Grab the VP By the Throat

Success! Well...getting there.

This week I took a bold move, (frankly one I have been unwilling to take for a long time.) I made direct contact with a potential customer. Not just any customer. The CEO of a major media company. (Actually two.)

How did I do it?

FEDEx.

That's right I sent him a FedEx. I drafted a letter that was directly relevant to his business, outlined some suggestions to rectify the problem and told him I would call him on a specified day to discuss.

I got the idea from Dilip Saraf, he suggests in relevant cases to FedEx a Senior VP in search of a job. Basically, you show your knowledge of their industry and particular business pain and intrigue them enough that you have the solution. So I thought, "That should work for starting a business too!"

Here are the basics of the letter:

1. Paragraph 1: Compliment them, ask them why are you not addressing this...?
2. Paragraph 2/3: Facts or figures about emerging trends in their industry - setup the problem
3. Numbered List: 3 points - suggestions on how to take advantage of the trend or fix their business
4. Last paragraph: Let's chat about the solutions I proposed. I will call you on this day to discuss

I then researched press releases, company bios, trade shows, and blogs for names of people that work at the company I am targeting...hopefully in a Bus Dev or Senior VP Role...found the corporate address on the company website and for $16 FedEx's the package 3 day deliver.

Oddly enough. It has already worked twice. Senior VPs and CXOs are actually calling me.

So, your task for this week, is to get working on a letter. It will force you to get your value proposition down to three bullet points and force you to identify the customer. Don't send it out unless you have really practiced what you are going to say and have enough together to show them you have the solution already.

Last task: Tell me what you think of the idea, what has worked for you, or where you need motivation. I'll see if I can help.

I have not written in quite some time. A layoff at my day job really took me for a spin. Frankly, I am tired of the "new economy". This term basically means, be prepared to be thrown by the wayside whenever the executives need to cut costs. So if you have been thinking that pursuing your dream is too risky, I ask you, is staying in your job any safer?

I am back on track now and recently got asked what kind of person actually succeeds at a start up. Here's an answer or two:

Unlikely Millionaires

Monday, May 19, 2008

We all fantasize about coming up with a million-dollar idea, but who actually lives the dream? Here are some success stories, as well as a look at how great entrepreneurs manage to make their mark...

From Yahoo! Finance ... see the full story.

How to Be a Hit on YouTube

This week I am still writing code and developing a demonstration of my service that others can run by themselves. The point is to allow others to experience the service and get engrossed in it without me getting in the way. But let's say you are farther along than I. Your idea and product are finished, but you can't seem to get it off the ground. Give this a try: viral marketing, on the cheap.

Videos on Youtube.com can be a great way to let others spread the word about your product/service. If it's fun and entertaining, these video ads have been known to make front page news and even land you on the Late Show or CNN. And the best part is, it costs you nothing to post the video.



Google's Gmail video on YouTube created by users


Here is a synopsis of how to make a hit video ad on Youtube.com according to the Wall Street Journal:
(WSJ full article on how to use video to expand your reach)

1. Make it funny
2. Make it timely
3. Make it useful
4. Make it shocking
5. Have existing customers contribute
   

You don't need an advertising agency, a budget, or high powered graphics. You just need a clear, interesting message that rings with this audience. Is your product funny? If not, is someone in your office funny? You only need one of the items in the list to make it work. Maybe your product pulls at the heart strings of your intended audience, like this bullet-proof backpack. Yours is neither of these, you say. OK. Make it shocking. Say you make wheat tortillas and nobody is buying. Make a different segment each week showing one hundred ways to kill someone with a tortilla. Tax advice? Show little kids teasing a middle-aged man and pulling down his trousers. Then state how you will never make them feel stupid at your tax service. If it isn't disturbing or funny, it isn't worth talking about, now is it?

Here are some other sites you may want to consider posting your video ad:
YouTube, stupidvideos.com, ifilm.com, purevideo.com and tvlinks.com, blip.tv

Keep in mind, most people going to these sites are looking for entertainment, not products or advertising. So, entertain them!

Ask Yourself:

1. Do I know any middle-school or high-school age children?
   If so, they more than likely can operate the video camera, do the editing, and post the video ad for you. Give them a script, some freedom, some pizza, and a bit of oversight and you are done.
2. What is the opposite of how you use my product?
   Is that funny? What if you used it wrong, upside down or with the wrong end?

---------------
Million Dollar Joe

Christmas Business Expenses

This past week has been full of excitement, (if you like programming.) An old project was revived from the dead and needed my attention now that the music world has taken interest. The other part of my time was spent online shopping for the holiday season. This brings me to an interesting point. You only have until the end of the year to buy things for your business as a tax write-off. I recommend buying now, while shipping is free at most places online.

Need a printer, how about a laptop for presentations? You can get one for only four hundred dollars now at Dell or buy a used one like I did for $200. Keep the receipts in a folder marked "Business Expenses 2007." Then don't forget about those receipts in April. GPS? Write it off! Get one for about $300 for yourself. You will love your Christmas present to yourself and it will come in handy when you have to get yourself to your customer's office for a presentation. Digital cameras are also relevant if you use them to take pictures or document your work.

Tips of the week:

1. Buy used to keep your expenses low - try craigslist.com
   
2. Keep the receipts and mark each one "Business Expense 2007"
3. Keep them in a separate folder
4. Make sure they are business related

Ask yourself:

1. How much square footage is my office at home? -
   you can write off that percentage of electricity and related bills, including internet fees

That's it for this week. Let me know if you are interested in knowing more about how I plan to change the way you listen to music.

