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about the authors
Richard Hicker heads up 4 Los Angeles wasketing aml advenhông agency that speciizes in tat-ups and turarounds With bth doctoral Swork at Stanford Unierty and an MBA with honors (aleditrtan) at SG; Hee sen eight years ara fculy tember fire at Stanford and ‘then Washington State Univer before moving onto become a Dgstor sf Imceracives Creative Dict an warketing satis Las Angee ‘marketing communications frm Asaninterational consultant, Hookers ‘worked with he ensze gamut of companies aos the lae—feom Fortune Sil Fens tone penion arta
Steve Monsieur an fate ntreprenc
aid operated several gHy mesesfMl tarvupe Monn, a Marketing al commerceexecutive i wellara Weh and Busnes Development Strategie, arned his BA fromm Newport University He egolarysrsesasa Marketing nse for Peppendine University, drawing on his experience ia wide sanatyofindustin, The author of YnrSpace and Chemistry and Narmber ‘Monat ese n San Disko, California, and enjoys an active Mey whle ‘workingon various publishing veo muni, lm, and web businesses
batdevehped
Trang 20
a note from the author
Trang 21
(Or you emay already be running a suecenfl business but want 19 now how to explo he outuurcng opportunities in software, marketing, profit oF decree poe
fe manulicrring that can inerete 9
Isc (Or oumaybe running tarp witha seal tan limited eources wondering how to get more with les Tn any eas, this hock’ information will help you understand the unlimited opportunites aur brave new wired world ole yo Ths boo however, serves a mote thn jst tferenee it will help You undesstand da lau the strtegie buses decisions you will iee n Giang, ‘Gach ines set ot 0 write an extaoedinary hook, asta wif one nose oat bio verthing I leaned; gleaned from newpaper, magazine, snd lntenet artes, Where Fen, [give credit to these sources Bait mc of this book ones From my own experience wit Web-based fine busines al the best rescreh, ter all, information ikered through racel experience
Trang 22
a note about URLs
‘This bok is intend as an indispensable resource for early ever challenge you fie in stating # new busines om 3 med bale At est bel ht ni: teen tac more pom can ue ia each appt ur ndeivor—reurces, information, atiley directories, software, series, and vendors: Untornatel i you're holding the prin copy four bok, yo fave cle But to peck out these UR on yr Keybvord, While se URLs are prety easy (evectbankcom), thers are darn aca imposible ‘wi cpllenssogsel muster} ned ionbenoe [Eyed ca scefily pen "son -knghURLsofthe nomene son well we want te yo "We anticipated thew prbleme and have put all he Finkel rewoueces ie for you st
all you have to do is ype in one URL dat ones the
Trang 24
a note about prices quoted
“Throughout ta prvs to moatlysilcrpion pce, Many of then ps the this book, we prove pricing fora variety of eves, from packages they purchase may have changed between the publestion of the Fok an now: We verte all prices one as ine on Sepember 15,2008 any changes “Mont importa, we decile ott ply the 995 game, Aso pry after that ae not reflested inthe bok knows must frm like t pice proces and services no dlle mount oe oner_§9.9 rater than $10 Why? People prcoloialy perceive $3.98 tobe nine dollars and sey perceive S40 be, well tn cellar ‘We're aot hee to play tha mọcholgiel gunc with you Gathough we certaialy encourage you to ply that game with your easton) A price 1 $9.95 5 forall practical purposes, en bucks oat of your pocket, thats how we write price of 199 inte hundred vanishing fom your vey strove hank acount rte other chmoe's bak aes ised poly therefore to round up the “pennies af price they must closely represent, Were aot her to mat other peuple Produ, otto give you a goody honen appa of thor pơnduen hoy ‘fal they are ta your venture, and ow much they're relly going to cost
