The Underdogs Solution How To Break Into And Conquer Any Industry Online

Writen by Simit Patel

While the Internet has created entrepreneurial opportunities for the likes of both Fortune 500 companies and sole proprietors working out of their basement, the fundamental entrepreneurial dilemma still remains: how can entrepreneurs break into an already established market?

In this article, we'll outline the steps that entrepreneurs need to follow to break into and conquer any industry online. To reinforce the power of this formula, we'll use industry giants Google and Apple as case studies.

Step #1: Identify The Reigning Champ.

If you're going to break in and conquer an industry, you need to know who you're looking to take it from. Don't be afraid to aim for the biggest champion; if you don't you'll never get there.

Example: Entrepreneurs who wanted to take over the search market would identify Google as the reigning champ. Likewise, entrepreneurs looking to conquer the digital music market would look to Apple as the current market leader.

Step #2: Identify the Champ's Powers and Priorities.

To understand how to beat the champ, you have to first understand how the champ works. To do this, entrepreneurs need to focus on the reigning champion's powers and priorities.

Powers are what resources and skills the firm has. A firm's powers are critical to understanding how the firm gained dominance in the first place. Note that many firms -- especially those that have a very strong foothold on an industry -- have multiple powers. To help keep things simple, focus on identifying the champ's most important powers.

Priorities are what values the firm has that dictate how it proceeds. Priorities are generally closely associated with how the company earns revenues: whatever it does to earn revenue is a priority, as that's what allows the company to stay in business and grow.

Below is a look at the powers and priorities of Google and Apple.

Google Powers: Their biggest skill is the amount of text-based information they have in their database. Their specialty is delivering breadth of information so that its users can quickly find even the most obscure facts.

Priorities: How does Google make its money? Primarily by people clicking on the sponsored links on its search page. So, getting users to click on ads so that advertisers can pay them is a top priority for Google.

Apple Powers: With respect to digital music, Apple's key power is the iPod. The iPod far and away is the firm's competitive advantage, and they have demonstrated skill in creating portable music devices that have mass appeal.

Priorities: Just as Apple's key power is its iPod and its ability to make portable music hardware, it's key priorities are selling those devices. While the firm does make money selling mp3s, the true cash cow for its digital music division is the mp3 player. So the firm's priority is to make and sell hardware for digital music.

Step #3: Identify the Right Power for You.

Even if you are immensely talented and sure of the fact that you have far and away the best product, success is unlikely if you are trying to build your business around the same powers that the current champ wields. If you try to develop the same powers the champ has, you'll be competing with them directly on many fronts -- not just on acquiring customers, but also on dealing with suppliers, marketing venues, and employees. Because of this, you should place a big emphasis on cultivating powers that are different than what the champ has. In fact, the ideal scenario is to cultivate powers that are complementary to the current champ's powers so that you can partner with them. Google itself employed this strategy as they partnered with Yahoo! -- the champ Google was looking to dethrone -- to power Yahoo! search results from October 2002 to February of 2004. This partnership allowed Google, the underdog at the time, an ability to gain a critical partnership that allowed the firm to expand and eventually overcome the champion they initially befriended.

Example: Google's primary power is its ability to deliver text-based information. But what about non-text based information, like audio and video files? Search engines like AudioFind, SingingFish, and PicSearch are all engines that are cultivating powers in non-text search.

Likewise, Apple's primary power is hardware. An underdog looking to take down Apple should aspire to cultivate different powers, such as strong partnerships with music labels to deliver content, and/or flexible programs that provide users with more of the kind of music they are looking for. Rhapsody, Napster, and Yahoo! are some firms that have wisely taken this approach.

Step #4: Have Different Priorities.

Just as you want to have complementary powers, you can also benefit from having different priorities. The rationale for having different priorities is the same as why different powers are needed: you want to avoid competing directly with the reigning champ as much as possible. Essentially, the idea is that it's easier and far more feasible for an underdog to defeat the champ if he/she takes a "back door" approach rather than taking on the champ head on. What you're really competing for is not the powers or priorities, but rather the attention of the end user. In other words, to beat Apple at the digital music game you don't need to roll out a better mp3 player; rather, you need to find a more compelling way to get the end user -- who, in Apple's case, is a consumer of digital music -- to give you his/her attention.

Example: Snap.com, an underdog search engine looking to take down Google, has established different priorities by creating a new way that they can attract revenue from advertisers. Instead of getting paid per click from a sponsored listing on their search results page, they plan on getting paid when the user actually completes an action on an advertiser's site (such as making a purchase). This will cause the company to prioritize getting users to complete actions on their advertisers site -- not just getting them to click on an ad.

