Twitter News: Dell said on Thursday it has raked in more than $3 million from Twitter followers http://budurl.com/ddcm

Great research resources

US Government   

Census Bureau   www.census.gov 
Federal Statistics Online www.fedstats.gov 
American Fact Finder  www.factfinder.census.gov 
Government Printing Office http://www.gpoaccess.gov/ 
   
US Census Bureau State  and Local Info

County Business Patterns  http://www.census.gov/epcd/cbp/index.html 
Quick Facts   http://quickfacts.census.gov/qfd/ 
Link to State Data Centers www.census.gov/sdc/www 
   
State/Local/Regional  Information   

Each state govt has a website www.state.[insert two-letter state code].us 
Library of Congress  www.loc.gov/global/state/stategov.html 
Links to state/local govt sites www.statelocalgov.net 
Small Business Development Centers www.asbdc-us.org (click on “Lead Centers”)
Company Information  
S.E.C. Annual Reports - S.E.C. Edgar database  www.sec.gov
Hoover’s   www.hoovers.com
Dun & Bradstreet  www.dnb.com
  
Trade Associations  

Amer. Society of Assoc. Executives www.asaecenter.org

Trade Shows   

TSNN    www.tsnn.com

1. Make a list of your research questions

Not only will you get questions from everyone (lendors, investors, partners, customers, etc) about your industry, target audience, and competition but more than anything else you MUST embark upon this research journey for the good of your business.  The #1 reason I personally have witnessed in the failure of start-ups is bad decisions.  The majority of these mistakes could have been avoided if the entrepreneur had just taken the time to do their research, educate themselves, and cultivate a work environment of constant improvement through research and awareness.

Where to begin?
Write a general statement to define the basis of your business.  For example, if you are planning to start an Internet company providing online psychological therapy, your general statement might be: “There is a profitable way to provide psychological counseling via the Internet.” Next, make a list of questions that logically follow from and challenge that statement. Ask yourself tough questions. Trust me this is the time to figure out if your business is not going to make it for some weakness or threat you are not currently aware of.

Now you can go ahead and start looking for the answers to your questions.  {I’m making the assumption that you have read my previous postings on setting up physical and computer files.  If you haven’t, do so now because you are about to find a ton of stuff to go into those files.}  Be sure as you start researching that you organize your findings into your filing system as well as keeping a running worksheet of your Research Sources.  See my next posting to help get you started with some very useful business research links.

Your key research areas are:

1. Industry
2. Target Market
3. Competition
4. Suppliers/Vendors
5. Legal Regulations
6. Strategic Partners
7. Broadening Your Network

5. Keep track of expenses

OK…don’t get too distracted on this point right now.  In Week 5 (remember this is a 6 week startup), you’ll be dealing with money matters but don’t wait until then to start keeping track of your expenses.    Remember your receipts and good tracking here literally puts cash back in your pocket from the IRS…legally!

You can wait until Week 5 to get organized in this area with regard to a bookkeeping software program, but at the very LEAST start keeping track of each and every business expenditure you make right now.  See my previous postings on setting up your physical and computer files.

4. Keep track of your company’s vital statistics

This is a small yet important point…make a habit right now of keeping all your business’ vital info in one spot.  This would include your Formal Company Name, dbas (in what county filed, dated, number), Tax ID, date of incorporation, business license/permit #, Better Business Bureau#, and any other important dates, numbers, and data relating to your company.

3. Set up a contact management system

This will save your sanity in the near term and may very well be the single most effective step you take during this critical foundation laying time to insure a successful launch.  Although you may have become fond of the piles of business cards next to your monitor or the little scraps of paper with contact info scribbled for you to remember, this is NOT the way to build a business.  Best of all, it’s really easy and reasonably cheap (definitely worth the money) to get started.  Once you begin with a system, you will never go back…trust me!!!

Very briefly if you do not know what a contact management system is it is the way you keep track of all your contacts.  Think of it as an address book on steroids.  Yes, it will keep track of the basics (name, phone, email, etc) but it is also the place you can leave notes on each time you had contact so that you communicate more effectively.  How about being able to note someone’s birthday, anniversary, kids’ names?  That will help you build stronger relationships.  What about sending emails more regularly or setting phone call reminders so you never let a prospect go cold?  That is just a tiny taste of what a contact management system can do.  Here’s my thoughts on what I believe are some of your best options.

