Archive for the 'Entrepreneurship' Category

The Secrets of Creating and Growing an Online Business

Monday, July 3rd, 2006

Starting an online business is no doubt a popular entrepreneurial venture these days. Through the internet a product can be created, marketed, sold, paid for, and delivered for fractions of the cost of doing so outside of the virtual world. Often times the physical location of your business doesn’t even matter - as long as you have an internet connection and a $300 computer. Did I mention you can work from home with flexible hours?

The Secrets to Starting and Growing an Online Business is a series that beginning today will share some of the secrets, myths, and mysteries surrounding starting a business online all week. Each article will focus on a specific business, techical, or personal life issue for online business owners that I’ve found to be critical for success.

Every new post will also be linked back here to create a proper index for the series. Come back each day all week to gain valuable insights into starting your own online venture.

Articles in this Series

That completes the series with 8 articles on starting an online business! There’s a lot more out there to learn, but I hope this instills confidence and knowledge in anyone running or desiring to run an online business. Remember to always put your heart into it and be able to accept mistakes and failures along the way.

How I Finally Made Money from My Technical Abilities: Switching Directions From Computers to Business

Monday, June 26th, 2006

Engineering and computer programming are some of the most interesting and fun professions out there if you love logic and creating things. Back in grade 7 of elementary school I began to get involved in the latter and learned Turbo Pascal as my first programming language. I was quickly hooked and came up with many ideas for programs. I even actually finished some of them.

For years I was content to write code, progressing onto more powerful languages and really developing my skills. I even competed in some larger student computing competitions and scored quite highly. I was positive that with my early start and natural talent that I would be able to profit quite nicely from my software development abilities. This was reinforced with some positive results in getting paid to run a gaming website in high school, although I was really hired for my writing abilities.

After that initial positive experience I ran into a wall. No not literally into a wall, but rest assured I’ve done that too. I had the programming abilities, but what respectable company would hire a high school kid to write their software? Especially when he’ll still be in university for many years after? I knew I would be able to get that amazing programming job one day, but in the meantime if I wanted to make money I would have to write and sell software myself. Over the course of a year of day-dreaming and no real progress I came upon two important realizations:

1) I could make a lot more money selling the software that I write myself instead of accepting a fixed salary.

2) I didn’t know a whole lot about this business stuff.

It’s the stereotypical plight of the modern skilled worker, whether you are a computer programmer, chemical engineer, or biophysicist. You have all the ability and brains to make something wonderful, but for some bizarre reason that’s not enough for the world to shower you in gold coins. Stuff like sales, marketing, accounting, operations, business planning, and other skills intended for those “not good enough” to be in your field are needed too.

I felt that point number 1 outweighted the barrier posed by point 2 so I started learning about business by diving right in. Somewhere between starting a computer repairs business and developing CustomBar my mindset began to shift and the idea of running a business transformed from a tool into a passion. Along the way I also half-started many ventures and made an amazing amount of mistakes.

I continue to make mistakes today, but I’ve also learned a lot. At first I thought I could take a shortcut and somehow learn all the business stuff that I needed to in a year and be mostly done with it, as I wanted to focus on programming. I’ve since found that it’s an amazingly deep field and that while you can accelerate your learning with the right resources there is no way to skip the need for real experience and real failures. I’ve also learned that a computer person can become a business person, and contrary to the popular belief amongst some people in the technical professions, business isn’t obvious at all!

For me business has become my number one passion, but I still love technology and utilize that to give my ventures a tremendous advantage. My most successful venture to date has been my website development company, which is keeping me extremely busy these days. The more I have embraced the business aspect of making money from technology, the better I have succeeded at it. If you’re currently struggling to put that technical degree to use, then learning how to start your own business is a terrific alternative to working for someone else.

What if I don’t want to become a business person? They suck!

This is common and understandable. Why should you have to learn a completely different field to reap the most rewarding opportunities and experience from your own? The truth is that you really don’t, but you have to be able to accept that a technology company still needs a sound business mind. The dot-com bubble should provide enough evidence of this. If you don’t enjoy business then the solution is to find someone that does, and match-up your skills to create a strong team. This becomes a must if you are going to be seeking venture funding, as you will need a management team with the right strengths. A good way to start meeting business people is to find and attend business related events, particularly those with a networking component. For those in the Waterloo area, the annual LaunchPad 50K competition and Communitech are great examples.

This Advice Makes Sense for You, But Not for Me

Thursday, June 22nd, 2006

I read a very interesting New York Times article yesterday, describing a study where participants were asked whether to recommend a vaccine (which came with a 5% risk of death) for a disease that you had a 10% chance of catching and dying from. Logically the vaccine is the better choice, but people’s answers differed drastically based on the role they were in:

Only 48 percent of the participants said they would take the vaccine themselves. But 57 percent said they would give it to their children; 63 percent said that if they were doctors they would give it to patients; and 73 percent said that if they were the medical director of a hospital they would recommend the vaccine for all patients.
Nicholas Bakalar, New York Times

The pattern here is that the more distanced you are from the subject, the more likely you are to rationally recommend the best choice. The closer you are to the situation, the more its influenced emotionally and important facts get lost in the decision making.

This phenomena doesn’t necessarily stop at medicine or risk of life, as the same can apply to tough decisions affecting the survival of a business, your personal finances, or even a particularly intense hand in poker that should be folded. I’ve definitely noticed it for my own self, as I often take much longer to make a rational conclusion for the needs of my own business than when others ask my thoughts. It’s very difficult to accept taking on risk for yourself, no matter how low it may objectively be or how poor the alternatives are.

This is clearly a dangerous tendancy as emotionally driven incorrect decisions can be devastating to a company. In addition to being consciously aware of this habit, you can help combat it by regularly seeking outside advice. It’s not unusual for a business of any size to have some form of advisory council. All forms of mentoring services are available out there too, from experienced friends to volunteer services to business consultants. I’ve had some great insights and been able to make some tough choices just by occasionally having other entrepreneurs I respect provide an outsider sanity-check on my situation.

If you’re the only who has been reading your business plan, maybe it’s time to seek a fresh outlook.