Entrepreneurial management

Bill & Christi Rowe have been saving for retirement for years. While they have been investing in their retirement, they have been investing in their retirement business. In 1999, they started an online shop on the Internet with online credit card processing, shopping carts, and a professional looking web site.

Year by year, the business has grown. There have been some ups and downs. “We have survived a recession, the dot com bust, the 9/11 terrorist attacks and subsequent loss of consumer confidence (that is, loss of business), and two wars,” says Bill.

We asked the Rowes what tips they have for entrepreneurs who want a home based business that has a good chance at success.

A Passionate Focus

“The first thing we looked at was whether our shop would sell goods or services, and to pick something you are passionate about. We also recommend a narrow focus so that you, as a small business owner, may compete with the big guys,” said Bill.

Bill adds, “Finding and filling a niche with a narrow focus it crucial. It is better to be zoned in on one subject and do it well rather than try to have a little of this, a little of that, and not much of anything, especially with the competition one has on the Internet. I saw one web site that just sold clown shoes, not clown noses, not clown wigs, not clown makeup. I was impressed with that.”

Inventory or Drop Ship?

The next thing that the Rowes considered was whether or not to carry inventory. “In 1999, there was a lot of talk about having a catalog of items that you did not have on hand and have the maker drop ship when you got an order. I found some problems with that,” says Bill. “For one, the cost of the items appeared to be higher. For another, there would be quite a bit of time for the third party to fulfill an order. And finally, what if a customer bought some jewelry from two or more vendors? The customer would get two or more packages, at different times. So, I decided that we would carry inventory and do our own fulfillment. We would be able to buy at better prices and we would be able ship very quickly.”

Select Quality Vendors

The Rowes examined a lot of web sites and picked things that they liked and found the vendors that supplied what they wanted to sell. “We were fortunate to find all good people in our various vendors. We have a personal relationship with almost all of our vendors,” says Christi. “That means that we can often get faster treatment in case a customer needs something in a hurry.”

Credit Cards?

The Rowes also considered how their web site would work in general terms. “There were plenty of commerce sites then that did not offer online credit card payment,” says Bill. “They might have had offline credit card payment where a customer could call in, or accept checks and money orders only. We believed strongly to give our customers the most choices possible, so that meant online and offline credit card payments, fax, telephone, and mail orders. For the business, we got a toll-free number for orders, a must have even then.”

Web Site Specifics

The next big hurdle was primarily technical: How to get a professional web site that offered online credit card payment. After searching for a good ecommerce software package, the Rowes selected a commercial package that was used on over 300,000 ecommerce web sites at that time. “We picked that system because it was a database system that allowed us to enter the information once for each product and have each product in one or more categories,” says Bill. We spent some time to devise appropriate categories that allowed our customers to find what they wanted easily.”

“The system is also modular and allows third party developers to write useful extensions to the basic software, a feature that the Rowes have used to advantage.

The Rowes then selected a merchant web site host that specialized in their system. The Rowes went to their bank and applied for a merchant account linked to their business checking account. Then the Rowes had to find a credit card acquiring company and an online credit card transaction service that worked with both their system and with their bank. “This was, by far, the most complex, most nail-biting part of the endeavor,” says Bill. “We needed for a customer to be able to pick the product he or she wanted to purchase form our online catalog, put in their shopping basket, and be able to checkout.”

“Once the name, address, shipping, and credit card information was entered by the customer, the software sends that information to the credit card transaction service. This service then looks up the company that issues the credit card, and sends it the request for the purchase. The credit card company replies with a yes or no, and the service returns the answer to the merchant software which then completes the order. This process between many independent parties must go through smoothly and efficiently within a few seconds.”

“Then, when we are ready to ship, we capture the charge and the acquiring bank goes to the credit card company to settle the transaction in about two days with an eventual transfer of funds, less fees, to our business checking account. Everything must work correctly.”

Credit Card Precautions

The Rowes also decided, for credit card security, that each order would merely be an authorization, not a charge. “At that time, many people had their orders come through as charges,” says Bill. “But, that meant if there was abuse or fraud by the ‘customer’, or there was a problem with the order, the charge was already made. We decided to take an extra step and err on the side of caution by having orders first come through as authorizations. Then, if there were no problems with the order, we ‘captured’ the authorization as a charge when we were ready to ship.”

The Rowes have had to learn a lot about online fraud with credit card orders. “All of our orders are ‘card not present’ orders, similar to mail orders. We never see the purchaser, the credit card, or the card signature. We have to rely on the verification of the credit card billing address, and now the three or four digit card verification value. Our policy is to ship orders with verified credit card billing addresses and

to enquire and look into those that are not verified at the first go. We have had a rash of fraudulent orders from certain parts of the world that use stolen credit cards. Woe to anyone who falls prey to their traps because you will loose you product, your shipping costs, and have your credit card payment cancelled, and pay a fine. The credit card companies protect the consumer by making the merchants pay. It’s as simple as that.”

