Bioenterprise Blog Feed

Receive Money Back when You Apply for the CETC tax!

Mon, 6 Feb 2012 12:57:08 -0400

Oh the joys of the hiring process! I’m sure managers must jump at the opportunity to hire a new employee, because who wouldn’t want to read piles and piles of cover letters and resumes, or sit through endless hours of interviews, sounds appealing doesn’t it?

If you are one of these managers who dislike the burden of recruiting new employees, you should definitely consider hiring a co-op. University or college institutions typically set up the hiring process, which means your work is cut in half. All you need to do is provide a concise job description and decide what degree programs you feel will adequately qualify for the demands of the position. This will help to filter out the types, and amount, of students who apply to the jobs, ultimately simplifying the hiring process. Now just sit back, and wait for the applications! Institutions will also assist in securing time slots for the interview process, according to your convenience.

Seems pretty simple now, right?

‘CHA CHINGGGG!,’ there goes that sound in the back of your mind…will you be able to afford the costs of hiring a new employee? Have no fear, the Co-operative Education Tax Credit (CETC) is here... if you a hire a co-op student, that is.

The Ontario Ministry of Revenue has introduced the CETC, which benefits employers who hire students enrolled in a co-operative education program at post-secondary institutions across Ontario. Simply put, you can receive up to $3000 in tax credits!

Is hiring a co-op student sounding better to you yet?... Still not convinced?

In addition to our eagerness to learn and apply our academics to the real world, co-op students may choose to recognize your company as an ‘outstanding employer.’ This could grant you the opportunity to win awards such as “Co-op Employer of the Year” (depending on the institution). I’m sure Bioenterprise Corporation can definitely vouch for truth in this statement, as recipient of this award in 2010 from the University of Guelph.

Start contacting post-secondary institutions near you, to see if your organization can benefit from this great opportunity, and be amazed by our student potential!

Christina Lippa
Marketing and Communications Assistant, Bioenterprise

Novel Businesses Require Novel Funding

Mon, 30 Jan 2012 13:39:16 -0400

Noted below is a link to an IndieGoGo site for Nicole’s Farm. IndieGoGo is a social capital and "crowdfunding" site for novel, start-up companies. Bioenterprise is currently working with Nicole Huska, founder of Nicole’s Farm, to assist her in proving the business model.

Nicole’s Farm is a pioneer in the development of Small Plot Intensive farms (SPIN) in the Sunshine Coast of BC. Nicole’s plan is to identify 1 acre plots that are currently un-used by landowners and to negotiate a lease of the land for the farming of produce. This land could be a homeowner's back yard or a hydro right-of-way, etc. Nicole's Farm would negotiate the land lease, and prepare the property (fencing, ground prep, irrigation, etc.). Furthermore, they would identify and contract farming staff to tend to the seeding, nurturing, and harvesting of the produce (this staff may be the land owner, but not necessarily). Nicole's Farm would make arrangements with local retailers, restaurants, markets, and food service agencies for the purchase of the produce. Nicole sees this as a franchise model. Each 1-acre farm is forecast to produce $100K in revenue per year through deep bed, no till, multiple crops, and sustainable agriculture practices. $50K is margin after the 1st year costs set-up are absorbed. The proceeds go to the landowner, the farming staff, and to Nicole’s Farm to recover the costs of set-up and management. This is a novel way for Canadians to grow, sell and eat local.

Beyond Nicole’s concept, I think the funding model is intriguing. Much like making charitable contributions to micro-businesses in the 3rd world aimed at getting entrepreneurs their start, IndiGoGo introduces a similar strategy….many “random” partners supporting a business concept that they identify with.

Now, for clarity……I’m not soliciting funds for Nicole. I just find her concept and the IndiGoGo model novel and worth chatting about. A new model for farming combined with grass roots Venture Capital.

I encourage you to visit the Nicole’s Farm and to educate yourself on “crowdfunding”.

John Pickard
Executive in Residence, Bioenterprise

Importance of having a registered office address

Mon, 28 Nov 2011 14:48:50 -0400

Business success is largely about building consumer loyalty; and consumer loyalty lies in the ability to identify with a company that communicates trust and confidence. Having a physical office space for your company defines your company image, and helps establish a stronger corporate brand.

Most start-ups don't have the funds available to rent or purchase commercial real estate. Being cost effective is important, but compromising quality to save a buck will only hurt your bottom line in the long run. Here's why...

In today's world, working from a home office is often stigmatized. Consumers often get the idea that a home-based business isn't a substantial one.

While starting out in a home office is one thing, consider that having a registered office address gives a persona of professionalism and success before tossing the idea of obtaining an office space on the backburner. Working in a community environment also increases drive and creativity, which often lacks in a home office.

So what can you do if you can't afford an office rental but want to give your business a more professional approach?

Co-working:
Co-working is typically less expensive than traditional office space. It can be a good first step out of a home office for many. Wikipedia defines co-working as a “social gathering of a group of people, who are still working independently, but who share values, and who are interested in the synergy that can happen from working with talented people in the same space.” Do an online search of "co-working in xxxx", xxxx being your city, and you'll find websites that list various co-working facilities, such as Co-Working Toronto.

