Wealth Nation » John P.

Episode #17 | Q&A With Wealth Nation’s New Legal Advisor Justin Kendall

John P. — Wed, 24 Feb 2010 22:30:18 +0000

This week’s episode introduces our new Wealth Nation legal adviser Justin Kendall. Justin is not only an Attorney, but also a Certified Public Accountant. This makes him especially well suited to answer the types of legal questions we get relating to business issues, and will make him an invaluable asset to the Wealth Nation team of experts.

Today’s show focuses on some of the common legal questions we get asked about starting a business including the various types of business entities, how to be “protected” in business, which state to incorporate in, and more. By the way, don’t forget to join the Wealth Nation Facebook group, and if you have more legal questions for Justin – by all means, ask them!

One other little thing… would you guys please do us a favor and give Wealth Nation a review over on iTunes. We love you!

Of course we also love Dave Moyer, our producer, editor and all around best friend.

Episode #14 | Spotlight on Success – ‘The Secret Millionaire’, Liz Jackson

John P. — Sat, 21 Nov 2009 14:00:27 +0000

This week, we’re delighted to have Liz Jackson, from Great Guns Marketing in the UK as our Spotlight on Success! Wealth Nation citizens who hail from the UK will recognize Liz from her TV appearance on ‘The Secret Millionaire’, article in the Financial Times, her cover story on Disability Now magazine, or from her book Start Up!: How to Start a Successful Business from Absolutely Nothing.

Show Notes

Liz Jackson is a successful entrepreneur who has built a business from scratch which now employs over 100 people. She tells us how she started with virtually no capital as a home based business and then grew her business organically as she was able to self-finance her operations as sales increased.

This is an ideal way for a small business owner to get started because they can retain complete control over the business and not be saddled with any debt or shareholder obligations. It’s also the way our grandfathers did it in the days before Venture Capital.

Liz shares her tips on getting started, recruiting, hiring and motivating employees, and even what it’s like to run a business with a physical disability. Her story is inspiring, motivating and endearing. Pick up her book from Amazon UK or Amazon USA (though the UK plus shipping is cheaper) and prepare to lose every excuse you ever made for yourself about why you couldn’t start your own business.

You an also follow Liz on Twitter.

Episode #10 | Spotlight on Success: Las Vegas News Anchor Dave Courvoisier

Rules and Tips For Working With Family

John P. — Fri, 23 Oct 2009 16:46:43 +0000

We got the following question from Robin Lees on Twitter, so I thought that the three of us would take a shot at an answer but even more importantly, we’re really looking to get the feedback of the Nation on this one!

@WealthNation are there any rules and tips that should be considered about going into business with family (Cali & Neal)?

Cali says:

Some people have the type of personality that allows them to just get along with others. But if you have difficulty working together with your relative outside of business, then this will really magnify the problems. Make absolutely sure that you are all going to be able to tolerate one another all the time.

Keep in mind that when hiring you normally would go through an interview and vetting process, but we skip that with family members. You may be missing a more qualified candidate this way, which ultimately can impact your business.

Neal says:

Eat more bacon.

John says:

I would extend the question to include friends, since they are often as close to us as our family. And I’d offer the following advice:

Working with Family or Friends strips you of some power you’d otherwise have with real employees. You lose the ability to “be the bad guy” when you need to, and certain threats no longer exist. So you often end up needing a lot more carrots because you haven’t got much of a stick.

Friends and family can also make an organization stronger because you don’t have to worry about loyalty, churn, or whether there are competing interests. Having everyone in the same boat ensures that they’re all rowing in the right direction.

In almost every case I’ve seen, working together induces some stress. So everyone needs to be extra considerate.

But enough with our answers, we need to hear your experience! Please drop a comment below and let’s really tackle this question! By the way, David Javich has a few tips over at Entrepreneur.com to consider as well.

PS – Thanks to SuZenDu for the photo!

Episode #13 | The Wealth Nation Bloopers – Volume 1!

John P. — Wed, 21 Oct 2009 21:08:25 +0000

Well, I guess they were bound to catch up to us sooner or later. Our supreme editor, Dave Moyer, has compiled the first ever set of Wealth Nation bloopers for your listening enjoyment. Now you can get a real listen “behind the scenes” to see what he has to deal with when he’s cleaning up the episodes.