For the absolute beginner, novice (you know who you are)

• Outlook/Eudora/etc – This is where most people start and that is fine but I beg you to immediately think of these programs simply as an email mailbox.  If you rely on them to work as a true contact management system for your future, you are definitely setting yourself up for wasting time and effort…not to mention the lost revenue opportunities.
• Quickbooks Customer Manager – Very cheap initial “toe in the customer management system water” program.  One especially nice feature is that it will pull all the latest customer info from Outlook and Quickbooks.  In other words, if you use Outlook (or Outlook Express) for email and you generate invoices with Quickbooks this is a good option. 
• Oprius – This is a very strong beginner option for contact management.  It is incredibly easy to use and get started.  It has the most whistles and bells out of all the beginner options and it is also the first web based option.  Web based means it is NOT software that must be loaded on your computer.  Your database is available to you through any computer with an internet connection.  Don’t worry about security of your contact info.  I already screened out the ones that this is a valid concern.  Downside of Oprius…if it is more than just you, you cannot share your contacts between users.  Also, they don’t currently have PDA friendly version.  If these 2 downsides are not of concern for you, then go full speed ahead…Oprius is a great choice!!!

For those who may or may not be familiar with contact management systems but are comfortable with technology (I’m assuming the majority of my readers will fit into this category)

• Batchbook – Really nice, clean interface.  Easy to get started.  They also have a very convenient partnership with MailChimp (yes, you read right) to be able to quickly generate and send marketing email campaigns.  This is definitely firmly in the Customer Relationship Management (CRM) territory and a solid suite of functionality.  Here’s the kicker…they even have a free version.  You can’t go wrong with that and if you like it and want more options then you can pay a little more.  All around a nice option.  By the way, this and the next option are both web based, PDA compatible, and include the ability to attach documents and emails to contact records to better keep track of your communications with a contact.
• Highrise - This is really a dead heat for me between Batchbook and Highrise.  Highrise compares to Batchbook in every way noted above.  The only difference is that they do not have a partnership with a email service provider (MailChimp), however, you can just as easily use any email provider (iContact, Campaign Moniter, ConstantContact, etc).  They offer a 30 day free trial.  I lean toward BatchBook slightly as a better option as it offers everything Highrise does at a 1/3 of the price.  However, Highrise is a good option especially if you have a small team primarily because of the complementary offerings of 37 Signals (mother company of Highrise).  Check out Basecamp as an additional GET ORGANIZED offering.  If you have ever used MS Project, Basecamp will blow you away.

I should also mention with both of these above, you will learn the art of tagging.  This is where you add additional search words (tags) to a contact record to help group and find faster.  For example, let’s say you collected 200 contacts at a tradeshow, you would add the name of the tradeshow as a tag.  Let’s say you went to one particular reception at that tradeshow, you would add the name of the tradeshow and the name of the reception as tags.  I think you get the picture.

Finally, for the techies (dare I say, geeks)…

• Big Contacts
• Pipeline Deals
• Etelos

Whatever solution you choose, I think the point is clear…CHOOSE SOMETHING AND START USING IT TODAY!

2b. Set-up computer files

Phew!  Glad that’s over (you did do everything outlined in my previous post 2a. set-up computer files, right?!?)?  Well, now you need to start creating a filing system, similar to your physical filing system you just began.  Ideally, it should mirror your physical files so that you can organize consistently regardless of whether it is on paper or digital.  Recently, I assisted one of my clients with their Initial Public Offering (IPO).  We created a due diligence digital filing system.  This is a fancy way of saying a file that had subfolders that included everything related to that business.  Click here for a sample due diligence checklist.

The good news is creating your computer filing system (due diligence) is simple if you start growing your files with this in mind.  Start by creating a new file folder and name it whatever your business is called.  Then, create the same file folders as mentioned in my last post on physical files.  If you have already been working sometime without a computer filing system, go ahead and file all your documents, presentations, etc. into the corresponding folder.  If there is no folder that really fits the document then create a new folder.  DO NOT create a miscellaneous folder!!!!  Now, open each of the folders and see if you have enough documents to further group and create further subfolders.  Here’s an example…

Market Research folder

• Industry Information — contains a subfolder for different industries involved (ie. travel, honeymoon niche, online business trends)
• Competitors — contains a subfolder for each competitor which then contain subfolders on various aspects of the competitors business (ie. pricing, product offerings, business development – often your competitors will talk about their strategic positioning and/or growth plans in articles and/or ads)
• Demographics and Target Audience
• Customer Comments
• New Development Opportunities

Just create file folders as you go along that make sense once you have enough documents to group into the folder.  DO NOT create folders that contain nothing and delete folders if you ever delete the folder’s contents.

