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Business Ownership

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A Criminal Success Story in Progress – Part 1

February 10, 2013, Bootstrapping, Business Ownership, Entrepreneurship Stories
http://www.schoolforstartups.com/a-criminal-success-story-in-progress-part-1/

This is a guest post from Nathan Lefebvre of Forensic Training Source, LLC

Writing a success story may be a bit premature but…here’s what I have done since starting the School for Startups with Jim and Chris…

First a little back story:  For many years, I ran the National Forensic Academy at the University of Tennessee.  Somehow, with a Master’s degree in elementary education, I found myself as the administrator of a new standard in forensic training for law enforcement from around the world.  The job was very rewarding and, as one might imagine, I made a tremendous number of contacts.  I realized that there are many facets to law enforcement and my experiences with them were no longer limited to receiving a speeding ticket…or two.  I developed a network of forensic practitioners around the country and came to call some of the nation’s most esteemed forensic experts my friends. Through a strange turn of events, I was lured away from my beloved NFA in the Spring of 2011 and moved to Metro-Atlanta.  Shortly thereafter, I realized how much I missed being an active part of the forensic training community. Sooo.  That’s enough back story, I think.

Although, I had left the academy, I remained connected with trainers looking for opportunities to teach and practitioners looking for opportunities to be trained.  Although, I have never imagined myself as a business person, I began to realize that I had some opportunities that not many people have.  Because of my unique experience and loyal former colleagues, I realized that I had the pieces that would be required to create a private crime scene investigation training organization.

Forensic Training Source is Born

In March of 2012, I found a CPA that helped me file the paperwork to actually create an LLC called Forensic Training Source.  I spent $16 on aciminal website template and a friend agreed to host a website for me for free.  I had never spent a single moment creating an online content but I was determined to create something that would make my concept feel real.  After many, MANY nights staying up until 4 am, I clicked the button that allowed the Forensic Training Source, LLC website to go live.  I was so proud but now, I also look forward to the day that I can look back on this first generation of my website and smirk at how terrible it “was”.

Now, I was exposed to the world.  I was nervous and hoped that people liked what they saw.  As exciting as the concept of owning a business was, I had serious trepidations about publically acknowledging that I was giving it a try.  Telling people I was going to go out on my own meant that they would know if I failed.  It wasn’t a secret anymore.  This sh$t was getting real!

The forensic community welcomed me back with open arms!  Immediately after learning about my new company a friend that was planning a national forensic meeting approached me and offered to give Forensic Training Source some exposure during his event.  I was grateful and asked how I could help him with his preparations.  Turns out I had a skill set that he was looking for:   I would handle his online registrations and payment collection on my website!  I offered to do this without any compensation because I was anxious to gain the awareness that would result from everyone having to go to my website to register.  That was a lot of people that would learn about Forensic Training Source that I might not otherwise reach.  The arrangement was a tremendous success and my forensic friend was thrilled with my contribution.  My registration system worked almost flawlessly.  Nearly $50,000 of revenue flowed through my new, baby organization.  People that had never heard of me or Forensic Training Source were more than willing…eager, almost… to send me checks and give me their credit card information.  Apparently, my website was instilling enough trust for people to at least do business with me.

Well, that was great, but now what? I needed to generate some revenue.  I needed to more effectively move from the theoretical realm to a practical, real-life business.  Like I said, I was not a businessman.  I needed some help making this happen.

School for Startups

“You should check this out.” My next door neighbor, David told me one day.  “I’m going to send you a link to a school for startups.  Maybe it could help you with your new business.”  I found a schedule for 8 weeks of classes that would last all day for 8 Saturdays in a row.  Jim and Chris appeared to local guys and everything I read made me feel like this appeared to be something worth investigating further… maybe even legit.  I was relatively new to Atlanta and I was definitely hoping to connect with other people in the area…especially if they would be good resources, sounding boards and guides as I pursued the creation of my company.  I decided to go.

