you are naming an additional product in an established business, the product name need not necessarily communicate what it is. For example, it is not necessary for names such as Mustang, Thunderbird, Marboro, and Camel to communicate that they are cars and cigarettes, because the consumer knows what they are from the company names.

3.What type of name do I want?
Names can be categorized in various ways. Some are surnames like Anderson Lumber Company, or Covey Leadership. Others are ordinary words combinations such as New Balance Shoes, or First Security Bank. Some names are coined words like Kodak, Nu Skin, Nytol, or Intel. Others such as Taurus and Nike have been borrowed from Greek mythology. Below are some of the types of names that you may consider:
Coined names:

The trend to coin business and product names is increasing, largely because they are quite easily trademarked. Names such as Nu Skin, Computune, and Envirocare are all recent coinages that communicate the types of businesses they are. Pentium is a well-known product name for Intel's fifth-generation product. A recent trend in coining names for cars has been to select a prestige two-syllable beginning, and end the name with "a." Consider "Maxima, Accura, Altima, Integra, Lumina, and others. Observe how the names of medicines tend to end in in, possibly to evoke an association with the word medicine: aspirin, penicillin, herpecin, corracidin, pamparin, and cholestin. And, we are all familiar with two-word names written as single words as in WordPerfect, Microsoft, and WriteExpress. Thus, coining names may be done in a number of ways, and coinages often follow trends. WriteExpress PowerNaming is especially designed to help you in this creative process.
Common Words with a Twist:

New Balance Shoes, WriteExpress Easy Letters, Out'n Back, All a Dollar, Wallpaper Warehouse, and Four Seasons Flowers are all business and product names that consist of common words in short, meaningful phrases. Each name is memorable because of the associations it evokes. Such traditional names are good but sometimes difficult to trademark.
Surnames and First names:

The current trend is to avoid the use of surnames unless they are well known or you have the means to make them well known through advertising. As a general rule, they are difficult to trademark. Successful surnames include Smucker's, Fudrucker's, Albertson's, Covey Leadership, and Franklin Quest. Successful names that include first names include Oscar Meyer, Fred Meyer's Mama Maria's, and Tony Roma's. The use of first or surnames often works well when linked with another identifying word. For example, Jone's Paint and Glass, Peggy's Bridal, Crawford Electric, and Knighton Optical. Be aware that such names often work locally, but not internationally, unless they are widerly recognized.
Telescoped or Alpha-Numeric names:

Some persons refer to names that combine numbers and letters as Alpha-Numeric names. Such names have worked well for companies such as Minnesota Mining and Manufacturing Company that telescoped its name to be the 3M Company. Other good examples are Food 4 Less, A-1 Steak Sauce, 9-Lives Cat Food, and 7-UP. (Other examples???) Many such names are successful because the numbers carry important meanings in clever ways.
Names with deviant spellings:

Nite skool, Krazee Kids, Kandy Korn, Peteet Neet School, tuff skins, Xtreme are all examples of deviant spellings that play with sounds. The rhyming and alliteration features of WriteExpress can help you find words with the desired sound combinations, but you provide the innovative spellings. Be sure that the deviant spelling appeals to your target consumer. What appeals to one group of consumers may just be silly to another. The advantage of such names is that they are memorable, but you may find them difficult to trademark if there is a similar-sounding trademark with a more conventional spelling.
Acronyms and Abbreviations:

Acronyms and abbreviations are effective ways to shorten otherwise long names and make them unique and memorable, particularly when the name is already known. Thus NRA is recognized as National Rifle Association, aol is America on line, and KFC is Kentucky Fried Chicken. Otherwise, the acronym or abbreviation must contain other information to carry its message. For example IHC Health Care, CNN News, or M & L Rentals. In some cases a clever acronym is introduced with the product as in US West's Directory Expert called DEX.
Place names:

The key is for the place name to carry the right associations. New York Deli, Philadelphia Cream Cheese, Chicago style pizza, San Francisco Sourdough, Kentucky Fried Chicker. Ficticious place names can also work if they have the right associations and are therefore memorable. Consider The Olive Garden Restaurant, The Attic, and The Terrace. If the nature of the business, service or product is not obvious from the name, you still have an advertising problem.
Alliterative or rhyming names:

