WordCamp2008

I’m currently enjoying day two of WordCamp2008. The conference has been very informative and while other sites I have are already on WordPress, vsellis.com is not. So with that in mind, I’m going to take a short break from bloogging and get the new site up ASAP in word press.

If you see funky things with the site my apologies, it’ll be fully operational soon with lots of great new stuff.

If you aren’t familiar with WordPress, you’ll be getting an education soon. If you have any interest in blogging, or maintaining a website, even if it doesn’t have a blog, you’ll want to keep your eyes vsellis.com coming this week.

WordPress is free and very powerful.
Some large sites that run on WordPress

• Wall Street Journal
• New York Times
• Ford Motor Company
• 71 miles
• jobs.wordpress.net
• Borders Books
• iFnancial Times
• Rolling Stone Magazine
• People Magazine
• Several Yahoo Blogs
• About.com Blogs
• NASA
• cNet.com
• And a lot of others…

Marketing Ideas For Startup’s

Idea Lifecycle Pt. 3 - The Market

Up to this point we have still existed in a bit of a cloud. We had fun brainstorming an idea or two, and got through the work of defining that the idea we like best. In looking at the market we now get to figure out whether or not everyone else will take to our idea. “The Market” is really a broad concept and there are entire blogs dedicated to this, and no single entry can to it justice but we can get an idea of how this will go and what we are trying to accomplish.

Our goal is to gain a clear understanding of who we are targeting with our idea (i.e. who is likely to buy) and how much they will pay. Peripherally, though no less important, we need to understand how large that group of potential buyers is and what motivates them to give up their credit card numbers to us in exchange for whatever it is we are doing/creating.

We’re still researching a lot at this point but now we have to shift gears and get analytical about our research. When we finish the “Market” phase we should be able to attach concrete findings to the following attributes:

- Niche Definition: Who exactly is our market. This should be as highly specific as possible. e.g. “people who own a German Shepard” is a better mark to shoot for than “people who own a dog” because the latter will have lot more competition and noise in the market place. Go into extreme details to know your buyers, research demographics and buying trends among that demographic as much as possible. This will help you make more realistic projections.

- Market Size (how many buyers are in our market): The market needs to be big enough to be worthwhile but not so large that we are over generalizing. The danger in overgeneralizing is that you, as an individual entrepreneur will be competing with the big dogs of your area. But if your market is too small you won’t make any money.

- Projections: The bottom line is how many buyers times how much we make per sale = revenue. Keep in mind, only a percentage of the potential market will buy, and that is likely to be a small percentage. I usually expect a conversion rate of about 2% for online selling. I have seen much higher, though anything above 6% has been rare to my eyes with most at about 2.5% or below. I prefer to project conservatively though as accurately as possible. I have heard too many people say “even if only half the people who see my [whatever] buy, I’ll make $XYZ.” You won’t get a 50% conversion rate unless you only have two possible buyers and 1 of them buys. So be realistic here.

There are a lot of ways to map out your market. Once you have the basic market defined and know a bit more about your customers keep the following in mind as you move into the build phase:

- What up-sell opportunities can I attach to my idea?
- What partnerships or alliances can I form to help drive sales or add value?
- What extra information or services can I offer that will give me an excuse to keep in touch with my customers? This kind of follow up will lead to more sales later?

Think about different revenue streams you can attach and look at how others are doing it for examples. The easiest (and least expensive) customer to sell to is the one

(Idea Lifecycle Frameowrk, Phase 3. click to enlarge)

If you would like the original framework form with added detail request it here:

I’m taking a few days vacation and having a very important meeting with a Mouse through Sunday March 16th and won’t be posting during that time. If you are interested in what’s going on you can follow me on Twitter: http://twitter.com/vsellis

I’ll resume posting and the mini-course when I get back. Time for a break.

Have a great week.

Scott

Idea Lifecycle Pt. 2 - Define

I’ll start with a confession. “Define” is not my favorite part of the process because we jump from freely associating (fun) to analyzing our idea in much greater detail which feels more like work. Define is also tough because it is the first step at which an idea we think might be a winner can get turned on it’s head when we realize there are challenges we never dreamed making the idea infeasible based on our existing knowledge and experience. The result can often be frustration and disappointment. On the brighter side, ideas which hold up to the scrutiny of the “Define” phase already have a better chance of succeeding and we aren’t wasting time on ideas which are less likely to thrive. FYI, most ideas don’t get past “Define” so prepare to go through several of them.

I firmly believe that writing out a description of your idea is the most essential activity in this phase. By doing so you will force yourself to consider things which don’t come to mind if you are just “thinking” about it. Don’t just think about the idea and don’t be lazy, you must now write it out. I usually shoot for about two pages of text. Writing it out will also help you figure out how to explain your idea to other people clearly and concisely. If you can’t do that, you don’t understand it well enough yourself to move forward.

A more fun part of documenting your idea is mapping it out with a tool like MindJet MindManager. It’s easier because it allows us to think about things in a non-linear fashion which is far more natural. Once you are comfortable and efficient with using a tool like MindManager you might be able to eliminate the two pages of text above and loose a little of the work aspect. The mapping part can actually be fun.

Once we have a well documented idea, we now have to research it. I stick to the Internet and bookstores primarily but also actively talk to people I know or look for experts in the area whom I know or can figure out how to contact. You would be surprised how often people will happily talk to you about what they know, it usually makes them feel good though a word of caution: When you pen your first letter or email to them, do so thoughtfully, be brief and specific. Most of all be humble and polite. You are asking them for help on your idea after all. Don’t ramble on about your idea or they’ll know you are going to do the same if they talk with you on the phone or in person and probably won’t want to bother.

