Test Your Network

Scenario: It's 9AM Monday morning. If you needed $1MM (thats one million) by Noon, Tuesday, could you depend on your existing network?

Keep Building!

Smile for Sherna...

...it's a must. :)

For lack of a better phrase - "Keep your head up".

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Tori Amos - Honey

Random: SecondLife

Fifteen years ago, when the SIMS first hit the public it was huge. Create cities and watch them flourish (or destroy them yourself with the monster alien that looked like a one-eyed magic eight ball), create people and watch them interact, grow and mature. Create roller-coasters, and then ride them...?

As avatars become more lifelike and gamers push the boundary between reality and well, online reality, a new breed of online games are emerging. www.secondlife.com. Great concept. Cool looking interface. Quite popular (especially amongst the "tween" set - www.teensecondlife.com). Generating revenues. All the things necessary for success.

But something about the idea of it and "lifegames" like it are making me wonder - what's happening to REAL life. Are we quickly approaching the world of holograms and holodecks (sssh! don't tell anyone I know what those are) - a society where those who can afford to would prefer to interact, alone with a bunch of digitized people in digitized scenarios creating digitized lives, rather than with...well, me and you?!?

Doesn't that explain some of the success of MySpace - "hey, she was homecoming queen and is dating the captain of the football team, but I have 4,501 MySpace friends, so HA!"

Have we reached the point where we are trading real lives, for online ones?!

Maybe Noah has a point: Step Away From the Computer

DO IT NOW!!! But not before you leave us some comments. Quit lirking, start commenting.

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Now Playing: DJ Shadow - Napalm Brain, Scatter Brain (how fitting) Album - Entroducing

Random: YOPOs

Are you a Yopo?

A yopo is a young professional, not necessarily a Yuppy but someone
who is:

• Making above $40,000
• Has a college education
• Spends a lot of money on random things, because they...
• May live with their parents but possibly renting their own place
• May be interested in technology but not a requirement. This group of people
  including myself wants to be recognized and needs to be marketed to
  specifically. They are the next generation of business people in
  America…Generation Yopo.

Thanks to Noah Kagan for the definition. BTW - Nice Ali G impersonation. :)

What differentiates the self-proclaimed "yopo"s from the Yuppies (aside from the obvious age gap)?

Are the Yopos that generation turned-off by Corporate America and cubicles, instead intrigued by romantic notions of internet success a la FaceBook and Digg? Have the so-called Yopos traded face-to-face social interaction for blogging, Skype and instant messager (on our cell phones of course)? Some might say so, but if you ask a YoPo, they'd tell you "no" - we haven't become more antisocial, we're just more selective in who we choose to face-to-face with. Hence the popularity of TechCrunch and Entrepreneur27 events - those that bring together bright minds and deep pockets.

Has there ever been a better combination?!

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Now Playing: Justin Timberlake - SexyBack (forget JT, Timbaland is baaaack!)
Note: Yay to the Roots for securing a 4/4 rating on their newest album: Game Theory

BOBO #2: What's In a Name

Nadiyah Says:

Have you ever tried to think of a domain name for a company in the year 2006? I mean seriously.

Are these stupid "how to get rich in 30 days" infomercials, when you see people riding bikes down the street talking about how they made $22,000 in 60 days, teaching people to put some letters together, buy the domain and then try to sell it to someone for $3,000.

www.MyKal.com - $3,800. You're kidding, right?! I mean seriously. In the past 30 days there have 2 web hits - both by me (from two different IP addresses).

And when I emailed the dude at BuyDomains.com he had the nerve to tell me that his reasoning was because if you did a Google search on the word "mykal" you get some 17 million responses. Hello? Mykal is a popular Russian and German name.

But then - maybe thats it. I wasn't looking at the name because I know Russian or German - but does everything have some meaning to someone?! Could www.vimeo.com be the name sake to some 15th century Filipino King. Or what about www.meetro.com - could that one day be slang for Spaghetti and AppleSauce? How do we know that when pronounced in Italian, www.myspace.com (mee-spa-chee) doesn't mean cinnamon or something?

UGH!

Once again, proof that there is much to be learned.

BOBO #1: Idea ADD

Sherna Says:

I’m stuck. We’re so stuck. Stuck in a rut we can’t get out of….a rut of ideas on top of ideas and information overload that I'm drowning in it. We come up with an idea, then we research it till its dead and we decide it stinks… Dude, we are so never going to get anywhere that way. How do we fix that?

I figured out the problem with the calendar idea. It’s not exciting. I looked at 30boxes and thought – blah…what’s wrong here, why haven’t any of these calendars taken off???? There seems to be quite a few in existence??? [Scobleizer's Explanation]

Honestly, I want to do something more simple. Plus with both of us with full time jobs – when the heck are we going to do this…it has to be simple, so we can build slowly.

