Entrepreneurs-Journey.com Down-To-Earth Advice For Bloggers and Internet Marketers

It was post-lunch, and I was sitting on my couch trying to find my productive energy, with the air-conditioning on during a particularly hot Australian summer day (35 Celsius to be exact). Sitting opposite me was Gideon Shalwick, my partner in crime in the Become A Blogger Premium program, equally struggling to find his mojo due to the combination of a full belly and a hot day.

We had come together to discuss our next big project – a live event to be held in Australia during the first half of 2010. However our conversation managed to balloon beyond our initial subject limitation and we were jumping from topic to topic, with each new issue opening up something else.

As the afternoon progressed it became clear that we weren’t going to reach any specific conclusions that day, although the discussion was certainly helpful.

As Gideon pointed out, decisions made now, will impact where you will be in six months. The start of a new year is a particularly important time as most people start new projects, or begin new phases in the development of their business.

In our case we’ve reached transition points, where we face a huge array of opportunities. Gideon and I don’t face the same decisions on all levels since our personal lives are different, as are the stages of development of our businesses. Since we share projects, some of the decisions we make must be made together, and when that happens, we need an extra level of clarity because what we do impacts not just ourselves.

It’s easy to change things when it’s only you in charge, but when you are in a partnership, each shift requires involvement of your partner, or you risk creating confusion and even conflict (read of this article on partnerships for more on these kinds of issues: Is A Partnership Right For You?).

Many of the new opportunities open to us, such as the live event, are projects that we have very little experience with. We’ve attended live events before of course, but never hosted one ourselves, hence we’re wary of what we don’t know that we need to know and prepare for.

Making the decision process even more complicated are the existing projects we have, which could be optimized and expanded, if we choose to follow that path.

To put it simply, this isn’t a simple decision. There are many interrelated issues, conditions and decisions that have an impact on other decisions.

Normally I pick one major project and focus most of my “new creation” energy there, while working to keep the regular processes, like blog articles and email content flowing as usual, but this time it’s challenging because all my new opportunities really are new.

In my case I already made the decision to launch a private coaching program, and if you’re already one of my paying members you should have received an email with a link to the invitation page to check it out. If it doesn’t sell out to my private members, I’ll offer an invite to the public, so stay tuned for that.

The rest of my decision making for the next six months is still a work in progress. This is of course not the first time I’ve faced this kind of “problem” and it’s a very common one for entrepreneurs.

Even as you become more stable, develop cash flow and determine what projects are worth pursuing and what should be scrapped or avoided, it doesn’t make the decision making process any easier. In fact it usually becomes even more complicated, since success tends to open doors to new opportunities, and you always have the opportunity to improve on what’s already working.

So how can you find the answer to the too many opportunities problem, especially when you reach major transition points in your business life?

Read the rest of this entry >>

I had a meeting with a friend and his business partner last week. The request was to “pick my brain” on the best way to move forward to generate some passive income streams online.

These two particular people are like a lot of people I know. They’ve got tech skills, they know the Internet well and they have lots of ideas for cool Internet business applications and websites.

Unfortunately they’ve managed to dig themselves into a situation where they spend all their time working on client jobs, running what you might call a “consulting” tech firm, completing various programming and web development projects for other people’s businesses. The money in this business model can be good, but it has some serious downsides too, namely -

• You have to deal with clients, usually one-on-one, a very low leverage interaction and often just painful as you have to work you way through lots of annoying clients to find the good ones
• You work very long hours, which my two friends could certainly testament to
• You know a lot about a lot, yet have difficulty specializing in anything
• You’re in competition with every other jack-of-all trades web development firm out there, which means you unfortunately end up competing on price, and it’s certainly not nice to have to undercut yourself simply to work with bad clients

Those points aren’t necessarily true across the board, but I’m pretty sure any person who has ever consulted or done any kind of web development work for clients will know what I’m talking about.

My friends are smart enough to realize the path they are on is not going to lead them to where they want to go, so they’re looking to make some changes.