Shipping Considerations

The Rowes had to also consider shipping options. “For our products, we had relatively simple options, says Bill. “Our products are small. We could mail everything, so we offered first class mail, priority mail, two day, and overnight shipping to US orders and several international choices to non-US orders. Our shipping module sends the order information to the shipper’s website which then returns quotes for the relevant options when shipping options are required at checkout. Finally, the faster orders are insured and trackable.”

Terms & Conditions and Privacy Policies

“We also had to spend a good deal of time considering our store terms and conditions and our privacy policies,” says Christi. “We eventually came up with a good set of terms and privacy policies using the golden rule as follows: We will treat you the way we would want to be treated. It has worked really well for us. We take the customer’s information in trust and use what we absolutely have to in order to transact the customer’s order, but we never share this information with third parties outside of the transaction, nor do we sell, lease, or loan any customer information.”

“We made sure that our terms and conditions and privacy policy was clearly spelled out on our web site,” adds Bill.

Keep the Customer Informed All Along the Way

The Rowes have one more tip up their sleeves. “We believe that it is critical to keep our customers informed about the progress of their order,” says Bill. “I have ordered online at places where my order seems to have gone to a black hole perhaps to show up unexpectedly weeks from now when I have ceased to remember it. We do not do that: We immediately send a confirmation email that is automatically generated, with a promise of a human generated email to follow.”

“When we are ready to ship, we send the customer an email telling him or her so. If there is a problem, we email the customer and explain the situation, the choices, and ask for a response.”

“We believe that one of the reasons for our success is our quick shipping and our keeping our customers informed about their order step by step. Once we have completed the order, we shut up and to not contact the customer again unless she or he has signed up for our newsletter.”

Instilling Customer Confidence

The Rowes have been rewarded with a good website, repeat customers, and lots of customer testimonials. “We signed up with an independent consumer rating agency when we started. This agency asks for and tabulates consumer comments about our goods and services,” says Christi. “Obviously, we want our customers to be happy, and we want them to say so about us.”

“We also ask each customer what they like and what they would like to see improved at our shop,” says Bill. We publish these comments as well as unsolicited emails from customers on our web site. We reassure customers this way that we are okay people to do business with. After all, they do not see us either, although I use a picture of myself on the web site to put a face to our business.”

Sit Back…And Wait!

With lots of hard work, the Rowe’s business has grown. “We anticipated that it would take four to five years for the business to be profitable,” says Bill. “We didn’t factor in the recession, 9/11, and the dot com bust, but we may begin to turn a profit in our sixth year. Of course, we spend a lot of our revenue investing in marketing our business.”

“So many people just think that if they build a web site, customers will come,” adds Christi. “Wrong! First they must find you, and that means being well placed in the search engines.”

“Then, once a surfer has finally arrived at your site, you have about five seconds to make a good first impression so that a surfer will take time to look over your wares,” adds Bill. “When I go to a store, I generally go in to buy something, not to shop. But on the web, it is so easy to go from place to place because there is little effort to do so, that we get about one buyer in twenty visitors.”

Give Customers Complete Product Information

“It is an art to make your pictures and words as compelling as possible in order to convert visitors to buyers. We give a great deal of detailed information on each product on its product page. We have its size in inches and in metric so we may appeal to a global audience. We tell you who made it, what its made of, and what comes with it.

You Don’t Have To Do Everything Yourself

“I find that having this business has really broadened my skills,” says Bill. “As a small business owner, I have to wear many hats. But sometimes, it is better to outsource some tasks. Writing is one to outsource if you are not good at it. Web site design is another. It is a lot more difficult to address everything that ought to be addressed and then implement that design for something as complex as an ecommerce web site.”

From First Order to Repeat Customers

The Rowes sum it up for us: “We have really had a lot of fun and satisfaction from running our own ecommerce web site,” says Christi. Getting our first order was very exciting, and, no, we did not open our store one day in July of 1999 and then see orders begin to trickle in and then start arriving in droves as some dot com commercials of the bubble times would have you believe. But, orders have come in, customers have come back.”

William Rowe, the ‘Pop’, runs the successful Shop Bag End Celtic Jewelry Gifts business since 1999 while having a full-time job as an architect in northern California.

Christine Rowe, the ‘Mom’, runs this same successful business while acting as an educational grant and small business entrepreneur consultant.

