Posts Tagged ‘entrepreneur’
Yesterday I had an interesting experience in Heathrow airport that made me realize just how much everyone in your organisation needs to live your brand.
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Viral Loop – From Facebook to Twitter
If you are interested in using the Internet to grow your business virally, then “Viral Loop: From Facebook to Twitter, How Today’s Smartest Businesses Grow Themselves” is a must-read.
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Company: www.theclothesline.ie
Website: as above
Founders: Tammy Darcy
Age: 30
Based: Waterford
Staff Number: Just me so far!
Date started: February 10
Tell us what your business does?
The website offers parents the opportunity to submit their outgrown or unsuitable kids, babies and maternity clothes in exchange for credits which can be applied towards the purchase of more suitable items
Where did the idea for your business come from?
As a mother of three, the idea actually evolved over a number of years, and I decided to go for it when I lost my job.
Have you always wanted to run your own business?
No! There are obvious pros and cons to running your own business but I feel passionate about what I am doing so I don’t have a problem staying motivated
What planning did you do before you started up?
I researched the idea for six months and tested every aspect of the business before I launched.
What challenges have you faced how have you overcome them?
The biggest challenge is balancing work and home life. When you run your own business it’s very hard to switch off at the end of the working day.
How have you promoted your business?
Because the business is very much a public interest subject, I have received a lot of media interest. Apart from that I have done a lot of online promotion through social networking sites. It really works, and its free!
What has your growth been like?
I’m very happy, we’ve been live for less than a month and it’s hard to keep up with the growth. But its testament to the power of word of mouth amongst parents.
What’s the impact on your home life been like?
I’m lucky to be able to plan my time around my family demands. There are times when it’s a challenge but it’s great to be able to collect them from school, something I wasn’t able to do when I was in full time employment.
Pierre Omidyar’s Success Story – Famous Entrepreneurs
“I never had it in mind that I would start a company one day and it would really be successful. I have just been motivated by working on interesting technology.”
Growing Up
Omidyar was born in Paris in 1967. He moved to Baltimore when his father began his term of residence at Johns Hopkins. Omidyar became captivated by computers while at high school and skipped his gym classes in order to use it. Noticing the boy’s keen interest, the principle gave him the job of creating a program that would produce catalog cards for the library. He was paid $6 an hour.
At Tufts University, Omidyar worked on a program to assist Macintosh programmers with computer memory problems. His request that users of this shareware file pay on the honour system did not bring many replies; the cheques that should have been going to fund his years as a computer science undergraduate went solely to paying for the post office box.
In 1991, Omidyar went to work with three friends to create pen-computing programs. Though Pen computing was a dismal failure, the e-commerce site (eShop) on the Web site that Omidyar introduced and operated enticed Microsoft to buy the company.
Starting The Business
Omidyar went to work with General Magic, a software company, in 1994 and made extra money designing Web pages on the side. The girl he was dating at the time, Pamela Wesley, who would later become his wife, collected Pez dispensers and often complained how difficult it was to meet others passionate about her hobby on the internet. Thoughtfully, Omidyar appended a small online auction to his personal website so Pamela would make contacts with other collectors as well as buy and sell.
eBay (electronic Bay, as in the San Francisco Bay area), as it was when it first appeared in 1995, operated merely as a forum for people to sell and bid on various items. Omidyar did not back goods, mediate conflicts, or get involved if there were accusations of dishonesty or abuse of the system. Almost immediately, collectors of Barbie dolls, Beanie babies and the like flocked to eBay.
Three months after its launch, Omidyar had to ask his friend Jeff Skoll, also a programmer, for help. In order to cover the new costs involved with the growth of the business, Omidyar began charging small change to list an item on the site and took a small commission if the item was bought.
Building An Empire
Omidyar was surpised by his continued success and had to hire someone to open the large number of cheques that were being sent in. He was also surprised that people were not simply using the site to buy and sell, but also as a meeting place where relationships were made over common interests.
After qutting his day job, Omidyar worked along with Skoll to improve eBay. They felt that if a sturdy framework was in place, business would generate by itself. After just under two years of operation, eBay was one of the most popular internet sites, 1,50000 users bidding on 794,000 items daily. And the company was now doubling every three months.
