Expert Advice

See questions and answers from our experts:

Nicholas J. Webb - Our very own "idea analyzer"

Ruth Luban - A fellow corporate refugee

Stan Richelson - Our money master

Terence Brown - Get the European perspective

Joanne Eglash - She wrote the book on writing an award-winning business plan, literally!

Linda Ford - "Management Team Maestro"

Wendy Haig - Our "Turnaround Business Strategy" expert

Jacqueline Kessel - Our "Legal Beagle"

Dear Nicholas Webb:
All my life I have been creative and I would very much like to turn inventing into a profession. I am looking for a mentor in this arena. Would you consider giving me feedback on ideas? Thank you in advance for any and all assistance.

Answer: I would suggest getting involved with a local inventor group you can find a list at www.uiausa.com also download my free workbook and reference book at www.healthcareinventions.com or just email me with any specific questions. Good luck.

Dear Nicholas Webb:
I want to describe my idea(s) for your critique, but first... I'd like to know what protective measures can I take before divulging the details.

Answer: The only safe way to disclose an idea is to first protect it by filing a US Patent. Short of that you can deploy a NDA agreement but most company will not execute an NDA unless you are a client. I would suggest you download my free workbook at www.healthcareinventions.com you can also get a half hour free Patent Lawyer consultation through that web site. Good Luck

Dear Nicholas Webb:
For the last ten years, I have been making clothing for several retail brands in Canada and the U.S..The prices the brands charge for their goods is crazy and the way some treat the manufacturers is not very impressive.

I have always made some clothing of my own and sold it to friends, family. What would be the best avenue to sell my product without going to retail stores. Mail order i.e internet seems to be the answer although it would probably take forever, right?

Answer: Try to find a "Carve Out" and start by selling to that niche i.e. swimwear shops gen X targeted or others. Also start hitting the meeting such as the Action Sport shows, gift shows etc. Most importantly write a business and marketing plan this will force you to ask the correct questions. The bottom line, identify your target market, find the channels and your off. Good Luck!

Dear Nicholas Webb:
I designed & patented a new type of shaft-less reelstand for the unwinding of reels of materials, principally paper & plastics. On the strength of the patents pending and future potential, a private investor put money up to enable me to start the business.

The reelstand conforms to the current trend to eliminate the handling of heavy reel support shafts. It is cheaper to produce and more versatile than existing competitive designs.

It has been noted in the industry as a significant innovation. It was exhibited at the International Converting Exhibition (ICE 2001) in Amsterdam and was a star of the show. The editor of the UK Converter magazine in January reported that I was a true innovator if ever there was one. We have numerous enquiries for many stands and our first order is all but signed, from a major international converter.

BUT....we've run out of money. We must now look to either sell the patent, (PCT search very favourable, UK patent past publication & awaiting grant), or get an OEM to take over part of the business & work together to exploit the reelstands potential.

How can we maximise the 'potential' of the reelstand? IE, to become established we need working references. To establish references we need time. To buy the time we need money. To get the money we need to sell the patent. To sell the patent at this stage with no references and little income, companies will pay zilch, prefering to wait until we liquidate & they can get it for buttons.

Any ideas about how to break the deadlock? FAST! All ideas gratefully received.

Answer: Your largest market for converters is in the US do you have US patents? My suggestion given your cash problem is to contact a list broker and secure a list of all companies that have synergistic products. Address a "Technological Partnership Offering" letter proposing to use there marketing channels to launch your product. Short of the postage cost this is a fast way to kick start revenue. Given the and press coverage of your product I am not so sure that I would worry about reference accounts. Someone in the converting business should see the products value. Good Luck!

Dear Nicholas Webb:
Q: Personal Page companies are quite abundant; Tripod, HomeStead, GeoCities, and Angelfire to name a few. These sites allow people to create a page concerning personal interests, achievments and photos. However, there are very few places where one can build a page to honor a third party.

One year ago I conceived a network of sites whereby people could express admiration for others at URL's ranging from WorldsBestMom.com to WorldsBestBoss.com to WorldsBestGirlfriend.com and so on. For example, on their anniversary, Bryn can create a page for Herman at www.worldsbesthusband.com/is/herman. An automated e-mail is sent to Herman containing a link to his special page created by Bryn. Both parties receive positive impact.

My question: is this a viable project? I have "invested" over $55,000 and am at a loss as to why HomeStead or GeoCities would not demonstrate any interest whatsoever. How does a small start-up get their attention without investing huge volumes of money into marketing?

I would appreciate you looking over the site (www.worldsbestcompany.com) and making any recommendations.

Best regards and congrats at your new post with Startupfailures.com.

Answer: First of all I think you have a great concept. Remember that only about 2% of the 2000 product ideas filed each week with the US Patent office ever make it to market. The key is to clearly identify the three "Drucker" business navigators 1.)What is my business 2.)Who are my customers and 3.)What do my customers value. This may sound obvious but most start-up are not able to answer these basic questions. If I can be of any further help feel free to call me. Good Luck

Dear Nicholas Webb:
Mr. Webb I believe that my company Imageman Co. holds the seed the will take the exploding Gaming industry to the next level. I would like to know if I should patent my idea before I present it to anyone. Also how would I get a big company like Microsoft and Sun Microsystems to listen to my Idea. Thank You

Answer: You should check with a Patent Lawyer to protect all IP related issues pertaining to your idea. Marc Kaufman, Esq. provides a free initial consultation at no charge. You can call me for his contact info. Regarding getting the attention of big companies. Remember companies do not want IDEAS they want solutions to problems and .....you guessed it more profit, so remember to speak there language. Good luck

Dear Nicholas Webb:
Q: I think I have a great idea, but I know every other entrepreneur does as well. My idea is a B to C company for Europe, but nobody wants to hear about B to C anymore. How should I analyze my idea to see if it has any merits?