Names with alliteration are those that have the same sound at the beginning of two or more successive words. Roto Rooter, Cellular Source, Peter Piper Pizza, Water World, and Bargain Basement are words that are memorable largely because they contain alliteration. The WriteExpress rhyming and alliteration features make up the world's most powerful tool for finding such names. While this is a very positive feature, don't let it lure you into being so creative that the name is counter productive.
Prestige names:

Names such as Nike, Sundance, Lady Di, and Pierre Cardin are all prestige names. Some are from foreign languages; others are the names of celebrities. One may expect that such names are rarely trademarkable. It is generally good advice to avoid them unless you have some legal control over the name.
4.

How long should the name be?
In naming businesses and services, lengthy names with three or more syllables in more than one word should probably be avoided. Minnesota Mining and Manufacturing Company was wisely reduced to 3M, and International Business Machines was reduced to IBM. If you are naming a product that will be on a retail shelf, the name should be short enough to fit on the retail box and be legible from several feet away. Selecting a name that tells the customer what the product is in only a few syllables is daunting but absolutely essential. After selecting possible names, test them with potential buyers to see whether they understand from the name what the product is. If they don't, find another short name until they do.
5.

Do the sounds in the name have the right appeal?
Your name should be easy to read, spell, and pronounce, and should reflect the quality of the thing named. It is best to avoid names with uncertain pronunciations. Part of the meaning of a word is colored by its sounds. Words that rhyme or have alliterative initial sounds may work well for some products but not for others. "Tiny Tots' Toys" may work well for children's products but such alliteration may not work well for medical supplies. Would you want to buy "comfy coronary catheters?" Certain sounds such as the vowels in tipsy and teenie weenie carry light, diminutive impressions, while the sounds in crunch and plop seem much heavier. Similarly, the sounds p,t,k,ch, j, a,u,o seem harder and more masculine than do l,m,n, ng, sh,s, i,e. The sounds v,f,z,s are generally associated with speed more than sounds such as p,t,b,d,l, and m. Some experts feel that the letters q,x,z,f, and u tend to evoke negative feelings. Of course Fudruckers and Compaq have used the sounds to their advantage. On the positive side, the letters a,b,s,t and m are reported to evoke very positive feelings. Being aware of such subtleties may help you narrow your choices.
6.

What associations should the name evoke?
Would "Bud Light" be as appealing if it were "Tiffany Light?" "Bud" evokes masculine associations and "Tiffany" evokes feminine ones. Notice that the difference is communicated as much by the sounds of the words as by the meanings. The sounds in "Bud" seem heavier than ones in "Tiffany." A recent fat substitute was given the name "olean," negating any notion of fat. Consider the positive associations with a name such as "Sunkist Oranges." Some names like Ajax or Mercury evoke powerful images from mythology. Others like Castmaster or Power Bait clearly appeal to the sport of fishing. The associations that your name evokes are extremely important and should appeal to the specific consumer you have in mind.
7.

What are the foreign language implications of the name?
Without checking foreign language associations of the word, someone at GM chose "Nova," for a Chevrolet model, probably hoping to evoke a star-like association. Only later did they realize that In Spanish, "no- va" means "it doesn't go." The incident has been a lesson for all who would name products for global consumption. Successful names with good foreign language meanings include "Nike," referring to the Greek goddess of victory, and "Taurus," meaning "bull," the second sign of the zodiac. Before settling on a name, be sure to check its possible meanings and associations in foreign languages. Foreign language dictionaries will help but will not suffice. Generally they will not contain profanity. Be safe by checking with native speakers.

