Successful Startup 101 Magazine - Issue 9

by Tabitha Naylor

  We can laugh about that passage now; but think about it, in 1885 the telephone was new technology and nobody had any idea how to use one. In fact, even after the telephone had been demonstrated, there was not universal agreement that it had any immediate practical use. The telegraph and other communications options were working just fine, thank you very much.

  Today, many organizations have tossed out the owner’s manual as the ability to immediately start using a device or application without instructions is a feature of User Experience (UX) and User Interface (UI) design. However, judging by the number of “For Dummies,” and other how-to books and videos it’s apparent that not all consumer-focused UX/UI design is intuitive. Or for that matter, that the target audience can visualize the new product or service helping them achieve their goals or solve problems. After all, if the product doesn’t align with the customer’s needs and expectations then what’s the point?

  President Rutherford B. Hayes to Alexander Graham Bell in 1876 on viewing the telephone for the first time:

  “That’s an amazing invention, but who would ever want to use one of them?”

  “Experiences” Create Emotional Events that Accumulate Over Time

  A customer need exists because customers are not being satisfied by either current products offered, or alternatives. And being customer-focused, you want to sell your customers what they are asking for. But what would it take to convert people who aren’t customers into customers? And what about B2B situations where the customers (buyers) and users can be different people? When should risks be taken to let pure innovation step forward? Because in today’s economy, getting the phone to ring is no laughing matter for a start-up or small business owner.

  “If I had asked people what they wanted, they would have said faster horses.”

  Henry Ford

  The user experience is interwoven with the total customer experience. And “experiences” create emotional events that accumulate over time. Here are three points to consider as you strive to create your desired customer experience.

  1. Go back to your marketing 101 course material and review the chapter on Product Life Cycles. The telephone, television and internet are like living organisms. They are born, they live, and at some point they’ll die, or morph into something quite different. The early-market adopters have the ability to visualize usages and view new offerings for their potential advantages. During the introduction stage, many potential buyers must be made aware of the product’s features, uses, and advantages. Digital natives do not represent your free pass through the introduction phase. While they may have a comfort level with technology that doesn’t guarantee they get it. Finally, early-market buyers are generally willing to endure the inconveniences that come with being first-generation customers. But you need to listen to them carefully when they point out your inadequate documentation and missing functionality.

  2. Also in your marketing 101 material is a chapter on buyer behavior and motivation. There is probably a section on Maslow’s hierarchy of needs. In short, what motivational appeal are you going for across your customer interaction points? This won’t be easy because touchpoints include stores, telephones, mail, web and every one of those new social media platforms just to name a few. Consumers generally want convenience, freedom of choice and consistency across those channels and touchpoints so you have your work cut out for you.

  3. Are you presenting facts and figures, or telling a story? Related to buyer behavior and motivation is the fact that people respond to words and pictures in much the same way that they respond to real happenings. We are attracted to stories because we a social creatures. Storytelling has the potential to evoke strong responses to help persuade and change consumer behavior in your favor.

  About the Author

  Alan See is Principal and Chief Marketing Officer of CMO Temps, LLC. He is recognized as a most influential CMO by Forbes, Social Media Marketing Magazine and CEOWorld Magazine, as well as a Top 1% Influencer by Kred. Alan is an active blogger and frequent presenter on topics that help organizations develop marketing strategies and sales initiatives to power profitable growth. Alan holds BBA and MBA degrees from Abilene Christian University.

  How to Avoid Common Startup Blunders

  Entrepreneurs bring approximately 543,000 new business ideas to fruition every month, transforming and evolving the consumer landscape with everything from specialty grocery stores to jewelry shops. But with the average cost of starting a new business burning a $30,000 hole in most owners’ pockets, cutting costs without cutting corners can be a major challenge for both experienced retailers and industry newcomers. Despite arguments that for how critical public awareness is for retail success, allotting marketing dollars from an already limited budget can seem a stretch for many entrepreneurs.

  That small business struggle - of managing your bottom line while being conscious of the proactive steps required to get ahead - was the inspiration behind sales and marketing expert Tabitha Naylor’smarketing consultancy practice and business advice site, SuccessfulStartUp101.com.

  MEET THE EXPERT:

  Tabitha Naylor, marketing pro and founder of 

  SuccessfulStartUp101.com.

  “Over the years of speaking with business owners I came to recognize that many operators end up making the same mistakes as their peers,” says Naylor. “It doesn’t matter where they are geographically, what niche they’re in, it’s just human nature that, unfortunately, we end up making common mistakes that others already have experienced and that end up costing us in the long run.”

