Basic Math Can Save You

I am often astonished by people that get caught up in minutia in their personal and business lives. These people search for answers everywhere when the basic answer at how to succeed in almost everything is something they learned in grade school.

Math.

Basic mathematics are the key to achieving all of your largest and smallest goals.

Let’s run through an example of this theory:

Entrepreneur A decides that he wants to follow his life long dream of opening a restaurant. He has worked in the industry for years and decides what he needs is a unique gimmick and lots of space to capitalize on volume. He decides to focus his menu on your standard Pub foods, and invests about $30,000 in television for the establishment. Based on his theme he also invests quite a bit on the bar. By month 6 of this restaurants existence the owner is $100,000 in the hole and decides what is needed is a revamped menu to attract more customers.

His restaurant is doomed.

Entrepreneur B decides to open a restaurant to follow her lifelong dream as well. She plans the menu, and creates a business plan based on a fixed price model. She knows her market so she can gauge that based on her style of cuisine she will attract an average of 3.5 people per table. She estimates her revenue per table at $75 and profit per table at $35. She wants to maintain profit of 20%. This leaves her $20 per seating to pay for utilities, rentals space, vendors, and marketing. She decides based on this that she will start her dream in a small 10 table bistro and focus on remaining profitable. She leaves the decor simple to maintain low maintenance costs, and uses foursquare, Groupon, and word of mouth to grow the foot traffic because she can get a CPA of $5 per table through these routes.

If you think Entrepreneur A doesn’t exist you are incredibly wrong. People who bank on their ideas more than the value those ideas will bring to consumers, and more importantly how profitable that value can become, are jumping into business ownership everyday. A good idea is just that, a good idea. It is nothing without basic math based planning that makes them tangible concepts.

A word of advice to people going into business relationships with people like Entrepreneur A, these are the types, that once they fail from the lack of planning begin playing the blame game. It is best to stay clear and brush up on your math for your next big opportunity.

Goal Creation has Changed Me

We all create goals.

Few of us reach goals.

I made a personal goal in 2008 to create an industry leading online marketing company. It took several years, and some AMAZING partners and clients, but we are there. I have also accomplished some strong personal goals in the last few years, but I have failed in reaching more goals then I have succeeded.

Recently I began dissecting what I did right and what I did wrong.

What I have come up with, with the help of a few recent books I have read (The 80/20 Principle and The Power of Less) is that my success came from large goals that I supported with micro-goals.

The “goal” of becoming the best online marketing company is as broad as it is vague. To shoot only for that is almost impossible. In order to do it I had to create micro-goals:

1) Create the original Search & Social with Jordan Kasteler. We wanted to offer companies a firm based on youthful, fresh ideas in online marketing. We worked hard to differentiate ourselves from the older, more established firms. It worked to get us in the game.

2) When we merged with Loren Baker’s Search Engine Journal, Inc. the goal was to make a real run at being the best linkbuilding company in the space. We wanted to do this through differentiated linkbuilding, i.e. blogger outreach, social media, content aggregation, and linkbait. We built commodities in a white hat fashion, in a way that had only been previously been accomplished in scale by less legitimate lini brokering
firms.

3) Second Step Search, which began in 2009, had the goal of creating scalable workflow solutions and reporting for SEOs and marketers. This included CopyPress.

4) The last step, the merger of BlueGlass, brought together all of the pieces into the final product that would allow us to achieve our original goal.

Breaking the micro-goals down further:

1) We entered the game and created a differentiation
2) We set out to become experts in one channel of a multi-channel market
3) We figured out how to scale other channels of that market
4) We merged with awesome marketers in those other channels to pull of the goal

By looking hard at these areas where I have succeeded I now know that in order to be successful I have to:

1) Create an overarching but tangible goal. Think big. $1 million in monthly widget sales recurring
2) Setup Micro-goals for this with deadlines. Lets say you want to achieve the $1million in monthly sales, first you should plan on a. creating a sales strategy b. hitting $250,000 a month in sales c. increasing sales force by 50%
3) Create daily tasks to help you reach the micro-goals. In the example above in order to hit my first micro-goal I need to a. do competitive analysis of the competitions sales strategy b. create a pricing structure based on this analysis c. create a sales funnel that meets or beats competitors.

By making this a daily activity, you work daily on achieving your dreams. The upside as well is that by dissecting items like this you know that you can get minor achievements accomplished without burning out chasing the big prize.