This will teach us not to be taking extended periods of time off from the show in the future!

You MUST Compete to Win!

John P. — Fri, 03 Jul 2009 15:25:53 +0000

Life is a rat race. Have you ever wondered what it would be like if you didn’t have to compete all the time? What if everyone in traffic always offered to let the other driver go first? What if all of your co-workers just wanted to get along, and no one was trying to ruthlessly get ahead? I mean, as Rodney King said, “…can we all just get along?”

Well, let’s think about that for a minute…

Suppose that a football reformer observed the obvious fact that the object of the game is to make touchdowns. This would lead immediately to the important discovery that if the two teams would only cooperate, hundreds of touchdowns could be made in a game, while only one or two of them are made when each opposes the other.

- Thurman Wesley Arnold
The Folklore of Capitalism

There is no sport without competition.

And let’s examine the traffic scenario previously mentioned. If everyone in traffic was waiting for everyone else, no one would get anywhere! Just think about the 90 year old lady who is too timid to enter the freeway on ramp in front of you. That drives you crazy, right? Imagine everyone being that non-agressive. No, I think you want drivers like me sharing the road with you, because I’ll be out of your way in no time.

How about work? If none of your co-workers were trying to get ahead, they would likely put out very low quality work (if any at all). You wouldn’t be able to rely on them to meet deadlines, do difficult research, or probably even show up to work.

Actually we need competition. It’s built into the DNA of humanity, and it is this very characteristic which makes us dominant and keeps the species progressing forward. So, if you want to be successful, it’s time to embrace the fact that both you and your business need to develop the attitude that it’s a dog eat dog world, and you’re wearing milk-bone underwear!

4 Ways to Nurture a Competitive Attitude

Choose a common enemy. Your employees need a common enemy. Pick a competitor and make it your companies goal to drive them into the ground. Make sure everyone gets behind the effort, but keep it somewhat light hearted. No need to be mean, nasty or cut-throat.
Offer incentive based pay. Change the way you financially reward employees. Either shift part of their base to an incentive program, or offer bonuses for those who contribute above and beyond. But make sure there is a chance to earn real money. Small incentives do nothing.
Share performance reports publicly. You probably measure some sort of stats for your business, so start publishing non-critical reports where everyone can see them. Sales rankings, production reports, customer service polls – or anything that motivates teams and individuals to compete.
Institute monthly recognition programs. Employee of the month works! So does simple public recognition in front of your peers. In fact, let them vote on who the winner should be! They’ll begin competing to be the most helpful towards one another!

What other ways do you try and keep the competitive fires burning?

Episode #3 | Advertising Mix, How Much to Pay, Podcasting Frequency

John P. — Wed, 01 Jul 2009 15:05:49 +0000

Show Overview

One of the topics that all businesses must face is finding the right mix of advertising spend. This week’s episode tackles this subject as well a the topics of determining how much an entrepreneur should pay themselves, and a discussion about podcasting including how often to publish podcasts.

Show Notes

How Much to Pay an Entrepreneur

Mark Taylor is getting VC funding and is at the point where he has to determine how much he’s going to pay himself. It’s a question we hear all the time and something most people seem to struggle with. They’ve been only taking what it takes them to live on and throwing every single spare penny at the business. How do they determine what they should be paying themselves?

This is actually a great question, and the answer is as wide ranging as the number of entrepreneurs asking it. Here are a few things to consider:

If you are in need of cash to run the business, then you have an obligation to be frugal. Not only on your salary, but also on everything else. If you have to take on partners (and you wouldn’t if you didn’t have to) then its unfair to use their money to live high on the hog before you even prove that you can offer them a return on their investment.
Having said that, if the business is viable, and you give up a significant portion to a VC, there is nothing wrong with paying yourself “market” wages. Don’t go in there requesting a ton, but being in the lower area of a range for a similar job is a reasonable request. If the VCs don’t like it, they’ll let you know for sure.
Once your company is profitable, it’s another story. At that point you should definitely be paying yourself market wages. Your investors should be happy to ensure that you are being paid
properly according to your contributions.
If you agree to take a lower than market rate salary now, because the company needs cash, then make sure your salary is actually set at market rate, but you are only collecting a portion now and intend to collect the remainder after the company reaches profitability as deferred compensation. This is entirely fair, and also necessary for tax reasons down the road.

