Self-Made Magazine by Self Made Magazine

From Rags to Riches The Levi Roots Story

SelfMade Dream / Create / Succeed / Inspire

6 Steps To Building A Startup

From Scratch With No Money

Fall 2009

Premiere

issue

How to

make PayPer-Click Marketing a success Not Everyone

is an Entrepreneur

To Borrow Or Not To Borrow?

Lessons From

Richard

Branson

How to Identify an Opportunity

Reaching People in Your Local Area Using The Internet: A Case Study What Software Do You Really Need? Why a great logo design is key to your business

Fall 2009

VOLUME 1 • issue 1

11 39

Every Issue

Lessons from Richard Branson: How to Identify an Opportunity

Publishers’ Letter SELF-MADE INTERVIEWS

SELF-MADE PROFILES

Bobby Chang

Ben & Jerry

21 Darren Rowse

19 Coco Chanel

22 David Nilssen

28 Howard Hughes

Seth Godin

45 Tony Hsieh 46 Tyler Cruz

19 SelfMadeMagazine.com • Fall 2009

Self-Made Billionaires

FEATURES

James Dyson

35 From Rags to Riches: The Levi Roots Story 44 Be Yourself: Thomas Watson, Founder of IBM

Fall 2009

17 Technology

18 Creating a Business Back-Up Plan 24 Innovative: Inventions 25 Gotta Have It: Gadgets 27 How to Make Pay-Per-Click Marketing a Success 31 Managing Risk in Your Online Business Venture 36 Reaching People in Your Local Area Using the Internet: A Case Study 47 What Software Do You Really Need?

Business Strategy

6 6 Steps to Building a Startup from Scratch with No Money 7 15 Helpful Business Tips to THRIVE in Tough Times! 9 Ambition 17 To Borrow or Not to Borrow? 32 Managing Difficult People Effectively 33 Tools for Managing Generation Y 34 Not Everyone is an Entrepreneur 37 Rebuilding the Cultural Structure 48 Why a Great Logo Design is Key to Your Business

Fall 2009 â&#x20AC;˘ SelfMadeMagazine.com

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SelfMade Volume 1 / Issue 1

Publishers' Letter

PRESIDENT/PUBLISHER Adam Toren adam@selfmademagazine.com Matthew Toren matthew@selfmademagazine.com EDITORIAL Managing Editor Crystal Huckabay crystal@selfmademagazine.com Editorial Assistant Cassaundra Brooks cbrooks@selfmademagazine.com Editorial Interns Alana Stroud, Bill Raznik, Rachael Blume ADVERTISING sales@selfmademagazine.com Sr. Account Executive Eric Twohey 1.800.211.7608 ext. 1 designer/PRODUCTION PAUL BIELICKY CIRCULATION Distribution Manager Mark Lokeli

Matthew Toren Publisher

Adam Toren Publisher

elcome to the premier issue of Self Made Magazine, your online source for motivational, inspirational, and informative business tips, tricks, and triumphs! Small businesses, entrepreneurs, and creative businessmen and women will find within these pages interviews with savvy business owners, advice from successful entrepreneurs of world renown, and tips for thriving during economic down times. If you’ve ever wondered how self-made billionaires got their start, we have the answers! Check out our cover feature for profiles of some of the world’s top billionaire success stories, from Bill Gates to Mark Zuckerberg. Richard Branson’s face is now nearly as recognizable as his name. The man who took the Virgin brand global shares his insights into business growth, worth, and success. Discover what it takes to be a true entrepreneur, and whether you have it! Learn how to protect your business when you take it to the Web. Read about the seven steps to building a startup from scratch with no money, and how to make pay-per-click marketing work for your business. Considering a business loan? Take a moment to read “To Borrow or Not to Borrow?” before you start shopping around. Learn from Coco Chanel, Ben and Jerry, and Thomas Watson, among many others. From software necessities to logo design, marketing campaigns to business plans, ambition to ethics, Self Made Magazine provides you with the information you need to start, grow, and expand your business, as well as the encouragement to pursue your business ventures, lofty though they may seem. Entrepreneurs are the leaders of industry on every front, and without the drive and perseverance that fuels their inventions, their discoveries, their creative business approaches... Well, can you imagine our world without advancements—in technology, in entertainment, in fashion? We hope you find what you need to keep you on the path to success through the end of this year. We’ll see you next quarter! Cheers!

SelfMadeMagazine.com • Fall 2009

Self Made Magazine is published 4 times per year for distribution aimed at small businesses and an entrepreneurial-minded readership.Statements, opinions, and points of view expressed by the writers and advertisers are their own and do not necessarily represent those of the publishers, editors or Self Made Magazine staff. Although Self Made Magazine has made every effort to authenticate all claims and guarantee offers by advertisers in the magazine, we cannot assume liability for any products or services advertised herein. No part of Self Made Magazine may be reproduced or transmitted in any form without the expressed written consent of the publisher. Publisher reserves the right to accept or reject any editorial or advertising matter at any time. All rights reserved. ®Fall 2009 Self Made Magazine.

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6 Steps to Building a Startup from Scratch with No Money I

recently did an interview about how to

build a business up from scratch with little or no money and I used my own story as an example. Here are the steps that I took. This process helped me build my business with $0 in startup capital. Hopefully you can learn from my experience and make it even better!

Step 1: Moonlight Until You Find Something That Works

I’m a big believer in not spending until I’m earning, so I started my company while working at a venture capital firm in Toronto. I used my site to drive traffic, expose myself as an expert, and drive leads for the venture capital firm. I was driving thousands of people to my web site and began to wonder if there was a way to monetize that traffic beyond lead generation for the venture capital company. I found out about Google AdSense and put it up on the site as an additional revenue generator. In my first month (January 2005), I made $8.38—not much to write home about. Step 2: Tweak, Tweak, Tweak

Too many entrepreneurs jump full in with no plan and no proof that their ideas will work. It’s always better to tweak the concept while you already have some sort of stability in your income. I wasn’t about to go full time making $8.38 a month. My next step was to learn as much as I could about how to better optimize my ads and how to drive more traffic to my site. I read every ebook, blog, newspaper article, and web site that I could get my hands on. There were a lot fewer resources than there are today. I learned as much as I could in the extra time I had and implemented the ideas I learned. Slowly, I started making more and more money. Step 3: Go Full Time

I looked at how much I was spending on my apartment, food, entertainment, etc., and once

SelfMadeMagazine.com • Fall 2009

I started to hit that revenue number with my web site, I jumped ship and did my business full time. It wasn’t a lavish lifestyle by any stretch but I didn't have to worry about paying my monthly bills. I knew that if I was able to build a site in my spare time that could support my entire lifestyle, then if I gave it a full go, I would be able to do much, much more! Step 4: Get Free Help

As your typical entrepreneur, I wanted to grow very quickly and took on too many responsibilities. I was doing manual data entry when I should have been doing more value-add work. But that manual work still needed to get done. The solution? Get free interns. I started with foreign language interns. They were basically university students who came to Canada on a student visa for work experience but they couldn’t get paid for the work. I couldn’t give them too many communications projects because English was their second language, but I was able to unload a lot of the work off of my plate. The next free help I got was from high school students who were on a co-op term. I was able to give them more tasks where they were able to connect with partners and customers because they were fluent in English. They sounded very young on the phone so they usually stuck with email. Step 5: Hire Part Time Help

At some point you’re going to need more skilled labor than the free interns. They are a stepping stone to help you grow and take some of the work off of your plate; you’ll eventually get to the stage where you need people who don’t need as much handholding. But you don’t have enough money coming in to support both you and them. The solution? Hire part-time workers. The first guy I hired worked one hour each day to update my database. He worked for me for five hours per week, which was much easier to manage. I wasn’t going broke, and I got a skilled worker to help me grow my business.

It wasn’t as fast as I would have liked, but it was growing nonetheless. I hired people to create code for my web site, write articles, do marketing projects, edit content, sell advertising… almost anything you can think of. But they were all part time to start. I had an entire organization running with people working only a couple of hours per day. The good thing was that they worked every day… so every day we made progress. I found people using elance and hired friends and family who wanted to help while earning an extra paycheck. At one point, I had eight part-time people working for me. Step 6: Hire Full Time Help

Just like you eventually outgrow your interns, you will also eventually outgrow your part- time help. At some point you’ll realize that it’s too much work to coordinate all the various part-time staff and you need more from them. Some may be able to step into full-time roles while others will not be able to commit to more hours because of the other jobs they have. You’ll likely end up having fewer workers but will get more work done. For example, when I hired my marketing manager, he was originally one of the guys working for me on a part-time basis. By hiring him, I ended up not needing four other people who were working with me in marketing related positions part time.

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15 Helpful Business Tips to THRIVE in Tough Times! or payroll work, with other entrepreneurs to reduce overhead. The goal is to streamline operations so you can still provide a quality product or service, yet realize a greater profit by reducing the expenses to produce it. 2. Work Smarter.

As a successful entrepreneur, you know you have to work smart to maximize business potential. But are you using the latest advances in technology to their potential? Look at all areas of business operation where you can cut waste or work faster and better by investing in automation software, new equipment, or web-based applications. 3. Customer Appreciation.

Remember that your customers are going through a tough time, too. In order to retain their business, implement measures to express your appreciation. This could be a one-time price reduction, a customer loyalty card, or a referral incentive. Whatever the strategy may be, it should be something of value to the customer and within your marketing budget. 4. Evaluate Marketing Tactics.

was thinking a lot this weekend about

the downturn which almost every country throughout the world in going through. I was also thinking about how this can have an impact on the performance of so many businesses. It’s only natural that entrepreneurs of small and large companies are feeling the pinch during these challenging economic times. But rather than viewing the tough economy as a bad thing, look at it as an opportunity to improve your business practices

so you can not only survive the tough times, but thrive during them. Here are 15 ways you can position your business to face any type of adversity that comes its way. 1. Streamline Business Practices.

This is an opportune time to review your business procedures for effectiveness. Consider areas that can be combined into one or structured differently to reduce costs. Think about sharing resources, like administrative

If you are conducting marketing activities that cannot be measured for effectiveness, then it’s time to evaluate your approach. It is essential for an entrepreneur, regardless of their type of business, to conduct marketing efforts that show measured results. For example, if you run an ad in a newspaper without a coupon, then there’s no way to determine its effectiveness in growing your business. With marketing, it’s important to know what is and isn’t working for your business. 5. Get The Most From The Web.

The Internet offers a multitude of opportunities, many of which are entrepreneur focused. There are free services that can help you streamline administrative functions, enhance selling strategies and expand marketing efforts. For starters, ask yourself Fall 2009 • SelfMadeMagazine.com

if your company web site is making the most of email marketing, keywords, search engine optimization and other online marketing efforts. Attracting online buyers goes well beyond a company web site. In these challenging times, it’s worthwhile to tap into entrepreneur blogs to learn about ways to enhance your online presence. 6. Expand Your Customer Base.

Rather than rely on the traditional avenues for attracting customers, it’s time to think of other ways where you can reach a whole new segment of the population. Target your product or service to a particular age group, lifestyle interests, or income group. By refocusing your reach, you can increase your customer base.

10. Change Pricing Strategies.

Depending on the financial outlook for your business, you might need to consider revising your pricing strategies in order to thrive long-term in an unfavorable economy.

also want to introduce incentive strategies that award employees for generating business or reducing expenses. 14. Tap Into New Marketing Opportunities.

11. Evaluate Vendors.

Many great entrepreneur ideas come out of adversity. For example, a joint marketing campaign with another entrepreneur that offers a product or service that complements yours without competing with it is one proven way to grow a business. Another affordable marketing effort is a text messaging campaign. Utilize all forms of media when brainstorming ideas.

that your current vendors will meet the competitor’s price. If not, it’s time to move your business to the lowest bidder, just as long as you’re not sacrificing quality!

15. Enhance Sales, Distribution and Customer Service.

If you use vendors for packaging, labeling, distribution, or in other areas of your business, this is a good time to do some price comparisons. There is a lot of competition among vendors to attract new business, so you could realize some serious savings in this area. Since no one wants to lose business during a bad economy, chances are good

7. Position Yourself As An Entrepreneur Expert.

Chances are your local media is doing a lot of stories on how businesses and people are surviving these tough economic times. Here’s your opportunity to be a resource for their story or article by providing a quote and getting free exposure for your company at the same time. Keep your message positive and portray the entrepreneur spirit of optimism! Use the Internet to get national recognition from email publishers of entrepreneur and business publications. You can also become a speaker in your area of expertise at seminars, conferences, or conventions in exchange for advertisement in the event booklet. 8. Get Involved.

When business slows, it’s time to let everyone know that you’re still around with a valuable product or service. The most effective business comes from word of mouth. So become more involved in community functions, events or organization. As an entrepreneur, you should also tap into any trade organizations, such as your local chamber of commerce, small business forum, associations related to your line of business, and entrepreneur groups. 9. Focus on the Core.

If you’ve branched out into different areas over the years to improve market reach, it might be time to regroup and focus on the core of your business and outsource the rest. Evaluate what is and isn’t working and put more efforts into what started you out as a successful entrepreneur in the first place. It’s important to get in touch with your core business and make sure it continues to meet the changing needs of customers.

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12. Keep An Eye on the Budget.

Be more diligent in how you are spending money. It’s important to be frugal and aware of your income and expenses. By doing a line item cost for each expense, you will be able to identify areas that need greater attention. It’s also important to get a handle on any debt or to manage inventory. 13. Develop Staffing Strategies.

No one wants to lay off people during a rough economy, but there are other options that might better suit your business operations. Consider reducing hours, shortening the workweek, or job sharing. You might

Focus your support on the areas of your business that bring in customers and retain them. Develop cross selling ideas to help your sales force, implement measures to ensure customer service goes above and beyond customer expectations, and enhance your distribution methods so that your product or service is delivered as promised. Create ways that make it easier for everyone to do business with you. The world has faced tough economic times before and many a company has survived and even thrived during them. The successful ones are those that are led by an entrepreneur who understands the value of their business and is proactive in meeting a challenge head on with a positive and motivating attitude. 

