20 Things NOT to do Before Starting a Business

1. Don’t quit your day job.
2. Don’t incorporate. Seventy five percent of all businesses are sole proprietorships, and they already make money.
3. Don’t get a bank account. Your personal banking account will work just fine if someone wants to write you a check, or if you need to pay for something.
4. Don’t rent an office. Work from home. It won’t require a first, last and security deposit. Plus, it’s tax deductible.
5. Don’t hire an attorney. What’s an attorney going to tell that you didn’t already know, or couldn’t figure out on Nolo or in a good bookstore? There are only two times to call an attorney: if you’re in jail, or if someone else’s attorney contacts you.
6. Don’t hire an accountant. Quickbooks Simple Start will get you going.
7. Don’t get a loan. To get a loan from anyone, even your family, will require that you do too many items on this list. And besides, if you get a loan, you know work for the bank — not for yourself.
8. Don’t hire anyone. Don’t hire someone if you can do it yourself. For everything else, use contractors and give them 1099.
9. Don’t get a business license. I’m not advocating that anyone cheat the government. Once you can sell your product/service, go out immediately and get all of the necessary business licenses and permits in your jurisdiction.
10. Don’t try to patent anything. It takes 1.5 to 2.5 years to get a patent. Who knows what the market will look like then.
11. Don’t design a logo. You are your own brand, you don’t need a logo.
12. Don’t waste time picking a business name. As a sole proprietor, you already have a business name: your own!
13. Don’t advertise. Advertising costs money, and takes time to perfect. Selling takes only you.
14. Don’t buy office supplies. If you need a pencil, get one out of the kitchen or your son’s backpack. You are working from home, aren’t you?
15. Don’t buy any equipment. Outsource everything. Fedex Kinkos can handle all of your printing, and instead of splurging on a postal meter head down the post office. Need something big? Rent it! If it’s not something you can rent by the day, maybe there’s another local business with one. Can you rent it during their off hours in the middle of the night?
16. Don’t try to find a partner. What do you need a parter for? Capital? Don’t take loans. Need someone with some sales experience? If you the inventor of your product/service can’t sell it — no one will be able to.
17. Don’t join the Chamber of Commerce. Chambers of Commerce have great mixers where you can meet and network with other local business people. Right now, you don’t need to network, you need to sell! Plus, you can always go as a visitor.
18. Don’t tell all of your friends about the business that you’re going to start someday soon. Every minute that you spend telling someone you love about your future business is one less minute you have to either try to find someone to buy your product/service or to refine it. Plus, everyone knows an “entrepreneur” that is all talk and no action: don’t be one yourself.
19. Don’t write a business plan. Sure you need to know what you’re going to do and how you’re going to make money, but don’t waste time formatting it into a structured plan.
20. Don’t get a business telephone number or mailing address. You have a cellphone, use it. If someone needs to mail you something, have them send it to your house. You’re working there, remember.

New Year + New Attitude = New Website?!?

Earlier this year (ha) I posted on how so many of us use the "arbitrary" date of January 1st and the day to put into action all the things we put off the previous year. Ya know - the whole "new year, new attitude" type of thinking.

However arbitrary, as some folks noted, the "new year, new attitude" approach is a good thing - hey, if it takes an "arbitrary date" such as the coming of a new year to act on the changes we all want to make for ourselves, why not?

And while I scoff at New Years Resolutions because NO ONE ever keeps them - I vowed that this year would be the year we get something off the ground...

AND its happening. We've finalized the layout for Phase 1 of what will become EventSpy and we are excited!!!


As you all have heard a million times, we spent a lot of time spinning our wheels because once we decided what we wanted EventSpy to become, we were overwhelmed by the cost of what it woud take to make "our dreams a reality". We thought about Venture Capital money but quickly realized we weren't the best candidates - at this point in time. We thought about credit and quickly realized we weren't quite ready for that type of risk. We thought about self-financing - but the two of us combined didn't have $40K lying around to put into a business. AND we thought about friends and family - I can't speak for Sherna but past experiences have made me hesitant to rely on friends and family for business investments - at THIS point in time.

