Don Quixote de la Mancha was a novel published in 1605. That was before the Jamestown Colony in Virginia and before Wall Street. Don Quixote was a bored, destitute landowner who in his spare time read stories of knights of old and heroes and damsels in distress.
Yearning for a bit more zip in his humdrum lifestyle and needing some fortune, Don Quixote dressed himself up in armor and mounted his super thin horse Rocinante and set out upon the world. Contrasted with his chubby squire or aide Pancho Sanza and Pancho 's donkey, the two cut a literary and visual image known worldwide; tall thin, Don Quixote and short, round Pancho Sanza are forever with us.
Don Quixote represented the dreamer and Pancho Sanza the cold realist. Together they stumbled and fumbled their way to adventure; our man Quixote fighting windmill giants and armies of sheep. Sancho managing to just keep our man Quixote from falling in. The figure he cuts thrusting his lance upward toward a windmill epitomizes the quest for quest 's sake and the universal struggle for meaning. Or something like that. But just how does Don Quixote correlate to the modern day start up?
First off many start ups are fanciful dreams, much as Don Quixote imagined windmills to be threatening giants. Working some start-ups is the equivalent of dressing up in armor and fighting windmills. Fed by little more than a dream and sometimes little else, those that work in these fanciful ventures will make less, work more and almost assuredly end up going to another one when this one crashes. The danger is that once you actually do one you are hooked. It is a well known fact there is no thrill like a start-up thrill.
But why even try something that has a high probability of failure?
For the experience, stupid, might be Don Quixote 's reply in one of his more lucid moments. Start ups sometimes are often made of up a handful of employees comprising the 'team'. This team is it; management, production and marketing all in one package. No where else other than a start up can one find that kind of experience. Peter Drucker, perhaps the 20th century 's most eloquent management theorist, made the statement that if a job isn't challenging enough and helps you develop, you should find another.
As I look back over my career I can see that I've been involved with several dozen projects. On some, I was the leader. In others, a cog in the start up machine. Each one of these projects either honed a current skill or gave me a new set of skills. Often these skills were not apparent until after the project or even until years later.
Of course I naively threw myself headfirst into anything I was working on. This is what the pundits call being engaged. Because I was engaged, I cared. And because I cared, I was engaged. Each project became a personal project; one that I owned and developed a strong series of emotional 'bonds' to.
It is because of this engagement and corresponding emotional attachment that the experiences were so strong and the new skill sets so thoroughly learned. Often my colleagues would make fun of me but I didn't care. I was having fun at least and when I saw the dud projects they were working on I made fun right back. It seems I was always working on something interesting, though I can't remember ever doing an exciting company manual...
My colleagues made fun of me because I wasn't making their fees. In hindsight I wonder if there also wasn't a tinge of jealousy. I was always so excited and upbeat and they were always so, well let 's just say not very happy. My happiest times in business were working on some absurd Don Quixote windmill project.
And I had some real winners: online auto parts, online blue collar recruiting, farmworker cooperative, depressed area economic development, language acquisition, security and anti-theft development and so on. Most ended up requiring original research and extensive whiteboarding. In fact on one of these projects I whiteboarded for six straight months. Where else could that type of experience happen?
But start ups end. They fold, merge, get bought out, and fade into the business sunset. Sometimes even succeed.
But a funny thing happened on the way to the dance. As time went by, I put more and more of these windmills under my belt. I didn't pay them much attention, but my skills and capabilities had taken a major step upward. And I could tell my colleagues were right there in their comfort zone where they assured their own perpetual stagnation or Drucker 's non-development.
To my surprise I had gotten better, much better, and they had not. Where once a colleague and I had roughly the same abilities, five years of doing Quixotic projects had vaulted me way ahead. The funny thing was I could tell and they could tell and it irritated the heck out of them. They even stopped kidding me. But what could I say?
And thanks to my Quixote projects my 'traditional' projects seem to be easier too. After one spends months attempting the impossible, a creative marketing plan or internal reorganization seems so much easier. That 's because it is.
I don't mind that on occasion I'm still teased for being Quixote. There are worse things. But I will say this. I wouldn't trade a single one of my windmills for a stack of ho-hum snoozer contracts. Life is just too short to sleep through it...
But seriously, somebody has to keep a close eye on those windmills or they can very quickly get out of hand...
Sunday, April 20, 2008
Education Creates Attractive Choices: From Climbing the Career Ladder to Planning for a New Career
Many people join large successful organizations because they are searching out opportunities for learning, promotions, and stability in a career ... especially at organizations that cherish employees and help them develop. Even people who think they might later want to own and operate businesses often value the opportunity to first learn from working at a well-run company. Many such companies encourage their employees to take courses, earn degrees, and prepare for enhanced careers in a variety of other ways.
Such career development can provide an unexpected bonus: The education you gain can help you prepare for a new career if you no longer want to climb the old career ladder ... or find something you like a lot better. Carlos O. Laya had both experiences while studying at Rushmore University.
Mr. Laya started his career by enjoying a wonderful job as a laboratory technician at one of the world 's finest and most admired companies. But Mr. Laya longed to work instead with customers as a salesman for laboratory analytical instruments.
To prepare for that potential sales career, Mr. Laya took distance learning courses to master electronics. After that Mr. Laya received and accepted an offer to become a service engineer for a world-leading manufacturer of laboratory analytical instruments. During the next two years, he earned a degree in electro techniques that enabled him to be more effective in optimizing instrument performance for customers.
Mr. Laya was thrilled when his employer bought the international rights to sell, distribute, and maintain biotechnology instruments. He enthusiastically asked for and received the job of being the Swiss sales manager for these products. Now he was where he had aimed to be. Taking courses in selling and instrument applications, his confidence and effectiveness grew. Mr. Laya was thrilled to meet the many professors, Ph.D.s, and physicians who were his customers. Eight happy years of work followed.
A new opportunity arose when Mr. Laya was offered a position selling biotech products in Argentina for his company. Mr. Laya eagerly stepped up to the challenge.
This time meaningful progress eluded him. The value of the Argentine currency plummeted and the office was unprofitable for his employer. Rather than take these losses as a failure, Mr. Laya proposed starting a company to represent his employer 's products in Argentina. But that approach faltered when the economy grew worse in Argentina, and his employer pulled out of the country.
After that experience, Mr. Laya returned to Switzerland and worked as an international pharmaceutical products sales manager.
In 2003, he decided that the time had come to earn an MBA to complement his diplomas in international trade and marketing. He saw the MBA as the key to being promoted into senior management at his current employer.
Having enjoyed his distance learning experiences, Mr. Laya sought a university that could provide a flexible schedule for an MBA so he could study part time while continuing his sales management job. When he discovered Rushmore University, he knew he had found the ideal school for him: Rushmore would allow him to focus courses solely on his planned career development. He also liked the idea of working individually with professors using the Oxford tutorial method to study what he wanted to learn rather than a preset curriculum.
Here 's what Mr. Laya has to say about his experiences with Rushmore:
"With my previous distance learning experience, accustomed to learning at my own pace, anywhere and anytime, I was searching for a university that could suit my continuing education needs. When I visited the Rushmore University Web site for the first time, I was convinced that Rushmore was the right choice ... The most important argument that caught my attention was the flexibility it offers you to create your own program and to focus your learning on subjects that will add value to your own personal situation. The faculty consists of selected and well-recognized business people with substantial experience in writing business books, but what is most relevant for business professionals is that the professors have a broad knowledge of the real business world. The learning method -- reading books and papers and writing a report or paper to apply your findings -- is a highly effective way to learn and understand a course."
While studying for his MBA in 2005, Mr. Laya lost his international sales management job. After a six-month search, he gained another international sales management job representing products used by environmental companies. This was a new experience for him and made him aware of the many important environmental problems for which solutions are needed.
This new job led Mr. Laya to take two courses related to environmental issues, and he developed a desire to become an environmental consultant. From there, he changed his curriculum to focus on how to establish such a consultancy.
Through those Rushmore courses, Mr. Laya was able to identify what knowledge, skills, and experience he lacked to make such a consultancy successful. As part of his MBA capstone paper summarizing what he learned at Rushmore, Mr. Laya developed a plan to fill in those gaps and to move into such a consultancy within a few years.
As a recent graduate, it 's too soon to report on how that development is going. Perhaps Mr. Laya will follow his plan. Or perhaps in following that plan he will find even more appealing work, as he has done before in his successful career. In either case, his grounding in business management will serve him well ... as will his understanding of what it takes for an enterprise to succeed, one of his knowledge bases as a new MBA from Rushmore.
Mr. Laya has shown a great talent for spotting opportunities he would enjoy better than his current work. With his MBA and ability to find distance learning opportunities that fit him and his goals well, Mr. Laya should make rapid progress from here in building on his sound foundation in career planning.
Such career development can provide an unexpected bonus: The education you gain can help you prepare for a new career if you no longer want to climb the old career ladder ... or find something you like a lot better. Carlos O. Laya had both experiences while studying at Rushmore University.
Mr. Laya started his career by enjoying a wonderful job as a laboratory technician at one of the world 's finest and most admired companies. But Mr. Laya longed to work instead with customers as a salesman for laboratory analytical instruments.
To prepare for that potential sales career, Mr. Laya took distance learning courses to master electronics. After that Mr. Laya received and accepted an offer to become a service engineer for a world-leading manufacturer of laboratory analytical instruments. During the next two years, he earned a degree in electro techniques that enabled him to be more effective in optimizing instrument performance for customers.
Mr. Laya was thrilled when his employer bought the international rights to sell, distribute, and maintain biotechnology instruments. He enthusiastically asked for and received the job of being the Swiss sales manager for these products. Now he was where he had aimed to be. Taking courses in selling and instrument applications, his confidence and effectiveness grew. Mr. Laya was thrilled to meet the many professors, Ph.D.s, and physicians who were his customers. Eight happy years of work followed.
A new opportunity arose when Mr. Laya was offered a position selling biotech products in Argentina for his company. Mr. Laya eagerly stepped up to the challenge.
This time meaningful progress eluded him. The value of the Argentine currency plummeted and the office was unprofitable for his employer. Rather than take these losses as a failure, Mr. Laya proposed starting a company to represent his employer 's products in Argentina. But that approach faltered when the economy grew worse in Argentina, and his employer pulled out of the country.
After that experience, Mr. Laya returned to Switzerland and worked as an international pharmaceutical products sales manager.
In 2003, he decided that the time had come to earn an MBA to complement his diplomas in international trade and marketing. He saw the MBA as the key to being promoted into senior management at his current employer.
Having enjoyed his distance learning experiences, Mr. Laya sought a university that could provide a flexible schedule for an MBA so he could study part time while continuing his sales management job. When he discovered Rushmore University, he knew he had found the ideal school for him: Rushmore would allow him to focus courses solely on his planned career development. He also liked the idea of working individually with professors using the Oxford tutorial method to study what he wanted to learn rather than a preset curriculum.
Here 's what Mr. Laya has to say about his experiences with Rushmore:
"With my previous distance learning experience, accustomed to learning at my own pace, anywhere and anytime, I was searching for a university that could suit my continuing education needs. When I visited the Rushmore University Web site for the first time, I was convinced that Rushmore was the right choice ... The most important argument that caught my attention was the flexibility it offers you to create your own program and to focus your learning on subjects that will add value to your own personal situation. The faculty consists of selected and well-recognized business people with substantial experience in writing business books, but what is most relevant for business professionals is that the professors have a broad knowledge of the real business world. The learning method -- reading books and papers and writing a report or paper to apply your findings -- is a highly effective way to learn and understand a course."
While studying for his MBA in 2005, Mr. Laya lost his international sales management job. After a six-month search, he gained another international sales management job representing products used by environmental companies. This was a new experience for him and made him aware of the many important environmental problems for which solutions are needed.
This new job led Mr. Laya to take two courses related to environmental issues, and he developed a desire to become an environmental consultant. From there, he changed his curriculum to focus on how to establish such a consultancy.
Through those Rushmore courses, Mr. Laya was able to identify what knowledge, skills, and experience he lacked to make such a consultancy successful. As part of his MBA capstone paper summarizing what he learned at Rushmore, Mr. Laya developed a plan to fill in those gaps and to move into such a consultancy within a few years.