8.How will I test the name?
As you narrow your name choices, involve only persons from the group who will be the consumers. Ask them what they think of when they hear the word you have chosen. You may also tell them what you think the name of your product or service, but don't dwell on it. Contact them on the following day and ask them what the name was. If several remember it, you probably have a good name. If virtually no one does, it's back to the drawing board. Other techniques include surveying consumers with a list of possible names for them to rank, interviewing consumers in the market place, and placing lists on bulletin boards and requesting responses. Also test your names for political incorrectness, negative associations, questionable meanings in foreign languages, and other connotations or associations that may render a name unwise. Remember, the name must be unique, distinctive, and memorable. And, before you use it be sure that the name will be free from legal problems.

9.How will the name appear in directories?
If you anticipate that much of your business will come from listings in the Yellow Pages, the Internet, or other directories, it will be to your advantage to have a business name that will be listed close to the start of the alphabet, because these lists appear in alphabetical order. Of course, highlighting, adding pictures, and using other attention-getting devices can help, but their effectiveness seems to be less when placed near the end of a list.

10. Can I trademark the name?
You will probably experience some frustration when you find that your favorite name is not legally available. Be sure you have three or four alternatives when you start your search from trademark availability. Initially, you may want to check trade journals, and directories such as the Yellow Pages to be sure your name is not being used. Most university libraries offer searching services so you can determine whether your name is already listed as a trademark. This initial search may save you time and money before you engage legal counsel. Be sure to check various similar or optional spellings for your name, because it can be denied if it is too similar to another established trademark. Large libraries will generally have books that deal with state and federal trademark laws. Trademark law can be complicated so you must get good advice on how to proceed.

Read More...

10 crucial questions when naming your business, product, or Web site.

1.

Who are my consumers?
You can't expect to sell to everyone, so define narrowly who you want to sell to and make the name appeal to that group. You need to know how the members of that group think. You will make your best guesses with your current knowledge, but you must be willing to discard some personal favorites when later testing shows that they don't work. Unfortunately, your first inclinations are seldom your best. Trust your testing.
2.

What am I naming?
The goal here is to give the product a name that has appealing associations. In all types of naming it is important that the name evokes the right emotions, associations, and images. In addition, if you are naming a product that will be on a retail shelf, the name should be short enough to fit on the retail box and be legible from several feet away.

If your business, product, or service is altogether new, you will generally want its name to communicate at a glance what it concerns. For example, business names (trade names) such as GENERAL NUTRITION, SPORTSMAN'S WAREHOUSE, BURGER WORLD, and PETSMART communicate immediately what is at issue. On the other hand, if you are naming an additional product in an established business, the product name need not necessarily communicate what it is. For example, it is not necessary for names such as Mustang, Thunderbird, Marboro, and Camel to communicate that they are cars and cigarettes, because the consumer knows what they are from the company names.
3.

What type of name do I want?
Names can be categorized in various ways. Some are surnames like Anderson Lumber Company, or Covey Leadership. Others are ordinary words combinations such as New Balance Shoes, or First Security Bank. Some names are coined words like Kodak, Nu Skin, Nytol, or Intel. Others such as Taurus and Nike have been borrowed from Greek mythology. Below are some of the types of names that you may consider:
Coined names:

The trend to coin business and product names is increasing, largely because they are quite easily trademarked. Names such as Nu Skin, Computune, and Envirocare are all recent coinages that communicate the types of businesses they are. Pentium is a well-known product name for Intel's fifth-generation product. A recent trend in coining names for cars has been to select a prestige two-syllable beginning, and end the name with "a." Consider "Maxima, Accura, Altima, Integra, Lumina, and others. Observe how the names of medicines tend to end in in, possibly to evoke an association with the word medicine: aspirin, penicillin, herpecin, corracidin, pamparin, and cholestin. And, we are all familiar with two-word names written as single words as in WordPerfect, Microsoft, and WriteExpress. Thus, coining names may be done in a number of ways, and coinages often follow trends. WriteExpress PowerNaming is especially designed to help you in this creative process.
Common Words with a Twist:

New Balance Shoes, WriteExpress Easy Letters, Out'n Back, All a Dollar, Wallpaper Warehouse, and Four Seasons Flowers are all business and product names that consist of common words in short, meaningful phrases. Each name is memorable because of the associations it evokes. Such traditional names are good but sometimes difficult to trademark.
Surnames and First names:

The current trend is to avoid the use of surnames unless they are well known or you have the means to make them well known through advertising. As a general rule, they are difficult to trademark. Successful surnames include Smucker's, Fudrucker's, Albertson's, Covey Leadership, and Franklin Quest. Successful names that include first names include Oscar Meyer, Fred Meyer's Mama Maria's, and Tony Roma's. The use of first or surnames often works well when linked with another identifying word. For example, Jone's Paint and Glass, Peggy's Bridal, Crawford Electric, and Knighton Optical. Be aware that such names often work locally, but not internationally, unless they are widerly recognized.
Telescoped or Alpha-Numeric names:

Some persons refer to names that combine numbers and letters as Alpha-Numeric names. Such names have worked well for companies such as Minnesota Mining and Manufacturing Company that telescoped its name to be the 3M Company. Other good examples are Food 4 Less, A-1 Steak Sauce, 9-Lives Cat Food, and 7-UP. (Other examples???) Many such names are successful because the numbers carry important meanings in clever ways.
Names with deviant spellings:

Nite skool, Krazee Kids, Kandy Korn, Peteet Neet School, tuff skins, Xtreme are all examples of deviant spellings that play with sounds. The rhyming and alliteration features of WriteExpress can help you find words with the desired sound combinations, but you provide the innovative spellings. Be sure that the deviant spelling appeals to your target consumer. What appeals to one group of consumers may just be silly to another. The advantage of such names is that they are memorable, but you may find them difficult to trademark if there is a similar-sounding trademark with a more conventional spelling.
Acronyms and Abbreviations:

Acronyms and abbreviations are effective ways to shorten otherwise long names and make them unique and memorable, particularly when the name is already known. Thus NRA is recognized as National Rifle Association, aol is America on line, and KFC is Kentucky Fried Chicken. Otherwise, the acronym or abbreviation must contain other information to carry its message. For example IHC Health Care, CNN News, or M & L Rentals. In some cases a clever acronym is introduced with the product as in US West's Directory Expert called DEX.
Place names:

The key is for the place name to carry the right associations. New York Deli, Philadelphia Cream Cheese, Chicago style pizza, San Francisco Sourdough, Kentucky Fried Chicker. Ficticious place names can also work if they have the right associations and are therefore memorable. Consider The Olive Garden Restaurant, The Attic, and The Terrace. If the nature of the business, service or product is not obvious from the name, you still have an advertising problem.
Alliterative or rhyming names:

Names with alliteration are those that have the same sound at the beginning of two or more successive words. Roto Rooter, Cellular Source, Peter Piper Pizza, Water World, and Bargain Basement are words that are memorable largely because they contain alliteration. The WriteExpress rhyming and alliteration features make up the world's most powerful tool for finding such names. While this is a very positive feature, don't let it lure you into being so creative that the name is counter productive.
Prestige names:

Names such as Nike, Sundance, Lady Di, and Pierre Cardin are all prestige names. Some are from foreign languages; others are the names of celebrities. One may expect that such names are rarely trademarkable. It is generally good advice to avoid them unless you have some legal control over the name.
4.

How long should the name be?
In naming businesses and services, lengthy names with three or more syllables in more than one word should probably be avoided. Minnesota Mining and Manufacturing Company was wisely reduced to 3M, and International Business Machines was reduced to IBM. If you are naming a product that will be on a retail shelf, the name should be short enough to fit on the retail box and be legible from several feet away. Selecting a name that tells the customer what the product is in only a few syllables is daunting but absolutely essential. After selecting possible names, test them with potential buyers to see whether they understand from the name what the product is. If they don't, find another short name until they do.
5.