We fell into a downward spiral as we slowly lost interest as a result of money woes - we're girls and overemotional :sigh: AND THEN we started thinking differently. :::FINALLY:::


We're excited and we'll keep you posted as we cross the inchstones to our debut.

::thats it:::

---

Now Playing: Rodrigo y Gabriela - Tamacun


If you haven't heard of this duo, you need to get on it. Sure, its acoustic guitar music, but they're amazing, and their story is pretty cool too.

iPod + Cell Phone = iPhone

If you haven't heard, Apple wow'ed the world again with its iPhone cell phone announcement - hitting the shelves of a Cingular store (Why Cingular?!?!? I HATE Cingular) near you June, 2007.

The sucker ain't cheap - $499 - $599 depending on the storage and optional features which include:

1. 3.5" touch-screen with virtual keyboard
2. 2 megapixel camera
3. WIFI enabled
4. Runs OSX

MOTO RAZR - iPhone Announcement = Not-So-Cool-Anymore
... and before folks get hypersensitive (because we're entrepreneurs and we're babies), I have one.

What's interesting - all the Mac-afficianados out there who mocked up what they thought the iPhone would look like were DEAD WRONG.

Click here to see the What-Folks-Thought-the-iPhone-Would-Look-Like Gallery.

Whats the deal with GMAIL today?

This does not bode well for Google's attempt at convincing people to go with Google's online array of applications aimed at Microsoft Outlook, Excel, Word and PowerPoint.

Random: More Venture Capitalists

Rather than trying to keep track of random notes scribbled on random pieces of paper and then make sense of the notes (if I can even locate the paper) 4 months later, why not use the EG blog as my note pad.

That being said - here's some venture capitalists to add to the list of folks who invest in internet companies (namely "Web 2.0" communities):

1. Idealab:
   Invested in companies like CitySearch (prior to being purchased by InterActive Corporation), Picasa (Google desktop image management program), NetZero, Tickets.com, WeddingChannel.com
   
   Token Web 2.0 Company: InsiderPages - the investment amount is unknown - what IS known is that based on increasing competition from companies like Yelp! they've been forced to reduce their staff. Proof that VC's invest in all companies.
   
   
2. Sequoia Capital:
   Invested in companies like Adbrite, Zappos, GreenDot and Xcieve.
   
   Token "Content" (Web 2.0) Company: InsiderPages. Proof that even though most folks would tell you that venture capital isn't a suitable source of funding for web 2.0 companies, they pour money into them like they do everything else.
   
   
3. Softbank Capital Partners:
   Invested in companies like Yahoo!, www.spg.com (starwood hotels preferred guest program), Diamond.com
   
   Token Web 2.0 Company: InsiderPages. Wow! What a trend here.
   
   
4. Mobius Venture Capital:
   Invested in companies like Yahoo!, Geocities, Eloan, Verisign, E-Trade and Judy'sBook
   
   Token Web 2.0 Company: Judy'sBook. Yet another example of a Venture Capital firm that invested in early stage "content" and "Consumer and Small Business Services" companies.
   

"Why'd you post this Nadi?"

Two reasons: because I've decided to keep a running list of venture capital firms on this blog. And because when Sherna and I first "started out" (with the blog) we were looking at funding resources and talked to a few people who told us that VC's weren't the way to go. AND I still agree with that - not because VC's don't invest in web 2.0 "Content" companies like people told us, because they do - because we're not asking for enough $$$ and aren't providing enough equity to interest a VC and because we're not at the right stage in the life-of-our-company for a VC.

:whew:

Do with it what you will...and

Happy New Year!!!

For 2007:

So I'm sitting at home "working" (with Dr. Phil in the background) and he's talking about New Year's Resolutions.