As a recent graduate, it 's too soon to report on how that development is going. Perhaps Mr. Laya will follow his plan. Or perhaps in following that plan he will find even more appealing work, as he has done before in his successful career. In either case, his grounding in business management will serve him well ... as will his understanding of what it takes for an enterprise to succeed, one of his knowledge bases as a new MBA from Rushmore.
Mr. Laya has shown a great talent for spotting opportunities he would enjoy better than his current work. With his MBA and ability to find distance learning opportunities that fit him and his goals well, Mr. Laya should make rapid progress from here in building on his sound foundation in career planning.
A Reality Check Prior To Starting An Internet Business
The thrill of starting a business on the Internet is hard to ignore. Working from wherever you want, choosing which hours you work (even whilst sleeping) and making pots of money. So.... how could you possibly not be drawn into diving straight into building your website or writing a blog?
Not so fast - slow down a minute! You would not believe how many internet millionaire "wanna-bes" there are around, several of whom have spent years of their time and thousands of dollars trying to set up profitable internet businesses.
It appears that everyone is making money on line but that is simply not true. Failure is rarely admitted because no one likes to be a flop and also because on the internet perception means everything. Therefore, if you are seen to be a failure no-one will be interested in your business, resulting in a downward spiral of trade.
So what are the disadvantages and obstacles encountered by potential Internet entrepreneurs?
The first is the steep learning curve - and there is no single "how-to" guide to follow.
Making a success of an on line business needs mastery of many key abilities which are not directly required for off line businesses. For example, you have to build a user-friendly and relevant website or blog, then be able to drive traffic to it without making errors so your potential customer/client does not move away from your site due to loss of interest or confidence in you.
It 's Not Easy!
There are numerous ways to learn about starting a business on line such as, books, on line business models, "how-to" courses and the words of experts but it is hard for a newcomer to be sure which method to have faith in.
The second issue mentioned above which needs much attention, is the way to drive traffic to your website. The amount of competition in connection with search engines, keywords and phrases is often vastly underestimated by the novice internet marketer.
Top-ten rankings for the most popular keywords is extremely difficult to achieve, so the novice will need to master the art of advertising on line, which can be quite a costly exercise.
The third and final obstacle is the fact that it is very easy to become distracted when building an Internet business.
When you subscribe to Internet e-zines or log onto discussion forums, both of which are well known methods of building knowledge and connecting with potential customers or partners, you will be bombarded on a daily basis with new ways to make your fortune. You will be offered more top secret, never before revealed to the public methods to target visitors to your website than you could ever think possible.
Although some of these strategies may be excellent for particular on line businesses, many will not suit and much time and money is wasted by internet marketers trying to distinguish which one is right for them, when they really should putting more effort into mastering the method they already have in use.
If you are considering starting an internet business this article will serve as a "reality check" for you. It really is possible to make a substantial secondary or even primary income online - but you have much more chance of success if you are aware of the obstacles you are likely to encounter along the way.
Good luck!
Not so fast - slow down a minute! You would not believe how many internet millionaire "wanna-bes" there are around, several of whom have spent years of their time and thousands of dollars trying to set up profitable internet businesses.
It appears that everyone is making money on line but that is simply not true. Failure is rarely admitted because no one likes to be a flop and also because on the internet perception means everything. Therefore, if you are seen to be a failure no-one will be interested in your business, resulting in a downward spiral of trade.
So what are the disadvantages and obstacles encountered by potential Internet entrepreneurs?
The first is the steep learning curve - and there is no single "how-to" guide to follow.
Making a success of an on line business needs mastery of many key abilities which are not directly required for off line businesses. For example, you have to build a user-friendly and relevant website or blog, then be able to drive traffic to it without making errors so your potential customer/client does not move away from your site due to loss of interest or confidence in you.
It 's Not Easy!
There are numerous ways to learn about starting a business on line such as, books, on line business models, "how-to" courses and the words of experts but it is hard for a newcomer to be sure which method to have faith in.
The second issue mentioned above which needs much attention, is the way to drive traffic to your website. The amount of competition in connection with search engines, keywords and phrases is often vastly underestimated by the novice internet marketer.
Top-ten rankings for the most popular keywords is extremely difficult to achieve, so the novice will need to master the art of advertising on line, which can be quite a costly exercise.
The third and final obstacle is the fact that it is very easy to become distracted when building an Internet business.
When you subscribe to Internet e-zines or log onto discussion forums, both of which are well known methods of building knowledge and connecting with potential customers or partners, you will be bombarded on a daily basis with new ways to make your fortune. You will be offered more top secret, never before revealed to the public methods to target visitors to your website than you could ever think possible.
Although some of these strategies may be excellent for particular on line businesses, many will not suit and much time and money is wasted by internet marketers trying to distinguish which one is right for them, when they really should putting more effort into mastering the method they already have in use.
If you are considering starting an internet business this article will serve as a "reality check" for you. It really is possible to make a substantial secondary or even primary income online - but you have much more chance of success if you are aware of the obstacles you are likely to encounter along the way.
Good luck!
The Subjectivity and Relativity of Risk Assessments in Investment Decisions
It is a widely accepted belief that risk is an important factor in investment decisions. The income method of investment valuation stipulates that the price an investor is willing to pay for an investment is a function of the future expected cash flow, discounted by a rate that reflects the risk associated with receiving this expected cash flow. The Ibbotson build-up, Black/Green, and Schilt are three widely used methods valuators use to determine a specific discount rate to be applied to projected cash flows in valuing closely held companies.
The Ibbotson method utilizes historic rates of return on publicly traded investments, combined with risks associated with the specific industry and company being valued. The Schilt method derives a discount rate by adding various risk premia to the risk-free bond rate. Ranges of premia are specified according to risk factors, such as earnings stability, depth of management, competitiveness of the industry, and the size of the company being valued. Black/Green takes a similar, but more detailed approach.
Despite differences, all three methods falsely assume that only the inherent risks in operating the business need to be considered in the valuation process. I contend that the unique characteristics of potential investors have profound effects on how risk assessments are made in real world investment decisions. Not all potential investors have the same subjective attitudes towards risk. Not all potential investors have the same depth of financial resources, business experience and management acumen. These subjective and relative aspects of risk have a great bearing on how risk assessments are made. Their variability makes the risk of owning and operating a business a relative, rather than an absolute, quantity.
All three of the standard methods of developing a risk related discount rate assume that that the expert valuator analyzes the inherent risk associated with various operating characteristics of a closely held business. Based upon this analysis, the valuator develops a discount rate that will be used in capitalizing the projected future income stream and developing a fair market value.
However, in trying to model the behavior of potential investors in small closely held businesses, it is the attitudes of those potential investors toward risk and not the attitudes of CPA/CVA valuators that matter. As a group, CPA/CVA valuators do not necessarily have the same attitude toward risk as potential small business investors, who therefore may not make the same quantitative assessment of risk as a CPA/CVA valuator. Based on my experience with small business owners, I would predict that CPA/CVA valuators are more risk averse than most small business investors are.
Of course, not all small business investors have the same attitude toward risk either. Certain investors will largely ignore the risk of an investment if they perceive the potential return to be very high. Furthermore many small business investors have non-monetary motivations for investing in small businesses. For such investors, the inherent risk associated with receiving a future cash flow may not be assessed as it is for a passive investor seeking only a future cash flow.
Some advocates of the income method concede that certain investors do not view the risks of a particular investment as they do. Some proponents of the income method claim that investors who do not pay sufficient attention to the inherent risk of an investment, or who fail to give the same weight to various risk factors as expert valuators, are irrational. This view implies that CPA/CVA valuators are the arbiters of what constitutes rational investment conduct. While as a class we may be more risk averse than other groups of people, who is in a god like position to claim that being more risk averse is equivalent to being more rational?
Let 's turn to now to the relative aspects of risk. Everyone would agree that walking across a high wire without a net is a risky proposition compared to walking across a living room floor. Nonetheless, the degree of risk associated with walking across a high wire without a net is not absolute: it depends on who is doing the walking. Clearly, if a trained high wire performer does the walking, the activity is less risky than if an untrained person attempts the feat. In this sense, the risk of walking on a high wire is a relative phenomenon. A similar situation exists in any particular line of business.
Most of us would agree that there is more inherent risk in an industry sensitive to business cycles, like construction, than one where demand for the service is relatively constant, such as tax preparation. However, a buyer who has previous experience operating a construction business faces less risk than a buyer who has never run such a business. Likewise, if a potential buyer has a great deal of capital and access to lenders, that buyer will be able to weather the inevitable cyclic downturns better than a perspective buyer who lacks these assets. The simple point is that different potential investors in closely held businesses are in a position to change the inherent risk of operating a business. Some investors can decrease the inherent risk of operating the business, while others can increase the risk.
This point may be overlooked, because advocates of the income method fail to recognize that the investment contexts of publicly traded and closely held companies are dramatically different. An investor buying a few hundred shares of Microsoft is not going to have an impact on the operational performance of that company. An investor buying a controlling interest and becoming intimately involved in the day-to-day management of a closely held company is going to have a significant impact on the operations of that company.
Another relative aspect of risk involves diversification. As modern portfolio theory points out, the degree of diversification associated with a portfolio of assets has an impact on the risk associated with holding any particular asset. If a potential investment in a closely held company represents nearly 100% of an investor 's holdings, that investment is judged as much riskier than if it represents only 5% of the investor 's holdings.
Clearly, risk assessments play a role in real world investment decisions, but the nature and extent of that role is vastly more complicated than implied by the risk measurement approaches used in the income method of valuation. In the real world, differences in subjective risk tolerances will effect investor decisions. In the real world, investors have the ability to change the inherent risk of operating specific closely held businesses. In the real world, the risk of investing in a particular closely held business will depend on an investor 's ability to diversify his or her total portfolio of holdings. By failing to take into account these relative and subjective aspects of risk all variants of the income method give us a greatly oversimplified and inaccurate account of how investment decisions are actually made.
The Ibbotson method utilizes historic rates of return on publicly traded investments, combined with risks associated with the specific industry and company being valued. The Schilt method derives a discount rate by adding various risk premia to the risk-free bond rate. Ranges of premia are specified according to risk factors, such as earnings stability, depth of management, competitiveness of the industry, and the size of the company being valued. Black/Green takes a similar, but more detailed approach.
Despite differences, all three methods falsely assume that only the inherent risks in operating the business need to be considered in the valuation process. I contend that the unique characteristics of potential investors have profound effects on how risk assessments are made in real world investment decisions. Not all potential investors have the same subjective attitudes towards risk. Not all potential investors have the same depth of financial resources, business experience and management acumen. These subjective and relative aspects of risk have a great bearing on how risk assessments are made. Their variability makes the risk of owning and operating a business a relative, rather than an absolute, quantity.
All three of the standard methods of developing a risk related discount rate assume that that the expert valuator analyzes the inherent risk associated with various operating characteristics of a closely held business. Based upon this analysis, the valuator develops a discount rate that will be used in capitalizing the projected future income stream and developing a fair market value.
However, in trying to model the behavior of potential investors in small closely held businesses, it is the attitudes of those potential investors toward risk and not the attitudes of CPA/CVA valuators that matter. As a group, CPA/CVA valuators do not necessarily have the same attitude toward risk as potential small business investors, who therefore may not make the same quantitative assessment of risk as a CPA/CVA valuator. Based on my experience with small business owners, I would predict that CPA/CVA valuators are more risk averse than most small business investors are.
Of course, not all small business investors have the same attitude toward risk either. Certain investors will largely ignore the risk of an investment if they perceive the potential return to be very high. Furthermore many small business investors have non-monetary motivations for investing in small businesses. For such investors, the inherent risk associated with receiving a future cash flow may not be assessed as it is for a passive investor seeking only a future cash flow.
Some advocates of the income method concede that certain investors do not view the risks of a particular investment as they do. Some proponents of the income method claim that investors who do not pay sufficient attention to the inherent risk of an investment, or who fail to give the same weight to various risk factors as expert valuators, are irrational. This view implies that CPA/CVA valuators are the arbiters of what constitutes rational investment conduct. While as a class we may be more risk averse than other groups of people, who is in a god like position to claim that being more risk averse is equivalent to being more rational?