Office space by the hour:
The concept of renting a meeting room for an hour or a day is catching on with start-ups and entrepreneurs. The services usually provide a business address, mail service and 24/7 access to office space on a pay-per-use basis. It's a variable cost as opposed to a fixed cost of thousands a month on a lease.

There are solutions out there to give your start-up or home-based business a professional edge, and taking full advantage of them will help your business reach new potentials.

Emily Prange
Marketing and Events Assistant, Bioenterprise

Pondering Intellectual Property

Thu, 24 Nov 2011 08:38:39 -0400

Intellectual property (IP) often forms a strong foundation for technology companies. And that it should, given the millions of dollars of R&D that build the foundation behind technology and product development for bio-economy based companies. However, along with the value that patent filings and trade secrets may bring to your company, you must also be aware of the inherent risks and expenses brought about by your IP protection strategy.

Patenting is by far the strongest method of protecting your technology from being legally duplicated on the market in the countries you file. In short, a patent is an exchange between an inventor or their legal representation and the public. The owner of the patent exchanges the knowledge of the valuable intellectual property they have conceived and reduced to practice in exchange for the right to solely manufacture and sell it in that country for the term of the patent.

The competitive advantage that your patent provides may be the most valuable edge you have in the market over your competitors. However, with this strong statutory protection for your IP comes unavoidable cost.

When asked in the past, I’ve estimated the MINIMUM cost of having a patent issued in the US alone at $20-30K. However, depending on the complexity of the technology and pre-existing knowledge in the area, you may be looking at much higher costs when all is said and done. Based on a quick scan of the opinions of others with experience in IP protection, the cost of filing to issuance of a patent could be anything from $10K-100K. That is quite the range to prepare for.

So, the take home is that patent filing may be integral to your business strategy, but it is not cheap, and these costs need to be accounted for when forecasting costs your business will face.

A patent may be a strong mechanism of protection, but a trade secret may get you to where you want to go without giving up knowledge of your intellectual property to your competitors. Foregoing the need to file a patent also allows you to direct your business dollars to other activities. However, this means your “special sauce” must be kept a secret through non-disclosure agreements and management of information, which comes at a cost as well. The question that needs to be asked when considering whether IP should be kept a trade secret is “Can my idea or product be reverse engineered?”… that is, will the competition be able to understand the intellectual property from the product you sell and use it for their commercial benefit?

When deciding on your IP protection strategy, you also need to take into account other factors such as barriers to market entry, whether the benefits to your company are worth the costs of patenting, and regions the IP may be useful for either manufacture or sale of product.

To determine the best IP strategy for your company, it is certainly worth working out the pros and cons of each with a trained professional. Having an introductory conversation with a patent agent with a strong knowledge in the technology and market your products will enter into is a very good investment.

Tom Dowler
Senior Business Analyst, Bioenterprise

The Importance of Communication

Tue, 22 Nov 2011 11:58:43 -0400

"Keep in Touch"...

It’s a phrase we use loosely but an important invitation in both our business and personal relationships.

Communication can bring opportunity, connection and success to entrepreneurs who stay connected to sources such as Bioenterprise, which has a vast and varied network of resources.

I have come in contact with many entrepreneurs here. Some have sent a brief email inquiry or arrived in person for establishing meetings. Others are contracted clients who have moved on.

“Keep in Touch” is just that: an open invitation to communicate with us and stay connected to Bioenterprise by sharing updates, changes and developments, media coverage, product development, or design changes or just letting us know how you are doing. This is news we like to hear and would like to promote.

We have recently redesigned our website (bioenterprise.ca) and incorporated social networking tools that will allow us to tell your story to a greater network. The benefit to you, of course, is the greater awareness of your innovative company. So stay in touch. Your success is our success, and we are here to help you.

Stay in touch. Stay networked.

Laura Millson
Entrepreneur Services and Office Operations Coordinator, Bioenterprise

Cash Flow

Wed, 9 Nov 2011 08:43:25 -0400

...the only thing that counts.

I learned about cash flow the hard way, as most do. The good news is that it wasn’t by writing cheques on my business account and then realizing that there wasn’t any money there. I wrote my first business plan completely and on my own using an online template. The template walked me through revenue calculations, expense calculations and forced me to research employee benefit costs and payroll taxes. When all was inputted into the template, the magic happened and out came a ream of documents including the P&L, Balance Sheet and Cash Flow statement. The beauty of the template was that it gave monthly cash flows for 3 years out based on my projections.

As a non-financial manager, I was glad to have all of this data, but I really only understood the P&L as I had created all of the inputs myself. However, biz plan in hand, I marched off to BDC to see what they thought about lending me some money for my venture. The meeting was short. The first question that I was asked was “how much money do you need”. After an awkward pause, I said that I didn’t really know. Within minutes I was back on the highway headed for home. That meeting became my wake-up call. It forced me to come to terms with my financial data. Back I went to the template and began to play with it. I soon learned that if I tweaked revenues and expenses, then my cash flow situation improved or declined with each tweak. I also realized that my biz plan showed months where cash flow was negative and I’d effectively be out of business without ready access to loans or investment at the right time. A bit more figuring helped me realize the exact month(s) that my business would need a cash injection and how much that injection needed to be for me to stay solvent. Furthermore, I was able to calculate the cost of the projected cash injections in terms of interest, etc. Low and behold this all affected the Balance Sheet. I was seeing how it all came together.