At such a rate of growth, Omidyar and Skoll sought venture capital assistance and a management team that would further move the company forward. Benchmark Capital gave the partners a $4.5 million cheque for 22% of the company. Benchmark also found a CEO for eBay, Margaret Whitham, an executive from Hasbro, and with her leadership, the business became a slick corporate entity. With a new look, better publicity, and greater organization, eBay went public on September 24, 1998. Within four months of trading, the stock, which started at $18 per share, was worth $300. Omidyar became a billionaire.
Now selling far more than just Pez dispensers, eBay has completely changed e-commerce. Despite increasing competition, eBay continues to grow. Omidyar recognized and seized the opportunity that essentially fell into his lap and revolutionized internet use.
Looking for an alternative source of investment capital? Check out first step microfinance.
The goal is the creation of enterprise through self employment and they provide loans of up to €25,000 to start up or expanding new businesses.
First-Step provides loans to people who want to create their own enterprise and who cannot access funding, or sufficient funding, from other sources.
The core goal is to help finance start up and expanding Small and Medium Enterprises (SME’s) to provide job opportunities. They have an application and screening process which evaluates the applications received and stress tests them for likely success based on information received.
First-Step is a private not-for-profit company. First-Step receives funding from Enterprise Ireland through the EU Seed and Venture Capital Fund and the Social Finance Foundation. First-Step is the beneficiary of an SME Guarantee Facility created within the framework of the Competitiveness and Innovation Framework Programme (CIP) of the European Community.
Warren Buffet – The Snowball and The Business Of Life
Why Read It?
•The first full biography of Warren Buffett, the most famous investor of all time, written with his full cooperation and collaboration.
•Gives a lucid account of his life and career, from his first financial forays to becoming a revered investment guru.
•Analyses his business deals and strategies, as well as mistakes, by looking at the development of his investing style, his many investment partnerships, and how he built up his fortune.
•Snowball is a thorough and inclusive biography of the world’s greatest investor, examining his family history, his youthful adventures, and how he developed his investment acumen.
•It shows how Buffett came from a line of small business owners, and how his parents toiled through the Great Depression, and how his somewhat unbalanced mother shaped his outlook on life.
•Reveals that his investment career took off with the purchase of textile firm Berkshire Hathaway, and explains how he grew it into the 12th largest corporation in the United States.
•It combines biographical detail with an examination of his business deals, focusing on the development of his expertise, strategy, and investment philosophy.
•Lays bare the real Buffett—his moral viewpoint, honesty, and integrity, as well as his many contradictions, such as his frugality, eccentric eating habits, and choice of clothing.
•Details how he built up his business expertise, and the success of his many investment partnerships.
•Gives a detailed account of his investments over the years, how he selected companies in which to invest, his definition of risk, and how he decided how much to actually invest in each company.
•Shows his successful preference for long-term investing in sound businesses that he can understand, as well as belief in stewardship and integrity towards these companies.
•Examines how he has evolved into the figurehead of value investing after his guru Benjamin Graham, rather than as someone who follows market bubbles, such as the tech boom of the late 1990s.
•Looks at his dependence on friends and a network of business associates, and how his collaboration with other investment managers proved essential to his success.
•Provides insight into Buffett’s focus on customer loyalty, the quality of management, choosing allies carefully, and avoiding unnecessary diversity.
•Shows how he was one of the first to point out the inherent danger in derivative products, and how they could affect the financial system.
Quotations
“Warren may have said he wanted to become a millionaire, but he never said that he would stop there.”
“Berkshire’s best opportunities always came at times of uncertainty, when others lacked the insight, resources, and fortitude to make the right judgments and commit.”
“Cash combined with courage in a crisis is priceless.
Two of the most frequently asked questions for people looking at a startup scenario are:
1) How do I setup a company, and
2) What type of company should I set up
How do I set up a company?
The Companies Registration Office (CRO www.cro.ie) is the government body responsible for registering all Irish businesses. The offices are on Parnell square in Dublin opposite the entrance to the garden of rememberance. The staff are generally quite helpful and will be able to point you to any forms that you will require. The CRO have a very good website and most things can be now done through their online filing system.