The goal is to develop some form of income stream, or several, that could replace the need to take on client work. As always, the relationship between time, money and freedom of choice is heavily integrated here, as my friends are looking to make more money without drastically increasing their workload and eventually freeing up their time so they can do what they want to, rather than what they have to.

Let’s Not Be Strict About Passive Definitions

I’m about to reveal what I talked about during our meeting with my two friends. In terms of what I suggest you do if you are looking to make some passive income online, I don’t want people to get too caught up on the idea of “pure” passive income.

The methods I’m about to talk about are not pure passive income sources, however they have the potential to be low work, high return income sources that can potentially become very close to pure passive longer term. The fact is, it takes time to develop these income streams, but we all love the phrase passive income so I’ve decided to use it here in the title of my post.

So to clarify, what we are looking to do is start up completely new projects that have the potential to become good sources of near-passive and possibly pure passive income, it just might take some time to get there.

First, Understand Your Unique Opportunities

One of the first things I discussed with my friends was taking their present situation and turning it into something that’s less work for them. Sometimes the “lowest hanging fruit” is just a simple adjustment to the business model you are following now, transforming your core skill from labor intensive, to hands-off delivery, or at least much less work.

Here’s some examples of how you might do this -

Read the rest of this entry >>

I’ve been thinking lately about starting another Internet business. I’m not actually going to (right now), but I was considering my future and also what I might do hypothetically if today I decided to dedicate myself to a new project.

Over the past years of running an Internet business and studying information marketing and strategic business development I’ve come to realize there are some important things I would not do again – some pitfalls I would avoid right from the get go if possible. I suggest if you are just about to start your own Internet business or are at the early stages of developing your plan, that you heed my advice and avoid these Internet business pitfalls.

1. Don’t start a business teaching how to make money online.

This is the number one rule. Unless you are currently making millions online using innovative techniques and you have plenty of built up credibility and contacts to leverage for testimonials and endorsements, you won’t succeed teaching how to make money online. There are too many Internet marketing gurus already and the marketplace is saturated. The only way to differentiate yourself is through personality and social proof, and only well established marketers who already have had Internet business success stand a chance.

I’m not saying it’s not possible to be the next Internet marketing guru, but if you do decide to chase that goal you are facing stiff competition and a very jaded consumer. It’s won’t be easy to prove that you are different or any better than the other thousands out there proclaiming to have the next guaranteed formula for success online.

The same goes for bloggers too – don’t try and teach how to make money blogging unless you already make good money from it and can teach something new and different from the many other bloggers out there teaching how to make money from blogging. Earning your first $100 AdSense cheque does not qualify you as an expert. Sure you no doubt have some value to contribute, but if you want to base your business around your skill you better be really good at it or at least be very honest with what you are proclaiming to be or to offer.

2. Choose non-Internet related niches

This is not a hard rule but you will definitely make your life easier if you choose a niche that isn’t Internet related. Like point one, if people already do it online chances are the market is saturated. The markets that have untapped potential are those were the existing offline successful businesses don’t leverage the web…yet…or the opportunity lies in taking an offline business model and enhancing it by using the web as a distribution method or marketing channel.

If you come across a high-demand offline business model that has yet to be marketed online you can jump in and be first to market and establish yourself as the online expert. The best part – your prospects won’t have already been bombarded by online marketing techniques so even the most basic marketing efforts will likely result in tremendous rewards simply because you are first in to a virgin marketplace. These markets are not jaded from over exposure to Internet marketing so you don’t face as much sceptical resistance.

Of course if you do pick non-Internet related niches there better be a reason you can succeed at it. You need to be leveraging your strengths and for some of us (me included) it’s often difficult to find strengths that are not Internet related. Which leads me to point three…

3. Don’t focus on making money

In the past I’ve confused the enjoyment gained from building a business with the rush of making money. If the only thing you look forward to about your business is the money you will make or currently earn, it won’t last. It won’t last because you will only succeed until a better competitor enters the market and takes your money away (and takes your enjoyment as a result) or your business won’t grow because you are not actually leveraging anything you are good at. Making money is not a skill – it’s an outcome as a result of a skill.