Having seen a few hundred entrepreneurs in the past 3 years, I find the component most often missing is financial awareness. If the entrepreneur is not trained as a financial manager, then the financial piece of their business plan is usually a few paragraphs of text and a basic Excel spreadsheet showing “hockey stick” revenue coming right out of the gate. As I so directly learned, this is a sign of a failure in the making.

If you need help with your financials invest in good business plan software (make sure it is relevant to the Canadian market) or check these links out:

My key learning was that nothing is more important than cash flow. I said NOTHING! Learn how your revenues and expenses relate to one another and how they drive the financial documents necessary for your business. If that task is beyond you, invest in a professional who can produce, understand and explain the financials to you. Make that person a part of your team. Treat that person well.

John Pickard
Executive in Residence, Bioenterprise

Solar Trash Bins

Tue, 8 Nov 2011 14:48:23 -0400

High-tech Trash.

In our cities, waste collection can be pretty wasteful itself. Garbage trucks have to make near constant trips to keep public trash bins from overflowing—contributing to traffic and pollution. To keep our cities in harmony, we'll have to figure out a better system for urban waste collection. The people at BigBelly Solar already have one solution.

Watch our Innovation Video of the Week:

Produced by Eve Marson and Max Joseph

Source: GOOD Magazine

Networking 101 � Building Relationships for Growth

Fri, 28 Oct 2011 10:31:36 -0400

Networking is the key to success in business according to Keith Ferrazzi, business coach and author of Never Eat Alone, a book about the power of relationship building and networking. Networking helps you find jobs, recruit talent, win new customers and discover investors who will support your ideas. With the right approach, you can build lasting relationships. Here are some tips to become a master networker:

Do your homework – If possible, get your hands on the attendee list before the event and identify a handful of people you want to meet. Look up their profiles on Google and LinkedIn and learn about their background to determine the best way to approach them.
Prepare your pitch – Create a 15-second verbal business card that you can use when you are introducing yourself to people. It should be clear and concise. Who are you? What is your company? What are your goals? What is it that you want from these new relationships that you are developing?
Set goals – How many people do you want to talk to and who in particular?
Be yourself – Keep in mind that networking is about being genuine and authentic, building trust and relationships, and seeing how you can help others.
Use body language – A firm handshake with eye contact is crucial because people intuit a great deal from that first brief exchange. Maintaining open body language by never crossing your arms is important.
Be an ambassador – Act as a host, not a guest. Introduce yourself to those standing alone and ask if they would like to meet others.
Listen and ask questions – We have two ears and one mouth, so use them proportionally. When you listen, really listen. Have meaningful conversations with the people that you meet and ask open-ended questions.
Be generous – Networkers believe in “givers’ gain” — that by helping someone, you both benefit. Your approach to networking should be completely selfless. Give referrals wherever possible. In doing so, you will become a helpful resource for others and people will remember to turn to you for suggestions, ideas and information. This keeps you visible to them. Always be thinking how you can help the person you are talking to. Your network isn’t about what you can gain from it, but what you have to offer it. So make yourself available, approachable and knowledgeable.
Trade business cards – Be sure to exchange business cards and write notes on the backs of cards you collect to remind yourself of what you discussed and any commitments that you made that you will need to follow up on.
Manage your time effectively – Spend no more than 10 minutes with each person, and don’t linger with friends and associates.
Follow up, quickly! – You will have wasted your time if you do not follow up right away. Follow up by email and refer to something of significance from your conversation. Be sure to also deliver on any referrals or connections that you have committed to.
Connect via social media – After meeting, also add your new contacts to your LinkedIn community and follow them on Twitter.
Meet one-on-one – To further build the relationship, you may ask to arrange a call or to meet in person one-on-one.
Keep in touch – Once you have a new relationship, you have to nurture and cultivate it. Keep in touch so that it can grow.

What not to do

No selling! Networking events are not meant to be a vehicle to get people to buy your products or services; they are about connecting and building relationships – a beginning, not an end. You are looking to develop a long-term relationship, not a short-term sale.
No spamming

Every person you meet has the potential to drastically change your life, so when networking, lay it all out and see what comes of it. Networking is not about exchanging business cards; it is about building relationships. As a network builder, network building is to me like developing new friendships. I listen, offer help, care about their goals and enjoy their company, and everything else falls into place.

Eco-Gym

Mon, 17 Oct 2011 10:05:33 -0400

Lowering your impact is no sweat.

Nothing kills that post-workout buzz like contemplating the environmental impact of traditional gyms—the air conditioning, the cardio machines, the thousands of tiny towels that are washed daily. But Manuel de Arriba Ares, a retired Spanish gym teacher, has come up with an alternative: all the exercise equipment in his gimnasio ecológico requires no electricity and is made entirely of recycled materials.