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business strategy

Ambition am-bi-tion [am-bish-uh n] –noun An earnest desire for some type of achievement or distinction, as power, honor, fame, or wealth, and the willingness to strive for its attainment. Ambition is at the heart of all true success stories. That’s because success is based on one thing: achievement. Sure, there are plenty of people with fame and money who have never had to work for it—but rarely are they considered a “success.” Rather, it’s the people who have had to make sacrifices, who have worked tirelessly and been resourceful, who we look to as our icons of success. And the thing that drives those people is ambition. The question I have for you today is: how ambitious are you? The answer will determine the level of success you will attain in your business venture, because it will define exactly what you’re willing to do to make it succeed. Obviously, unchecked ambition can be dangerous because it ignores everything else but the sought-after “prize” of money, fame, or whatever you’re after. But a strong, healthy dose of ambition is absolutely necessary if you’re going to overcome the obstacles that stand between you and your goal. There are millions of people who start up a business each year; yet only a small percentage of them actually establish themselves and continue to grow after the first few years. Even fewer become more than just a steady source of income for the owner. Of course, there are some cases where disaster strikes and a business fails because of things outside of the owner’s control, and every once in a while there’s a business idea so ridiculous it is simply not sustainable. But for the most part, the failure of a business is about not having the chutzpah to keep it going no matter what comes up. Entrepreneurship is not for the faint of heart. The blood, sweat and tears that go into starting up a business are shed not for mon-

> Ambition requires that you have enough faith in yourself that you won’t back down in the face of criticism or discouragement. It means that you are resourceful enough to come up with solutions when all hope seems lost. ey, but for creative achievement that every entrepreneur has as part of their personality. I’ve said it before and I’ll say it again: not everyone can be an entrepreneur. It takes a very special person with not only talent, knowledge and ability also a powerful ambition to see their work take root and flourish. Ambition requires that you have enough faith in yourself that you won’t back down in the face of criticism or discouragement. It means that you are resourceful enough to come up with solutions when all hope seems lost. It means you’re not above rolling up your sleeves and working all night, or ask-

ing for help when you really need it. Ambition means that you believe in your company enough that you are ready to talk about it any time you have an opportunity. Throughout history there have been a small percentage of people—men and women—who have risen to the top, regardless of where they’ve started out in life; people who have taken the flash of inspiration and carried it through to a concrete reality; individuals with the ability to create their own vision so clearly that they manifest it in everything that they do. They are the ambitious. Are you?  Fall 2009 • SelfMadeMagazine.com

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When You Are Led by Values, It Doesn’t Cost Your Business, It Helps Your Business Burlington, VT, they opened their first scoop shop and started churning out their off-thewall ice cream creations. Ben and Jerry realized the power of social networking in 1978 and started off by hosting a free film festival and by establishing several traditions, including a giveaway of free ice cream on the anniversary of the founding of the first store. “We measured our success not just by how much money we made, but by how much we contributed to the community. It was a two-part bottom line.” Through the 1980s, business was great and they expanded out of state within New England. By 1987, annual sales totaled $32 million and even President Reagan became a Ben & Jerry’s fan in 1988, when he awarded them the prestigious US Small Business Persons of the Year award.

en Cohen and Jerry Greenfield have ice cream in their veins. These two unlikely entrepreneurial heroes rose to pop culture status by following different paths. Jerry is more of the joker, always ready with a quick quip, who landed his first job in the industry as an ice cream scooper in college. He tried moving through medical school without any success and reverted to work as a lab technician, whilst Ben drove an ice cream truck in his senior school year, but also dropped out of college. The pair first met each other when they shared a Manhattan apartment following graduation, but they did not explore their entrepreneurial possibilities until they became reunited in upstate New York and decided to go into the food business. Ben and Jerry’s could just as easily have been a bagel bakery, but they deemed that option too expensive and decided to make ice cream instead. In the equally-as-funky

SelfMadeMagazine.com • Fall 2009

a unique arrangement allowed Ben and Jerry’s to continue to feature its unique operating style. Since the outset, the duo had always been on somewhat of a social mission and this trend continues to this day. They have a solid commitment to recycling and conservation at all facilities and they use hormone-free milk in all products. “Now, when we face a problem like global warming, and you understand that the biggest impacts on global warming come from business and industry, I think business needs to take a leading role,” observes Jerry. Ben & Jerry’s is very much the quintessential American success story, but they have always maintained their strong social and community values. “Neither of us could have anticipated twenty years ago that a ma-

> Through the 1980s, business was great and they expanded out of state within New England. By 1987, annual sales totalled $32 million and even President Reagan became a Ben & Jerry’s fan in 1988, when he awarded them the prestigious US Small Business Persons of the Year award. Ben & Jerry’s was, and still is, known for its creativity. Flavors such as “Chunky Monkey” and “Rainforest Crunch” featured unique flavor combinations, unusual packaging and colorful marketing methods. By the end of the 1980s, the company was operating in 18 states within the USA. Their rapid growth was not without growing pains and they had to further innovate and sometimes capitulate as they grew. They were forced to relinquish some of the firm’s informal hierarchy and more established players, such as Dreyers and Haagen-Dazs, were putting up stiff competition. Through the 90s, however, the firm continued its growth, with sales approaching $175 million towards the end of the decade. Perhaps inevitably, the brand was purchased by the food giant Unilever in 2000, although

jor multi-international would someday sign on, enthusiastically, to pursue and expand the social mission that continues to be an essential part of Ben & Jerry’s and a driving force behind many of our successes.” I’ll lick an ice cream to that. 

Self-Made

Billionaires Bill Gates >Microsoft

William Henry "Bill" Gates III is an American business magnate who also enjoys the titles of philanthropist, author, and chairman of Microsoft, the software company he founded with Paul Allen, of which he remains the largest individual shareholder. His books include The Road Ahead (1995), and Business @ the Speed of Thought (1999). Gates is one of the bestknown entrepreneurs of the personal computer revolution. His philanthropic endeavors include donating large sums of money to various charitable organizations and scientific research programs through the Bill & Melinda Gates Foundation, established in 2000, where he currently works full time. Fall 2009 â&#x20AC;˘ SelfMadeMagazine.com

SelfMadeMagazine.com â&#x20AC;˘ Fall 2009

Warren Buffet >Investments Born in Omaha, NE, Buffet is a U.S. investor, businessman, and philanthropist. He is one of the most successful investors in history, the largest shareholder and C.E.O. of Berkshire Hathaway, and in 2008 was ranked by Forbes as the richest person in the world with an estimated net worth of approximately $62 billion. Buffet was a millionaire by 1962 due to his partnerships. Noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth, Buffet has pledged to gradually give away 85 percent of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006, with the contribution going to the Bill and Melinda Gates Foundation. Carlos Slim >Helú Telecommunications The son of a Lebanese immigrant, Helu bought the fixed line operator Telefonos de Mexico (Telmex) in 1990 and now controls 90 percent of Mexico's telephone landlines. Helu's biggest holding is a $16 billion stake in America Movil, Latin America's largest mobile phone company. Helu has made other investments as well in inexpensive media, energy, and retail assets. Helu is a baseball statistics aficionado, and an avid art collector. Lawrence Ellison >Oracle Corporation Born in Manhattan but raised in Chicago by his aunt and uncle, Lawrence "Larry" Ellison studied physics at U. of Chicago; however, he didn't graduate. He started the Oracle Corporation, a major enterprise software company, in 1977 and went public in 1986, just a day before Microsoft. Considered a database titan, Ellison continues to engulf the competition. Known for his extravagant lifestyle, Ellison owns the 453-foot Rising Sun superyacht, but built a smaller leisure boat because the Rising Sun is “hard to park”. He also collects cars. When Ellison married his current wife Melanie Craft, Steve Jobs was his photographer. Ellison didn't meet his birth mother until he was age 48.

Ingvar Kamprad >IKEA This Swedish entrepreneur founded the intensely popular home-furnishing retail chain IKEA (which stands for Ingvar Kamprad, of Elmtaryd in Agunnaryd). As a boy, Kamprad had his own business of selling matches to neighbors from his bicycle. He bought them cheaply in bulk form, then made a profit selling them individually. Eventually he moved on to selling other things, and when he graduated high school at 17 he received money from his grandfather for doing well in his studies; with that money he founded IKEA. Though Kamprad is known or being frugal, he does own a villa in an upmarket part of Switzerland, a large country estate in Sweden, and a vineyard in Provence in France. Takemitsu Takizaki >Keyence Corporation Takemitsu Takizaki founded Keyence Corporation in 1974 under the original name of "Lead Electric," headquarted in Japan. Today it is the leading maker of sensors, and also produces barcode readers, vision systems and measuring equipment designed to help manufacturers automate production. John Sall >SAS Institute Sall is an American software developer and businessman from Illinois, as well as partial owner of SAS Institute, now believed to be the largest privately held software maker in the world. He currently owns about one-third of the company. Li Sze Lim >Guangzhou R&F Properties Having been a math major at Chinese University of Hong Kong, Li cofounded developer R&F Properties (originally Tianli Properties) in China in 1994 with Chinese billionaire Zhang Li. R&F has opened hotels including Ritz-Carlton and Grand Hyatt in Guangzhou, and a Renaissance in Beijing. Li also holds stakes in brokerage firm Haitong Securities and KWG Property Holding. Li

is also a philanthropist strongly committed to community service, having generously contributed to education, public health, law enforcement, elderly care, poverty reduction, improvement of transportation and international cultural exchanges. Zhang Li >Guangzhou R&F Properties The beginning of Zhang Li's career in 1973 started out with a position as an industrial worker in a textile factory. He later became an official serving in the local government. In 1986, Zhang became the chief manager of the Garden Village Hotel, then moved on to the construction industry in 1988. From there, Zhang's mid- to high-end property developer, Guangzhou R&F Properties, was cofounded with partner Li Sze Lim in 1994. Zhang is R&F's co-chairman and president. Paul Allen >Microsoft

As cofounder of Microsoft in 1975 with Bill Gates, Paul Gardner Allen may be one of the most hopeful tech investors ever. Twenty-four years after quitting Microsoft in 1983 to battle Hodgkins' Disease, it still earns him a quarter of his net worth. Allen was an early backer of DreamWorks SKG, and sold a big chunk of it in 2007. Allen also donates to education, arts, and science causes. Currently, Allen is the founder and chairman of Vulcan Inc., which is his private asset management company, and is chairman of Charter Communications. Allen owns three professional sports teams: NFL's Seattle Seahawks, NBA's Portland Trail Blazers, and the Seattle Sounders FC franchise in Major League Soccer. Michael Dell >Dell

A Texas native, Michael Saul Dell started selling computers from his U. of Texas dorm room in 1984 with $1,000, then dropped out to start Dell, Inc., originally called PC's Limited. Dell had his first encounter with a computer at the age of 15 when he broke down a brand new Apple II computer and rebuilt it, just to see if he could. Going public in 1988, Dell, Inc. grew fast with Fall 2009 • SelfMadeMagazine.com

its direct-sales model. Over time, and despite a number of setbacks, Dell survived the race to become the most profitable PC manufacturer in the world. Most of Dell's net worth is now outside of Dell, Inc., wrapped up in investments, real estate, and private equity. Peter Thiel >PayPal

Born in Germany, Thiel is an American entrepreneur, hedge fund manager, radical libertarian and venture capitalist. With Max Levchin, Thiel co-founded PayPal in 2002 and was its CEO until he sold it to Ebay later that year. He currently serves as president of Clarium Capital Management LLC, a globalmacro hedge fund, and a managing partner in The Founders Fund. He was an early investor in Facebook, the popular socialnetworking site, and sits on the companyâ&#x20AC;&#x2122;s Board of Directors. Thiel has made earlystage investments in several startups, including Slide, LinkedIn, Friendster, Geni.com, Yammer, Yelp, Powerset, Vator, Palantir Technologies, Joyent and IronPort. When younger, he was a US-rated Chess Master. Abigail Johnson >Fidelity Investments "Abby" studied art history at Hobart and William Smith Colleges, then moved on to Harvard to earn an M.B.A. Johnson joined the family business, Fidelity Investments, America's largest mutual fund company, in 1988, tracking industrial equipment stocks. Johnson ran her first diversified fund in 1993. Her father reduced his ownership in 1995, and Abby inherited a 24 percent stake. Johnson then became president of the company's mutual fund division in 2001 and now runs the employer services division, which administers payroll and employee stock plans. Anne Cox Chambers >Cox Enterprises Born in Dayton, OH, Chambers is a media proprietor who now runs and controls her father's business interests through Cox Enterprises, one of the largest diversified media companies in the United States. It owns one of the nation's largest cable television businesses, Cox Communications, which provides internet and telephone; publishes

SelfMadeMagazine.com â&#x20AC;˘ Fall 2009

newspapers including The Atlanta JournalConstitution and The Palm Beach Post; owns and operates broadcast television and radio stations; and owns Manheim, an automobile auction firm. It also owns stakes in a variety of internet businesses, including Autotrader, the largest retail automotive shopping site in the world. Chambers also holds the Chair of Atlanta Newspapers. Chambers is also a generous supporter of a wide range of cultural and educational charities. Rosalia Mera >Inditex - Zara (retail) It started with Mera making dressing gowns and lingerie with an ex-husband in their home in Spain and grew into one of the world's most successful apparel manufacturers, Inditex, which also owns Zara retail stores. Though divorced years ago, Mera still holds a 7 percent stake in what is now a $12 .3 billion in (sales) business. At the time of Inditex's public offering Mera also got $600 million in cash, which she's invested in a Spanish film production outfit, a marine fish farming group, a company that looks for cancer treatments in compounds found in the sea, and a maker of a fingerprinting identification system for newborns. Mera has also received various awards for her contributions to Spanish society via her Paideia Foundation, which helps people with physical and mental disabilities. Yelena Baturina >Inteco Powerful wife of Moscow Mayor Yuri Luzhkov, Moscow native Baturina started out as a Fraser factory worker after high school then entered the Moscow Institute of Management. In 1991 Baturina started the plastic-products company Inteko, which produced furniture and crockery but has since expanded into construction and construction materials. Baturina also owns hotels in the Black Sea tourist resort of Sochi, over 72,000 hectares of agricultural land in the Belgorod region, and a factory that produces a million cans of sweetened condensed milk each year. Baturina is an equestrian enthusiast and the president of the Equestrian Federation of Russia. Giuliana Benetton >Benetton In 1965 Giuliana Benetton formed Benetton Group with her three brothers, all from Tre-

viso, Italy, and turned it into a $2.7 billion in (sales) clothing company that sells brands like United Colors of Benetton and Sisley. Giuliana originally knitted sweaters that brother Luciano would then peddle by bicycle, which was sold under a variety of labels before finally becoming United Colors of Benetton. Edizione, the family holding company (of which Benetton serves on the Board of Directors), owns stakes in Atlantia (one of the world's largest toll-road companies), Autogrill restaurants (which serve customers on highways and in airports around the world), and investments in the hotel industry, including the Hotel Monaco & Grand Canal in Venice, Italy. Oprah Winfrey >Harpo Productions The Queen of All Media's brand, Oprah Gail Winfrey, is holding its value despite the worldwide recession as viewers remain endlessly riveted by her money-saving tips, celebrity interviews and relatable weight issues. Winfrey, a rural Mississippi native born into poverty, landed a job in radio while still in high school and began co-anchoring the local evening news at the age of 19. Winfrey's emotional ad-lib delivery got her transferred to the daytime talk show arena where she managed to turn a faltering Chicago morning program into a much-loved talk show. In 1986, Winfrey nationally launched The Oprah Winfrey Show, which now airs in 144 countries and brings in 44 million US viewers each week. Her production company Harpo produces Dr. Phil and Rachael Ray. Winfrey plans to start the Oprah Winfrey Network with Discovery with a launch date set for late 2009 or early 2010. The Harpo Foundation recently donated to schools in Newark, NJ, and Atlanta, GA. Winfrey is also an Academy Award-nominated actress, producer, literary critic and magazine publisher. Chu Lam Yiu >Huabao International Holdings From Sichuan of Mainland China, Chu chairs Huabao International Holdings Limited, a company she started herself over a decade ago that makes fragrances and flavorings for use in cigarettes, detergents, beverages, dairy products and cosmetics. She became interested in commerce in college.