Likewise, Napster plans on taking the digital music market not by prioritizing the sale of hardware, but rather by making the sale of digital music a priority.

Step #5: Attack The Champ's Powers.

The way to attack the champ's powers is NOT by trying to be better than the champ at the champ's own powers. Instead, the idea is to devalue the champ's powers in the mind of the end user, and thus shift the basis of competition in the market to what your power is.

How can this be done? The most effective way to do this is to imitate the champ's power in the cheapest way possible. If you compete on price, you are bound to attract some clients -- perhaps those who do not value the service much at all or those that simply cannot afford it. In this way, you can attract some of the champ's audience, and convert them into utilizing the powers that you have to offer.

Example: Could Napster benefit by partnering with a low-cost mp3 manufacturer and distributing an mp3 player as cheaply as possible? In doing so, it could help to commoditize mp3 players, and thus shift the basis of competition in the digital music market back to content.

The search engine industry is slightly different, but the idea is still very much applicable. Search engines often sell their technology to web portals who need to offer search to their users; as a result, an underdog search engine could freely distribute a text-based search engine to attack Google's power.

The Tough Part: Identifying Powers and Priorities

Clearly, this five step formula to success is fairly simple and straightforward. The true challenge is in correctly assessing what the reigning champ's powers and priorities are, and then coming up with viable powers and priorities of your own that will help to debunk the champ. Once that can be done, knocking off the champ will be surprisingly easy.

Simit Patel is the Managing Director of The ActoNetwork, a company devoted to helping small businesses succeed on the web. The ActoNetwork publishes a free 102 page Internet Marketing eBook and has a free Internet Marketing Workshop for online entrepreneurs.

Incorporating Investor Feedback Into Your Business Plan

Writen by Dave Lavinsky

Investors, like the rest of us, have different tastes. One investor may love a concept and/or business plan while the next may hate both. It is important to understand this as business plans are working documents and are always undergoing iterations.

Management teams must not rush to incorporate each potential investor's comments. Instead, have several investors, partners and other business colleagues review the plan and provide feedback. Then incorporate common concerns and probe other comments to determine if they are valid.

Always try to understand the rationale behind an investor's comments. For instance, an investor may poke holes in a business plan if it doesn't have enough funds to fully fund the opportunity. In this case, the investor's criticism is solely for them to save face.

However, if you are hearing the same feedback from multiple investors, it is probably valid. In such cases, be humble. Tell investors that you appreciate their feedback and modify your strategy and plan appropriately. You may then be able to re-approach these investors with great success.

Many investors have significant operating and investing experience and can quickly and expertly find potential flaws in a business plan. Seek out investors who have such experience, and be open to their suggestions. Just don't take one point of feedback and blindly follow the advice. It is also important to note that even the most successful and largest public companies have Boards that provide similar feedback and advice, so don't take criticism and feedback as a sign that something is wrong with your venture. Rather, use it as a launching pad for an even stronger business.

Since its inception, Business Plans by Growthink has developed over 200 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 visit our venture capital placement site at GT Venture Capital.

Whats The Point Why Hire Consultants And How Can You Get The Best Out Of Them

Writen by Karen Otazo

Moving from organizational life to consulting life didn't seem like a big deal to me. I'd been doing internal consulting for more than a decade. I'd been bringing consultants into my organisation as an "extra pair of hands" or as experts to present programs or coach executives. What I found as an internal customer was that hiring a consultant can be tricky. Through a trial and error process of discovery I found that the nature of the consulting relationship is the key to whether the company is going to get what it needs or throw money down a consulting black hole. Although a company is "borrowing" talent, not "buying" it the way they do when they hire someone, it's still a major financial and time commitment. I spent a lot of time managing consultants. I figured "What's the point?" if I didn't get the best out of them. And .for the consultant, the consulting assignment has both a financial and reputational impact. Why not make this arrangement a win-win?

To do that I found we had to learn to trust each other. The approach to low trust by the organization is often a "taxi driver" approach. The consultant is paid by the hour or day. This is a contractual relationship versus a relational contract. The consultant does what he or she is told. The good news is that this is a good way to use "one-trick ponies." When you have a speaker who can do a great presentation about what they know best this is the best way to use them. If you want any in-depth work from a consultant it's best to try the partnering approach. As one client said "We are depending on you to get our bench-strength ready for their next jobs. His approach was to put me into a relational contract where I was committed to his company's expected outcomes.