Watch our Innovation Video of the Week:

Source: GOOD Magazine

10 Reasons to Start Up in Canada, eh?

Wed, 12 Oct 2011 09:50:07 -0400

Here are some reasons to Start Up in Canada:

Whether you are looking to start a business or have already turned a profit, as entrepreneurs, you are always looking for new opportunities. Sometimes the grass may seem greener on the other side. But why venture south when Canada is the place to be?

We Are Home to the World. Not only are Canadians diverse global citizens that come from all parts of the world, but we also attract the brightest newcomers. In a world where connectivity is king, Canada’s diversity lends itself to global business opportunities of all sorts – from importing, exporting and leveraging global business models to discovering new innovations and working with others from different cultures to give life to new ideas – our diversity is our strength.
We’re Connected. Nearly 27 million Canadians are connected to the Internet. Of those, nearly 60% are actively using social networks. This means that we work with global teams and run global businesses at our fingertips. You don’t need to be based in Silicon Valley to be a successful entrepreneur. Success is not a place, and it is a small world.
We’ve Got Smarts. Canada is one of the world’s best-educated nations in the world with exceptional talent ready for you to hire. New programs pop up all the time to encourage academic-industry relations, which can give your company a competitive edge by working with the best and brightest.
Canada Loves Its Entrepreneurs. Canadian entrepreneurs are well respected for the impact that they make in creating jobs, strengthening communities and fuelling the economy. Increasingly, they are being celebrated and recognized for their contribution.
Lots of Support! There are thousands of small business associations, networks and organizations that provide networking, learning and support across the country that are just itching to help you start and grow your business – so you need not be alone.
Government Gets It. All levels of government in Canada understand that small businesses are the engines of Canada’s economy, so they provide programs, services and tax incentives to ensure that Canada’s entrepreneurs have a running start. While there will forever be new ways to improve government support for entrepreneurs, Canada remains one of the easiest countries in the world in which to start up and do business.
Talent and Innovators Galore. Great Canadian entrepreneurs give life to remarkable companies – e.g. RIM, Bombardier, LuluLemon, Holt Renfrew, Chapters, McCain Foods and Tim Horton’s. We develop world-class technologies, produce inspiring creative works, and create scientific solutions to global problems – and that’s just with 34 million of us floating around.
The Beautiful Land. From Niagara Falls, Banff and the Prairies to the Atlantic Coast and the Territories, we’ve got natural beauty and space to spread out. You need only drive out of the city to see untouched sites and do the unwinding that all entrepreneurs need.
Standard of Living. For eight years in a row, the United Nations has ranked Canada as one of the best places to live in the world. Canada enjoys one of the highest standards of living in the world, a safe environment and a modern health care system.
And of course, our sense of humour, our beer and our bacon – to get us through the rollercoaster we go through as entrepreneurs.

ONE Network

Mon, 3 Oct 2011 10:26:01 -0400

Ok….so one of my previous blogs was on the theme of “One”….the One Man Band in the business world. This post is also on the theme of “ONE”. A bit different though.

Bioenterprise is a newly minted member of ONE (The Ontario Network of Excellence). This is the Ontario Ministry of Research and Innovation’s effort to bring new technologies to the forefront faster, and with better success rates than in the past.

So what is ONE? Essentially it is a number of agencies (about 25) scattered across the province that are set up specifically to assist entrepreneurs in getting their businesses up and running. Staffed by those who have “been there, done that”, the member agencies in ONE assist entrepreneurs as they pull the pieces of the business together and get their product or service into the marketplace.

You might assume our offices are populated with knowledgeable, government employees; the employees who work here (while knowledgeable) are in fact commercialization experts. These are real, live, business people who have the battle scars to prove it. Many have been wildly successful and some have crashed and burned. All bring valuable experience to your business.

The member agencies of ONE are fairly diverse, not just geographically (from Windsor to Thunder Bay and many stops in between) but rather, in terms of their expertise. First, there are the RICs (I wouldn’t be a new program without an easy to remember acronym) otherwise known as Regional Innovation Centres. These are one-stop locations for entrepreneurs of all stripes: Hi-tech, Pharma, Medical Devices, Cleantech, Bioeconomy, Food, Social Enterprise, Media, and so on. Whatever your business passion, the RICs can assist. Most are staffed with experienced entrepreneurs and bolstered by tech nerds, researchers, academics, and business mentors from all over. They combine to help build business strategies, business plans, financial models, IP, legal, marketing, HR, operations ….all the parts of a functioning business. The entrepreneur does most of the heavy lifting, but the advisors and mentors are there to steer the project and to help the entrepreneur avoid the pitfalls of starting and ramping up a new business.

And then of course there are the SIC’s. Sector Innovation Centres. Bioenterprise is a SIC covering the Agriculture and Ag-Bio space. Others include: Ontario BioAuto Council (Bio based Materials and Manufacturing), Bloom (formerly OCETA/ a.k.a. the cleantech gurus), Green Centre Canada (Green Chemistry), Coral-CEA (Software Technology), HTX (Health Tech Exchange) and a few others that concentrate on sector specific issues.