walle ff prices to the
Trang 25
you Ws easier for yous easier fray, eae forthe proofraders and, well ‘nee stent chpnees ape ak les rnieecunb xin xe round number, actualy fee penises Dont sweat
Trang 26introduction
ever bili busines en ace the wy itshoul, mos of ws would every entrepreneur fected mow of tir enerpet onthe singe they be bls age bet at nine tof tan nee Entice woudl succeed wil, he chan rine oof 1 206, arc uiding Scour Events com schedule en fang to makes debut
fom the Imerser stage mid 2008 fe wap aoe the Fist busines bu but Swasthe first ritual organization Lui cused my ences what did bot and built an entire sta cate all ve the world do the work that rece tae done Avthe head fa sireal organization, Econ dozens tt Femployees” who pesforened hundred of ferent jb fanetions Aad T ‘Bade hall happen ona shesteng det My viral organization designe and developed sphistiated Web se for ticker ale, tested the ste prepare ll the lunch mater pr together the PR bit, ad created and implemented al the promotions Alte whe this major sine entre was coming together, He dona meal 105 jb, And Teka ay weekends off And ll actions,
Trang 27
sxxil | INTRODUCTION
“To finance the ste developed Web sites for other cients by tiling Cag ‘When [fire went king for projets on Craig’ is, | was strapped Lie fr abs for money Arad then a light went off ny hea wanted tm atound Web procs by Gall euturing them 1 =eiesdtbe Chiết x sce fcuk List “Compace Gigs" dais neck major American ty emailed prompts ‘with small bio and rceved several espns Once thy hice met bald {sk mediately outsced the work to companies in India and Chia ‘Within went-four hours would have designs to show my clint, Withia afew days weeks Td hate sophisticated, databaselriven sites completa ahlquallyaamaed My profits ranged well above 708 of my css I's no tha it do anything tbl pinion Based onthe siete project manage the outoure company and pesforned final qual assurance, But | ide ‘both eee tng a hae outsourced, And everyone inthe ture—I sy clint, and my ostource companicr walked away happy with the ‘ale they recived By concentsting on what Lid bet—statgizing Web sie transiting aiategy into double specifications, ad projet managing design ard ‘deyelopment—I spent ony time on actives designed vo Bring the greet ‘ale tomy eints and ne By eatoureng what | lid nt do beter than Aangone dhc— dejgning culng,nd programming mae huge profi by finding pople who cad do ước sve beer and more cheaply tha shy ee {can bil powerful, urcnfal busines using ony my apo, then — However caseu cape Fin here totell youits aoc cas Iteraly had x tearm million things tone work—and Knocks Anctso will yu and any other entrepreneur Thats why we wrote eae more than ny shat of ha ‘his bok, diiling all the knowledge, ard wok wet, and mistakes that f° ovo builing a socenfl viral ganization inv a reference that can Felpenrepreneurs like you seed jst ile more vicky fle more cay and with ewer ar bumps This is the Century for Small Business
Corporate levathans appear io ave every advantage over smallness big bank account, armics of Hurard-educated MIA Aets of ooyen, wallet filed with perf olin, and access t the bigest, baddest prices media om the planet And what doy ave? A great dea,» pp, anda steno checking account, What chance do you have?