I think this is me wanting a beach house and having a nervous breakdown about no clue how to get it.

---

Summary: We are suffering from idea overload (and we have the email inboxes to prove it). How do we curb the ideas, stop hashing and re-hashing, and come up with something concrete to move forward with, that we both feel good enough about to put our name on it and say "yea, this is ours"?

BOBO: Blow Our Brains Out

BOBO = Blow Our Brains Out.

Sherna's newest thing - whenever she gets frustrated, it's not "I'm sick and tired of ___" or "I'm fucking losing my mind" its "I Want to Blow My Brains Out" - no more CSI for her.

So that's what we're going to call the breakdowns. Trust that this is the first of many...

It's not nearly as bad, terminal or concrete as it sounds - it's simply that that's the feeling most folks have when their facing an idea breakdown - you're just ready to call it quits for .025 seconds.

Piece of Advice #1

"Stop analyzing and go do."

What you need to hear isn't always what you want to hear...

So we're still trying to find a way to get around shelling out $$$ to get a web application integral to our differentiation going. In the process of finding out alternatives some great folks have helped us realize that there is more out there than we thought - the question is how to go about getting them to go along with us. Hey - they need branding. We need their web app. Partnering with us - they get their branding, we get their web app. No shelling out our hard earned cash.

In other words, get over the $$$ fears and start getting creative.

Great advice.

But, hey analyzing is a lot less risky!! Some call it prudence, "knowing your market" or the necessary analysis. Or maybe just more Adult Procrastination.

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Now Playing: Bjork - It's in Our Hands (repeat from below).

Business 101: Business Plan Overkill?

Here's a question: lets say you have an idea and it'd be expensive to pull off or at least more expensive then what you can currently afford - or you think you'd be that much more successful if you partnered up with someone (or at least someone else's loot). Is it in your best interest to spend time formulating a business plan - or figuring out a way to get out there and "get 'er done" and worry about a business plan later?!

Because when you really get down to it: which is more telling, indicative of your drive and potential for success and more interesting: a 30 page business plan complete with facts, figures, and maybe some cool icons OR a fledgling product/website that you've been able to launch despite being employed full time and being on a 20-something's budget??

Which is it?!

And why do so many of us spend so much MORE time writing busines plans rather than pursuing our ideas?

:::Sex And the City Moment:::

I can't help but wonder, are business plans a planning necessity or a form of adult procrastination?

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Now Playing: Gorillaz - El Manana (Demon Dayz)

Trend: Website Names that End in "O"

Is it me or does it seem like the new trend in "web 2.0" (I use the term loosely) websites is obscure names - many of which end in "O" - www.sleeto.com, www.komo.com etc. Note: I didn't use actually website names, so as not to piss anyone off - we're trying to open a business, not be hated before we get off the ground. But ya'll know what I'm talking about.

Are we lacking creativity, or is it just that there's some serious groupthink going on in CoVal (silicon valley - where most of this stuff is coming from)?

Just a thought.

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Now Playing: Atmosphere - God Loves Ugly (Album: God Loves Ugly)

Quotables: Competition

What any entrepreneur should seeking when it comes to:

Competition? Just enough to make it worth it, not enough to discourage it.
-Ruby on Rails development Team

:::we're still scared, but not so much:::

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Now Playing: DJ Shadow - One Night in Bangkok

Business 101: REAL Networking

You are who you associate with.

Some might argue that's a snob's way of justifying why (s)he only associates with other snobs is the ultimate sign of elitism - "Oh, so you're too good for the normal guy?". But there's something to be said for the "birds of a feather" argument - hence why there's a bunch of corny cliches that reiterate why like minds tend to be found together. Last I checked, Warren Buffet isn't running around with a bunch of the financially challenged - not necessarily rich, but savvy, Richard Branson wasn't sitting on his private island trying to convince the risk-averse to try, umm...swimming?, and Kevin Rose wasn't running around with a crowd who still couldn't navigate around AOL let alone the real internet. What am I getting at? There's a reason why people have different networks for different purposes. And who your business network can forever shape how people view you and your business.

What's my point?

How do we align ourselves with the successful, self-starting entrepreneurs, with big dreams and a big desire to make things happen + the risk-amorous, venture capitalists and investors with loot to invest? Loot = hip hop slang for money, synonoms - cheddar (chedda), gouda (type of cheese, see chedda) and bread.