For the most part, there is no charge to access these resources. If there are costs, they are modest - affordable for a business in start-up mode. I suggest that if you are thinking about starting a business or are already underway in an early stage venture that you look up ONE and engage. The network can speed up your progress, help you avoid mistakes, and bring a powerful bunch of resources and expertise to your endeavour. Check ONE out.

If you have any experience with ONE, let me know how it’s going.

Innovation Fridays: Electric Bicycles

Mon, 26 Sep 2011 10:22:08 -0400

In much of the world, biking is the main mode of transportation. In China or Denmark for example, it's not unusual to see more bicycles than cars on the road. However, in North America, this is not the case.

Thanks to electric bikes, getting around via bicycle has become more practical and efficient than ever. Your own energy and an electrical motor combine to make cycling up hill or long distance much faster and easier. Needless to say, if electrical biking catches on, city traffic can be minimized and carbon emissions drastically reduced.

Watch our Innovation Video of the Week.

6 Things Every Entrepreneur Should Know

Mon, 26 Sep 2011 10:20:10 -0400

Every once in a while an entrepreneur will ask me, “What is the most important thing I need to know?”. My stock answer is always the same. “Your rich Uncle’s phone number.” Yes, I know, I’m the Chris Rock of the business world.

Over the years, I’ve assembled a bit of a list of “The Most Important Things” you need to know to succeed with your business. The entire Wikipedia of my learning. Usually the hard way. Here goes:

Business Plan. This is boring, I know. But it’s essential to take the time to write one. My first one took me about 3 months. I used a software template and this worked great because every page of it spawned a new question that I hadn’t really thought about in the context of my business. The Plan gets ideas out of our head. It lets you share your vision with the rest of your team. Investors will want demand to see it. Write it yourself.
Bankroll. At Bioenterprise we see about 100 entrepreneurs each year. A good percentage of them are broke. They may have lost their job and decide that starting a business is the way out. This is not the time to start a business. It costs money to do a start up. Many entrepreneurs think that the government will fund their start-up. Not so. Government funding can help with certain aspects (usually the R&D), but they won’t pay for your equipment, rent and other assets. Banks are not in the risk business. They loan money against some hard assets that you are willing to put up…like your house. They don’t lend unsecured money to a business with no revenue. Set a limit as to how much of your own money you can put into a business. Once it’s gone, you should re-evaluate your plan.
Cash Flow is the lifeblood of your company. If you are a non-financial manager, find someone who can teach you about cash flow and how to recognize when your company needs more cash (loan or investment). Projecting your cash flow as a start up will tell you how much money you will need to get your company to profitability, and when you will need it.
Find a first customer. You can do this early in your planning stages. Talking to a potential First Customer can help you see what is important to them. It teaches you how to serve them. It focuses your business…FAST. A customer forces you to complete all the parts of your business. You need to figure out customer service, accounting, legal, and distribution in order to write and ship that first order. Oh, and by the way, the best way to finance your start up is through revenue from sales. A customer is the key trigger for investors.
Find a critic. No, I don’t mean your spouse. I mean someone who’s been there. Successfully. Someone who is independent. A good critic (aka Mentor) will network you to partners, help you avoid the potholes and tell you when to quit or not to quit.
Don’t do it alone. This is a lesson I noted in my One Man Band blog of a while back. Build a team. Add the expertise you don’t bring. Find Strategic Partners who might be customers, suppliers, or distributors. Somebody with interests that parallel yours. Lastly, a financial partner is the best partner to bring along for the ride.

So there you have it. The contents of the best seller I was going to write…all in one page. Consider yourself advised.

Why There Are No Successful One Man Bands

Tue, 20 Sep 2011 10:34:27 -0400

As a child, I can remember watching the Ed Sullivan Show on Sunday night. It was what you did on Sunday night back in the day. About once a month they would have a One Man Band take the stage and play some contraption consisting of a large drum, cymbals, a harmonica, and a xylophone…..all at once. The “musician” would play the drum using a series of levers attached to a drum stick that he controlled with his foot. The cymbals would be strapped between his knees and he “clapped” his knees together to….well…. make a noise. All the while his right hand flailed at the xylophone. Of course his mouth was busy with the harmonica. It was more comedy than music and that was the intention. A novelty act.

I sometimes wonder what happened to the One Man Bands. Well, they died. And to be blunt, they died because they sucked. One person couldn’t do what four or five accomplished musicians could do… each a master of his or her own instrument.

I learned the lesson of the One Man Band during my first adventure as an entrepreneur in the telecom world. Having had a successful experience as the #2 guy in a very similar business, I thought that I had all of the parts to reproduce the start-up, early stage and exit surrounding my proposed venture. I wrote the business plan, cobbled all of the pieces of my technology together, arranged production of prototypes and sample product, secured telecom network access, worked on package design, and started the search for real money to take the venture forward.

However, I had no team around me. Despite the fact that I had most of the pieces assembled, no investor was going to take a chance on a “One Man Band”. Experienced investors realize that no individual can play all of the instruments (at the same time) well enough to be successful. What happens if the One Man Band falls off the stage and breaks a leg? …No more cymbals and no more drums. And in business? …Well, no more business.

