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Resources for wannabe entrepreneurs!!
Chit-Chat / Your Interests Talk about your interests, ambitions, obsessions. Make friends over common interests - soccer, poetry or rock bands. It's time to lay back and relax, you don't have to make sense.

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Resources for wannabe entrepreneurs!! - 01-12-2005, 10:31 AM

"Here's to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes, the ones who see things differently. They're not fond of rules, and they have no respect for the status quo. You can quote them, disagree with them, glorify or villify them...about the only thing you can't do is ignore them, because they change things, they push the human race forward. And while some may see them as the crazy ones, we see genius, because the people who are crazy enough to think they can change the world are the ones who do."

- Apple Advert.


I am a wannabe entrepreneur. And I am sure there are many here like me. I am starting this thread to share whatever little stuff I have gathered about starting a small/medium sized business. Fellow PGites are welcome to share their articles/related info. Hope this helps someone somewhere dreaming to start up his/her own startup.


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Re: Resources for wannabe entrepreneurs!! - 01-12-2005, 10:34 AM

I Wish Someone Had Told Me...
We asked Inc. Inner City 100 CEOs and founders what they wish they'd known when they first started their companies. Read on to hear what they said -- and to see what you can learn from their experiences.
From: Inc.com | April 2001 By: Lisa Chadderdon
In the May issue of Inc., the magazine honors the top 100 inner city businesses of 2001. We wanted to hear more about what these companies and their owners learned during their entrepreneurial adventures. So we contacted a number of the Inner City 100 founders, and asked them this question: Looking back on the years since you founded your company, what do you wish you' d known then that you know now?
The responses were as varied as the companies that the founders represent. Some spoke of business plans, others of financing. Some talked about work and balance, while others discussed the importance of networking. But all seemed to agree on one thing: the entrepreneurial trail is one full of unknowns and unexpecteds -- as well as opportunities and excitement. In that spirit, we offer you a sampling of what these CEOs said they wish they' d known from the start.

Julie Robbins, President & Owner, Caribbean Shipping & Cold Storage
Inner City 100 ranking: #2
Company founded: 1993
If only I' d known...: It' s not easy to find trustworthy backers.
Advice: Choose your financial partners carefully.

I wish we had known how hard it was to find a good and trustworthy financial backer. When we went into business back in 1993, it was only [ my husband] and me. We were practically unemployed. We had very little money in the bank, and there was no collateral to put up for loans.
We' d been in business for several months when the vendor that we did all of our business with decided that we had to have a $300,000 letter of credit in order to do business with them anymore. It didn' t matter that we' d paid all of our bills on time -- they decided they had to have that letter of credit. Needless to say, we didn' t have it. As a result, we were forced to look for a partner, since none of the banks would lend us money without some sort of collateral. In the end, the partner we wound up with almost cost us the entire business: they ended up with 80% of the stock, and no risk. They took close to $4 million from our business, and then never even paid the most important vendor we had. To make a long story short, we ultimately resigned, and reopened under another name. This time we didn' t need a backer because we had bought a warehouse, and thus had plenty of collateral, as well as money to operate.
From all of that, and after a lengthy court battle, we learned that it isn' t easy to trust many people. You always have to carefully check out who you' re doing business with, especially when it comes to finding a financial partner or backer. If we had to do it all over again, we would have tried to come up with our own capital to get a line or letter of credit. But if you do have to find a backer, and can' t get a bank to offer you a line of credit, try asking some bankers for assistance in finding someone who may be interested in investing in a business venture. It seems that after you' ve been in business for a while, financial backers just start coming out of the woodwork. But if you haven' t been in business very long, business relationships can mean everything -- whether it' s customers, vendors, or bankers -- and you have to very, very carefully check out any possible financial partners.
Frank Tucker, President and CEO, Tucker Technology
Inner City 100 ranking: #6
Company founded: 1993
If only I' d known...: The end game is just as important to plan for as the starting-game.
Advice: Plan your exit strategy.