There is also an interesting article over on Entrepreneur magazine’s site called What to Pay Yourself that may be of value.

Advertising Mix

What are the best ways for a business to advertise for it to reach its full potential?
-Jonny Blackler

First of all, I would recommend reading the book The Wizard of Ads. It will help you think creatively about what you are trying to achieve, and creativity is key when it comes to advertising so you can stand out from the crowd.

Next, I would highly recommend taking a look at WOMMA, the Word of Mouth Marketing Association. This site is full of examples of ways to promote a product or service for next to nothing!

Having said that, different businesses are going to need to take different routes in terms of their advertising mix:

Print ads: newspaper, magazine, billboards, yellow-pages – These types of advertising vehicles tend to work best when the product has broad ranging appeal. For example, Coca Cola. Every viewer is a potential consumer. They are not cost effective for selling to a narrowly defined group of prospects.
Local sports sponsorships: high school football teams, kids soccer teams, etc. – Work very well when the product or service is targeted at a particular community. This type of advertising generates good will for Realtors, restaurants, and other service industries.
Media: radio, TV, web audio and video – Generally more effective, and also more expensive than their Print ad cousins, especially if you can get celebrities or well known personalities to participate.
Trade shows: an excellent way to introduce a product to a market, grab media attention, or meet potential investors. But usually doesn’t translate to many direct sales. Trade shows are best for “brand awareness” campaigns.
Direct marketing. Targeting prospects personally. Examples: phone calls, direct mail, and door-to-door canvassing
Public relations: A great PR firm can help put vendors and products on the map, especially in a specialty industry. When you hire a PR firm you give specific directions of the places you’d ideally like to appear, and let them handle making it happen.
Online advertising: the newest and most track-able advertising medium, online ads can not only deliver text, audio, or video, they can also be targeted at a highly selective clientele. Especially effective if combined with Web Analytics such as Woopra.

And let’s not forget, the best possible advertising comes from your own customers. Make them love your product or service, and they’ll brag about it to everyone they know.

Finally, let me end by saying that much of the time the choice of advertising medium is simply not as important as the fact that you are actually doing some advertising. Decades ago, McGraw-Hill published a classic ad depicting a grumpy customer with these classic lines:

I don’t know who you are.
I don’t know your company.
I don’t know your company’s products.
I don’t know your company’s customers.
I don’t know your company’s record.
I don’t know your company’s reputation.
I don’t know what your company stands for.
Now…What was it that you wanted to sell me?

The point of the story is that advertising doesn’t work the very first time. Repetition is key, and eventually it sinks in with more and more people. So, choose the most cost effective mechanism, and stick with it.

Podcasting Frequency

3) What’s more important for podcasting? Frequency of shows or longer shows?
- Toby Fairchild

Actually, both frequency and length should be considered for podcasts.

Given the fact that people have short attention spans, it’s probably a good idea to keep the content fairly short as well.
If you have a longer subject to tackle you can always break it into short segments and make sure that you put out the most interesting parts.
Keep in mind that production of a podcast will take around one hour per minute of finished video when everything is finished.
In terms of frequency, once a month is a bare minimum, but once a week is probably a little better
Keep an eye on your download stats and make sure that you are publishing as often as your readers want to consume, and also watch the time of day you release to ensure you’re maximizing your audience.

(Image credit Arturo de Albornoz.)

Episode edited by Dave Moyer

More Creative Advertising

John P. — Mon, 22 Jun 2009 18:00:22 +0000

Here is another advertisement to give you ideas about promoting your own brand. Everyone has seen the Energizer bunny, I’m sure, but Duracell is striking back with their own fresh and creative brand of advertising.

What are you doing to keep your brand fresh and creative?