How? By Changing our network:

• first Tuesday - International network of forums and events that bring together bright minds and deep pockets (think non-US TechCrunch). Based in Johannesburg - locations in some 20+ countries. Check it out, especially if you're outside the US.
• WorkHappy - Killer Resources for Entrepreneurs. Great way to keep up to day on what's out there, what's good, what's not and how it can be best used. Tailored for the entrepreneurial mind.
• Paul Graham's Articles - essay style blog providing entrepreneurial advice. Includes titles such as "How to Present to Investors", "Good and Bad Procrastination" (this is on our to-read list) and "What You'll Wish You'd Known" (sounds ominous). Well written, great sense of sarcastic humor and good information. Worth the read.
• TechCrunch - blog for all things moving in the internet technology sphere. Hosts quarterly parties (for $150 a pop) between successful entrepreneurs and VC's. If $150 is too much for a ticket for the chance to rub shoulders with VC's like Garage, Atherton VC, Michael Levin (PayPal! dude) and Kevin Rose (Digg! dude), then start formatting that resume for Monster.com...entrepreneurship is NOT for you.
• Entrepreneur27 - blog, web community and networking site for entrepreneurs, 27 and under (hence the name). Hosts randomly-scheduled events (free!) between successful entrepreneurs (ideally under 27) and VC's.
• Noah Kagan's BusThoughts - random musings on the growing internet technosphere, business, marketing, technology, and umm...life amongst the people in these circles. Definitely worth the read and the visit.
• Ladies Who Launch - pretty simple actually - a website full of ladies who launch (companies). A home for all entrepreneur-ettes, of all ages. Weekly events in various cities nation wide (unlike the above - non focused solely on the Silicon Valley). By all means girly.
• Social Degree - Blog about the happenings of the social networking industry, since it is the industry to be in. It's basically the place for all those who have Web 2.0 in their executive summary to the extent that they are powered by user-driven-content, but beyond that, have little concept as to what Web 2.0 exactly means. It's like consultants who say "solutioning" (mental note: its not a verb) - and yes, I can say this because, well - I am a consultant.

This list will continually be updated. Don't get me wrong...all networks are valuable. But where you spend your focus and your time says a lot about your committment to succeed and what level of success you are seeking.

In other words, less message board posting... more getting ourselves out there.

Which leads to how you can make yourself memorable - Cher costumes and drunken dance routines/karaoke jaunts need not apply - in a good way. Hint: Business Cards probably aren't going to cut it (although they're a good start). We'll discuss creating long lasting impressions later, once we figure it out.

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Now Playing: Bjork - Animal of Me (album: Post)

Business 101: What's In A Name

Business Basics: While a name isn't everything, a name should also NOT be something that came to you while sitting in front of the computer on www.GoDaddy.com, desperately racking your brain for an alternative to www.skipdog.com (because someone's already purchased it AND parked some nonsense search page on it).

In other words, spend some time on your name as it:

• Will be ultimately responsible for the IMMEDIATE reaction that your customers and target market will have when they think of WHO you are
• Can play an integral roll in shaping your brand as the name is BASIS of your brand
• Eponym's anyone? :::What's an Eponym, you ask?::: In marketing speak - Eponym's are those Brands that have come to be known as the products they represent. In other words - brands that have become THE products, themselves.

Think the naming process is a bunch of hype? Take a look at 25 companies who's Brands have become synonomous with that which they sell.

1. Band-Aid : Bandage : Owned by Johnson & Johnson
2. Coke : Delicious soda : Owned by Coca-Cola
3. Escalator : Escalator : Owned by Otis Corporation
4. FedEx : Overnight Mail : Owned by FedEx
5. Google : Search : Owned by Google
6. Jeep : Truck : Owned by Chrysler
7. Jell-o : Gelatin : Owned by Kraft Foods
8. Kleenex : Tissues : Owned by Kimberly-Clark
9. Lazyboy : Recliner : Owned by La-z-boy
10. Legos : Plastic blocks : Owned by Lego Group
11. Netflix : DVDs by Mail : Owned by Netflix
12. Polaroid : Instant Photos: Owned by Polaroid
13. Post-it Notes : Sticky Paper : Owned by 3M
14. Q-Tip : Cotton Swab : Owned by Kimberly-Clark
15. Rollerblade : Roller skates : Owned by Rollerblade
16. Rolodex : Contact Organizer : Owned by Eldon
17. Saltines : Crackers : Owned by Nabisco
18. Scotch Tape : Tape : Owned by 3M
19. Sharpie : Marker : Owned by Sanford
20. Taser : Electronic Shock Device : Owned by Taser
21. Tivo : Digital Recorder : Owned by Tivo
22. The Club : Anti-Theft Device : Owned by Winner
23. Tobasco : Hot Sauce : Owned by Heinz
24. Tylenol : Headaches / Acetaminophen : Owned by Johnson & Johnson
25. Walkman : Tape Player : Owned by Sony
26. Windex : Window Cleaner : SC Johnson
27. Vaseline : Petroleum Jelly : Owned by Chesebrough-Pond’s
28. Xerox : Copies : Owned by Xerox
29. Chapstik : Lip Balm: Owned by Johnson and Johnson

For a complete list check it out: http://www.prairienet.org/~rkrause/brands.html

So you still think spending time on a name, is a waste of time?!