Young Entrepreneurs, 8 Things You Need to Know

1. Get Ready to be Broke

Tough lesson to learn. It gets even tougher when your company is actually generating revenue, but you need to reinvest it rather than take it off the table. Starting a company is about the long term investment, not the short term payoff. If you are focused in the short term, affiliate marketing or consulting is likely a better fit. These types of ventures allow you to run lucrative solo enterprises. If your goal is to build a company with a product or service that you are passionate about, then prepared for the early days of scraping.
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This Weeks Shocking Lessons in Business and Life

So this week was more of a roller coaster than usual, and like all things interesting in my life I figured I would share it.

Lesson # 1: Dante is a pimp in a tie

Dante looking awesome!

A bit of chest thumping, but whatever.

Lesson # 2: Transparency is KEY

This was probably the most cliche statement in 2009, so I am sure your eyes are rolling. BUT, what do you do when it is YOUR company that needs to be transparent. Not a hypothetical company, not a Fortune 500 , not a client … your company, the one paying your bills.

This week we had two issues arise with work we were contracted to do for clients. Both of them were honest mistakes, and the kind of issues that can happen to anyone, but we were at a cross roads with both clients. The issues were severe enough to warrant us being taken of the accounts. In reality, both issues were caused by circumstances that are not part of our everyday business, or that we even knew were going on (this lesson feeds more lessons to come). But that is the reality of doing business.

As a business owner do we cover our tracks, and do whatever it takes to keep the client?

No. Instead we chose to man up, take blame for our mistakes, offer swift actionable changes to benefit the client in the situation. Now by doing this we knew we were likely going to lose the account, however something interesting happened, the fact that we were transparent, willing to fix the situation, and provided excellent customer service in both cases caused the client to realize how safe there business actually was with us. We were not the company that was going to mess up, and leave them in the lurch, instead we were the company willing to protect them at all costs, despite our benefit or loss.

Lesson #3: When something is broke, FIX IT!

When your company is humming along and being profitable, it is sometimes hard to stop the machine to make repairs you know are necessary. With the above issues however, this month, we halted several of our process, and made massive overhauls in the middle of work. Very few companies would do this, but what we realized was that our mission has always been driven by Quality, in services and customer service, and if we have processes that aren’t giving our clients that one basic principles they must be scrapped and redesigned, from the ground up.

Lesson #4: If you want the most from your staff challenge them

As you can imagine the reinvention of process in our company was a huge undertaking for our staff, so I decided to sit out in the main work area yesterday to help them along. I was surprised, and delighted to see the aggressiveness and enthusiasm they had about tackling the challenge. It made me realize that the ingenuity if our staff is something we should harness via processes and not suppress. By creating challenging assignments, not only will it make the staff rise to new levels, but it will also produce the best quality services for the client.

Lesson #5: Google Doesn’t Understand Privacy

Seriously! This never came up in testing?

Lesson #6: Snyder men are dead sexy

A Lesson in Conversion from Disney World

My family and I spent part of the last week in Disney World’s Magic Kingdom and Epcot. As we made our way through each ride at the theme parks I began to realize a pattern:

Disney -
Photo by Express Monorail

1) Lines are setup to build up anticipation for the ride itself
2) The rides themselves are awesome, but only last mere moments, in most cases a fraction of what is spent waiting in line.
3) After every ride you are let off into a shop with themed items based around what you just experienced. The kids then go ape shit over stuffed dolls going for $50 a pop.

I began to see a pattern that can be utilized easily on the web

Conversion = Marketing + Branding + Quality Content

Use this as a layover for the web:

1) Create a great piece of content that appeals to the direct demographic of your products consumer. As an example this infographic by Billshrink.com is a great way for the company to draw interest from gadget types and phone consumers in general, then notice the ad on the right hand side.

2) Market this content in a way the builds your brand presence as well as traffic to your site. A holistic marketing campaign mashing search and social media. Zappos has done an amazing job of this, as well as Amazon.

3) Match products and offerings to people enjoying your content. Tripadvisor does an amazing job of this. People use the platform to scope out travel need sand reviews, and Tripadvisor then gives them the option to book. The content is the crux of the conversion experience.