Let 's turn to now to the relative aspects of risk. Everyone would agree that walking across a high wire without a net is a risky proposition compared to walking across a living room floor. Nonetheless, the degree of risk associated with walking across a high wire without a net is not absolute: it depends on who is doing the walking. Clearly, if a trained high wire performer does the walking, the activity is less risky than if an untrained person attempts the feat. In this sense, the risk of walking on a high wire is a relative phenomenon. A similar situation exists in any particular line of business.
Most of us would agree that there is more inherent risk in an industry sensitive to business cycles, like construction, than one where demand for the service is relatively constant, such as tax preparation. However, a buyer who has previous experience operating a construction business faces less risk than a buyer who has never run such a business. Likewise, if a potential buyer has a great deal of capital and access to lenders, that buyer will be able to weather the inevitable cyclic downturns better than a perspective buyer who lacks these assets. The simple point is that different potential investors in closely held businesses are in a position to change the inherent risk of operating a business. Some investors can decrease the inherent risk of operating the business, while others can increase the risk.
This point may be overlooked, because advocates of the income method fail to recognize that the investment contexts of publicly traded and closely held companies are dramatically different. An investor buying a few hundred shares of Microsoft is not going to have an impact on the operational performance of that company. An investor buying a controlling interest and becoming intimately involved in the day-to-day management of a closely held company is going to have a significant impact on the operations of that company.
Another relative aspect of risk involves diversification. As modern portfolio theory points out, the degree of diversification associated with a portfolio of assets has an impact on the risk associated with holding any particular asset. If a potential investment in a closely held company represents nearly 100% of an investor 's holdings, that investment is judged as much riskier than if it represents only 5% of the investor 's holdings.
Clearly, risk assessments play a role in real world investment decisions, but the nature and extent of that role is vastly more complicated than implied by the risk measurement approaches used in the income method of valuation. In the real world, differences in subjective risk tolerances will effect investor decisions. In the real world, investors have the ability to change the inherent risk of operating specific closely held businesses. In the real world, the risk of investing in a particular closely held business will depend on an investor 's ability to diversify his or her total portfolio of holdings. By failing to take into account these relative and subjective aspects of risk all variants of the income method give us a greatly oversimplified and inaccurate account of how investment decisions are actually made.
How to Find Your Passion Before You Start Your Business
If you're like me, you have a lot of different interests and you're probably very good at a lot of different things, which means you could make money doing just about anything. You could probably even make money doing nothing much at all. The question is:
What do you ENJOY doing? What do you enjoy so much that you could turn it into a business?
Those are the most important questions for any aspiring new business owner when trying to decide what business to start. When confronting these questions I've found, in my experience, there 's a few other things to consider before trying to answer them:
a)When you start a business, you suddenly become an "expert" of sorts. People will look to you for advice and information about your field of expertise. The questions now become:
What would you be proud to be an expert about? What are you willing to continue learning about for as long as you're in business? What questions are you happy to answer over and over again?
I knew a man who opened a postal mailbox store and began offering office supplies and services to make more money. However, he was completely disinterested in learning about copy machines, different ways to bind reports or the various bulk-mailing options for marketing mailings. When I met him, this new part of his business was failing and he couldn't understand why. It was my job to tell him it was because HE didn't want that part of his business to succeed!
b)No matter what business you start, you put yourself in the role of Customer Service and Support. The questions now become:
What type of customers, if any, do you enjoy working with? To what degree to you want to work with them? What kind of people would you love to help over and over again?
I was once asked by a financial consultant to help him work on launching a public speaking career. I suggested he conduct a mock presentation in which I, and others, would sit and be his mock audience. At the end of the night, after being bombarded with questions about his slides, he realized that the presentation was targeted to the wrong group of people. His presentation was a "beginner 's guide" for those new to personal finance. His true passion was advanced financial planning. He realized that he wanted to work with people who had a highly developed, working knowledge of personal finance as he had found all of our questions boring, mundane and, ultimately, frustrating!
c)Quite often, the work will become so hard and so draining that you'll have to find within yourself a reason to do it even when you don't want to. The questions then become:
What means so much to you that you have to share it with others? What do you believe in enough to want it for others more than for yourself?
When I started my own dance troupe in early 2007, the start-up work was unimaginably grueling, both physically and psychologically. My partner was helping me choose songs for the show while I was choreographing. I was designing costumes while he was making them. Add to that web design, business card design, advertising, writing marketing copy, fielding sales calls and teaching a class twice a week while remaining a dancer myself!
Even though I would have a miniature nervous breakdown every Sunday, the one thing that kept me going was the employment of my dancers. The one thing I was most proud of, that I believed in the most, was their ability to make a living doing what they loved. I was giving that opportunity to my dancers, showing them it was possible. It didn't matter too much to me if I failed or the business failed. What mattered was they needed to know they COULD make money as dancers, that they COULD combine work and passion. They depended on me for that opportunity, and I believed in it so much I just couldn't give up. It 's that drive that got me through the first few months of the season, and what kept my dancers loyal and hardworking through all the early kinks.
If you're having trouble, like I have in the past, deciding what your passion is, what business you're truly interested in, ask yourself these questions over and over again. When you can answer all of them clearly, simply and quickly, you'll have your answer to:
What type business do I really want to start?
What do you ENJOY doing? What do you enjoy so much that you could turn it into a business?
Those are the most important questions for any aspiring new business owner when trying to decide what business to start. When confronting these questions I've found, in my experience, there 's a few other things to consider before trying to answer them:
a)When you start a business, you suddenly become an "expert" of sorts. People will look to you for advice and information about your field of expertise. The questions now become:
What would you be proud to be an expert about? What are you willing to continue learning about for as long as you're in business? What questions are you happy to answer over and over again?
I knew a man who opened a postal mailbox store and began offering office supplies and services to make more money. However, he was completely disinterested in learning about copy machines, different ways to bind reports or the various bulk-mailing options for marketing mailings. When I met him, this new part of his business was failing and he couldn't understand why. It was my job to tell him it was because HE didn't want that part of his business to succeed!
b)No matter what business you start, you put yourself in the role of Customer Service and Support. The questions now become:
What type of customers, if any, do you enjoy working with? To what degree to you want to work with them? What kind of people would you love to help over and over again?
I was once asked by a financial consultant to help him work on launching a public speaking career. I suggested he conduct a mock presentation in which I, and others, would sit and be his mock audience. At the end of the night, after being bombarded with questions about his slides, he realized that the presentation was targeted to the wrong group of people. His presentation was a "beginner 's guide" for those new to personal finance. His true passion was advanced financial planning. He realized that he wanted to work with people who had a highly developed, working knowledge of personal finance as he had found all of our questions boring, mundane and, ultimately, frustrating!
c)Quite often, the work will become so hard and so draining that you'll have to find within yourself a reason to do it even when you don't want to. The questions then become:
What means so much to you that you have to share it with others? What do you believe in enough to want it for others more than for yourself?
When I started my own dance troupe in early 2007, the start-up work was unimaginably grueling, both physically and psychologically. My partner was helping me choose songs for the show while I was choreographing. I was designing costumes while he was making them. Add to that web design, business card design, advertising, writing marketing copy, fielding sales calls and teaching a class twice a week while remaining a dancer myself!
Even though I would have a miniature nervous breakdown every Sunday, the one thing that kept me going was the employment of my dancers. The one thing I was most proud of, that I believed in the most, was their ability to make a living doing what they loved. I was giving that opportunity to my dancers, showing them it was possible. It didn't matter too much to me if I failed or the business failed. What mattered was they needed to know they COULD make money as dancers, that they COULD combine work and passion. They depended on me for that opportunity, and I believed in it so much I just couldn't give up. It 's that drive that got me through the first few months of the season, and what kept my dancers loyal and hardworking through all the early kinks.
If you're having trouble, like I have in the past, deciding what your passion is, what business you're truly interested in, ask yourself these questions over and over again. When you can answer all of them clearly, simply and quickly, you'll have your answer to:
What type business do I really want to start?
Some Preliminary Thoughts before Starting a Restaurant
So romantic ideas aside, starting any business takes a good deal of planning, and a restaurant or any food service takes even more thoughtful fact gathering. This article will give you an idea springboard to look further into the prospects of bringing your culinary dreams come true.
Before you buy any restaurant supplies or building materials, try finding a consultant to talk to before you start anything that you can't back out of. Basically, any consultant in the restaurant field can be found in your local yellow pages. Word of mouth is better. If you have a network of people you can talk to in the industry, look for someone who can recommend a good consultant they've previously worked with. This is already assuming that you have the logistics of where your place is going to be and a mental picture of your restaurant concept.
From here, I will concentrate on the stocking of the kitchen portion of your restaurant.
Kitchen Ideas: Buying the Kitchen Gear
The single most important aspect, more than location, atmosphere and staff, is the food that you are planning to serve. That is going to be the driving force, the advertisement, and the magic that keeps people coming back. We'll take a brief look at purchasing restaurant equipment, and if you are serving drinks, some detail about bar supplies.
The equipment has to have the facility to deliver, but not necessarily over elaborate -- extra parts are a pain to watch, maintain and prevent getting lost or broken. Another aspect is to buy products that have some lasting power. Of course, being a beginning entrepreneur, it may not fit the bill getting that $20,000 range and hood, but getting some of the basic tools with some integrity, will benefit you in quality in the production process.
Also, you will want to know what your city codes are in regards to some of the stuff you need to stock your kitchen, especially with storage and cooking products. For instance, the city where you live may have some requirements on what size hood you have over your oven, or what type of gas hook ups you need. Each city may have slightly different standards, and restaurant equipment vendors are not going to give you the heads up before buying.
Some basic points to consider before buying restaurant supplies are:
- Be wary of buying any used equipment from a seller unless you know them
- Try giving a call to your local fire precinct, health department or building inspector before buying; they may have a list or reference guide they can refer you to
- Check the refrigeration materials on any cooler (compressor-type coolers usually) and see if the electric wiring can handle heavy loads when it gets really hot outside
- Watch out for overbuying; make sure that you keep it lean and efficient until you get the hang of your process after running the business for a while
Bar Supplies: The Shopper 's List
This is basically a whole new subject, but for the restaurant owner they may go into the game tandem. Here are a few products you may want to put on your buying list whether this is in the works now or if you plan to expand in the future.
Glasses are essential. Depending on the drinks you serve and the atmosphere you want, the style and quality vary. However, there will be a good deal put into selecting these. It will be a fine balance between style and affordability -- think dropped glasses.
Bottle openers. Nothing further needs to be said.
Cocktail mixing supplies are another. If you have a liquor license that includes cocktails, invest in buying measuring spoons or thimbles, cocktail shakers with built-in ice filters are good. Also, look to pour measurers that insert into the bottle neck. It will keep the cocktails consistent as well as the routine restock of the liquor.
Before you buy any restaurant supplies or building materials, try finding a consultant to talk to before you start anything that you can't back out of. Basically, any consultant in the restaurant field can be found in your local yellow pages. Word of mouth is better. If you have a network of people you can talk to in the industry, look for someone who can recommend a good consultant they've previously worked with. This is already assuming that you have the logistics of where your place is going to be and a mental picture of your restaurant concept.
From here, I will concentrate on the stocking of the kitchen portion of your restaurant.
Kitchen Ideas: Buying the Kitchen Gear
The single most important aspect, more than location, atmosphere and staff, is the food that you are planning to serve. That is going to be the driving force, the advertisement, and the magic that keeps people coming back. We'll take a brief look at purchasing restaurant equipment, and if you are serving drinks, some detail about bar supplies.
The equipment has to have the facility to deliver, but not necessarily over elaborate -- extra parts are a pain to watch, maintain and prevent getting lost or broken. Another aspect is to buy products that have some lasting power. Of course, being a beginning entrepreneur, it may not fit the bill getting that $20,000 range and hood, but getting some of the basic tools with some integrity, will benefit you in quality in the production process.
Also, you will want to know what your city codes are in regards to some of the stuff you need to stock your kitchen, especially with storage and cooking products. For instance, the city where you live may have some requirements on what size hood you have over your oven, or what type of gas hook ups you need. Each city may have slightly different standards, and restaurant equipment vendors are not going to give you the heads up before buying.