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Now Playing: Bjork - Isobel (the remix off Telegraph)

History: Humble Beginnings

Someone asked me in an email, how we got started. "What was your inspiration?" "When did you know you wanted to a business owner?".

Great questions, although our start was hardly that romantic and life changing and was more the result of CONSTANTLY complaining that we were bored despite living in a HUGE city (Los Angeles). OUR start was/is simple - and it goes a little something like this:

:::hip hop beat in the background:::

Picture two girls - we were bored at work and we're bored at home, and we're thinking "we live in this HUGE city and we are bored??" - how is that possible?

Our Options: we can spend our time find people to do something with (men!) or we can spend our time finding things to do and worry about men later (hey! we're 20-somethings).

Hmmm: how can we help other people find people to do things with OR things to do (we hadn't made up our minds).

Decision Time: we don't want to make a dating website (although we seriously thought about it), because dating on the internet is dime a dozen, hit or miss and oversaturated. So how can we give people the things to do?

Extensions: if we can do it in our city can we do it other places?!

The Risky Business: And then as we REALLY started formulating, we started getting scared - this is expensive, if people are going to invest they are going to expect that we can not only pull it off, but be successful - and what happens if it doesn't work, and what happens if we quit our day-jobs and go broke in the process, and ruin our credit and all the other things that come along with diving in headfirst with an idea that requires some risk.

The Alternative: BUT then we started thinking about what would happen if we DIDN'T pursuit our idea - more working, 10-12 hour days in a cubicle, for a salary that's alright, but with NO REAL opportunity for serious challenges and advancement in the near future.

We've got nothing to lose, but some credit score points and our hard earned savings HAHA.

:::Don't be fooled by the confidence oooozing from this post:::

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Now Playing: Tori Amos - Crucify (she's amazing)

Still Stung

Went to bed last night thinking Competition is a good thing - it means there's a market for what we're trying to do and the fact that the competition has generated MINOR buzz, also shows that there is interest in what we're trying to do.

Went to bed last night thinking Competition is a good thing - while they've incorporated aspects of our idea, they have not fully expanded into our realm, meaning there is still tons of room for our idea to make a big splash.

Went to bed last night thinking Competition should fuel us - should make us want to do this even more, should make us realize that THIS is possible, should make us realize that we CAN do this and that people WILL find it useful. Should quell some of the fears while increasing other ones.

Woke up this morning feeling nervous.

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Now Playing: Tori Amos - Honey

Stung by the Competition

You've got an idea, you think its great. No one has developed a similar idea and generated any significant buzz (and internet buzz is OBVIOUSLY not hard to come by). You're pumped, you're excited. You're filled with nervous energy...

...and then doing some research, you realize someone has partially beat you to the punch. NOOOOO!

In an effort to minimize the crazy costs associated with bringing our idea to market - costs that are largely absorbed by web development and design fees - we've kept our eye on the marketplace. What's happening and what's not. Who might be interested in a partnership and who might now.

And in the process of doing so, I've come across two companies who have successfully launched an application VERY similar to our own (without the integrations). And I can't help but be a little sad. Does that mean there's no market for us?! NO. Does that mean that there's no opportunity for us to be the best?! NO. Does that take some of the steam out of the idea? I don't know. :(

NOW WHAT?!

:::where are those fortune cookies DAMNIT!!:::

That's exactly IT. Competition is inevitable - without it, you're either smarter than the other 5.959123812 billion people on this planet OR there's no market for what you're trying to do.

Hey - we've got competition. That's a good thing - there's a market for what we're trying to do, consumers have an interest in it, and industry and technorati bloggers tend to think the idea has potential and is worth exploring. COOL! Sure it ads pressure, but what's entrepreneurship without some pressure!???

A job.

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Now Playing: Kosheen - Resist

Fear Factor

No one ever talks about the fear associated with starting a business - and I Find it hard to believe that "true entrepreneurs" aren't plagued by fear. Fear of failure. Fear of not being taken seriously by potential investors or boards of advisors. Fear of people not liking your idea (because regardless of what people say ideas become personal - they reflect you - and when people attack the idea, many feel as though they are being attacked personally). Fear of success (yea...overnight success is scary too). Just ask the guys at YouTube - who despite being wildly popular are having difficult curbing heavy hosting fees and are amidst swirling rumors regading their inability to find realistic buy-out options.