Think about your website now, and your conversion rate. What are you missing from this equation? We work with a lot of site owners who have great products and we can build them traffic, but they are not willing to shape their site for the consumer experience. A simple change like adding reviews to your sites products can have a tremendous impact. Beyond that, brand building can turn customer acquisition into customer retention, and this is where real growth begins to compound.

Tools for Entrepreneurs: My Top 7

2009 was a big year for me, and that meant having to streamline my work, and figure out ways to be more productive with my time. Rolling into 2010 I have 7 key tools that I use on a daily basis that make my business life tick.

Evernote

Evernote

Photo by Patrick Haney

From Evernote.com

Our goal at Evernote is to give everyone the ability to easily capture any moment, idea, inspiration, or experience whenever they want using whichever device or platform they find most convenient, and then to make all of that information easy to find.

And we’ve done just that. From creating text and ink notes, to snapshots of whiteboards and wine labels, to clips of webpages, Evernote users can capture anything from their real and digital lives and find it all anytime.

Basically Evernote allows me to sync notes and files between my work desktop, laptop, and mobile device. This means regardless of where I am, I can work. I highly suggest the Windows desktop application and android application, despite the fact that the web based versions work very well.

Droid

From Engadget.com

So, is the DROID a good smartphone? Yes, the DROID is an excellent smartphone with many (if not all) of the features that a modern user would expect, and if you’re a Verizon customer, there probably isn’t a more action packed device on the network. That’s not to say the device doesn’t have its faults; the camera was unpleasant to use, the application selection feels thin in both quantity and quality (despite the claim of 10,000 options), and the phone has bits of basic, non-intuitive functionality that might chafe on some users after a while. But even still, it’s hard not to recommend the DROID to potential buyers eager to do more with their devices. It’s easily the best Android phone to date, and when you couple the revamped OS, Verizon’s killer network, and an industrial design straight from a gadget enthusiast’s fever-dream, it makes for a powerful concoction.

I owned the G1 and traded up for the Droid. I have never been happier with a mobile device purchase. The android market offers all of the apps I use daily, including Evernote, Meebo, and the built in integration with GDocs. The speed, screen, and Qwerty are all features I love, and are only made better by the addition of a kick ass camera and Verizon’s data service.

This thing has kicked my mobile production into a whole new gear, and probably made me an Android user for the long haul.

MiFi

vzw-mifi-review-03
Photo by nDevilTV

From CNET.com

the Verizon Wireless MiFi 2200 Intelligent Mobile Hotspot, which is manufactured by Novatel, is an excellent product. It’s a tiny device that offers instant Internet access to up to five Wi-Fi devices, virtually anywhere in the United States. This is the first of its kind that we’ve reviewed and we really liked it. If you travel for business in a group of five or less, this superportable router will come in handy.

This thing has changed the way I work. No longer is the business world tethered to physical locations, and with 90 days of travel in 2009 I can speak to that about as good as anyone. This device allows me, and any staff traveling with me to stay connected to our work at all times. No longer are we tied to the usability of conference WiFi, or searching for Hotspots. In fact, in our cross country move from Utah to Florida this year, this device allowed me to work all 5 days as though I were in an office. Add the stability of running on Verizon into the mix, and you have a winner.

If you don’t have one of these yet, run, don’t walk to get one now.

Moleskin Notebook

Moleskin
Photo by sendusout

So despite having all of my business ventures tied to the web, I am still the creative writing major, and love a good notebook I can hold and jot down ideas. For me, a moleskin notebook I can throw in my laptop bag is an asset. I use it for meetings and brainstorming sessions, when utilizing computers becomes an inconvenience.

Zoho

zinvoice
Photo by zolierdos

Search & Social and Second Step Search both run and thrive off of Zoho products. The software and apps they have put out can really streamline a lot of a service based businesses needs. We mostly utilize the invoicing, project management, and CRM solution. Without these web applications we would still be emailing excel sheet likely. The best part is the cross integration Zoho brings to the table between products. So whatever business we sign using the CRM, we can port directly into the invoice system for billing purposes.

Exchange Server/Outlook

This one may seem like a no brainer, but it was new to me this year. Exchange server allows you to sync your Outlook based life across mobile devices and multiple PCs. With the addition of VOIP, Fax, shared contacts, and share calendars this is a must have for any business.

Long Battery Life Laptop

So I had a decision to make in October. I was looking for a solid laptop, after having my second laptop in a year crap out on me. Should I make the leap to Apple? Should I search for a more stable PC? Windows 7 helped making the decision to stick with a PC easier. The OS is way more stable than Vista, and so with that in mind I looked for a new laptop.

