this is what happens when i drink too much wine!

too-much-wine

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The Crisis of Credit Visualized

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Beautiful Sunday!

Its raining outside in Columbus, OH -  sort of dark and gloomy. But I am feeling fresh and ready to rock… so y’all have a splendid day!

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10 Mistakes to Avoid in the Mobile Office

By Mark A.R. Mitchell
Small businesses face enough challenges in the pursuit of success, and those that operate a mobile office have it even tougher. Why make avoidable missteps? Here are 10 mistakes to avoid in the virtual and mobile worlds:

mobileoffice 

Failing to back up your data: This is a sure-fire way to destroy your business. It doesn’t seem to matter how often people like me say to back up your files–most people just don’t do it. But when you’re working in a mobile office setting or by yourself from home, you risk losing everything you’ve built if you lose your data.

Solution: Back up your data daily, using an external drive or an online service such as one of those discussed here.

Skimping on connectivity: Connectivity with your team and with your customers is your lifeblood. If you cut costs here, you’ll cut into your success.

Solution: Get the fastest broadband connection you can get–up and down.

Developing sloppy work habits: The virtual office is an office, even if you’re dressed in your bathrobe.

Solution: Keep focused and remember that you are doing real work. If you forget that, so will others.

Isolating yourself: Not having a brick-and-mortar office doesn’t mean you don’t need to interact with your clients and teammates in a traditional manner–at least occasionally.

Solution: Face time with others is important, not just to stay current with your clients but to keep yourself from going stir crazy. If you’re on the road for your company, you need to dock with the mother ship on occasion. It will help you remember why you’re doing this together. If you’re working from home, you need to get out and go to a professional conference or client meeting. You need to find ways to keep ideas coming in–and interacting with other people remains a powerful way to do that.

Working without an IT plan: In a virtual office, many people may come to the table with their own ideas about what information technologies they want to use. Some folks are Mac champions; others are PC lovers. Some love the BlackBerry; others the Palm Pre or iPhone. All this love, though, can lead to IT chaos.

Solution: If you’re the boss, you need an IT plan. Trying to run a virtual office with technologies that don’t work well together consumes time you could be devoting to doing real business. So set standards and expectations and be clear about why you’ve set them.

Micromanaging your virtual employees: One of the reasons people are drawn to a virtual office is flexibility. If you try to micromanage your employees’ time, you’ll run into difficulties.

Solution: In the mobile or virtual environment, you simply can’t keep an eye on what everyone is doing at every moment–so don’t even try. Mature mobile office workers–in contrast to immature slackers–will focus on getting the work done. They may do the work at 10 p.m., after a long day on a mountain bike, but they’ll get it done. If you expect their attendance at a meeting or on a call, make sure they know that, but don’t expect them to be at their desks working just because the clock says it’s 10 a.m.

Failing to manage your virtual employees: While micromanagement is a problem, the absence of active management is equally bad. If you set unclear expectations, or none at all, you (and everyone who works for you) are bound to be disappointed.

Solution: Focus your mobile and virtual employees on goals, deliverables and milestones. Encourage them to ask for help if and when they need it, but otherwise leave them alone to do the work you expect them to do. They’ll do it in the way that works best for them within the timeframe you’ve identified.

Insufficiently vetting your employees: You need to know that your virtual employees can get the job done in an environment that may have few, if any, of the traditional reminders that they’re at the office. How can you know this when you hire them?

Solution: A track record of working virtually helps, but in the absence of that you’ll have to go with your gut when you assess answers to questions like, "Why do you want to work in a nontraditional setting like this?" and "How do you structure your work life?" and "How do you deal with the competing demands of home while you’re in the office?" If you don’t vet your potential employees with due diligence, it’s going to be harder on you and your business in the long run.

Forgetting your boundaries: Traditional offices–even really hip ones with video games and foosball tables–are still bounded spaces. You leave home to go to them. But if you’re working from home, that boundary, like everything else, can be virtual.

Solution: You need to find a way to keep a healthy boundary between your work and home life. If you don’t, both will suffer. A door you can close at the end of the day is a wonderful thing.

