Northstar Thinktank

Alltop.com: Highly Organized Content

Spending time searching for relevant content online is something I am very familar with.

How many hours have I wasted fumbling around search engines, targeted sites, and the whole confused mess of content that's "out there"? I would estimate that I've wasted hundreds of hours sorting through this maze...

Apparently Guy Kawasaki and his team over at Nononina, Inc. were having the same problem.

So, like all great entrepreneurs do, Guy and his team went out and created a solution; Alltop.com.

www.alltop.com is a very well organized site that aggregates relevant websites within targeted categories. Naturally, I gravitate to the business section: Alltop Small Business

"Alltop is deceptively simple. The site gathers up the best suggestions from the most active social web users and compiles links into a simple, clean discovery space. For many, Alltop will replace their RSS readers." Chris Shipley, the chairman of Guidewire Group.

Go take a look and see if you can't find some areas of interest...you'll find that the site's organization, navigation and relevance are as good as it gets online.

Check out these great post for more information about this topic:

New Alltop Blog "Dashboard"

Catch Some Buzz from Alltop

Announcing (Formally) Alltop

Alltop is a One Stop Blog Shop

Entrepreneurial Instincts

I was talking with a friend last night about a billionaire entrepreneur who started two companies. He sold his first one for $600 million. He sold the other for $750 million.

That's no coincidence. So called "serial entrepreneurs" have some common entrepreneurial instincts that set them apart from the average business owner.

These entrepreneurs assess business opportunities with a natural instinct.

Here are just two of these instincts (they're closer to sicknesses, really!).

Compare yourself; do you possess them?:

The Due-Diligence Instinct: Natural, instinctive entrepreneurs have an innate tendency to assess businesses constantly. As customers or observers they'll run random businesses through their own due-diligence tests. For example, in a restaurant, while silently looking interested in the dinner conversation, they're actually calculating how much their meal cost. Then, they're figuring an average plate price for the entire location and calculating how many patrons might dine on an average night. From there, they can guesstimate costs and a few other things about the success of the business. Once while waiting in line for the roller coaster atop of the New York, New York hotel in Las Vegas, I guesstimated that based on the $12 per ride charge and the amount of people still in line at 1am (about 100), the ride was bringing in at least $13 million a year. Not bad. Whether my figures were right or wrong isn't the point...the point is...I was standing in line trying to figure out the business model--at 1am in Las Vegas!

The Solution Instinct: Natural, instinctive entrepreneurs have an innate tendency to think about how to solve problems. They are always looking while traveling or while they're using some widget or service. They're naturally thinking about how something can be done better or what might be lacking about a product, process, or system. Recently I read an article about a company that has come out with a new hanger to sell to dry cleaners. It's sturdy, durable, cheap...and it's made of paper. A high volume, environmentally friendly product with a highly targeted market. They're eliminating waste and pollution by saving billions of metal hangers from being thrown in the trash each year. Their product is sweeping the nation. It's a classic example of how an instinctive entrepreneur finds incredible new opportunities that are staring at millions of people every day--but it takes the solution instinct of a great entrepreneur to see it.

"It Just Seemed Like A Fun Thing To Do"

At our Northstar Thinktank office here in Austin, TX we have a team of business experts who work hand-in-hand with business owners. These experts give advice, guidance, and insight as our clients navigate through the business ocean.

Through many years of experience we've accumulated a lot of valid reasons why an entrepreneur should or shouldn't jump into a new venture.

Over the weekend I read something that made me realize that there is yet another great reason to jump into the fray...

In the November 2007 issue of Business Week the founders of Threadless.com were featured. In the article, Threadless: From Clicks to Bricks, the founder and CEO Jake Nickelly was asked why they decided to transition from being a completely online business to a brick-and-morter retail business as well. His answer struck me--and not because it's a sound business strategy, per se, but because it underscores a valid reason for doing business in the first place. He said, "We really had no good reason to open a store. It just seemed like a fun thing to do."