Trang 28
INTRODUCTION | xxix every succenfal arty ventreeeguired MBAs and more cash than am be counted, we would never have things Uke Web browsers, arch gins or even NeDnalds So even though you ca ill an nl taker ‘wth your money or wouldn't know an MBA from hee the ground, you smảgh bi the mat on dolls bine or poe Your sos ing ‘entire euld be the next Google, the nest Brat, or the noxt MeDinal Most impoctanly, you aml all other like you who are gardng ot with v teat iden anda onc passion have anacantage that pevons generations entepreneus could never ese agine, formation technology allows ro weal wart a bisnee ad find ll the revoureey kil aed mater er aed dnp by Sing wp your lptrp and connrtng to the Internet Roy Crork had to hie staf and rene + bulling to make MeDon work ill Gates had awoing concen to hte wal and re s holdin to orn Mico
You jst ned a omer ‘Thats wha this Bok fall abou You have the tools to bul a powerful sear-uporganizacion, rom financing prot development to marketing, ‘without esr cll having to walk oat your font dor, We've her to give
othe tals you neat art your new Yenture
Several levels higher by exlting the resources our interconnected world oyu ‘Using lal communications date eeworks yo ean tafEan entire -taniztdon with very hina eowurce ad kil you ped at veka price Your corporate office can bea sm in your homeora table tear for All the paris of your busines, from bokkesping to manufacturing, ‘ime de By sala over he world Eoe he phsical ad echnolgieal Tnfnsruetrecanbẹ đtrbatel d acnmethe gbb«, nr phone exchange lives vemevhercia Minajoli vhc you axing service ait in Milwaukee Your phone receptions workin Mail Your ‘latter erp ileal caener concern fran office Mei Your Webmaster manages your emie Web sie—fom development 10 maintenanee—from Mencows but your stesso s server in Moline, Al soe word peoceing is done bya vis asian working Gr ber home fe Marita And you Lipo computers ero tuned yp by ome tech Ale in Monteal: People fom allover the work shop at your sore without "ver leaving ithe orders hee kitchen ble anda warehouse in Mountain View shipe
"Yau ate, ns
Trang 29
xxx INTRODUCTION
‘The vÌnhpe communznion-tchnsogy sess in alent entcpreneurs like you never fd belore the tweny-fit centr, atoning Netapape sed palcansolpsnictnd acon hat xtouring, trans that your jb sping somewhere lends, China, some other tReTieg sml form ph That cml be eve Ba outsourcing face tao mean that or an be pret Formidable player in the bins ae anther ‘word and you don’ eel much more than you, a Isptop, and ap aternet onnection Why? Bese a what brings el vac to your basineis—what yor do best The rst—You Kr the tl you dot do well o purer
turing permit yu t feu your energies
ghy—¬thalš hat Tour edbodre Core Compotoncies and Outsourcing
Inthe MBA wold they cal -what you do bes," core competence (Corporations undatand that they seceed by doing what they do best sd einer For instance, mont botel chains do at actually owe thei tee, Why? fol ke spies or vendory do the other tall Any moron cn un a hotel The awning act sci dees take tn of talent or busines acumen, In fact cost even take once of talent tosis cue tn the hotel busines the hurd pare is) figuring oot the bet plaestolocte hoch) uti favorable el eat dese managing the ensrucion af the hrc; and) adeinintering and mating the hee cing able wd he things eter han everyone ee what kes oe hotel chin more acceso than other: Bat owning the Rec hotel they often
chains “eter” at omnia hotel than any ther hotel ei
Ahn’ waste their time om the owning part of the hotel business This Trees ‘horn wp for he bine ative tt ae eB uel "The sme applic uikingthe hotels Web st, Hel chins do aor twill Web sites beter ham eer otl chains, so they py somone che to
twill their Web site, What hotel chain ch well is ae their Web sites to find and bul loyal customer bare So they spend thie valuable time and co trừng tớ do le be han any hee hotel chai The betters hotel thin is at filing hotels deough thie Web tes the more they “bea ownpetision But actly designingy coding al programing the site? No hotel ean "beat other hotels by designing, cong, o prorasning their Website ‘Whe ii’ iti 602 bee al pn i yor pe, MIA ket cal hits competitive advantage Tesi beens yee al cies wears oa aNGciia bahia ‘mean hat you, oo should facus exclusively an your core competencies in
Trang 30
INTRODUCTION | xxi order to gina competitive adage In act bese yote small busines ‘entire on a shoeing budget, you mat focus eacanitly om your core epaencies ta pia Comnpective ad rnntige! And jou ar possess the tes! You have neither the tine nor money to wosteperonming actives hat hers an do just ay wells you cama Faction ofthe om you dont want join the Sart Up Failure Clab—and nine out often stats join thi du n clnllkly shor order—-yo moe Re em le ‘hing that you ds ete han anyone eke These oe capeteceiyou do them wel wil give you «comperkive advange overall ther busin,