Do the sounds in the name have the right appeal?
Your name should be easy to read, spell, and pronounce, and should reflect the quality of the thing named. It is best to avoid names with uncertain pronunciations. Part of the meaning of a word is colored by its sounds. Words that rhyme or have alliterative initial sounds may work well for some products but not for others. "Tiny Tots' Toys" may work well for children's products but such alliteration may not work well for medical supplies. Would you want to buy "comfy coronary catheters?" Certain sounds such as the vowels in tipsy and teenie weenie carry light, diminutive impressions, while the sounds in crunch and plop seem much heavier. Similarly, the sounds p,t,k,ch, j, a,u,o seem harder and more masculine than do l,m,n, ng, sh,s, i,e. The sounds v,f,z,s are generally associated with speed more than sounds such as p,t,b,d,l, and m. Some experts feel that the letters q,x,z,f, and u tend to evoke negative feelings. Of course Fudruckers and Compaq have used the sounds to their advantage. On the positive side, the letters a,b,s,t and m are reported to evoke very positive feelings. Being aware of such subtleties may help you narrow your choices.
6.

What associations should the name evoke?
Would "Bud Light" be as appealing if it were "Tiffany Light?" "Bud" evokes masculine associations and "Tiffany" evokes feminine ones. Notice that the difference is communicated as much by the sounds of the words as by the meanings. The sounds in "Bud" seem heavier than ones in "Tiffany." A recent fat substitute was given the name "olean," negating any notion of fat. Consider the positive associations with a name such as "Sunkist Oranges." Some names like Ajax or Mercury evoke powerful images from mythology. Others like Castmaster or Power Bait clearly appeal to the sport of fishing. The associations that your name evokes are extremely important and should appeal to the specific consumer you have in mind.
7.

What are the foreign language implications of the name?
Without checking foreign language associations of the word, someone at GM chose "Nova," for a Chevrolet model, probably hoping to evoke a star-like association. Only later did they realize that In Spanish, "no- va" means "it doesn't go." The incident has been a lesson for all who would name products for global consumption. Successful names with good foreign language meanings include "Nike," referring to the Greek goddess of victory, and "Taurus," meaning "bull," the second sign of the zodiac. Before settling on a name, be sure to check its possible meanings and associations in foreign languages. Foreign language dictionaries will help but will not suffice. Generally they will not contain profanity. Be safe by checking with native speakers.
8.

How will I test the name?
As you narrow your name choices, involve only persons from the group who will be the consumers. Ask them what they think of when they hear the word you have chosen. You may also tell them what you think the name of your product or service, but don't dwell on it. Contact them on the following day and ask them what the name was. If several remember it, you probably have a good name. If virtually no one does, it's back to the drawing board. Other techniques include surveying consumers with a list of possible names for them to rank, interviewing consumers in the market place, and placing lists on bulletin boards and requesting responses. Also test your names for political incorrectness, negative associations, questionable meanings in foreign languages, and other connotations or associations that may render a name unwise. Remember, the name must be unique, distinctive, and memorable. And, before you use it be sure that the name will be free from legal problems.
9.

How will the name appear in directories?
If you anticipate that much of your business will come from listings in the Yellow Pages, the Internet, or other directories, it will be to your advantage to have a business name that will be listed close to the start of the alphabet, because these lists appear in alphabetical order. Of course, highlighting, adding pictures, and using other attention-getting devices can help, but their effectiveness seems to be less when placed near the end of a list.
10.

Can I trademark the name?
You will probably experience some frustration when you find that your favorite name is not legally available. Be sure you have three or four alternatives when you start your search from trademark availability. Initially, you may want to check trade journals, and directories such as the Yellow Pages to be sure your name is not being used. Most university libraries offer searching services so you can determine whether your name is already listed as a trademark. This initial search may save you time and money before you engage legal counsel. Be sure to check various similar or optional spellings for your name, because it can be denied if it is too similar to another established trademark. Large libraries will generally have books that deal with state and federal trademark laws. Trademark law can be complicated so you must get good advice on how to proceed.

Read More...

Saturday, May 5, 2007

How to find out whether you're ready for startup.

Somewhere between scribbling your idea on a cocktail napkin and actually starting a business, there's a process you need to carry out that essentially determines either your success or failure in business. Oftentimes, would-be entrepreneurs get so excited about their "epiphanies"-the moments when they imagine the possibilities of a given idea-that they forget to find out whether that idea is viable.

