The Collective-E Blog
The formula (if there is one) for getting funded, proof in point--Foodspotting
You have great idea and you just know it will be huge, is it possible to get funded...especially as a first time entrepreneur? Never say never, but as David Ronick, founder of the newly launched www.upstartbootcamp.com says "Generally speaking, if a first time founder wants money from sophisticated angels, they need to at least have a product launched - and ideally some positive indications from customers. Until then, they'll probably have to bootstrap and/or raise friends/family capital."
In a nutshell, here is the formula.
Traction + Revenue (Potential) = Seed Funding
Example: Foodspotting.com is the quintessential funding story. Started as a very very simple idea, you basically take and upload pictures of restaurant food to the website, you can do this on the website or through their iPhone app. In a few short months with a very lite version they had 15k uploads and then launched a more robust product and with almost 100k uploads were able to secure $750k in seed financing without much, if any, revenue. I am sure that Foodspotting has a ton of ideas, phases and strategies for expansion, but they have a strong team and did a great job of staying focused. The next step will be another round of financing or acquisition. Read more about Foodspotting on TechCrunch >
The key is keeping the initial “beta” launch as simple as possible and focus on traction, plan to add bells and whistles and team members as you get additional funding. Also, when you get that seed money continue to keep a bootstrapping mindset, $750k does not go a long way.
WEEKEND READING: WSJ Says Entrepreneurs Seeing Rise in Demand For Custom Made Goods
We are always looking for business models that work, and to me this is good news--it is a way to compete with the big guys if you have a special skill or talent for creating customized products...or even experiences. It seems that consumers, who may have less money to spend, would rather spend their money on something really special. This article in the WSJ explains, from Chocolate to furniture to barbies, people are having fun creating something especially for them!
Gilt City versus Groupon, the big differences in business model that you should understand for your business
As big player Gilt recently jumped into the "deal a day" with Gilt City, there are some major differences with Groupon and some of the other "deal a day" offerings that you should know about. Awhile ago we did a story on Groupon interviewing some of our members about their experiences, one thing I learned is that there is a certain element of impulse purchase with these deals, in fact, yesterday in the very interesting PluggedIn Venture Ecommerce Roundtable one panelist estimated that only 40% of these "Groupons" are actually redeemed. How Groupon works is that after the deal they write you a check, so both Groupon and the business are benefiting by the 60% of people who buy but don't show up.
So how is Gilt City different? There is one huge difference that you should know about. Gilt does not pay the business or vendor until AFTER the customer redeems the voucher. That means, you don't get one big upfront check, you get paid only after you get the voucher. That means that Gilt City reaps the benefits of the difference between paid and redeemed.
So why would you do Gilt City over Groupon or the others? I spoke with one member who had an experience on Gilt City and she said that she did it for the exposure, Gilt City is more upscale than the others and has an amazing and huge list. Her "deal" did sell out within hours, she was allowed to choose the quantity that would sell (also a different feature than Groupon who sells as many as possible within the time period, Gilt City allows you to limit the inventory) and sold out her 150 vouchers. She said that she won't know for a year how many redeem and that the process for her employees is a bit grueling, because they need to specially track and report the redemptions. She is not sure if she will do it again.
Why You Need Everything Google In Your Business
This post is a long time coming - and I'm really excited to profess my love for Google once again! Ready?
I'm always talking about Google and why it's so amazing... and why Google Business has made my business so much better by increasing productivity - and simply keeping me (and my team!) organized. Awhile back I wrote a blog post for my partners and members at Collective-E - on basic Google Mail and how their filtering rocks. And now I'm going to expand and explain that there is life after the free Google Mail (aka Gmail). And it gets much, much better than the basic Gmail. Brace yourself!
First, let's start with your business domain. I'll use http://www.ChelseaMoser.com for an example.
A good business practice is to use an email platform that is branded to your business. It's just good business practice in general. But, like most of us, we're hooked on how awesome Google Mail/Gmail is. We love how it works, the bells and whistles... the whole kit and kaboodle. But, of course, you don't want your business email accounts to end in @gmail.com. It just looks a little shady. Especially in this crazy spam world. Who knows if you're real - or if you're really running a REAL business.
I know there are ways around this by still being able to use your free Gmail account. But they are quick fixes. You want the real deal, trust me. I'm sure you get my drift.
Well, if you haven't heard already, Google has a solution. Google Business Apps allows you to take your domain (http://www.ChelseaMoser.com) and utilize the Google Platform for your email. Same look and feel as Gmail, you can use your own domain - and SO much more.