That's something I needed to hear.

Your business should be something that's fun to do.

From now on, the business experts at Northstar Thinktank will make the discussion of "having fun in business" a standard topic.

I mean really, as entrepreneurs, why make the sacrafices we make if it isn't fun? It's just got to be fun and enjoyable if we expect to reach the goals we seek.

Check out these great blogs for more information about this topic:

3 Ways to Get Better Results in Your Life

14 Step Guide to Finding the Perfect Career

Raise Business Capital: Not Always The Best Solution

I have the opportunity to hear the business challenges and success stories of entrepreneurs every single day. Most of what I hear has to do with the business challenges, because most companies are struggling with challenges in their business.

So, we have discussions about how these business challenges can be addressed. During these discussions there's a recurring comment that falls from the lips of almost every struggling entrepreneur: "I just need money. If I could just raise business capital, we would be absolutely golden."

The reality is that in most cases, having more money isn't always the best solution. That's because the real problem isn't about having more money to spend, the problem is that the business model isn't sound or the management team isn't operating effectively.

The fact of the matter is that thousands and thousands venture capital financed companies end up in failure despite their (temporarily) deep pockets.

Trust me, I really do understand the temptation to believe that money in the bank is the ultimate solution to every problem. I've said it before, "...Oh, the things we could do with a little more money!"

That kind of thinking is a dangerous trap.

Here's my bullet-point lecture on changing that kind of thinking:

• If your business model is really worthwhile and there is true demand, then you will either grow naturally with very little capital or when you talk to investors they will immediately want to give you money.
• If your business model was working before; you still have customers, you still have revenue, you still have a viable product or service, then there are still multiple solutions that are better than raising capital--start by slashing costs.
• If very few people are interested in buying your product, or worse, if only your family says what you are doing is wonderful; then get over it, let go, and move on.
• Forget about the stories of the guys who come up with a neat idea, raise gazillions in a couple months, and sell out for billions in 3 years. That really can't be planned and aiming for that will hinder the perspective that you need as a successful entrepreneur.
• The best early stage companies are able to show real proof of concept without spending much money at all.
• If you can prove through modest, shoe-string testing, that your business model really works, then you will have no problem raising money--if you need it.
• If you are seeking business capital to solve a problem but you still haven't worked many days all through the night to find a solution...you're not deserving of investment capital anyway.

How To Find A Great Business Idea

In a recent video I prepared to our large list of Thinktank subscribers I talked about the secret of taking action.

You get an idea.  You start taking action on it.  You make adjustments and discoveries along the way.  And voila!  As a result of your desire, focus, vision, and action, mixed in with a little hard work along the way, you create the next Microsoft!  Sounds simple, huh?

If it were really that easy, most people would own their own business.  And most people don't.

The action part is where most people who want there own business get stuck!

Why?  Because they don't know what they want.

You've probably heard the saying, "You can't move toward a goal if you don't know what you want."  I think you can!  And here are a few ideas to help you do just that!

Lots of people focus on what "business" would be "right for them."  You could go through the Yellow Pages and look at all of the traditional businesses as well as the more obscure... and you just might find something that fits.

But I would suggest that you think about what problems people have that you could help them solve, or what goals you could help people achieve.

People will pay you dearly to help them solve their problems or reach their goals.

Just flip on QVC or the Home Shopping Network any day of the week, any hour of the day, and you can watch people spend money on miracle cleaning products, clothes steamers, hangers that reduce their closet space by one half, or software to help them speak a foreign language!

Search the Internet for information about a particular problem, challenge or interest.  What do you find?  Books, e-books, subscriptions, CDs, DVDs, and MP3s about how to do it, and people including myself are forking out lots of money for it.

Don't wait around for the perfect time to get started with a great business idea.  Get started right now by thinking about problems that you can solve for yourself or other people if you only had the right product or information.