Chu did not just want to graduate college and find a good job, so she started her own business. It was also the flavoring essence business that brought Chu Lam Yiu and her husband Lam Kwok Man, together. Most women on the Forbes' billionaire list are heiresses. Chu started from scratch, and is also the youngest. Though Chu sold 9 percent in 2008, she still owns two-thirds of the shares. Chu also holds several leadership positions in local industry groups. Margaret Whitman >Ebay Born in Long Island, NY, Margaret "Meg" Whitman holds a Harvard M.B.A. and began her career in 1979 holding posts at Procter & Gamble, Bain & Co., Stride Rite, Walt Disney Company, and Hasbro before landing the job as eBay's chief auctioneer in 1998 when there were only 30 employees. Recently she has been involved in politics, and took her first step in running for California governor in the 2010 elections. Whitman fueled her political dreams by serving as National Co-Chair of John McCain's campaign last fall. Whitman left the boards at eBay, Procter & Gamble, and DreamWorks in January to focus on her campaign. Mary West >West Corp

Mary West moved to Omaha from Florida as a teenager. Once she graduated high school, she became a secretary at Falstaff Brewing. She met her husband Gary and they married in 1968. Together they founded WATS Telemarketing in 1978, which they sold to First Data Resources two years later. Next they started West Telemarketing in 1986. They switched to computer answering services when the government placed restrictions on cold-calling. West also scored with teleconferencing and over-the-phone debt collection. West Corp. went public in 1996, then went private last May. West and her husband received $1.6 billion and 20 percent of the new company. The couple are also horse-racing fans. Joanne "JK" Rowling >Harry Potter Books Born in England and once a single mother living on welfare in a coldwater flat in Edinburgh, Scotland, Rowling is now the only billionaire

author on Forbes' list. She became a multi-millionaire within five years of releasing her first Harry Potter book, which was conceived whilst on a train trip in 1990. The seventh and last installment of her wildly successful Harry Potter series, Harry Potter and the Deathly Hallows, was released July 2007 to throngs of rabid fans who made it the fastestselling book of all time. Rowling has become a notable philanthropist, supporting such charities as Comic Relief, One Parent Families, Multiple Sclerosis Society of Great Britain, and the Children's High Level Group. Weili Dai >Marvell Semiconductor Dai runs chipmaker Marvell Semiconductor with her husband Sehat Sutardja. Both were Chinese immigrants that met at UC, Berkeley; Dai studied computer science, and Sutardja studied electrical engineering (and has claimed to be the world's best analog chip designer). Together they founded Marvell in 1995, along with Sutardja's brother, and sold hyperfast chips for routers, hard drives, and Wi-Fi equipment. In June they announced intentions to buy Intel's cell phone chip business for $600 million, hoping to "Marvell-ize" it into profitability. Prior to founding Marvell, Dai was involved in software development and project management at Canon Research Center America, Inc. John Arnold >Centaurus Energy Raised by a lawyer dad and accountant mom, Arnold was born whizzed through Vanderbilt University in three years. He became an oil trader for Enron, supposedly earning $750 million for the company in 2001, when he was just 27. He went into business for himself after Enron collapsed a year later. Today he runs hedge fund Centaurus Energy. Xiaofeng Peng >LDK Solar Born in China, Xiaofeng started out with a trading company that blossomed into a family-run company producing safety products such as gloves. He consid-

ered adding Chinese-made solar panels to his export wares when he realized that no Chinese company was producing wafers, a key component for solar cells that makes up 25 percent of their cost. In 2005 Peng began pouring $30 million of his own money and $80 million of venture financing into building factories in his native Jiangxi Province. Now nicknamed Light, this solar energy newcomer took his solar energy company, LDK Solar, onto Nasdaq in 2007. Shivinder Singh >Ranbaxy Laboratories An alumnus of the Doon School and an Honors Graduate in Mathematics from St. Stephens College, Delhi, Singh is an MBA with specialization in health sector management from the Duke University Business School, USA. Singh and his brother are the largest shareholders in Ranbaxy Laboratories, India's largest pharmaceutical firm in terms of sales. Recently, he led the acquisition of Escorts Heart Institute & Research Center (EHIRC), the largest acquisition in the history of healthcare in India, to make Fortis Healthcare the second largest healthcare network in India and the biggest cardiac program in the world. Currently, he is the Managing Director of Fortis Healthcare Ltd. and Managing Director of EHIRC. Mark Zuckerberg >Facebook Tech's newest golden boy Mark Zuckerberg, from White Plains, NY, founded social networking site Facebook in February 2004 from his Harvard dorm room. Zuckerberg started programming when he was in middle school, and enjoyed developing computer programs—especially communication tools and games—from early on. While attending Phillips Exeter Academy, Zuckerberg built a program to help the workers in his father's office communicate. He also built a version of the game Risk, and a music player named Synapse that used artificial intelligence to learn the user's listening habits. Microsoft and AOL tried to purchase Synapse and recruit Zuckerberg, but he decided to attend Harvard University instead. However, he left Harvard early and moved to CA where the first Facebook office was set up. Today Zuckerberg serves as CEO for Facebook, and has never returned to Harvard.  Fall 2009 • SelfMadeMagazine.com

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s e lf- M a de I n t e r v iew s

Interview with Bobby Chang B

obby Chang is the COO of Rapidshare.

com, one of the world’s most visited web sites, with an Alexa ranking of just 15!

Adam: You have had considerable success with the launch of RapidShare in 2006.What business were you in prior to this? Bobby: I was in telecommunication voice and IP business before joining RapidShare, and the team already had a lot of experience in file hosting. Adam: You always talk about learning lessons and moving on. What lessons did you take with you into the launch of RapidShare? Bobby: I knew that technology is one of the keys to success. You need a high performing system landscape to match the users’ expectations. Another lesson I had learned was to always listen to the users carefully. Some companies lose this ability as they grow and I am always trying to match the users’ needs as quickly as possible. Adam: What is your educational background? Do you believe that the traditional education system fosters entrepreneurial spirit? Bobby: My background is economics and I think that entrepreneurial spirit is related to personality rather than education systems. I think the family background influences a lot, if you become an entrepreneur or not, because this is the place where children can learn to take on responsibility and make decisions. Adam: What is your management style and how has it adapted during your company’s rapid growth? Bobby: If a company grows, you spend more and more time communicating, motivating and inspiring people. I think communication skills are very important if you lead a bigger company. 16

SelfMadeMagazine.com • Fall 2009

> I knew that technology is one of the keys to success. You need a high performing system landscape to match the users' expectations. Adam: Your business is constantly under fire. How do you manage to retain such composure under constant pressure? Bobby: Of course it is hard, if the company is under fire. But at the same time there is a lot of success. That’s what keeps me going and what rewards me at the end of the day. Apart from that, we are a good team. Adam: You have been quoted as being an admirer of Steve Jobs. What are your thoughts on Bill Gates? Bobby: Bill Gates has done many remarkable things and of course he is a great man that facilitated many things in IT and communication. I often refer to Steve Jobs,

because the way he built iTunes relates directly to what we call Internet economics. He was the one who legalized Napster more or less, a task that everyone deemed to be impossible and that changed the music industry a lot.

Adam: What inspires and motivates you? Bobby: Many things inspire me. I like technology and I am fascinated by the Internet and all the new ways of communication and collaboration it offers. Every day, there is something new to be discovered, because there are millions of talented people out there designing next generation’s applications. That is exciting. 

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b u s i n e s s s t r a t eg y

To Borrow or Not to Borrow? D

eciding whether or not to borrow

money for your business is not an easy decision. There may come a point in your business venture when you realize you need help to get to the next level; and unless you’ve got lots of money stashed away somewhere, you’re going to have to start looking at business loans. Even if you do have money, it might be invested or you may just want to keep it as a backup in the harsh economic environment (who can blame you?). Even though the economy has slowed down, banks are still lending. So the question is: Should you borrow money for your startup? Only you can answer this question, but there are a few things to take into consideration before you make your decision. 1. Review your operating budget

Before you commit to borrowing and paying interest on any money, be sure you really need it. Go through your operating budget and fine tune it; cut costs if needed. Remember you’re paying extra for the money you borrow so everything you spend had better be worth it. 2. Talk to Your Family

If you can borrow money from your family, you’ll probably be a lot better off in the long run. Even if you have a legal written agreement and interest, you’ll get a much better rate and you’ll have some flexibility in case something really terrible and unforeseen comes up down the line. 3. Look for Investors

Not every business will have an investor waiting to jump at the chance to work with it; but if you’ve really got a great idea—something you know will turn the industry on its ear—then chances are pretty good that you can find someone with the cash to help you get started. The risk is limited because as long as you disclose the risks, you probably won’t have to pay back the initial investment if your business fails. However, the down-

> Before you commit to borrowing and paying interest on any money, be sure you really need it. side to having less risk is that you also have to work with your investors; and depending on the investor, they may be either hands-off or want to be actively involved. So before you settle on an investor, be sure to discuss your working relationship and make sure you have a meeting of the minds about how the business will be run and what your respective roles should be. 4. You’d Better Shop Around

If you’re going to the bank or credit union for a loan, be sure you shop around. Don’t

just go down to the same place where you have your checking account and fill out an application. True, it may take a couple weeks to go through and talk to different bankers, find out the terms of the different loans they offer, and read through their contracts; but in the long run it can save you thousands of dollars. It is well worth the effort. 5. Commit

Once you’ve borrowed money, you need to be prepared to commit yourself 110% to making it work. Simply having the money to make your business grow is only part of the battle (and a very small part, at that). Whether you like it or not, borrowing money places you in debt and that is a huge responsibility. Don’t be afraid—just do it!  Fall 2009 • SelfMadeMagazine.com

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t e c h n o lo g y

Creating a Business Back-Up Plan -Jennifer Walzer T

here’s no getting around it—business disasters will happen. I’ve learned that while you can’t avoid unexpected emergencies, you can choose the way in which you work through a disaster. Regardless of industry, thriving during crises depends on how prepared and protected you are. I own a data back-up company, and I’ve seen my share of turmoil. Running an emergency-oriented business has afforded me a ton of insight into the importance of preparation and response. In my experience, the companies that most often experience crises can be divided into three basic groups:

Unprepared and Unprotected These are the businesses that called for help after they experienced a major data loss. They got lucky, and while their lack of preparation didn’t put their business under, they try and do everything possible to avoid a future incident. Protected but Unprepared These businesses were protecting their data; however, they didn’t have a full contingency plan in place. Although we were able to help them retrieve their data, they weren’t prepared to deal with other elements of the disaster. Prepared and Protected These are the business owners who sleep well at night (or at least they would if entrepreneurs ever slept!). Their company data is protected, so they know they can recover it quickly. They also know what everyone in the company will do in an emergency, how they’ll communicate, how they’ll reach their vendors and where to find the information they need. While most businesses strive to be a part of the “prepared and protected” group, many fall short. In my experience, it all starts with data back-up. If a business is looking to maximize protection, minimize risk and make things as simple as possible, online back-up is best. There are different levels of service when it comes to online back-up, ranging from do-it-yourself to full-service options.

SelfMadeMagazine.com • Fall 2009

When selecting a provider, I tell my clients to ensure they offer the following: • Pre-installation analysis of business needs • Set-up process guided by a support engineer to ensure correct configuration • Daily monitoring of back-up activity to guarantee back-ups are always running correctly • Support provided by experienced, knowledgeable engineers, as opposed to call center employees with scripts in hand • 24/7 availability for emergencies • At least AES 128-bit encryption technology to protect your data during transmission and storage • An encryption key that the client creates and the provider does not know • Financial stability; i.e., they won’t go out of business any time soon (and take your data with them!) By selecting an online provider that meets the above criteria, entrepreneurs can be prepared for, and quickly recover from, any type

of emergency. However, being fully prepared for a crisis requires having a comprehensive plan that covers all aspects of business. For example, I have a disaster recovery plan in place that outlines things like alternate office locations, work-from-home information, staff roles during emergencies and contingency communication plans. In order to ensure this plan is accessible to my employees at all times, I’ve uploaded these documents to a secure online document storage site. In the event of an emergency, my employees will be able to access this information regardless of their location. I will then be able to implement my recovery procedures right away. By having my information adequately stored, I can rest easy knowing I’m ready for the unexpected. Jennifer is the founder and CEO of Backup My Info!, Lock Your Docs! and Qwipit. She has been an EO member since 2006. You can reach Jennifer at jwalzer@backupmyinfo.com. 

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s e lf- m a de pr o fil es

"When I Can No Longer Create Anything, I’ll be Done for." -Coco Chanel > It was in 1922 that Coco Chanel introduced one of her iconic products: the perfume, Chanel Number 5.

hen I can no Longer Create Anything, I’ll be Done for.” – Coco

Chanel. The story of the French fashion designer Coco Chanel is quite remarkable. She can be credited with making a significant impression on female fashions and is treated as an icon in the industry. She continued to innovate and contribute all the way up to her death at the age of 88. Born on August 19, 1883 in Saumur, France, Chanel—whose given name was Gabrielle—endured a troubled childhood. She was placed in an orphanage by her deadbeat father and was raised by nuns. However, the nuns taught her how to sew, which paved the way for significant achievements ahead.

Trying to find her way in life, she briefly became a club singer and assumed the name “Coco.” This name was a “shortened version of cocotte, the French word for “kept woman” according to Chanel. As she passed from her teen years, Chanel became involved with a couple of wealthy society figures in Paris. This association allowed her to start a millinery business and achieve reasonable success, expanding to other cities. She soon started making clothes and her offbeat style became an instant hit. It was in 1922 that Coco Chanel introduced one of her iconic products: the perfume, Chanel Number 5. This was indeed the first product to ever feature a designer’s name and it is popular even to this day. Perfume “is the unseen, unforgettable, ultimate accessory of fashion… that heralds the arrival and prolongs your departure,” she explained. It was around this time that she met her business partner, Pierre Wertheimer, whose family still has an element of control in the perfume company today. Revolutionary designs continued through the 1920s, including the legendary Chanel suit, which borrowed elements from men’s wear and helped liberate women from the restriction of corsets. “Luxury must be comfortable; otherwise it is not luxury,” she once said. The black dress, once reserved for mourning, was developed for evening wear and became very chic within society. Chanel had a natural eye and an entrepreneurial touch. “Fashion is not simply a matter of clothes”. “Fashion is in the air, born upon the wind. One intuits it. It is in the sky and on the road.” The devastation of World War II had a significant impact and Chanel closed her business. A controversial affair with a Nazi officer heralded a very negative period during her life. Indeed, after the war ended, Chanel

was interrogated about her affair and it is rumored that only the intervention of her friend Winston Churchill saved her from serious repercussions. After living a relative life of exile in the postwar period, Coco Chanel emerged back into the public eye at the age of 70. Once again, her natural and casual clothing became a hit with women and she’s credited with introducing bell bottom pants and pea jackets into common culture. Whilst she passed away in 1971, her legacy lives on to this day. Chanel never married, saying that, “I never wanted to weigh more heavily on a man than a bird.” The accomplished designer Karl Lagerfeld took the reins of the company in the ’80s and the organization honoring her name continues to thrive today. Numerous biographies have been written about her life. Katherine Hepburn starred in a 1969 Broadway musical “Coco” and in more recent times the acclaimed actress Shirley MacLaine starred in a television production focusing on Chanel’s career resurrection.  Fall 2009 • SelfMadeMagazine.com

Tomorrowâ&#x20AC;&#x2122;s future starts today. Visit Kidpreneurs.org and put the power into your childâ&#x20AC;&#x2122;s hand.