The logic applies to having a management team around you. They might not be full-time, or even on the payroll. However, they are people that can play a role in Marketing or Finance or Operations once the company “takes the stage”. Get professionals who you trust, and work well with, involved in your venture. This support team will play the roles that you can’t, or shouldn’t. You will get better ideas and better quality of execution with specialists on the team.

The “team” might also consist of strategic partners as well. Customers, suppliers or distributors that know something about a piece of your business and are willing to support you (likely because they can see what’s in it for them down the road). They bring stability, experience and resources to the enterprise and will re-assure everyone that you are serious and that someone other than you believes in the success of your endeavour.

Once you have a strong team, take them with you to those investor meetings or sales calls to assure those who you are selling to that you are not a One Man Band, in fact, you have an entourage.

Got your own One Man Band comment? Let’s hear it.

Consumer Research on a Dime

Tue, 13 Sep 2011 08:40:11 -0400

What you need to know.

Knowing who it is you are targeting in terms of their age, gender, household income, and education can be a starting point to understanding who your customers are. There is, however, other practical consumer information that can be collected that can be invaluable in making business decisions.
So how do you go about getting this type of information?
The simple answer is … ask your customers!

The key to conducting effective consumer research is to keep track of your customers. With their name and phone number or email address, one way to carry out consumer research is to conduct a survey to get at some key insight that can only come from your consumers themselves. This contact information can be collected at the point of checkout or by online product registration.

Surveys can be conducted in person, over the phone or via mail or email, each of which requires a different amount of effort, time and money. Survey host sites such as SurveyMonkey.com are often inexpensive and easy to use.

Telephone interviews are more time-consuming and resource-intensive. However, there is benefit to speaking to someone, as there is opportunity to deviate from the interview guide and get at some insight that would not have otherwise been uncovered in an electronic survey. Hiring summer or cooperative education students is a great, inexpensive way to get some of this type of research done.

The first step in designing a survey is listing everything you would love to know or your objectives for engaging in consumer research. These objectives can relate to the strengths/ weaknesses of the product or service itself, effective marketing outlets, price points … the list goes on. From here, it is best to design questions that are open-ended in nature, where your customers are required to respond with more than “yes” or “no” answers. Next, it is important to test your questions on a few customers to ensure that you are getting the type of information you are looking for.
Now what? You’ve collected this information, but what’s next?

Once the surveys have been completed, the information can be reviewed for common responses and suggestions for improvement. As a new company, you may be trying to figure out what your selling proposition, or “secret sauce,” is with your consumers. Research can provide insight into the perceived value of your product or service and allow you to better develop and execute effective marketing strategies with this in mind.
It is important to remember:

Not every customer will be willing to take the time to provide you with feedback on your product or service – and that’s okay!
Both negative and positive feedback is valuable as it can be used as the basis for moving forward in your business.
Think about what it is you want to learn before jumping into consumer research and avoid these common mistakes.
http://sbinformation.about.com/od/marketresearch/a/marketresearch.htm

Crystal Sarantoulias
Market Research Analyst and Independant Consultant

crystal.sarantoulias@gmail.com

Why Knowing Your Consumer is an Investment Worth Making

Mon, 12 Sep 2011 09:27:14 -0400

As we’ve learned from my last post, getting to know your customers is one of the greatest challenges facing business owners, especially when starting out with a product or service that consumers are not familiar with.

Collecting information about your consumers, or conducting consumer research, can however be one of the single most effective uses of your time and marketing resources.

So what is consumer research?

Consumer research is a look into what is really driving consumer behaviour and decision making (http://www.ehow.com/about_5057780_consumer-research.html).

Why is consumer research so important?

As a business owner, knowing your consumer saves you money, helps you make informed business decisions, equips you to identify new opportunities before the competition, and minimizes your business risks. Here’s how you go about conducting your own research:

Identify your demographic. Understand who it is that is using your product or service. It can help you get feedback on your product. Both positive and negative insight is critical to further product or service development. True intelligence is most valuable when coming from the end user themselves.
Invest your marketing dollars strategically. Marketing is only effective if it is reaching the right audience – by understanding which outlets are popular among your target consumer group, your marketing dollars can be strategically invested in targeted messaging that your customers can relate to.
Determine how to best communicate with your customers directly. For example, if your customers are mainly using email and online networks as a primary form of communication – spending money on a mail out campaign is not the most effective way to reach your audience. On the other hand, it may be an effective way to get new customers.

Knowing your consumers can shed light on the real value proposition or benefit of your product or service. This gives you strong insight when targeting your marketing efforts. For example, if your product or service helps your customers save time and money, then perhaps you could showcase an online testimonial section on your website where consumers can share their experiences.

Without understanding the value in your product from a consumer perspective, marketing strategies are a shot in the dark.

Crystal Sarantoulias
Market Research Analyst and Independent Consultant

crystal.sarantoulias@gmail.com

The Greenest Building in the World

Fri, 9 Sep 2011 15:51:28 -0400

Ready for another Innovation Friday Video?

The Port of Portland is a large quasi-state agency in Oregon, which operates 3 airports, and several marine terminals along the mighty Columbia River, and sees thousands of tons of cargo come through its facilities every week. When they recently decided to relocate their headquarters from a downtown highrise to the airport, they had a prime opportunity to go green.