Saturday morning rolled around and when that alarm went off, I thought very seriously about shutting it off, rolling over and going back to sleep.  A 45-minute drive on a Saturday morning?  My only morning to sleep in? All day in a CLASS?  It went against ever fiber, but I got up and drove downtown.  I was prepared to bolt the moment I realized I had fallen prey to a scam.  Instead, the presentation began.  Jim described how sponsors like UPS and Wells Fargo were making it possible for them to deliver the courses for free.  I didn’t need to buy a single thing.  The information was great.  I started to breathe a little easier and settled in. Amazingly, 8.5 hours passed incredibly fast and we were leaving.  I had pages upon pages of notes.  Lists of resources. Ideas of where to go to get more ideas. Practical advice and stories of real successes and avoidable failures.  Jim and Chris seemed real, down to earth and approachable.  The information that they shared was practical and realistic and I left feeling like there were tangible baby steps that I could start to take so that Forensic Training Source could begin to move forward.  Before I pulled out of the parking garage, I had already used my smart phone to register for the next week’s session.  I was hooked.

 

In Part 2, we will learn what happened to his business next….

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The Purpose of an Entrepreneur

January 29, 2012, Business Ownership, Entrepreneurship Tools, General Thoughts, Startup
http://www.schoolforstartups.com/the-purpose-of-an-entrepreneur/

Your purpose as an entrepreneur is not to make money, it’s not to become independent of the wrath of an unfair boss, it’s not to avoid the morning commute and it is definitely not to live the life of your dreams…  well maybe those are some of the reasons but they are not THE reason.  I am writing this in hopes of it being taken to heart by those of you that are currently pursuing your dream of being your own boss or are considering making that dive into the deep end.

Jim Beach of School for StartupsIt seems the age of greed, destruction of our planets resources and foul business practices is coming to an end and the companies that flourished during those times are on their way out.  What we are now ushering in is a time of small business opportunity like never before and with this opportunity comes some significant responsibility for those taking advantage of it.   You now have more opportunity to become financially independent than ever before and you must use the opportunity to make the world a better place or we end up right where we left off.   When you consider how much of an impact businesses, large and small, make on our lives, our planet, our families, our health, our relationships, our decisions and everything in between you begin to see the ‘big picture’ and with that insight you should begin to see a level of responsibility that not many people must face.

That responsibility is to provide purpose and meaning within your business.  Guy Kawasiki mentions three purposes in this video below, number one is to ‘increase the quality of life’, the second is to ‘right a wrong’ and the third is to ‘prevent the end of something good’.  In this super short video he delivers information that EVERY entrepreneur should take to heart.   When you really think about the impact your business will have on your own life, the lives of those you love, your employees, the environment and everyone you do business with you will begin to see just how important it is to run your business with a strong moral foundation and a core group of values.

I am tired of hearing about corruption, greed, fraud, extortion and crooks getting away with financial murder all in the name of bonus checks.  We have an opportunity to rebuild our economy and our business practices based on decisions of the heart rather than the wallet.  There is plenty of profit in making the world a better place… now go make some, and let benevolence be your compass!

Now, if my geeky “Rush fan” side can take the stage for a moment, there is a song written by them called ”Closer To The Heart” in which the first line really sums up what i am trying to say here…

“And men who hold high places, must be the ones to start,  to mold a new reality, closer to the heart…”

Geek aside, they have a great point with those lyrics… Those that have the most impact and influence have a moral responsibility to make the world a better place due to their influence and must do so in order to help our world recover from an age of greed and corruption.

I would love to hear your thoughts on the subject!  If you have a company i would love to hear how you help make your employees lives better, what decisions you have made to take the high road, what values your company holds or anything else you feel like sharing.  If you have ideas as to how others can influence in a good way please share those as well.

 

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A Friend Wrote this About Getting Money From Family

October 2, 2011, Bootstrapping, Business Ownership, Business Partners, Financial Concerns, Humor, Raising Money
http://www.schoolforstartups.com/a-friend-wrote-this-about-getting-money-from-family/

Your first section on “bootstrapping” is really great:  “Most businesses get stuck.”  I have this uncle who is a rocket scientist. (Really…a “rocket scientist”…In the 60s/70s he designed rocket propulsion systems and robotics for handling nuclear material)….So in the 80s he decided to

School for Startups at UGA bookstore!