You must base your business on two factors – market potential (a hungry consumer) and your strengths. If you don’t do this you will fail, or at best be mediocre.

4. Don’t enter a tiny market

One major pitfall is finding a hungry market but then realizing it’s tiny. There is nothing worse than fighting with competitors for the small handful of customers available. You can try and stick it out and hope you will be the last business standing or be bought out by one of your competitors (or the other way round) but this is not the best premise to be in business for. Be wary of fooling yourself that the market will grow and your business will grow along with it. That might happen, but don’t struggle for too long living for tomorrow’s growth potential if it’s not really there.

5. Watch out for tiny margins

Equally dangerous as a tiny market are tiny margins. If you study pricing and market differentiation you will learn all about premium pricing and discount volume pricing. I’ve discussed pricing and perception points before and no doubt your pricing structure will be one of the most difficult areas to formulate as you go into business. It’s a sticking point for me that I tend to develop and change over time, as hazardous as that may be (see this article for my pricing story).

The one pitfall you have to watch out for is basing a business on a margin that is tight or misunderstood. Ultimately you don’t know how much a margin you can make until you start selling something, so don’t plan too heavily upon making a specific margin, plan for variations. Long term efficiencies and changes to your market positioning can help increase your margins, but there are no guarantees. Early on be especially wary of margins as you will have an inclination to blow a lot of money on marketing and if you marketing costs outweigh your margins, and you can’t sustain your business growth without the marketing, you don’t have a formula for success. Creative marketing can help you through this of course, but just make sure the numbers eventually go to positive given a spread of potential margins (standard deviation anyone? – I can’t believe I’m thinking of my old business statistics class – I hated that subject).

6. Look for leverage points

If you want big time success and explosive business growth you need to find points of leverage. You won’t be successful on any grand scale without leverage because your output will be limited to how much you can do yourself.

Leverage can be a way of using the marketplace to magnify the size of your business (for example many to many business models or user generated content) or through joint ventures or host beneficiary relationships. Leverage is about thinking beyond a solo-mentality and finding ways to use other resources to meet your goals quickly.

Although not strictly leverage by definition, just the act of taking on outsourcers or employees to increase your output is a great start and is the path to a leverage mentality, which leads me to point seven…

7. Avoid self-employment thinking

Most people who leave a day job to start a business begin with a self-employment model. This means you create a job for yourself and add all the other responsibilities that come with business ownership, and lose the benefits that come from employment at a company (remember this article? – Do You Want to Run Your Own Business?). This is fine as a starting point (although you can avoid it from day one) but you must learn to start thinking about business building, which means separating yourself from roles that don’t build your business.

The biggest culprit to blame for self employment thinking is cash flow, or lack of it, since most new businesses have limited financial resources and as such the owner must do everything since they can’t afford to bring in other people. It’s important when deciding what business to start that you see how it is possible for you to stop doing the day-to-day business fulfillment roles (delivery of services/products, support, sales, etc) in the future. If you can’t automate, outsource, or hire people to do these roles, then you don’t have a business model, you have a job model.

8. Be aware of your own limitations

As sad as it might sound, most of us are only truly good at a few things. We can be sufficient at many things, but generally each of us only have a few gifts that can translate into business success. Before starting a business make sure you know what your talents are and how they translate into skills you can use to build a business.

Most of the things I do every day to manage my business leverage skills I have that I would call sufficient. I’m not great at them but I can spend some time and get the job done. This includes things like writing copy, technical jobs like server management, software installation and basic graphic design. Then there are other jobs I do that are routine, areas where you really can’t excel at, they just need to be done and I have to do it.

All of these activities take me away from what I should be doing – leveraging my time on the high value activities that use my talents – things like writing this article now. It’s taken me a while to realize that an important goal in my business is to set up systems and people to do the things that for me are largely a waste of time. These activities are important still – my business wouldn’t succeed without them being completed – but they don’t leverage my talents and I need to have people with talents in those areas handle them.