  The economic feasibility of startups and small shops requires creativity, perseverance, and perhaps a little insight from industry peers when it comes to critical business components, like marketing. Blogging, social media, and a web presence to match the feel and sophistication of your physical storefront are just a few of the many tips Tabitha shared with us in our recent Podcast series on building your small business while avoiding common start up pitfalls. Listen to the full podcast below. You can also jump ahead to key talking points by referencing the index below, or click over to the full transcript.

  1:10 About SuccessfulStartup101.com

  3:55 Defining modern day marketing

  6:15 What differentiates inbound and outbound marketing

  9:18 How small businesses can incorporate inbound marketing into their business strategies

  10:25 Why ROI is important in marketing, and other helpful metrics retailers should be aware of

  12:45 Simple ways to increase ROI

  15:35 Tips on common outbound marketing approaches

  17:00 Top tricks for accurately measuring ROI

  17:55 What should be on every business owners’ startup checklist

  This has been an installment of Kimco Realty’s StoreFront, an interview series with leaders of successful retail businesses. For more interviews, visit the StoreFront page. To learn how you can be featured, email us. We’d love to hear from you.

  The 10 Most Reliable Ways to Fund a Startup

  By Martin Zwilling

  One of the most frequent questions I get as a mentor to entrepreneurs is “How do I find the money to start my business?” I always answer that there isn’t any magic, and contrary to popular myth, nobody is waiting in the wings to throw money at you just because you have a new and exciting business idea.

  On the other hand, there are many additional creative options available for starting a business that you might not find when buying a car, home or other major consumer item. If you have the urge to be an entrepreneur, I encourage you to think seriously about each of these, before you zero in on one or two, and get totally discouraged if those don’t work for you.

  Of course, every alternative has advantages and disadvantages, so any given one may not be available or attractive to you. For example, professional investors put great priority on your previous experience in building a business, and they expect to own a port
ion of the business equity and control for the funds they do provide. These are tough for a first-time entrepreneur.

  Thus it is always a question of what you qualify for, and what you are willing to give up, to turn your dream idea into a viable business. Here is my list of the 10 most common sources of funding today, in reverse priority sequence, with some rules of thumb to channel your focus:

  10. Seek a bank loan or credit-card line of credit.

  In general, this won’t happen for a new startup unless you have a good credit history or existing assets that you are willing to put at risk for collateral. In the U.S., you may find that the Small Business Administration (SBA) can get you infusions of cash without normal backup requirements. 

  9. Trade equity or services for startup help. 

  This is most often called bartering your skills or something you have for something you need. An example would be negotiating free office space by agreeing to support the computer systems for all the other office tenants. Another common example is exchanging equity for legal and accounting support.

  8. Negotiate an advance from a strategic partner or customer. 

  Find a major customer, or a complimentary business, who sees such value in your idea that they are willing to give you an advance on royalty payments to complete your development. Variations on this theme include early licensing or white-labeling agreements.

  7. Join a startup incubator or accelerator. 

  These organizations, such as Y Combinator, are very popular these days, and are often associated with major universities, community development organizations, or even large companies. Most provide free resources to startups, including office facilities and consulting, but many provide seed funding as well.

  6. Solicit venture-capital investors. 

  These are professional investors, such as Accel Partners, who invest institutional money in qualified startups, usually with a proven business model, ready to scale. They typically look for big opportunities, needing a couple of million dollars or more, with a proven team. Look for a warm introduction to make this work.

  5. Apply to local angel-investor groups. 

  Most metropolitan areas have groups of local high-net-worth individuals interested in supporting startups, and willing to syndicate amounts up to a million dollars for qualified startups. Use online platforms such as Gust to find them, and local networking to find ones that relate to your industry and passion.

  4. Start a crowdfunding campaign online. 

  This newest source of funding, where anyone can participate per the JOBS Act, is exemplified by online sites such as Kickstarter. Here people make online pledges to your startup during a campaign, to pre-buy the product for later delivery, give donations or qualify for a reward, such as a T-shirt.

  3. Request a small-business grant. 

  These are government funds allocated to support new technologies and important causes, such as education, medicine and social needs. A good place to start looking is Grants.gov, which is a searchable directory of more than 1,000 federal grant programs. The process is long, but it doesn’t cost you any equity.

  2. Pitch your needs to friends and family. 

  As a general rule, professional investors will expect that you have already have commitments from this source to show your credibility. If your friends and family don’t believe in you, don’t expect outsiders to jump in. This is the primary source of non-personal funds for very early-stage startups.

  1. Fund your startup yourself. 

  These days, the costs to start a business are at an all-time low, and over 90 percent of startups are self funded (also called bootstrapping). It may take a bit longer to save some money before you start and grow organically, but the advantage is that you don’t have to give up any equity or control. Your business is yours alone.