So what do you do? How do you "fight the fear and do it anyway"?

... trust your fortune cookies - "Success is in your future".

... and if not, then eat it and ask for another. The "Success is in your future" fortune cookie has got to be SOMEWHERE at PF Changs, Szechwan Palace, Panda Express, General's Tsao's Buffet, China Palace, China Garden...

Inspiration can come at any time, from anywhere, in any form. Whatever works. :)

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Now Playing: Massive Attack "Future Proof"

Kudos: www.collegehumor.com

What starte out as a way for two friends, off to college, on opposite ends of the country - to keep in touch and share the silly things that happen in college, they created a website - www.collegehumor.com. It caught on big. IAC (InterActive Corporation) caught wind and decided to shell out some cash ($20MM) for a majority stake in the venture.

It must be nice, right?!

Kudos!!

The Official Release and The REAL Reaction (by one of the co-founders).

Info courtesy of Young Go Getter.

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Now playing: Bjork - "Its In Our Hands"

Business 101: Business Plan

As promised, a running list of business plan resources (from outlines and planning resources to places where you can go and download sample and actual business plans.

1. Business Plan Archive: a joint project between John Hopkins' University and the Library of Congress (yes... the library of Congress) containing over 100 actual business plans created and submitted by businesses (some which still exist, others that do not - truth that most business just dont'w ork out). Also includes income statements, executive statements, marketing documents, demographics analyses. (Free) Membership required.
   
2. The Entrepreneurial Group: awesome Yahoo! Group resource. Unlike other "entrepreneur groups" this one - people are actually entrepreneurs!! And are successful!!! WOOHOO! Upon joining the group, they issue a document called "How To Prepare & Present a Successful Funding Request" (38 pages) that walks you through the various pieces of a business plan and includes workbook-like exercises that assist in completing the more difficult sections. Worth joining! (Free) Membership.
   
3. Microsoft Word Business Plan Template: don't knock until you've tried it. Created by BearingPoint.

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Now Playing: Red Hot Chili Peppers - Hump de Bump

Business 101: A Business Plan Outline

When it comes to writing a business plan, there's so much information out there - that for whatever reason seems to be, for the most part, inadequate. If I see one more corny link to an outline that is totally useless an obviously would NEVER be used as an actual business plan that is presented to someone with half some sense, I will scream (and you will hear it... God bless Web 2.0). Sure you can find thousands of companies willing to offer you software applications that ease in creating your business plan - which I think are a waste of money ("What do you know?"). Basically they do nothing more than provide a format - because the content and images still have to come from you. Where are the sources that show you ACTUAL business plans (not bogus outlines that were obviously not used for any real purpose other than to fill some space on a website) - we'll keep a list, in another post, of business plan resources we found to be useful...nonsenseee websites not included.

Why am I writing a business plan anyway?! I ask myself this question all the time.

If you're on a quest for funding/capital - you're going to need a business plan. Sure we can all find one-off situations like www.yelp.com and www.digg.com who were able to secure funding without a business plan - but how many of us have the founder of PayPal (sold to eBay) and Google on speed dial. And if you're out there reading this, and you do have these folks on speed dial - we need to talk. "Get at me".

Business plans help you flush out your own ideas. You'd be surprised as you're typing that "tag line" you've sold to 15 people on your idea and it's purpose - it sounded great, but on paper, it doesn't quite read with that same pizazz it had before.

Business plans also provide a great resource for determining what IS and IS NOT in scope of your project or idea within a specific time frame. Scope creep (consultant speak) is alive and well, and man does it bite hard and quick. Without a clear idea of that which you are attempting to accomplish you'd be surprised how quickly an idea to create the an electrical vehicle shuttle service becomes Rent-A-Hybrid.

Business plans are a great reference document later on down the raod - to see where you stand, what goals you had set for yourself and your company and how you can check your progress against these goals.

...or at least, that's what we've been told.

So in the spirit of business plans, and since we're in the midst of "THEBusinessPlan v2.0.doc", I thought I'd help in the process by putting a few BP resources that are out there, and were helpful in our quest for (useful) information.