Product Description

You've heard the saying, "It's never too late." We say, "It's never too early!" Even children can be introduced to basic business principles and the rewards of entrepreneurship. Our goal with Kidpreneurs is to outline some basic tools and strategies kids can use to gain some valuable experience in starting, managing, and growing a successful business venture. Through easy-to-understand basic principles and a creative approach, we outline some key techniques that will have a powerful and positive impact on your child's ability to understand entrepreneurship. Using kid-friendly design and illustration, we break down some of the major points of entrepreneurship, so your child can have fun as he or she learns. Also, your child will enhance his or her decisionmaking skills by trying out simple businesses as he or she grows up. Tomorrow's future starts today. Share Kidpreneurs with your children and help plant the seeds for a stronger future. As Seen in:

Book Details

Reading level: Ages 7-13 Perfect Paperback: 64 pages Publisher: Business Plus Media Group LLC Language: English ISBN-10: 0692004246 ISBN-13: 978-0692004241 SAN: 931-6647 Library of Congress #: 2009931114 Suggested Retail Price: $12.95 Published by

711 E. Carefree Hwy Suite 205 Phoenix, AZ 85085 1.800.211.7608 ext. 700 info@kidpreneurs.org

About the Authors

Adam Toren and Matthew Toren are the founders of YoungEntrepreneur.com, which has quickly become one of the largest social networking forums for young entrepreneurs in the world. These brothers have many teaching and research interests including marketing, business development, entrepreneurial emergence, entrepreneurial strategy management, business growth techniques, innovation, and new venture creation. One of their specialties is improving profitability of under-performing businesses with a unique bottom-line program. Matthew & Adam provide instruction in management concepts and finance to emerging and distressed small businesses covering all phases of operations. Enthusiasts for enterprise, their ideas are not only based on research, but also on years of hands-on experience.

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s e lf- M ade I n t e r v iew s

Interview with Darren Rowse

arren Rowse is perhaps the most

famous full-time Blogger in the area of helping other bloggers add income streams to their blogs. www.Problogger.net Adam: Your writing style is very clear, informative and focused. Where does your writing style come from? It’s quite unique? Darren: It’s just the way I write and always have. I’ve not really thought much about it or done any training. I guess I just write like I think or speak. Adam: You are obviously a dedicated and thorough person. Do you think that these are two important traits for setting up your own business? Darren: Actually I’m not naturally that disciplined or thorough (just ask my wife). But for some reason when it comes to my business I’ve surprised myself with my ability to stick at it on a daily basis for years now. I could still work some more on the ‘thoroughness’ aspect of things, though. I’m not sure that they’re essential traits of someone going into business but they certainly help. I think traits like persistence, sticking to your values and goals and learning from your mistakes are just as important. Adam: You’ve been blogging since before most people had even heard of it. There has been a huge rise in the number of bloggers out there. Where do you see it going over the next 2 years? Darren: Now you’re making me feel old! The ‘future of blogging’ question is one that I’m asked a lot. A few thoughts:

• Obviously, there’s lots of changes in technology happening, which will impact what we do. • We’re also seeing convergence of technologies (blogs are looking less like ‘blogs’ and more like sites with different mediums). • People are still using the Web to hunt for advice, news, community and entertainment • Blogs that provide these things will thrive (this is one thing that isn’t changing). Adam: Would you class yourself more as a teacher, tutor or guide rather than a professional blogger, this seems to be what all your work comes down to. Darren: I see myself as a communicator and community builder. I’m passionate about these two things and my ultimate goal is to build communities that send people away from them better than when they came. This means teaching and sharing information, but it also means connecting people with one another and pointing out other resources online (and offline) to help them better themselves. I think if you consistently help people to be better at some aspect of their lives then you’re going to be a step closer to building a profitable business. Adam: You have a degree in theology. That is quite heavy. How did you keep yourself motivated to complete it whilst working as well? Darren: Well, the degree took me 10 to 11 years to complete, so it was a long-term thing and something that I was in no rush to complete. I’m not really sure I’ve got great tips to share on this except that it took me a good decade to find my feet and to discover what I was passionate about in life. I gradually honed onto it by looking at my experiences, skills, personality, gifts, values and passions and eventually ended up in what I’m doing (for now; who knows what the next stage will be?). Adam: Do you think that everyone should be encouraged to take the higher education route? What advantages does it give you?

Darren: I don’t think it’s for everyone. While I’m glad I studied theology (and marketing before that) what I do now has largely come about through teaching myself and trial and error. I am a big believer in self improvement and always being a learner, but higher education isn’t the only path to achieving these things. Adam: Do you think governments/law enforcement agencies should try and get involved with regulation and censorship of the Internet? Darren: I’m not sure that this is the answer. Our government here in Australia has been talking about censoring the Web and I don’t really see this as being a way forward. To be honest I’m not sure what the answer is but investing billions into shutting down parts of the Web doesn’t seem like a great use of money, I’d rather see them investing the cash into education and resourcing people to build parts of the Web that make a positive difference. Adam: Which of your current roles do you most relish and why? Darren: My day is made any time that I get an email from a reader telling me that something that I’ve published has shown them how to do something that’s important to them. I regularly get emails from readers sharing how they’ve learned to make money and feed their families through blogging, for instance. That never fails to make me smile. Adam: Now that you have settled into your new area do you miss the multicultural nature of where you lived before and do you think that its important that we expose our children to different cultures? Darren: I’ve only really moved about 15minute drive from where we used to live. Things are a little more ‘suburban’ here but I’m regularly back in my old haunts. Our kids are still pretty young but we’ll travel with them in the years ahead and will give them some good exposure to different cultures and people of different backgrounds. I know that this has been important in my own journey and think it will be for them too.  Fall 2009 • SelfMadeMagazine.com

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se lf- m a de i n t e r views

Interview with David Nilssen

avid Nilssen is co-founder and CEO of

Guidant Financial Group, Inc. Guidant helps aspiring entrepreneurs to invest their retirement funds into a business or franchise without taking a taxable distribution or incurring penalties. A strong believer in broad diversification and hands-on investing, Nilssen is regularly invited to speak at top venues throughout the country as a leading expert in alternative small business financing. Along with his 100+ employees, Nilssen has helped nearly 6,000 individuals use their retirement funds to invest in alternative assets. Under his leadership, Guidant was named the 6th fastest growing company in WA, and is currently known as the largest provider in the franchise financing industry. Its success has earned the company top national and regional recognition, including: U.S. Chamber of Commerce Blue Ribbon Small Business (2007 & 2008); Bellevue Chamber of Commerce Eastside Small Business of the Year (2007); Washington CEO Magazine Best Companies to Work For (2007 & 2008); and U.S. Chamber of Commerce NW Small Business of the Year (2007). In

SelfMadeMagazine.com • Fall 2009

2008, his firm was included on the Inc. 500 list (#384). In 2007, the Small Business Administration (SBA) named Nilssen the national Young Entrepreneur of the Year award, and the Puget Sound Business Journal named him one of the top 40 entrepreneurs under 40 years of age. In 2008, Ernst and Young named him a finalist for their coveted Entrepreneur of the Year award. An avid investor himself, Nilssen has purchased millions of dollars in real estate and helped to initiate many businesses within the service industry, including a real estate agency/property management firm and real estate development company. Nilssen, and his company, have been highlighted in media sources such as CNBC, Fortune Magazine, The Los Angeles Times and The Wall Street Journal. 1. What is the start-up story behind your business venture?

I was developing real estate in Bremerton, Wash., in 2002. The market was prime! That year, a friend introduced me to a real estate broker from Bellevue, Wash., who had built a business around helping investors find both speculative and income producing properties. Soon after meeting, we decided to work together on a major real estate project, one that required more capital than we had. When we asked our attorney for her advice on raising additional funds, she suggested we look at self-directed IRAs as a potential source of investment capital. Although it was still a fairly new concept to her, she explained that one could actually invest their retirement assets in real estate without taking a taxable distribution or incurring penalties. I specifically remember looking across the table at my business partner and thinking “What?!” If that was true, I could see it being huge for my real estate development business. That meeting with our attorney launched a frustrating research and development project. It was frustrating because there were

only a handful of companies that provided “real estate IRAs” and they all had different interpretations of the laws, their fees were expensive, and their processes were slow and complicated. After some heavy duty research and paperwork, we finally got a handle on the process and helped one person invest their IRA funds in one of our projects. We were amazed—and so were they, when they got a fantastic return in less than 12 months! Word got out, and the phone started to ring…. This business was started by an accident of fate, but we ran with it. We hired the right team and built a customer-centric organization around investing with self-directed IRAs. Six years later, we made the Inc. 500 list! 2. What is your definition of success, and has your company achieved it?

Have we achieved success? Sure— a level of it. Our clients have been very successful because we’ve given them access to alternative investments and to a level of personal financial control many never knew was possible. To me, their success is also ours. I have an insatiable appetite for both personal and professional development, and I’ve been privileged to watch Guidant play a role in this development in clients and employees. Despite inevitable ups and downs, my belief in our mission and the viability of our products remains as high as ever. While we have definitely achieved a high level of success, I believe we will enjoy even more success in the future. 3. What 4 pieces of advice would you give to aspiring entrepreneurs?

A. “Don’t take yourself so goddamn seriously.” Although it can apply to all aspects of life, when it comes to business, this quote by Ben Zander is one of my very favorites. I often find that too many new entrepreneurs are afraid to be wrong, or they’re not open to outside feedback or employee perspectives. You don’t have to do it all, you don’t have to pretend you’re invincible, and it’s okay to be wrong! B. Invest in technology so your business

can scale! It seems expensive at first, but if it’s done right, it will pay significant dividends as your business grows. C. Hire potential first, experience second. Some of the greatest hiring investments we ever made were in people who had infectious energy, tremendous ambition and a passion for teamwork and excellence. D. Have fun. I have to include this! You spend more time at the office than you do with your family. So believe in what you do, love those you work with and enjoy the time you’re there. If you don’t, then it becomes just a job — one with 100 times the stress! 4. Describe/outline your typical day?

5:30 a.m. Wake up and have breakfast 6:15 – 7:30 a.m. Work out at the gym 8:00 a.m. Head to work after grabbing a Starbucks and a newspaper 8:00 – 9:00 a.m. Work on projects for the Seattle Entrepreneur Organization (I’m a Board member) 9:00 – 11:30 a.m. Attend various meetings, participate in conference calls and respond to email 11:30 – 1:00 p.m. Lunch (generally a meeting) 1:00 – 2:00 p.m. Catch up on email (It’s never-ending!) 2:00 – 3:00 p.m. Have one-on-ones with staff 3:00 – 4:00 p.m. Research and write for blogs or articles 4:00 – 5:00 p.m. Re-cap with senior executives 5:00 – 6:00 p.m. Plan for tomorrow’s meetings 6:00 – 8:00 p.m. Dinner 8:00 – 10:00 p.m. Catch up on TIVO or read a book 10:00 p.m. Head to bed and think about where the next phase of growth will come from, how we stay ahead of our competition, what training to give staff… Eventually I get back up about 11:30 p.m. and start responding to email again. An iPhone is dangerous for insomniacs! 5. Where did your organization’s funding/capital come from, and how did you go about getting it?

We started Guidant with less than $10,000 and a couple of laptops. The company was cash-flow positive from the get-go. Recently, a few of our executives asked to invest in the company. We felt like this was a great exam-

ple of a team truly believing in the company’s potential, so there are a couple of convertible notes outstanding. 6. What stops you from throwing in the towel and giving up during those frustrating days of running your business?

You get frustrated because you are not seeing the results you want and that you know are possible. If you sincerely care about the business, then you generally don’t want to throw in the towel. There is a greater responsibility that an entrepreneur feels. If you are a great entrepreneur, you recognize it’s not all about you. It’s about your staff, your clients, your partners—and then you. If you are a servant leader, giving up is never an option. 7. Do you believe there is some sort of pattern or formula to becoming a successful entrepreneur?

* Be manically focused on your vision * Hire great people * Love what you do * Do the right thing no matter what

8. Who has influenced you most and been your greatest inspiration?

There have been so many! My grandfather was an amazing man. As an Oakland, Calif. police officer he saw the worst side of people and yet he always seemed to see the good in others. He was a dedicated husband, an amazing father, a charitable person and a good friend. When I need a personal pick-me-up, I turn to Anthony Robbins. His message is phenomenal—it’s not what happens to you but how you respond to it. It’s your choice. You have the ability to determine your “state,” and I try to remember that every day. Ben Elowitz at Wetpaint.com has been a tremendous mentor to me. Ben started FatBrain.com, an online bookstore that eventually sold to Barnes & Noble. Then he co-founded BlueNile.com, which he sold via an IPO. Ben has taught me that only I get to determine how much I can accomplish. 9. How do you go about marketing your business? What has been your most successful form of marketing?

Our marketing budget is heavily weighted toward channel marketing. Our business helps people buy alternative assets inside their retirement plan. The two most common investments made by our clients are real estate and small businesses. Because of that,

we spend a tremendous amount of time building relationships with professionals who are involved in those types of transactions (i.e., real estate agents, business brokers, etc.). Search engine marketing is also a major part of our promotional efforts. Lastly, we have a comprehensive content strategy that has allowed our Web site to increase its value for natural searches. 10. In one word, characterize your life as an entrepreneur.

Unpredictable.

11. Excluding yours, what company or business do you admire the most?

Earlier I mentioned Ben Elowitz and his company WetPaint.com. I am enamored with Wetpaint because of its ability to allow anyone—especially those without technical skill, to create and contribute to Web sites written for and by, those who share a passion or interest. To do this, Wetpaint combines the best aspects of blogs, wikis, forums and social networks so anyone can click and type on the Web. They have created well over a billion web sites in just two years off their platform. 12. Where do you see yourself and your business in 5 years? 10 years?

Guidant Financial Group will continue to be a thought leader in small business and selfdirected IRAs. Five years from now, Guidant will have many sister companies, all of which are focused on helping individuals and entrepreneurs take a more active role in their investments. As for me, I will continue to be a board member for Guidant, but I do not see myself as the “Chief” much longer. Over the next few quarters, I will look to take on an evangelical role for the company which will allow me to do what I do best (and love to do!). Guidant wasn’t my first business and it certainly will not be my last. There are many more to come! 13. If we could introduce you to anyone, who would it be and why? (You never know who we know!)