  You can see that all of these options require work and commitment on your part, so there is no magic or free money. Every funding decision is a complex tradeoff between near-term and longer-term costs and paybacks, as well as overall ownership and control. 

  With the many options available, there is no excuse for not living your dream, rather than dreaming about living.

  About the Author

  Martin Zwilling is the Founder and CEO of Startup Professionals, a company that provides products and services to startup founders and small business owners. He writes a daily blog for entrepreneurs, and is also a regular contributor to Forbes, Harvard Business Review, Business Insider, and other business information sites. He recently released his first book titled "Do You Have What It Takes To Be An Entrepreneur?" He can be contacted directly at marty@startupprofessionals.com.

  * This article originally appeared on Entrepreneur.

  5 Lessons the Special Forces Taught Me about Business

  By Michael I. Kaplan

  Last month I had the pleasure of speaking at a Wounded Warrior Project workshop on business and entrepreneurship in Tampa, Florida. During our question and answer session a young veteran made a statement that I found incredibly interesting and served as the inspiration for this article.

  The gentleman – a US Army veteran who served as a sniper instructor and team leader – prefaced his question about resume writing with the following statement: “I was an infantry team leader and a sniper instructor, which doesn’t have any real value in the corporate world. So, I wanted to know if you could tell me how …?”

  Stop right there. I vehemently disagree.

  Veterans entering the civilian workforce have to understand that their resumes should actually reflect much more than hard skills and transferable skills; they have to reflect and promote the benefits of life experiences that will prove to be “mission critical” to prospective employers. Further, those benefits need to be communicated to prospective employers effectively.

  More importantly, it’s our responsibility as military veterans to educate Corporate America to this fact as well. Not sometime in the future, but now.

  My message to civilian employers and aspiring veteran job-seekers is rather straightforward. While you may not immediately see a direct correlation between military training and the job in question, be advised that those experiences have created a mindset that’s directly relevant to succeeding in any business environment.

  Consider the 5 following lessons that prove this fact to be true.

  1. Planning is essential, but contingency plans are critical.

  In the military we rely on the Operation Order to guide or missions, hoping that the intelligence data our mission is based on is accurate and timely. We plan, we train and we prepare to execute the mission flawlessly. We’re inserted into the area of operation and beginning our movement to the target when our team leader suddenly exclaims, “WAIT … there’s not supposed to be a river here.”

  When veterans come face-to-face with Murphy’s Law, they can adapt and overcome. They have contingency plans that allow them to think and react quickly. They didn’t get this ability from reading a book.

  2. 360-degree awareness gets the team home safely.

  The ability to be completely aware in hostile and non-permissive environments saves lives in combat situations. There’s no room for “I should have seen that coming” when it comes to explosive devices or rifle barrels protruding from windows in buildings.

  Veterans with this experience have command over their business environment. They walk into offices and immediately scan the walls for informative plaques, and guide introductory conversations after noticing a lapel pin or a class ring on the hand they shook. They seal deals and get the team back successfully.

  3. Wait for the best shot, not the perfect shot.

  In sniper school we’re trained to patiently wait for our shot, unaffected by our environment. When the target presents itself, we act: range it, dope it, scope it and pull the trigger. We’d like a perfect shot, but we know that if we hold the scope on target too long muscle fatigue sets in and our scope begins a figure-8 wobble. W
hen that happens, we missed our opportunity.

  Veterans in the civilian workforce hope for a perfect outcome, but they’re not afraid to execute when ready and make course corrections along the way if needed. They don’t suffer from “paralysis by analysis,” and they certainly don’t succumb to “deer in the headlights” syndrome. They’re doers and fivers.

  4. Know when to advance, stand down and retreat.

  In our modern age of special operations warfare, small teams of highly specialized personnel with a high degree of autonomy are tasked with successfully executing tactical operations with the hope of having a strategic impact. We’ve been trained to exercise good judgment: we know when it’s right to execute, and we know there are times when the situation requires us to quietly stand down and retreat unnoticed.

  Veterans in the civilian workforce don’t let pride and ego override this reality. When a meeting is going badly they know how to gracefully end the conversation and exit with dignity. When contract negotiations stall, they have the judgment to know when to maneuver to a successful conclusion and when to stand down for another opportunity. They didn’t obtain this critical life skill in a classroom.

  5. Individuals are strong, but teams are powerful.

  Special Operations personnel are the most well-trained and highly lethal individuals on this planet. We also know that despite our strengths we have to sleep, and in a hostile environment that would be impossible were it not for the other members of the team remaining awake and alert. When we execute our missions, we’re as focused on the safety of the team members to our right and left as we are on the mission in front of us. As a cohesive team, the effectiveness of our combined individual skills increases exponentially.