School for Startups at UGA bookstore!

raise money for a company for manufacturing robotics.  Great idea and businesses do it every day…but he had NO idea how to run it as a profitable business himself.  So he went to raise money from…family.  Dad grudgingly participated (knowing better and loudly complaining in the process) because of the relationship.  Almost thirty years later the uncle still sends out investor letters, still takes “annual losses” that enable him to take fun vacations around the world. No family ever made a dime.  Dad passed away years back.

Well, we all very much still love that uncle.  It’s how we roll…Dad was smart enough not to expect anything – it was a gift for family even if the uncle didn’t take it as such.  My lesson:  NEVER NEVER EVER EVER raise money from family unless you’ve got some crazy reason to know it is a SURE bet (maybe a contract in hand or product pre-sold…maybe).  Because if you’re going to family…It’s probably because your idea isn’t strong enough to show to somebody you don’t know as well.  So even subconsciously it’s just not honest and somebody will probably loose because you wanted to play around.

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Critical Shortage of Experts

August 31, 2011, Bootstrapping, Business Ownership, Buying a Business
http://www.schoolforstartups.com/critical-shortage-of-experts/

Apparently, there is a critical lack of things to talk about on TV and they are running out of people to say stuff:  click here.

My old favorite restaurant, the Radial Cafe on DeKalb, has changed hands and WXIA was reporting on this as a sign of the times.  A career food guy lost his corporate job and bought the restaurant as his job.  Buying a job.  I didn’t say in the interview that I prefer starting from scratch instead of buying, but still job well done.  He is feeding his family.

Coincidentally, I used to eat at Radial everyday.  They had a fried chicken, bacon, provo cheese sandwich there named the Jim Beach!

 

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Why I Love My Daycare

August 15, 2011, Business Ownership, Entrepreneurship Stories
http://www.schoolforstartups.com/why-i-love-my-daycare/

We just had a baby boy, and need some daycare help but not fulltime help.  My wonderful, beautiful, and talented wife searched the city loking for a daycare that would charge by the hour.  Most daycares charge by the week or month, never by the day or hour.  But, because of my schedule, we need a place where you can drop a kid off for 2-3 hours, or for lunch.

We (ok, she)  looked far and wide and finally found a place about 200 yards from our house.  Its not much to look at, but they offer the exact service we need.  Hourly daycare, offered 24 hours a day.  I can drop William off on the way to lunch and get him a hour later, and then we can drop him off to go to dinner and a movie, picking him up at midnight.

Entrepreneurship is about fulfilling a need.  Bingo!  They get a A-plus in my house.  And every other day care in the world is crazy to not copy them…..

 

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GUEST post: Emily Jones

August 4, 2011, Bootstrapping, Business Ownership, Financial Concerns, Venture Capital
http://www.schoolforstartups.com/guest-post-emily-jones/

Venture-Debt Financing Is Not Against Entrepreneurs

Usually, to raise capital, entrepreneurs offer investors preferred stocks in their fresh ventures. Preferred stocks terms always have powerful
shield for investors, and in the end, the company incur no debt.

Venture debt is another form of financing companies. Here, investors lend the money to the company instead of buying an ownership.

For instance, UTFC Financing Solutions LLC, a Utah based venture debt firm, lends entrepreneurs. Here, UTFC reserves the right to purchase a
portion of the firm at any time.

Many critics see such provisions as ‘backward’ and ‘anti-entrepreneur’. However, many critics provide sufficient grounds why early-stage debt may be a ‘preferred’ option.

If we compare in a standard investment scenario, we will see that the use of venture debt over equity decreases by 10 percent the value of the
company the entrepreneur has to give to investors. It could be even $1.5 million just through a single round. Now, if the firm becomes successful, the
millions of dollars that the founder profits, keeps or share with his employees. This is certainly positive for the entrepreneurs.

But, why an investor should do a debt deal if it is positive to the entrepreneur. They would do as they get more of the company. Again, why
debt investors give up the percentage? Actually, here they get reduced risk and priority over equity investors.

However, many critics say, this does not work in the end-especially not with tech companies. It has seen that many tech companies have
been blessed by venture debt.

Actually, each situation is different. Preferred stocks might be right sometimes. However, venture debt is also another way to tread on.