Entrepreneurs must have a vision of where they want their company to be in the future. In addition, the entrepreneur must be able to communicate this vision in an exciting manner to employees and investors, so that they share the vision and are motivated to help achieve it.

Unlike a business plan, a vision doesn’t provide a specific roadmap for a business. Rather, a vision paints a picture of what the organization strives to become in the future. A leader with a strong vision motivates the team to achieve this picture, regardless of the action plan that will be employed.

Vision provides motivation to both the leader and employees. It gives employees something that they can believe in and rally around. While it doesn’t tell the employees what to do to achieve it, having vision instilled in them helps positively mold their decision-making when problems must be solved that don’t have clear answers.

A strong vision

combined with a strong business plan is critical to the success of a growing venture. The vision motivates everyone to achieve success, while the plan guides them to where they need to go. In addition, the plan is significant in that it documents the vision. By “cementing” the vision on paper, the team gains more confidence that the vision will not be easily changed and that the organization is truly committed to achieving it.

Since its inception, Growthink Business Plan Writing has developed over 250 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know. For more information please visit http://www.growthink.com or download our free Business Plan Guide.

A franchise is a continuing relationship between a franchisor and a franchisee in which the franchisor’s knowledge, image, success, manufacturing, and marketing techniques are supplied to the franchisee for a consideration. This consideration usually consists of a high “up-front” fee, and a significant royalty percentage, which generally require a fairly long time to recover.

About 10% of the 20 million U.S. businesses operate under some kind of franchise agreement. About 3,000 companies sell franchises to on the order of 25,000 new buyers each year, or about one every 20 minutes.

Franchises account for over a third of all retail sales. Franchising offers those who lack business experience (but do not lack capital) a business with a good probability of success. It is a ready-made business, with all the incentives of a small business combined with the management skills of a large one. It is a way to be “in business for yourself, not by yourself.”

Franchises take many forms. Some are simply trade-name licensing arrangements, such as TrueValue Hardware, where the franchisee is provided product access and participation in an advertising cooperative. Some trade name licenses, particularly in skin-care products, are part of a multi-level marketing system, where a franchisee can designate sub-franchisees and benefit from their efforts.

Others might be distributorships, or manufacturer’s representative arrangements, such as automobile dealerships, or gasoline stations. It could be Jane’s Cadillac, or Fred’s Texaco; the product is supplied by the franchisor, but the franchisee has a fair amount of latitude in how the business is located, designed and run. The franchisor will frequently specify showroom requirements and inventory level criteria, and could grant either exclusive or non-exclusive franchise areas.The most familiar type of franchise, however, is probably the “total concept” store such as McDonald’s. Pay your franchise fee, and they will “roll out” a store for you to operate.

The advantages can be considerable. The franchise fee buys instant product recognition built and maintained by sophisticated advertising and marketing programs. The franchisor’s management experience and depth assists the franchisee by providing employee guidelines, policies

and procedures, operating experience, and sometimes even financial assistance. They provide proven methods for determining promising locations, and a successful store design and equipment configuration. Centralized purchasing gives large-buyer “clout” to each location.

The large initial cost can be difficult to raise. The highly structured environment can be more limiting than it is reassuring. Continuing royalty costs take a significant portion of profits. Several small business periodicals evaluate and rank franchise opportunities. There are now several franchise “matchmaking” firms who can assist in the evaluation process.

How do you choose among all the available franchises? Most prefer a business that complements their interests or builds on their experience. Even if you hire someone to manage the business, expect to spend a lot of time with the operation.

Is the name well known? If not, what are you paying for? Is the fee structure reasonable, and all costs clearly described?Is the franchisor professional? Evaluate them on the clarity of the agreement, and how well your rights are protected, the strength of their training and support program, and their commitment to your success. Be sure to talk to current franchisees about their experiences. Beware of a franchisor committed to a rate of growth that exceeds their ability to manage; they may not be sufficiently interested in the sales they have already made.

Is a franchise a sure path to instant riches? Is it the only hope for independent firms in today’s market? Can Jerry’s Quick Oil Change compete with SpeeDee or Jiffy? Does the franchise deliver business that we might not have gotten anyway? Is it really entrepreneurship; did I go into business or did my money?

John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.

Is there really a secret in becoming a millionaire? People have been asking on how to make their millions at the earliest time possible. Most of our parents used to tell us to get our college degrees from famous universities so that Fortune 500 companies will be able to hire and package very attractive salaries for us. As we get on board a company we aimed for from college, we then work our way up the corporate ladder and our dispensable income increases as well. After working for quite some time, we would usually assess how well are we doing in making our first millions as the years go by. Sometimes we would usually find ourselves asking if we’re really on our way to the first million dollars in our bank accounts, or we somehow feel that it’s just a far fetch goal.