If I knew then what I know now, I would have thought much more carefully about my exit strategy for the company. I just wasn' t prepared for possible sale or merger opportunities. I was actually surprised recently at how little I' d actually done in the way of preparing for such opportunities. I' d thought about exit strategy a little bit, but I guess I thought that all the pieces would just fall naturally into place when the time came. I was wrong.
It' s kind of like buying a house. When you buy a home, you always think about what will happen in the future: Is it a good investment? Will you be able to sell it for more than you bought it for? A business is very similar -- but I never thought about it that way. I never really thought much about selling or merging. I was too busy trying to build a successful company to think about how everything might end up.
There are three things that I would have done to better prepare for possible exit opportunities.

First, I would have negotiated for better, longer-term contracts. Partnerships and contracts are one big part of what makes a business attractive to a potential buyer. If you' re locked into strong contracts, you put yourself in a stronger position.

Second, I would have focused more on building a strong management team. Like with contracts, a potential acquirer looks at the strength of the team that' s in place. I would have focused more heavily on my management personnel and infrastructure, rather than just on deals and myself as an individual owner.

Third, I would have better organized our paper filing procedures. We warehouse all of our files at the end of each year, with the exception of tax files, which remain in a permanent file in the office. To be prepared for merger or acquisition opportunities, we should have kept all of our contracts on site in that permanent file -- they' re as important as the tax files.
David Steffan, President, Precision Millwork
Inner City 100 ranking: #88
Company founded: 1993
If only I' d known...: Not all business is good business.
Advice: Learn to say "no" to work.

I wish I' d known that "No" is sometimes the right answer. In my business, we' re always looking for the next job. And far too often, we took work that we probably shouldn' t have. Sometimes it was priced too low, or the job was too difficult for our abilities. Sometimes we were already too busy with other jobs, or we took on a job that was with someone who we knew was a less-than-desirable customer. When those things happen, it overstresses the company, and each time it puts you and your company more out of balance, and brings you a little closer to that proverbial last straw.
It' s hard to turn down work -- especially in the early stages of a business. You' re always concerned about where the next job is coming from. But business should always be win-win -- for you and for your customer. At the beginning stages, it' s easy as an owner to be out of balance: you' re far more focused on your customer than on yourself. Slowly, though, you gain confidence. For us, it took several years to reach the point where we could turn down a job. Even now, it' s definitely not an easy task -- it' s never easy to turn down work, no matter what business you' re in. But I' ve found that it pays to remember that not all business is good business.
There' s no easy way to learn to be more comfortable saying "no" when that' s really the best thing for you and your company. Trust your instincts, though. Take the confidence and strength that it took to start your business to begin with, and use it. With time and experience, it gets easier to trust yourself more fully, and to apply a stricter discipline to what work you take on -- and what work you can turn down.
Gary Fails, President, City Theatrical Inc
Inner City 100 ranking: #52
Company founded: 1986
If only I' d known...: A lot of things!
Advice: Don' t underestimate the business know-how you' ll need.

I started my business without one bit of business knowledge or experience, and learned every lesson the hardest way possible. Now at age 49, I'm enrolled in Columbia University's Executive MBA program and I'm learning the skills to continue to grow and manage my company.
If I was starting over, or starting another business, there are quite a few things that I would do that I didn't do when first starting out:
1. Write a business plan. (I had no idea where my business was going for several years in the beginning.)
2. Use knowledgeable people as advisors. (I was too isolated.)
3. Acquire all the capital needed to get fully underway. (I tried to finance 40% per year growth out of cash flow.)
4. Understand the financials. (Learn the difference between cashflow and building wealth.)
5. Think big. (Think national and international as soon as possible.)
6. Hire the best people, using equity if necessary. (I tried to do too much myself.)
7. Don't be a tightrope walker. (Be careful of the level of risk you assume. My risk often was too large.)
8. Don't always rely on your gut instincts. (Get trained in business, or hire people who are.)