Creativity in Advertising is Key

John P. — Wed, 10 Jun 2009 18:00:00 +0000

We’ve talked about being creative with your advertising in a few of our shows so far, but what does that really mean?

If you ask me, it means creating an ad that stands out, touches people, and is unforgettable. Virgin Airlines has been consistently good at doing this, and I’ve rarely seen a better advertisement than the one below. So next time you’re going to create something to represent your company, shoot for something with real impact!

(Click to see the full image.)

Let’s Talk About Advertising!

John P. — Mon, 25 May 2009 18:00:08 +0000

Folks, when was the last time you did any advertising for your business? You do know that advertising is a key element to selling your goods and services, right? I know that a lot of people often shy away from advertising because they don’t feel creative enough to come up with something “professional” or “memorable”. But that’s not an excuse that I’m willing to let you live with!

Advertising comes in all sorts of different forms:

Media – Radio, TV, Podcasts
Print – Newspapers, Magazines
Direct – Letters, Brochures, Flyers
Online – Sponsorships, Google Ads, Web Sites
Word of Mouth – The most powerful of all!

And advertising also serves many different purposes:

Building brand awareness
Influencing the buyer’s decision making process (buy this, not that)
New product introductions

But no matter the form or purpose of your ad, you need to ensure that it is creative and memorable so that it makes a lasting and positive impression on your target audience. Let’s not forget that advertising is not just about pushing a product on someone. It’s also about establishing your brand identity firmly in people’s minds, so that when they are ready to buy they think of you first.

For example, have you seen the “Trunk Monkey” commercials? Well after you do, and especially if you were local, I guarantee you will remember which car company brought them to you. How much money do you think they earned for their investment in those ads? Here is a compilation:

Tell me this, what is going to get you into the dealership? Some loud-mouthed, obnoxious narrator telling you about their “low, low, crazy prices”, or a Trunk Monkey? I’m guessing it’s the Trunk Monkey every time.

So, how did they come up with this? They probably hired an ad agency and gave the creative people there free reign to propose anything they wanted. I’ve worked with a few agencies, and generally speaking when you find a good one you are not likely to be disappointed. They are in that business for a reason… they have some genuinely excellent people! So don’t let a lack of trust prevent you from interviewing agencies and getting bids on a project. They know they’ll need to earn your repeat business, and they want something new for their portfolio.

Don’t have the budget for an agency? That’s Ok. Assemble a team and do some brainstorming to see what you can come up with on a shoestring budget.

The key to creative brainstorming is to start your session with no restrictions. You need a lot of different ideas and opinions, so gather your team and ask them to think creatively. Sit around a whiteboard and just start filling it with notes from everyone’s ideas. Remind everyone to share every idea, because you never know who’s going to light the fuse that sets off that magical spark within the group.

And finally when you get a good idea, that almost everyone seems to love, don’t let it die. Take action! Advertising doesn’t need to be perfect to work. It just has to touch it’s intended audience.

Episode #2 | Hiring Freelancers, Selling to Small Retailers, Web Site Sponsorships

John P. — Fri, 22 May 2009 16:55:29 +0000

Show Overview

This week’s episode focused on a number of small business issues that many people are facing; how and where to find good freelance workers, how to sell to small retailers, and where to get Web site sponsors for online businesses.

Show Notes

Hiring Freelancers

I’m working on a project that I hope one day to monetize. The problem is I’m employed full time and really don’t have the time resources to get the site to a point where I feel it’s a quality product. Do you have any idea coders found in places like rentacoder.com have typically impressed / disappointed. With my own skill set I might get the site to the level I want – but it’ll take way too long. Also – do you have any good suggestions for local (USA) coders (php, mysql, wordpress) and logo / graphic artists?
(question by Kevin Epstein)

I really love the fact that you’re seeking to get assistance from an expert. Even if you can do it yourself, it doesn’t mean you should. The opportunity cost associated with the time you’re going to spend vs. what you could be doing would often logically dictate that a pro will ultimately be less expensive.