People would usually ask themselves “I’m still not making enough money from this job and I have to look or aim for a higher position in my company or with another company that can give me a higher salary”. This thought that the higher the salaries are, the closer it is to becoming millionaires. But sometimes, earning a higher salary doesn’t always result in making us millionaires. So what does it take to make a person earn his first million? Does it really lie on how much our paychecks say? Does it really lie on the number of credentials we have in our resume?

If we’ll observe famous millionaires, you would notice that it’s not always based on paychecks, careers, or even the higher studies that they took that put them at the millionaires’ club.

While having these personal credentials as a given can provide you an advantage or an edge in the millionaire game, there will always be the bottleneck that will separate a person of wealth from a person still finding his way to wealth. At the end of day, a person will learn to find out that it’s not in the genes, the school where he attended college or even the company he has worked with for the past 10 years. So what’s the secret after all?

The secret to making millions lies not in what credentials the person has right now but on how he uses his credentials in inflating his bank account. How to get there will depend on his spending habits, savings and investing strategies.

On spending habits, people usually think that the higher they earn, the higher their standard of living should be. As one may pass by a famous luxury brand watch store, one may have this thought “I just got promoted last week and I think I should reward myself with this watch that was previously beyond my wallet’s reach”. It maybe best to think twice first before buying that watch. One may find that he actually has 3 watches right now with the latest one bought just 6 months ago so what’s the sudden rush of buying that watch in that store that’s worth twice the current retail value of all his 3 watches combined? Maybe it can wait for 1 more year. In

spending habits, holding on to the wallet and checking if it’s really necessary to buy another one is something that should be part of the checklist of things to think about before buying. Long-term millionaires know when is the right time to pull a dollar out of their wallet.

On savings habit, one may ask “Are my savings working as hard as I am?”. It maybe best to think twice if you’ve kept your savings in the right places at the right time. Knowing which savings vehicle can give the best rate of return at the least risk is a key item. Long-term millionaires usually know how it is to save and how much of their personal income they should save. This should go along well with the spending habits. Technically, as a person increases their capacity to generate more income by getting promoted or landing at a better job with a higher pay, spending habits should at least be regulated and savings to be placed for investments should benefit the most.

On investing strategies, now that one has saved up enough money from all the years that he’s worked so hard for, its now time for him to put them in investment vehicles that will both protect his hard earned money and at the same time provide the highest rate of return possible. In choosing which investments he could place his savings, the keyword to keep in mind is diversification. Diversification is having a variety of investment instruments with different yields with a healthy percentage mix that will accommodate his hard earned savings. The places where to invest should have different rates of return and diverting how much of the savings will go in that investment should be studied carefully by considering both risk and rate of return of that investment. The higher the rate of possible return usually packages itself with a higher risk. Long-term millionaires usually know how much of their funds they should put in real estate, publicly listed stocks or mutual funds and other assets that are available in the market today that can accommodate their funds.

There are a lot of factors to consider in building wealth. Just like the today’s millionaires, there are different challenges they faced to get to where they are right now. No wealth building strategy is perfect. There may be incorrect decisions but with careful planning, there will also be successful ones. The secret lies on finding a good healthy mix of spending habits, savings and investment strategies. People who’ve been there know that the x-factor in getting there doesn’t lie on how much money they had before they started building their wealth. They know it didn’t depend solely on their college degrees also. These 3 significant factors along with whatever credentials a person has gained from his accumulated experiences in his career will surely help however in finding him his way to wealth building success.

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Entrepreneurial ventures are constantly in the market for new capital. Experienced entrepreneurs realize that the financing of companies is done in stages and that they have to be flexible in identifying the latest trends in financing.

For many startup entrepreneurs, initial financing can be the hardest part of launching their new business. It is a popular misconception that an idea, a startup team, and a preliminary business plan will get them in the venture capitalist door. They expect to exit, happily, with the check in hand.

Unfortunately, traditional venture capital, i.e. funds supported by institutional investors, only finances a fraction of the new companies started each year. Over 90 percent of startup money comes from private sources and it is up to the individual entrepreneur to identify and sell their project to these financing sources.

Begin With a Business Plan

Whether you need to raise money or not, any prospective venture should begin with a business plan. This should include:

• Purpose and Objectives–a summary of the what and why of the project.

• Proposed Financing–the amount of money you’ll need from the beginning to the maturity of the project proposed, how the proceeds will be used, how you plan to structure the financing, and why the amount designated is required.

• Marketing–a description of the market segment you’ve got or plan to get, the competition, the characteristics of the market, and your plans (with costs) for getting or holding the market segment you’re aiming at.