Of course, I violated every one of these principles and still grew my company at record speed through boldness and hard work. Someone with more business skills may well have done it faster -- and with much less risk.
Brenda Hill-Riggins, President, M.A.R.S. Plumbing
Inner City 100 ranking: #23
If only I' d known...: Networking is an art.
Advice: Learn how to take best advantage of networking opportunities.

I wish I' d known more about the art of networking. I wish I' d had someone who could teach me more about how to network, and what it takes to take advantage of networking situations. There' s a difference between passing business cards back and forth and having an agenda that helps you understand what you really want from people and what you can offer them in return. Networking is really all about salesmanship. Like a salesperson, you need to be properly prepared for opportunities where you can sell yourself or your business. There are lots of easy ways to improve your networking opportunities and skills:
Don' t join just your local Chamber of Commerce. Join industry associations as well. The people there will be more likely to provide easier and better networking opportunities because they' re familiar with your business and industry specifically.
Have an agenda when you go to conferences or gatherings -- know what you plan to get out of them ahead of time. Have an action plan and goal. Be specific when you approach people to meet them and talk with them -- tell them who you are and why you think you should know each other. Before you go to a conference, find out who' s going to be there, figure out if you can help them, and decide if you think any of them might be able to help you. Always have a brochure in your pocket -- not just a business card. Have your 30-second pitch prepared at all times. Step out of your comfort zone when you' re there and talk to people who you don' t already know. I' ve gone to so many meetings and conferences where people just stood around in groups with people they already know. That' s not how to network effectively. It' s not as easy or comfortable to go up to strangers, but that' s what networking is about.
Seek out larger companies who are willing to share some of their knowledge base with you -- who are willing to share information about their infrastructure with you. Often what small companies need is a larger company who will share information about how they set up their infrastructure.


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Re: Resources for wannabe entrepreneurs!! - 01-12-2005, 11:01 AM

here is one quick link http://www.zeromillion.com/ but enterpreuners dont follow any one's ideas might be they can twist them little dekho kucchh kaam aata hai kyaa?


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Re: Resources for wannabe entrepreneurs!! - 01-12-2005, 11:05 AM

Maybe pagalguy aka allwin can throw some light on this........


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Re: Resources for wannabe entrepreneurs!! - 01-12-2005, 03:10 PM

