Archive for the ‘Bootstrapping’ Category
Friday, February 26, 2010 | Written by Erik Rostad
Posted under: Bootstrapping, Creativity and Ideation |
Tags: business idea, craigslist, low-risk entrepreneurship |
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We at The Entrepreneur School are all about starting businesses that require little start up costs. One way to search for these types of businesses is to pay attention to what your friends, family, and colleagues are asking about, are discouraged about, or need help with and see if you can assist them for a small cut.
One need I see over and over is helping people sell things online. I come across people quite often who are cash-strapped and would be greatly assisted financially if they could sell or rent something they own. Take something as big as a house, condo, or apartment. Do you know anyone losing sleep over their inability to sell their house? Instead of trying to sell the house in a down market, why not try to rent it out and let someone else pay your mortgage? Well, there are many people who don’t know how to list their place on Craigslist or on a rental site. I have rented out my condo twice only using Craigslist.
Or what about some extra furniture. I just got married and had some furniture I needed to sell. It took very little time to sell the items on Craigslist. I recently sold an unnecessary wireless router on eBay. And I even advertise my violin playing online through Google Ads.
Do you see the business opportunity here? Pay attention to your friends and family and what they need to sell right now. Help them sell or rent something they own and take a 10 – 20% cut of the sale. No start up costs. Very little risk. A nice little addition to your income stream while you help out your family and friends.
Send me a reply comment if you need help selling or renting anything you own in the Atlanta area.
Tags: business idea, craigslist, low-risk entrepreneurship | Posted under Bootstrapping, Creativity and Ideation | No Comments
Tuesday, January 26, 2010 | Written by Jacob Dearolph
Posted under: Bootstrapping, Business Partners, Creativity and Ideation, Entrepreneurship Quotes, Entrepreneurship Stories, General Thoughts, The Entrepreneur School |
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1 Comment
We are currently at the University of Georgia with Jim and Chris. They are answering questions on entrepreneurship for a group of students. We are filming the Q&A series as it will be apart of The Entrepreneur School.
I’ve listed the questions below along with some highlights from the answers.
1. How was the transition from working for Coke to Entrepreneur?
2. How would you advise a student who is transitioning from Undergrad to either entrepreneurship or a grad degree?
3. If spending a great deal of money on a startup raises risk how do you start a business with little captial? Even as a student?
4. Should I work for an entreprneur or start slow and small on my own?
5. If I am only going to spend 5k-10k where would I spend the money?
6. How do I get the idea in the first place?
7. What are some necessary legal aspects of starting a business?
8. How do you choose a business partner and selection of equity for each?
9. Does bartering work for bootstrapping?
10. How do you determine what is a good deal with web programming?
11. Are there differences between what you are saying here for an independent contractor?
12. How does a web marketer or service business entrepreneur advertise itself?
13. When should you start paying yourself?
14. You’ve both started businesses where you were the originated the idea how did you bring in people who you could trust; instill the idea; etc…?
15. What are you 1 or 2 reasons for success or failure?
Tuesday, January 5, 2010 | Written by Erik Rostad
Posted under: Angels, Banking, Bootstrapping, General Thoughts, The Entrepreneur School, Total Entrepreneurial Activity, Venture Capital |
Tags: babson, Bootstrapping, entrepreneurship in 2010, entrepreneurship predictions |
1 Comment
2010 will be the Year of the Bootstrapper. It will be the year of the Entrepreneur who can figure out how to do the most with the least.
2009 was a bad year for entrepreneurs. Most predictions for 2010 show a slight improvement in conditions and funding, but still, a difficult time to start a business. But we at The Entrepreneur School believe that now is as good a time as any to start your business.
The Wall Street Journal had a great article this morning covering the different funding avenues available for Start-ups:
Angel Investors
Angel funds fell by 30% in the 1st half of 2009. Predictions are that Angel funds will stay flat in 2010. An interesting fact about angel funds is that even though the total dollar amount invested has decreased, the number of start-ups funded has increased. Fewer dollars for more entrepreneurs. The bootstrappers will win.
