Ediam blog


  • Nov

    Start a Business, Really?

    Posted by John23 comments

    I want to tell a story of a recent start up client of mine. This person, I will call him Steve, was a man who had worked hard his whole life and had recently retired from his job. 

    Steve had always dreamed of owning his own business. Restless with retirement, Steve thought now was the time to fulfill his dream. As we discussed his research into three different business ideas, Steve selected the one with the highest potential for creating revenue.

    Then as we continued talking through the process of researching the market for the business, detailing the costs of start up, preparing the day-to-day operations, hiring and managing employees, controlling the overhead, the legal and tax implications, rent, insurance, advertising, I saw Steve's eyes start to glaze over.

    Steve's initial energy and interest in business ownership began to fade as he faced the reality of the task ahead of him. 

    This leads to a very important question for every entrepreneur, "Do I really want to own a small business?" 

    The best way to answer the question is to look at it from three different angles. Ask yourself, "Do I have the passion? Do I have the money? Do I have the experience?"

    The first question relates to your business idea. Are you committed to the product or service you plan to offer. In essence, can you sell it? Can you convince others of its importance, its relevance, its value? This passion for your product or service will be key to finding investors and making ever important sales.

    Steve had a dream of owning a business, but had no real passion for any particular industry. Steve chose a business plan based on costs and revenues, but never awoke the capacity to own it and to sell it.

    The next question is money. Do you have the funds ready to own a business? Can you pay for all the start up costs, location, marketing, and operations until the business can create enough cash flow to start paying for these things on its own? It can take up to three years to reach this point. Can you last that long?

    If not, you will have to borrow. This leads to a frank assessment of your personal credit status, your history, your collateral, the amount of your personal investment. If you do not have anything at all to put down, it will be very difficult to finance your business.

    Finally, any entrepreneur must look in the mirror and interview himself for the job he wants as a business owner. Is that person in the mirror truly qualified to manage all the aspects of the business?

    Steve chose a business plan that was very different from what he had done during his professional life. Was he qualified to run a business in that industry? Did he understand the market, the customers, the pitfalls? Honestly, he did not. As we worked together, he started to sense it.

    After much review and planning, Steve finally said to me, "maybe I should just get a part-time job in a business arena I know and save my self all this work." 

    I hate to talk someone out of their dream. But sometimes dreams are more savory when they remain a fantasy. 

    Some entrepreneurs have prepared to face the real life challenges of business ownership. Some try and fail as they gain experience. Some are simply not ready. An honest assessment of yourself, your passion, and your finances is a good way to address the question, "do I really want to own a business?"

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  • Aug

    E Commerce

    Posted by John6 comments

    One question that often comes up in consulting with my small business clients is the topic of e-commerce. What is this concept and how can local businesses tap into the potential of a global market?

    E-commerce is the term that has been coined to capture any transaction of money for products or services that occurs over the internet. The potential for conducting business via the web has captivated many an entrepreneur over the past two decades. As a result, many business innovations have come about. Some have succeeded, others failed.

    Nowadays almost every industry is doing business directly on the internet. From Ebay to Amazon, billions of dollars are being exchanged in online business transactions. Many small businesses are tapping into this exchange to capture increased sales.

    E-commerce is different from using a website a a marketing tool. E-commerce refers to actually transacting business via the web. Many businesses maintain a website as a promotional apparatus, but they are not conducting e-commerce. Using the web to promote a business is different from using the web to transact business.

    Both of these ends can be profitable, but small business owners need to lay out clear goals to use the internet effectively. When a business is ready to actually transact a sale online, then they are ready for e-commerce. Otherwise, the website is viewed as part of a larger marketing plan and must be approached with different goals.

    Selling products and services online involves many of the same elements of doing business in person. First is having an inventory of quality products and services to sell. Second is attracting a targeted market. Third, and above all, is maintaining excellent customer service.

    I am sure we all have a horror story or two of a bad internet transaction. I had a company mistakenly send my order to Nebraska and then wanted to charge me to redeliver the package from Nebraska to Idaho. Needless to say, I just cancelled it. Another time the product I received was a far cry from the one advertised.

    Unfortunately, the internet allows some companies to get away with bad service. I guess that some companies attract enough first-time customers they feel they can sacrifice service. However, the businesses that want repeat customers still put customer service at the top. And it still pays off, as it always has.

    When selling your products or services online you must still understand your market, do competitive research, fine tune your price points, and develop successful marketing materials.

    In addition, online selling involves the technical challenges of creating online content, hosting the website, updating and maintaining the website regularly, collecting and recording customer orders, processing payments and filling orders in a timely manner.

    E-commerce is not a silver bullet to easy profits. E-commerce must be approached with the same thoughtful business planning as traditional person to person selling. It takes time and work to run a successful e-commerce business.

    Before committing valuable cash and precious time to developing an e-commerce website, make sure your business is internet ready. Ediam can work with your local small business to help you analyze your readiness and prepare you for increased success.

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  • Sep

    Good Design

    Posted by John2 comments

    Many small start up companies and other businesses in operation feel that they cannot afford to hire a professional designer to help them through the process of developing visual assets for their business.

    It is a huge thing just to find the resources to open up shop in the first place. To hire a professional to develop a logo, business card, letterhead, website, brochures, and more is often an expense that many small business owners will put off.

    Yet a well designed brand, marketing theme and professional image is something that often makes the difference between a company living on the fringe of competitiveness and a company leading the way forward in a market.

    Good design is tied not only to the visual polish of a company, but also to the additional aspects of product design, package design, store design, interior design, interface design, and more.

    Innovative companies are often linked to good design. And good design is often linked to companies that are perceived as being the most innovative. Companies from Apple and Pinterest, to Starbucks and Google, are all investing heavily in the design of their products, their marketing materials, and the user experience.

    How do such design principles trickle down to the small businesses who are trying to break even? It is great for a large company with revenues in the millions or billions to spend well on design elements, but what about the little guy who can't afford it?

    My opinion is that any business, even the smallest ones, cannot afford to ignore good design. It is just as important an element in the initial funding of a business as is the funding of a location, phones, or utilities.

    There are many ways to tackle design problems on a budget. The simplest solution is to hire a professional designer or design team. A design firm with experienced designers can lighten the load of solving design problems and help a company make great strides in their perception and place among the competition.

    For companies that are truly cash strapped there are other options to get designers helping you. One is to connect with the local university. Students in design and communication programs are learning the most modern and up to date design trends, principles, and concepts.

    Students are also eager to put into practice the theories they are studying and need to build a portfolio of real life projects to impress future employers and other potential clients. Getting a team of students working to solve design problems for your business can be very cost effective and result in some really innovative ideas.

    There is also a growing number of "do it yourself" resources on the internet. This is especially true for web design and new media. Many companies and websites have simplified the design process and made it possible for an average user to develop good design using tools and templates.

    Another concept called "cloud sourcing" has also emerged that is driving down the costs of good design. Some websites will allow a company to put a project out for bid to their groups of registered designers from all over the world. Scores of designers will brainstorm potential solutions for a logo design or other design elements. Then the company chooses the best solution and moves forward at a very affordable plan.

    There are many ways to afford good design for your business. The most important thing is to do it. Good design positions your company with a competitive advantage and makes a lasting impression on your customers.

    For additional help on getting good design working for your business, talk to us at Ediam.

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