Planning for Chaos in a Start-Up
No matter how you prepare, unexpected problems will erupt in your new start-up. In this excerpt from How to Really Start Your Own Business, longtime entrepreneurs say to plan as best you can, offer the best service, and be open to whatever surprises may happen.
From: How to Really Start Your Own Business | December 1999 By: David E. Gumpert
No matter how hard you try to prepare, unexpected problems will erupt in your new start-up. In this excerpt from How to Really Start Your Own Business, longtime entrepreneurs say to plan as best you can, offer the best service, and be open to whatever surprises happen along the way.
  • Be prepared for the unexpected. There's an old saying in business: "Whatever can go wrong will go wrong." Somehow, it seems to happen in the first few days of many new businesses. You open your restaurant, and at 7:30 p.m., just at the height of the dinner hour, there's a power failure. Or a customer has a heart attack. Or the health inspector arrives with complaints. Or any of a hundred other things go wrong.
    I know of people in the direct-mail business who have brought their first 20,000 or 50,000 promotional letters to the post office for mailing and discovered that the address area or indicia on the envelopes didn't conform to postal regulations. Everything had to be redone at an unbearable cost in money and time.
    As Mo Siegel, founder of Celestial Seasonings, puts it: "Things are going to happen to you that you never expected. You have to count on that and you have to be flexible enough to move around it, or you are going to run into a brick wall and not get past it."
    According to David Liederman, founder of David's Cookies, a chain of chocolate-chip cookie stores, "I deal with the bad news theory of business. I never ask what is right. I only ask what is wrong. Because you have to be able to fix what's wrong before you sit back and open up a bottle of champagne and say, 'I did something right today.' "
There are two lessons in this observation:
  1. Be detail oriented. Business success is in many respects a result of doing the little things right. The more details you can anticipate doing, the more potential problems you are likely to head off.
  2. Keep your cool. If things go wrong early on, remember that you aren't alone in having unfortunate things happen to you.
  • Plan your initial efforts carefully. Putting together a written business plan is very important. But beyond having a document that sets out plans and objectives looking ahead three to five years, it is important to know exactly what you want to accomplish during the first few weeks and months you are open for business. That critical time period can make or break your company.
    Says James Lowry, founder of James A. Lowry Associates, a Chicago-based consulting firm: "I recommend putting on a piece of paper what are the three to five things that you are going to try to accomplish -- today, this week, this quarter, this year -- and then work back from those objectives. You start building back in terms of allocation of your time and allocation of your people's time and in some cases allocation of the client's time to make sure you can accomplish all the things you set out to do in a given time. That is what I really stress with all my people. Set deadlines. Set tough deadlines. Be very realistic about what you can or cannot do within a period of time."
  • Focus on service. Even if you are not in what is categorized as a service business, you need to focus on providing your customers with a level of service that will make a favorable impression. That means doing what you say you are going to do, when you say you are going to do it.
    But in today's supercompetitive world, it often means even more than what you might think would be acceptable. One successful entrepreneur in a service business described his company's challenge this way: "I don't want customers to simply be satisfied with the service we provide. I want them to be ecstatic."
    He was taking note of a subtle shift in customers' expectations. They want what you promise -- and then some. They want to be pleasantly surprised about your people's attitude, product performance, price, or some other unforeseen benefits. You need to think constantly about ways to pleasantly surprise them.
    You also need to inquire constantly about what customers like and don't like about what you provide. And you need to obtain the same feedback from prospects who don't buy.
This material was excerpted from Chapter 10 of How to Really Start Your Own Business, by David E. Gumpert.

Copyright © 1996 Goldhirsh Group Inc.


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Re: Resources for wannabe entrepreneurs!! - 01-12-2005, 11:37 PM

Great thread...

Hope to be an entreprenuer one day... ...

Hey StupidDream your idea to start this thread is to learn from other's experiences or to discuss those vague business ideas that would be bubbling your mind ??

~ Gulshan


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Re: Resources for wannabe entrepreneurs!! - 02-12-2005, 10:12 AM

Quote:
Originally Posted by ohmygoditsgulu
Great thread...

Hope to be an entreprenuer one day... ...

Hey StupidDream your idea to start this thread is to learn from other's experiences or to discuss those vague business ideas that would be bubbling your mind ??

~ Gulshan
I do have some ideas....but I started this thread to discuss more about the implementation part of going solo.

Would really appreciate if anyone could throw some light on Law and VC's in the Indian context. I am a big ZERO in business law. As far as VC's are concerned......I "guess" they fund only tech startups which would give them a sizeable Return On Investment... Visited some Indian VC websites and that is what I could gather.

My posts will generally be aimed at the soloist starting up from home.......'cause I guess a majority of people start that way.


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Re: Resources for wannabe entrepreneurs!! - 02-12-2005, 10:29 AM

abhi who is the better person than allwin to help youinthis context... am seriously waiting for his arrival here and have some serious discussion


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Re: Resources for wannabe entrepreneurs!! - 02-12-2005, 03:43 PM

Clients You Can Live Without
Just because a client is difficult doesn't mean you have to write off your business relationship. Independent professionals give advice about working with prima donnas.
From: 1099 | June 1999 By: Dennis Barker