Of course, sometimes the idea works anyway, in spite of a lack of market research. Unfortunately, other times, the idea crashes and burns, halting a business in its tracks. We'd like to help you avoid the latter. This how to on researching your business idea is just what you need to keep your business goals on track.
The Idea Stage

For some entrepreneurs, getting the idea-and imagining the possibilities-is the easy part. It's the market research that doesn't come so naturally. "It's a big red flag when someone outlines the size of the market-multibillion dollars-but doesn't clearly articulate a plan for how the idea will meet an unmet need in the marketplace," says Aaron Keller, an adjunct professor of marketing at the University of St. Thomas in neighboring St. Paul and a managing principal of Capsule, a Minneapolis-based brand development firm.

That kind of full-throttle approach can cost you. "Entrepreneurs are often so passionate about their ideas, they can lose objectivity," adds Nancy A. Shenker, president of the ONswitch LLC, a full-service marketing firm in Westchester, New York. "Rather than taking the time to thoroughly plan and research, they sometimes plow ahead with execution, only to spend valuable dollars on unfocused or untargeted activities."

Market research, then, can prove invaluable in determining your idea's potential. You can gather information from industry associations, Web searches, periodicals, federal and state agencies, and so forth. A trip to the library or a few hours online can set you on your way to really understanding your market. Your aim is to gain a general sense of the type of customer your product or service will serve-or at least to being willing to find out through the research process. "For example," says Shenker, "if you don't know if your product will appeal to the youth market, make sure you include a sample of that population in your research efforts."

Your research plan should spell out the objectives of the research and give you the information you need to either go ahead with your idea, fine-tune it or take it back to the drawing board. Create a list of questions you need to answer in your research, and create a plan for answering them. "Utilize experts in planning and conducting research sessions," Shenker advises. "They can recommend what type of research is most appropriate, help you develop statistically valid samples and write questionnaires, and provide you with an objective and neutral source of information."

The type of information you'll be gathering depends on the type of product or service you want to sell as well as your overall research goals. You can use your research to determine a potential market, to size up the competition, or to test the usefulness and positioning of your product or service. "If, for example, the product is a tangible item, letting the target audience see and touch a prototype could be extremely valuable," notes Shenker. "For intangible products, exposing prospective customers to descriptive copy or a draft Web site could aid in developing clear communications."
Analysis

When working with firms on brand development, Keller first looks at a business idea from four perspectives: company, customer, competitor and collaborator. This approach allows Keller to scrutinize a business idea before even approaching the topic of brand development. Here's what he looks at for each of the four issues:

1. Company. Think of your idea in terms of its product/service features, the benefits to customers, the personality of your company, what key messages you'll be relaying and the core promises you'll be making to customers.

2. Customer. There are three different customers you'll need to think about in relation to your idea: purchasers (those who make the decision or write the check), influencers (the individual, organization or group of people who influence the purchasing decision), and the end users (the person or group of people who will directly interact with your product or service).

3. Competitor. Again, there are three different groups you'll need to keep in mind: primary, secondary and tertiary. Their placement within each level is based on how often your business would compete with them and how you would tailor your messages when competing with each of these groups.

4. Collaborators. Think of organizations and people who may have an interest in your success but aren't directly paid or rewarded for any success your business might realize, such as associations, the media and other organizations that sell to your customers.

Another approach is to research is SWOT analysis, meaning analysis of the strengths of your industry, your product or service; the weaknesses of your product (such as design flaws) or service (such as high prices); and potential threats (such as the economy). "[SWOT] enables you to understand the strengths and flaws, [everything] from internal information such as bureaucracy, product development and cost to external factors such as foreign exchange rates, politics, culture, etc.," says Drew Stevens, a St. Louis professional speaker and consultant who works with entrepreneurs in researching and marketing their ideas. "SWOT enables an entrepreneur to quickly understand whether their product or service will make it in the current environment."

Whatever your approach to evaluating your idea, just be sure you're meeting the research objectives you've outlined for your product or service. With those goals always top-of-mind, your analysis will help you discover whether your idea has any holes that need patching.