"Taxi driver" approach or partnering approach

One of the nicest compliments I ever got was "You don't think like a consultant." I realised that I see myself as partnering with my clients, almost as if I become part of their organisation for a period of time. When clients want to hire me by the hour, or minutes, I find it very strange. At one point, I was contracting with a prospective client who came out of a supply chain background. He spent the contracting period penny pinching me in all the aspects of the contract. For me, he was concentrating on the wrong aspects. When I tried to concentrate on the outcomes rather than the specifics of the process, he just didn't "get it." He was so used to taking farthings off widgets that he just couldn't focus on the end results. The "taxi driver" approach didn't engender enough trust for me to continue the contracting. I pulled myself out of the process.

I try not to work like a "taxi driver." I have found that thinking of consulting as day labour gets me, and other consultants too , to act that way. I prefer thinking like a partner in the project's success. It's vital for a company to think this way too. Partnering is a trust builder. There is a mutual commitment to success.

Consultant partnering trust occurs when there is both personal and professional trust. Personal trust is each party doing what they say they'll do, when they say they'll do it. Professional trust is demonstrating the talent, expertise and an understanding of the consultant's craft and of human behaviour that enables a consulting relationship to work.

Create a contractual relationship or a relational contract?

"Relationships of trust depend on our willingness to look not only to our own interests, but also the interests of other." Peter Farquharson, Early 20th century English cricketer

Even if you're hiring day labourers, a company wants its money's worth or more. Although many consultants are hired on a short time scale, their organisational "fit" is essential. One of the best ways to ensure fit is by knowing the company and its needs as well as the needs of the project or intervention that the company needs. When a company insists on a detailed contract they often get just what they negotiated and nothing more. My belief is that it's vital to keep your "eyes on the prize." What is it that the company and the specific client(s) want to get out of the relationship? Contracting is where you ensure that the commitment and professional expertise are there. There's an old American saying that could apply to contracting, "Good fences make good neighbours." By setting up the parameters in contracting the participants are then free to do more but not less.

It is vital that those who are doing the consulting be part of the contracting phase. If the person who initiates the engagement is the "finder" but doesn't do the work it may not be a good idea. That also goes for having a "minder" and a bunch of "grinders" whom you don't know well. If you contract with the experienced folks there is not enough pay-off from the rookies. It's vital that you get to know the consultant(s) you're using before, during and after the consulting engagement. Though the consultant(s) may not be employees they should be treated as if they are personally responsible. As an independent consultant, and previously as a corporate buyer of consulting services, I have found that independents are often the best choices. There have been at least a dozen situations when I've been called in after someone from a consulting firm hasn't delivered what was expected. Don't forget that you are hiring the person and not the company.

The way that a consultant (firm) approaches contracting is revealing. Are they happy to spend as much time as it takes in this phase? The time that it takes to contract and work with the company representative who is doing the contract is part of the big "bucks" that consultants charge. Part of the contracting should be a negotiated "package", or programme price. Part of the package price is that the consultant should not be charging for every small cost like taxi fares for local work.

The package should include written information that is necessary for the process to work. That might mean something in writing that can serve as a roadmap for clients to follow as they work with consultant. A report at the end of the consulting process is not one of the worthwhile things to pay for. When the consultant has left, the report is rarely of use. It may feel good to get one but often goes on a shelf after the consulting engagement is finished.

Most of all, I believe in generosity of spirit on the part of the consultant and the company. That means giving more than the contract stipulates when it's needed. That means consultants occasionally giving more consulting time, without extra fees, for those who need it and the company staying supportive and flexible with the needs of the consultant. In other words, the parties involved should be responsive to the other's needs. Over time, this kind of attitude breeds trust.

Being a consultant is a bit like being an employee for a period of time. Just the way employees "hold" the needs of their job and the needs of their company in their consciousness, an excellent consultant "holds" clients and their needs and the work in their thinking time outside of the actual assignment time. I am constantly surprised when a client says that a workshop I gave was only six hours so they that they should not have to pay for the entire day of eight hours. How amazing is that? It may have taken days to prepare the work which may, or may not have been remunerated. Moreover, when a consultant is at one company for six hours there is no way that two more hours can be squeezed into that day. That is one of the reasons why daily fees don't make sense for excellent work. The other is the thinking time that involves "holding" the client in your thoughts and plans.

Be careful with one-trick ponies and "consultant creep"

"The people I distrust most are those who want to improve our lives but have only one course of action." Frank Herbert , 20th century science fiction author

A company usually hires consultants for their expertise. In their area of expertise they need to be role models. I once hired a consultant who was superb at educating and empowering personal assistants to maximise their potential. When she was asked by an executive to work out a conflict among a group of personal assistants she overstepped her expertise and failed miserably. It's not uncommon for this kind of thing to happen since expertise is often specialised.