The big client, menacing, stands up like De Niro in the baseball bat scene from The Untouchables. He walks down to the end of the conference table, where the consultant sits twitching nervously, and picks up a glass pitcher filled with ice water. Then he dumps it on the consultant's head. "Your proposal is the most lame-brained idea I've ever heard," the client says. "Get out."
Fortunately, this never happened, and isn't likely to: even moody clients don't usually unload gangster-style. No, bad clients aggravate IPs in other ways: with late payments, non-payments, lack of focus, and freakish spasms of hyper-control.
The most difficult client, the one that can make the corporate cubicle look downright utopian, has to be the nonpaying client, followed closely by the slow-paying client. Most bad-client situations merely ruffle your feathers, tarnish your ego -- but these types threaten your business.
Pam Watson, a marketing strategist who's been an IP for more than three years, says her absolute worst problem-client was a big company that wouldn't pony up. As if tardy payment weren't bad enough, Watson had been paying vendors for expensive services on the client's behalf.
"I got on a plane and went out and saw them," Watson recalls. "I needed to see them face to face. I sat down with them and they agreed and apologized and still didn't pay. This situation went on for about five months - really, really difficult. It put my business in a bind. They were happy with the work, but I was dealing with someone who was not a good manager. She got my invoices and put them in a pending file. It finally got to the point where I said, 'I can't work for you unless you pay up front.'"
What's Watson's advice for dealing with delinquents? "Put procedures in place. Because that's what they need." If that doesn't work, maybe it's time for a face-to-face meeting.
Next is the client who wants free advice. This is often an acquaintance or "friend." Bob Pettegrew, a marketing and sales consultant, knew a guy who had his own business and needed help improving his marketing strategy. They had several meetings to develop plans. Then they had some more meetings. "He would call me up at 8 p.m. and say, 'Let's meet for coffee and talk,'" Pettegrew recalls. "Well, this went on for two or three months. Being newly out on my own, I was afraid to cut it off. But finally I sent him a bill. He called and said he was 'shocked.' He was totally indignant. Ultimately he sent me a check for about a fifth of what the invoice was for."
Now Pettegrew tells clients at the first meeting that the clock is ticking.

Mark Twain Trumps a Power Play
Ken Richters, a self-described member of "the growing ranks of the self-unemployed," is a professional actor who does TV commercials, voice-overs, and speech coaching. He frequently portrays Mark Twain.
Hired to speak as Twain at a Fortune 500 corporation's national convention, Richters arrived to find out that the company's meeting planner was not happy that Twain was on the program. Twain's after-banquet appearance had been suggested by a senior executive, but the meeting planner still didn't think it was a good idea.
"During the dinner," Richters recalls, "the meeting planner called me aside and told me the night seemed to be running long, that he decided to change the program. Rather than close the evening with a 40-minute address, I would speak before the chairman did, for no more than 15 minutes. A classic power play." The meeting planner whispered his program change into the chairman's ear and handed a note to the master of ceremonies. "Twain" spoke for 15 minutes. "The audience laughed - a lot," Richters says. "They laughed more than usual because the rest of the program that night had been dry and boring."
The chairman came on next, and spoke for about ten minutes. "Then, without warning," says Richters, "he looked at the audience and said, 'Is anyone as bored with me as I am?' He asked if Mark Twain might get up and say a few more words. I did another 20 minutes, followed by a five-minute standing ovation."
Richters says he has learned to deal with such power clashes. "Ten years ago I would have complained. Ten years ago I would have felt the need to show the meeting planner that he was making a mistake. Ten years ago I would have ignored his instructions, given my original address of 40 minutes, and shown the meeting planner who was in charge. Ten years ago I was a jerk."