That's how great companies are born.

Check out some other great blog posts on this topic:

Business Quote of the Week
Give Away Your Business Ideas
Most Profitable Small Business Ideas
How to Start Business

The Entrepreneur's Dilemma

Growing a business is tough business! There are so many distractions and tempting off-ramps. The real trick is simply maintaining focus.

As entrepreneurs we all fall into these business traps from time to time. We forget what it is that got us into the business of entrepreneurship in the first place and that creates what is known as "The Entrepreneurs Dilemma".

Can you easily recognize when you're caught in this subtle trap? This is something you need to be able to identify easily.

Here's some useful insight on this topic:

Check out these great posts for more information on this topic:

Quit Coffee to Reduce Procrastination

5 Reasons You Procrastinate and How to Overcome Them

7 Habits of Highly Successful Small Business Owners

Tips to Staying Motivated While Working From Home

"No Surprises, Jeff."

About 8 years ago I received some of the best business advice I've ever been given.

I had just raised $10 million from Venture Capitalists. My attorney and I were preparing for my first board meeting as Chairman and CEO. I had 4 demanding VC's on the board, and we didn't have much margin for error. (By the way, one of the best ways to avoid getting slammed by investors is to make sure you've set yourself up to Beat Projections--go read that link!)

As we finished our preparation, she said to me, "I have one piece of advice for you as you manage this Board. No surprises, Jeff."

She went on to explain that most entrepreneurs, and almost every human being for that matter, have a terrible tendency to delay the delivery of bad news. Until it's too late. Until everyone is shocked, surprised, and sour.

She said, "Jeff, if things aren't going well, if you see problems on the horizon, then you must let your investors know about it as soon as possible. I promise that you'll earn their support and gain credibility with them. And you'll uncover solutions from them....before the problems are too large to fix."

I've taken that advice and it's served me well on many levels. In every possible area I try to uncover the truth about what's not working (or what really is working) and expose it immediately. That goes for key personnel, with marketing projects, business plans, financial processes, and on and on.

Successful entrepreneurs see the wisdom in acknowledging what's not working and doing so as quickly as possible. Then, disclosing it to those who are involved. Even at the expense of discomfort, disappointment or embarrassment.

This approach puts the pain front-and-center and gets everyone in the "real world". Knowing the hard truth about where your business really stands at any given moment is crucial.

Most failed companies or programs can trace their failure back to a critical point where some painful reality about their business departed from view. Bad news was muzzled and instead, positive reports, feel-good optimism, and all-comforting hope carried the day.

They say "hind-sight's 20/20". That's true, but it's also a cop-out. An honest evaluation of real time results is close to 20/20 also. And operating effectively in the here and now is where great entrepreneurs rise to the top. The problem is, most entrepreneurs don't have the stomach to face the hard truth at the very moment it comes to light.

The sooner you can learn to embrace and communicate the truth about your business...and that means the good, the bad, and the ugly, the sooner you'll ensure a higher likelihood that your business will become a success.

Remember, "No Surprises."

Check out these great posts to find out more about this topic:

Honesty in Business - Does It Pay?

Honesty and Business - The Way I Like To Do It

Truth: How Great a Virtue Is It In Business?

Girl Power Fuels WhateverLife.com

Entrepreneurship is great because there are no limits.

Ashley Qualls, just 17, has built one of the top websites in the world, attracting over 7 million unique visitors each month. That's better than CBS.com, Britannica.com, and AmericanIdol.com!

Even better, she's already earning about $100,000 per month!

In a classic case of providing a useful solution to a problem experienced by millions, Ashley has figured out how to cash-in on the Internet. This month, Ashley's story was featured in Fast Company. That's just the beginning of the publicity that she's sure to get as her trendy site, www.whateverlife.com continues to take flight.