Venture Capital
Average deal size in the 1st half of 2009 was $5.7 million compared to $7.5 million + average from 2005 – 2008. Venture Capitalists are saving their money for companies in the late stages of development or are giving more funds to companies already in their current portfolios. Bootstrappers will be a step ahead by not having to wait on the dwindling number of venture funds to come through and will also retain more of their company.
SBA Loans
Less than 45,000 SBA loans were approved from Sept ‘08 – Sept ‘09, which is 36% lower than the year before. Right now, SBA loans only make up 1% of start-up lending. This is expected to increase to 5 – 10% in the near future due to the government’s stimulus packages.
The end of the article describes how Babson College, which is one of the elite entrepreneurship universities in the world, estimates that the average entrepreneur needs $65,000 to get their business up and running. In this economy, with savings accounts, nest eggs, and house values in disarray, it will be difficult for most entrepreneurs to come up with $65,000.
We at The Entrepreneur School teach ways to start businesses for much less than $65,000. There are a number of businesses that can be started where Bootstrapping is considered for each aspect of the business. One of Babson’s professors, Dr. Zacharakis states this in another way:
“Instead of capital infusions, there might be a lot more exchanges of services or trading favors.”
Take a look at the first set of entrepreneurship lessons at The Entrepreneur School.
All info and statistics for this blog post were gathered from The Wall Street Journal on Tuesday, January 5th, 2010.
Monday, January 4, 2010 | Written by Jacob Dearolph
Posted under: Bootstrapping, Uncategorized |
Tags: Communication, Costs, Phones, Saving Money, Skype |
10 Comments
As a person starting a business it is absolutely necessary to sell and to watch costs. Thus, you must use Skype for part of your phone services.
I just extended my Skype number for a year for $30.00. Basically, this is unlimited time on a phone to call any number in the US or within Skype. I can roll the line to any number I want. I get voicemail. All this for $2.50 a month. Nothing beats this.
If you have good internet access I would advise to switch immediately and start saving $$$.
Tags: Communication, Costs, Phones, Saving Money, Skype | Posted under Bootstrapping, Uncategorized | 10 Comments
Saturday, December 26, 2009 | Written by Erik Rostad
Posted under: Bootstrapping, Entrepreneurship Stories |
Tags: creative solutions, dry erase boards, entrepreneur stories, ideapaint |
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Need some space to write down all of your business ideas? So did John Goscha when he was a Freshman at Babson College in Boston. John and two other friends, Jeff Avallon and Morgen Newman wanted to be able to write out all of their business plans on a white board big enough to cover a wall.
When the went to the store, they realized that most large white board solutions are extremely expensive. So, they went looking for a white board paint. When they couldn’t find any paint on the market, they decided to develop a paint themselves.
After 6 years of perfecting the paint solution, they released IdeaPaint. Since the launch, major players such as Comedy Central, the CIA, and MTV use the paint-on dry erase board for mapping out ideas, business plans, and show schedules.
For bootstrapping entrepreneurs, this dry erase board solution is much cheaper than purchasing a large board. At $4/sq ft., you could plaster your 5 sq ft wall for just $20 compared to similar solutions starting at $70. Just one quart of the paint covers 50 sq. ft. And you can purchase directly from their website – www.ideapaint.com/site/shop_work.html
Additionally, the paint is environmentally friendly and contains no formaldehyde. It is also very easy to remove with a little scuffing, priming and repainting.
Check out what founder Jeff Avallon had to say about the product:
“We not only were starting a business, but also a whole new product category. We’re trying to sell something different—a tool for innovation, a total dynamic environment, not just a dry-erase product.”
Click here to watch a recent feature in Forbes.