• History of the Firm–a summary of significant financial and organizational milestones, description of employees and employee relations, explanations of banking relationships, recounting of major services or products your firm has offered during its existence, and the like.

• Description of the Product or Service–a full description of the product (process) or service offered by the firm and the costs associated with it in detail.

• Financial Statements–both for the past few years and pro forma projections (balance sheets, income statements, and cash flows) for

the next 3-5 years, showing the effect anticipated if the project is undertaken and if the financing is secured. (This should include an analysis of key variables affecting financial performance, showing what could happen if the projected level of revenue is not attained.)

• Capitalization–a list of shareholders, how much is invested to date, and in what form (equity/debt).

• Biographical Sketches–the work histories and qualifications of key owners/employees.

• Principal Suppliers and Customers

• Problems Anticipated and Other Pertinent Information–a candid discussion of any contingent liabilities, pending litigation, tax or patent difficulties, and any other contingencies that might affect the project you’re proposing.

• Advantages–a discussion of what’s special about your product, service, marketing plans or channels that gives your project unique leverage.

• Provisions of the Investment Proposal–State the financial offer precisely. For a loan, state what interest rate you are willing to pay, and whether on a monthly, quarterly or annual basis. For investors, are you offering a certain percentage of the profits, a percentage of business ownership, a seat on your board of directors?

Venture investors are usually quite familiar with “high risk” proposals, yet they all want to minimize that risk as much as possible. Include a listing of your business and personal assets with documentation. In most cases, if you’ve got a good idea and you’ve done your homework properly, an interested investor will buy in.

What all entrepreneurs soon discover is that there are several factors that are affected by the method of raising funds, such as distribution of equity ownership, potential restrictions on daily operating flexibility, and debt-imposed constraints on future growth.

John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.

An Entrepreneur is an individual who chooses to go into business by himself. Often entrepreneurs decide to stay a one-person company to keep decisions and quality of work under control. These single entrepreneurs are often called solo entrepreneurs, too. These entrepreneurs are often referred to as free agents, freelancer, self-employed, sole proprietor, or home based business owner (although not all single person entrepreneurs are home-based). This often depends on the professional field they work in.

Being a one person business does not mean being completely on your own. These entrepreneurs often collaborate with other businesses or build alliances with other entrepreneurs or consultants. It all depends on their business needs. Outsourcing of basic work or certain project related work is the closest these businesses get to in regards to having “staff”.Businesses run as one-person companies often have owners that meet certain characteristics. What are typical Solo Entrepreneur characteristics?

- The desire for personal freedom that allows them to adopt the lifestyle of choice.

- The drive and passion to implement the business plan and to fulfill their personal dreams.

- The willingness to go the extra mile and the desire to succeed

- They are very passionate about what they do.

- Being committed to their venture.

- Comfortable working alone and an above average usage of new technologies such as the Internet or Voice over IP (VOIP).

Why the “one-person company”?

Many entrepreneurs are “refugees” from the large corporate world, while others choose to be self-employed in a “one-person

company” as a change from a traditional-based small business with employees and increased management responsibilities. Being unemployed after another wave of outsourcing to India can also trigger the desire in people to become self-employed and especially to stay a “one-person company”. Especially the political games played in larger corporations increase the desire to completely get a way from the same. Being flexible and able to implement decisions without having to worry about the “internal political players” is a driving force to work alone.

Other reasons:

- A general change in attitudes to be more in control of individual choices and actions that affect life.

- Getting out of the daily rat-race and away from working in large companies, climbing the corporate ladder in search of more money, and more (political) power.

- To be able to choose the tools of trade and not being forced to do things in an inefficient way.

What drives the “one-person company” owner to be successful?

Freedom: The biggest reason for leaving the corporate world is the freedom an individual gains when working for himself. Being employee makes the entrepreneur feel like being in a prison. The freedom to decide when to work, where to work, and who to work with makes all the difference.

About the Author

Christoph Puetz is a successful entrepreneur and international book author. Christoph Puetz lives in Highlands Ranch, Colorado. One of the websites he maintains can be found at Web Hosting Resource Kit.

Many small business owners are former executives or technicians who earned considerable money through employment. Their former salaries ranged from $50,000 to $250,000 plus not including benefits. Yet, when starting a small business, suddenly their own value appears to dramatically diminished.

Due to a belief that cash flow is limited when first beginning, these entrepreneurs wear many hats such as: accounting, administrative, human resources, marketing, sales, visionary and general “go-fer.” These hats continue to be worn as the business grows because of the entrepreneurial belief that “No one knows my business better than me” or that “I can do it better and usually cheaper than anyone else.”