Answer: The bottom line is does your business idea deliver "Meaningful Net Customer Value" and will that value roundup well to the competitive field. The new market opportunity is a value race and the companies that deliver the most value at the lowest cost will win, Good Luck!

Dear Ruth,
Where is there GRANT money for true private practice startups?

Angels require abt. 2 yrs. in practice. Many others want to make loans; however, after spending ALL adult life paying back for degrees and medical expenses, I want to find the real money that says "We have faith in you!" Even the 1 business plan contest was expired by the time I received the application. Help!

Answer: By "true private practice," are you describing a medical or legal practice (for which banks do lend) or a counseling/consulting practice? I'm not aware of grants for private practices of any kind. In my personal experience, each time I launched a private counseling/consulting practice, I "bootstrapped" it by beginning part-time, in a home-based or sublet office, until the practice built to a level of self-sustenance. Every private practitioner I know has begun this way, through trades, guerilla-marketing, and dipping into savings rather than selling a business plan. I agree that you're best off not incurring further debt. Rather, begin your practice on a part-time basis while deriving income from something stable. Gradually, you'll build to a fulltime endeavor, debt-free.

Dear Ruth:
My name is John, I'm in the high tech industry. I was laid off from my job and now beginning a new career as an entrepreneur with two other partners. Its a first for me and its scares the heck out of me. What if it doesn't work out? What about the money issue (getting married next year)? Any suggestions?

Answer: My hearty congratulations to you on taking the plunge toward self-employment following your painful layoff. As one who has primarily been entrepreneurial and self-employed throughout my career, I can assure you that your fears are totally normal. I actually believe they are, in many ways, essential to the process of becoming successful. Please take a look at my book ("Are You a Corporate Refugee?") for a more in-depth discussion of the emotional and psychological underpinnings of job loss so you can see how you've gone from corporate refugee to embarking on a kind of hero's journey. If you keep that big-picture view of what you're doing, you will thrive in your new venture. The dangers come when you contract in fear (e.g., about money, about the unknown future, etc.). I presume you did your homework before signing on for this project, so your work now is to hold onto the big picture, to your sense of "calling" about this venture, and to stay the course!

Dear Ruth:
I have strong background in computer software development and am running my own small consulting business for years. Do you think a career move into a dot-com start-up management would be a serious challenge for me?

Answer: I can tell you that many dot-com's are seen these days as more risky than ever, particularly if you're giving up a seasoned small business of your own. Please take a look at the "Wilderness" chapter of my book, which is filled with creative self-assessments that might help you identify the direction you most want right now. Also, please do your homework on the dot-com you're considering, as well as the industry as a whole that the startup serves. Don't jump in without considerable research.

Dear Ruth:
I was just informed by my son that his global B2B dot com company is condensing their operations in Europe. He was with them 9 months and was Director of U.S. Sales earning about $150,000. He was the third employee and virtually helped develop and build the business to what it is today. They have offered 6 weeks of salary as compensation for giving him almost no warning that his operation was to be shut down. He says that they should be offering between 3-6 months salary. What should a decent package consist of and what type of questions should he be asking? What recourse does he have it they play hardball? Thanks for your consideration.

Answer: My heart goes out to your son as he experiences what so many other "corporate refugees" have been going through: precipitous job loss as the result of a company's bottom-line needs-- his accomplishments and sacrifices for the company notwithstanding. Please assure him that it's not personal, even though it feels that way, and that before he signs any kind of severance or separation agreement, he should do his homework as to his rights. The best place to begin is the nonprofit National Employee Rights Institute online at www.nerinet.org, or by phone at (800) HOW-NERI. This organization puts out an excellent guidebook titled "Job Rights and Survival Strategies: A Handbook for Terminated Employees" that your son can order. After determining his best exit strategy, I would urge your son to take some time off for rest, soul-searching as to what he truly wants to do next, and deliberate recovery from the shock and disorientation that come with this type of loss. He's very employable, and might actually get job offers immediately, so I hope he takes a bit of time in between corporate "homes."

Dear Stan:
Do you think it is a good idea to not search for vc funding if a company can remain profitable, but small?

Answer: This is a great question. All startups should not seek VC money.

There are many reasons for this conclusion. Most importantly, only a small percentage of startups fit the model that VCs are looking for including:
* Rapid growth.
* Within a short period of time.
* In a market that is huge.
* With potential revenues of $100 million within 5 years.

A good small business may be a gem worth keeping private, particularly if it does not have the potential to be huge. Small may be beautiful.

One of the reasons to raise VC money is to fund losses. If you have profits, you have already reached a key point.

One final point. VC money is very expensive and puts many constraints on a company and its management.