Check out this weeks video featuring one of the greenest buildings in the world (according to Forbes).

Trying to Stretch your Marketing Dollars?

Wed, 7 Sep 2011 10:23:47 -0400

Why your consumers can be your best marketing investment.

Gaining consumer trust can be a difficult task for brand managers. With loads of deception and washed out marketing techniques, consumers today are second-guessing everything they read and see.

So how do you gain their trust?

You need marketing strategies and tactics that really hit home for your consumers. You want your consumers or prospective consumers to feel comfortable and relate to the problem, or unmet need, that your product or service is addressing in the market.

An effective way to do this is to use “champions” or testimonials that will tell your story for you.

A testimonial is essentially a hyped-up reference or recommendation given by a real customer. They give this reference by sharing their personal experience with your product or service. This is important because consumers can relate to other consumers, well, better than they can relate to the perceived, profit-oriented business owner or paid actor/actress.

If your product or service really does provide a benefit to consumers (one should hope!), then have your champion tell their story about their experience with the product.

For example, if your product or service helps consumers save money, then the most effective way to demonstrate to prospective customers that it works is to have them share exactly how much money it helped them save over a period of time or season.

Now, should you offer your champion some sort of incentive? That is up to you. In the case of a subscription product for example – you could offer them a 6 month or 12 month subscription for free. The idea here is that the champion is freely giving their testimonial, and is speaking from personal experience. In other words, they should not be convinced to participate by way of an incentive.

So how do you go about putting together a testimonial?

First, you need to identify that champion. This could be a customer that often compliments your product or service or someone that has taken the time to personally discuss their experience with you.

Secondly, you need to have them agree to share their experience with you. Testimonials can be written or verbal. Either way is effective, as you can easily offer to write the piece from an interview with the champion or record a video of the testimonial. The key to credibility is to always include a picture in the written pieces to make it more personable as well as have the customer sign the piece with their first name.

Finally, post your testimonial where ever you can, including: on your website, in your retail space, on your business cards – anywhere your customers will see it.

For more tips and tricks to getting and using testimonials effectively, check out: http://www.understandingmarketing.com/2010/03/25/new-rules-of-testimonials-in-small-business-marketing/

Crystal Sarantoulias
Market Research Analyst and Independent Consultant

crystal.sarantoulias@gmail.com

Other References:
http://www.understandingmarketing.com/2010/03/25/new-rules-of-testimonials-in-small-business-marketing/
http://www.copyblogger.com/testimonials/
http://www.radialgroup.com/documents/testimonials.htm
http://secondwindconsultants.com/2008/07/28/testimonials-are-critically-important-here-is-how-to-do-it/

The Perceived Link Between Price and Quality...

Tue, 6 Sep 2011 10:51:41 -0400

What’s really going on in your consumers’ minds?

From a functionality perspective, there is a clear difference between the quality of one product versus another. What’s not so straight forward is how consumers perceive the quality of a product and more specifically, the relationship between price and quality.
So, how do consumers relate price and quality to value in their decision regarding a product and service? This notion is actually far more complicated than you would initially think.

Although it is common for consumers to assume that the most expensive version of a product is the best quality, there are other factors that are influencing this perception.

While quality can be broadly defined as excellence or superiority, perceived quality has a significantly different meaning. It can be fairly abstract as opposed to focused on a particular attribute, and it can be related to the consumers’ attitude or judgement.
Essentially, the perceived value of a product or service really depends on what the consumer expects to receive in terms of benefits versus what they are going to pay. It’s a trade-off.

What consumers are willing to pay for your product and what they expect in terms of features is ultimately what entrepreneurs and business owners should try and understand in order to effectively meet their consumers’ needs.

The first step is understanding that there is a perceived relationship between price and quality. The second step is trying to determine the product or service features that consumers value – this will shed light on what’s going on in the minds of consumers and can be very beneficial in determining an appropriate price point. Pricing too high and not delivering quality, as well as pricing too low and leaving an impression of poor quality, can both be detrimental to sales.

As you can see in this article from the Globe and Mail, perceived consumer value can also help to determine when and if it is appropriate to raise your prices.

It is important to keep in mind that there’re always going to be customers who think your product quality is terrible, but there will also be those that are extremely happy with the quality of your product. It’s about finding a balance between these two groups – this is your target consumer group. Your marketing campaigns, sales and promotions should be targeting these individuals, the features they value and a level of quality that is worth the price you are charging.

When making these business decisions, remember to always think as a consumer. Recall a time when you are contemplating between 3 products that essentially do the same thing – a shower head for example – are you more likely to select the $29, $59 or $99 dollar product? What do you look for? What features indicate quality to you? Your customers are thinking the same way when contemplating the purchase of your product.

Crystal Sarantoulias
Market Research Analyst and Independent Consultant

Crystal.sarantoulias@gmail.com

Innovation Fridays: Plastic from Corn

Fri, 2 Sep 2011 13:48:17 -0400

The majority of plastics today are oil-based. Not only does plastic consume 10% of the world's oil supply, but it also increases global warming, and can take over 1000 year to degrade. Plastic made from corn is biodegradable, carbon neutral, renewable and even edible.