‘cling the big guns cht don even kaw, of ear, that you ext To stay Focused, you, more than anyother hind of busines, need to nd vendors and pple 9 dal he ether uf nt may bean offahesharts slesperion oF nerworker, You may lhe» megawatt es generator Or you'te the best engineer this side ofthe
Missing Or an inpring leaden Or atimeone baded wk summer sesh "The tality thi the mo
wht you detest, the more compcttve your busines wil be and the more TC your vente will auceed The mee ime you spend doing tne that sore nor go at ike Bookkeeping, HEM, oe worl proesing the les ompettine your Busines will e and the es key your ventre will tke 1 Tea simple principle thu dean take a SMI MBA degre 0 figure time you spend doing tsks reat 10
Bat why oubource when you ca doit yourself morecheaply? After ll, you hve to ay someone whe you outsource and foal practi pares ou dont hive "pay" yourell fan “free” beter del than outoureing, ‘Special since “Tovof money” i our goal? ‘Wrong
Money Hows wo directions in 2 buvnes It lows ot which we ell epeeny ett ow hich Ge ell ecensA bse Spe ony tind it makes money Yer iyou doll ourown word processing and projet tmanagensent and advertising, our expenses willbe technic em 0F u've not pasing yourself dha ease, you ae indeed, "e.” However Avering your attention ad (ee ayy Tram the things th mathe mowey Foryourbsines ee managing yor busines, bling eetepy le lopine ins or nerworking meins that your Busnes wl have low money coming in I faces diverting your focus sway fron your core competencies 0e tans that aoe enough money will come into the business wo even pT "fe." Basinescs mare money when people spend thee ime ding tings Mat eke wey Basecoe peer was ei by pig money Neb i hard elt go, though The hardse thing for a manager to do ie Ackgate, The bards ching fora busines ownce todos bate eter pople
Trang 31
perform the atv ofthe business -and py ther rit When, wot i ‘endor oremployee oes rong owner ‘he tier and tar anything but a warm and ay feng once worked sce the money being Mishel doe
ata esaurant where the ower woul go through the guage a pl fide thought wap stl gor And it would end po some easter lt That's right, ladies and gentleman At Quality Cafeteria (hat the Same] ee mould sve abt vale tstotors nd sight ox of he gute ‘Naw, normal people would consider this few miles south of bonkers, But when the owner saw perfectly goad fod nthe garbage he saw hr ney
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busines owner yu can ose money inte ways by spending badly by nóc making money, Money you don’ ke ijt asks a money tha aly Teeviebh, when 2 busines spends money, it sometimes gets + bại de pedesly gơoi fod gos thrown away employee tlk onthe phone Tather than work, vendors ere up But you don’ make money by pling ral out of the bugs And you almost never make money by dong the work youre
‘Oly, you're convince Bat whet should you ouboure
‘Well yotcinitdomn with yout busines and determine ll the setivites that need to be performed inorder for your busines to sce Yo then Took his i actives and determine whee yor tine and effort wl anatinie our bine meen: You outorees th et Wut your dome necenarly have to do this When your busines need te perfor some activity, js ack yourself simple queion: We ell the Hire Yourlf Question ‘When yu se tht your Bosinee seguir certain “ask yours
World hức me do ti jb
Inter words i your business need someone to do word processing, ‘would you hire tomer ext ike you to do the pb? HF your busines se š boukkece andl scone sty ie you walk in the dor for a fetersiew, would you thik tat person was the ght forthe fb? ` poem che tsk sours If eaten, your anne is “Whoal Um
ste way undergufed foe sha jp of “No vay, Day otcnaliiel for that jh” yu should probably chink aboot outroncing tat ask, Why? You van to focus al your effos onthe jos you would ony hie co dài "Aca marketer and constant, have oeen tosands of all businemes ne and go- Ard have een thousands af ntreprencirs eon “hte” tHemicles todo jab chey were magnificently unde or orr-qunliied to ho Aad thot ny Gc is why nny of them came nd went
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INTRODUCTION | xxx There Are Two Kinds of Business Books (iy ES pu aa Hà ep jan a nk accent” cheer Page afer page of Surceal Svea Secon!” We call them sheesleading bake nv Know the eye, Ale eeading the bo
"he world, but he bon eds wp molding in ax somewhere Kah Kal Rah! lanes the power of the Internet ad mea orune sncBay Sis boom Ib Money jus ols right fn when you use peemissons eiàedngl 121314 Purple coma! That's the way to gt atenton!™
Inistructharthese books help people make money Two people actully “The author ad the publisher >Hercathebai neva Beioee sac he had work, Ale steer
you el you san tthe oFer took inthe world will ot and net make business sce Eaten it takes knowlege, eescarch,inelgence, good less, good deciions, ieiplae, siapohliy,leadenhip,arganiztioa, and planning yo ea these cherlenng bake cael, youll press fi prot avice Suge, you can ene tour of acy through perme ‘nackating, wordcimouth, or innovative sivenddng, Bt bow do you get from hereto there? What cla you nee to row? What does it ese? Who do to? What kind of deciionr do you nel to make?