Some basic points to consider before buying restaurant supplies are:
- Be wary of buying any used equipment from a seller unless you know them
- Try giving a call to your local fire precinct, health department or building inspector before buying; they may have a list or reference guide they can refer you to
- Check the refrigeration materials on any cooler (compressor-type coolers usually) and see if the electric wiring can handle heavy loads when it gets really hot outside
- Watch out for overbuying; make sure that you keep it lean and efficient until you get the hang of your process after running the business for a while
Bar Supplies: The Shopper 's List
This is basically a whole new subject, but for the restaurant owner they may go into the game tandem. Here are a few products you may want to put on your buying list whether this is in the works now or if you plan to expand in the future.
Glasses are essential. Depending on the drinks you serve and the atmosphere you want, the style and quality vary. However, there will be a good deal put into selecting these. It will be a fine balance between style and affordability -- think dropped glasses.
Bottle openers. Nothing further needs to be said.
Cocktail mixing supplies are another. If you have a liquor license that includes cocktails, invest in buying measuring spoons or thimbles, cocktail shakers with built-in ice filters are good. Also, look to pour measurers that insert into the bottle neck. It will keep the cocktails consistent as well as the routine restock of the liquor.
Vending Candy Wholesale and The Bulk Vending Business!
Purchasing bulk candy from an Internet wholesale supplier gets you a variety of specialty candy at low prices. Ordering bulk candy online means that your yummy goodies are delivered right to your home. Purchasing candy in bulk translates into substantial cost savings. You can re-sell the candies at Little League snack bars, offer sweet party favors at a wedding ceremony or other prominent celebrations, use candy as component of a marketing campaign, set out big tubs of candies at your place of business, and much more. One of the most beneficial reasons to order big quantities of candy is to stock up for your special occasion, trade show, marketing event, fundraisings, or vacation without having to leave your home or office.
A proven source of income, the bulk candy vending machines industry is a vast multi-million dollar annual industry. Bulk vend is a supplier of bulk candy and bulk candy vending machines at wholesale rates, to help you begin or improve your bulk candy vending machine business. Nuts, chocolate, chewing gums, stickers, toys and more are all available from Bulk vend at wholesale rates to make your bulk candy machine business productive. The bulk vend representatives will reach your locations for setup by either telemarketing or in person, depending upon location, to help you bring your bulk candy machine business off the base.
For someone who trade candy in their businesses or by candy vending machines, it is very significant to find a reliable supplier. This is because given the popularity of candy among consumers; supermarkets, groceries and vending machines that provide those, sellers want to have a regular supply of these products. In addition to being able to discover a reliable supplier, second important thing is locating a supplier that offers the better prices for his products, since this can insure that retailers can also sell the candy at a beneficial price. However, locating a supplier that suits this profile can be challenging as there are a large number of them to select from, which can make the procedure of canvassing for a supplier not only time-consuming but exhausting as well.
One of the best ways to discover is to explore the Internet for wholesale companies that deal candy. This is because exploring the Internet not only assists you to a wide array of selections with regard to different types of candy but it can also allow you to compare a number of companies well at the comfort of your home. In addition to this, the ease by which dealings are made online also provides a convenient way to buy candy.
One of the basic things to study when you search for wholesalers is the price of their products; however, given the big competition online, you can expect that the costs of different candy products would be very competitive. Another significant consideration is on how these companies would send the products to you, as much as possible; you should find a company that has its own delivery system. Other considerations include the way of payment for the products, making sure that you get the most fresh products and the reliability of the company in being able to ship their products and provide services. Alternately finding a supplier in your area can be beneficial so your can directly see the product and pick it up right away.
A proven source of income, the bulk candy vending machines industry is a vast multi-million dollar annual industry. Bulk vend is a supplier of bulk candy and bulk candy vending machines at wholesale rates, to help you begin or improve your bulk candy vending machine business. Nuts, chocolate, chewing gums, stickers, toys and more are all available from Bulk vend at wholesale rates to make your bulk candy machine business productive. The bulk vend representatives will reach your locations for setup by either telemarketing or in person, depending upon location, to help you bring your bulk candy machine business off the base.
For someone who trade candy in their businesses or by candy vending machines, it is very significant to find a reliable supplier. This is because given the popularity of candy among consumers; supermarkets, groceries and vending machines that provide those, sellers want to have a regular supply of these products. In addition to being able to discover a reliable supplier, second important thing is locating a supplier that offers the better prices for his products, since this can insure that retailers can also sell the candy at a beneficial price. However, locating a supplier that suits this profile can be challenging as there are a large number of them to select from, which can make the procedure of canvassing for a supplier not only time-consuming but exhausting as well.
One of the best ways to discover is to explore the Internet for wholesale companies that deal candy. This is because exploring the Internet not only assists you to a wide array of selections with regard to different types of candy but it can also allow you to compare a number of companies well at the comfort of your home. In addition to this, the ease by which dealings are made online also provides a convenient way to buy candy.
One of the basic things to study when you search for wholesalers is the price of their products; however, given the big competition online, you can expect that the costs of different candy products would be very competitive. Another significant consideration is on how these companies would send the products to you, as much as possible; you should find a company that has its own delivery system. Other considerations include the way of payment for the products, making sure that you get the most fresh products and the reliability of the company in being able to ship their products and provide services. Alternately finding a supplier in your area can be beneficial so your can directly see the product and pick it up right away.
Beyond This Point - Dragons Or Success?
Much of the earth 's surface which back in the days of Columbus, Magellan and other great voyagers was thought to be flat, was also at that point in time, unexplored territory.
The story told by many told of scary and dangerous creatures living in the uncharted waters.
As a result of this the makers of maps frequently placed the words "Beyond This Point There Be Dragons" in the unfamiliar areas on their maps and charts. This acted as a warning for early explorers to avoid these areas come what may and resulted in the concealment of many hidden wonders for years and years to come.
Although we are all now aware than we are definitely not going to fall off the edge of the world, we have our own "Beyond This Point" warnings going on. For example, the thought of venturing into new waters and leaving our comfort zone behind, sometimes brings on the experience of anxiety and fear.
Such fear bring into being imaginary dragons such as dread of failure in something we have never before attempted, fear of mockery from peers if we do not do well, fear about discovering the right business and making decisions about how to get started and with this, and the greatest fear ever, the loss of the security you experience in your current job.
Even though you may not much enjoy what you do, the dragons keep you caged in the day to day toil which is necessary to provide you with your livelihood. That horrible job takes on the role of a tatty worn out but comfy chair. We are scared that one day the arms of the chair will fall off but we have been sitting there for so many years, the sanctuary the chair offers keeps us in that place.
The chair lulls us into a false sense of security that one day a fantastic happening will take place without us having to actually do anything. Our lives will change before our productive years are over, and we will then achieve the success of being our own boss. This will not happen. This is what is meant by a comfort zone
What a waste! The means of building your business are at your fingertips right here and now through the sheer magic of the Internet and all that is required of you is to get on with it. Concentrate on your aims and ambitions and find the necessary sources to glean the information you need to start you on your journey.
An excellent tool to get you going is Google Adsense and used properly you will achieve excellent results. You will encounter a learning curve as you would with any worthwhile enterprise. However, if you do not use your tools property your project is sure to fail.
It has to be said that there is no possible excuse for not using the Google program properly. The information is out there so it is up to you to do your homework and develop your skills to enable you to succeed. If you fail, it will only be because you have not applied yourself as you should have done and put in the time and effort to get your newfound knowledge into play.
Many victorious entrepreneurs get a great deal of pleasure and satisfaction by giving something back. They share the knowledge they have learned and the success they have achieved by means of providing both free and paid programs for others to follow in their footsteps. It only takes a minute to carry out a quick search on any of the popular search engines which will produce numerous good sources. It also pays dividends to spend some time on the forums where lots of good information is passed around.
The waters are no longer uncharted. The pioneers have produced an informative and detailed chart which is just waiting to be picked up and followed. But, of course, in order to do this you need to leave your comfort zone.
It 's now up to you. You have the choice to keep dreaming from your cozy arm chair about owning your own business, or take on your personal dragons and through the Internet 's magic, making sure your chart reads, "Beyond This Point There Be Success".
The story told by many told of scary and dangerous creatures living in the uncharted waters.
As a result of this the makers of maps frequently placed the words "Beyond This Point There Be Dragons" in the unfamiliar areas on their maps and charts. This acted as a warning for early explorers to avoid these areas come what may and resulted in the concealment of many hidden wonders for years and years to come.
Although we are all now aware than we are definitely not going to fall off the edge of the world, we have our own "Beyond This Point" warnings going on. For example, the thought of venturing into new waters and leaving our comfort zone behind, sometimes brings on the experience of anxiety and fear.
Such fear bring into being imaginary dragons such as dread of failure in something we have never before attempted, fear of mockery from peers if we do not do well, fear about discovering the right business and making decisions about how to get started and with this, and the greatest fear ever, the loss of the security you experience in your current job.
Even though you may not much enjoy what you do, the dragons keep you caged in the day to day toil which is necessary to provide you with your livelihood. That horrible job takes on the role of a tatty worn out but comfy chair. We are scared that one day the arms of the chair will fall off but we have been sitting there for so many years, the sanctuary the chair offers keeps us in that place.
The chair lulls us into a false sense of security that one day a fantastic happening will take place without us having to actually do anything. Our lives will change before our productive years are over, and we will then achieve the success of being our own boss. This will not happen. This is what is meant by a comfort zone
What a waste! The means of building your business are at your fingertips right here and now through the sheer magic of the Internet and all that is required of you is to get on with it. Concentrate on your aims and ambitions and find the necessary sources to glean the information you need to start you on your journey.
An excellent tool to get you going is Google Adsense and used properly you will achieve excellent results. You will encounter a learning curve as you would with any worthwhile enterprise. However, if you do not use your tools property your project is sure to fail.
It has to be said that there is no possible excuse for not using the Google program properly. The information is out there so it is up to you to do your homework and develop your skills to enable you to succeed. If you fail, it will only be because you have not applied yourself as you should have done and put in the time and effort to get your newfound knowledge into play.
Many victorious entrepreneurs get a great deal of pleasure and satisfaction by giving something back. They share the knowledge they have learned and the success they have achieved by means of providing both free and paid programs for others to follow in their footsteps. It only takes a minute to carry out a quick search on any of the popular search engines which will produce numerous good sources. It also pays dividends to spend some time on the forums where lots of good information is passed around.
The waters are no longer uncharted. The pioneers have produced an informative and detailed chart which is just waiting to be picked up and followed. But, of course, in order to do this you need to leave your comfort zone.
It 's now up to you. You have the choice to keep dreaming from your cozy arm chair about owning your own business, or take on your personal dragons and through the Internet 's magic, making sure your chart reads, "Beyond This Point There Be Success".
5 Myths About Setting Up Your Own Personal Domain And Website Busted
Having your own domain - that is your own name (like "FirstNameSurname.com") and setting up a Blog at that domain can bring you many benefits.
Financially, your own websites opens up a plethora of money making opportunities for you and your career. Socially, you will get to meet many different people from around the world and form friendships and business partnerships.
It will also bolster your confidence and make you stand out in a crowd. After all, not many people can say that they have secured a domain that is their own name (how many of your friends have a dotcom to their name? Right, few to none). And yet, even while knowing all of its benefits, very few people actually go on and purchase their own eponymous domain and set up their websites.
Why is this? Why are people not taking advantage of the great benefits of their own personalized domain?
This could be due very much to the fact that many people simple don't know how simple, easy and effective it can be! Here are some of the major MYTHS about securing domains:
1. It 's Only For Businesses
This is one of the biggest myths around. Anyone can have a domain, just as anyone can have a Blog. In fact, you should be having a Blog at your very own domain INSTEAD of blogging on a shared domain such as blogger.com, since you're not giving up control of your own content to blogger.com by doing so.
So anyone can have a domain, and especially a domain that is your own name. Once you have it, it will bring up a host of business opportunities for you that you never knew existed.
2. It 's Hard To Do
Perhaps around 5 to 10 years ago, the above may have been true. But with such amazing advancements in technology, creating and maintaining your website is a cinch.
Wordpress is one example of a great blogging platform you can set up on your own domain to start blogging. It 's extremely simple to use - just like using any writing program e.g. Microsoft 's "WORD" word processing program
3. It Takes A Lot Of Time To Set Up
This, again, is another myth that no longer holds true with the advent of new technology. You can have your domain and blog set up for you with many hosting providers in just a day or two!