It's also the responsibility of the consultant to keep the company representative informed of every potential consulting request that the consultant gets to do additional consulting. Someone in the company needs to keep track to avoid "consultant creep," or consultants running amok around the organisation. I find that someone to vet each request, and the appropriateness of the consultant(s) for the request, is the only way to ensure the trust that you have the right person in place.

Trust comes from bringing in consultants who don't come in with a prepared idea of the issue and the solution. Consulting companies that have "models" that they use can be guilty of this approach.

Consultants need guts rather than glory

It's too easy for consultants to be sycophants rather than speak what they believe needs to be said to individuals of power and authority. This is not the place where executives should be told what they want to hear rather than what they need to hear and learn. It is important that a consultant, beyond an "extra pair of hands," be responsible for moving individuals, or the culture, to take action. The trick is that the "push" needs to be strong enough to show action and gentle enough not to cause reactive "push back," or organisational resistance. This is a major area of trust!

On the whole, mature consultants who are beyond wanting their own days of personal glory make some of the best choices. If the consulting work isn't satisfactory it's time to give the consultant(s) feedback. The way that they accept and respond to feedback without defending tells you a lot about their professional trust. I love adapting as a consultant. It's wonderful to get feedback and have a chance to adapt to the needs of the company and the individual(s) involved.

Consultants who need a lot of kudos and strokes can be trouble. A consultant can be a bit like a catalyst. They can have enormous impact for positive change yet not be part of the end result. If they need the glory they are not mature enough for this kind or work.

See more about Dr. Karen Otazo at the following
http://www.globalleadershipnetwork.com
http://www.otazo.com - Executive Coaching

Dr Otazo is an author, consultant and global executive coach. She worked in multi-nationals in US, China, Indonesia, India, France. http://www.globalleadershipnetwork.com http://www.otazo.com

Office Space

Writen by Kent Pinkerton

Many of us work in small cubicles, with nothing to look at but our computer monitors and piles of papers scuttled on our desk. Turning back, we see our colleagues scooped up the same way and facing the other side of the wall. Drab working conditions create stale minds and people get suffocated in their offices. Well, if you are not one of them, you are very lucky.

However, there are simple ways to beautify office spaces, making your working hours more pleasant and bearable. A flower or a plant on your desk will be a visual relaxation from the monitor radiation. Placing the desk near a window or a door, so that you face an opening will also refresh your tired eyes and brain. Add a picture or painting to this, and you will have a good office space.

If you are a company looking for new office space, you need to plan your requirements before shopping around for sites. Apart from simple additions like those mentioned above, you need to determine the working area you need, the number of offices, the seating types and arrangements for your employees, and amenities like lunch rooms, coffee bars, etc. that you would like to have in your office. Choose and plan your requirements to suit your business purposes. If you are a customer service company, each employee should have office space that facilitates easy and friendly interactions with customers. But if your company is basically running projects, cubicles for employees are a better option than elaborate office spaces.

Before you start planning, visit sample office spaces and search the Internet for space calculators and other requirements. Or contact professional office planners and decorators who will help you set up your office spaces to suit your business needs.

Office Space provides detailed information on Office Space, Corporate Office Space, Temporary Office Space, Office Space For Lease and more. Office Space is affiliated with Discount Office Supplies.

How To Avoid Cashflow Problems

Writen by V Selman

Cashflow problems are the main reason why more than 70% of UK businesses go under in their first year. Although this statistic is fairly shocking, the reassuring fact is that there is a lot that companies can do to manage their cashflow effectively.

We have put together our top tips to help you avoid cashflow problems and become a business success story.

1. Always run credit checks on companies that you do business with

Many people forget or think that it's not important to vet companies before doing business with them. However, doing so is an important method of avoiding cashflow related problems further down the road.

If you have not checked up on a potential new client, you expose yourself to the risk of not being paid.

There are a number of ways to run credit checks such as ordering an online credit rating from credit reference agencies or checking your potential customer's payment record.

2. Encourage prompt payment

You will have to pay your suppliers even if you have not been paid by your customers. Encouraging your customers to pay you promptly is therefore an effective way to avoid cashflow problems.

Try offering favourable payment terms to people who pay early and refer to the Late Payment of Commercial Debts (Interest) Act of 1998 on your invoices. This legislation allows companies to charge interest on overdue amounts.

3. Manage your budget carefully

It might sound obvious but good budget management is a key step to good cashflow management. Do not be tempted to spend money on promotional activity that has not been accounted for in your marketing plan.

Before you do allocate funds, make sure you know what the return on investment is likely to be and ensure that you can afford to spend the money in question.