When you are doing your research make sure you log everything. Bookmark links, dog-ear pages of magazine or books, write down what you find, where you found it and if it’s a periodical include the date of the publication and volume/issue numbers and title/page of the article. There is nothing worse than loosing track of some really great info. If you interview someone record the conversation (with their permission) so you can more easily refer to it later. All the research can take time though it doesn’t necessarily have to. It really depends on who you already know, how easily you find references and how much you already know yourself. It can take from as little as a day to months. Either way, don’t skip this step! BTW, it is for occasions like this that real networking comes in handy.

At the end of “Define” you’ll have a good idea as to whether or not you have a good idea. If it starts to look like it might not be the right idea but you aren’t quite convinced either, look at it from a few different angles and start getting input on it. You don’t want to dismiss and idea too early but you don’t want to be married to a bad idea either. All of the research and thought can spring board a great idea forward much more quickly than if you just try to hack it; so instead “Define” it and be rewarded.

(Idea Lifecycle Frameowrk, Phase 2. click to enlarge)

If you would like the original framework form with added detail request it here:
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Idea Lifecycle Pt.1 - Discovery

I come up with new ideas almost everyday, many of them out of the blue, yet don’t get side tracked from the ideas I’m actively working on. Lets do a deeper dive to better understand where those ideas come from and how to keep focus. Along the way, be sure to capture your ideas in a way makes sense for you. I use a MindMap and, if I happen to be out and about, I’ll send my self an e-mail from my Blackberry so I don’t forget it later. I always put the word “idea” somewhere in the subject so that it’s easy to search for and I set up Gmail to automatically tag those emails with the label “idea”.

This should be the one of the most fun parts of the whole experience. Unfortunately, many fall into the trap of only generating ideas and never doing anything with them. We’re going to avoid that!

Now that you have a bucket or two to capture your ideas, let’s start generating:

1) Professional Experience: This one is often the most obvious place to look but our ideas can also seem the most daunting. We have all had a job though where we saw something could be improved upon? Usually a way of doing something but that idea for improvement can often lead to a product or service solution. It may also be that that process which needs improvement is symptomatic of a larger issue upon which an entire business can be built.
2) Groups You Are Involved With: What are their challenges? What are their needs? Odds are that lots of groups have similar needs so start small and grow.
3) Hobbies: This one is the most obvious, especially for all of the inventors out there
4) Other Interests: i.e. things you are interested in but which don’t really constitute a hobby.

All of these are great options because they come from places you already know something about. But even if you know about those areas, it can still be challenging to come up with initial ideas for products or services. Brainstorm away but use other resources to jump start your list by picking a topic and then:

1) Surf Google or Amazon and see what titles or ad’s pop up around your keywords
2) Actually go to the bookstore. What is on the magazine rack or in the section that addresses your area of interest.
3) Watch your reader or favorite web portal for new links related to your topic(s) of choice.
4) Talk to your friends, family co-workers with similar interests (again professional, hobbies, …) and listen to what are they talking about. Focus on paying attention to the needs they mention.
5) Make a note whenever you think to your self “I wish ….” there is probably an idea germinating in there.

If you are still having trouble, look at other ways to kick start your ideas here.

Once you have a good list you might want to Eliminate. At some point along the way you’ll come up with a few ideas that you’ll look back at as (probably) just nuts. I never throw them out but I do find a place to put them out of my sight so they aren’t a distraction. Still, keep them, they might spawn other ideas later which make more sense.

It may take the ideas a while to start flowing but eventually they will; and they might come at you faster than you can deal with them which is why it’s important to have a place prepared to capture your ideas and not loose them. If you hit a bump in the creative road don’t get frustrated. Rather view that as the right time to move on to the Define phase with the ideas you have.

(Idea Lifecycle Frameowrk, Phase 1. click to enlarge)

If you would like the original framework form with added detail request it here:

Idea Lifecycle - Intro

This week I have decided to do a “mini-course” on the lifecycle of an idea. Undoubtedly there are those for whom the lifecycle might look a little different but generally this should provide you with a framework for what the process really looks like. Each day we’ll do a deep dive into one of the following sections to better understand the process, pitfalls, activities and outcomes.

The sections are as follows:

1. Discovery : This is the fun part we all do. Throw it on the wall, see what sticks, brainstorming… Unfortunately with most people, ideas also die here.
2. Define: This is where the work begins and we really start to understand our idea. This is also be the first decision point where we decide to “go forward” or “kill it.”
3. The Market: Based on what we know to this point, is there even a market for our idea? If so we’ll gain a better understanding that market. Is it narrow or too broad? Viable? Transient?
4. Build: This includes design and prototyping and is the first point at which your idea will really be challenged. The Market step is tough but here you’ll find the kinks that make or break your idea. All the “obvious” things you didn’t think of will start to come out.
5. Test: We’ve done our homework and now have to find out if it’ll fly. Perhaps the most nerve racking part of the whole lifecycle because we’ve put in a lot of work and even if our market analysis looked positive we might find out it doesn’t sell. But keep in mind, it might also just be our approach to selling.
6. Monetize: We’ve built it, tested it and are ready to go full boar and make money. This is where it gets fun again!
7. Road Mapping, Improvement and Sustainability: Some would call this exit strategy but by default I don’t like to assume you are going to build your idea then try to “get away from it.” For the right price you might but that is really a different discussion.

This is going to be a fun week and as a part of this week we’re going to fill out the matrix below (click on it to make it bigger) as we go along to help clarify the process and let us know when to keep an idea or leave it, without the emotional confusion that is often a part of making those tough decisions.

If you would like the original framework form with added detail request it here:
#SignUp .signupframe {<br /> border: 1px solid #000000;<br /> background: #ffffff;<br /> color: #226699;<br /> font-family: Arial, Helvetica, sans-serif;<br />}<br />