Don’t worry if right now you are not sure what your talents are but be aware that your goal eventually is to distinguish what you are exceptionally good at and stop doing what you are not good at. Don’t fool yourself into thinking you are the best at everything because A) it’s not true and B) this will lead to solo-minded thinking, which I’ve already mentioned will stifle your business growth.

Yaro Starak
Leveraging Coffee Shops

Let’s jump straight into it – if you are reading my blog then you either already run an Internet business, you want to run one or you dream about running one (or you are stalking me!). With this article I hope to help you move from the “I want to start a business” category, to the “I am running a business” category. Here we go…

I Have A Business Idea (or several)

If you fall into this category and you already have ideas for Internet businesses but you haven’t actually started one yet, then I have some very simple advice for you – just do it! Put something into action, get some results even if the result is no result (that’s a result still!) so you can actually start to move forward. Stop dreaming/planning/thinking and start doing.

If you have several ideas and you don’t know which one to run with, pick the one that you can best leverage your existing skills, contacts and resources and do some testing. You may think one idea has “more potential” or you might earn more money from it, but that probably also means you face more risk and a longer learning curve. The thing with long learning curves is that if you don’t already have the chutzpah to even start a business a long learning curve is just going to be, well, too long for you. You don’t have the motivation or the courage or the experience or the conviction or whatever it is to push you through the slow process of failing that you must go through in order to succeed.

If you choose the perhaps less grand idea or the less risky business in the short term – the one that you can best leverage what you already have – you won’t face such a long learning curve and will earn results quicker. This will give you positive reinforcement and experience earlier – it will build up your chutzpah – and then, if appropriate you may be able to start up your original riskier or unique idea since you will have the confidence from the success you have already earned.

Think of it this way – a software programmer could have some amazing Web 2.0 idea which she could start, or she could do some software consulting as a self employed business owner. One business model is clearly riskier but potentially much more rewarding. However in almost all cases the low-risk consulting job will bring in financial return and positive reinforcement a lot quicker, while the end game with the Web 2.0 might be a huge superstar company, resources will be consumed (money, time) long before rewards start coming through. Obviously it comes down to your unique position and personality, but if you are having trouble even getting started then the path of least resistance is probably best for you – at least for now – you can still dream big for the future.

I’m not saying you can’t chase the biggest, baddest, craziest idea right from the start – some of the best entrepreneur stories start like this – but often the character behind the idea has some special qualities, those pure, somewhat deluded concepts that hardcore entrepreneurs have where they “just know” they will succeed no matter the odds against them or the reality of the present situation. That sort of blind faith motivation usually leads to one of two outcomes – tremendous success since the person never gives up, or tremendous failure since the person never gives up. It’s a fine line.

I Don’t Know What Business To Start, But Gawd Damn I Have Plenty of Information Products Full of Ideas, If Only I Would Pick One!

Ahh, the serial information product purchaser. I love you guys. It’s you opportunity seeking folks that keep the online marketers pockets laden with money – your money. They keep coming up with ways to make money online, release ebooks, videos, DVDs, courses, seminars, mailing lists, membership sites, all promising riches, and you lap it all up – all of it!

Yep, you are a crazy lot but there is one clear thing about you – you are not afraid to put money down in order to make money and you believe in education, either that or you are a sucker for a good sales page!

If this is you, you need to stop buying info products. Honestly, stop it now. If your computer and bookshelf is laden with online business ideas, all of which you have studied with enthusiasm but never gone much further than one or two steps into actually implementing something before you snap up the next “great online money making concept”, then you have to break the pattern.

Here’s what you need to do. Stop buying products, look at what you have already, what you have learnt and where you think you could best leverage your skills. If you like writing content and setting up blogs or websites then perhaps AdSense is the way to go. If you have something to teach other people and that doesn’t have to be in the Internet marketing arena, it could be any niche, online or offline, then maybe setting up a membership service or writing an ebook is the way to go. If you don’t want to bother with making a product yourself but you like the idea of selling products then perhaps drop shipping or affiliate marketing will be good to you.