That’s easy: Magic Johnson. I was a huge Lakers fan growing up, and Magic was/is my alltime favorite basketball player. He’s had phenomenal success, faced tremendous adversity and is a very successful businessman. A very close second would be Anthony Robbins - mainly for the same reasons, but he also inspires and motivates me.  Fall 2009 • SelfMadeMagazine.com

Self Made Magazine 

1 VIP Odorless Toilet

Innovative

Inventions

It’s time to toss the smelly deodorizing chemicals! This new toilet uses a quiet, patented odor removal system which redirects the air in the bowl into the waste pipe, activated by a lift of the toilet handle. There are no filters or cartridges to change, no wall vents or special installation to worry about. It operates safely on 12 volts with either a standard plug or a rechargeable battery (sold separately). The toilet features a 1.6 gallon flush, a slow-close seat and lid, and a siphon flush with jet assistance. odorlesstoilets.com 2 EZ-Find! Electronic Locator System

If you easily misplace things, this little device can help you find them easily, too! The system tracks up to twenty-five items; each tag can be assigned a number or a personalized alpha-numeric text entry. Attach the tags to items using provided key rings or adhesive, then find them using a simple push of a “Find” button. The tags are sleek, the product affordable, and you’ll never waste valuable minutes searching for misplaced everyday items! Also try EZFind for Pets! ez-find.com

3 Take-a-Seat

A three-in-one device that makes traveling and tailgating a whole lot simpler! In one system, enjoy a two-person tailgate bench, a bike rack, and a cargo carrier. Choose from an array of fabric colors for the seat for additional cost or stick with the standard black. Carry up to three bikes on the bike rack. And transport up to 500 pounds of cargo on the durable, weather-resistant cargo carrier. thetakeaseat.com 4 Bodyguard

SelfMadeMagazine.com • Fall 2009

This product, by Creepex, is body protection for mechanics. A creeper with built-in frame protection, it has a 30,000-pound capacity frame, a ground clearance of 1 ½ inches, and an ergonomic backrest with lumbar support. The most comfortable and safe way for mechanics to do their job! creepex.com

Self Made Magazine 

1 Moshi Voice Response Alarm Clock

Stop wasting precious time in the evenings and mornings fussing with obnoxious alarm clocks. Moshi’s new talking time piece is a cut above the rest. While rummaging through the closet or shaving over the bathroom sink, simply greet the clock with a “Hello, Moshi” and proceed to give it a command like “temperature,” “time,” or even “today’s date” to have the pertinent information relayed back to you. Set the alarm and “hit snooze” via voice activation. The piece also serves as a night light and a sleep sound to soothe your slumber. $49.99 at moshilifestyle.com or through a number of online retailers.

Gotta Have It

Gadgets 1 2

2 OtterBox Commuter Case

With the amount of time businessmen and women spend on their cell phones, they’re bound to drop the fragile devices, which appear slimmer and smaller with each new model. To protect your life-in-a-box device, consider an OtterBox commuter case, which consists of a hard shell and soft silicone inside to absorb the shock your phone feels as it meets the pavement. OtterBox’s various protective cases are designed for iPods, iPhones, BlackBerries, Noka, Palm HP, HTC, and Samsung Instinct S30. $34.95 at otterbox.com

3 BugMe! App for BlackBerry Phones

So, you’re forgetful. Or just super busy and often distracted by urgent matters. Calendars and notes, even electronic ones, don’t cut it. Electronic Pocket’s new app for BlackBerry phones—note this app has long been available for certain other technology—allows you to create notes and set timed alarms for them, to mark notes “urgent” or “done” and search using tags or keywords. Create links in your notes to phone numbers and emails. And do all this and more without hassle. $2.99 on the BlackBerry App World directly from your phone. 4 Bamboo Briefcase

Go green, stand out, and stay fashionable with a bamboo briefcase. Made of Moso bamboo, grown in central China, this briefcase weighs only 5.5 pounds but is inherently stronger than steel with a tensile strength of 28,000 pounds per square inch. It is naturally water resistant, lined with soft suede, secured with two combination locks, and sports all the pockets you need. $199.95 at envirogadget.com

Fall 2009 • SelfMadeMagazine.com

6 7

5 Freeloader Portable Universal Solar Charger

Save on energy bills and be kind to the environment while charging your electronic devices like phones, PDAs, Bluetooth headsets, MP3 players, digital cameras, two-way radios, and game consoles. The Freeloader uses the sun’s energy and contains an internal 1000mAh Li-on battery that can store a charge for up to three months. It comes with eleven charger tips to fit many of your devices, as well as a USB charging lead that allows you to charge the battery using a computer. $49.99 at envirogadget.com 6 Breville Hot Cup

Get your caffeine fix or relaxing cup of tea to your work desk without delay! The Breville Hot Cup dispenses boiling water— the perfect temperature—in just seconds with the touch of a button. It is designed to be used just like a kettle, and dispenses enough hot water for just one cup, every time, with minimal splashing. Price varies. amazon.co.uk

SelfMadeMagazine.com • Fall 2009

7 TAG Heuer MERIDIIST Automobili Lamborghini Phone

It’s sleek, it’s rich, and it’s limited. The display is made from 60.5 carats of scratchresistant sapphire crystal, and every phone features Automobili Lamborghini’s trademark Tauras bull. Handsets are personalized with a selection of decorative back covers and all phones come TAG Heuer switches and all the technology you crave. Only 1963 units will be sold worldwide to pay tribute to the year Automobili Lanborghini was founded. meridiist.tagheuer.com/EUR 8 AIDA

It’s a driving assistant unlike any you’ve ever had. The Affective Intelligent Driving Agent pulls from sensors inside and outside the car, learns about your routes and destinations, and events and places in the city, applies predictive and adaptive routing to help you in your everyday activities. It receives real-time information about the city and suggests routes that avoid traffic and other obstacles. senseable.mit.edu/aida

9 ClickFree HD 1035 1TB backup drive

Canada presents a simple and effective way to back up important data with an alternative to a networked backup drive. Combining the extensive capacity of an external drive with built-in software for backing up files on multiple computers, it’s easy to use—which means you’re more likely to use it! Back up priceless business files for just $219. buy.goclickfree.com 10 Kodak Zi6 Flip Cam in HD

You never know when you may need to take a picture—and with this palm-sized favorite, you could try your hand at video blogging and other business savvy technological feats like recording presentations. At 3.8 ounces, it’s light, and features a 2.4" screen; but the built-in USB port and editing software, paired with the inexpensive retail price starting at $144.95, make it a musthave for small business owners! 

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t e c hn o lo gy

How to Make Pay-Per-Click Marketing a Success

ooks have been written about it. And

I mean big, thick books… Pay-per-click marketing, as best perfected by our Californian friends at Google, is touted as one of the most effective forms of online advertising. It’s quite a simple model really—advertisers show their highly targeted messages to potential consumers and pay a fee to the service provider only when a consumer clicks on their ad and goes through to their web site. The ads are displayed if they are relevant to

the search term, or keywords, entered by the searcher. Simple, really, and highly profitable to the Googles of this world. Depending on the competitiveness of the niche, advertisers can pay as little as five cents per click up to more than $40 or $50 per click, such as in the case of certain personal injury attorneys. Pay-per-click marketing is itself marketed as a perfect form of advertising, yet it is pretty complex and takes a good bit of understanding on the part of the

> Make sure that the page your ad points to, for clickthrough purposes, is also highly relevant and matched to your keywords in the content of your ad.

advertiser. There are a number of things to remember when it comes to successful pay-per-click marketing. Essentially, you must make sure that your ad is correctly put together and is part of a well thought-out campaign. It is not enough to come up with an ad and expect to get the best rates, the best position, or the best display-to-click ratio. As far as Google’s Adwords is concerned, for example, the position that you achieve on the page of search engine results is based on the click-through rate of your advert, and not just the bid price. The higher the CTR of your advert, the better position you will achieve, for the lower bid price. You must make sure that your ad copy is very well thought out. First of all, you will need to make sure that your search phrase or keyword is as targeted as possible — the ubiquitous long tail — otherwise you will pay very highly and get few qualified results. Your ad copy’s title should be highly relevant and ideally contain your keyword. Not only will your viewers think this is more relevant, but the Googles of the world who are in the business of assigning a much maligned “quality score” to your campaign will think so too. Make sure that the page your ad points to, for click-through purposes, is also highly relevant and matched to your keywords in the content of your ad. Otherwise you will get a penalty and your quality score will suffer, meaning that your ad will not show as highly on the page, or your cost per click will be higher. Always track the success of a pay-perclick campaign, and test, test, test. Use a large number of targeted key words and be sure to track which ones are effective. Get rid of those that are not, as soon as you possibly can. In short, pay-per-click marketing can be highly effective, but it requires a lot or preparation and attention during the running of the campaign!  Fall 2009 • SelfMadeMagazine.com

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s e lf- m a de pr o fil es

"I’m Not a Paranoid Deranged Millionaire. Goddamit, I’m a Billionaire." -Howard Hughes

oward Hughes was probably the first truly famous, controversial, wealthy extrovert. When you think of an archetypal billionaire his name probably comes to mind. He lived his life his own way and was, by any definition, completely unorthodox. In later life he became a recluse, which only served to accentuate the mystery surrounding him. Hughes was born on Christmas Eve 1905 in the lone star state of Texas, which seemed a fitting location for someone who was to go on to be larger than life. The entrepreneurial spirit existed in the family, as his father was at the helm of the Hughes Tool Company. Howard did not apply himself, and despite the fact that he was enrolled in private school, seemed to want to concentrate more on golf than anything else. Education was abandoned altogether when

SelfMadeMagazine.com • Fall 2009

father Howard Sr. died when his son was just 18. Howard dropped out and inherited the family estate. As he matured into adulthood, Hughe’s interests became very diverse and his ambition and ego plain to see: “I intend to be the greatest golfer in the world, the finest film producer in Hollywood, the greatest pilot in the world, and the richest man in the world.” Family quarrels ultimately led to him turning over operation of the family business and beginning his successful focus on the movie industry. With assistance from his uncle Rupert, who worked for Samuel Goldwyn, Howard and his first wife moved to Hollywood to start making movies. Academy Awards and controversy followed, as he was never shy about pushing the boundaries. Even in those early days there were rumors about his involvement in espionage and “behind the scenes” activity. As his burgeoning movie industry career unfolded, he also founded an aircraft company which, like his movie business, was also a subsidiary of the family tool business. Hughes again broke boundaries and never shied away from being controversial. Despite several clashes with authority, he was an aviation pioneer, setting speed and endurance records. In July of 1938 he piloted a special Lockheed plane around the world and cut the previous New York-to-Paris record, set by Lindbergh, in half. This industry was his true pride and joy. He once said, “I want to be remembered for only one thing—my contribution to aviation.” As the Second World War approached, Howard becames embroiled in one of his most infamous controversies. He was contracted by the government to build three “flying boats” in short order and only produced one, which itself flew only once. He was ridiculed by the public, who labeled the plane “the Spruce Goose.” The goose remains to this day one of Howard’s lasting legacies. Socially, he never seemed to want to settle

down, often dating Hollywood actresses, especially Katherine Hepburn. He seemed to be ever on the move and his empire peaked, postwar. Through all this expansion the boundaries between right and wrong became increasingly unclear and his huge empire was often linked with organized crime and the Central Intelligence Agency. Members of the Hughes staff were implicated in plots to assassinate Cuban leader Castro, a controversy that trailed all the way up to the White House. Hughes became more and more embroiled in the seedy side of politics and scandal. “Every man has his price, or a guy like me couldn’t exist,” he once said, unveiling his modus operandi for all to see. By the time of the infamous Watergate break-in of 1972 he was right in the middle of the forces that linked the conspiracies leading to the ultimate downfall of both the Kennedy brothers and the Richard Nixon administration. Major deals and controversy continued to follow. Hughes became a primary stockholder in Trans World Airways but sold his stock in the company when it faced numerous lawsuits in the ’60s. Later he was to take over Air West and placed himself in the midst of another row. Towards the end of his life he moved to Las Vegas and became more reclusive. As news began leaking about the CIA assassination plots he could not be contacted, yet the Hughes Tool Company was still front and center in clandestine operations and was indeed contacted by the CIA to help in a Soviet spy mission. In 1972 Hughes sold his remaining stock and ended his business dealings. His health was deteriorating markedly and he traveled to various different cities, including London, seeking treatment. Howard Hughes died April 5, 1976 and there followed a nasty battle for his estimated $2 billion estate, a controversy which seemed fitting in death for a man who was truly larger than life itself. 

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s e lf- m a de pr o fil es

After the Idea, There Is Plenty of Time to Learn the Technology

ixty-two-year-old James Dyson is

unlike others who can be classified simply as inventors and creators. He is not too wrapped up in this to forget the company’s bottom line and this is reflected in his considerable corporate success. Dyson, who graduated in interior design, has spent the last 40 years inventing one thing or another and has been very successful integrating and translating his ideas into corporate profits. Hailing from the southwest of England, this maverick has not been afraid to make controversial business decisions along the way as he strives to convert ideas into sales. For example, in the early 2000s he shifted a

large number of jobs away from a production line in England to a much more economical location in Malaysia. Bristling from the negative press, Dyson was mostly vindicated shortly thereafter when his company more than doubled its pretax profits. At his business locations, Dyson encourages innovation. He has gone out of his way to create the perfect environment for this to flourish. The average age of his employees is just 26 and he is always on the lookout for eager young graduates. He believes that the best ideas come from “getting your hands dirty” and is always ready to mix it up, by moving employees from position to posi-

tion and department to department, putting them in an environment where they are motivated to innovate. Dyson actively encourages people to think outside of the box. Whilst he has every respect for computers and the design options that they offer, he believes that everybody is a development engineer and that really good engineers draw by hand first and use rudimentary materials to create initial prototypes. He firmly believes that it is better to make a mistake and learn from them, rather than by having a surfeit of information that you do not need. Dyson’s research and development department is involved in producing radically new products, at a huge risk. He instills this tension into his engineers and believes that his final products are much better for it. Dyson is not afraid to get involved in the political arena either. He has strong views about government funding and tax relief, arguing that money allocated to higher education would be better redirected to small companies and innovators such as his. Tax relief should be increased, to stimulate money spent in development. As the inventor of a highly successful range of vacuum cleaners, James Dyson has been able to combine business savvy with cutting edge innovation to best effect. 