Top 10 New Years Resolutions that people don't stick with:

5. To go back to school.

4. To find a new job.

3. To start a business.

2. To get married - I had a friend who actually said this once. A single friend at that. Somethin tells me this one only applies to the ladies
:sigh:

And the number one resolution that people make that people NEVER stick with

1. To lose weight. ...and you thought ALL the 24 Hour Fitness and Bally's commercials were a coincidence.

Why'd I write this post? Because Dr. Phil said something that made sense - why do people place so much emphasis on this arbitrary date (the start of a new year) as the catalyst for change.

And why did I fall into that trap?

Recently my partner and I have lost the bug - not the desire to start a business - but are finding ourselves overwhelmed by figuring out what to do FIRST. And our paralysis-by-analysis has caused us to do NOTHING. And as the year came to a close, I found myself saying "2007 will be the year". WHY??? Why am I waiting for some day in the future to make IT happen? Why not right now?

Well...either way, my procrastination can't last much longer because 2007 is here.

Let's make it a good one. :)

The Pitch: How Much is TOO Much?!

Guy Kawasaki says: 10/20/30. 10 slides. 20 minutes of talking time. No font smaller than 30 (or nothing smaller than half the age of the oldest person in the room listening to the pitch). And man, that last part - the 30 - is hard to do.

Work says: talking points should start with verbs.

We say: we're about 80% through our pitching presentation. And yes, we think its dope. But of course we think its dope, because its our pitch, we wrote it, it makes sense to us. The question is does it make sense to anyone else? And will make ENOUGH sense so that someone will be inspired to say "hmmm...ok, i might be interested in giving you that money you need".

Here's how our pitch is laid out:

1. Logo slide - because our logo is dope
   
2. Intro slide - includes overview of our company (the "mission" statement) and the contents of the other 9 slides
3. Approach slide - primary product
   
4. Approach slide - secondary product
   
5. Approach slide - primary and secondary benefits to our customers
6. Approach slide - the money machine behind our products
   
7. Marketing Madness - how we plan to conjure brand awareness (with our dope logo)
8. The Money Machine - more details on how we expect our site will generate money
   
   This is one of those areas that many VC's say will get blown to shreds, because few entrepreneurs really understand business models. So we're not sure on this one
9. Next steps - what we're looking for in terms of money and investment. A brief 3 month timeline of development and deployment and how to get in contact with us.

We're making some minor tweaks and should have this puppy ready for transmission by the end of the week (which is Tomorrow thanks to Turkey day! Did you buy your turkey??!).

We'll keep you posted.

1. 
   

Downward Spiral

So we've gotten some comments that the blog has slipped - and ya know what? The folks who posted those comments are right.

It has slipped.

Moment of honesty: we are again daunted by the cost of getting our company up and running. I can't speak for Sherna, but I'll speak for Nadi - I'm so ready to get this venture up and going. We have amazing logos. The folks we talk to about our idea, who might be able to help all have the same response "this could be big". Our startup costs, compared to a lot of internet based companies aren't THAT high - they're just high from the perspective of someone who makes $--,000 a year (less than six figures). We could easily get corporate partners and sponsors for some aspects of our company. AND it would allow us to do what we both want to do - Travel. (And Sherna wants to buy a beach house - and Nadi wants to hang out at Sherna's beach-house-in-the-making).

This time around we can't blame it on work, or blame it on being uber-busy (because its the holidays).

It is what it is.

But thanks to those who were honest to say "hey, this is not what it used to be - get back on track".

We're getting back in the saddle.

Come Fly USDelta Airways?!?

So I'm sure all of you have heard - US Airways put in an $8 BB bid for Delta - which would results in a hostile takeover that would create the 2nd largest carrier in number of passengers "ferried" and the largest carrier in number of flights and destinations offered.



Great. :sigh:

The chances that the new Delta would result in an airline that anyone would want to fly. SLIM.
The chances that the fares on the new Delta would result in an airline that anyone would want to fly. SLIM.
The chances that this merger will have ANY affect on consumers, aside from new planes to recognize in the sky. SLIM. (And hey - didn't we just go through that with US Airways. I mean aren't they wasting QUITE a bit of money repainting planes??).