Dear Dr. Brown:
What should a guy do when he has developed a business model and plan then everyone that gets involved with the business attempts to steal the entire business?

The business model/plan must be good or the caliber of people that agreed to join the company for a very small piece of the stock would not have given it a second look and most definitely would attempt to steal it. My problem is all of these people are either retired CEO's or founders of large well-known companies in the payment processing and payment fraud prevention industry. Having the creditability that hey have in the business world has made quite difficult for me to maintain my ownership of the I.P. attorneys fees are about to get quite expensive.

I was wondering if you would have any words of wisdom for me?

Answer: You have a big problem.

You have done the correct thing by surrounding yourself with high caliber and knowledgeable people. However, greed and dishonesty are your bigger problems. While you may be able to come of with some short term or long term solutions to "protect" the business, it seems that you are in bed with some dishonest and greedy people. It is ironic that they are in the fraud industry.

If you are getting this activity now, can you imagine what will happen when the business actually starts to generate revenue? You need to try to extract yourself from these people. They will be more trouble then they are worth. You can always fine honest, knowledgeable people. Good Luck!

Dear Dr. Brown:
We are a Dutch startup company specialized in natural language technology. We make products to help people find information in a better way, by allowing them to use their own language. Our products take care of that language and match requests with answers and solutions in a clever way. Within 2 years we can service people in 25 languages. We strongly focus on the knowledge management software industry and internet companies, to help them get multilingual.

We are doing quite fine so far in Europe. I would like to get marketing & sales alliances in the USA helping us in this specific area. Where do I start? Thanks in advance.

Answer: Sounds like a great development. I think the most logical place to look is in the knowledge management industry. Not only is there a knowledge management magazine there are countless information sites online. These people who are already in the business and in the part you want to enter would be the best to partner with. I mean who else would you partner with, someone outside the industry?

The second place to look is with the your current European partners. How many of them are doing business in the US.? Do they have US subsidiaries? Try to piggyback back on their success. Good luck.

Dear Dr. Browne:
In your experience, is it true that too many start-ups relied on the Internet as a sole selling and customer contact channel? Is it true that, here in Europe, many customers wanted to talk to someone when it came to making a buying decision and that dot-coms offering phone contact had an advantage? I'd be very grateful for your views on this.
-Stephen Tierney, Customer Contact Solutions Magazine

Answer: First, it depends. It depends on the business model of the business. There are certainly many Net based business that rely solely on the Net for their selling and customer contact and do very well.. This may be perfectly fine for some businesses. On the other hand, it is also true that by expanding offline many firm create a hard to beat combination. For example, most customer questions can be handled online, but some people just like the fact that they can speak to someone on the phone. It be may a trust issue with them.

Regardless, the firms that allow for real time phone based customer service may have an advantage. Firms that take checks in addition to credit cards, may also have an advantage. But also keep in mind that these options can be costly. As a result, many firms cost and revenue structure does not allow for them. In sum, a firm that offers multiple way of customer contact, multiple ways to pay, etc. will have a competitive advantage. This is why many so called click and mortar firms are thriving now.

Dear Dr. Brown:
Which methods of evaluations does venture capitalist make to choose the best project? If you can indicate me some articles, magazines, books I'll be very happy

Answer: An interesting question. Venture capitalist use a wide range of methods to evaluate business proposals; however, they all come down to one things, the likelihood that the new venture will be successful enough that they (the VC's) earn a certain rate of return. The VC does not have to believe that every venture is going to be widely successful, especially given that he knows most will fail. But he must earn a certain rate of return on his portfolio of investments. More specifically, he must have a strong belief that when added to his other investments that the total portfolio will meet his financial objectives.

How does he do this? Francesa, there are plenty of articles online. Just search for venture capital or business plans. But that is not the most important thing you need to learn.

Most of the thousands of private capital sources online specifically state what they are looking for on their webs site. They will tell you what industry they invest in, what size of investment do they make, etc. etc. You can also see the other investments they have made to see whether or not your venture matches.

Francesa, they key things that VC's look for are these:

The market opportunity - Does your product or service fill the needs of a growing market in unique or special way?
Execution - Does your venture have the team and the plan that can make the plans into reality? Can you execute?

If you can demonstrate these two things, to a VC that invests in your type of business, you will have VC's finding over you. Good luck!

Dear Dr. Brown:
I have this burning desire to contribute something to Africa (my native land) in the Information Technology field, that's why I called my company ITtransform.com. Even though this business has been established with an idea in mind, now I seem to be more confused and not really focused in my actual business plan. How could you help me find the path where I could get a chance to make a difference in Africa in the IT field and also have a successful business thus creating a win-win situation. The kind of answer that I am expecting is "this is the kind of things that Africa needs and you being from the Silicon Valley you can put this and this together and provide this.

Answer: Let me address your ending comment first. No, I am not going lay out a detailed business opportunity for you. I will however, help you reach your objective.First, it is clear that you do not have a business. All you have is a domain name. Part of the problem with many of the businesses that have failed since this past

Spring is that they also had not much more that a domain name.You need a service or product that satisfied the needs of your target market in a relatively unique way. You need to be able to delivery this service or product as a price that the potential customer is willing and able to pay, while being profitable to you.