An easier alternative is to use the services of one of the many formation companies that will register the company on your behalf. They will provide you with a company seal (required for many legal docuements such as leases etc.), articles and memorandum of association etc.
Note: Do not be tempted to rush through this stage in your enthusiasm to get started!! The name of the company, list of Directors and Shareholding structure of the comapny, naming of Chairperson, secretary etc are extremely big decisions and should not be taken lightly. For example if down the road you fall out with your partners these details will be deciding factors in who has the upper hand legally!
A formation company will charge about €300 to register the company on your behalf. I have used www.formations.ie and found them to be very professional.
What type of company should I set up?
For most people the choice is either Sole Trader Or Limited liability company. Your accountant should advise you on the best structure for you. Generally speaking sole trader suits an individual running a business primarily on their own i.e A window Cleaning service, Painter etc. It can be a good idea to start the company as a sole trader and then move on to Limited liability if the business grows and more people become involved. The paperwork requirements for a sole trader are significantly less than for limited liability companies.
The idea behind a limited liability company is that an entity (the company) is seperate from the directors and shareholders. For example if a company does not pay its bills the company is sued not the directors. In reality, particularily in the current climate, most suppliers will look for personal guarantees from directors of the company before they will supply. This negates the protection of the limited liability. If a number of people are involved and if the company turnover is likely to be significant than forming a Limited company is recommended. It is important to be aware however that the filing and returns required by the CRO for limited companies are taken very seriously. If you are late with annual returns, significant fines will build up, also companies are entitled to an audit exemption for the first few years. If you do not file your returns on time you will lose this exemption. Furthermore shutting down a limited company is quite difficult and costly (you need to put an advertisement in the paper etc!!). Many people ignore the boring responsibilities of setting up a company in their initial enthusiasm, unless you are aware of your obligations you will find yourself and fellow directors spending lots of money on accounting audits and fines. If you put your head in the sand and ignore your CRO obligations , the company may be handed over to the Office of Corporate affairs who have the power to prosecute companies who breach the regulations. Don’t say I didn’t warn you !!!
Company: AscenTrust Limited
Website: www.ascentrust.com
Founders: Conall Lavery & Perry Ram
Age: 55 and 43
Based: Ireland with back office in India
Staff Number: 22
Date started: November 2008
Tell us what your business does?
AscenTrust helps small companies reduce the cost of producing accounts without any degradation of accuracy or timeliness. AscenTrust’s management accounts help organisations make better business decisions. The low cost of AscenTrust’s back office in India is passed onto its clients, however the client only works with AscenTrust’s Irish based accountants. Services include; bookkeeping, payroll, budgeting and management accounts. The client can keep their existing accounting software, or they can change to an online accounting system. Excellent management accounts facilitate timely decision making.
Where did the idea for your business come from?
Perry and Conall attended a business program in Harvard Business School in 2000 and talked a lot about how small businesses were going to have to change to meet the challenges ahead. We both agreed that strategic outsourcing was going to be an important component. We kept in touch over the years, and both of us sold our companies in 2006. When Perry decided to relocate back to Ireland (his previous business was in the USA) he contacted Conall to see if he would like to start an outsourcing business with him in Ireland.
Have you always wanted to run your own business?
Both of the founders had founded and sold previous business – so I suppose the answer is, yes.
What planning did you do before you started up?
The initial contact was in December 2007 and we spent a good deal of time in 2008 researching and planning. We carried out some research into a number of different functions that we would serve with an outsourced business and settled on accounting services. We obtained global reports on outsourcing, we met outsourcing companies in the USA in our sector, we spoke to accountancy firms and potential end users. We then developed a business plan and registered the business on 7th November 2008. The business is funded by the founding partners.
Which Irish Entrepreneurs do you admire?
All of them but Eddie O’Connor of Mainstream Renewable Power and previously Airtricity stands out amongst them. It is hard not to admire Denis O’Brien.
What challenges have you faced how have you overcome them?
Our biggest challenge is the cost of sales to win new clients. The cost of our service is such that sales and marketing costs can eat up the first year to two years of contribution from each client, so we need to be smart about how we win customers. We are exploring partnerships with other organisations and looking to marketing to solve these problems. In the short term we need reference sites for each business segment we enter.