Here’s the important part though – whatever idea you finally pick, you have to stick to it from start to finish. Complete every step in the course/book/tool you bought. Every step and then evaluate your position. And I can tell you, if you truly did complete every step that a quality information product teaches you to do then you are almost guaranteed success. Why most people don’t succeed is because it takes time and energy and let’s face it, unless we see money coming in immediately most people have a hard time sticking to something for longer than a few weeks – at most!

Realistically if you were to follow Internet business information products and implement all the steps you are looking at months and months, even years of work before you really can say you did everything well. That usually means completing long term search engine optimization on your website(s), setting up, testing and tracking a comprehensive pay-per-click advertising campaign, implementing other traffic strategies, networking, forming relationships and doing joint ventures, testing and tracking conversion on your website(s), writing content, blogging…there is so much to do to truly have success online. While it might be nice to blame the information product and accuse it and the author of being all hype and no substance – most reasonably good info products really do teach good stuff, there’s just a lot of work involved to do it all successfully – so the only person to blame for failure is you. It’s harsh, but it’s true.

Next time you buy an information product in the hope that it will be THE big idea for your online business (like all the others that have gone before it) be absolutely certain that you are prepared to implement everything it teaches, otherwise you shouldn’t buy it. Go back and implement the techniques in the other products you bought but never got around to using properly first.

Best of all, if you actually do implement well and create a business, you can then buy all the great info products that come out, write them off as an education expense in your tax and know full well that you will be capable of implementing the nuggets of advice you learn, increasing your income by leveraging the success you already have in your existing business.

Positive habits tend to reinforce themselves. Once you start implementing and getting results you will find that you want to keep doing it. The experience you will gain will give you confidence and awareness of the long term benefits of implementation and replace your old “get rich quick” opportunist thinking mentality, where you bought products because you were caught up in the promises being made and did not consider the reality of the effort required to make things work.

I Have Too Many Commitments – I Can’t Quit My Job To Start My Dream Business

Okay, you may be right, you have a lot of commitments and pinning your financial requirements on a new enterprise is too much to handle. My advice – don’t do it, do both. Start your business and keep working your job. In this case you need to have great time management and structure your life well so you maximize your work efficiency (of course this is a good strategy for anyone, but it’s particularly important for someone who wants to transition from working a job to running a business where the short term involves doing both at the same time).

Let’s think 80/20 rule. If you get 80% of the outcomes from only 20% of your efforts then you really only need to focus on a core few functions to handle this situation. You need to keep working your job so a good chunk of your day is gone to that. Then you have all the other “life things”. In my case that realistically probably leaves about 2 hours per day of real productive time for your new Internet business. You could start sacrificing sleep to get more hours but I’m not known to do things like that – you might be.

Two hours, you may be surprised to learn, is more than enough to get your business going, if you are 100% productive during that time and that two hours is spent on your 20% core productive functions – those things you need to get done in order for your business to start generating cashflow. After all it’s dependable cashflow you require so you can reduce the amount of time you spend at the job office and increase the amount of time you spend at the home office. Most people don’t spend much more than two productive hours in an eight hour working day anyway so you will be ahead of the curve if you can stay focused on your 80/20 activities for a full two hours.

From that point on you juggle. You balance your activities with getting your new business running and slowly change the ratios so you do less “job” and more “business” until that great day when you have enough business cashflow to finally quit your job. Of course that’s only the beginning of building your business, but at least you are past that not-really-that-scary-yet-it-stopped-you-for-so-many-years period where you were afraid of not meeting your commitments without your job.

It does take a leap and definitely a commitment but to be really honest with you, the only real obstacles you face are psychological, they are not reality. You don’t believe you can start a business because of all the fear that your commitments generate, which are tightly linked to your job income since it currently keeps those commitments at bay. Since you believe that it becomes your reality. Once you lose the fear and take action you realize the reality of the situation is not that scary and with some time and efficiency management anything is possible – you just got to believe and take action kid!