I decided on a Toshiba Satellite , which isn’t overtly sexy, but with the addition of a 7 hour battery, it has made my work life amazingly more efficient. No longer is computing something I worry about. Having a long life battery means I can plugin my MiFi anywhere, open Evernote, login to Outlook/Exchange Server, and Zoho, and have a mobile office ready to run.

Ego is the death of success, not the product

To start, this post is more of a therapeutic exercise for me than anything.

In the last 12 months I have:

1. Seen our company grow from 2 dudes (Jordan Kasteler and I) to 12 full time employees, with a bunch of awesome clients

2. Worked with some awesome people to create another company that is launching called Second Step Search

3. Traveled all over the country and world speaking (over 90 days of travel booked in 2009)

In that process I lost myself.

It’s funny that when you begin to have success in some areas of life, no matter how minimal, you lose focus on others. The culprit was an ego that began to develop. It clouded my judgment, it changed my focus, and almost cost me my family.

The difficulty is that our society, and especially the Internet world, puts success on the same plane as ego. It is as though the two concepts are not to be separated, and penance is allowed for one because of the other.

This has become exceedingly clear to me in my travels this year, as I saw people even putting ego before success, figuring perhaps that a sheer projection of their own value is all that is need to accomplish goals. The concept to me seems to be nothing more then “fake it till you make it.”

But still, in July, I stood completely lost, thinking the world, and everyone in it revolved around my greatness. My breaking point is something that is private, and not really fodder for this blog, but it was life changing for me. Several realizations occurred based on this event:

1. In the grand scheme of this universe, time, and space, my small business accomplishments mean nothing. It’s a hard pill to swallow, but as people our legacies are not often formed from our career based actions. Actions themselves can form a legacy, but often these are not self serving. In the end, we will all be gone, and what we will be remembered for is what we gave to this world, not what we took from it. For me personally, I see my family as my legacy, and the reason I started down this path was to improve life for them, and enrich the possibilities for my sons.

2. If you feel you are already the best at whatever it is you do, you will be hard pressed to learn anything that will help you grow. This is a firm reality. If you are the smartest person in a room, who do you have to learn from? The answer is, everyone else in the room. This is a concept I really began to understand when I was teaching. I learned more in my time as a teacher than I have at any other singular time period in my life. Those kids taught me about life, relationships, how to create community, and a myriad of other lessons I still hold dear. Ego, stops this entire process. You have nothing left to learn because you are the best. Everyone’s opinions and ideas are inferior, so why even take them into account?

3. I had, since my time as a teacher, prided myself on my kindness towards other people. I had completely lost this. I no longer cared about anyone but myself. Who should I care about? I was the most important person I knew. The funny thing is that much of the success Search & Social has, has been based on the reputation Jordan, Loren, and myself have for being kind, stand up guys, that people wanted to establish working relationships with.

4. I had always been fiercely individual, and now was allowing myself to be put into a role everyone expected of me.

In the months following these realizations, I have done a ton of soul searching. In the end I realized, ego almost destroyed me. It was not the reason for my minimal success, it was an ugly bi-product. This realization is hard to swallow, but it saved me, and it is something I stay conscious of now as I navigate through my personal and professional life.

This is not to say people shouldn’t be proud. Pride in ones accomplishments is natural, and deserved, but there is a clear difference.

Pride is defined as -

1. A sense of one’s own proper dignity or value; self-respect.
2. Pleasure or satisfaction taken in an achievement, possession, or association

Ego is defined as –

1. The self, especially as distinct from the world and other selves.
2. In psychoanalysis, the division of the psyche that is conscious, most immediately controls thought and behavior, and is most in touch with external reality.
3. An exaggerated sense of self-importance; conceit.

Ego, by definition, is not reality, based on external factors, and self involved.

One of the biggest pieces of advice I can give to young entrepreneurs is to set aside time everyday to reflect on who you really are, and how that person has led to your successes or failures. By grounding yourself in that firm reality, you will find more success than you ever would falling into the trap of ego.

How to Be Profitable Online on the Rebound

This economy is allegedly rebounding.

That is despite a 10% unemployment rate.

Now is the time to make plans for personal wealth and expendable income returning to the American household. But where is the money to be made, and how does one make it?
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