4. Manage your accounts carefully

Do you know who owes you what and when payment is due? Keeping an invoice book detailing when invoices were sent out and to whom, as well when they were paid is a simple yet effective way of keeping on top of your finances and avoiding cashflow problems.

On Stop runs a unique service which allows its members to check potential customers' payment record and encourage prompt payment in order to help them avoid cashflow problems

Envelope Printing

Writen by Mic Pedretti

Practical mailing solutions for home and business are a must for just about all of us. Very few of us enjoy to hand write envelopes when it comes to bill paying time. Even fewer when we are business owners. Worrying if addresses are written legibly and correctly can waste precious time better spent on other things. However with a simple computer and a printer with ink, the process can become much more simplified and accurate. A practical and economical application for envelope printing can be easily utilized by any business owner, big or small.

Any kind of business demands many mailings for paychecks, bills, catalogs, etc. The most realistic manner of accomplishing this drawn out process can be as simple as printing envelopes and addresses from a computer. Using compatible software (i.e., Microsoft Outlook and Microsoft Word) an entire database of names and addresses can be printed onto envelopes and even mailings. The most commonly known software application to accomplish this is Microsoft Word with a feature known as Mail Merge. The mail merge function can work in conjunction with Microsoft Outlook, or with Microsoft Access to draw out the names and addresses of the clients and/or employees to be sent to. Using this software in the proper process of Mail Merge, hundreds, even thousands of preprinted envelopes can be produced within mere minutes, as opposed to hours when done by hand. The usefulness of printed envelopes does not stop here however, there is still a practical solution for the average home user as well.

Any average person has a range of bills to pay, and always plenty of envelopes to address, mostly by hand. This process involves looking up addresses, writing checks, addressing envelopes by hand, and double checking to make sure the information on the envelope is accurate and legible. The solution to a chunk of these problems, is the same for the average home user as it is for the average business user. With the simple process of mail merge, and stored list of commonly paid bills an average person no longer has to wonder or double check to see that the envelopes he or she has written are accurate and legible. Rather they would have the assurance that they are. To cut down the time even more, the average home user could consider using a check-writing program such as VersaCheck, or competitors to write his/her checks for them. With these simple processes, any user can simplify their lives and wind up with more free time to do what they love.

Clearly the advantage goes to the technology to save time and money for any user, either big or small. With the confidence that bills can be paid on time, and never having to double check for accuracy, piece of mind comes standard. The only worries these confident users have are if they have the necessary amount of envelopes and ink in their printer to finish the job. The only question to remain in anyone's mind is "Why didn't I do this much sooner?"

Our Printing Directory is dedicated to the printing industry. Find more information and other printing topics on our Envelope Printing resource page.

Machinery Vibration Warning Lights

Writen by Lance Winslow

Machinery preventative maintenance is paramount in today's factory. A machine going down can be catastrophic to the assembly line and many times specialized parts are not even available. Often such catastrophic failure or damage to a piece of machinery can be avoided thru early warning detection of the problem. Sometimes sensors do no pick up every problem or fail. We always hear about faulty lights in airliners when the aircraft has to return only to find out that a light was out. In machinery some warning lights go on, if their light goes out and others show nothing and then when there is a problem no light?

Most machinery give off tell tale signs premature of the failure whether or not a light is warning available or not. A really good mechanic, ship engine room technician or factory maintenance expert can tell when things are not running right, but not all. I propose a vibrational warning system, either with an automatic shut off or a light, which shines into the operations room like a beam from a pin-light night vision pointer or construction high tech surveying level. This can be done by shining the beam onto a mirror connected to the warning light, which is bolted to the base of the machine. By early detection we can prevent a bad mounting bolt, or internal problem causing a vibration from destroying bearings, internal or exterior parts by an automatic shut down and/or a warning light alerting the team that there is a major problem.

Machinery of this type is much to expensive to risk to a faulty switch or power problem so the warning light should be lighted using electromagnetic induction technology to charge a capacitor instead of the lights working off a battery or power source.

Currently there are some nifty micro-flashlights being used which you can buy which use a similar technique and are available thanks to the Everlite Flashlight technology research lab. These smaller flashlights work by shaking them for about thirty seconds and shine for about 6 minutes and they shine quite bright since they use a very bright LED light. Here is a link to this home use flashlight:

http://demo.physics.uiuc.edu/LectDemo/scripts/demo_descript.idc?DemoID=1138

http://www.modernoutpost.com/gear/details/ee_shakelight.html

Such vibrational warning lights can be used to monitor from long distances, whether the equipment be a short or long distance from view. Additionally these warnings systems have hundreds of application for portable system where mainstream power grid energy is not available. Think on it.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/