She had the right idea at the right time. Chuck Salter of Fast Company explains what the site is all about, "Eager to customize their MySpace profiles, girls cut and past the HTML code for whateverlife layouts featuring hearts, flowers, celebrities, and so on onto their personal page and--presto-- a new look. Think of it as MySpace clothes; some kids change their clothes nearly as frequently. 'It's all about giving girls what they want,' Ashley says."

Timing, a great idea and a focused marketplace (12 to 19 year old girls with an estimated buying power of $87 billion) layed the foundation for this site to succeed. Add in the necessary ingredients of a well designed and tightly packaged website with a smart, determined young entrepreneur, and voila! another great company is born.

Check out these great posts for more information about this topic:

Being a Young Entrepreneur

Diary of a Young Entrepreneur - Filaments and Fame

"Teenager Let The Internet help You Become A Young Entrepreneur"

Why It Pays To Give Your Stuff Away

In the October 2006 edition of Business 2.0, Katherine Heires outlined 9 great tips on how to profit by giving your products or services to your future customers:

Once upon a time, in the bad old days of business, giving away a product without charge was unheard of.

Adobe did it with its PDF reader in 1994, Macromedia with its Shockwave Player in 1995. Both became the industry standard, and those companies were able to make money by selling the products’ authoring software.

In these days of Web 2.0 services that rely on quick customer adoption, the strategy has become so common that VCs have coined a term for it: freemium.

The lucrative flipping of the companies behind Blogger, Flickr, MySpace, and Skype—all of them free services that offer a premium component—has led to hundreds of imitators….we’re talking about companies like Six Apart, which offers its LiveJournal blogging platform for free and has sold 2 million of its customers a premium version, which costs $20 for a one-year subscription…

How can you make a premium service soar? Here are nine tips from the venture capitalists and entrepreneurs.

1.       Have a product or service that truly stands out. Its performance, ease of use, and reliability should be superior to those of current offerings.

2.       Know your upselling plan from the beginning. Make sure you have at least one paid, add-on premium service up your sleeve. Better yet, have more than one.

3.       Once you’ve decided that a product will be given away for free, don’t change your mind. If you make changes you risk alienating customers accustomed to getting your product for free.

4.       Access to your product should be just one click away. The fewer time-consuming plugins, downloads…the better.

5.       Make sure the major bugs have been exterminated.

6.       Harness the collective intelligence of your users…customer suggestions can help speed up product improvements or inspire ideas for premium services.

7.       Keep improving the product to give users more reasons to stick with it.

8.       Identify a range of revenue sources…MySQL makes money from customer service as well as from fees charged to firms that redistribute the software.

9.       Timing is everything. Make sure that the revenue from your premium service soon covers the cost of your free service. Otherwise, cut your losses and move on to the next startup.

Check out these great blogs for more information on this topic:

Offers that Increase Profit and Generate Inquiries

Music Test: Can a Firm Profit from Free Music?

Why Giving Away Your Services for Free Will Get You Business

3 Tips to Make Viral Marketing Work for You

Our Brother, Greg Chavez, Wins American Inventor!

Wow!

Our Big Brother really did it. We are so proud of him!

He is a great example of remaining intensely focused on an entrepreneurial dream. For 15 years he stuck with it. Most hopeful entrepreneurs lose interest after a few failed attempts...not Greg. He simply refused to let this idea fade away. He knew it had merit, and he was right.

Greg rolled the dice in a big way by choosing to go on a show like this. It was truly an unorthodoxed and risky approach to launching a business. But he went with his gut.

He felt certain that this approach would in fact pay off for him.

Last night it paid off in a big way. A million dollars and a distribution deal...all on prime-time TV!

Greg and all of us are really thankful to the millions of viewers who supported him with their votes, email, comments, and well wishes.

For those of you that missed it...here are Greg's final 3 segments from last night's show:

Check out these great post for more information about this topic:

Loic Le Meur's Ten Rules For Start Up Success

5 Habits of Millionaires