Another good habit to get into, is to make note of the sources and dates of info you find.  This is particularly important for data such as pricing, market data, sources, and vendors.

Going back to my client who went Public.  We decided that we were going to transfer ALL of their paper files to digital.  There were a number of benefits to this including easy back-up, investors and financial institutions speed up funding when you can provide everything immediately (typically companies can wait months for funding while they try to gather all the info requested).  We took one week and had 2 resources working all day scanning in all the paper files. 

The $500 some dollar investment in hardware/software and the $700 some dollar investment in payroll paid off immediately with the business receiving their next round of funding in less than one month.  Separately, the other additional byproduct that we didn’t account for was the dramatic increase in productivity of all the employees as they were able to instantaneously find the info. they needed to do their work.  Finally, if all of this wasn’t enough, the company was able to reduce the square footage of office space they were using as they no longer required storage for all these paper files thus reducing their monthly rent payments.  Employees now only have paper files for the most immediate items they are working on currently which are stored in a single drawer on each employee’s desk.

I cannot recommend this enough especially if you are just starting your business.  Trust me…It is so much easier to do this from the get go rather than doing it later.  But clearly, as I’ve explained in my example, it is possible to do it later.  Save yourself the time and money right now by doing this from the beginning.

2a. Set-up computer files

Most businesses have some sort of computer as a basic lifeline assisting with communication, billing, and overall productivity.  As wonderful a tool your computer is it is also a source of great time loss for many entrepreneurs that haven’t taken some time to organize their computer (and usage patterns).

First, if you are using your home computer for your business there are some really essential housekeeping items to take care of IMMEDIATELY! 

1. If you are using Windows XP or newer then you can very easily set up an additional user account dedicated to your business.  This is the easiest way to begin to demarcate your home from work life.  If you are unable to complete this step (due to older software, etc), it is just a little more challenging to make (and KEEP) the separation.
2. Make sure your computer is properly protected with a sufficient and automatically updated virus protection program such as McAfee or Norton.  If you have a high-speed connection (which is nearly a requirement at this point for your business), then check with your internet service provider as all offer some sort of antivirus protection for FREE.
3. Finally, run some basic maintenance programs on your computer.  Don’t worry if you are not a techie geek, these are basic and easy even for the absolute beginner.  Besides, this step should be done at least once a month.  Below are directions for PC users (sorry MAC users you’ll have to google to find out how to do these on your system).  Double click on MY COMPUTER, then right click on the C drive.  Select PROPERTIES from the drop down and then select the TOOLS tab.  Now run each of these (Please be aware that this will take several hours to complete…so you may want to do one of these programs at the end of the day so you can just get the program going and leave to eat dinner…make sure you check it’s progress before you go to sleep):

• ERROR-CHECKING – This checks your hard drive for errors.  Repair all the errors found.
• DEFRAGMENTATION – This first analyzes your hard drive and locates all the files.  Now whenever you delete something you typically leave a space or fragment between files.  Over time these fragments add up and really slow your system down.  This program basically reallocates those fragments and makes your system perform much better.
• BACK-UP FILES – I cannot emphasize enough the importance of this step.  Way too many horror stories to recount of entrepreneurs who lost everything when their computers decided to die a most horrible death.  I go several steps further on this front.  I back-up everything on an external hard drive, and jump drives (one set I place in another location…relatives or friends who live in another state or a safety deposit box), and one final set in my portable office safe that I have the most critical personal and business documents in to protect in case of fire or other natural catastrophe.  I know it may seem extreme but think of working one day without ANY of your computer files.  It’s worth the half hour a month it takes me to make all these back-ups.  Another option is online file back-up systems.  Great option allowing tons of server space.  Just be sure you look into their record on security of information.

Time to Get Organized…Step 1 set-up physical files

The following posts are to round out your first week’s activities by getting yourself organized.  This is one of the areas that most entrepreneurs avoid until later.  However, I cannot stress enough its importance and you might as well tackle it right off the bat as everything else will be easier.

Getting organized is the foundation to you managing your time effectively.  True organization includes many more aspects than just file folders.  This book is great for the entrepreneur (and ideally any partners and/or employees) to begin to think more globally on how to work more efficiently and effectively.

You are about to accumulate a ton of stuff both tangible (reports, brochures, samples, etc) and intangible (information, data, advice, prices, etc).  This tsunami of information and stuff is one of the top things that steals entrepreneurs time away and it can DIRECTLY affect your chance of success – and your bottom line!