The Ten Sections of an Internet Business Plan (click title to view full article)

1. Executive Summary (required): This section must concisely communicate the basics of your entire business plan. Keep in mind that your reader may be unfamiliar with the Internet and its tremendous potential.
2. Business Description (required): In this section discuss your firm's product or service along with information about the industry. Because your business plan revolves around the Internet, spend some time explaining it first. Then describe how your product and the Internet fit together or complement each other. As with any business plan, consider your audience. If the readers are technically unsophisticated, make sure you include definitions along with any technological terminology.
3. Marketing Plan (required): With the business described, next you must discuss your target market, identify competitors, describe product advertising, explain product pricing, and discuss delivery and payment mechanisms.
4. Customers: You must define who your customers are and how many of them exist on the Internet. There are demographic studies by organizations such as The Internet Society and The Internet Group that can help you determine this.
5. Competitors: Use Internet search engines to look for known competitors or similar products to yours. Be sure to use several search engines, because each uses different search techniques. After you have identified your competitors, perform a new search every few weeks or months. Companies are continuously joining the Internet. Remember, readers of your business plan will be very interested in how you are going to beat the competition.
6. Advertising: Describe how you are going to tell the Internet community about your product or service. Designing beautiful Web pages is only a first step. You must also get the word out about your Web site. Some tips: add your Web address to the databases of search engines such as Lycos and WebCrawler, submit it to What's New at NCSA Mosaic, and add it to the bottom of all of your e-mail messages.
7. Pricing: How are you setting prices for your products or services? If your product is intangible information delivered over the Internet, you should try to create some sort of pricing model to justify your prices. You could start by researching what others are charging for similar products.
8. Delivery & Payment: How are you going to deliver your product and get paid? E-mail alone is not secure. Consider encryption techniques like PGP, and on-line payment services such as DigiCash.
9. Research & Development (required): This is where to get into the technical aspects of your project. Address where the project is now, the R&D efforts that will be required to bring it to completion, and a forecast of how much the project will cost. Since the Internet is continually developing, you should also address continuing plans for R&D.
10. Operations & Manufacturing (not required): In this section, discuss the major aspects of the business, including daily operations and physical location. Also, what equipment will your business require? Will you be using your own Web server, or will you be contracting with another company? Who will be your employees -- will you hire Internet knowledgeable staff, or train them in-house? Be sure to include cost information.
11. Management (not required): This segment must address who will be running the business and their expertise. Because the business centers around the Internet, be sure to discuss the management team's level of Internet expertise and where they gained it. Also, describe your role in the business.
12. Risks (required): In this section, you must define the major risks facing the proposed business. In addition to regular business risks such as downward industry trends, cost overruns, and unexpected entry of competitors, also include risks specific to the Internet. For example, be sure to address the issues of computer viruses, hacker intrusions, and unfavorable new policies or legislation.
13. Financial (required): Potential investors will pay close attention to this area, since it is a forecast of profitability. As in a regular business plan, include all pertinent financial statements. Remember to highlight the low expenses associated with operating on the Internet compared to those of other business.
14. Timeline (required): In this section, you must lay out the steps it will take to make your proposal a reality. When developing this schedule, it might be helpful to talk to other Internet businesses to get an idea of how long their Internet presences took to establish.
15. Bibliography and Appendices (not required): In addition to business references, include some Internet references in case your readers would like to learn more about the Internet as a part of studying your proposal.

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Now Playing: Matisyahu - Exaltation

Business 101: THE Financing Pitch

From a Business Week article from the New York Angel Group (group of angel investors who see a dozen - thats 12 - business pitches a week).

Here's what they said should be included in your pitch, and remember SHORT is key. The more you talk, the more likely you are to lose your audience. KISS (Keep It Simple Stupid). Take a look:

(the stuff in purple represents the introductory information - the stuff in blue represents the actual content)

1. Company Title Page: name + logo + presenter (name with title) + company tagline + dollar amount being sought
2. Business Overview: what you sell + what you do
3. Management Team: talent + experience and background for each member of the management team (three lines maximum)
4. Market: environment + segments (your specific market niche) + pain points (where the problems exist)
5. Product: how do you solve customer's pain + what you do + product images or screen shots (if you have them - will depend on your round of funding) + process diagram (again, if you have them)
6. Business Model: explains the revenue generation portion of your company: who pays whom + how much (pricing model) + for what (what customers are paying for) + from where (how payment is made)
7. Customers: who are they (demographics) + how many are there (population size) + how to distribute to them + how are they attracted and retained (marketing)
8. Barriers to Entry: how to outlast the competition - why other people can't do what you're trying to do
9. Financial Overview: top line revenues + expenses + EBIDTA (earnings before interest, depreciation, taxes and amortization... in other words, earings before all the bad stuff)
10. Use of Proceeds: what you plan to do with the $$ you requested on the title page
11. Capital and Valuation: money raised previously + current investors + what is being sought + suggested valuation
12. Review: presentation summary (keep it in the same order) + highlights (5-7 points you want to re-iterate)
13. Contact Info & Next Steps: if they're interested, leave nothing to their imagination - tell them what's next + follow up meeting (what will be discussed) + contact info

Hope it helps someone get some funding. Keep us posted. We like success stories - they help remind us that SOMEONE out there is successful...