Both of these beliefs contribute to a third, mostly subconscious belief, that my time has no value. This is probably the most detrimental belief that any business owner can embrace. Why? Please let me explain.

A Typical Scenario–The small business owner decides to file his own taxes because he can save $500 to $2,000 by not hiring an accountant. Since he has 6 employees including himself, he also takes care of all personnel issues. With an emphasis on sales, he believes that he can save another $5,000 a year by designing and developing all his marketing pieces. His website is professionally designed, but he has the ability to make daily updates. He does allocate $5,000 for memberships in several organizations including a chamber of commerce, a professional association and a formal networking group. This entrepreneur makes many, if not all, of the runs to the bank and post office. And to wear all these hats, he works very long hours. At the end of the year, he looks at his bottom line and possibly he made his previous salary and then some. Now, he feels anywhere

from frustrated to really great.

So what’s wrong with this picture? Simply speaking, this small business owner is working harder not smarter. If he focused on his strengths that being developing a customer base, working sales leads and building productivity or profits, would he not have the money to pay for many of those other hats that he has been wearing?

The real answer to this bad pictue is the owner’s belief that his daily actions have no measurable value. By applying a $100 an hour rate to every activity, he can then do the math and see an entirely different picture of return on investment for his time. That $100 an hour is what his expertise, intellectual capitol or sweat equity is worth and in all honesty it is probably closer to $200 per hour. Until this small business owner believes that he is worth at least $100 per hour, he will probably continue to work in his business instead of working on his business. The end result is that he is losing tens of thousands of dollars while trying to save a few thousand dollars.

Leanne helps individuals, small businesses and large organizations to double performance in real time. Click here to learn the Secret of Success and sign up for a free monthly newsletter. Please feel free to contact Leanne at 219.759.5601. If you truly don’t believe doubling your results is possible, read some case studies where individuals and businesses took the risk and experienced unheard of results.

One quick question, if you could secure one new client or breakthrough that one roadbloack, what would that mean to you? Then, take a risk and give a call at 219.759.5601 to experience incredible results.

Charlie and Martin were best friends in high school in spite of being as different as night and day. Charlie was volatile, full of ideas, always on the go. College was boring; anyway he already had one patent to his name and was developing more ideas. Martin was staid, some said boring. He did a business degree in college, and finance was his favorite subject.

Charlie was really excited about one of his ideas; he was sure it would sell. He proposed to Martin that they form a business together. Martin knew Charlie’s ideas were good and liked the idea of putting into practice what he had learned in Business School.

Martin wrote a business plan. With Charlie’s idea talk and Martin’s finance talk they persuaded a banker to give them a loan. They were in business.

Charlie soon had more ideas; he started two then three more projects. Martin urged him to complete the production plans for their first product. When the first product was about to go into production, Charlie suddenly decided that it must be modified or it wouldn’t sell, more money, more delay.

When the sales agent wanted to talk to Charlie about promotional material, he wasn’t interested. “You do it”. When the agent had printed up some draft versions, Charlie didn’t like them. He went out and spent lots of money on fancy camera work and printing without discussing the expense with Martin. He said later that Martin was too afraid to spend any money and without some expenditure they would get nowhere.

Charlie talked such a good spiel with customers that they had lots of advance orders, but now customers were demanding to see results or threatening to cancel. The original credit was exhausted.

Martin had to drag Charlie to see the banker. Again Charlie talked persuasively about his ideas. The banker listened and then said “I think you guys need more than money. You need a coach. We’ll talk more about money after

you talk to this person.”

The coach explained to them that brains are wired differently and that understanding why one behaves the way one does is the first step to modifying one’s behavior. Charlie protested “I’m the way I am, and I can only work this way.” Martin also protested ” If I don’t have control of the finances, there’ll be no work for you to do.”

The coach said, “Those are your current belief systems and right now they have led you into this mess. You can change your belief systems and the way you work, but only if you choose to do so. I can not train your brain for you. Current thinking is that the brain is like a muscle, it grows and strengthens according to the way you use it. It’s your choice. Stay the way you are and go out of business or train your brains and give your business new life.”

Charlie and Martin, needless to say, took the coach’s advice. With the coach’s help Charlie learned to be aware of himself and others and to let others do their jobs. Martin learned to loosen his hold on the purse strings without losing control. They gained new respect for each other and worked out a modus operandi which defined who was responsible for what. Their first product went to market and sold like hot cakes.

Celebrate!

Sarah Jane Keyser worked for many years with computers as programmer, analyst, and user trainer, but her struggle with inattentive ADD kept getting in the way of her plans and dreams. Once ADD was identified and the great need that coaching filled, she added ADD Coach training (ADDCoach Academy) to complete her preparation for a new career as ADD Coach.