I run multiple business platforms - and all of my domains are connected with Google Business. So when you see Chelsea@TheNodak.com or Chelsea@ChelseaMoser.com or Info@SolamarMarketing.com - yep, all Google Mail. And it's not because I set them up in the basic Gmail - it's because I'm using Google Business Apps. The Cadillac of Gmail.
Today, more than two million businesses run Google Apps.
Why?
Well, their features. Moreover, the power behind their applications - and how they allow you to run a business by being organized and efficient through your inbox. Just to name a few gerneral things that make Google worth the switch:
1) It can work with any size business
2) The power behind the applications (I'll get to this in a second)
3) Cost savings - look ma! no hardware or software! All web-based. Ah, a dream.
4) Storage, storage, storage (more than 50X the industry average)
5) Security and Trust
6) And best of all - 24/7 customer support
7) The whole platform is on a completely different server than regular basic Gmail. Nope, you won't have any problems with Gmail being down any more!
Okay, I could go on and on and on...
Now, to tell you what makes my head really spin - and makes me a HUGE fan of Google Business Apps...
The power of the intuitive applications like Gmail, Google Calendar and Google Docs. How they all work together (especially in a virtual team environment) while creating a seamless and painless experience for all. It not only helps reduce costs, but it helps my team and I to collaborate more effectively.
If you've ever used the regular free Gmail, Google Business Apps is like Gmail on crack. ;-) Do you get my point?
Envision this with me for a second. (This is how my business is setup when it comes to using Google.)
I login to my inbox which is web-based (yeah, baby - I can access it anywhere!) and right away I see my regular inbox, and then a chat window on the right which includes my whole team and Solamar clients. On the left is my calendar and what's coming up for the day, along with another gadget that shows all our past google docs that were most recently updated by my team. At the very bottom, I'm reminded of security - as it shows me if I'm signed in anywhere else and that IP address, along with storage and a few other tid-bits of info. Here's a quick and dirty screen shot. I know you can't see much, but take my word for it. It rocks!
And here's my calendar (which I'm in love with, but I now have my assistant be in love with it!). Oh, and excuse the insane-ness:
And lastly, how amazing it is to share Google Docs?! No more attaching and reattaching, and revising and the reattaching. You share a Google Doc, that person edits it and then you can edit, all without sending an email (and being able to use chat while editing a doc or while other people are looking at it, too! Amazing!):
Now, are you ready for my favorite?! Google Labs - they rock my world! I have so many favorites that I can't even begin to list them out and explain why I love them and how they help me in business. You need to check them out for yourself! A-mazing!
Jeeze, what will Google think of next. Thrilled.
Okay, I'm off my Google soap box now. But I'll leave you with this. If your business isn't using Google Apps, you need to make the switch. I've saved money from an internal perspective, created a better work flow, and a centralized way of working with a virtual team. There's really no reason why you shouldn't use it. Truly. Make the switch. You'll be much happier you did. Promise.
You may be thinking "oh my, it's a lot of work to switch over". That's a lie. Just sayin'. And there's a free trial - only $50 per user every year thereafter. Brilliant, right?
Go for it. Report back to me. I'd love to hear how it goes! And if you still have reservations, comment here and I'll help you out!
WEEKEND READING: Old Spice Results, Facebook Places & Gap Goes Groupon
Take this weekend to catch up on the latest need to know in the areas of social media and technology.
Facebook Places launched and here is everything you need to know. Everyone is fearful about privacy issues, but it is very easy to change your privacy settings (which you should be aware of for all aspects of Facebook). What I like about Facebook Places, they make it really easy to tag your friends. As we talked about in our Webinar: All About Apps, The Basics of Using Social Mobile Apps to Build Your Brand, more brands are finding ways to use these geolocation technologies like Foursquare and now Facebook Places to build their brands. Here are all the details straight from the horses mounth (the Facebook blog)
You must have seen or heard about The Old Spice social media campaign, well the results are in and it turns out the campaign had over 1.5 BILLION impressions, holy cow! Better yet for Old Spice, sales of the body wash are up 55% in last three months. Read more on Media Bistro >
To continue our Groupon obssession, now they went national with a Gap Groupon deal that was huge and had smashing sales. Gap has to be losing money on this because they are offering 50% off in the Groupon and then Groupon gets paid, but as they say in the article, it would still cost less than a national media campaign and they can count on the fact that Groupon only expects a small percentage of the buyers to actually use the Groupon (read article on Groupon Business Model) and also that people will by more because they are saving money. Here are the details on Mashable
Have a great weekend!