Do Something

Reading over the paragraphs I just wrote above it’s pretty clear that there is really only one piece of advice you need to follow to finally start your online business – you need to take action and do something. Everything else boils down to the way you think and the way it causes you to act but generally as long as you are taking action to move your business forward (and start something in the first place!) your outcomes are always good because you are learning and gaining experience, which all lead to greater motivation, better decisions and more taking action – a guarantee of success!

So go do something already!

Yaro Starak
Action Taker

Every new business, new product or service, and new marketing approach started with an idea. So whether you are looking to create a market-busting product like the iPod, or come up with a campaign idea like the Million Dollar Homepage, there are creativity techniques that can allow you to conceive something new and turn it into reality.

There are three major hurdles to overcome before any idea can come to fruition:

1. Identify a Problem
2. Idea Generation
3. Idea Selection

Needless to say, having a solution without knowing what the problem is doesn’t usually get you very far, so know what it is you’re trying to accomplish and what problem you want to solve.

If you keep up with your industry, talk to customers, study what is not working in your business, you should have a ton of problems you would like to solve. Alternately, you can use sites like Google Trends to find problems that others are trying to solve, and design a better mousetrap.

Once you have that problem firmly in mind, you can begin using some of the proven techniques for generating possible ideas. Then begins the difficult choice of selecting the ideas that have the most potential. The remainder of this article will focus on the second step – Idea Generation.

There are many well-known techniques and methodologies for coming up with ideas including Brainstorming, Talking Pictures, and other group creativity exercises. There are also the many picture-based processes including Ishikawa Diagrams and Mindmaps. Since our minds work using pictures and inter-relationships versus words, many of these techniques are valuable in guiding us to new solutions. A great wiki site that provides an overview of techniques for all three areas of creativity techniques can be found at www.mycoted.com. Peruse the entries to get some insight on current methods of idea generation.

Brainstorming is the most recognized buzz-word associated with idea generation, yet most people are not familiar with exactly what it means or how to go about it; some may picture locking them self in a room, deprived of food and drink until a great inspiration jumps out of their head – however, there are less painful and more productive methods available. Many of these methods have specific ground rules, guidelines, and methodologies (e.g. round robin, think tank, etc.). There are a ton of great sites to help you find a good brainstorming methodology including the Wikipedia entry on brainstorming techniques and also Perfect Brainstorming by Innovation Unlimited.

One of the more informative lists on the latter site is the 10 Rules of Brainstorming:

* Set Directions
* Involve Everyone
* Encourage Cross-Fertilization
* Don’t Overlook the Obvious
* Suspend Judgment
* Don’t Fear Repetition
* Don’t Stop to Discuss
* Record Every Idea
* Apply the 80/20 Rule

My personal belief is that “suspending judgment” is the most difficult rule for many people, and is the one that kills more good ideas before they ever even have a chance. Don’t assume something “will never work” or is “totally hair-brained” until you go through the entire process. It may just turn out to be the seed of exactly what you are looking for – you never know.

Another key observation, is that in almost all of these techniques ideas are generated as a group. Yes, it’s possible to come up with a great idea all by yourself, but working in a small group can provide the momentum to generate many possibilities, or make a good idea even better.

My personal favorite technique for idea generation is Mind Mapping. It is both an organizational, memorization, and creativity tool. It is based on the method that Leonardo Da Vinci used to keep his notebooks and construct new theories. There are even some good software tools related to Mind Mapping to help you get through and document the process: Mind Manager by MindJet, and Map Your Mind by Mayomi. There is also a free tool that is worthwhile called FreeMind . Others can be found at the Wikipedia entry for Mind Maps. If you are interested in some other creativity and idea generation tools that are not related to mind mapping per se, check out Axon Idea Processor and Imagination Engineering.

Finally, if you are interested in this whole topic of innovation in business and idea generation, the best blog I know of on this topic is Idea Flow by Renee Hopkins Callahan at Corante Hub.

So now that you have been inspired (?), get out there and start generating some ideas – and create the success you’ve envisioned for yourself.

******

Michael Martone is the author of the blog VerusNova which helps Small Business owners leverage technology to create a more successful business.

His blog can be found at http://verusnova.com/blog