> Hailing from the southwest of England, this maverick has not been afraid to make controversial business decisions along the way as he strives to convert ideas into sales. Fall 2009 • SelfMadeMagazine.com

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t e c h n o lo g y

Managing Risk in Your Online Business Venture -Cindy Boyd

o you’ve decided to take your business

to the Web. Now what? Based on my 10 years of experience working with companies going online, there are some assumptions— and pitfalls—to avoid. The most common oversight is making network security an afterthought. Running a business online is no different from operating a traditional business. Risk management always plays a key role in decision making and the successful management of your operations. For example, if you accept a customer’s credit card, you are accepting a certain level of risk. To mitigate that risk, you create a bad debt allowance and perform credit checks. With computer security, there are best practice policies and procedures that can accomplish the same thing, although you must now consider how you operate in a “virtual” networked environment, as well as in your more traditional setting. The bottom line is about managing your risk proactively before you get into a reactive mode, when a breach of security has already happened. Here are some important things to consider:

Identification

The question is: “How do you protect your business when you may not even know where to begin?” The answer lies in first identifying what is at stake, what you are protecting and

where it resides. You need to make sure that your proprietary data remains confidential and that the company’s information integrity and availability is secured. The less reliant you are on a specific system, the less concern you have regarding risk management. The same applies to confidentiality. If the majority of your data is generally public in nature, you have less risk of exposure. Once you understand exactly what and how much you must protect, the degree of security effort required becomes more apparent. Select a Host

In my experience, many companies make decisions to outsource data hosting based on the level and the amount of data they want to secure. Hosted solutions can readily ease the risk management burden if handled properly. The challenge for the business owner is to ensure that the service level agreements realistically meet your needs. For example, the data may be secure, but you can only access it for one hour— not a viable option for most organizations. The service level agreement becomes yet another layer of risk management for both you and the service provider, but by clearly stating the business agreement so that both parties understand the implications and actions in effect, the risk is shared in a manner that is mutually beneficial. Online Compliance

Compliance and integrity are also issues that companies find themselves frequently addressing. The organizations that are most successful in moving their businesses to an online environment understand what they are protecting and the inherent risks that

need to be addressed. With that information, they can seek the appropriate level of help and security to ensure their online business venture remains a continued success. As seen in the previous examples, however, accidents will happen in a networked world, and it often pays to work with expert advisors to ensure you’ve covered all possible risks and eventualities. An experienced service provider can steer you in the right direction and help identify the risks you may not have considered, and then help you manage the risk based on his or her cumulative experiences and knowledgeable recommendations. Testing is Key

What else can be done to protect your business against unexpected security breaches? Testing is critical, and once you have tested, test again and test often. Once you have identified your data, outlined your Web application and prepared yourself for the online world, testing absolutely everything will illuminate most of the possible gaps. These gaps could range from security challenges and functional issues to crisisresponse-time issues because of the sheer volume of data. Regardless of the challenges that are uncovered, the advantage of testing is that you can identify issues internally before they become an external customer or marketplace problem. Finally, never let the threat of security breaches prevent you from implementing a great business idea. Just make a point to manage the potential risks from the inside, right from the start, before they cause your valuable information to escape into cyberspace. Cindy is the Co-Founder and President of Sentigy, Inc., a consulting firm that helps organizations optimize their processes in the areas of technology and human capital. She is a frequent EO speaker and currently serves as Chair of the EO Global Technology Committee. Cindy can be reached at cindy.boyd@sentigy.com.  Fall 2009 • SelfMadeMagazine.com

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business strategy

Managing Difficult People Effectively -Shamit Khemka

woman learned the dentist was simply using standard “dentist-speak” in assessing her condition (to protect himself legally). Once the patient understood she had not been personally insulted, the dentist felt comfortable saying he was sorry she hadn’t been happy with his work. Don’t Ignore What Works for Others

ifficult people on the job, whether

they’re employees or customers, can do more than just raise your blood pressure. Managed the wrong way, they can seriously jeopardize your business. My company provides clients with affordable solutions for improved business performance, so effective management is a vital part of our success. Here are some dos and don’ts I follow when it comes to managing my employees and customers:

Do Listen When Someone Gripes

I learned long ago that ignoring a complaint or turning a deaf ear to business problems can be costly. One long-time Web application customer of ours hinted repeatedly that she would like a more secure and advanced ordering system on her Web site. Rather than take the time to talk with her and find the right solution, I let her hints go in one ear and out the other. Sure enough, a few months later she emailed me to say that she had found a new outsourcing developer. I lost an important client because I failed to pay attention to my client’s needs.

SelfMadeMagazine.com • Fall 2009

Do Stay Calm and Professional

A peer of mine recounts how a call-center employee patiently let him vent his anger about a shipment problem before moving on to resolve the issue. My friend was in a fury when he first called, yelling loudly into the phone. But the service representative defused his anger by calmly and professionally responding, “OK,” until he quieted down. Sometimes, all an angry person needs is the opportunity to “blow off steam.” I’ve discovered that responding in an irate tone only makes situations worse. Don’t Blame or Be Afraid to Say You’re Sorry

I learned another valuable lesson from a peer. Alan Sharland, a U.K.-based mediator, resolved a conflict between a dentist and a patient by getting the two to talk together in a blame-free fashion. The patient complained that the dentist had done more work than she felt was needed, and she was even more offended that the dentist noted her “poor oral hygiene.” With Sharland’s help, though, the

I usually try to stick to my instincts when it comes to managing difficult staff members or clients. While I might like to manage customer or employee problems in one way— in person or over the phone, for example— my customers and employees might prefer different methods. I find it’s important to consider their approaches before deciding which to undertake. For example, by having a system to monitor blogs and social networking sites, an executive at Comcast Corporation was able to learn about a widespread cable outage and get it fixed. Comcast launched its “Web 2.0” customer-care system after several widely publicized incidents with disgruntled customers. Cases like this illustrate why it can be valuable to take a different route instead of the traditional approach to problem-solving. By teaming up with an information technology specialist, Comcast was able to improve communication with their staff and clients and help prevent problems before they start. All in all, there’s no secret guidebook to help entrepreneurs become more effective team leaders, especially when they’re faced with difficult people. In my experience, I’ve found that it comes down to being aware of your staff and clients, and working toward a resolution with everyone’s best interests in mind. Shamit is the CEO of Synapse Communications Pvt. Ltd, a CMMI-3 organization that provides custom Web and software development to global, small- and medium-sized enterprises. Shamit can be contacted via email at skhemka@Lwbbs.com. 

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b u s i n e ss s t r a t e g y

Tools for Managing Generation Y -Kent Lewis own research in order to make informed decisions. As such, they prefer not to be “sold” ideas by management. In fact, Gen Yers prefer to be a part of the decision process. In their day-to-day work, they also like to work the best way they see fit. Meaning

lso referred to as “Millennials,” Gen Yers are sociable, talented, well-educated, collaborative, open-minded, influential and achievement-oriented. Born between 1980 and 2000, they’re the first generation to be surrounded by digital media. I’ve discovered their traits include optimism, goal-orientation, civic-mindedness and inclusiveness— all attributes one desires in an employee, especially when it comes to business opportunities.

Challenges

As with any generation, Gen Y employees offer a handful of challenges. I’ve noticed there is the general distaste for menial work, minimal skills for dealing with difficult people or situations, impatience and a general lack of experience and (sometimes misplaced) confidence. Additionally, they tend to have unrealistic expectations, compounded by the inability to consistently meet or exceed those expectations. Environment

I’ve noticed that Gen Yers require a positive work environment. They also appreciate a little fun, excitement and irreverence to lighten the day-to-day workload. In my company, we’ve incorporated happy hour on

Fridays, monthly potlucks and quarterly field trips for this reason. Similarly, Gen Yers are environmentally conscious. I’ve found that “going green” can be a great recruiting tool. Community

Along with being environmentally aware, Gen Yers are also socially oriented. This means that they are accustomed to being organized in teams, making certain no one is left behind. Similarly, Gen Yers prefer to work with people they like, and they are very community– focused. I make it a point to provide one volunteer day per employee, per year. Growth

It’s not that previous generations lack ambition or drive, but Gen Y blows the bell curve. They are particularly growth-minded, which means they expect a clear career path, training and other professional development opportunities. I have found it wise to outline growth opportunities and how individual contribution will make a difference. Gen Y appreciates (if not expects) personalized rewards, in addition to group-based rewards. Empowerment

Due, perhaps in part, to their wired nature, members of Gen Y prefer to conduct their

Gen Yers are particularly focused on deriving purpose out of their profession. As such, they expect a workplace that is challenging, collaborative, creative, fun and financially rewarding. One way I create meaning in a job is to demonstrate the impact of Gen Y’s output, and how it moves the needle for my company. I’ve discovered that companies that are inherently compartmentalized or do not provide opportunities to socialize are at a disadvantage. Structure

Creating an organizational structure that works for Gen Y is tricky. Members of this generation enjoy flexibility and a dynamic work environment, which seems counter to a highly structured corporation. At the same time, their lack of experience and confidence can wreak havoc on an unstructured company. One solution is to empower leaders with honesty and integrity to communicate the company mission, vision and purpose. Communication

I’ve learned that a clear and concise approach to communications is critical to retaining Gen Y employees. In my company, I set expectations up front, outline objectives, provide necessary training and manage expectations. I also embrace technology as an element of corporate culture, as it is a means of sharing company information and fostering collaboration. Kent is President and Founder of Anvil Media, Inc., a search-engine marketing (SEM) agency. He is also an adjunct professor at Portland State University. He can be reached via email at kent@anvilmediainc.com.  Fall 2009 • SelfMadeMagazine.com

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business strategy

Not Everyone is an Entrepreneur A

lot of people nurture that dream of dumping the corporate world, with all its regimen and frustrations, and venturing out on their own to run the business of their choice. But the entrepreneurial world is also fraught with challenges, so how do you know if it’s for you? To help you decide, I’ve put together some of the characteristics which I’ve found distinguish the entrepreneur from the rest of us. There is no good or bad here, just different mindsets. So take a minute, put aside your fantasies, and take a hard look at who you really are. If you recognize yourself in many of these quotes, you will not be happy as an entrepreneur: 1) I like my life structured with clear decision criteria.” Entrepreneurs do not function well in structured organizations and do not like someone having authority over them. Most believe they can do the job better than anyone else and will strive for maximum responsibility and accountability. 2) Handling problems causes me stress and pressure.” Entrepreneurs are comfortable in stressful situations, and are challenged rather than discouraged by setbacks. They may actually be uncomfortable when things are going well, and are not troubled by ambiguity and uncertainty because they are used to solving problems. 3) My job is fun when everyone knows and does their job.” The best entrepreneurs enjoy the challenge of an undefined role, and enjoy the learning process as much as success. It’s even better when they can inspire and energize others to do things that have never been done before. 4) I like to put my mistakes behind me and never think about them again.” Entrepreneurs accept things as they are and deal with them accordingly. They are quick to learn from their failures. They may or may not be idealistic, but they are seldom unrealistic. They want to know the status of a given situation at all times. 5) Balance and family are important in my

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life.” Entrepreneurs may devote a disproportionate time to the business. During tough business periods, they will concentrate their energies on business operations, and may stay on the job for extended periods of time. Even at home or at social events, the business is always top of mind. 6) It didn’t get done today, but there’s always tomorrow.” Entrepreneurs have a never-ending sense of urgency to develop their ideas. Inactivity makes them impatient, tense, and uneasy. They have drive and high energy levels, they are achievement-oriented, and they are tireless in the pursuit of their goals. 7) That’s not my job.” Successful entrepreneurs can comprehend complex situations that may include planning, making strategic decisions, and working on multiple business ideas simultaneously. They are farsighted and aware of important details, and they will continuously review all possibilities to achieve their business objectives. 8) I love to get awards for my efforts.” Entrepreneurs find satisfaction in symbols of success that are external to themselves. They like the business they have built to be praised, but they are often embarrassed by praise directed at them personally.

9) I get frustrated when things don’t work.” Entrepreneurs have a “never, never, never quit” attitude. They are self-confident when they are in control of what they’re doing and working alone. Most are at their best in the face of adversity, since they thrive on their own self-confidence. 10) Risk and uncertainty cause me to lose too much sleep.” Some of the best entrepreneurs talk about the highs they get from taking a big risk, and the euphoria they feel when they beat the odds. They live for these feelings. If you are an employee, and you recognize your boss in the quotes, you probably are not a happy employee. If you recognize your CEO or business founder in the quotes, then your business is probably failing. That’s how important it is for the right people to be in the right category. In my experience, the most unhappy people are the ones who clearly fit in one category, but for various reasons believe they need to be in the other one (entitlement, more money, more prestige, family pressures). My message to you is do what you enjoy. Life is too short for the alternative. 

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s e l f- m a de pr o files

From Rags to Riches: The Levi Roots Story

evi Roots is an entrepreneur who fol-

lowed his passions. He never gave up— determined that he could make a living from doing the things he loved. The inspirational Levi Roots was born Keith Valentine Graham/Tanyue in Jamaica in 1959. His parents moved to the United Kingdom when he was 4 years old, leaving him and his siblings in the care of his grandmother. It was his grandmother, Miriam, who helped him learn to appreciate the raw ingredients that surrounded him. With these vibrant ingredients she taught him how to blend flavors to produce the unique cuisine of the Caribbean. At the age of 12 Levi was uprooted from everything that he knew to be reunited with his mother and father in the United Kingdom. He joined them in London—which must have seemed very bleak at that time in the nation’s history, to a young man from such a vibrant culture. Levi lived in South London with his parents and his five brothers and sisters. His father was a rat-catcher in London—and the family

lived, as most Londoner’s did, in the working class traditions. Levi missed Jamaica dearly, and to compensate for this he immersed himself in both Reggae music and cooking. Levi started recording and performing Reggae in the 1970s, first as part of a band, Matic16, with his brothers, and then later on as a solo artist. He set up his own record label in 1982, Conqueror Records, which he then sold, and in the 1990s he started Soundbox Music. He has received considerable acclaim in the music world, and in 1998 he was nominated for “Best Reggae Performer” at the MOBO (Music of Black Origin) awards. Throughout this time, his interest in Caribbean cuisine never waned. In the early 1990s he perfected the sauce that was used on the annual food stand that he and his family ran at the Notting Hill Carnival. In 2006 they sold 4,000 bottles of the sauce on this stall. It was apparent by this time that in order to achieve his goals he would need to obtain funding, and to this end he started to take the sauce to food trade shows. He

was spotted at one of these shows by a BBC researcher who asked him if he would like to appear on Dragons’ Den. Levi wowed the panel and TV audiences alike with his unique musical pitch to the Dragons. Peter Jones and Richard Farleigh offered Levi £50,000 in return for a 40 percent stake in his business, which he gladly accepted. Since winning funding on this TV program, his business and brand has gone from strength to strength: He still owns Reggae Reggae Sauce with Peter Jones and Richard Farleigh. They are currently diversifying their range to include other sauces. The sauce is now sold nationwide in the United Kingdom. In some supermarkets the sauce has outsold the ketchup brand leader. He opened his own restaurant and takeout service in 2007, Papine Jerk Centre, Lavender Hill, London. The fast food chain Subway started to sell the Reggae Reggae Chicken Sub in its UK outlets in 2008. He has brought out a cookbook (Reggae Reggae Cookbook, Collins, 2008). He has made appearances on various TV programmes, from Harry Hill’s TV burp through to cooking programmes such as Ready Steady Cook and Market Kitchen. He has his own series starting on the BBC in 2009, called Caribbean Food Made Easy, where he takes the viewers to the Caribbean to explore various food histories, as well as taking his own special food out on the road for people to try across the United Kingdom. He has a new album in the works due for release this year. He is also a widely sought after entrepreneurial/inspirational/motivational speaker. So, what’s the lesson here? If you are sitting there with an idea—which you truly believe in, it can take several years of dedication and hard work to make it a reality, but on the other hand, sometimes it only takes a single day to turn everything around.  Fall 2009 • SelfMadeMagazine.com

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t e c hn o lo gy

Reaching People in Your Local Area Using The Internet: A Case Study W

e recently received a question posed to us by an accountant in a small town location. His business relied heavily on local directory advertising and he wanted to know how he might be more effective in using the Internet to draw in potential clients. He had some experience of using pay per click as a marketing method but little else and we gave him some suggestions to help him learn how to reach people in his local area using the Internet. To start off with, we reminded him that he sold a specific set of services targeting a given audience—in other words, bookkeeping and accounting services designed to assist other local businesses, clubs, associations and the like. As such, he should use the power of the Internet tailored specifically to his local area. We noticed that his web site did not contain much “meat,” and reminded, that content is still king. We suggested that he needed to create articles directly related to his services and the need for good accounting practices. The articles should be optimized and specific, rather than generalized. In this way he could target specific words that were being searched for by potential clients. We noted that wouldbe clients are always looking for a company that is experienced in handling their particular problem and evidence of this ability should be displayed prominently within the site. When it comes to the “social proof” that everyone is searching for, we recommended that there should be plenty of prominent opportunities for people to comment on the site and leave testimonials. These have a significant effect when it comes to search engine rankings and can help to elevate a site in front of potential clients. The structure of the site was not particularly well thought out and we recommended that he sit down with a clean sheet of paper and map out how a person would more logically follow the information trail within the site. Make sure that the visitor has an easy time surfing through the site and should

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not be put off by broken links, which are also counter-productive when it comes to an analysis of the site by the all important search engines. We suggested to him that the process of building an article bank of information within the site would help to establish him and his operation as experts in the field. As visitors read his articles and find them useful and informative this will also elevate his status within their minds as the “go to guy” to help them in the future. As by its very nature accounting must be detail oriented, we reminded this gentleman that his web site should be really well presented, comprehensive and should not appear to have any stones left unturned. This includes the need to fix or purge incomplete references, bad links, missing bios or any dated material, such as comments, some of which were obviously out of date and gathering cyber dust.