Tags: creative solutions, dry erase boards, entrepreneur stories, ideapaint | Posted under Bootstrapping, Entrepreneurship Stories | No Comments
Saturday, October 24, 2009 | Written by Jim Beach
Posted under: Angels, Bootstrapping |
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No Comments
Recently, we have pointed out the horrible nature of angel investing help organizations, those guys that charge you $500 to $5,000 for advice on how to raise angel money and then introductions to some angels. These groups almost never help land funds, and the unwitting entrepreneur can spend lots of time and money chasing a dream.
So today, I wanted to tell you about a new, exciting, safe way to raise funds. This method probably wont be useful to raise $100,000, but if you need $10,000 or so, it would be a great bet for you. Fred Anderson, from Atlanta, was interested in starting a car inspection center. He tried banks and other traditional outlets, but was not able to find the resources. So, he placed an ad on Kiva.org and soon had raised the needed $7,000 from almost 200 investors in 15 countries.
Kiva.org was designed to provide micro-financing for super-small businesses in poor countries like India. You can go on Kiva, see listings of hundreds of small businesses around the world, and invest in companies that appeal to you. You invest as much or as
little as you wish, even just $25. And, incredibly, the default rate on loans like this is very small, usually less than 2%. Its a great way to help the poor and a powerful website. The site now allows U.S. based firms to list their opportunities too, which is how Fred was able to get involved. If you want to start a small business here in the U.S., we recommend giving kiva a try……
Posted under Angels, Bootstrapping | No Comments
Friday, October 23, 2009 | Written by Erik Rostad
Posted under: Blog, Bootstrapping, Podcasting, The Entrepreneur School |
Tags: how to start a podcast, Podcasting, podpress, turn blog into podcast |
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The Entrepreneur School Podcast Channel
I was speaking with a friend yesterday who runs an excellent blog. He writes 2-3 times a day and the content is outstanding. It’s so good that I recommended that he try another outlet alongside his blog. I recommended that he begin recording his blog posts in order to send them out as podcasts.
Most people spend hours a week in their car and have more time to listen to content instead of reading content. Are you reaching those people?
These days, podcasting has become almost too easy. All you need is a basic microphone (standard on most laptops now days), recording software (available free on Mac’s (GarageBand), and a way to upload your files online. If you have a Wordpress.org blog, you can download the Podpress Plugin and set yourself up so that after recording yourself reading the blog you just wrote, you can easily post the audio file within your blog in a very sleek looking Flash-based player. And if you set things up correctly with iTunes, Podpress will send your podcast directly to the iTunes podcast section to be searched all over the United States.
The Entrepreneur School loves testing these new ways of communication because we know how important they are to bootstrapping entrepreneurs trying to get the word out in every way possible. We just got our own iTunes channel for this blog. So if you prefer listening to reading, you can click on the following link to go to the new Entrepreneur School iTunes Podcast Channel.
But I need to warn you. If you are the type of blogger whose most recent post was from July and the recent one before that was from February, podcasting is not for you. The idea, (as well as the idea for your blog), is to keep momentum going so that the people who subscribe to feeds from your blog or podcast are satisfied daily. And be sure to provide interesting and relevant content. If you are just making advertisements, good luck getting followers.
Tags: how to start a podcast, Podcasting, podpress, turn blog into podcast | Posted under Blog, Bootstrapping, Podcasting, The Entrepreneur School | No Comments
Wednesday, October 21, 2009 | Written by Jim Beach
Posted under: Bootstrapping, Entrepreneurship Stories |
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An ex-student of mine has come up with a great product that I wanted to show you.
Phil Wilheit created a product (and has it made right here in the US) that is similar to the CornHole game many kids and college students play. It is called TargetMatz and is played by throwing discs at two targets placed 18 feet apart. Depending on where your disc lands, you score points, sort of like Shuffle Board. The mats roll up and are easily stored in an accompanying carrying case. Order your set at TargetMatz.com. He has other versions (like a football looking game) coming out soon.
Phil did so many things right. Not a totally new idea, but a creative adaption of something we are already familiar with. Small start up costs. Working with a partner that can help with production and reduce start-up costs. Viral marketing by telling your friends, asking friends to blog about it, and going to college tailgate parties to show it off. Grow the business organically over time. I love it.