 

1. Set-up physical files

There’s a ton of info on how to organize your office.  I liked this book as it was very direct, non-nonsense and gave very real suggestions on how to begin to organize.

The first thing I do when setting up my home office is obviously assess the space I have available and think about the tangible stuff first.  Look around and determine what filing needs you have and the space available.  Now you can head to the office supply store (or Walmart) to get the basics.

Basic Supply List

• File cabinet or plastic file bins.  Whatever, you need a place for physical files. 
• Hanging file folders
• Manila folders
• Label maker (this is a nice addition which you’ll end up using for many more things than just making file labels)
• Good size plastic tub (This is great to keep your bulkier items all in one place)

Here’s a list of file folder labels to get you started:

• Accountant
• Accounts Payable
• Accounts Receivable
• Advertising
• Bank Accounts
• Customer Contacts
• Employee Contracts
• Customer Leads
• Distributors
• Entertainment/Meals
• Equipment
• Insurance
• Investors
• Lawyer
• Lease
• Licenses
• Loans
• Market Research
• Mileage/Parking
• Names/Trademarks
• Payroll
• Suppliers
• Tax Matters
• Travel

There’s also a very cool technology that I mention in my posting on computer files that can tame your paperwork and transform it into a digital, searchable database of documents.  This is a particularly wonderful advancement to give all of us back space in our home office as well as increased ability to quickly find the info. we need (not to mention the document back-up feature).  Here’s a sneak peek but more in the next post.

5. Meet with a graphic designer

I started my career as an assistant account manager at a major ad agency in NYC.  The first learn by fire experience I had was managing creative teams of graphic designers, copywriters, photographers, directors, etc.  What I learned was harnessing creative geniuses can be really challenging at first.  Creatives tend to have a much different relationship with timelines and budgets than the rest of the business world.  However, what I learned from that time was how easy it is to manage creatives if you know the basics.

The following is really the nuts and bolts of how to build and nurture wonderful working relationships with creatives.  At some point in your business you will end up working with a creative resource.  Of course, if you can do this from the beginning that’s great.  But I realize not everyone has the financial resources to do this now.  If you end up forgoing a graphic designer and doing it yourself, that’s fine…just keep this posting for your future reference.

First, always look at examples of previous work.  The vast majority have their portfolio posted online.  If they do not have an online portfolio that doesn’t make them a bad choice but I would think twice about using that designer for your website or online ads.  Look at a few…you’ll get a sense quickly of who is most in line with your preferences and goals.

Second, creatives love to know the story.  It’s up to you to make sure they have a sense for the big picture.  Your creative briefing process (especially for the fundamentals of your company branding such as logo, business card, etc) should absolutely include your business concept and description statements that you did previously.  You can also show examples of other creative work that you like.  The creatives should be given of latitude to obviously come up with something new but you can (and should) give them the overall guidelines.

Graphic Designer – Keys to Successful Creative Innovation

Ask About

• Their experience
• How they handle the design process
• Who’s going to do the work?  The person you meet, assistants, or others?
• What fees/costs are involved?
• What deliverables you will receive (although once you get the hang of it, this is really something you can dictate to them)?

Ask for:

• At least 3-5 comps (design options) included in the initial fee
• Both Black and White and Color digital versions of your identity
• Digital templates for all aspects of your identity: business cards, stationery, fax cover sheets, etc
• Color palette and numbers, both print and for the internet
• A signed agreement giving you ownership and copyright of all the designs (this one is VERY important!)

Tell them:

• What the company name represents and what your company does
• Who your target market is: their ages, industries, and concerns (I’ve even gone as far as make a collage of magazine pics of people who looked like my target audience…told my designer to keep it by his desk as he developed ideas.  I wanted my target audience to be staring at him when he did his work.  End result was the best creative options I’ve ever received for brand identity.  The hardest part was making my final decision of which option to go with.)
• What do you want your customers to feel about you (I usually expand upon this and include tone adjectives such as whimsical, fun, happy in my creative brief)
• Whether you want a traditional or more innovative approach
• What color palettes you like or dislike
• Who your competition are and how you’re different

Creative Brief Components:

1. Background on company and project
2. Target Audience (Can be divided into primary and secondary audiences if necessary)
3. Executional Guidelines (specifics on deliverables like dimensions, color limitations/restrictions, low/high resolution, etc.)
4. Tone
5. Timeline of Deliverables (include dates that you will provide comments back and approvals)
6. Appendix (anything that will help tell the story and give the designer a clearer picture