‘Those prt questions of cours, are for the other Ki
ook So'we wrote theater kind of busines ook Thi aio shout how to se From hereto there Bvery sep ofthe wa ‘We were book about the real world nat about wis Fulfilment ‘We wrote about going iat busines with the reources yu haves not the ‘eure you wah ou bod, We wrote bout be hard work knee ted ‘dee fe fe ake efor ye er or pl ies e's fally-functioning, well organized sentre, We wrote a book about he tse and proceace that ae teal a of busines 2 bininci’s succes and how to perform them
teed to know to make thn aks an procenes happen, rv iid budget, We wrote a practic took about lhe thing ou ‘An Ocean of Knowiedge Two Inches Deep
wae the CEO of a companys abit a sery small one—maghe even a one-perion company run from your basement, No matter whit your
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xxx | INTRODUCTION
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INTRODUCTION | sexy 2 lt of ime in the inde You should definitely mark up the pages When Toute Fed wih = deca, jus ip through the pages and Bad what you reed Even ifyou ead iethroogh a one siting isa book we intend yu to tse use and over agin thoughout the feof your vente Scratch that We intend yout ne this book over and ore agra throughout the long ie
A seul appa ne ca: ace eign ame vinl imperat xen naming your company, we prone you with thomain name resoucesia the sey frst chapter on stating up your sins Bat cbsining dorsi nae i alo ey to developing your Web ste, 0 we have zepeate this section in our Website chapter sme ofthe online esnurees we cite have we across varity of busines sexist such #@ SCORE, te free consoling serie for stall bine ws, ‘Cig’ Lis the number one online clawed elversing ein the word So weave repeated thee recurs in more te one part ebook,
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Startup
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aa] 3
What's Your Goat
‘hr chprrcorer the cet ames yo fice ntartinge mec busines you aready havea ongoing bain cancer tht youre trying tte 1 the ret eel, đan ship shies The subjects we coer here epi busine Plans ae llevan 0 reomed burns that are ie fn animation or launching new product In oter word tarp ines meee grow oboe in sien Tis ft chaper rt athe very ginning: ting gal fr yon ‘nine foraltinganer 3e intangible ase sacha our mae, trademark, dma name, pet nd a fandorctnl gortantin a bainepln ering copyrights and handling the ening, corporation an leg mar weeny age on bien npand ring
LL, What's Your Goat?
lore yon gam anything, you need wo determine the pepe or goal uf your busines You will be surprised howw many grea eas founder becnine ofthe lack of lear busine rather than personal gol Whatever om eter je tes gal (bei vA keebme soi tờ ý ee busines pln which ata iyone Mueprine for sce ‘hat do we mean by ies eal? As opposed wo ser goa such ay perma or cacer sls? Wel anhing that annters all or mt of these
1 Ate you basking to create wealth through equity, incomes Toth? That is ate you loking to Build up sicesl busines that youcan ether sell or go pli wth i bung equity? Orare you interested mainly nthe income that your busine am generate? Or te you looking fora healthy incomeand fare xu?