Absolutely the right way to start a company in today’s market.
Posted under Bootstrapping, Entrepreneurship Stories | No Comments
Monday, October 19, 2009 | Written by Erik Rostad
Posted under: Bootstrapping, Creativity and Ideation |
Tags: lost job, new skill sets, outsourcing, Technology, unemployment rate |
2 Comments
The latest stats say that 9.5% of Americans are unemployed. Many of these people had jobs that no longer exist or exist in another country. And interestingly enough, their children will likely have job duties that they could never dream possible. No one would have believed you 20 years ago if you told them you would one day be in charge of online social networking for a Fortune 500 Company.
My point here is that the job market is changing. Rapidly. I currently design websites for a number of small – medium sized businesses and I am convinced that I will no longer have work desigining websites a few years from now. There are programs that make website design so easy that I think it will only be a few more years until website design will be so simple that 2 year olds will begin putting up their own sites.
If I can see that future ahead, what am I spending my time on now knowing that website design is a dying field? Am I learning new techniques for .html design? Sure, in the day to day process. But am I spending the majority of my time on learning a skill that can be done elsewhere? I hope not.
The way that jobs are done elsewhere is through improvements in technology and through outsourcing (production in another country with cheaper labor, higher skills, or both). Can the job you are in now be done better by technology or by cheaper labor? Be honest. If your job is replaceable, then become irreplaceable within your job, or start learning new skill sets for a different line of work.
A way that I see staying in website design is to become a website consultant. Sure, design will be a simple project a few years from now, but that doesn’t mean companies will be any smarter in presenting their niche online. It doesn’t mean individuals will know the best way to promote their music, art, or books online. A website consultant doesn’t spend time on learning the intricacies of website design. They spend time learning how successful companies have employed website strategies for building their sales.
On the other hand, if you are getting paid $15 an hour to sew t-shirts, it’s time to start learning some new skills. Becoming more proficient at sewing the t-shirt will not stop the company from moving to a country where those sewing make $1 an hour. If you are fighting to hold onto that type of job and spend your time petitioning the government to stamp a quota on t-shirts coming out of Timbuktu, your working days are numbered.
Tags: lost job, new skill sets, outsourcing, Technology, unemployment rate | Posted under Bootstrapping, Creativity and Ideation | 2 Comments
Thursday, October 15, 2009 | Written by Erik Rostad
Posted under: Bootstrapping, Website Design |
Tags: google adwords for research, keywords, search engine optimization |
5 Comments
The NY Times ran an article yesterday on how small businesses can use Google AdWords to advertise their business. They had some great things to say about localizing the ad campaign, selecting the correct keywords, and closely monitoring the results.
One thing they failed to write about was using Google AdWords for research purposes. When I hear Search Engine Optimization professionals speak about the use of Google AdWords, it usually is not in the vein of using it for advertising. Google Adwords is just as strong of a platform for doing your Keyword research as it is for advertising your small business.
How do you do research using Google AdWords?
Start by using Google’s Keyword Tool to research keywords for your market. You can see here the average # of searches per month as well as the competition level for that keyword. After deciding on the best Keywords for your company, set a budget and place these Keywords into your Google AdWords campaign and look at the results of what attracts the most clicks to your site.
Now, do Search Engine Optimization within your website design. Optimize the best performing Keywords in your Meta Tags, on-page text, and with links pointing to your site using those words.
By optimizing your site for those Keywords, the goal is to attract free visitors to your site who will buy your good or service. This is opposed to Google AdWords where you pay if they click the link.
And hey, if you got business from AdWords while doing this research, and there is a return on investment, keep the ads going. But the goal is to produce natural search results based upon the information gleaned from your Google AdWords research.
Tags: google adwords for research, keywords, search engine optimization | Posted under Bootstrapping, Website Design | 5 Comments