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Now playing: Radiohead - There There (Haiil to the Thief)

Let the Critiques Begin

So, as of August 9, 2006 at 8:40 am from my cubicle as an IT consultant, my business partner and I are 60% through a completely reformulated business plan (more on my thoughts on the necessity of business plans later), and 100% through an initial concept document (high level design document).

We are realizing that our product would be most cost effective to develop if we partnered with one of the Big Guys (Google, Yahoo, MSN). The upside to such a parternship - the $$$,$$$,$$$.00 (lots of money!!). The downside to such a partnership - having your soul owned by a Big Guy. Literally. The question becomes - how much is your soul worth?? I'm still working on my valuation.

As for our quest for venture capital, we've realized (quickly...like, in a day) that no network truly worth having can be built in a day. So for those who think there's some magic secret to getting yourself "out there" on the right web site, discussion forum or message board - there's not and it's not. And when you really think about it - why would it be? Someone who's interested in pushing $100K - $1MM towards a concept or an idea is NOT going to go off what you posted in your "We need money" rant or even through an exchange of 50+ emails regarding your concept, customers, competition, market, financials or growth strategy. When you really get down to it - the capital investor/entrepreneur relationship probably goes a little something like this:

• 30% Concept
• 10% Business Structure (business plan documentation)
• 10% Instinct
• 50% YOU

We'll re-evaluate these proportions once we get some money. Which leads to the idea - which question is more important:

• Do they believe in your IDEA?
• Do they believe in YOU?

This isn't to say that the idea itself is worthless - obviously its not. Without an idea...what's the point, right?

I can't help but wonder - which is is more important, you or the idea?

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Now Playing: Talib Kweli - Beautiful Struggle (Title Track)

Business 101: Expanding our Network

As a young entrepreneur and two females at that, we figured, you can never have a network that is too big...network, of course meaning people who you bounce concepts and ideas off of, people who can share their tips and advice, and people who basically are motivated by the same concept - to really see what you are capable of creating and managing.

Some places we joined: this list will be updated constantly. And as we move forward, we will keep you up to date on which ones were useful and which ones were not. Which ones wanted to sucker money out of you (like the venture forums where if they are simply the platform by which you meet someone who's willing to give you $1MM towards your idea, they get 1%), or the ones who were simply a waste of time.

• Yopos - Young Professionals (See Random: Yopos posting for more information). Network of young, business minded professionals, backed by a blog, of course.
• Netpreneur Forums - a web forum for, well, Net Entrepreneurs (hence netpreneurs). Relatively small but active board, considering the number of members. Good discussions. Most members seem to have a focus on revenue generated through blogging and other commentary-based sites.
• YoungGoGetter - web community + message board + blog for, well...young go getters (young entrepreneurs). This communty is a bit more active than Young Entrepreneur.
• Go Big Network - member listing (entrepreneurs and supposed vc's complete with member profile), message boards - basically an online networking portal. Founded by a serial entrepreneur. Comes through on its boast of being frequented by both entrepreneurs and Loot'ers (people with money to inveset in entrepreneurial endeavours). Worth the visit, and the free memebership - if you're an entrepreneur - in my opinion.
• Young Entrepreneur Forums - message board and blog (because all entrepreneurs have a blog). Good place for sharing ideas and talking to people who share similar motivations. Seems to be a consistent "first stop" amongst folks who are, to varying degrees, committed to getting their venture off the ground, but aren't sure how to go about it. Especially seems to track folks with $$$ issues.
• Entrepreneur Magazine - online component of traditional magazine. While I dig Entrepreneur Magazine, I find that a lot of their articles are information that you already know - those "seven habits of highly effective people" type articles, where you've known all along, it's just THIS person decided to take it and put it in a single condensed format. Great place for folks with home-office type ideas (ya know - my new line of eco-friendly baby clothes, homemade skin care, or even home-operated web hosting or consulting ventures) and those who are interested in franchising.
• Inc. Magazine - online component of traditional magazine. What's cool about inc - they profile smaller businesses that I find have been more applicable to what I'm trying to do. NOT that there's anything wrong with a woman who's trying to take her cookies that are shaped like a baby's rattle national, it's just not in any way related to my business or my concept. Also, more first person accounts of what did and did not work as opposed to these "10 things you should know" and "7 Things you should do" type articles that you find in Entrepreneur magazine.

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Now Playing: Common - Testify (album: BE)

History: Adventures of the Entrepreneur-ettes

Yup. That's what this is.