As far as having luck with various freelance sites, the answer is yes! I’ve personally had fantastic luck with several folks that I found via eLance.com. Whether you’re looking to get hired or hire someone else, here are 8 sites you should definitely check out:

Elance.com – One of the largest freelance sites around. Membership accounts range from FREE to $39.95/month for large businesses. Elance charges a service fee of between 6.75 % – 8.75 % for paid jobs.
RentACoder.com – Claims to have over 200,000 registered members, and over 2,500 active jobs (as of the day I published this).
GetACoder.com – Large list of jobs available with commissions comparable to the other services listed here.
GetAFreelancer.com – Most projects seem to range from $500-$1,000, with the company charging a commission for paid jobs.
Guru.com – Claims to be the largest freelance site out there. Guru offers FREE, as well as paid, memberships that range from $29.95 to $99.95 per quarter. Guru takes 5 % – 10 % commission.
ScriptLance.com – ScriptLance is FREE but charges 5% commission.
iFreelance – Membership levels vary between $4 – $7/month but that is all you pay. iFreelance doesn’t charge a commission.
ProBlogger’s Job Board – pretty much nothing but jobs for writers or bloggers.

The real key here, is to write a fairly comprehensive description of exactly what you want built. The more detailed you can be, the better your chances of success. You’ll likely get 10-20 bids on your work, so look through the portfolios and make sure you find someone who you feel comfortable working with. I really recommend sticking to the sites that also allow service providers to be rated. Just like eBay, you know how their previous customers felt about the work they did for them.

Selling Products to Small Retail Outlets

When selling local products to small retail outlets, what is the best way to approach the business? Should you just ‘drop in’ or should you call first to schedule time with the owner/manager? (question from Glenn)

When it comes to selling to local vendors:

I’m not a fan of dropping by unannounced. It doesn’t show much respect for the owner’s time.
I would recommend a brief phone call, letter or e-mail to introduce your products first.
- Be creative! Send a sample of the product to the owner with a hand written letter.
- Focus on the reasons that you think your product will be appropriate for the business
- Don’t tell them what YOU want, instead focus on how you can help THEM achieve their goals

Sponsorships & Business Structure

Starting video podcast Peeling Back the Onion. I would like to know how to get Sponsors, should I form a corp?
(question by Gary)

First of all, if you are serious about forming a business you are going to need to establish a formal company. A sole proprietorship or an LLC would be an appropriate structure. We’ll have another show all about selecting the proper business structure in the next few weeks.

The simplest answer regarding attracting sponsors is, bring the “eyeballs”. Sponsors are looking for two different things:

Exposure. How many people are going to hear about their offering. If it’s a small number, their opportunity cost is that they could have advertised elsewhere and gotten greater exposure.
Return on Investment. I don’t care how many people simply see my advertisement, I ultimately care how many people actually take action on my offer. Sign up for service, purchase a product, etc.

New podcasts and Web sites are going to have no audience to attract sponsors for months. So, the real question is how do you intend to invest in your business to grow your reach? You are going to need, on average, thousands of visitors or subscribers per day to make even a moderate amount of money.

You’ve heard the saying, “you have to spend money to make money“? Well, starting a successful podcast or Web site is going to take an investment in time and money before you see ROI.

Having said all that, if you’re interested in getting some advertising on your site before anyone wants to actually sponsor it, affiliate programs are the way to go.

Website Advertising

What are some free methods to advertise my website on the Internet?
(question by @rickmitchell99)

Well, there is more to driving traffic on your site than advertising – free or paid. I wrote an article last year called 45 Ways to Power Up Your Blog which has many tips that are appropriate for normal web sites as well, so I’m going to refer you to that article for a lot more tips.

Having said that, today the simplest free method of self promotion is to take advantage of all of the most popular social media sites.

And keep an eye on how you are doing by using Woopra to monitor your Web site’s inbound traffic.

You need to be providing content that is interesting and different, and if you post your updates and changes to these mediums (without seeming spammy) you can quickly develop a healthy stream of traffic. Most people I know only concentrate on one or two of these sites and still get a lot of good traffic, so the more time you’re willing to devote to it, the better.

** Image courtesy of EJP Photo. Thanks! **

Wealth Nation » John P.

Episode #17 | Q&A With Wealth Nation’s New Legal Advisor Justin Kendall

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