And all you'll really have to do is fill out a form and pay for them, which brings us to our next point.
4. It 's Expensive
Domains are at their lowest prices ever. You can easily secure your domain at less than $10/year. That 's less than what you would pay for dinner!
And charges for the hosting of your web site or Blog are just a few dollars every month. The amount you would invest in your domain is thus INSIGNIFICANT when compared to the great benefits you will reap.
5. It 's Hard To Maintain
Once your Blog is up and running, all you'll need to do is to write a blog post every other day, which will take up barely any time once you get the hang of it!
A domain is cheap, and a Blog is easy to start up and maintain by anybody. In fact, everyone SHOULD get this combination for themselves as soon as possible, before their names are snapped up by their namesakes from around the world!
Financially, your own websites opens up a plethora of money making opportunities for you and your career. Socially, you will get to meet many different people from around the world and form friendships and business partnerships.
It will also bolster your confidence and make you stand out in a crowd. After all, not many people can say that they have secured a domain that is their own name (how many of your friends have a dotcom to their name? Right, few to none). And yet, even while knowing all of its benefits, very few people actually go on and purchase their own eponymous domain and set up their websites.
Why is this? Why are people not taking advantage of the great benefits of their own personalized domain?
This could be due very much to the fact that many people simple don't know how simple, easy and effective it can be! Here are some of the major MYTHS about securing domains:
1. It 's Only For Businesses
This is one of the biggest myths around. Anyone can have a domain, just as anyone can have a Blog. In fact, you should be having a Blog at your very own domain INSTEAD of blogging on a shared domain such as blogger.com, since you're not giving up control of your own content to blogger.com by doing so.
So anyone can have a domain, and especially a domain that is your own name. Once you have it, it will bring up a host of business opportunities for you that you never knew existed.
2. It 's Hard To Do
Perhaps around 5 to 10 years ago, the above may have been true. But with such amazing advancements in technology, creating and maintaining your website is a cinch.
Wordpress is one example of a great blogging platform you can set up on your own domain to start blogging. It 's extremely simple to use - just like using any writing program e.g. Microsoft 's "WORD" word processing program
3. It Takes A Lot Of Time To Set Up
This, again, is another myth that no longer holds true with the advent of new technology. You can have your domain and blog set up for you with many hosting providers in just a day or two!
And all you'll really have to do is fill out a form and pay for them, which brings us to our next point.
4. It 's Expensive
Domains are at their lowest prices ever. You can easily secure your domain at less than $10/year. That 's less than what you would pay for dinner!
And charges for the hosting of your web site or Blog are just a few dollars every month. The amount you would invest in your domain is thus INSIGNIFICANT when compared to the great benefits you will reap.
5. It 's Hard To Maintain
Once your Blog is up and running, all you'll need to do is to write a blog post every other day, which will take up barely any time once you get the hang of it!
A domain is cheap, and a Blog is easy to start up and maintain by anybody. In fact, everyone SHOULD get this combination for themselves as soon as possible, before their names are snapped up by their namesakes from around the world!
Three Common Business Myths Exposed
I can remember seeing many ads online that made me think that, if I joined this program or that opportunity, I would be living the good life in just a few weeks or so. They picture lavish estates, expensive cars, beautiful women, and even private planes. You're nodding your head. You've seen them too?
Having your own business has been part of the American Dream for quite a long time. Many people dream of leaving the rat race to build their own business empire. Sadly though, many of these people go into this with many misconceptions and false beliefs. They soon discover that many of these myths are just hype and quickly become disillusioned.
My belief is that this is one reason so many people fail. Let 's explore some of the most common myths.
Myth # 1: "Once I have my own business up and running, I will have more free time on my hands." I wouldn't be planning that vacation any time soon if I were you. The stark reality is that it takes more time to get a business off the ground and running than it does working your day job. It takes far more effort and drive than you might think.
As a new business owner, you will have to be manager, financial officer, advertising planner, and laborer. That 's just the tip of the iceberg! Once you get that business up and running, you will have to spend alot more time than you think in keeping it running.
You also have to have a business plan. Without one, you are sunk before you begin. Organization and planning are key to any successful business venture.
Myth # 2: "I can get a grant from the Federal Government to start a business." I have to admit, I bought into this one too. I really did some digging to find that agency. The truth is, the federal government does not have any such agencies that directly lends money to any business.
Some states do have have special programs designed to help people with disabilities, veterans, and minorities. BUT, these organization have very specific rules and guidelines that must be adhered to. Many of these organizations will expect you to have a well thought out business plan.
It is important to remember that each state and county has different approaches to this. Many can help you, by directing you to other resources that can help you along the way.
Furthermore, any website or offer that guarantees government grants should be treated with skepticism. Remember the old adage, "If it sounds too good to be true, it probably is."
Myth # 3: " I can write everything off come tax time." Thinking like this can land you an IRS audit faster than you might think. The IRS has really started to look at iffy tax deductions, including business and job related tax deductions.
The best approach to this issue is to seek the advice of a qualified tax preparer or CPA. They can best guide you through the tax deductions process and show you what you can claim and what you cannot. Should you get audited, most offer the additional service of going with you to meet the Taxman.
Many people have bought into a number of myths and have lost alot of money trying to build a business. Before anyone seeks the "American Dream" of starting or owning one, they should seriously research the idea thoroughly before taking the plunge.
Having your own business has been part of the American Dream for quite a long time. Many people dream of leaving the rat race to build their own business empire. Sadly though, many of these people go into this with many misconceptions and false beliefs. They soon discover that many of these myths are just hype and quickly become disillusioned.
My belief is that this is one reason so many people fail. Let 's explore some of the most common myths.
Myth # 1: "Once I have my own business up and running, I will have more free time on my hands." I wouldn't be planning that vacation any time soon if I were you. The stark reality is that it takes more time to get a business off the ground and running than it does working your day job. It takes far more effort and drive than you might think.
As a new business owner, you will have to be manager, financial officer, advertising planner, and laborer. That 's just the tip of the iceberg! Once you get that business up and running, you will have to spend alot more time than you think in keeping it running.
You also have to have a business plan. Without one, you are sunk before you begin. Organization and planning are key to any successful business venture.
Myth # 2: "I can get a grant from the Federal Government to start a business." I have to admit, I bought into this one too. I really did some digging to find that agency. The truth is, the federal government does not have any such agencies that directly lends money to any business.
Some states do have have special programs designed to help people with disabilities, veterans, and minorities. BUT, these organization have very specific rules and guidelines that must be adhered to. Many of these organizations will expect you to have a well thought out business plan.
It is important to remember that each state and county has different approaches to this. Many can help you, by directing you to other resources that can help you along the way.
Furthermore, any website or offer that guarantees government grants should be treated with skepticism. Remember the old adage, "If it sounds too good to be true, it probably is."
Myth # 3: " I can write everything off come tax time." Thinking like this can land you an IRS audit faster than you might think. The IRS has really started to look at iffy tax deductions, including business and job related tax deductions.
The best approach to this issue is to seek the advice of a qualified tax preparer or CPA. They can best guide you through the tax deductions process and show you what you can claim and what you cannot. Should you get audited, most offer the additional service of going with you to meet the Taxman.
Many people have bought into a number of myths and have lost alot of money trying to build a business. Before anyone seeks the "American Dream" of starting or owning one, they should seriously research the idea thoroughly before taking the plunge.
Starting Out With The Right Machines For Your Vending Business
Here are a few things to think about when your trying to find the right vending machines to start out with in your business. What is my budget for capital expenses?
For example if you are buying machines. If you only have a few thousand dollars to get started, then coffee and food vending is probably off the table right now. That is sort of interrelated with the last statement and question there.
What is your budget? If you are starting out everyone has as different budget. If you are starting out you might think, I have $500 to spend or I have a couple of thousand and I want to buy a couple of machines and get started. That 's fine. It is totally fine, because you can do that, you can totally get started with not a lot of money.
You might have to just search a little more to try to find the machines that suit your needs and get them set up. That is fine. If you only have a few thousand dollars you probably don't want to get started in the coffee and food right away just because of the price of the machine.
Here in Canada, a half decent used coffee machine, I don't know, $1,500 to $3,000, and for the new ones, they go from $4,000 to like $7,000. That is a lot of money for a coffee machine, especially when people really like Tim Horton 's , Star Bucks and all these other coffee shops because they go out a lot to those places. You have to remember that people will never stop doing that.
Your vending machine is there for convenience and a lot of people, sometimes companies sometimes think, Oh I just want the coffee machine because the staff will like it anyway. I would always start out with a pop and snack first or a say a pop machine depending on the size of the location. Then look at bringing in a snack machine. Look at the sales and monitor the sales.
You can be honest with the company and just say, You know what, I am running a business so I would like to help you the best that I can so let 's start with a pop machine and snack machine and see how things go.
We will monitor the sales for say, three months. I will keep you in the loop to see how things are going. I will let you know if your account justifies setting up a coffee machine. Just simply explain to them. I am running a business. Coffee machines are really expensive, so I want to make sure that it seems like a feasible solution to what I want to do with the business and at the same time help you.
You will be surprised. People are receptive to that. Be honest. They understand. Hey, I understand you are running a business. Most people are and some people are not. Some people just say, No, I want this machine. They have their own idea in their head of what they want. I want this type of machine and I need it by this date and I need you to pay me money for having the machine here in my commission and all that.
You know what? I am sorry but a lot of those companies are a pain. You don't need that kind of aggravation for your business. You will see along the way here, I know like people that are getting started out are eager, you are anxious to want to actually get this up and running, but you'll see down the road that some places are more of a hassle than others.
You want to try to make your life as easy as possible. That is one piece of advice to consider.
For example if you are buying machines. If you only have a few thousand dollars to get started, then coffee and food vending is probably off the table right now. That is sort of interrelated with the last statement and question there.
What is your budget? If you are starting out everyone has as different budget. If you are starting out you might think, I have $500 to spend or I have a couple of thousand and I want to buy a couple of machines and get started. That 's fine. It is totally fine, because you can do that, you can totally get started with not a lot of money.
You might have to just search a little more to try to find the machines that suit your needs and get them set up. That is fine. If you only have a few thousand dollars you probably don't want to get started in the coffee and food right away just because of the price of the machine.
Here in Canada, a half decent used coffee machine, I don't know, $1,500 to $3,000, and for the new ones, they go from $4,000 to like $7,000. That is a lot of money for a coffee machine, especially when people really like Tim Horton 's , Star Bucks and all these other coffee shops because they go out a lot to those places. You have to remember that people will never stop doing that.
Your vending machine is there for convenience and a lot of people, sometimes companies sometimes think, Oh I just want the coffee machine because the staff will like it anyway. I would always start out with a pop and snack first or a say a pop machine depending on the size of the location. Then look at bringing in a snack machine. Look at the sales and monitor the sales.
You can be honest with the company and just say, You know what, I am running a business so I would like to help you the best that I can so let 's start with a pop machine and snack machine and see how things go.
We will monitor the sales for say, three months. I will keep you in the loop to see how things are going. I will let you know if your account justifies setting up a coffee machine. Just simply explain to them. I am running a business. Coffee machines are really expensive, so I want to make sure that it seems like a feasible solution to what I want to do with the business and at the same time help you.
You will be surprised. People are receptive to that. Be honest. They understand. Hey, I understand you are running a business. Most people are and some people are not. Some people just say, No, I want this machine. They have their own idea in their head of what they want. I want this type of machine and I need it by this date and I need you to pay me money for having the machine here in my commission and all that.
You know what? I am sorry but a lot of those companies are a pain. You don't need that kind of aggravation for your business. You will see along the way here, I know like people that are getting started out are eager, you are anxious to want to actually get this up and running, but you'll see down the road that some places are more of a hassle than others.
You want to try to make your life as easy as possible. That is one piece of advice to consider.
Teen Entrepreneurs: A Formula For Success
Teen entrepreneurs have a fantastic advantage if they follow a few guidelines. By the time you leave school or finish higher education you could have a strong secondary income already in place that could allow you to travel, double your earning power and in the best cases give you the time freedom to do what you like with your life.