Target Supports Local Before Hunkering Down
In a front page article of the Business section in The New York Times, journalist Stephanie Clifford covered how Target not only just opened its first store in Manhattan, but donated unspecified amounts of money to the local area it was planting its roots. In our quest for everyone to Buy Entrepreneur, it's good to see the big corporations supporting the communities they are in (at least at first).
Harlem is the lucky area to have such large convenience, and Target didn't just pop up there overnight. According to the article, Target wooed Harlem residents for 10 years in the form of philanthropy, "dinner parties", refurbished a school library, and agreed to carry exclusive gear designed by neighborhood starlets.
We agree with our friend Dan Otero from Launch Collective, a fashion and retail consulting firm, who was quoted in the article: "Whether they're effective or not, at least there is change taking place in how big businesses like Target are approaching their consumers."
Most importantly, we see it as the arrival of the acknowledged importance of the local consumer, that while this may be dubbed as bribery, supporting local was a tactic that Target opted to take. According to the article, Target has donated more than $187 million to communities overall in 2009.
Remember, small businesses and entrepreneurs are carried in big stores like Target. So while one might think that all products carried by them are just mindless mass produced pieces of plastic, it isn't so, and we encourage you to seek out the independent brands at these stores, like Hanky Panky, The Bella Band, and more as you make choices on where to shop.
Member Spotlight: Tymeka Lawrence of Brock Beauty, Inc.
Tymeka Lawrence is a dynamo. She is the president and co-founder of Brock Beauty Inc., creators of Hairfinity Hair Vitamins, Essentious Natural Hair Products, and Dermera Natural Acne Treatment. With a previous career and Master's Degree in Engineering, Tymeka has experience in designing products that will delight her customers. Her desire to please has translated into exceptional beauty products that her customers love.
Learn more about Tymeka and her brands, and if you have questions for this multi-entrepreneur, such as how she juggles her products, email us at info@collective-e.com.
To get to know more of our members, visit our Entrepreneur Directory.
To become one of our members to start promoting your brand with us in creative ways, join today.
WEEKEND READING: Business Insider Reveals Top 5 Characteristics of a Rock Star Startup CEO
Whatever business you are building, even if it isn't a startup, we agree that we see these 5 characteristics in our members that are thriving. I really like the one that says hope is not a strategy, the members we see that are taking off have a plan...even if they adjust that plan, they have a clear vision and strategy to get there. As for the test test test characteristic, I don't think anyone does that better than Michelle Madhok, founder of SheFinds.com, she never ever makes a move without testing first; it might slow things down, but you know that whatever she is choosing to do gives her a significant ROI. However, the one that hits home the most is execution, there isn't a business that will succeed without execution, there is a certain hustle (and I mean that in the best way) that we see in our members that are making it happen.
"Quit This Job & Love It": Forbes and Flight Attendant Remind Me of Why I Love Working for Me
Unless you've been living underneath a rock or completely disconnected from any news source, you've seen the story of flight attendant Steven Slater's slide to job freedom earlier this week. Whether you agree with his departure style or not, it's hard not to think of topics job related topics from job satisfaction to the environment one works and its effect on attitude and mental health. I can tell you that the last job I had before starting Red Branch PR found me so miserable I too quit, which eventually led me to Collective-E as well (now that is a story for another day....). Long story short, though working for myself can mean long, seemingly endless days and wearing more hats than I ever felt possible, it's all worth it because I love what I do and who I work with, and if I don't, I simply do not work with them! Ah, entrepreneurial freedom!
That said, I ran across this article by Kiri Blakely at Forbes.com about this recent spell of employee's quitting jobs in a public manner, and job satisfaction in general, and thought I'd pass it along.
Anyone else leave a job they didn't love to pursue their great entrepreneurial dream?
The Silly Bandz Story: Nothing in Robert Croak's Background Suggested He Would Create Such a Modern Day Toy Success
These stories inspire us, Robert Croak was a former bar owner and concert promoter who hit is big big big with the invention of Silly Bandz, those silicon bracelets in different shapes that you see on kids and adults across America. What we see as the difference between Robert and others isn't the idea, we see so many people with great ideas, but the execution, actually making it happen. As a result, Robert is creating jobs and revenue for a city that really needs it, Toledo, Ohio.
Read more about how he made it happen in this BusinessWeek article: http://www.businessweek.com/magazine/content/10_25/b4183064453633.htm

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