Welcome to the BIZ

• A place to start for entrepreneurs: idea development, strategy, market validation, mentoring
• Objective advice: no conflict of interest, a true non profit
• Networking with experienced entrepreneurs: monthly events, connections, introductions
• Results driven: average revenue growth 142%, over 20 state grants acquired

State Government, Improvement? - YES!

Image by TonyMcCutchan via Flickr

There are many areas of state government that are taking it on the chin these days.  Sometimes for valid reasons.  Last week I was fortunate to participate in a Kaizen process re-engineering event with the Iowa Department of Economic Development  (IDED).  Many of you may know that I work with several groups at IDED on grants, loans and other economic development and support activities as they relate to my clients.

Here is what was so cool.  They invited me to join the process for 2 of the 4 days and to represent the customer of IDED, businesses !  When Karen Merrick asked me to join them I made a point of telling her I would not pull any punches.  I also told her I could get pretty cranky in long meetings.

Not only did I not get cranky, I was truly impressed by all of the state employees that participate in this process.  They took it seriously.  They cared what their customers thought and they wanted to make the process better and faster. 

From what I have seen so far of the results, they have a resounding success. My hat is off to the people of IDED.

Go Do Tech Brew! - Lubricated Serindipity - Thur 11th - Dos Rios

Image via Wikipedia

Join us at Dos Rios in Des Moines for another edition of  Tech Brew, the networking event of TAI.  If you have not been, you need to go.  If you have been already, you know what I mean.

A big thank you goes to Christian Renaud of Palisade Systems for inspiring Tech Brew and for coming up with the line Lubricated Serendipity! 

The not so obvious solution - use what you have.

For the last year we have been hearing more and more about piracy at sea.  There has been quite a debate about arming non-war ships.  Some advocate putting armed security teams aboard ships.   Others dismiss this as placing more risk on the crews of the ships.

Recently I read about a much more innovative solution.  While I do not know if this will be the end-all solution to the problem of piracy at sea, it is a great example of using what you have plenty of to solve a problem. 

It turns out that ships at sea have plenty of water, specifically salt water.  The innovative folks, who's name I cannot pronounce, came up with a straight forward approach to solving a problem using what they have the most of, water! 

When looking for a solution to a customer problem, one great brainstorming approach is to list what you and the customer have large amounts available. 

I can just see the youngest member of the crew being the ace gunner due to all the video game practice!   

Talk to your (future) customers!

Image by pepe50 via Flickr

I was reading a blog the other day written by the group at 16 ventures.   Titled "Take your customer to lunch, not me" it reminded me of advice I have often given.  When you are working on part of you business model and looking for feedback, do not forget your current or future customers.  They are the ones that in the end will have the final vote on your success. 

Here are three approaches may want to consider:

• Turn each question you have around and look at it from the customer's view, what will they receive for their money.  When you meet with the customer, explain the whole view of the idea from price to what they will receive.  Ask the question then do a lot of listening.  As the customer offers ideas, ask probing questions to understand the why of their response.
  
• Ask a former customer.  This is an opportunity to find out more about what they were really looking for and gives you a perspective from a non customer that knows your company.
• Get a few of your customers and prospects together and run the question by then in a group setting.  Let them discuss the idea amongst themselves.  You may end up with a better idea in the end than what you started with.  

Asking your customer before making a change is a great way to insure success and prevent a major failure.

Will you make a good entrepreneur? - Take the test!

Image by nickwheeleroz via Flickr

The questions will not be what you think.  Your thinking all the make money, take risk kinds of questions.  Wrong.   Barry Moltz does a great job of laying out the right questions to ask yourself in his blog posted on Chicago Business.   Here is a sample of his questions: 

• Do you do well in ever-changing chaos?
• Can you ask for help?
• Do you like to sell?
• Can you get people to follow you?

Click through here to read the complete list with Barry's answers.  And do not miss the answer to the last question: Can you hold a real job and work for someone else?  The answer will surprise you! 

The lost art of thank you

I am trying to break a habit.  I have a bad habit of saying "thanks".  What I really mean is "Thank You, I really appreciate it" delivered with full eye contact and full engagement.   A friend introduced me to a new marketing start-up here in Des Moines called Saturday Manufacturing.  I got a real kick out of these guys.  They have a ton of experience but they approached their own branding in a very unique way.  Take a look at their site to get an idea of what I am talking about. 

About 4 days after I visited them, I received the following in the paper mail:

They took the time to write a thank you.  That means a lot to me.  I have received emails that were just as compelling.  Here is one I received the other day that stopped me short.