I've got an idea. Let's make flying fun again.


Remember "back in the day" where flight attendants were actually young and attractive (men or women) and weren't disgruntled middle-aged people who took the job SOLELY for the flight benefits?? And remember when being a flight attendant was actually cool - little girls would want to be flight attendants until their feminist mommies said "no honey, you meant to say pilot RIGHT?!" And remember when going on vacation actually started with leaving the house to go to the airport - not once you plopped down in your hotel AT your destination (because the rental car situation is NO better)?!?

Don't get me wrong - being a flight attendant is a thankless job. You're basically there to save people's lives in the event of an accident (gravity anyone?). Yet you've got to deal with snobby consultants and "road warriors" who think they own $*@! [the world] because they are "executive platinum" or "1K" or "Gold Medallion" (hey wait - that's me). And then there's the people who DON'T fly, who don't understand that 2 carry on bags means 2 carry on bags - not your backpack, your 30" super suitcase, your softsided cooler full of snacks for the kids, the baby stroller AND your purse. And if one more person asks me if they can stick their crap in my leg room, because I was smart enough to count and consolidate, I will scream. :sigh:

But please - can someone make flying FUN again?!

2007 Predictions, What's Hot in 2007?

With 2007 approaching fast, the question of what's next is on everyone's mind. What will be hot in 2007, make your preditions here.

I'll get us going, leave a comment to make your prediction.

Hot in 2007:

Movie downloads
New music discovery tools


What's not:

Myspace (hey, it's gonna die eventually, i predict 2007)

$%#@ Politics

Is there anyone else out there who will be happy when the mid-term elections in the House and Senate are over?!?!

I'm so sick of my Simpsons' re-runs being interrupted with dumb smear campaign ads.

Politics today is a friggin joke. It's like a bunch of 5 year olds arguing over the handball at recess. And both sides are sad.

:::6 days and counting:::

Bang and Olufsen Mobile Phone Anyone?

Designer Bang and Olufsen hooks up with Samsung and the union results in a mobile phone that looks like my pop up alarm clock - they are calling it "Serene". Notice the numbers are in a circle, ah, design over function?

Nadi Says: You say Bang & Olufsen? I want to know how much. Just the fact that B&O is involved means this bad boy is NOT cheap. I wonder if it opens up when you wave your hand in front of it like their stereo receivers do.

Text Messages Coming to a Plasma Near You....

Sick of texting messages to only people you know? How about texting to everyone at your current location?? A new technology called Wiffiti is enabling people to send text messages to large flat panel displays in social venues such as cafes, bars and clubs. Not sure how i feel about this, but i suppose it could be fun if you happen to be in a bar with interesting people. My fear is it turns into a way for people to go around plugging random stuff and all the screens end up displaying ads for the latest web 2.0 company. One cool feature of Wiffiti is that it allows you to text the word "fade" to fade out existing messages. Who knows, maybe it'll evolve into a whole new way to ask the hot girl in the corner if she's single or if you can buy her a drink....Or, hey ass*ole, can you stop staring at my girl...



The first Wiffiti screen was installed in January 2006 at Someday Café in Boston, MA, a city that now has three other Wiffiti screens. Screens are now spreading rapidly, appearing in Chicago, Denver, Seattle, Knoxville, Boulder and New York.

Oh Yea

- From your neighborhood Entrepreneur Girls -

Who dressed up? As what?

Nadi: Roman (toga costume courtesy of Target's sale on Table Cloths)
Sherna: Nurse

Re-Introducing ShoutYard

Thanks Eric. Hey, if its unclear, its unclear. :)

We quickly realized that in trying to get a business off the ground there are tons of things people need, and tons of people, people need. We can't help you with the things. But maybe we, and other readers out there, can help you with the "people" part.

SO basically, if there's a contact that you need - shout it out (or leave us a comment and we'll shout it out on the blog). If you're cruising the "ShoutYard" and you come across a shout for someone that you know (or may know through some other degrees), leave us a comment and we'll shout it out. So basically we're using the 6 degrees of separation to get people in contact with the people they need.