For a free coaching session, contact me at skeyser@bluewin.chLearn more about ADHD at http://www.CoachingKeytoADD.com or sign up for Zebra Stripes, a free E-zine for ADHD at http://www.coachingkeytoadd.com/newsletter/newsarchive.html

If you have invented something, the chances are that you don’t have the resources to mass-produce the product yourself. You will need to send the plans and designs off to someone else to make in their factory. When you do this, how can you protect your idea against the people that might see it? The answer is patent registration. This tactic will give you the exclusive right to profit from your invention.

A patent gives you the exclusive right to profit from an invention for a set number of years. If anyone else tries to sell something that is covered by your patent, you will have the legal right to make them either pay you a license fee or stop. Each patent has a number. You have probably seen this on any number of products. Patent pending means that a patent has been applied for but not yet granted. Your invention must qualify before you get a patent. Not all inventions can be covered by patents. Check that your invention meets the following criteria.

Is it new and secret? You can not have showed your invention publicly before you apply for a patent. Whatever you do, do not take your invention around and demonstrate it before you think about patents. Is it obvious? Your invention must not be something that would be obvious to experience in your chosen industry. You cannot apply for a patent for a scientific or mathematical theory, or method. A work

of art books, plays, and computer programs, a way of doing things or business method are also not elligible for patent. Many of these are covered by copyright. Patents are intended for actual physical inventions.

You need to apply at a patent office in your country. There are also patent agencies for larger areas, such as the European Patent Office or ultimately the World Intellectual Property Organization. It is best to get a lawyer to guide you through this and make them sign a non-disclosure agreement. Depending on your country, applying for a patent can either be absurdly cheap or really expensive. You should note that if your patent application is refused at any stage, you won’t be getting your fees back. You can usually apply again, if you want to pay again.

If you have looked at the prices, you might be wondering: what is the worst thing that could possible happen to me if I didn’t get a patent? The only answer to this is that anyone, to whom you happen to explain your idea or product, can steal it. In this situation, you won’t be able to do a thing about it.

Once your invention does come on the market, success will attract many imitators. They will probably be able to produce your invention cheaper by sacrificing quality. A patent gives you protection in the marketplace for your home business against competitors.

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Okay, you have come up with a fantastic idea that will solve all the woes of the universe – or at least make you $millions$ – what do you do? How do you start?

Well, the first thing to do is get all your ducks in a row. Start a hard-bound journal and put everything in writing. Draw pictures or diagrams of how your invention works. Date and sign each page, and get someone you trust to look at it and date and sign too.

Then, get ready to spend some money. Sorry, but it takes money to get things going. If your idea is worth anything – which you can find out through the process – you should file for a patent.

A patent gives you 20 years from the filing date the right to keep others from making or selling your invention without your permission. That gives you time to develop and sell your invention in the marketplace. Believe me or not, getting the patent may be the easiest part. About 99% is in the development and marketing of the idea.

To get a patent it is best to find a registered patent attorney or agent. I know, attorneys are sharks. But in this case, their knowledge will get through the government bureaucracy a lot faster and easier than you can by yourself.

To give you an idea of what you are going to face when getting into the patent process, here are some FAQ’s to help you understand better – maybe.

PATENT FAQ’s

Q: What do the terms “patent pending” and “patent applied for” mean?

A: They are used by the inventor – or his manufacturer or seller of his product – to inform the public that a patent application has been filed with the Patent and Trademark Office (“USPTO”). You can be fined if you use these terms falsely and deceive the public.

Q: Is there any danger that the USPTO will give others information contained in my patent application while it is pending?

A: No. All patent applications are kept in strictest secrecy until the patent is issued. After the patent is issued your file is made available in the USPTO Files Information Room for inspection by anyone and copies of the files may be purchased from the USPTO. (The Files Information Room is where searchers go to prepare their patent searches – which are needed to complete a patent application)

Q: May I write directly to the USPTO about my application after it is filed?

A: The USPTO will answer questions regarding the status of the application, whether it has been rejected, allowed, or pending action. BUT, if you have an attorney representing you, the Office will not correspond with both of you. The best practice is for all comments be forwarded through your attorney. Another thing – it can take some time before your application will be assigned to an examiner, and what is called an “office action” will happen. Patience is needed.

Q: Do you actually have to go to the USPTO to do business with them?

No. Most business with the USPTO is done in writing and through correspondence. Interviews with Examiners are sometimes necessary (and sometimes helpful) but a lot of them are done by phone by your attorney. The expense of a trip to D. C. is seldom necessary.