To help him corner the local market we suggested that he include the name of his town and nearest metro area within the keywords and title tags of his pages. This will help the major search engines to enhance his site visibility when someone searches, on a geographical basis, for an accountant in his area. It is, astonishingly, quite easy to rank highly for a geo-targeted keyword—in his case incorporating his town and the word “accountant”—by just following some fundamentals. It should be perfectly possible for him to elevate his practice to a high position on the first page of Google results within a fairly short space of time. Sit down and plan out your site and make sure that it projects you and your organization professionally and as niche experts. Optimize your site from a geographical point of view and ensure that your content is always fresh and interesting. You will soon have an open door to your local market. 

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business strategy

Rebuilding the Cultural Structure -Joao Costas Reis I

look at a company’s culture as a distin-

guishing mark— a personality that defines and separates a company from all the rest. For me, a company is like a country. It has its own people and history, a government, a territory and a particular culture. My company, Domusvenda, is like a young country. We kicked off in 2003 with fewer than 20 employees and limited experience in an unexploited market— the acquisition and servicing of non-performing loans (NPL) in Portugal. We had the determination, the desire and the right amount of team work. We were a country ready to make our global presence felt. Looking back, I can say that my company’s culture was based on familiarity, drive, youth, informality and an almost absent hierarchy. We were like a single team working toward a common goal. People knew each other and there was a feeling of friendship and confidence. We were energized, talented and anxious to grow. I thought I was prepared for growth. Turns out I had some learning to do. Handling Change

My company grew at a lightning-fast pace. The growth started in 2005, but 2006 was a decisive year. Banks grew more interested in selling NPLs, and we became the most recognized company in the market. By the end of 2006, our number of employees had risen to 140, and we started to develop a solid hierarchy. As a consequence of this fast growth, the company’s culture started to shift. Some changes were strategic; others came naturally. All of a sudden, I found I didn’t know all the employees’ names or in which department they worked. I also couldn’t gauge the daily concerns of my employees. Though the growth of my business was great, it threatened to damage the identity of my company. Taking Action

I assessed the situation and took strategic action. I empowered more people to make decisions, systems were improved to create work

flows, more departments were created, rules were put in place, performance-based compensation programs were implemented and recruitment became more exigent on higher skills and qualifications. This gave my company a stronger skeleton, though it wouldn’t prevent a decline in office morale. Naturally, the employees became more unfamiliar with each other, and the work environment became more competitive and less personal.

My constant presence in the first years was a decisive factor in building and rebuilding the cultural structure. Even though the company is now quite different, I still find time to talk with most of my employees to learn about their concerns. I also try to find solutions ahead of time and maintain my companywide presence whenever possible. By knowing what’s going on at the staff level, I can better predict dilemmas.

Moving Forward

Since 1994, João Costa Reis has been a business pioneer in Portugal. He is the Founder, Chairman and CEO of Domusvenda, a company that handles the acquisition and management of non-performing mortgage, corporate and consumer loans. To reach João, you can email him at joao.reis@domusvenda.pt. 

My company managed to weather a blizzard of business woes and came out alive. Today, Domusvenda is the Iberian leader in the NPL business. And, in spite of the changes our company culture suffered, I’m happy to say that our “country” didn’t lose its identity.

Fall 2009 • SelfMadeMagazine.com

SelfMadeMagazine.com • Fall 2009

Fall 2009 • SelfMadeMagazine.com

Lessons from

Richard

Branson How to Identify an Opportunity

This is how Richard Branson identifies an opportunity:“We look for opportunities where we can offer something better, fresher, and more valuable, and we seize them. We often move into areas where the customer has traditionally received a poor deal, and where the competition is complacent. And with our growing e-commerce activities, we also look to deliver ‘old’ products in new ways. We are pro-active and quick to act, often leaving bigger and more cumbersome organizations in our wake. When we start a new venture, we base it on hard research and analysis. Typically, we review the industry and put ourselves in the customer’s shoes to see what could make it better.”

SelfMadeMagazine.com • Fall 2009

Fall 2009 • SelfMadeMagazine.com

his is a hallmark of Branson’s strategy for entering new markets—look for industries where the customer is either being taken advantage of or is receiving such poor service that they would welcome a change. One of the hardest jobs of a new business is to convince customers to switch from an existing supplier to their company. Switching costs include time, money, and energy and customers typically do not want to move suppliers unless they have no other choice. If customers in your industry are already happy with their existing supplier then you will be fighting an uphill battle to land new business. Focus on markets where the switching costs are low because your potential clients are so dissatisfied with their current providers that they would welcome a change.

Don’t Do It for the Money

“Above all, you want to create something you are proud of…. That has always been my philosophy of business. I can honestly say that I have never gone into any business purely to make money. If that is the sole motive, then I believe you are better off doing nothing. I don’t think of work as work and play as play. It’s all living. I’ve had to create companies that I believe in 100%. These are companies I feel will make a genuine difference. Then I have to be willing to find the time myself to talk about them, promote them and market them. I don’t want to spend my life doing something that I’m not proud of.” I have researched and profiled over 70 famous entrepreneurs on my web site so far and one of the recurring themes that comes across is to start a business because you love doing it and because you feel you are making a difference instead of doing it for the money. Starting a business requires a lot of hard work and effort. You will invest your time, your money, and a lot of energy to get it off the ground. Sleepless nights will be the norm and you will not get the chance to see your friends and family nearly as much as you would if you were working a 9 to 5 job. Such is the life of an entrepreneur. It usually takes a couple of years of hard work before a business really brings in any kind of serious revenue. Many of the most famous entrepreneurs in the world struggled for a decade, or more, before their company hit it big.

If you start a business only for the money then you are likely not going to be prepared to put in the effort needed to make it succeed. In addition, instead of loving what you are doing you will be forcing yourself to go to work, hoping that one day it will pay off. Sure, you need to have a business mind and focus on trying to land clients so you can support yourself and build your company, but it should not be your primary concern. Focus on your passion and on making a difference and the money will follow. Focus On the Business

"I was never, ever interested in becoming a businessman or an entrepreneur. My interest in life comes from setting myself huge, appar-

ently unachievable challenges and trying to rise above them. I was interested in creating— creating things that I could be proud of and so, you know, I was interested in being an editor of a magazine, I had to become a publisher as well. I had to pay the bills. I had to worry about the printing and the paper manufacturing and the distribution of that magazine." Many entrepreneurs start out because they have a passion for creating - whether it is inventing a new product or dreaming up a new service that has never existed before. Unfortunately, while most new entrepreneurs are great dreamers, they are not good executors or businesspeople. Fall 2009 • SelfMadeMagazine.com

At the end of the day you will have a family to support and bills to pay. Not many people can afford to live a life of simply creating new ideas and not working to commercialize them. To be successful you need to understand the business side of your industry. Becoming a businessperson is usually a step outside the comfort zone of most new entrepreneurs and might take some getting used to. You might consider taking a course offered by a local organization on small business management. Many local government organizations also put on free seminars for new business owners. You need to create a business plan, a marketing plan, and then go out there and hit the streets selling. There is an old expression that “nothing happens until somebody sells something.” Being creative is not enough to be a successful entrepreneur—you need to convince people to spend money on your creations and make enough from it to support your lifestyle. If you are not business minded enough and do not want to learn how to be, find someone who is. Get a partner who can handle the business side of working with customers, partners, investors, media, and other stakeholders to make sure that the business runs smoothly and the money comes in. Otherwise your chances of success drop dramatically and your creations will not have the opportunity to improve the lives of people as you hope they would. Build a Solid Team

“As much as you need a strong personality to build a business from scratch, you also must understand the art of delegation. I have to be good at helping people run the individual businesses, and I have to be willing to step back. The company must be set up so it can continue without me. The companies that look after their people are the companies that do really well. I’m sure we’d like a few other attributes, but that would be the most important one.” Most businesses are run by solo-entrepreneurs. The entrepreneur does the selling, the production, the capital raising, the partnerships, and is even the company bookkeeper and janitor. One of the biggest challenges entrepreneurs face is building a business beyond themselves. It is crucial, however, to delegate and bring on help if you hope to grow your company because there is only so much one person can do. In the startup phase you will end up doing

SelfMadeMagazine.com • Fall 2009

The sooner you can start bringing people into your business to help you, even if it is only for an hour a day, the sooner you can focus your time and energy on projects that will be more valuable to your company. Create a Brand

“In the beginning it was just about the business – now it’s about the brand. Many people know the Virgin brand better than the names of the individual companies within the group. If you get your face and your name out there enough, people will start to recognize you. Branding is everything. A young girl once came up to me and told me I could be famous because I looked just like Richard Branson!”

> Many new entrepreneurs feel like they cannot afford to hire employees but fail to realize that you do not need to hire a full-time person. most of the work yourself but as soon as you start bringing in revenue you should take a good look at where you are spending your time. Is your time being used up on high value projects such as landing new business, or are you doing low paying jobs that can be easily outsourced? Once you start bringing on additional help you can leverage their work to take your business to the next level. Many new entrepreneurs feel like they cannot afford to hire employees but fail to realize that you do not need to hire a fulltime person. Start by offering a part-time position. The first person I brought on in my company was working for me for one hour per day doing admin work that I did not want to do (and could not afford to do if I wanted to grow my business). An easy way to find people is online at— web sites such as Elance. Here you can post projects that you need to get accomplished and people will bid on them. You can review their qualifications, cost, and previous experience. Also look at the people around you who might be good fits for your business— if only for part-time work.

One of the most powerful tools you can use to grow your business is leverage. The concept of leverage is to put the assets you have to work for you in the most effective way possible. It is commonly used in financing where you borrow money against your house, for example, to be able to invest in a higher return asset such as the stock market. If the market returns 10 percent a year and you are paying 6 percent interest then you have earned 4 percent on your money without having done any real extra work. Richard Branson applies this same philosophy to his businesses. He has spent a lot of time and effort building up his Virgin brand. It is recognized as a leader internationally and Branson has been leveraging his brand by partnering with likeminded individuals to enter into new markets. He does not have to do much work in the companies he helps build. What he brings to the table is the credibility that goes along with the Virgin name while his partner does the work of operating the business. Think about how you might be able to better leverage your business and your brand. Partner with individuals who share your same passion and will represent your brand effectively. Give them the opportunity to work under your banner and split the profits - you end up doing very little actual work but can bring in significant new money because your partner is working hard and is benefiting from using your name (they are also leveraging your name to build their business faster than they could without you). You do not need to be the size of Virgin to benefit from brand extensions—just find someone who is smaller than you and is eager to start /expand. 

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s e lf- m a de i n t e r view s

Seth Godin Interview S

eth Godin is a bestselling author,

entrepreneur and agent of change. Godin is author of ten books that have been bestsellers around the world and changed the way people think about marketing, change and work. His books have been translated into more than 20 languages, and his eBooks are among the most popular ever published. He is responsible for many words in the marketer’s vocabulary, including permission marketing, ideaviruses, purple cows, the dip and sneezers. His irrepressible speaking style and no-holds-barred blog have helped him create a large following around the world. Seth’s latest book, Tribes, is a nationwide bestseller, appearing on the Amazon, New York Times, BusinessWeek and Wall Street Journal bestseller lists. It’s about the most powerful form of marketing-leadership-and how anyone can now become a leader, creating movements that matter. The Miami Herald listed it among the best business books of 2008. Unleashing the Ideavirus is the most popular eBook ever written. More than 1,000,000 people downloaded the digital version of this book about how ideas spread. Featured in USA Today, The New York Times, The Industry Standard and Wired Online, Ideavirus hit #4 on the Amazon Japan bestseller list, and #5 in the USA. The Big Red Fez, Godin’s take on web design, was the #1 eBook (worldwide) on Amazon for almost a year before it was published in paperback in 2002. The Miami Herald called it one of the best business books of the year. Survival is Not Enough has made bestseller lists in Germany, the UK and the United States. With a foreword by Charles Darwin, this breakthrough book redefines what change means to anyone who works for a living. Tom Peters called it a, “landmark.” The book was first excerpted in Fast Company, where Godin is a contributing editor. His latest book, Purple Cow, was a New

York Times and Wall Street Journal bestseller. It’s all about how companies can transform themselves by becoming remarkable. Seth is a renowned speaker as well. He was recently chosen as one of 21 Speakers for the Next Century by Successful Meetings and is consistently rated among the very best speakers by the audiences he addresses. Seth was founder and CEO of Yoyodyne, the industry’s leading interactive direct marketing company, which Yahoo! acquired in late 1998. He holds an MBA from Stanford, and was called “the Ultimate Entrepreneur for the Information Age” by Business Week. Name of Company: Squidoo.com Industry: the Internet Type of company: the number-one site where anyone can post information about what they are passionate about. Year founded: 2005 Location: five cities, including NY Number of employees: 5 Adam: What is the startup story behind your business venture? Seth Godin: Our goal is to raise millions of dollars for charity at the same time that we make it easy for people to share their ideas, build a following and earn money. Adam: What is your definition of success,

and has your company achieved it? SG: I think success is being able to repeatedly do work you’re proud of. And yes, we’ve achieved it, from the first day, and three years later we get to keep doing it. Adam: To what do you attribute your company’s recent achievements? SG: Understanding the Meatball Sundae, doing work that matters, working with great people and trusting our users. Adam: What three pieces of advice would you give to aspiring entrepreneurs? SG: Scale matters. Be the right size in everything you do. Persist through the Dip or don’t bother starting. Adam: What have been some of your failures, and what have you learned from them? SG: I’ve posted many of them. Sometimes it has to do with misunderstanding a market. More often, it’s about getting stuck in the Dip, not having the resources or wherewithal to push through. Adam: Describe/outline your typical day? SG: That’s the great thing. There isn’t one! Here’s what’s always true: 1. I work with only amazing people. 2. I don’t go to meetings. 3. Because my scale is comfortable, I don’t have to sweat revenue on a daily basis. We are at a size we can afford. Adam: Who has influenced you most and been your greatest inspiration? SG: My mom and my dad. My readers. Jacqueline Novogratz at acumenfund.org Adam: How do you go about marketing your business? What has been your most successful form of marketing? SG: Deliver anticipated, personal, and relevant messages to people that want to get them. Be remarkable. Earn permission. Adam: In one word, characterize your life as an entrepreneur. SG: Onomatopoeia. Not because it is, but because I like that word a lot and get to use it rarely.  Fall 2009 • SelfMadeMagazine.com

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s e lf- m a de pr o fil es

Be Yourself---Thomas Watson, Founder of IBM I

n his youth, Tom Watson was anything

but the picture of success he would later come to be. He was asthmatic, shy and had few friends. But this loner would soon become one of the greatest and richest salesmen in the world. As one of the most successful self-made industrialists of his time, Watson would turn the winds of fate, transforming his humble beginnings into a career whose legacy continues to this day. When Watson decided to change the name of his company to International Business Machines, he knew that it was a big name for a small company. But, over the next few decades, Watson would build the company to live up to its name. From a traveling door-to-door salesman to CEO of one of the largest expanding companies in the U.S., Watson’s name has since become synonymous with not only the beginnings of the computer industry but with what it takes to become a successful entrepreneur. How did he do it?