The long chains of carbon molecules in corn starch are remarkably similar to the chains of carbon in oil-based plastic. The pellets of corn polymer can be melted down and formed into any shape and size of biodegradable plastic. Find out how it's made...

Watch our Innovation Video of the Week:

How to Explain Your Idea to a VC

Thu, 1 Sep 2011 09:36:48 -0400

Written by Brad Feld, re-posted from feld.com.

Allen Morgan at Mayfield has a nice series up on his blog about the ten commandments for entrepreneurs. His post today is Commandment #6: Explain Your New Ideas by Analogy To, or Contrast With, Old Ideas.

He’s right. Mostly. At the end of his post, he asks for ways to “categorize the new ‘It’” (if they are VCs). My constructive addition to his post is the notion of the analog analog (also known as the “analog analogue”, but I like my version better).

In the mid 1990’s, I met Jerry Colonna, we invested in a few companies together, and became very close friends. I love Jerry and – while I rarely see him since he’s in NY and I’m in Boulder – I feel connected to him in a way that’s unique. Maybe it was our joint experiences together, maybe it was something we drank one night, or maybe it was merely a cosmic connection – in any case, I smile whenever I think of the things I’ve learned from him and the experiences we have had together.

One day, when we were talking about a deal, Jerry knocked me on my ass by saying “what’s the analog analog?” In true Feld fashion, I responded with a “huh?” Jerry went on to explain his theory of the analog analog (which I’ve written about before) – specifically that every great technology innovation (or technology business) has a real world, non-digital analogy. It’s not the “nothing new is ever invented” paradigm – rather it’s the “learn from the past” paradigm.

I’ve found this to be a much more powerful lens to look through when evaluating a new business than the “technology analog” lens (which is the one Allen is describing in his post). While “Tivo for the Web” or “eBay meets CNN” are useful analogies, I recommend entrepreneurs take a giant step back – out of the technology domain (or at least our current technology domain) – and get to the core analogy – optimally a non-digital one. Then – walk forward from the analog analog through other analogies to the current idea.

Throughout my life, I’ve heard the cliche “history repeats itself” over and over again. This is never more true then in the computer industry. Earlier this morning, I wrote about Ryan’s post on Mr. Moore in the Datacenter and alluded to the migration from mainframe to web to ASP to SaaS (aren’t they all different versions of the same thing?).

All hail the analog analog – the more things change, the more they stay the same.

The State of Angel Investing

Tue, 2 Aug 2011 13:35:15 -0400

I was talking to an entrepreneur (let's call him Bob) the other day about the challenges of starting up a technology business in Canada. Bob raised a number of issues from the Canadian tax system to the difficulty of finding good experienced people. However, it wasn’t long before the subject of venture capital took the spotlight. He said that raising capital was the greatest challenge facing entrepreneurs today. It is hard to argue this point. I remember the crazy Internet period from 1996 through 2000, when Canada had nearly 200 venture capital companies, and the vast majority were competing for early stage investments. They all had surpluses of capital and were anxious to invest it. Today, it’s hard to find any venture capital firm that actually has money to invest, and those that do have gravitated towards more mature companies and management buy-outs. So, who fills the investment space vacated by our once thriving venture capital sector? Well, regrettably the answer must be angels!

Angel investment groups have been around for many years, particularly in Toronto, Ottawa and Vancouver. For a long time, the criticism was that they rarely “pull the trigger” on an investment, spending more time in networking and schmoozing than reviewing investment opportunities. Furthermore, many of the angel groups were comprised of what we called “angel wannabees”, individuals who wanted to be perceived as angel investors, and professionals such a lawyers, accountants, bankers and real estate agents, all looking for future business. Of course, the poor entrepreneur who was presenting to these groups would be unaware that 75% of the room had no interest in investing at all, and in fact they had no capital to invest.

Within the last couple of years, Canada’s angel community seems to have grown and matured. Thanks to government support programs, formal angel groups are springing up all across the country. Many of these angel organizations are still learning how to manage and coordinate their angel investors, not an easy task. However, one would think that the increased angel activity would be good news for entrepreneurs like Bob. I asked Bob if he had approached angel groups. His response was a rather flippant “been there”, “done that” as he had presented to five separate angel organizations in the past six months. Bob described his experience as unfruitful, time consuming and frustrating. In some groups, Bob was able to have private conversations with angel members only to find that several of them were professionals looking to get business from Bob’s company. He also suggested that Canadian angel groups really don’t cooperate or co-invest very often, but rather, they tend to be somewhat self-centred as they invest only within their local geographies.

Talking to Bob, it sounds like the more things change; the more they stay the same. Perhaps the angel investor community cannot fill the gap left by past venture capital firms. While we wait for our angel community to mature, the lack of investment capital for early stage technology companies continues with no apparent solution on the horizon.

Bob did get the capital for his company. He raised $2 million from investors in the United States.

For your further reading, you might find the NACO’s recent report Investment Activity by Canadian Angel Groups: 2010 Report of interest.