Q: If two or more persons work together to make an invention, who gets the patent?

A: If each person had a share in the ideas forming the invention, they are considered joint inventors and a patent will be issued jointly if they make it through the application process. BUT, if one person provided all the ideas for the invention – and the other person(s) has only followed instructions in making the invention, the person with the ideas would be considered the sole inventor – meaning the patent application and the patent itself shall be in his/her name alone.

Q: What if one person supplies all the ideas to make an invention – and another person either employs him and/or comes up with the money to build and test the invention – should the patent application be filed jointly?

A: NO. The application MUST be signed by the TRUE INVENTOR – and filed with the USPTO in the true inventor’s name. This is one time money doesn’t count. It is the person with the ideas – not the employer – not the money man – that gets the patent. If the greedy, blood-sucking, viperous, money-grubbing, creatively non-contributing money man or boss wants any part of the invention, he would have to get his hold through a contract or license on the invention – not the patent itself.

Q: Does the USPTO control the fees charged by patent attorneys and agents for their services?

A: No. This is strictly a matter between you and the attorney or agent. Fees vary – as do attorneys and agents. You should feel

comfortable with your choice. It would be best to ask up front for estimates on charges for: (a) a patent search; (b) The preparation of a patent application; (c) drawings to accompany the application; and, (d) the prosecution of the application before the USPTO. (NOTE: an attorney can only give you estimates. The cost of a search, and the application with drawings is pretty well determinable up front. But the prosecution step depends on the Examiner and what he does and doesn’t like about your application. There may be amendments that have to be made (expect at least one), and negotiations to transpire, which all take time and effort from the attorney)

Q: Will the USPTO help me pick an attorney or agent to do my search or prepare my application?

A: No. The USPTO cannot make this choice for you. The Office does maintain a list of registered attorneys and agents. Also some bar associations have lawyer referral services that may help you. If you have a general attorney, although he can’t help you directly if he isn’t a registered attorney with the USPTO, he may help you with a referral.

Q: Will the USPTO advise me about whether or not a certain promotion firm is reliable and trustworthy?

A: No. The USPTO has no direct control over such organizations. While the USPTO does not investigate complaints about invention promoters or promotion firms – or get involved in any legal proceedings relating to such firms – there is a public forum to publish complaints against such firms. The protections you have from patent promotion firms is spelled out in laws passed in 1999. These promotion firms have specific duties of disclosure under this act. [See http://www.gadgets-gizmos-inventions.com for more info]

Q: Are there any organizations that can tell me how and where I may be able to get some assistance in developing and marketing my invention?

A: Yes. Organizations in your community – such as Chambers of Commerce and banks – may be able to help. Many communities have locally financed “business incubators” or industrial development organizations that can help you locate manufacturers and vulture (I mean Venture) capitalists that might be interested in helping you. Do your homework – check, check, check – and be careful.Q: Are there any state government agencies that can help in developing and marketing my invention?

A: Yes. Nearly all states have state planning and development agencies or departments of commerce and industry that seek new products and articles to manufacture, or processes to assist existing manufacturers and communities in the state. A lot of these agencies are online – or at least have listings in telephone books. If all else fails – write your state governor’s office.

Q: Can the USPTO help me in developing and marketing my invention?

A: No. the USPTO cannot act or advise concerning any business transactions or arrangements that are involved in the development and marketing of an invention. They will publish the fact that your patent is available for licensing or sale in the Official Gazette – at your request and for a fee.

Q: How do I start?

A: First, of course, you have to have an idea. Then that idea has to be put down in a form so that it can be understood at least by a person that is experienced in the field of endeavor that concerns the invention. This usually is a written description and a drawing. Whatever it takes to explain the invention.

The next step is a patent search – to see if someone else has come up with a similar idea. A lot of times this is the case. And, a lot of times your idea may be enough of an improvement to be unique enough for a new patent. There are search firms available – and most patent attorneys have access to their own favorites. It is best to commit only to the patent search at first. Do not sign a contract for anything else just in case the search finds your invention with no way to find “novelty” and “non-obviousness.”

If the search report looks good (watch out for the hype artists), it is time for commitment. Choose your attorney and let it fly.

It is possible to file a patent application by yourself – but really – it is like you going into a restaurant in Paris, France that is, and trying to order from the menu. unless you know and speak the language, you won’t get what you want. In the case of a patent, the USPTO will throw you out – even if your invention is great – because the application does not speak their language.

© 2006 Gary Cogley

ABOUT THE AUTHOR:Gary Cogley writes about all kinds of gadgets, gizmos, inventions and the patent process. Get additional information at his website: http://www.gadgets-gizmos-inventions.com