Have you promoted your business?
Yes, we have. We started in January 2009 with a “soft launch” as we needed reference clients. We started promoting the company in July 2009. We have two websites www.ascentrust.com and www.payrolls4u.com. We have done mailshots, placed advertisement in business and sector specific magazines and we have done a great deal of business networking.
What has your growth been like?
Initially we had some quick wins from the business development / research done in 2008, we then focused on developing the service and in the last quarter of 2009 we started to reap the rewards.
What’s the impact on your home life been like?
As I worked for myself in the past the home impact has been low. Indeed, as I mostly use the office in my house, I am probably around more than I was before.
Dreams From My Father – Barack Obama – Reviewed by Fiscal Student
You may ask, why a book written by a politician who has no business background is included in my business book reviews? My answer is that there are lessons to be learned from an extraordinary performer in any field, and it is apparent that Barrack Obama is an extraordinary performer by any standard. Because this book was written before Barrack entered politics it is perhaps more honest than it is possible for him to be now. This honesty allows the reader to gain a great insight in to Barrack’s personal character and makes it possible to identify some reasons why he has been such a success.
1. Successful People are People Too!
Generally when he hear stories of very successful people, we hear about their amazing work ethic and drive, they are presented as people with almost superhuman focus. So what was refreshing for me as a 23 year old was to find out that at one time Barry (as he was called at the time) was just another college student, unsure of who he was or what he wanted to do with his life, who enjoyed parties and girls just as much as the next guy!
2. It is Never Too Late
Barrack Obama did not graduate from Law School until he was 31. The general consensus is that you got to college, pay off your loans, and work until its time to retire, probably changing companies and roles a few times along the way. But it is evident from Obama that it does not have to be done this way. Obama did what he wanted to do after college. Then after a few years he decided that he would go to Grad school and increase his knowledge and skills and begin a new departure in his life. I think it is fair to say that Obama’s journey to the presidency did not begin until Law School. He did this at an age where most people have accepted that the way their life is now is how it will continue to be. But he has shown in the time since he graduated that it is never too late to try and change and improve.
3. Passionate Perseverance
You only get once chance at life, therefore it makes sense that we should all do what makes us happy. While this is easier said than done, there is a generally held belief that we should all work at something we have an interest in and we are passionate about. But in our busy world filled with bills, invoices and doctors fees, it often doesn’t seem practical to pursue your passions or something gets in the way of our dreams. Most people prefer to take the safe job that they might hate, rather than take a chance on something they love but may not seem practical or provide enough financial support. Barrack Obama though, did what very few people do. After college he chose his career based on his passions not his paycheck. He became a community organiser in the south side of Chicago. He wasn’t making much money, but he was truly doing what he loved. The result of this (although he is modest in the book) is that he was fantastic at his job and had a profound impact on those he worked with in the community and their lives. Obama then went to Harvard Law School and on completion of his degree, he again turned down the option of pursuing a career with great financial rewards, and began work as a lawyer helping the poor in Chicago. From that point on we all know that he rose quickly in politics and eventually became Senator and eventually President. I think this shows the power of passionate perseverance. Obama was passionate about helping people and trying to improve government and this passion has lead him all the way to the White House.
The two main lessons I took from this book can be universally applied. If you are passionate about something, whether its playing a sport, volunteering in your community or writing a blog, the extra time, effort and energy required always seems worth it. And secondly if you are passionate about something but haven’t done it yet, joined a team, cooked for a bake sale or started writing, then why not just start now, because it’s never too late…
Thanks Fiscal Student…another great review.
Do your research, and get off the doorstep…a blog by Dr Peter Stafford
Many of us who listen to politicians mentioning what people “on the doorstep” are telling them, wonder which doorsteps they’re canvassing.
Politicians have a strange ability to pick doorsteps owned by people who want to tell them how great they are. Second hand reports from the doorsteps give politicians great ammunition when facing a hostile interviewer. How many times have we heard a cabinet minister say “actually, the issue of the missing money isn’t an issue, Pat/Miriam/Holy Father. The people on the doorstep are telling me that I’m doing all of the right things and they want me to keep on as minister.”