2 How ene ou want build?
do Yu want tern? Hlow much equity do 3,” Hơy vi với lane ya baa? WA yu Four HE ‘money? lovers’ memcy! Gr wil ou barrow money?
4C Is your primary personal gual to do work yo ike to oor i our primary personal goal to manage a lg busines?
5 Whoare yourcutomersand what vale ae you offering them? Hloware ou making elves and business beter?
5 Gas oe wile peed on joes papal soar
irwctre you sould use Bo stance i you want to mae 3 heal income ‘Your answer thee questions will determine what Kid of Bnet but youre sting your busines o do what you like odo and you're mot interested in selling your busines in the Fre, yo ay want consider a
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4 |SHAPTER+ STARTUP
sole propratonhip However i yout secking ts bul highly proitble imetme nthe fture, soe propietorhip ie supe lied lab ——— company elnee øibs ml poeminl
wrens ony wee per vend wee corporation algae hall
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boc certhing ce, Be caf urate pera fom bins ga If Jo ike eating and your pal send mare tie with iting ing ‘spon anline yon sre ides im twp an online 9 n0 om line ar store, of lỡ it tak abot kiting or Be around ar toe oder Titers U have son more thin ome etreenc stp Bins around evanal nterotsand gol omy fo find to thr chagrin, tha the Bsn lakes time aay fore thas inter snd personal gaa Bains gale ar lay formule in toms of egy income, iancing and meting tutor ned Peso gal et on as innocent “Tt te my wr basa udinable bt thee ot what burn abt
41.1.1 SCORE: Counselors to Ameriea’s Small Businesses io://w.scoreo7g
SCORE isthe mot valuable online euauce avilable o help gow get sr busines started, No exceptions SCORE i rewire you in ie for fre ine we cance i this books sald abrey be the Face ou ‘ool
‘what ist? SCORE isa nonprofit organization that has gathered together etted and working executives, busines owner, an corporate Jetder to pro fe metoeog ad] adie lo rnfrepemects starting tele town business SCORE boasts over 100 executive vohuneers representing me 60 busines skills these volunteer wll personally corespod with ou via email ort down with you faceto-fice to ive you advice Based on
i yu
75 million businescs aad boasts Jelly Bell Cay, Vera Bradley, Vero “Tay Bears and Abi Suh st major sucemesthey ve mentored SCORE uflers
line tesoures ad atic DOsite workshops in Flash
Free advice vem from aver 1 counsel acest fae counseling in your aes
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a2) 8 Business Structure 4.1.2 The Entrepreneur's Reference Guide to Small Businoss Information "`
So f enning your business requires an ocean of kv lep,shetck thể bo place to get ha ocean of kde Books, Ar wre bok,
‘The Liar of Congren developed this urge and eee veerence side compiled by Kober Jackson While cos ot prove informacion,
ledge two inches
Foes provide a comprehensive Is of important books and souren Mose the cation inelide shore descriptions or the Bork tabl of contents HE 7 hulking Cor the best hooks on stating your business, thi the tet bok,
1.2, Business Structure
‘What people enn by the em, "loi srur”is relly the egal sttunof the compan Theres thing dsuntngly mpsterious aout busines Structures they exes fer From one another hase ơn ức anemerrto ane oeae
1 Who con the busines?
2 Whe i responsible For the debts and damages the business may ho phế re
"The'who! for each of these question i it always the mame person, ‘The ype of busine stactare you choose has many rations Your bsieatsrctare determines how mchtax you pay how much paperwork ho any lawyers get cack tye walle, ow a re ging toe your sei ool mee
Fe to find invesore and hans a whether
you et in tobe Thiời wale ee ne aa aca ae dow int Sle Proprietorship
Companies nd C
ral Partnership Limite Lisbiy
Soke Propictoehip Ta bea se propre you oly melt cone a ‘ate or your busines and ge busines lent, your ste requis one
Who own the basin? Yous the toe propionate the owes