If your target market is Africa, you are in luck. Their needs are enormous.. However, need is NOT enough. Many people make this mistake. The target market needs not only to be needy, but ready, willing and able to purchase your product.. For example, bringing Internet connectivity to certain areas in Africa seems to be a brilliant idea. But do they have the have the resources to pay for it? This is not to say that all of Africa is poor. That is not the point. The point is you have to develop a product or service that the firms and or people are willing to pay for.There are a whole host of protential services such as computer training, computer repair, installation, as well as the Net related ones. You need to research the market well enough so that you know who needs what, where are they located, and can they pay.

You being from the Valley could probably bring all sorts of things with you to Africa. But what do they need first? Who needs it? It may not be IT related at all. Good Luck

Dear Dr. Brown:
First, we are four founders of an internet startup which we started in May this year. We are located in Frankfurt, Germany. Two of us quit our jobs, the others still remain in their business, which is sometimes helpful for our startup. Our business idea has been appreciated by two business angels who will invest a small sum. After a long selection process we found a software company with a good reputation and which we can afford. But by now I start losing confidence.

There is a lot to do, I have only one partner I can rely on (the other two are captured in their business and are available only halftime), and I urgently need affordable manpower. Meanwhile, the business angels have not paid for their shares, since our company is not finally registered yet - and the software solution is only to be started and it will take at least three months to develop the technology.

I am desperate since I have no idea how to get manpower AND motivation for myself. I cannot pay a normal salary but would like to offer some shares for someone who is willing to join us. Do you have any advice for me concerning the above mentioned organizational problems? Your page gave me a sparkle of hope - maybe you can help me.

Answer: However, there does seem to be a few areas in which you need to begin to reduce that uncertainty.

First, why are you not registered yet? Being registered and official will send a signal your investors, your potential investors and your fellow partners that the business is real.

Second, you really need to come to some type of agreement with your partners about the direction of the company and the level of their commitment. Are they serious about making the business a success? If they are not committed to that, you need to know now so you can get new partners. Many businesses do not have the funds to hire "manpower" but they rely on the unpaid efforts of the founders. It seems that the other founders are not working as hard as they must.

Third, while using stock as part of a compensation plan is often used, it will be much harder for you to use it given that your businesses is not developed enough.

Ultimately, it seems that you and your partners need to sit down and have a serious talk. Partners must be reliable and must have the same vision for the company. In addition they have to have the same level of commitment. I am confident that once these issues are clarified, that your next steps for your business will become clear.

Dear Dr. Brown:
Why does everyone seem to want you to spend money developing businesses on the Web as if you were starting a brick and mortar company. The Web was intended to be free wasn't it?

Answer: That is not exactly correct. First, the Internet initially sprang out from an attempt by the US Defense Department to create a networked communication system. The goal was to make it distributed so that if the Soviets or anyone else struck key computer and communication targets, US data and communications would automatically reroute and be fine. The system was developed using Government and university resources. Researcher used it as a way to distribute and access information.

Second, the Internet is not just the web. In fact the web is a recent development. The Net includes things such as email, Gopher, Archie, FTP, etc.

Thirdly, until 1991 the Internet was supposed to be commerce free. This was fine because it was basically a university and government thing. However, the development of the WWW took place around the same time, which should promise for commerce. In addition, it was at the same time that the government money that was supporting the Net stopped. Therefore, turning to commerce was the only was to continue the Net.

Ultimately, if it were not for commerce the Net would not exist. Businesses are started here because it is an opportunity filled area. The networked computer system allows for the creation of products and services that could not have been created elsewhere. It also allows for the distribution of information that is allow for the democratization of not only information but also commerce.

Dear Joanne:
Hello, I am Chandan, an MBA student, currently doing a project on success and failure of dot com companies. I would appreciate if you could provide me with some insight and expert opinion on the subject.

Answer:To avoid creating a company that succumbs to the "dot-bomb" phenomenon, it’s essential to take the time to develop a thorough, well-documented business plan. My book, "How to Write a .com Business Plan," describes in detail just how to create such a plan, from the executive summary through the marketing plan through the financial projections, enhanced by advice from experts who reveal "red-flag warnings" to avoid.

Remember: the basic details for creating a business plan haven’t changed for decades, and there's a reason for that: a business plan is what it takes for success.

It's important to write a business plan that is concise and coherent. Potential investors are extremely busy, and it’s a huge mistake to force them to hunt through a 100-page executive summary to discover your business model. In addition, it is essential to thoroughly research and understand your target customer. For more information, I encourage you to visit my Web site for entrepreneurs, "Guide to Business Plans," at: http://www.dotcom2000.bigstep.com

Dear Joanne:
What do you advise for a person who wants to start an online business but is worried about the current economy?

Answer: In this type of economic environment, prospective investors are increasingly cautious about choosing companies in which to invest. Therefore, it becomes even more essential to create a thorough, well-developed business plan, with particular attention to your marketing research, management, and financial projections and plans section. You need to demonstrate that your business model will succeed because you understand your prospective customer and have based your product or service on your research, resulting in a profit to your investors.

A lean, cost-effective approach is critical. If you are creating a business plan for a "dotcom," make sure that it is targeted to the Internet's unique needs, as I discuss in my "How to Write a .com Business Plan" book.