You Say: But what about linkedin?

We Say: LinkedIn is a bunch of people looking for jobs and alums from their college. And linkedin isn't totally viable for the "unknown" entrepreneur. We like shoutyard better because it relies on the itty-bitty teeny-weeny (but growing) community we have here. And ShoutYard doesn't have all these crazy membership restrictions (HAHA) because we're not trying to make money off you trying to make connections. At least not yet. :)

So give it a try. Leave us a comment if you need/know someone.

ShoutYard! Shout and ShoutBack!

ShoutYard: Shout and ShoutBack

ShoutYard Today

Shouts: Need contact at LiveNation or House Of Blues
Reason: Partnership opportunity for concert promotion
Secondary Target: other concert promoters (Viejas Entertainment, TicketMaster etc)

Shouts: Need contact in Spy Optic's Marketing Department
Reason: Partnership opportunity
Secondary target: Other sunglasses retailer

Shouts: Need Contact at Golf Channel
Reason: Charity Golf Tournament in the Caribbean

Shouts: Looking for major sponsors for upcoming CD release of POP/Rock Indie Band
Reason: We're indie, need we say more. Just got off tour with Hilary Duff, help us launch! CD to feature special packaging with prime real estate for sponsors inside.... Build a stronger brand association by helping launch the artist- it's way cheaper!

Shouts: I really need some one in Marketing at Victoria Secrets Corporate
Reason: Major exposure campaign

If there's someone you want to shout, let us know - drop us a comment and we'll post it on the blog.You want it? Shout it out. Know someone/interested - SHOUT BACK!

Randomness: Hollyweird and Marriage

Why is it that NO ONE, and I repeat NO ONE, can stay married in Hollywood?? And before you fellas out there are about to roll their eyes and say "who cares", keep reading...

Ryan Philippe and Reese Witherspoon announced their separation. Why do I care? Because I liked them - both great actors (yes, female actresses are now referred to as ACTORS), they weren't all up in the limelight and seemed to be semi-normal.

The question is, is this whole not-being-able-to-stay-marrried-for-more-than-10-minutes stuff a Hollywood thing or syptomatic of something else? That contrary to popular opinion and the whole Republican mantra of marriage being a "sacred act between two people", that folks don't take marriage as seriously as they used to?! That its something to do, an excuse to have a party, where an expensive dress and receive gifts?!

Maybe Forbes had a point with the "not the marrying type" article. Not that women over 20 who are semi-educated and semi-ambitious shouldn't be desired, but that marriage is becoming more difficult to sustain, across the board?? That maybe we've all become jaded into what we think marriage is and isn't.

I mean really, if rich, beautiful people who receive free stuff (just think, you don't even have to BUY Valentine's Day Gifts or remember Anniversaries - just give him/her the free crap from the MTV awards - and by crap I mean a $10K Juice Couture doggy purse
or a Chrysler Crossfire) can't get it right, is there hope for the rest of us?! :::partially joking:::

Maybe the problem isn't the institution of marriage but what all of us think about marriage. Does the average 20 year old female dream of her wedding day, dress and bridesmaids - or is more about her career, her family, her 401K and her career prospects? Maybe the average 20 year old male isn't concerned with working to one day support a family, but is more interested in working to support the here-and-now - what moves him at this moment.

I can't help but wonder...

:::Sex and the City moment:::

When folks can't seem to stay married, is marriage the problem, or is it us and our changing "ideals"?

Introducing ShoutYard

You say: What's ShoutYard???

We say: ShoutYard - a place to Shout all things business. As entreprenuers, there are times when you just need a name, a number, a freakin "in" but have no clue how to find Mr. X, and frankly, cruising 411 looking for Mr. X's number isn't the best way to go:

Mr. X: "how'd you get my number????"
You: "Umm..T-Mobile's 411 and More?!?" *cheesy smile*

You search the net, you send random emails and get nothing. You get to the point where you just want to scream. Even if nothing comes of it, the shout - the release - somehow helps you feel better. Well, instead of shouting in your car - and you know you do - shout here. They say if you want something, put it out there. I know somebody, knows somebody, that knows somebody and everyone's on the net. I don't want to be added to your friend list, just shoutback...anonymous or not.