A Big Question That Will Increase Teen Entrepreneurs Chances
Are you a natural entrepreneur? During my research on this subject perhaps the single biggest discovery I made was the effects of each person 's individual temperament on business success or failure. Natural stereotyped entrepreneurs are born. They tend to have what is called a choleric temperament, which is common with most tycoons - think Donald Trump. So what do you do as a potential teen entrepreneur if you do not have this temperament? There is only one answer and that is to become skilled.
In order to become skilled you need time, and that is where teen entrepreneurs have an advantage. If you have an entrepreneurial tendency as opposed to being a natural entrepreneur, you will need to do one exercise first and foremost - assess yourself. This is not easy at all. It requires each of us, to go on our own into a quiet dark room and take a long, hard, and honest, look at ourselves. It is best to start out knowing what we really are capable of, rather than deluding ourselves as to what we would like to be.
A Reliable Formula:
1) Assess your temperament type. Trying to force a square shape through a round hole is what, in effect, many people try and do when starting a new business that is wrong for their character. They fail before they start.
2) Understand the strengths and weaknesses the above brings. Skill is a virtue of talent and suitability to the demands of each business type.
3) Select a business to fit your temperament type, in addition to any particular experiences or contacts you might have. Choose well and your character will make the business, choose badly and it will break it.
4) Start out spending as little as possible. Obviously the less you risk the less you can lose. Beware of the advertisers who will always encourage you to spend more than you should.
5) Allow 2-3 years of trial and error to become skilled. You may be a genius and make it in less time, but if you allow a realistic timeframe at the start you will not become disappointed and quit.
6) Reinvest 80% of your profits in diversified income-producing assets. It is a huge temptation to spend any new money, especially for impulsive types. If your main business goes pear-shaped you are back to square one in a blink of an eye. I speak from experience here.
Example
Budding teen entrepreneurs who are say, 13, can start a potential income-producing website. Providing the site concept is well researched and viable, and the site is properly structured with good keyword focused content and a sound link strategy, then by the time that person is 16, they will have 3 years sound site history and backlinks, which will bring in free organic traffic. Few new sites can do this, especially in competitive fields. So if you are leaving school or starting 6th form, college or University, you will have a solid basis for an income producing business. And, an this is just as important, you will have through the process added a skill to your CV that will stay with you throughout your life.
A Big Question That Will Increase Teen Entrepreneurs Chances
Are you a natural entrepreneur? During my research on this subject perhaps the single biggest discovery I made was the effects of each person 's individual temperament on business success or failure. Natural stereotyped entrepreneurs are born. They tend to have what is called a choleric temperament, which is common with most tycoons - think Donald Trump. So what do you do as a potential teen entrepreneur if you do not have this temperament? There is only one answer and that is to become skilled.
In order to become skilled you need time, and that is where teen entrepreneurs have an advantage. If you have an entrepreneurial tendency as opposed to being a natural entrepreneur, you will need to do one exercise first and foremost - assess yourself. This is not easy at all. It requires each of us, to go on our own into a quiet dark room and take a long, hard, and honest, look at ourselves. It is best to start out knowing what we really are capable of, rather than deluding ourselves as to what we would like to be.
A Reliable Formula:
1) Assess your temperament type. Trying to force a square shape through a round hole is what, in effect, many people try and do when starting a new business that is wrong for their character. They fail before they start.
2) Understand the strengths and weaknesses the above brings. Skill is a virtue of talent and suitability to the demands of each business type.
3) Select a business to fit your temperament type, in addition to any particular experiences or contacts you might have. Choose well and your character will make the business, choose badly and it will break it.
4) Start out spending as little as possible. Obviously the less you risk the less you can lose. Beware of the advertisers who will always encourage you to spend more than you should.
5) Allow 2-3 years of trial and error to become skilled. You may be a genius and make it in less time, but if you allow a realistic timeframe at the start you will not become disappointed and quit.
6) Reinvest 80% of your profits in diversified income-producing assets. It is a huge temptation to spend any new money, especially for impulsive types. If your main business goes pear-shaped you are back to square one in a blink of an eye. I speak from experience here.
Example
Budding teen entrepreneurs who are say, 13, can start a potential income-producing website. Providing the site concept is well researched and viable, and the site is properly structured with good keyword focused content and a sound link strategy, then by the time that person is 16, they will have 3 years sound site history and backlinks, which will bring in free organic traffic. Few new sites can do this, especially in competitive fields. So if you are leaving school or starting 6th form, college or University, you will have a solid basis for an income producing business. And, an this is just as important, you will have through the process added a skill to your CV that will stay with you throughout your life.
What You Need to Know About Starting a New Business
Starting a business is no small thing. Let 's just say this right now! there is nothing small about a small business. The amount of work required to make your business profitable is not small. The amount of risk you are taking (including both financial risk and emotional risk) is not small. The number of hours you have to put in, even if you are starting out part-time, is not small.
And no matter how much money you are investing in getting your business off the ground, it 's not a small investment. Your financial investment may not be large by Donald Trump 's standards, but in proportion to your available resources, I'm certain it 's not small. So, what do you need to consider as you start a new business? Before we go any further, let me emphasize two things.
First, take it one step at a time. If you try to focus on everything you need to do, you'll be overwhelmed, and you probably won't get it done.
Second, be aware that there are some things you really can't skimp on (like getting a business license, opening a checking account, etc.), but there are other things you will be continuously improving over time. There will be a point at which you need just jump in and go for it.
Important Things to Consider When Starting a New Business:
Choose the right business for you. There are so many choices, it 's almost mind boggling! You can sell goods or services. You can take advantage of an established franchise or multilevel marketing opportunity or you can start a business that is completely one-of-a-kind. You can start part-time while you keep your job or you can jump in with both feet. There are many things to consider, but the most important thing to remember is that you should choose a business that excites you. The phrase "Follow your passion" may be trite, but it really applies in this situation. You will be spending so much time and effort working on your business that you had better love what you're doing.
Develop a business plan. You know the old saying, "If you fail to plan, you plan to fail." Well, it 's true in this case. Developing a business plan forces you to think through the logistics of starting your business. It then becomes your road map for the weeks and months ahead. There are many resources that can help you, but one of the most common is the U.S. Small Business Association 's Small Business Planner.
Don't forget about the IRS. While this should be included in your business plan development, many new small business owners have fallen prey IRS penalties (some are very severe!) due to poor planning and poor recordkeeping. The IRS even has a checklist for starting a business that can help you avoid trouble.
Start marketing your goods and services from the beginning - and don't ever stop. Now, there are many ways to market your goods and services, and there are literally thousands of excellent resources. Just be sure you use them. There are two marketing myths that often trap new business owners. The first is, "This product (or service) sells itself." No, it doesn't. You need to learn how to market it and how to sell it. Trust me on this. The second myth is, "I can't afford any marketing or advertising right now - business is too slow." Lacking sales is precisely the reason why you must market your goods or services.
Get into action and stay in action. There is no substitute for consistent action. Many new business owners stay busy with small organizational tasks, but they spend surprisingly little time on the purposeful actions that lead to income generation. Ben Franklin said, "Never confuse motion with action." Each day, plan the top five actions you'll be taking to generate income. Then, do those things. Don't let any trivial or inconsequential tasks get in your way.
Use electronic tools to help your business grow and succeed. While relationships are, and always have been, the foundation of good business, there are more tools now than ever to help you succeed with your customers, with recordkeeping, and with sales. Don't be left behind by others who aren't afraid of innovation.
Get help! Don't try to go it alone. Surround yourself with a winning team. Maybe you'll find your team in a local networking group or service club. Maybe your winning team includes your family and friends. Here 's the test - if they are positive and supportive, keep 'em around. If they are negative and distract you from your goals, avoid them. It 's that simple. Success is business is hard enough without voluntarily subjecting yourself to people who sabotage your efforts.
Keep learning. Technology changes daily. Twenty years ago, the fax machine was barely even heard of. Five years ago, even the most advanced techies would have been amazed over the speed and price of this now basic laptop I am using to write this. Processes used in manufacturing are changing every day. Technology and print-on-demand (POD) have revolutionized the world of publishing. No matter what your industry is like today, it will be different tomorrow. Don't be left behind. Also, there is more to learn than you will ever be able to assimilate about marketing, sales, and customer service. Keep reading. Keep learning. And you'll be successful.
Be prepared for the hard times and do not quit. Most small business people start out part-time and quit when the going gets tough. They were not prepared for the difficult times, the discouragement, and yes, the loneliness of self employment. They believed the get rich quick stories and when they didn't come true for them they became disappointed and skeptical. You can avoid this by being prepared for the full range of experiences that affect new business owners. And never, ever quit. Remove the word from your vocabulary. You can change directions. You may have to try some new marketing strategies, but tell yourself right now that quitting is not an option.
And no matter how much money you are investing in getting your business off the ground, it 's not a small investment. Your financial investment may not be large by Donald Trump 's standards, but in proportion to your available resources, I'm certain it 's not small. So, what do you need to consider as you start a new business? Before we go any further, let me emphasize two things.
First, take it one step at a time. If you try to focus on everything you need to do, you'll be overwhelmed, and you probably won't get it done.
Second, be aware that there are some things you really can't skimp on (like getting a business license, opening a checking account, etc.), but there are other things you will be continuously improving over time. There will be a point at which you need just jump in and go for it.
Important Things to Consider When Starting a New Business:
Choose the right business for you. There are so many choices, it 's almost mind boggling! You can sell goods or services. You can take advantage of an established franchise or multilevel marketing opportunity or you can start a business that is completely one-of-a-kind. You can start part-time while you keep your job or you can jump in with both feet. There are many things to consider, but the most important thing to remember is that you should choose a business that excites you. The phrase "Follow your passion" may be trite, but it really applies in this situation. You will be spending so much time and effort working on your business that you had better love what you're doing.
Develop a business plan. You know the old saying, "If you fail to plan, you plan to fail." Well, it 's true in this case. Developing a business plan forces you to think through the logistics of starting your business. It then becomes your road map for the weeks and months ahead. There are many resources that can help you, but one of the most common is the U.S. Small Business Association 's Small Business Planner.
Don't forget about the IRS. While this should be included in your business plan development, many new small business owners have fallen prey IRS penalties (some are very severe!) due to poor planning and poor recordkeeping. The IRS even has a checklist for starting a business that can help you avoid trouble.
Start marketing your goods and services from the beginning - and don't ever stop. Now, there are many ways to market your goods and services, and there are literally thousands of excellent resources. Just be sure you use them. There are two marketing myths that often trap new business owners. The first is, "This product (or service) sells itself." No, it doesn't. You need to learn how to market it and how to sell it. Trust me on this. The second myth is, "I can't afford any marketing or advertising right now - business is too slow." Lacking sales is precisely the reason why you must market your goods or services.
Get into action and stay in action. There is no substitute for consistent action. Many new business owners stay busy with small organizational tasks, but they spend surprisingly little time on the purposeful actions that lead to income generation. Ben Franklin said, "Never confuse motion with action." Each day, plan the top five actions you'll be taking to generate income. Then, do those things. Don't let any trivial or inconsequential tasks get in your way.
Use electronic tools to help your business grow and succeed. While relationships are, and always have been, the foundation of good business, there are more tools now than ever to help you succeed with your customers, with recordkeeping, and with sales. Don't be left behind by others who aren't afraid of innovation.
Get help! Don't try to go it alone. Surround yourself with a winning team. Maybe you'll find your team in a local networking group or service club. Maybe your winning team includes your family and friends. Here 's the test - if they are positive and supportive, keep 'em around. If they are negative and distract you from your goals, avoid them. It 's that simple. Success is business is hard enough without voluntarily subjecting yourself to people who sabotage your efforts.
Keep learning. Technology changes daily. Twenty years ago, the fax machine was barely even heard of. Five years ago, even the most advanced techies would have been amazed over the speed and price of this now basic laptop I am using to write this. Processes used in manufacturing are changing every day. Technology and print-on-demand (POD) have revolutionized the world of publishing. No matter what your industry is like today, it will be different tomorrow. Don't be left behind. Also, there is more to learn than you will ever be able to assimilate about marketing, sales, and customer service. Keep reading. Keep learning. And you'll be successful.
Be prepared for the hard times and do not quit. Most small business people start out part-time and quit when the going gets tough. They were not prepared for the difficult times, the discouragement, and yes, the loneliness of self employment. They believed the get rich quick stories and when they didn't come true for them they became disappointed and skeptical. You can avoid this by being prepared for the full range of experiences that affect new business owners. And never, ever quit. Remove the word from your vocabulary. You can change directions. You may have to try some new marketing strategies, but tell yourself right now that quitting is not an option.