Dear Joanne:
I wrote the business plan and I explained that I need $3,000,000. Now, I get a lot of lookers but no takers! Do I need to break-down my plan into milestones and ask for money as part of the growth? My Internet site is not ready yet. But I do need a lot of money to complete the site, where people come once and come back again and again. I have a pretty foolproof marketing plan. But I don't have the audience. Help?

Answer:You may need to include in your business plan some type of indicators that you have planned the growth of your company in a way that optimizes its profit and thus benefits the investors in your e-biz. Potential investors want to make sure that your new business will be profitable before they invest.

Whether you utilize a business planning guide such as the one that I wrote or free guidance such as you can find on the government's Small Business Administration Web site (http://www.sba.gov/), you may want to take time to re-evaluate your business plan before sending it to any additional potential investors. Good luck!

Dear Joanne:
My title is Director of Product Marketing. She wants a job description and whenever I give her one she tells me it will be great when we get funding, but what about now? It's frustrating and I'm a believer of the dream but have a hard time defining what to work on when she doesn't tell me what she needs.

Answer: I, too, believe in the dream -- and I think that what your manager wants you to do is help her build a real foundation for that dream, so that it can become a reality.

One way to tackle this challenge is to look at it as an opportunity to learn your manager's working style.

It sounds as if she's asking you to help her focus on the company's success for the immediate future. What you might consider doing is creating a job description with milestones. For example: First and Second Quarters: This position will focus on seeking business development opportunities and creating buzz for the company.

Third Quarter:....etc. You could then go to your manager, and say something such as, "This is how I think I could most benefit the company for the immediate future, and for the long-term future. Do you have other milestones that we could add to this?"

That way, you're working together to create a job description that works for both you and your manager.

Dear Linda:
I am planning to hire a company to develop a business plan and raise money afterwards. What is typical business arrangement for doing that type of work? And what questions should I ask them before signing?

Answer: It sounds as if you want to hire a company or consultant to handle two extremely important tasks:
1) Write a business plan.
2) Obtain funding.

What I would suggest is that you first take the time to evaluate this company just as thoroughly as you would evaluate a candidate for CEO or CIO for your company. Ask about the company's experience overall, and, specifically, experience with your type of business. If you want a business plan and funding for a retail donut shop, and the consultant's only experience is with online software companies, you may want to look elsewhere. Request contact information for companies with whom the business planning consultant formerly worked, and follow up by questioning them about their experiences with that consultant.

Next, I would recommend that you hire a lawyer or legal consultant to develop an extremely detailed contract. Because these are two different areas (business plan writing and securing funding), I would recommend making the second (hiring the consultant to handle raising funding ) contingent upon satisfactory delivery and approval of the first item (writing your business plan). Also include how you want to handle revisions of the business plan (if the first draft is unsatisfactory, will the consultant's revision be included in the original fee?).

Regarding your question about the typical business arrangement: Fees vary considerably, depending on the size of the firm and your relationship with the consultant or company. Some consultants work based on hourly fees; others prefer a project basis for fees. Again, these are issues that you need to discuss with the company or consultant and include in your contract.

Dear Linda:
I am the CEO of a 10-person, 6-month old software company. I am in the process of developing our first formal compensation plan for our current and future employees. How do I get started?

Answer: The most important thing to do is to clarify the philosophy and values that you want your compensation plan to support. This includes things like teamwork, firefighting, customer relationships, etc. In other words, identify the behaviors and attitudes that you want and then design a compensation program to foster those. More equity fosters investment in the success of the whole company; bonuses tied to department or individual goals create a more localized effort.. Bonuses tied to quarterly objectives support management focus on the objectives, sometimes creating a more short term mind set than you might have intended. Small bonuses delivered "on the spot" for heroics encourage great efforts, sometimes in a reactionary mode. Remember that almost any kind of motivator or incentive may have unintended consequences (like the reactionary mindset of small bonuses for heroics). Then, sit down with a compensation expert and explain what you want the plan to accomplish. S/he can work with you to develop the right plan. You really do need a compensation expert for this - don't try to do it without that. If you have a human resources person on board, they probably have the expertise. If not, find a consultant who can do it.

Dear Linda:
I want to know just how I can know what a company is like before I start there? I've made two bad job moves in a row, and I am now realizing just how important to me the way management treats employees is. But how do you get that information before you start?

Answer: Try these approaches.

1. When you interview, ask your potential peers things like "What happened last time someone had a performance problem?" or "How did you find out about the last significant thing that happened in the company?" It's important that you ask for a specific, (e.g. "the last time") rather than just inquiring how things are handled in general. Collect a few of those examples in your interviews and you'll get a good sense of things. (If you are not being asked to interview with several potential peers, request it.)

2. Arrive early for your interviews (second or third round of interviews) and ask the receptionist if it would be alright for you to hang out in the break room to wait for your appointment. See what's on the bulletin board (if there is one). Strike up a friendly conversation with anyone who walks in. This will give you a sense of things, allow you to catch the tone of the environment.

3. Ask to attend a "beer bust" or company meeting. Introduce yourself to people as a potential employee. Ask what they like about being at the company. If you've developed any specific concerns in earlier meetings, address them tactfully. For example, maybe you've heard that the CEO ("Susan") is hot tempered. You might say "I've heard Susan really knows a lot about this market. What's it like to work with her?"