Success! - How to Call the CEO

SUCCESS!

Well, I am not a millionaire yet, but I took a big step forward these last couple weeks. I demo-ed to two companies who provide services to my real customer. I was just looking for some feedback, but was surprised when both parties independently were so impressed they were ready to call the VP of my target customer right then and there! The next few months are going to be really busy as I take my prototype to the next level, so other people can use it without my assistance.

So how did I do it and how can you sell to the Wal-marts and Yahoo!'s of the world?

Tips of the week:

1. Bubble up. Don't call the CEO, call a friend who has a friend who works there. The best way to get into a company is through an introduction. Doors open when people within clear the way for you. I'll tell you how to do this lower down.
   
2. Use Sales People. They are paid to talk. Sales people will always take your call. Ask them about their business and why it is so great. They will be happy to volunteer numbers and expose their business model, which you can use later to adjust your pitch. Then explain what you are doing and how it fits. Ask who at their company might be the best person to talk to about it and get an introduction.
   
3. Tech Support and other lowly's - If you don't yet know people who work there, find an internal champion. Call their technical support. These guys are usually early adopters. Get them excited about your product or using your product. Once they love it, others will find out, or you can ask them, "who else do you think might be interested in this at your company?"
   
4. Advertisers and Suppliers This is the channel I used last week. Look online to find out who your target customer (I am assuming you are licensing something or trying to sell it in a store) uses for advertising. Call their advertiser. These people are dying to be seen as looking at for their client. They'll make the intro for you if you can convince them of the value of this to their customer. What about people who supply products to your company of interest. I am quite sure they know a lot about the business and can tell you if you are way off track.
   

I called two companies. One provides advertising to my target companies and the other already has a service they provide to my target. How did I get in touch with them? I told everyone I know that I would really like to talk to people about my invention who work at companies like ...

So now for your homework. Ask yourself:

1. Who provides advertising to or for your target customer?
2. How can I slip into conversation when friends ask me "How are you?" that things are going well and now you are just looking to test the idea out on people who work at ... advertising or supply company?

Comments? What are you working on? Did I miss your area of interest? Let me know.

How to Make Your Products in China

I am proud of this week's accomplishments. I am working on a logo, business cards, I have a quote out on website development (a key aspect of my service), and I contacted a potential customer this week. Not bad for coming off a week of low motivation! Are you keeping up with me? Let me know how you are doing or where you need help.

OK. Getting back to the point. Let's talk about how to get your products made. If you are making consumer products you will likely need to have your product manufactured overseas. I recommend a site called, Alibaba. There you can look up manufacturers in China, determine their skill set and even have them quote you cost to produce it. Most of the inventors I know, like Barbara Carey, frequent Alibaba.

You may also want to consider this video presented at Inventors Alliance a few weeks back. It is a taped presentation that covers who to work with, what you need to get started, how long to expect, and touchy issues like patents and IP.

Tips for the week:

1. Go to the store where your product will be sold. Find the specific aisle where it belongs. See what they are saying about their product. Ask an associate what sells well there and why he/she thinks so. Take notes.
2. Create some fake packaging to really show how your product will be displayed.
3. Figure out how much it will cost to produce your item. You are shooting for a retail price of six times the wholesale cost. If that number comes out too high, your product is too complicated. Reduce the cost.

(These tips come from many conversations I have had with famed inventor Stephen Key. Maybe I'll get him to post an article some time.)

Ask Yourself:

1. Can I make up some fake packaging for my product this week. (Hint: start with powerpoint and some benefit statements...then glue it to a piece of cardboard. Find an old plastic piece from some other product and glue/tape that on. It doesn't have to be perfect.)

Thoughts? Comments? Let me know what you would like to learn about. I've been studying this for years and have spoken to the best. (Or maybe you just subscribed to see me crash and burn?)

Ryan Lee (The Next Million Dollar Joe)

Finding Motivation

(Quick tip: Check out this web demo, this Thursday morning on corporate innovation.)

This week has been a tough one. I got a bad dose of reality and am debating not continuing on my adventure. It's been taking a toll on my health working a full time day job, raising young kids, and working on a new business. My neighbor, a serial entrepreneur, tells me realistically, he and his friends have lost four years of their kids lives to make it happen. I have a deep desire to test my limits and feel that sense of accomplishment as I build a product and business of my own, but I am not so sure I am willing to give up that which I cannot never get back. So this week I thought I would give you a dose of reality and some tips for motivation. You apply your own test, and let me know what you think.

Ask Yourself:

1. Am I willing to work more than full time and miss out with those I love for four years?
2. Is the end result worth it?

To answer these questions, let's look at your reasons for doing this project in the first place.


Tips of the week:

1. Write down as many items as possible how your life will be better, then narrow it down to seven.
2. Make a similar list indicating what you will do with the money once you are rich and narrow that down to those you must have.
3. Envision what your partner or loved ones would want if you succeeded.
4. Write down how you would feel if you succeeded.
5. Write down how you would feel if you did not succeed or never fully tried.
6. List how the world would be better off with your product/service and then list how they would suffer without it.
7. After narrowing each list down to seven, narrow it down to three each, and then pick the most important one from each list. Write that in front of your journal or make a sign and post it somewhere you will always see. This list will remind you why you are truly doing this.

Now one day later go back and re-answer the "Ask Yourself" questions. Are these strong enough motivators for what you will give up? Let me know your motivation tips by leaving a comment below.