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Starting a business - is the business you choose viable?

Published 01-06-2008 , 7:10 PM

My wife Maryellen bought a computer today.

Long time computer junkie that I am, I would normally be very interested in the specs, but I wasn't. I just told her to go to Sam's Club (she likes shopping there) and buy whatever she wanted.

Because you know why?  It really doesn't matter anymore.

There was a time when it really mattered. Like I said, I'm a computer junkie - I've built and repaired more computers than I can count. I can remember setting up a new sound card in DOS, and the absolute magic that Windows 95 was (where plug n play sort of worked!) I was always concerned with processor speed, cache, megahertz, gigahertz, RAM, Video RAM, etc etc.  (stay with me - I do have a point to make.)

But today, computer specs hardly matter anymore - almost any machine you buy off the shelf will suffice nicely. And they are now dirt-cheap - Maryellen bought a new Hewlett Packard with fairly high specs, with a beautiful 22" LCD widescreen monitor, for $900. Are you kidding me? At one time, I spent $500 on just a video card. And $200 for another 4 megs of RAM. And put em' in myself...

My goodness, computers have been reduced to TV's in terms of buying new - buy one, when it doesn't suffice anymore, you buy another. No need to ever buy parts or fix them or such.

So how'd you like to own a computer repair shop today? (see, I told you I had a point)

Really - ten years ago, there were no less than 7 local computer repair shops in my area. Today, there might be one. And I'll bet business isn't so good.

Same with video rental stores - remember how many there were ten to twenty years ago? My goodness, they were everywhere... and now they're almost all gone.

They say hindsight is 20/20, but in both of these businesses, I feel the end was clearly in sight. In fact, in one of my first business ventures back in 1991, one of the many things I did was sold local ads on the boxes you brought your videotape home in. I'd provide the video stores with my boxes (so they didn't have to buy boxes), and also paid them a few dollars for each for using the boxes with the ads pasted to them (making this a no-brainer for video stores.) So I got to know a lot of video store owners - and I remember asking a few "doesn't this seem like a limited lifespan business?" Pay-per-view was just getting started, and if that wasn't HUGE writing on the wall, I don't know what is. Plus, I also knew that people would rather own many of the movies - if the price was right (and in 1991 it wasn't, but that would soon change with DVD.)

But none of the video store owners thought their business would ever end. I know quite a few of them lost a LOT of money in the end. And really, with a little objectivity, they could have seen this coming.

And that's my point - if you are starting a business, be truly objective in the viability of your business. Because I'm sure it sucks royally to spend 5 years building something up, and then seeing it go under a few years later.



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Oh, we will have LOTS of work for you!!! So could you....

Published 01-12-2008 , 12:42 PM

I've written about this before, and it still puzzles me. Why do people think that the promise of MORE work will lower my price? Think about it logically...

I offer a price of X to do 10 pages. They want me to do it for Y (a lot less than X), with the promise that more work will be coming... so what is the advantage to me? Do all of the work for the new low low price of Y? Why should I do that? I've already determined that X is my price point.

It astonishes me how some people value their promise of future work. Trust me, you aren't getting 2/3 off (like someone just asked for) because you "will have a lot of work for me in the future".

It reminds me of a retail store I worked in years back (Playtogs). Once in a while, we'd get some guy looking to "deal". He'd be looking at a $39.99 entertainment center (hey, it was a long time ago, and a really crappy store) and would say something like "ok, what can you do for me if I bought TWO of them?" 

To which my answer would be "well, you'll pay $39.99 times two, which is $79.98." (you would think with math skills like that, it's somewhat surprising that I became a writer, huh?  )

Listen, good, reasonable clients hire me (and give me more work) because I'm good, and I make them money. And I'm very comfortable with that arrangement.

Now, all that said, I am flexible for "true" future jobs. But the job needs to be of a decent size, and I also have to get some kind of committment. Four press releases later this year isn't going to lower my price any. But a 40 page website you are willing to book now with a deposit - yea, let's talk.

And you know, I think most businesses would be like that. If you *truly* have decent "future work", work you are willing to commit to now, sure, ask for a discount / terms. But if all you have is a vague promise of "more work", you have nothing, and it makes you look very unprofessional (and small time) to ask for a discount based on such.



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Toastmasters

Published 01-13-2008 , 2:15 PM

I joined Toastmasters a few months ago. For those who don't know what that is, it's an organization that centers on improving leadership and public speaking skills. I'm not all that into the leadership thing (not now, anyway), but I'm very interested in public speaking.

I've always been a willing public speaker, and have been told that I'm quite good at it - that I have "presence". I don't know how true that is, but I definitely do enjoy it, and don't shy away from it at all.

That said, I have found Toastmasters to be incredibly beneficial, and encourage all entrepreneurs to look into joining... no check that - just join ("look into" is quite the soft statement.... when someone says they'll "look into" something, they mean that they aren't doing it.)

I'll report back with more on Toastmasters as I progress, but so far, I have been very impressed, and feel that it has already helped me become a better person.



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Football

Published 01-23-2008 , 7:51 AM

Just want to comment on the football season and such. Very happy for the Giants - I'm a Jet fan first, but a NY fan second (well, technically both teams are in NJ), so if the Jets can't be in, hey, then go Giants!!

I also did decent in my fantasy leagues, although I failed to keep you updated throughout the year. I'm sure you're all really upset (trust me, there's nothing more boring than someone else's fantasy football team.) In fact, after a lackluster season, I actually stormed through the playoffs and made the final in my redraft league. I lost the final game by six points (curse you Jay Cutler), but still pocketed second place. But again, you probably don't care about that.

I'm sad that football is ending. One more game, then it's over. That's kind of the beauty of dynasty fantasy football - because you can trade players and draft picks, it keeps it going all year. If you are a football fan, and mourn football ending, you owe it to yourself to check out some dynasty FF - you'll probably like it. Maybe we'll get a few other writers / marketing guys and start a league - I'm game.



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Another old work thought

Published 01-28-2008 , 10:36 PM

"another old work thought" has been moved to the new blog at www.danfurmanonline.com



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Dan Furman
Professional Writer, Marketing Consultant, Business Author

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