4. If the company is still very small (30 people or less), you should interview with the CEO. If s/he doesn't do that as a routine matter, it may suggest that people are not the top priority. In that interview, ask specifically what matters most to her/him about the work environment. You can sometimes get at this by asking general questions such as "Why did you start the company?" or "What do you hope your employees say about working here?" And don't be afraid to follow up with "What's an example of that?"

And last, but definitely not least, trust your intuition. When you've had some time with the people at the company, pay attention to how you feel about being there. Your gut often knows what your head can't spell out.

Dear Wendy:
Just curious, we went live this past May of 2000 and are averaging between 500-650 unique visitors a day. In fact, one day we had 50,000 hits and 1500 unique visitors. Also, are web site is specific to the Sacramento area. In your opinion, have we done well in this 6 month period in driving traffic? Please feel free to view the Geebo page at http://www.geebo.com.

Answer: Traffic is one thing, but Profits are King!

I loved your site! The most impressive thing I saw however was your site has a heart and soul. Geebo is all about community … that is your soul. And you are proud that portions of your profits go to children's charities … that is your heart. The consumer of today is looking for places to do business with that reflect their heart and soul…this is formally known as cause related marketing.

The question you have asked me is pertaining to driving site traffic, and whether or not you have been successful in doing so during the six-month period you have been live. The traffic you speak of to your site is great, especially for a local presence.

Unfortunately, I cannot answer your question … but you can! Are you profitable yet, and if not when will your revenues allow you to be profitable? Are you getting repeat customers and are they happy?

Customers, and good management drive the success of any business and the Internet is no exception.

I will throw you a caveat to think over. Huge amounts of site traffic and small returns on your investment do not equal a thriving business. More importantly perhaps to the number of unique visitors is how many are returning and what portion of visitors to your site actually engages its services. How many unique visitors become customers and how many of your customers become repeat customers?

Dear Wendy:
We are a new high tech start-up company founded by personnel who are former national awards winners in the electronics and manufacturing fields.

Our reason for creating this company is a unique safety transmitter for the new highway safety communications system (SWS) that alerts drivers inside their vehicles of approaching hazards. This is the first new system in the government’s Intelligent Transportation System (ITS). We presented the concept back in 1992.

The problem:
We give them a proposal that would install our solution for less than $.80 per student per year and their answer: Not in the budget! Any suggestions?

Answer: Congratulations for doing something to benefit all of our children and enhance their safety. From the limited information I have my initial thoughts are:

1.Lobby the NTSB

2. Identify the state with the highest traffic related deaths and lobby the Governor, Senators and Congressmen from that state. Encourage them to take the lead in getting the purchase of this equipment installed.

3. Work with key media professionals to make them aware of the technology, give them proof of concept, and let them run with some of the alarming statistics I am sure you can make them aware of.

4.Get to the National PTA Organization and try to force this from the top down. Offer them a penny per device if they can successfully mobilize their communities to insist the government take action to protect our children through investment.

5. Go directly to Bus manufacturers. Before you do anything however be sure your technology is proven and verifiable. You are walking that tough line between a non-profit dream and a for profit vision…be very careful to define your business model before you proceed further.

Dear Wendy:
I have a small advertising budget for my web page...what are the top 5 best ways to market a page on a shoe string budget?

Answer: Most of my time is spent within the marketing arena of companies and your question is a very commonly asked one. The tough part is you are not alone…everyone wants to know how to get the most bang for their money.

I spent a brief amount of time on your site and think you might consider some or all of the following to drive interest and traffic to your site.

Make sure you are listed in all of the free search engines you can find…and when you write about your site lure the reader…giveaways are great…. and this costs you nothing more than the time it takes to complete the listings.

Meet as many journalists as you are able to, begin with local and go from there. Explain to them the value of your site and let them write about it…. convince one journalist and you will convince many potential visitors to your site. Journalists offer the best form of publicity for a site or business because they are unbiased in what they write so their audience will respect their words.

Link with strategic partners who will let you place a link to your site on theirs. If you are looking for traffic then get onto heavily trafficked sites. Do not confuse traffic with customers though or your business will soon come to an end. Target those who will be predisposed to what you have.

Give something from your site to radio shows…and let them give it away for you…ask in return for them to mention your site a specific number of times.

Get into your community…show that your site has a soul and that you are involved. The consumers of today want to know that the places they do business have a cause…. pick yours and get involved with it. Put your involvement onto the Home page of you site to let everyone know about it.

There really are many creative ways to draw attention for a small amount of money…I guess if I were in your shoes I would consider hiring a strategist on positioning to help you with the implementation of some or all of the above.

I wish you the very best and hope this gives you some insight. Please feel free to let me know how it goes. My Very Best to you, Wendy Haig

Dear Wendy,
I've recently quit my job to start an internet consulting business for local small businesses; offering web site design, promotion and marketing services with the idea of eventually building "web communities" for the various business sectors, i.e., restaurants/entertainment venues, the trades, equestrian facilities (very big in my area), etc. I think this is a good idea, but find myself a little overwhelmed. Where do I begin? My talents lie in the marketing and promotion areas, NOT in design. I'm feeling unfocused and time is slipping by while I reinvent the idea every day instead of just doing something. Thanks a lot.