Even Though You're the Expert, I'll Tell You How to Do It
Tom Cooper, a publishing consultant specializing in magazine circulation, says his toughest client was a publisher who turned out to be a control freak. The publisher -- "Mr. P." -- wanted to attract more readers to his magazine. To this end, Cooper was supposed to create promotional material to send to prospective subscribers. Unfortunately, Mr. P "had very limited circulation experience yet very definite ideas on how it should be done," Cooper says. "I took the assignment because I figured once we began the process, he would realize the arcane nature of circulation and I would be given the freedom and authority to get the job done. I expect my clients to have involvement in the central message and correctness of the copy, but to leave it to me to handle the packaging of the message." Mr. P., however, granted little freedom. Before long, he made a big issue of a semantical nuance in the promotional copy and insisted that Cooper have it reprinted at no extra charge. Then Mr. P. refused to pay for the original printing -- and Cooper ate the cost.
Five months later, Mr. P. decided to change the terms of the original agreement by reducing Cooper's compensation and the scope of his involvement. Next, Mr. P. announced he would hire a circulation person for Cooper to train. At this point, Cooper says, he deemed the relationship beyond salvage and invoked the termination clause. "If this publisher had had a proper understanding of how to work with a consultant, he would have known he was buying expertise, not a temporary employee. The need to be in total control will always make it difficult for him to work with independent people." In the end, Mr. P. lost his consultant, but Cooper regained his freedom.

The Boss Who Comes in from the Cold
"I develop good relationships with the people I work directly with," says Rick Witsell, who has worked for 10 years as an IP doing marketing planning, advertising collateral, and investor relations. "Where problems develop is when [ my clients] have to deal with their boss. I've had executives who didn't want any real involvement in the project, but when they saw the copy, they suddenly turned into copywriters and started writing headlines."
Other clients meddle dangerously from the start. They decide you should give the design job to a sister-in-law who went to art school, "or they want you to work with an in-house group whose incompetence is the reason they went outside in the first place," Witsell says. "Work as high up the food chain as you can. Otherwise you might develop a great solution and then the boss breezes in and doesn't like it. The important thing is to try to work with the ultimate decision maker."

The Remote Client
Then there's the executive who wants to be involved in all the decision making, but is too busy to make all the decisions. Doug Webster, an IP public relations specialist, said one of his most difficult projects was for a company with an elusive top executive. Webster had been hired to handle press relations for the company and its chief, and needed to have ready access to the executive -- especially when reporters called. "I needed timely responses, and it was frustrating trying to get answers," Webster says. "When I did get in touch with [ the elusive executive] , it was hard to get much time with him. He wanted to be the company spokesman, but business issues were more important to him than talking to the press.
"Finally we resolved things by his willingness to delegate decision making to the next level down. We reached agreement on what to do when he was not available, and I was given more autonomy."

The Crazy Startup
"Startups are the worst," Pam Watson warns. "You have a company going a zillion miles a minute, and you can't get them to make a decision on anything. They're always flipping out and in panic mode." Watson has taken on startup clients who hired her because they needed her marketing expertise, but were afraid to act on her advice.
"Usually you have multiple captains at the helm. It's like dealing with someone who has multiple personalities. It becomes very tough to get them under control. Plus, they're really afraid. They're operating from a level of fear. They're afraid to spend the money, afraid not to spend the money. It's crazy."
Watson spent an entire day at the office of one client, a new ISP, helping to decide how to price the service. "You kind of reiterate what they already know and tell them it's okay to take the next step. Clients like this require a lot of time."
Pithily, Rick Witsell advises to "avoid starry-eyed entrepreneurs."

The Client Is Allowed to Be Difficult
Difficult clients are out there. Sooner or later you'll meet one. Or another. Just remember that you're dealing with a human being, a person who's probably under a lot of pressure from a boss, a budget, a deadline. Whatever you do, don't be the jerk. If you want to succeed as an IP, take Tom Cooper's advice: "Unless you are pretty incredible at what you do, and the world really needs you, don't get a reputation as a difficult consultant."

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Re: Resources for wannabe entrepreneurs!! - 03-12-2005, 05:33 PM

Finance/Accounting/Bookkeeping basics.

For finance duds like me: Finances.pdf


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