Checking Out the Competition

Assuming your research process has helped you uncover your competition, you now need to find out what they're up to. Shenker advises becoming a customer of the competition, whether by shopping them yourself or by enlisting the help of a friend. "Visit their Web site and put yourself on their list," she says. "Talk to your competitor's customers, too-ask them what they like or don't like about your competitor's product or service. If you conduct formal research, include a question like 'Where do you currently go for that product or service? Why?'"

Your aim is to understand what your competition is doing so you can do it better. Maybe their service is poor. Maybe their product has some flaws-something you'll only know if you try it out yourself. Or maybe you've figured out a way to do things better, smarter, more cost-effectively. Find your selling point. It's going to be the core of your marketing program, if and when you're ready for that step. It's also going to be what sets you apart and lures customers your way.

After all this-the idea stage, analysis of the idea, competitive analysis-you might find that your idea (and not your competitor's, as you'd hoped) is the one with the holes. Does that mean you need to scrap the whole thing and resign yourself to life as an employee? "Not always," says Keller. "Sometimes it just needs to be reworked or retooled."

That can be disheartening if you've already spent X amount of hours in the idea stage, plus X amount of hours on market research-only to find that you're not quite ready to get started after all. But taking the time to refocus your energies and determine why your idea needs some tightening is the best predictor of future success. "No entrepreneur wants to hear that his 'baby' is flawed, but only by listening and reacting to feedback can he give his idea a chance for success," notes Shenker. "Ask yourself, 'Is this a weakness that can be overcome?' If you can't create true value for your customer and your business, then it's time to pick another idea to pursue."

Remember, though, that many ideas simply need some fine-tuning. Before you panic and start flipping through your idea books again, closely consider whether you can make this idea work. After all, there was a reason you thought of that idea in the first place. Some ideas that seem like they'll be total duds after doing a little research end up being great successes. "Ideas that seem like a flop are always interesting to me," says Keller. "Sometimes you look into an idea and find it was just luck-but many times, you find the original founder had some clear insight into the potential. That insight was his or her focus, and it seemed to lead them to success.


"I've seen many people launch ideas that I thought were beyond foolish," Keller adds, "but then I learned more about the idea, the customer and the vision-and realized the true risk being taken."
When Your Idea Is Ready to Go

The market research you've conducted thus far ought to be a good indicator of where you need to go next with your idea. One key factor to consider is pricing. You want to do it competitively while also considering what the market will bear. For products or services that have a close competitor, Keller advises pricing with respect to the competitive position. "Higher-priced positioning requires an idea with enough relevance and importance to customers to overcome the gap between your idea and the nearest competitor," Keller says.

The beauty of being in business for yourself is that you have the option to make changes at will-so if a pricing structure isn't working, you can alter it. "Price high to start-you can always drop the price down," says Keller. "You can never go up."

Shenker adds that you need to be sure your product or service is delivering enough value to command the price you set. If possible, test different pricing offers as you go, and determine what works best.

When you're ready to get started, be sure you're selling where your target market is likely to buy. "Your marketing plan and budget should include a well-crafted distribution strategy," notes Shenker. If you'll sell over the Internet, budget for media to drive new customers to your site. If you'll sell via retail distribution, you might need workers with industry experience to help you reach your target market.

Remember, too, that you can always seek help in this long, arduous process of bringing an idea to fruition. The Internet, your local library, the U.S. Census Bureau, business schools, industry associations, trade and consumer publications, industry trade shows and conferences, and new-product development firms can be invaluable sources of information and contacts. "It's just a matter of seeking knowledge from as many sources as possible," notes Keller. It's also a matter of putting your ego aside and being willing to create a business that will not only survive, but thrive. "If you have an idea, don't be afraid to refine it, retool it, rethink it," adds Keller. "The more you do before you launch, the less you'll have to do [afterwards], and the less painful the lessons tend to be."

Read More...

Wednesday, May 2, 2007

100 Greatest Ideas for Buiding the Business of your Dreams

Read More...