Answer: Thanks for your recent inquiry to me and congratulations on “quitting” your job to start your own company…a very brave thing to have done in the current market! Welcome to the world of Entrepreneurship. Entrepreneurship is scary even in the best of times. The key word for you to always remember is Sustainable…you should always strive to be a “sustainable entrepreneur.”

FOCUS seems to be the advice word of the day. Do not reinvent yourself or your company every day…save that for a once a quarter kind of thing…every day is too much. Since your area of expertise lies in the marketing and promotions arena that is where you should focus first, keeping in mind that your are striving to also include web design work for the purpose of additional promotions.

First things first however. Establish yourself as a marketing professional in your region of the country. Try to get a few clients and work day and night dong nothing but getting them promoted. Go to every local tech reporter that you are aware of and talk with him or her about your clients, their direction and their product or service. Also, tell the journalists you meet with about you and your new company.

You should give thought to a simple press release which announces your new business venture…anyone with the courage to start a venture right now will certainly command some interest from the media. Be concise with your release as well as the way you answer any media questions. You know why you have decided to do this and why you are in a position to have done this as well…this is the first way you can begin establishing yourself while simultaneously defining your corporate brand.

Be well read…in other words know what the climate is in your industry, know your competitors and know your precise competitive advantage.

The sustainable entrepreneurs must be able to speak to the topics closest to them and must also be able to market themselves. Since you are a marketer…the time has come for you to first market yourself and your new venture.

I am attaching for you to read some things we have learned along the way that I hope you will find useful. Hang in there…being an entrepreneur is a great way of like…just figure out how to sustain it!

Dear Nicholas:
I recently created a bi-weekly email newsletter to help market a product I was selling. The newsletter has become very important to me. Its real content about real people. It doesn't contain links or things like that. Without describing my newsletter further, is it possible, with a certain number of subscribers, to actually earn advertising commissions?!

Answer: Absolutely! However, you will need to have a significant number of subscribers and be able to assure a targeted audience. The problem with most newsletter advertising is buyers are starting to figure out that the actual number of people who subscribe to a newsletter versus the number who actually read the newsletter is quite depressing. I would consider it a possible additional revenue stream, but don't pin the hopes of your business on its success.

Dear Nicholas:
I'm a reasonably successful idea developer with my share of semi-successful and failed attempts at products, services and companies. I submitted a product to a very large, well-known infomercial company back in December. The gentleman in charge of new product acquisitions says he sees literally thousands of products and mine is the one in a thousand they look for. They have dropped at least $20K on re-engineering the product from the original concept, several rounds of prototyping, cost analysis, patent search and evaluation, and expert consultation.

Unfortunately, now they are trying to screw me out of any royalty whatsoever because they are inventing around me. I'm not so worried about this case because I have very good documentation.

As you may or may not know, infomercial companies do not sign anything prior to looking at your idea. The inventor is at their mercy. I am not a paranoid individual, but I don't desire to be put in the same place that I currently am with this other infomercial company. Do you have any suggestions that might assist me. Thank you.

Answer: My father is an attorney and he always told me it was much cheaper to get his help before the problem than after. The best advice I can give you is to seek legal counsel for your current dilemma and have legal counsel in place before approaching infomercial companies again. Unfortunately, if what you say about the industry is correct, it might make this avenue for future product launches null and void.

Dear Nicholas:
I'm miserable. I hate my job. I'm scared to try to be an entrepreneur. Help!

Answer: It sounds like you don’t love what you’re doing now and you may have a sense of what you would love to do, but you are scared of all the challenges and obstacles of being an entrepreneur. Before you leave your job for another job make sure that your attitude toward your jobs isn’t setting you up to eventually hate all your jobs.

Making the leap to the entrepreneurial life can be very exciting, but it is not for everyone. I would recommend interviewing several entrepreneurs to find out what it is really like. Chances are you will find that it is truly a roller coaster ride and not as glamorous as they make it sound in the magazines, but it is a wonderful opportunity to unleash your creative power and do work that you truly love. You may also want to talk with one of our coaches. They have helped several community members with the same type of frustrations. Good luck!

Dear Nicholas:
I have a real fear of failure. How did you overcome your fear of failure?

Answer: To overcome my fear of failure I had to change my definition of failure. For a long time I thought of failure like many of you might now, such as closing down my business. About five years ago I made the conscious choice to change my definition of failure and that change created an entire new outlook for me on life.

I decided that my only true failure in life would be if I did not pursue my dreams. That definition, or change or mindset, has given me the freedom to experiment and take chances, and consequently live an exciting and fulfilling life.

You can create your own definition for failure and success, and by doing so you can liberate yourself from the shackles of your mind and pursue your dream life with freedom and ease.

Dear Jackie:
While working at my present employer, I was the architect of a innovative software application. It was so successful, the company wants to commercialize the system for resale to other companies. We are planning to create a separate spin-off with equity stock options for key founders like myself and some outside executive management team members.

I want to insure I am represented well during discussions of equity and salary in the new venture. If my present employer hires startup consultants to assist them in the spinoff, I can see how their opinions would tend to favor my employer. How do I find legal expertise that would be my agent and counsel me during these negotiations so that I am treated fairly?