Emily Jones is a contributory guest columnist for various websites and communities including Oak View Law Group and CMFA . She has completed her Graduation in Finance and is currently working with an Investment company located in California. She has written some great articles on topics like bankruptcy, investment opportunities, debt management,  debt settlement programs and more.

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Acres of Diamonds – Wealth Under Your Nose?

July 1, 2011, Business Ownership, Creativity and Ideation, Entrepreneur Personality, Entrepreneurship Quotes, Entrepreneurship Stories, Entrepreneurship Tools, Entreprneurship Training
http://www.schoolforstartups.com/acres-of-diamonds-wealth-under-your-nose/

Acres of Diamonds – I’m Late to the Game

I just finished what is a must-read for all would be entrepreneurs.  It is an essay/lecture from Russell Conwell.  This lecture came highly recommended to me from a friend at work.  Once he learned of my role at The Entrepreneur School and of my help on the book he implored me to read Acres of Diamonds.  We were in a bit of a busy season so I delayed until he finally commanded that I read it.  I wish I had not delayed for in my ignorance of not knowing this lecture existed and then in my delay I am now  late to the game and perhaps I’ve cost myself a fortune.  (Similar to the way I felt when I first learned of the philosophy of Jim and Chris here at the school).  I’m being a bit dramatic but there’s real value in this old gem.  So act quickly to read it.

√

Wealth Under Your Nose

Acres of Diamonds is a speech that Russell Conwell delivered in the late 1800′s and early 1900′s.  It’s primary theme is that wealth and opportunity lies immediately before you – right under you nose.  The speech details stories of the then famous entrepreneurs who got their start by observing the needs and problems of those immediately around them.  These were ordinary people with ordinary needs who took action.   Russell Conwell, who seemingly led an amazing life, was an officer in the Civil War, a Baptist minister, orator, philanthropist, lawyer, published writer and is known for founding Temple University.  In this lecture he takes up a Christian call for the importance in profit and industry.  He looks at opportunity (in an eerily similar low risk bootstrapping way). While calling us to these two themes the lecture combines marketing lessons with leadership and character lessons.  All the while he’s pointing the reader (or listener in those days) to the higher call of the lasting impact these things can have.

The beauty of this lecture is it in itself proved the very point Russell Conwell was trying to make.  He delivered over 6,000 times and reportedly earned over $8 million dollars on the speech (bear in mind this was in the 1890s to the 1920s).  His diamond (or opportunity) was not in steel, railroads, or mining but in speaking.  He took something people needed and wanted to hear and built a fortune with it.  You would be wise to get your hands on this speech.

Quotes from Acres of Diamonds

On Opportunity:

Oh, my friends, if you will just take only four blocks around you, and find out what the people want and what you ought to supply them, you would very soon see it. There is wealth right within the sound of your voice.

On Wealth:

But the man who has gone through life dividing always with is fellow-men, making and demanding his own rights and his own profits, and giving to every other man his rights and profits, lives every day, and not only that, but it is the royal road to great wealth. The history of the thousands of millionaires shows that to be the case.

On the Need for Capital to Start a Business:

What you need is common sense, not copper cents.

Young man, remember if you know what people need you have gotten more knowledge of a fortune than any amount of capital can give you.

There’s so many more of these that I could do another set of blogs.  Like I said – get your hands on this piece of American history.

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FREE SHIPPING – A new trend

May 16, 2011, Business Ownership, Creativity and Ideation
http://www.schoolforstartups.com/free-shipping-a-new-trend/

I caught this blog a little while ago and was interested in it.  First it outlines that customers would shop online more if shipping costs were lower.  Then it goes into a few retailers that are offering free shipping on all products.  L.L. Bean is a new one doing it.  Zappos.com has been doing it for a while.

We’ve been battling different theories of Free here at The Entrepreneur School. So this idea of free shipping has me curious.  Here’s a quote that encapsulates the idea behind free shipping:

Fiona Dias, executive VP of strategy and marketing for GSI Commerce, says the move by L.L. Bean is “revolutionary” and trumps what she calls the “free shipping sometimes” strategy. “For consumers that’s irritating, because you might have been price shopping on Monday, and now it’s Wednesday and the price has gone up.”