  
 

Tears in the eyes.  This is why I love my job.      

Biting the hand that feeds

Image by gadgetgirl via Flickr

I am a true believer that you give back.   One way I give back is to mentor and support young entrepreneurs both through my work at the BIZ with high growth companies and by mentoring individuals.  Recently a person I have spent time with and provided two job referrals to decided to "bite the hand".  This person just started their own business and did not have any clients.  I was trying to help by referring the person to businesses I felt could leverage the skills available.  Sounds great, right?  Well I popped over to their blog and found several posts that were critical of the organization I represent.  So much for any more referrals.  If you are blogging here in Des Moines and receiving help from others here are a couple dos and don'ts:

• Do understand that this is a very small town and everyone reads everyone elses blogs.
  
• Don't post blatently negative comments on your blog.  
• Do provide constructive feedback.  Blog about what is at issue, not the people or organizations involved.
  
• Do expect future hiring managers to read your blog to get a feel for how you handle conflict.  If your blog is negative, you are negative.

To be completely honest, I am amazed that I had to write and publish this.  Sheesh!

Insuring your self the best value in Insurace

Joe Hinke of JA Hinke and Company presented to the BIZ networking group today on the subject of Business Insurance.  He had a couple great tips for businesses:

Image by Getty Images via Daylife

• Find an insurance carrier that specializes in your type of business.  If you are a technology company, do not pick a carrier that specializes in agriculture!
  
• Stay with a single agent for all insurance to provide maximum leverage in 
  negotiating the minimum price
• Check the references of the agent you are thinking about using
  
• In Iowa check with the Independent Insurance Agents of Iowa for a good referral to an agent.

Joe had a lot of useful information on the insurance buying process.  You can find his complete presentation here.

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Business Partners and Investors: Check those references

Image by Getty Images via Daylife

I started my working life in the car business.  I quickly came to the conclusion that people spend more time researching the purchase of a television than a car.  In other words, people buy cars on emotion and looks. 

When engaging with business partners do not connect based on first impressions.  In my last company after a failed situation, we were fond of asking each other the definition of "assume" (ass-u-me).  We assumed many facts that had we checked first, we would have gone a different direction.  

Here are a few ideas for how to check out various business partners before hooking up:

• If you are thinking about merging with another business, try co-locating before actually combining the companies, especially now when space is easy to come by.  There is nothing like pulling an 18 hour day with someone to determine your compatibility.  It is much easier to unwind a shared location than a legal entity
  
• When choosing a VC or investor, check their references, both successful and not.  Mark Suster wrote a blog on this subject recently that gives several great tips.  It is definitely worth a read.
  
• When looking for a service provider (lawyer, accountant etc)  ask them for references for similar businesses.  Make sure they understand your business as you do not want to pay their hourly rate to teach them.  
• When checking references, ask each reference for an additional reference, preferably one that no longer does business with the person your checking on.

Take your time and do this right.  You do not want to end up "married" to someone you just can't work with. 

You want to do what?: A patentable idea does not a business make!

Many new to the world of products believe that a patented product is the sure road to success.  Nothing could be further from the truth.  While a patent can have value, it is only because others wish to purchase what you have invented.

To obtain a patent on your invention it must be useful, novel and non-obvious.  The confusion comes in when someone equates having a patent to having a product people will want to buy.  As I have said in blogs past, I do not believe anyone can judge for certain which ideas will succeed in the market.   Having said that, some patents just beg to be questioned.  Take patent number US 2007/0050958 A1.  This one just does not seem destine to being a market success.   Take a look and you be the judge!

Brett Trout, a well know patent attorney here in Des Moines wrote a chapter for our book How Business Gets Done: Words of Wisdom by Central Iowa Experts  He had a great description of a product not destined for market success but certainly capable of passing the patent tests.  The shotgun pickle slicer, a shotgun filled with tiny razor blades sounds new, non-obvious and potentially patentable.  That does not mean anyone wants to buy one no matter how proud the inventor.  As Brett points out, a patent is your right to prevent others from making, using or selling your invention without your permission. 

We have all had that brainstorm for the "perfect product".  Assuming yours is patentable, the decision to invest in a patent goes beyond the legal question.  You need to first determine if there is market need for your invention and that it solves a problem that people want to solve by trading money.

If you haven't already, take a look at Brett's chapter in the BIZ book.  If for no other reason to read about the shotgun pickle slicer!