It’s quite simple, really. Double your rate of failure. You’re thinking of failure as the enemy of success. But it isn’t at all. It is better to aim at perfection and miss it than to aim at imperfection and hit it. You can be discouraged by failure or you can learn from it. So go ahead and make mistakes. Make all you can. Because, remember that’s where you’ll find success: on the far side. Plan for the future…Have faith in the future. Resolve to stand for something big and fine outside of your business life. Solve it. Solve it quickly, solve it right or wrong. If you solve it wrong, it will come back and slap you in the face, and then you can solve it right. Expose your ideas to the danger of controversy. Speak your mind and fear less the label of ‘crackpot’ than the stigma of conformity.

SelfMadeMagazine.com • Fall 2009

Follow the path of the unsafe, independent thinker. Every time we’ve moved ahead in IBM, it was because someone was willing to take a chance, put his head on the block, and try something new. Too many people are waiting for someone else to give them a push. We have tried to develop self-starters in IBM. All the problems of the world could be settled easily if men were only willing to think. The trouble is that men very often resort to all sorts of devices in order not to think, because thinking is such hard work. You must guard constantly against those who lack vision. You must guard against the reactionary mind. Always cultivate and associate with persons of vision and with persons who believe that things are going to be better. When you do this, you take on the kind of

vision, backed by the right kind of inspiration that you need if you are going to grow in this business or any other business. It is impossible for any man, I don’t care how able he may be, to do the work and attend to all the details of a business to accomplish anything without the support of his entire organization. This business is such that neither I nor any executive staff can run it alone. It is too big. Our company has grown each year and succeeded because everybody has been contributing to its success. Your success will be determined by the manner in which you use the tools you have been given to work with. When practicing the art of selling use all your talents. Put everything you have into your efforts; above all put your personality into them. Never copy anybody. Be yourself.” 

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se lf- m a de i n t e r view s

Interview with Tony Hsieh T

ony Hsieh is the CEO of Zappos.com.

Under his leadership, Zappos has grown gross merchandize sales from $1.6M in 2000 to over $1 billion in 2008 by focusing relentlessly on customer service.

Adam: You have had a stellar career so far. What was the motivation that drove you to achieve so much so early? Tony: I guess I’ve never really thought of it as a “career.” I love the creativity that comes with being an entrepreneur and the challenge of building and doing things that haven’t been done before. Adam: Harvard must have been a really cool experience. Is going to a university something you would recommend? Tony: I don’t think it really matters what college you go to… what’s important is being exposed to a diverse group of people and perspectives, which you can get from almost any college. Adam: Your degree is in Computer Science. Are computers still a passion for you? Tony: Yes, I’ve always enjoyed computer programming. Adam: What was your first business, before LinkExchange, and what were the lessons that you took away from that venture? Tony: I ran a pizza business in college with a college roommate. I learned that it was a lot of work and how easily a business can scale is an important thing to always keep in mind. Adam: Getting that approach from Microsoft, when they wanted to purchase LinkExchange, must have felt unreal. How did you cope with the changes in your life that came along with the sale? Tony: For me, my life actually didn’t really change that much. I really didn’t go out and buy anything that I wouldn’t have bought before the sale, and I continued to hang out with the same friends I had always hung out with. So there wasn’t really much of a lifestyle change for me. Adam: Was moving from the pure Inter-

> We built Zappos Insights in response to suggestions from a lot of other businesses and entrepreneurs. net marketing world of LinkExchange to Zappos as daring a move as it seemed at the time? Tony: I think every business has its own advantages and disadvantages. I just viewed Zappos as a new challenge. Because we started with a really passionate team, I felt confident that as a team we would figure out how to grow the company and get through all the challenges. Adam: You run a very interesting business from a culture perspective. What shared beliefs did you have that underpinned Zappos' 10 Core Values and how do you get the staff to buy into the culture? Tony: I sent an email out to the company and asked everyone what the Zappos core values should be. I received a lot of suggestions, and over the period of a year, we came up with our list of 10 core values, which you can view here: http://about.zappos.com/our-unique-culture/zappos-core-values Adam: You have achieved so much with

the Zappos brand over the last 10 years. What is next for the business? Tony: Most customers know that we sell shoes, but this year we are making a big push into clothing. We actually have a fairly large selection of clothes, which you can see here: http://www.zappos.com/clothing Adam: Who are the people and trends to watch for in the online retail market at the moment? Tony: I actually don’t personally know too much about trends—that’s something that our merchandising team is responsible for! Adam: Tell us about Zappos insights; do you believe that this type of program, as well as mentoring young people, is the way forward? Tony: We built Zappos Insights in response to suggestions from a lot of other businesses and entrepreneurs. We haven’t really promoted it much, as it’s still in its early stages, but there is already a lot of really useful content on the site which we’ve received great feedback on.  Fall 2009 • SelfMadeMagazine.com

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s e lf- m a de i n t e r v iews

Interview with Tyler Cruz W

hat started as an assignment at school now earns Tyler Cruz six figures a year. He runs over a dozen web sites, and has sold domains for as much as $200,000!

Adam: You started on this enterprise at a very young age. How long would you say it actually took you to establish your business in its current format? Tyler: I actually wasn’t all that young when I started. I started making my living from the Web at around the age 21, which these days isn’t very young. Then again, it’s far easier to make money online now than it was back then. Once I moved out and started to truly rely on my Web income for a living, it only took around a year to a year-and-a-half to start making $100,000 a year. Adam: The niches that you enter would appear to be subjects that you actually take a keen interest in, do you think that this is important? Tyler: Absolutely. Not only will you naturally know more about subjects that interest you which in turn helps you build your niche, but you will actually enjoy working. It’s like that saying goes: find a job you love, and you’ll never work a day in your life. Adam: You have an extensive network of sites, what tips can you share about keeping them all fresh? Tyler: I’d be lying if I claimed to keep them all up-to-date and growing, but I do try to spread my work around them as best I can. Personally, I find it helps if I concentrate on working on one site at a time. Once I put a lot of time and effort into growing the site, I’ll move onto the next one and concentrate only on it. Trying to juggle all my sites at the same time just doesn’t work for me. Adam: What is your position on outsourcing, and if you do have you learned any lessons along the way that you can share? Tyler: For me, outsourcing is often essential. For programmers especially, there just simply aren’t that many freelancers and companies in 46

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the West… at least, none that are affordable. There used to be a lot more in the late 90s, but I believe all the good ones got hired up by big companies and new dot com startups. I use the popular outsourcing web sites such as elance.com, odesk.com and guru.com to outsource programmers. You have to be extremely careful, though, as there are hordes of programmers in India, China, and Russia that will promise the world but will often fail to deliver on their promise. My best advice is to be extremely selective when choosing a provider, hiring only those who have very good feedback. Adam: How do you see the Twitter explosion panning out? Is it sustainable in your view? Tyler: I absolutely think it’s sustainable, and it will no doubt continue to be amongst the most popular social networking sites such as Facebook and YouTube. It’s amazing how such simple ideas are so often the most successful. Adam: Obviously the global economy is not good at the moment. Many people are saying thatInternet-based businesses have not been hit as hard as more traditional bricks and mortar businesses. Have you found this to be the case? Tyler: I couldn’t agree more. Personally, I haven’t seen any effects from the “economic

slowdown,” and none of my colleagues have either. If anything, business is booming for us. Adam: Are you planning any major launches for 2009 or do you see this as a time for consolidation? Tyler: I already have more sites than I should. For the last part of 2009 I plan on returning to affiliate marketing and getting back into that game. Adam: I have noticed that you like to read horror/fantasy fiction,. Do you also read business writing and if so which one resonates best with you? Tyler: I haven’t read that many business books. In fact, the only one that I’ve really read has been the famous Rich Dad, Poor Dad by Robert Kiyosaki. While I believe that reading such “motivational business” books is important, I also feel it important not to take it too seriously and always read such books with a grain of salt. I actually find reading blogs to be much more useful in terms of practical knowledge you can actually use. Adam: There are so many Internet gurus” out there. Are there any out there that you keep an eye on? Tyler: I read John Chow’s blog for interest, Jonathan Volk’s blog for inspiration, Zac Johnson’s blog for knowledge, and Shoemoney’s blog for industry news. There are so many people out there you can learn from, it’s scary. Adam: What is it that you think has made you a success in this market where so many others fail? Tyler: I actually try stuff. It seems that most people tend to get so caught up in reading that they never actually do anything. Reading is important, but you could read for a thousand years straight and still have never accomplished anything. I also think many people are scared of failing. So what if your first site doesn’t take off, or you lose $300 on your first affiliate marketing campaign? Everyone fails. If you don’t try, you can’t succeed. 

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t e c hn o lo g y

What Software Do You Really Need? T

here can be enough to worry about

when you are starting or expanding a new business without having to spend time analyzing your hardware and software needs and fretting about the latest versions of this tool and the functionality of that one. The size and scale of your enterprise will, of course, determine your actual requirements, but fundamentally, a small business needs:

> An increasing number of companies are looking at "voice-over Internet" protocols to cut down on hardwired land line phone costs and companies such as Skype provide web based software applications.

Communication Software.

Few companies rely on “snail mail” these days as technology demands that we communicate almost instantaneously. Desktop email software products provided by companies such as Eudora help to compartmentalize, project your brand image and save you from the dreaded spam mail all at the same time. An increasing number of companies are looking at “voice-over Internet” protocols to cut down on hardwired land line phone costs and companies such as Skype provide web-based software applications. Mozilla’s Firefox is now well known as a provider of an alternative to Microsoft’s Internet Explorer, but we have not had the chance to evaluate their email platform, Thunderbird. Accounting Software.

There is a huge variety of excellent accounting software packages available and they can directly interact with tax preparation software suites. These days you do not need to be a CPA or have a degree in accounting as the software is very user-friendly. At tax time, products designed for corporations, LLCs or sole traders walk you through your liabilities. Freshbooks offers a new twist to this arena and the “fastest way to track time and invoice your clients.” Productivity Software.

Microsoft’s Office software suite was once the dominant player in the sphere of office productivity, with word processor, spreadsheet and various other functional templates

available to help you write letters and crunch numbers. Other players are available in the market today, including Open Office, whose products are free.

your professional image. They may be highly rated, but would you choose a time management software product called Chaos?

Security Software.

If you don’t have a physical storefront, you may want to conduct some form of e-commerce. If you have a web site and wish to sell your products and services, software providers can set you up with a shopping cart linked to your site and provide a gateway to credit card processors. There are dozens of options and ecartsoft is one of the most visible, offering easy setup “within seven minutes.”

In terms of security, the very least that you will need is a working and constantly up-todate virus protection product. Norton and McAfee may be the most well known, but AVG has a growing reputation and is free. Also, if you feel that your premises are vulnerable you should also consider surveillance cameras linked to security software to record anything untoward You may also need: Database Software.

There are many excellent software programs available to help you manage leads, import databases and generally interact with potential clients. These programs can be worth their weight in gold if you have an active sales force and want to avoid duplication and confusion, to say nothing about maintaining

E-commerce Software.

DTP Software.

Just as snazzy accounting software products emerged to relieve you of the burden of dealing with an accountant, so the latest desktop publishing software packages can bring out the creative graphic artist in all of us. Hundreds of different product developers are waiting to serve you, including some of the better-known ones, Adobe and Corel. Scribus is open source and has solid reviews.  Fall 2009 • SelfMadeMagazine.com

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business strategy

Why a Great Logo Design is Key to Your Business > If you do not have a natural eye for design, bring in a friend who does, or better still someone who has some expertise in this area, to get their advice. Make your logo aesthetically pleasing.

Your finished result should be balanced, clean, distinctive, and functional. Your logo should “work” when reproduced through any medium, in monochrome as well as in color. Avoid a generic look.

Don’t be tempted to use clip art and come up with a redundant look. Be creative! Be cost effective.

irst impressions are everything. We

know this from our daily life experience, where we are constantly discovering new people, places, products and services and making instantaneous, subconscious, assumptions. When it comes to your business, one of the first impressions that a client gets to see is your logo. It should be a well conceived, well designed, instant interpretation of everything that your business stands for. So, when it comes to designing a logo, there’s no pressure, right? It’s crucial to understand several key elements when it comes to designing a great logo for your business. First, you should do some soul-searching. Do you have the funds or resources to be able to employ the services of a professional logo designer? While this person or company may be the answer to your problem, many new businesses rarely have the funds available to go down this route. As this is often the case, here are some of

SelfMadeMagazine.com • Fall 2009

those key elements to consider as you come up with your own masterpiece. Choose your logo type.

You can simply choose to portray your business name in one of the very many thousands of different fonts available. Or, you could choose to incorporate a visual image representing your business type. For example, you could include a graphic of a paintbrush if you are an artist. Finally, you could merely base your logo around a custom-made symbol of some kind, but this is not advisable as in your early days you need your logo to be instantly identifiable and to relate to your specific business enterprise. Get your message across.

You need to be very clear what your message is, to start off with. Keep this message firmly in your mind when you are creating your logo and try to get it across in graphic form.

Don’t go over the top and create a masterpiece of design with deep colors using a rainbow spectrum. Remember that you are going to have to reproduce your logo in many different formats and you might not be too pleased with the accompanying costs. Make sure it is usable.

If you do not have a natural eye for design, bring in a friend who does, or better still someone who has some expertise in this area, to get their advice. Will your logo translate into all potential environments? For example, how will it look when reproduced on a polo shirt? Take time to address the fundamentals and enjoy the process of logo creation. It can be a lot of fun, but you should remember to keep your customers in mind with a focus on the very purpose for your business when you put everything together. Your logo will help you to build valuable equity, establish credibility and achieve success. 