Failing to enjoy the virtual office: Ultimately, a virtual or mobile office can be the office you’ve always dreamed of, so don’t miss the opportunity to enjoy it.

Solution: You have a unique opportunity to choose the tools and technologies you use to get your work done, and to shape and control the environment in which you work. If you don’t take advantage of that opportunity and build the world that works best for you, your employees, and your customers, you’ll miss out on one of the best aspects of working in the virtual office.

Mark A.R. Mitchell is an avid technology buff and reporter covering small-business products and the Consumer Electronics Show. He holds a master’s degree in English literature from Harvard and has worked with leading technology companies and research universities.

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How to Find Startup Capital

from: http://smartstartup.typepad.com/my_weblog/2007/09/how-to-find-sta.html

I have this conversation at least once a week.  Some visitor to my site on financing startups spends a couple of hours reading all, or most of it, and decides to call me up. The conversation then, almost invariably, goes like this.

Caller: Hi, I read your site. It’s fantastic, by the way. Look, we’ve been trying to raise X dollars for over 6 months now, without any luck, and we’re starting to get desperate.

Can you help us raise X dollars?

Me: Well, it doesn’t really work that way in real life. Raising money is actually all about relationships and personal trust. Let me put it this way. You have three basic financing options out there.

The first and best bet consists of your former investors. These are people who gave you money in a previous deal and made off like bandits as a result. They know you, trust you, and believe in you.

Caller: Hey! That makes perfect sense.

Me: Your next best bet consists of the "3Fs", otherwise known as "family, friends, and fools".  This group includes dad, mom, uncle Ziggy, your Yale "frat bro" Chipper Drysdale III, and anyone else foolish enough to fall for your pitch (e.g., your dentist).

Caller: Got it!

Me: The final option is to get creative and do what most of the great entrepreneurs did at the beginning when they were in your shoes and couldn’t raise a dollar either. This third option is what my Smart Startup Guide teaches you how to do. It teaches you how the greats started with minimal or no capital. It goes into great detail about their strategy and tactics.

Caller: Well, I’ll be danged! Wish I had known all this 6 months ago.

Me: So, Mister Caller, let me ask you if you have any previous investors whom you made rich and who trust you?

Caller: Ahh, no I don’t. I have never made money for anyone. This will be my first business.

Me: Hmm, okay, let’s work our way down the list. What about the 3Fs? Do you have any family, friends, or dentists who would be willing to gamble their savings on you simply because they like you?

Caller: Ahh, no I don’t. My family is not rich and I didn’t graduate from an Ivy League school.

Me: Hmm, well then you need to forget about raising any outside money for the time being. Instead look at devising an alternate strategy for launching your business. You need to show potential investors that you have what it takes to create some cashflow first. Then they might take you seriously enough to invest.

Caller: Wow, I never knew any of this stuff. This explains why we haven’t been able to raise any money with our business plan despite 6 months of pounding on doors and doing "dog and pony shows" for angels and venture capitalists.

Me:  Yes, it does explain it. Investors only invest in entrepreneurs they know and trust–or those who have proven the viability of their idea with actual cashflow.

Caller: Sure looks that way.

[There's usually a short pause here before the final question.]

So, can you help us raise X dollars then?

~

At this point I usually feel like banging my head down on the desk. So if you are tempted to call me about helping you to raise capital, please don’t. I wrote the Smart Startup Guide for people who have wasted 6 to 18 months of their lives in a futile capital pursuit. After this much time they have either become realists or quit. But both finally understand that a business plan alone means little to investors. So feel free to invest or not invest in the Guide, but please don’t call me about helping you to raise money.

I decided to post this because the number of entrepreneurial wannabes who waste 6 to 18 months chasing capital with nothing more than a business plan is absolutely staggering. They might as well just stay at home for the same period buying lottery tickets. The odds of success are about the same.

So what’s the take home here? First-time entrepreneurs should focus on proving that they can generate some cashflow first. The investors will follow. Don’t fall for the hype from the business plan industry which tries to fool you into thinking that all you need is a well-written plan.

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Copyright © 2007 Satya Murthy. All rights reserved.