Filing a Provisional Patent
For 99% of inventors, filing a provisional patent is a smart decision. But what exactly is a provisional patent? What separates it from a "real patent?" The short answer is: a few hundred dollars and a lot less paperwork. But there 's more to it than just that. A provisional patent is a way for you to stake your claim, to get your application into the USPTO 's system, while you decide whether it would be worth it to get full patent protection.
If you have ever seen a label that read "Patent Pending", you know what a provisional patent is. For 12 months, you get the full protection a patent offers. In that time, smart inventors hustle to see whether or not there is a real market demand for their invention. If nobody is all that interested, they know it would be a waste to spend the time and money getting a full patent. If they are interested, they know it will be money well-spent. If you do decide to apply for a non-provisional (full) patent, your provisional patent is used as a starting point.
This is the USPTO 's official application for provisional patents.
SRC: http://www.uspto.gov/web/offices/pac/provapp.htm
Unfortunately, while it spells out each step of the process, it isn't exactly what you could call "user-friendly." So let 's dive into the meat and potatoes ourselves.
There are two main parts of a provisional patent application. The first part is the written description of what your patent covers. Arguably, this is the most important part of the application and the one you should spend the most time and energy making sure is accurate. About.com offers some helpful tips in this regard:
Writing Your Description
Under patent law "the written description of the invention and of the manner and process of making and using the same invention must be in such full, clear, concise, and exact terms as to enable any person skilled in the art or science to which the invention pertains to make and use the invention."
"Skilled in the art or science" is a somewhat subjective legal standard. If the description of your invention is so secretive that it would take a person of extraordinary skill to reproduce or practice the invention, that would not be considered clear or concise. At the same time, the description does not have to be so step-by-step that a layman could reproduce the invention.
About.com also has an article called "Tips on Writing the Description." It will prove very helpful when you sit down to tackle this crucial task.
SRC: http://inventors.about.com/od/patentsbasics/a/descriptions.htm
Above all, remember that your written description should be airtight: exact in every way, with every trace of vagueness cut out. When it comes to intellectual property, vagueness equals death.
The second part of the provisional patent application is drawings. This, obviously enough, is where you graphically represent what is going to be patented. However, there are some conventions that you should adhere to during this process. To follow them, consult these handy guides from About.com.
- Creating Patent Drawings For A Utility Patent
- Tips on Making Patent Drawings
- The Rules For Patent Drawings
Another article discusses the USPTO 's standards for drawings, which are exact. Rather than conventions, these are requirements that absolutely must be satisfied for your provisional patent application to even be taken seriously. Some of them include size, dimension, type of paper, and formatting. You can read about them all in a simple, easy-to-follow fashion here.
SRC: http://inventors.about.com/od/patentdrawings/a/drawings.htm
If all of this seems daunting, it really isn't. Once you acquaint yourself with what 's required you will find that it is not all that difficult to comply with the USPTO 's requests on drawings.
Finally, your application must also include the filing fee and a cover report with the following things on it.
- the application as a provisional application for patent;
- the name(s) of all inventors
- inventor residence(s)
- title of the invention
- name and registration number of attorney or agent and docket number (if applicable)
- correspondence address
- any US Government agency that has a property interest in the application.
Make sure all these things are taken care of, and you will be well on your way to being the proud owner of a provisional patent! And remember that once your provisional patent is approved, the clock is ticking. You have 12 short months to drum up interest in your invention and see if it will fly. Take it to trade shows, demo it for customers, do all you can to see whether it is worth getting a full patent. If you are smart and diligent, a year is plenty of time to do this type of research. In fact, it 's why the provisional patent exists at all!
That is the unique benefit and advantage that a provisional patent offers you. Best of luck!
If you have ever seen a label that read "Patent Pending", you know what a provisional patent is. For 12 months, you get the full protection a patent offers. In that time, smart inventors hustle to see whether or not there is a real market demand for their invention. If nobody is all that interested, they know it would be a waste to spend the time and money getting a full patent. If they are interested, they know it will be money well-spent. If you do decide to apply for a non-provisional (full) patent, your provisional patent is used as a starting point.
This is the USPTO 's official application for provisional patents.
SRC: http://www.uspto.gov/web/offices/pac/provapp.htm
Unfortunately, while it spells out each step of the process, it isn't exactly what you could call "user-friendly." So let 's dive into the meat and potatoes ourselves.
There are two main parts of a provisional patent application. The first part is the written description of what your patent covers. Arguably, this is the most important part of the application and the one you should spend the most time and energy making sure is accurate. About.com offers some helpful tips in this regard:
Writing Your Description
Under patent law "the written description of the invention and of the manner and process of making and using the same invention must be in such full, clear, concise, and exact terms as to enable any person skilled in the art or science to which the invention pertains to make and use the invention."
"Skilled in the art or science" is a somewhat subjective legal standard. If the description of your invention is so secretive that it would take a person of extraordinary skill to reproduce or practice the invention, that would not be considered clear or concise. At the same time, the description does not have to be so step-by-step that a layman could reproduce the invention.
About.com also has an article called "Tips on Writing the Description." It will prove very helpful when you sit down to tackle this crucial task.
SRC: http://inventors.about.com/od/patentsbasics/a/descriptions.htm
Above all, remember that your written description should be airtight: exact in every way, with every trace of vagueness cut out. When it comes to intellectual property, vagueness equals death.
The second part of the provisional patent application is drawings. This, obviously enough, is where you graphically represent what is going to be patented. However, there are some conventions that you should adhere to during this process. To follow them, consult these handy guides from About.com.
- Creating Patent Drawings For A Utility Patent
- Tips on Making Patent Drawings
- The Rules For Patent Drawings
Another article discusses the USPTO 's standards for drawings, which are exact. Rather than conventions, these are requirements that absolutely must be satisfied for your provisional patent application to even be taken seriously. Some of them include size, dimension, type of paper, and formatting. You can read about them all in a simple, easy-to-follow fashion here.
SRC: http://inventors.about.com/od/patentdrawings/a/drawings.htm
If all of this seems daunting, it really isn't. Once you acquaint yourself with what 's required you will find that it is not all that difficult to comply with the USPTO 's requests on drawings.
Finally, your application must also include the filing fee and a cover report with the following things on it.
- the application as a provisional application for patent;
- the name(s) of all inventors
- inventor residence(s)
- title of the invention
- name and registration number of attorney or agent and docket number (if applicable)
- correspondence address
- any US Government agency that has a property interest in the application.
Make sure all these things are taken care of, and you will be well on your way to being the proud owner of a provisional patent! And remember that once your provisional patent is approved, the clock is ticking. You have 12 short months to drum up interest in your invention and see if it will fly. Take it to trade shows, demo it for customers, do all you can to see whether it is worth getting a full patent. If you are smart and diligent, a year is plenty of time to do this type of research. In fact, it 's why the provisional patent exists at all!
That is the unique benefit and advantage that a provisional patent offers you. Best of luck!
Information You Should Know About Patents
There are many misconceptions about what a patent is and is not. Many believe that patents can "protect an idea" in the sense of preventing people from acting on a concept you thought of. Others believe that mailing yourself notes and drawings is a "poor man 's patent" that provides sufficient protection. In fact, patents are only granted to inventions, and the only way to achieve patent status is to apply for one and have it approved by the United States Patent and Trademark Office.
In the US, a patent is a set of exclusive rights granted to an inventor by the government or a set period of time. In exchange for these rights, and to assist in their being upheld, the inventor discloses the relevant details of his invention to the Patent and Trademark office.
The two main parts of a patent are the specifications and the claims. A specification is where you describe the inner workings of your invention in gross detail. For example, the creator of a new, lighter and more puncture-resistant bicycle tire might disclose that his tire employs a revolutionary new rubber alloy that is 50% more durable than anything currently on the market. He might further elaborate that the spokes of the tire are the result of a completely unique ergonomic design that the inventor and only the inventor knows, and that this design is what makes the tires lightweight. If the inventor receives his patent, this is what will be protected.
Claims are the part of the patent that explains precisely what this invention does, and is capable of doing. Claims are where you define the invention and what it is from a customer 's standpoint. So for example, you would state something like "Bicycle tire employing X proprietary rubber alloy for and Y spoke design to achieve maximum durability and lightness." This illustrates, concretely, what your patented invention is.
To get a patent, inventors must also typically include a drawing or prototype of their invention. Many novices assume that patents protect mere ideas. That is, you can think of something, write down your idea in a patent application and own sole rights to it. In fact, this is not the case. To protect and foster innovation, the Patent and Trademark Office will only grant patents to those who create something based on an idea.
Contrary to popular belief, a patent is not a right to use the invention in question. Rather, what a patent does is give an inventor the right to exclude others from making, using, or selling the patented invention for however long the patent lasts. In the US, this is generally 20 years from the date of the patent being filed.
When and if it becomes necessary to enforce a patent, this can generally only be done through civil lawsuits. In most cases, the patent holder will seek monetary compensation for any past infringements. In addition to any damages, he will also seek an injunction. This is a court order prohibiting the infringer from infringing on the patent at any point in the future. It is the court 's way of saying, "We know what you did, and it needs to stop."
To prove that a patent was infringed upon, the patent holder must prove that the infringer practices all of the requirements set forth in at least on of the patent 's claims. Recall that a patent 's claims are literally the patent. They set forth exactly what it is that this invention does. So if someone stole your spoke design and bribed your scientist into spilling your rubber alloy formula, you will most likely be successful in getting an injunction against that person. Your patent will be recognized and upheld by the courts.
It is also worth putting a naive patent myth to rest. Many believe it is possible to bypass the lengthy patent application process and high fees by simply mailing yourself an envelope with lots of sketches and idea notes in it. By sending it via federally certified mail, this supposedly "proves" that you were the first to conceive of an idea at a certain time. While this might be useful under certain circumstances, it alone will not provide you with the protection a patent does. Courts will not recognize this as sufficient evidence that you have rights to an idea.
In short, the best advice for those seeking patent protection is to spend the money and consult a patent attorney. These are people who have spent years studying the ins and outs of patents and patent law. If you are thinking of staking your livelihood on a patent idea, these are the people whose advice you want to seek.
In the US, a patent is a set of exclusive rights granted to an inventor by the government or a set period of time. In exchange for these rights, and to assist in their being upheld, the inventor discloses the relevant details of his invention to the Patent and Trademark office.
The two main parts of a patent are the specifications and the claims. A specification is where you describe the inner workings of your invention in gross detail. For example, the creator of a new, lighter and more puncture-resistant bicycle tire might disclose that his tire employs a revolutionary new rubber alloy that is 50% more durable than anything currently on the market. He might further elaborate that the spokes of the tire are the result of a completely unique ergonomic design that the inventor and only the inventor knows, and that this design is what makes the tires lightweight. If the inventor receives his patent, this is what will be protected.
Claims are the part of the patent that explains precisely what this invention does, and is capable of doing. Claims are where you define the invention and what it is from a customer 's standpoint. So for example, you would state something like "Bicycle tire employing X proprietary rubber alloy for and Y spoke design to achieve maximum durability and lightness." This illustrates, concretely, what your patented invention is.
To get a patent, inventors must also typically include a drawing or prototype of their invention. Many novices assume that patents protect mere ideas. That is, you can think of something, write down your idea in a patent application and own sole rights to it. In fact, this is not the case. To protect and foster innovation, the Patent and Trademark Office will only grant patents to those who create something based on an idea.
Contrary to popular belief, a patent is not a right to use the invention in question. Rather, what a patent does is give an inventor the right to exclude others from making, using, or selling the patented invention for however long the patent lasts. In the US, this is generally 20 years from the date of the patent being filed.
When and if it becomes necessary to enforce a patent, this can generally only be done through civil lawsuits. In most cases, the patent holder will seek monetary compensation for any past infringements. In addition to any damages, he will also seek an injunction. This is a court order prohibiting the infringer from infringing on the patent at any point in the future. It is the court 's way of saying, "We know what you did, and it needs to stop."