I live in a small town so I expect I need help long distance. So far, my Internet searches have provided few leads. Thanks for any suggestions! -Ron

Answer: I have had a couple of clients over the years who have come to me in just such a situation as yours. In each case they came really late in the game when they were worrying that they were going to get cut out of the deal!

It is very important that a) you get legal representation by someone who does this type of transaction regularly and knows what they are doing b) that you get oral promises in writing c) that you get a fair shake from the company.

Very often in a spin off they bring in a new CEO. When this happens the CEO may have his own pet engineers and plans for the company that might not include you! Make sure your deal is tied up in bow before this happens.

If you live in a small town it is doubtful that a local attorney would have the exposure in these type of deals but you might be lucky. We would be happy to assist you on a long distance basis, check out our web site. All the Best...Jackie

Dear Jackie:
My husband is considering purchasing a carpet business because the owner is retiring. What does he need to know before making the big investment such as sales receipts from the last few years, etc. How can he know this business is doing financially well?

Answer: Before you purchase a business of any kind you need to do basic due diligence:
Is the entity a sole proprietorship, corporation or partnership?

If it is a corporation as the acquiror you would want to do an Asset acquisition not a Stock acquisition because you will not take on the prior liabilities of the company in an asset transaction.

I attach a basic due diligence check list. Not all may apply as this is for a technical company acquisition.

On the financials I would certainly want my CPA to review the books and records of the company.

Other red flags are any claims from former employees, any warranties the company has granted which you would continue to be liable for, and whether the leasehold premises can be assigned to a new owner.

This is a HUGE topic and I really cannot in a quick email response to a 101 on acquisitions! You need to retain an attorney to help you otherwise there is a real possibility you will not be covered.

Dear Jackie:
Where is a good place to find boilerplate contracts for software development services?

Answer: A boilerplate is just that, a boilerplate. Now there are bad boilerplates and good boilerplates. Almost all boilerplates need some modification to really fit the clients needs.

The biggest danger I find with start-ups is they 'borrow' a 'boilerplate' from a friend/company which is often a much changed document from the one the attorneys originally provided! The start up adds their own modifications and ends up with a problem when an investor comes to do due diligence and we find that the IP rights are not properly assigned, or a payment issue occurs.

Bottom line, it is essential for start-ups to use good basic documents. It can cost them funding in the future if they don't. We have a flat rate for consulting agreements of $750. Which includes customization, interview with client and a round of changes.

So you can be penny wise and pound foolish if you try and create your own legal documents.

Dear Jackie:
What is the legality of mass e-mail marketing?

Answer: That's a pretty broad question! The first question is whether your ISP lets you send a mass email marketing campaign, or whether that is considered spam. Some ISP agreements say they can terminate the contract if the user sends spam.

The second issue relates to State laws. For example, the California Business and Profession Code has a statute that says that unsolicited emails must contain specific information, and must provide a means for the recipient to ask that they be removed from the mailing list. There is a fine ($10,000 per occurrence, I think) if someone asks to be removed and is then contacted again. Other states may have similar provisions, which would have to be researched.

That's a brief summary of the topic. We would have to research further if you wanted more details.

Dear Jackie:
I have come to the point where my business is not going to make it. The margins in my industry have been driven below cost; which is the office supply industry.

I some debt, but not a tremendous amount, but it's a lot if you don't have the revenue. What approach do you suggest I use to pay off my vendors who want their money now? Considering the fact that I will have to return to job market, and become an employee again.

Answer: Are you incorporated? Did you give any personal guarantees? One approach is to have a creditors meeting and settle with them the amount you believe you can pay. Another alternative is to see a bankruptcy attorney, if you are incorporated you might be able to bankrupt the company without it affecting your personal credit rating.

If you are going forward as an employee it will be hard for you to pay back creditors if the sum is large.

I strongly advise you to see a bankruptcy attorney for some preliminary advice.

Dear Jackie:
How can I be sure that I can trust the people to whom I am exposing my business idea. We have a fabulous idea and we are afraid to tell anyone because we think we will get scooped. Can we trust a good non-disclosure?

Answer: First of all an idea alone is not protectible it is the tangible expression of the idea that is protectable.

This is a dilemma faced by many would be entrepreneurs. If you have design specs, a business plan, a prototype or a demo version all of these would be protectible. What you will find is most investors will not sign an NDA.

Put a running footer on the bottom of all confidential material "confidential and proprietary information of ABC Company". For your business plan, have each one have a number and keep a register of each plan distributed by # and who received it.

These steps will ensure you trade secret protection for the tangible expression of your idea.

As you are very concerned that your idea could be ripped off I recommend that you do as much development as possible before revealing all.

Dear Jackie:
I have heard that on-line advertising insertion orders are not binding agreements. I have an agreement with A_L with no out clause. Is it possible to get out of this agreement so that I don't have to continue paying for ads that are not working for me?

Answer: This is difficult to answer without seeing the agreement itself. If it was a click through agreement those have been upheld to be valid. Just as shrink wrap licenses have been held to be valid. There is a legal argument that the click through agreement is more readily upheld than the shrink wrap as it requires the affirmative action of the user to press the 'I Agree' button.

What are the termination provisions? If there are none, just try to give written notice that you are terminating your order and all future orders and see what happens. Obviously you cannot cancel something that is already being printed. If you obtained any special volume discount for your ad you might offer to pay them any such discount you received.