We're doing it. We're diving in (we think). We're looking for seed money in the realm of $100K - $200K.

And so this is going to chronicle our experiences.

You'd think with all this beautiful blog technology, they're already be a site out there with this exact purpose. Nope.. They are fool of hokey details like "thanking your parents" and "taking time out for yourself" (no kidding!) and no real deal information like "how did you prepare for venture capital funding" and "when was the 192840492th time you told yourself you were crazy for wanting to start a business, and actually believing that for whatever reason, it was possible".

All right here.

Sit back, relax and enjoy.

At least someone's going to be relaxing - and something tells me it won't be us.

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Now Playing: Inner City - Good Life
Yea I know it's some 90's almost-Miami-Bass type mess, but hey... I didn't ask you. :)

REAL Entrepreneurial Qualities (no bs)

...as I typed "entrepreneurial" I got to thinking - could they not have come up with a shorter, more succinct English word for "business starter"? Entrepreneur??

Anway, we've all seen the articles, books, news-clips and sound-bites on the "Seven Habits of Highly Effective People" and the 10 Characteristics of an entrepreneur, and those online tests that see if you have what it takes to start a business.

So I'm going to keep a running tally of MY list of things that I think "Business Starters" (Entrepreneurs) need:

Entrepreneurial Quality #1: BACKBONE

A healthy degree of backbone (stubbornness sounds funny). As you're coming up with your idea, it's going to take a healthy degree of backbone to believe in your concept, for a variety of reasons. Starting a business is one of those things that the world has romanticized - you own your own business, you make all this money, you work when you want, you still have time to take the kids to school AND take the dog on his afternoon walk. For that reason it's one of those things that everyone has at one time or another thought about for at least .5 seconds. That is, until reality set in. As a result of the romantic fantasies people have about business ownership, there's a healthy dose of what I call "unintentional envy" that comes along with the idea. Unintentional because if you're asking the right people about your concept and your idea - they're not being nay-sayers because they want to hurt your feelings or just to spite you. But that opposition is coming from a place that is SOMEWHAT rooted in "why aren't I starting a business?" and "why didn't I come up with that?" or "how come (s)he didn't ask me to get involved?".

Hey, there's a reason why you've come up with the idea that you have. And there's a reason why as you started to formulate it, you couldn't sleep at night - you'd toss and turn, thinking of the possibilities and you'd jump up at 2 AM to right down a note before it left you. The backbone becomes crucial in knowing and understanding which criticisms to accept and acknowledge and which to deflect. Also in determining the root of the criticism. People will criticize. And frankly, if people don't criticize, at all, you need new friends and family members. They're telling you it's going to be big because they see those "support my supporters" dollars coming in when your company goes public and you've got millions to burn.

But backbone comes with a price. Being stubborn is great, but you've also got to know when to turn it off. And that's what I'm learning. Hell, I'm the smartest, greatest person on the face of this earth - and when you dis (disrespect) my idea, you're dissing (disrespecting) me. And homey, we don't play that.

No, really - there's the flip side. Knowing when to let the defenses come down and REALLY take into account what people are telling you.

I'm still working on that latter half of the "backbone" idea....and I've got the black eye to prove it.

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Now Playing: Dizzy Gillespie - Kush
Dizzy IS the best!!! Gillespiana - live from Carnegie Hall - definitely an album worth picking up.

Feelings: Starting a Business

How do most people come to the conclusion that "maybe I should start a business"? Sure, USAToday articles and the News will tell you it started with a really great idea - like an umbrella that doubles as a grocery cart - or the desire to make the world a better place. Blah. It started because ____ was sitting in a cubicle at work (or in a classroom listening to someone lecture) thinking: "I could do ______ better than it's currently being done...AND I could make some damn money." Green was no accident either.

THAT is the real entrepreneurial bug. And so I've been bitten (well, twice - the first bite was corporate America). And apprently not the only one. So a college friend and I have been throwing around various ideas thinking of starting a business. Meeting at Starbucks discussing what we think could be the "next big thing" while glancing over our shoulders, to make sure that our brilliance isn't being overheard. Perusing the internet for information on what it takes to start a business. "Write a business plan". Ok. Writing business plans while laying in my hotel room watching the Simpsons. Put up some ads looking for web developers - ya know, all the stuff you do when you think you want to start a business but you're really not sure you're really ready to start a business. Writing a business plan is easy. Telling your family and friends about your idea and convincing them that your idea will take off, is the easy part. Even listening to people tell you "no way, that's not going to work" or "that's already being done" is the easy part.

All the 'easy', no-risk, idea formulation tasks.

Procrastination at its best.

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Now Playing: Blackalicious - "Feel That Way"