An unverifiable anecdote masquerading as fact is great when you’re a politician being interviewed on drive time radio but it’s no use at all for a start-up business person who wants to know if anyone likes his product. Politicians have incredibly selective hearing and it’s only by tuning out the sound of all of the doors which are slammed in their faces and by ignoring the angry constituents who vow never to vote for them that they’re left with a group of loyal fans whose welcoming doorsteps give them the self-belief to keep on working.
Many small businesses fall into the category of tuning out opposition and ignoring people who aren’t interested in their product. They think to themselves “actually, people aren’t saying that I’m flogging overpriced tat six months after the trend has moved on. The people on the doorstep are telling me that my product will change their lives and they’re willing to pay twice as much for it.” Survey sample? One person.
Good businesses need good research. They need proper analysis of the facts, not an unverifiable anecdote from a loyal supporter. Not only do businesses need to know who will buy their product and how much will they pay for it, but they need to know what external factors are likely to have an impact on sales. What’s government doing to regulate the field? What’s happening to the economic context in which you’re making a sale? Is there a societal consequence to your business?
Bill Clinton ran an election campaign on the simple statement that it’s the economy, stupid. The economy will dictate everything. The economy will decide how many clients you have and how much money they have to spend on your product. It will dictate how much the government will tax you on your product (and, if you’re lucky, any profits) and it will dictate whether competition from home or abroad will gobble up your business.
At the time of writing, the stockbrokers and financiers are beginning to make their economic forecasts for 2010. Ireland will, depending on whose forecast you read, emerge blinking into the sunlight of strong economic growth, or spend next year in the darkness of prolonged recession. GNP growth (% per annum) is not an abstract number, created by economists for the amusement of economists (although if you go for a pint with a group of economists, you’ll find it is) but it matters enormously to the start-up business Do you want to start your company in a recession? Is there merit in waiting? Will the forecast for the economy help you persuade the bank to finance your endeavour? Have you factored the tax implication of the change in the economy into your business plan?
Personal anecdotes from potential clients and customers will undoubtedly help you hone your business model into one which can maximise customer loyalty. Politicians, economists and stand-up comedians all use focus groups.
But the input of potential customers needs to be grounded in fact, and all start up companies should be spending time listening to the financiers and the economists talking about their projections for the economy. This doesn’t mean you necessarily need to read the Financial Times every day. Indeed, one of the great secrets of economics is that nobody really reads the Financial Times; they just look at the adverts for expensive watches and cry for their lost millions. The pink pages of the paper blot away the tears.) But using good, well-networked research support can help put some facts in place which will make an enormous difference to your business plans.
Why? Well, for one thing, the chances are you already have a better understanding of the macroeconomic context in which your enterprise takes place than anyone else. Donald Rumsfeld (who, as a politician, is probably guilty of using doorstep anecdotes in place of the Financial Times) said of the Iraq War in 2002 that there are “known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know. But there are also unknown unknowns. These are things we do not know we don’t know.”
In six short, but bewildering sentences, Rumsfeld summarised the need for solid research, well presented. And that’s exactly what I’m trying to help Irish businesses do – find out what they know and what they don’t know, but also what they think they know, what they think they don’t know, and sort it, and fill in the gaps.
There are countless books about how to keep your home clutter-free. There are – dotted around different sections of the bookshop – more books about how to keep your mind, your career and your spirituality clutter-free. But there is a task to keep the flow of information in and out of your businesses clutter free. How do you compile and use all of the information you know about your business and how can you use it effectively? How do you summarise it into a report you can give to your bank manager, your PR Company or your shareholders? How can you fill in the gaps in your knowledge without becoming cluttered with more useless information?
The answer is by taking some time to find out what information your company lacks, and present what you do know convincingly. My aim is to look after all of that for Irish companies – streamline and maximise the usefulness of what you know, and present you with what you don’t know. Grounded in fact, stripped of clutter, presented clearly and convincingly, your company will be on better footing than any politician, blinking under the studio lights as he launches into another tale from the doorstep.
Dr Peter Stafford
peter.stafford@gmail.com
+353 (0)86 150 2891
twitter: @peterstafford