Because of Amazon’s success with both its $25 minimum for free shipping and Amazon Prime, a $79 membership for two-day shipping year-round, other companies are studying its business model and borrowing tactics, Dias says.

“What happens with customers is once they feel they’ve paid their membership dues, they want to shop more,” she says of shipping memberships. “From a retailer expectation, you’ve made shopping so easy, so frictionless that the consumer will end up buying more.”

That’s the crux of the free paradigm – make it easy for the customer and you’ll reap more than if left certain costs in place.  The jury’s out on whether this will work.  Any thoughts or experience with taking some aspect of your business or product free?

I’m curious.

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More About Using Business Brokerage Listings as Startup Tool

May 3, 2011, Business Ownership, Buying a Business
http://www.schoolforstartups.com/more-about-using-business-brokerage-listing-as-startup-tool/
My friend Tom, whom I alluded to in this blog, just sent me some more data (see below) from a business-for-sale brokerage website.  As you remember, we thought about starting a liquor store, but could not find good data on what they are worth, how much inventory they need, and how much they make, both revenue and profit.  Tom answered these questions when he found this data.  Now, I know everything I need, enough to not start this business.

But, using this method to evaluate your new business idea is a great tool.  If you want to start a any business, our of our suggestions is to understand the exit before you start.  You need to know how easy it is to sell a business, before you start.  It’s part of the honesty process. Is your business a single (mom-pop ownership, where they work at the business every day) or a double (big enough to have real employees and stuff)?  Good planning will use this sales data before you start your business.

Atlanta – Downtown 
Reduced!!!
#656
Cash Flow      $120,000
Sales Volume $500,000
Asking Price   $100,000  +  Real Estate  $375,000
+Inventory $100,000
(Asking Price Less than 1 Times Cash Flow + Real Estate is
Listed Less than Market Value.)

Atlanta Area – North Area
#632   Cash Flow      $170,000
Sales Volume $803,000
Asking Price   $298,000  +  Inventory $175,000

#653
Cash Flow      $110,000
Sales Volume $585,000
Asking Price  $189,000  +  Inventory $  70,000 Reduced!!!

#646    Cash Flow     $170,000
Sales Volume $800,000
2011 Sales Up 47%
Asking Price  $325,000  +  Inventory $120,000

#658     Cash Flow    $  67,000
Sales Volume $887,400
New Listing!
Asking Price $189,000   + Inventory $360,000
#662     Cash Flow   $162,000
Sales Volume $976,200   New Listing!
Asking Price $334,000 + Inventory $125,000 +  Real Estate $150,000
and on and on…….
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Are you a Small Business Accountant? We need your help!

April 22, 2011, Business Ownership, Tools
http://www.schoolforstartups.com/are-you-a-small-business-accountant-we-need-your-help/

On the heals of my last blog – (Taxes Suck! and are Worse for Small Business) - I thought of an “entrepreneurial solution” to helping small business owners.

The problem:  Small business owners seem to be in two classes: 1.  Those starting out – entrepreneurs who are bootstrapping, learning and building from the ground floor or 2.  Those who have figured it out and replicate their success in various small business

So for those in category one we need help with taxes.  Typically, as my previous blog says, we don’t know how to navigate the tax code in the actual formation (picking a corporation, setting up books, and simple processes to track income expenses) or in the filing stages.  I seem to know 3-5 people constantly in this category and need some type of help from a small business accountant.

Things like quickbooks, mint, turbo tax, quicken, money, etc… all help but don’t quite get you over the finish line.  My appeal this is to use social media, networking, and the blog to find the best small business accountants and business practices and do a blog series on it.

We’ll select a handful of insightful accountants and/or approaches and highlight them in The Entrepreneur School. The upside to those who win is a possible boon of new clients.  The upside to all of us with The Entrepreneur School is a handful of the best small business accountants in the industry.

If you are small business accountant or know one please email me a brief “blog” or your thoughts on how you approach working with small business owners, what things are needed to set-up a business, what things are needed to track income and expenses, and any strategies or processes tied to filing.

Reach me at jacob @ TheEntrepreneurSchool.com (written in spam safe form) or reply below with your contact info or blog.

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