ShoutYard: we're going to start shouting out who we're trying to get in contact with to get ES off the ground. If you know these people or might have an in, let us know. If there's someone you want to shout, let us know - drop us a comment and we'll post it on the blog.

You want it? Shout it out.

Marketing: Tampax at Gamerorz Ball....Why??

MTVU recently launched their 2006 Gamerorz Ball Tour. For those not familiar, Gamerorz Ball tours college campuses and sets up environments that allow gamers to play new games, find out what's coming out and test new hardware. This year's Gamerorz Ball featured Tampax as one of it's sponsors, yup, they were present handing out tampons. Now, i may not be in the field of marketing for 10 years +, but... TAMPAX? LOL. The kick off tour date saw a 80/20 ratio of men to women. Hey Tampax - call us! LOL! Yes, females go to these events as well, but typically more men do, and women don't want to scope out tampons with a room full of men. In addition, men aren't going home to say, "hey honey, have you tried the new pearl tampon"..... whose bright idea was this..


Non-Sequitur: Please don't be Steve Erwin for halloween.

Business Major Rant!!!

:::this is about college majors, so if I offend anyone...oh well:::

A friend of the family directed her 18 year old son to me, who's getting ready to start college (Spring Semester, for those like "October?? Huh??"). He was curious about majors and what not and wanted some advice. Why he came to me ... who knows.

His First Choice: Communications. At which point I laughed.
Nadi: Why communications?
Boy: I don't know... it sounds interesting
Nadi: Go look on monsterfor jobs that ask for someone with a "Communcations, or similar background". "I'll give you $100 for each one you find".

And I especially laughed because when I was on my way out of high school, I wanted to be a communications major, and my folks laughed at me.

His Second Choice: Business. Note: yes, the kid is afraid of math - that much is obvious.

Here's where things get interesting, because I was a Business major. What is a business major?!?!

Unlike a lot of other majors where they teach you helpful methods of analysis or ways in which outcomes can be predicted - business is a "science" that's really not well understood. When articles and whatnot are published about the success of marketing techniques (i.e. Sherna's post on user-driven content), its not because the method is tried and true across the board, but simply is the result of an observed trend. "X number of companies were successful" "and all X companies used user driven content marketing" "maybe user driven content marketing is a path to marketing success". "Lets write about it and say it is".

What an undergraduate business major is:

• A schedule of courses designed to help students understand the BASIC analysis tools that businesses use to make decisions (financial accounting, managerial accounting, income statement, balance sheet, COGS)
• How to calculate basic profitability metrics: revenues, net income, depreciation, operating expenses etc
• Understanding some business math (and no the mess is not hard...get a damn calculator): present/future value of money etc.
• Marketing classes: the 4Ps (price, product, place, promotion)
• Management classes: waste of damn time
• IS classes: Excel, Word, PowerPoint, Access

What an undergraduate business major isn't:

• Courses in new business technology: Oracle, SAP, Hyperion, Lawson
• Courses in project management: MS Project, Visio (process re-engineering), Spreadsheet Modeling, Six Sigma (or other Quality Management)
• Courses in business strategy: real business strategy like product life cylce, new product introduction, logistics (Supply Chain Management), Customer Relationship Management etc
  

I've been out in the "business world" for about 3 years and I'm starting to wonder - what exactly was the goal of my undergraduate business major? I cheated - and took some Computer Science classes so I got the Java, SQL, PeopleSoft (Huh? What's that) experience in those classes, but without it, I don't know... how much of my undergraduate business major did I use?!

In theory, all the theory is great. But what about the practical side of things?! What about the practical side of things? Why aren't more schools spending time giving students those skills that you see in the "required" field on most Monster.com posting?

What's the point of a BUSINESS major?!