To prove that a patent was infringed upon, the patent holder must prove that the infringer practices all of the requirements set forth in at least on of the patent 's claims. Recall that a patent 's claims are literally the patent. They set forth exactly what it is that this invention does. So if someone stole your spoke design and bribed your scientist into spilling your rubber alloy formula, you will most likely be successful in getting an injunction against that person. Your patent will be recognized and upheld by the courts.
It is also worth putting a naive patent myth to rest. Many believe it is possible to bypass the lengthy patent application process and high fees by simply mailing yourself an envelope with lots of sketches and idea notes in it. By sending it via federally certified mail, this supposedly "proves" that you were the first to conceive of an idea at a certain time. While this might be useful under certain circumstances, it alone will not provide you with the protection a patent does. Courts will not recognize this as sufficient evidence that you have rights to an idea.
In short, the best advice for those seeking patent protection is to spend the money and consult a patent attorney. These are people who have spent years studying the ins and outs of patents and patent law. If you are thinking of staking your livelihood on a patent idea, these are the people whose advice you want to seek.
How to Commercialize New Ideas
Hollywood and popular literature tend to glorify the selfless inventor who innovates out of benevolence for mankind, with no care for personal gain. However, without the ability to commercialize new ideas, many of the world 's most cherished inventions might not have come to pass. Silicon Valley venture capitalist Paul Graham concurs in his essay "How to Make Wealth."
"Developing new technology is a pain in the butt. It is, as Edison said, one percent inspiration and ninety-nine percent perspiration. Without the incentive of wealth, no one wants to do it. Engineers will work on sexy projects like fighter planes and moon rockets for ordinary salaries, but more mundane technologies like light bulbs or semiconductors have to be developed by entrepreneurs."
That is the first thing any inventor must realize: there is no guilt or shame in wanting to profit from your idea. That being said, how do you go about doing it? As far as we can tell, there are two main ways of commercializing new ideas.
1) Bringing them to market yourself, or
2) Selling/licensing them to others
This article will offer tips and guidance on how to make either strategy work for you. The first way, as mentioned, is to nurture your idea to maturity and bring it into the market yourself. The advantage of this strategy is that you control more of the process. If your sole hope is finding a buyer for your idea, you are more or less at the mercy of their whims. What if your idea is sound, but the company you want to sell to just wont bite?
On the other hand, bringing it to market yourself lets you use intelligence and skill to increase your odds. So let 's start there.
Bring Your Idea to Market Yourself
The first step in bringing an idea to market is really firming it up in your own mind. Have you determined who your target market is? How will you reach them? Do you know what it truly costs to build your product? Do you even know how to concretely build your product, starting from nothing but raw materials? Our article "5 Steps to Patent Ideas" gives you a checklist for answering these questions. Consider this your starting point.
Once you have these things figured out, the next step is recruiting people to help make your vision real. Of course, this can be a risky process, as each person you tell about your idea increases the odds that someone will leak it into the wrong hands. Our article "Discussing Invention Ideas" reduces the "who to tell?" question to hard and fast rules you can easily follow.
Still, just knowing who it is safe to tell won't magically get the talent you need working on your invention. Once you have found someone you want to work with, you need to make them see the potential. One tried-and-true way of attracting talented people to new projects is offering them stock, or a percentage of future profits. An even better method is combining this approach with a salary, however small. This will help you find the people you need to actually create your idea.
Once it is created, you can roll out your idea in the manner you see fit. Want to sell it online? Want to sell it in retail stores? Want to do both? With a finished, tangible, honest-to-God product to sell, you have the ability to start making these things happen for yourself. Most of the popular retail outlets have buyers who you can talk to about getting your products sold. Selling online is simply a matter of setting up a website and publicizing what you have to offer. By this point you have firmed up your business plan and are intimately aware of what it takes to produce and sell your invention.
Again, the key benefit of this approach is that you are in the driver 's seat for important decisions. Another option that offers less control but also less stress is selling your idea to others.
Selling/Licensing Your Idea to Others
The chief benefit of selling or licensing your idea is that not everything is riding on you. Some people are not cut out for the task of inventing, creating, marketing and selling a product themselves. It is hard, long, diligent work that you simply won't do if your heart isn't 100% in it. Therefore, selling or licensing your idea to others can be an attractive option.
However, be warned that this approach is often made to seem far sexier and easier than it is. Many idea listing and marketing services are scams. They have been investigated (and some even shut down) by the Federal Trade Commission for charging scandalous fees and delivering no real value. The worst of these companies will actually steal your idea.
If you are serious about your idea, speak to a patent attorney or file a patent application yourself. This gives you the protection and leverage you need to approach someone about selling your idea. Furthermore, you do not want to start blasting unsolicited "do you want to buy this idea?" letters to every company in the industry. What you want to do instead is whittle down your options to carefully chosen handful of companies who have a pressing need for what you have to offer.
Our article "Presenting Patent Ideas to Companies" offers no-nonsense advice on how to do this research and present your idea in a desirable way.
In closing, these are the two main ways of commercializing new ideas. You should give some thought to which approach reflects your strengths and weaknesses as an inventor and pursue the course that feels best.
"Developing new technology is a pain in the butt. It is, as Edison said, one percent inspiration and ninety-nine percent perspiration. Without the incentive of wealth, no one wants to do it. Engineers will work on sexy projects like fighter planes and moon rockets for ordinary salaries, but more mundane technologies like light bulbs or semiconductors have to be developed by entrepreneurs."
That is the first thing any inventor must realize: there is no guilt or shame in wanting to profit from your idea. That being said, how do you go about doing it? As far as we can tell, there are two main ways of commercializing new ideas.
1) Bringing them to market yourself, or
2) Selling/licensing them to others
This article will offer tips and guidance on how to make either strategy work for you. The first way, as mentioned, is to nurture your idea to maturity and bring it into the market yourself. The advantage of this strategy is that you control more of the process. If your sole hope is finding a buyer for your idea, you are more or less at the mercy of their whims. What if your idea is sound, but the company you want to sell to just wont bite?
On the other hand, bringing it to market yourself lets you use intelligence and skill to increase your odds. So let 's start there.
Bring Your Idea to Market Yourself
The first step in bringing an idea to market is really firming it up in your own mind. Have you determined who your target market is? How will you reach them? Do you know what it truly costs to build your product? Do you even know how to concretely build your product, starting from nothing but raw materials? Our article "5 Steps to Patent Ideas" gives you a checklist for answering these questions. Consider this your starting point.
Once you have these things figured out, the next step is recruiting people to help make your vision real. Of course, this can be a risky process, as each person you tell about your idea increases the odds that someone will leak it into the wrong hands. Our article "Discussing Invention Ideas" reduces the "who to tell?" question to hard and fast rules you can easily follow.
Still, just knowing who it is safe to tell won't magically get the talent you need working on your invention. Once you have found someone you want to work with, you need to make them see the potential. One tried-and-true way of attracting talented people to new projects is offering them stock, or a percentage of future profits. An even better method is combining this approach with a salary, however small. This will help you find the people you need to actually create your idea.
Once it is created, you can roll out your idea in the manner you see fit. Want to sell it online? Want to sell it in retail stores? Want to do both? With a finished, tangible, honest-to-God product to sell, you have the ability to start making these things happen for yourself. Most of the popular retail outlets have buyers who you can talk to about getting your products sold. Selling online is simply a matter of setting up a website and publicizing what you have to offer. By this point you have firmed up your business plan and are intimately aware of what it takes to produce and sell your invention.
Again, the key benefit of this approach is that you are in the driver 's seat for important decisions. Another option that offers less control but also less stress is selling your idea to others.
Selling/Licensing Your Idea to Others
The chief benefit of selling or licensing your idea is that not everything is riding on you. Some people are not cut out for the task of inventing, creating, marketing and selling a product themselves. It is hard, long, diligent work that you simply won't do if your heart isn't 100% in it. Therefore, selling or licensing your idea to others can be an attractive option.
However, be warned that this approach is often made to seem far sexier and easier than it is. Many idea listing and marketing services are scams. They have been investigated (and some even shut down) by the Federal Trade Commission for charging scandalous fees and delivering no real value. The worst of these companies will actually steal your idea.
If you are serious about your idea, speak to a patent attorney or file a patent application yourself. This gives you the protection and leverage you need to approach someone about selling your idea. Furthermore, you do not want to start blasting unsolicited "do you want to buy this idea?" letters to every company in the industry. What you want to do instead is whittle down your options to carefully chosen handful of companies who have a pressing need for what you have to offer.
Our article "Presenting Patent Ideas to Companies" offers no-nonsense advice on how to do this research and present your idea in a desirable way.
In closing, these are the two main ways of commercializing new ideas. You should give some thought to which approach reflects your strengths and weaknesses as an inventor and pursue the course that feels best.
How To File For A Patent
The way you file a patent is by filling out an application and submitting it to the United States Patent and Trademark Office for a fee. Of course, patent applications are not like job applications or credit card applications. This is where you explain your invention in gross detail and have it meticulously examined by people with scientific and/or legal training. Thusly, you want to ensure that your patent application is rock solid. No corners cut.
The first thing to be mindful of when filling out your patent application is making sure you use the right legalese. Most people know that lawyers speak differently about legal matters than the way they talk in passing, and this is crucial for your patent application. Accordingly, you cannot expect to "set aside a night and bang it out." Your application 's chances of being approved hinge greatly on how well-written it is.
Here 's a good example the good folks at About.com offer to help weary inventors:
You might want to describe your invention with language like, "Part A is nailed to part B." However, this is actually very weak from a legal perspective. Why, you ask? Well, how hard would it be for someone else to apply for essentially the same patent with wording like, "Part A is glued to Part B?" Not hard at all. In fact, it happens all the time.
Instead, you want to shoot for something like "attached" or "attached by various fasteners." This type of language broadens the scope of your patent. It helps protect against knock-off artists who would capitalize on your invention by changing trivial words to appear unique.
Another daunting part of the patent filing process is that unlike most applications, the most complex parts have no pre-made spaces for you to fill in. Instead, you as the inventor will be staring at blank paper that you must fill yourself. What will you fill it with? Let 's ask Eugene K. Quinn, patent law professor and founder of the IP Watch dog website:
"...without some identifiable embodiment of the idea there can be no intellectual property protection."
In this case "identifiable embodiment" often means a drawing. You or someone you know and trust will need to draw your invention and include the sketch with your application.
In general, applying for a patent without the help of an attorney is not recommended. The nuances and subtleties of the USPTO are enough to spend a lifetime studying, and that is precisely what patent attorneys do to ensure that applications they submit are airtight. However, if you do choose to go it alone, here is what you will need.
1) A written document that includes a specification and claims. A specification is where the inventor describes, illustrates, and/or discloses the inner workings of the invention in enough detail that someone experienced with the field could understand what it is. Claims are the part of the application where you specifically state what the invention is and is capable of doing. Claims, in the words of one attorney, literally "define the invention and what it is." What you put in the claims is what patent law will protect.
2) A drawing of the invention. It is important that this drawing mirrors as closely as possible the actual way in which your invention will function and be used. Any discrepancies here can be used by competitors or litigators to try and invalidate your patent.
3) The filing fee. There is a fee when you apply, another fee when the patent is issued, and regular maintenance fees thereafter.
At a bare minimum, this is what your patent application must include. However, other steps can and should be taken to solidify it. One important consideration is proving that you were the first to conceptualize your idea. This is because United States patent law is based on the "first to invent" rule, whereby the first person to reduce an idea to a working prototype or clear description has rights to it.
So how can you prove that you were the first? The most surefire way is to keep a well-documented log of your records, including detailed test results and a sequentially ordered set of steps you took to reach your idea. Such material proves that your involvement with the idea began at a certain time and continues to the present day.
Be warned however that the alleged "poor man 's patent" of mailing yourself your idea does not work and will not stand up in any court. Instead, visit this URL on how to set up a good legally admissible log book.
In short, you need to be aware that preparing and filing a patent application is a serious, time-consuming process. You should attempt it only after a thorough consideration of all that will be required of you.
The first thing to be mindful of when filling out your patent application is making sure you use the right legalese. Most people know that lawyers speak differently about legal matters than the way they talk in passing, and this is crucial for your patent application. Accordingly, you cannot expect to "set aside a night and bang it out." Your application 's chances of being approved hinge greatly on how well-written it is.
Here 's a good example the good folks at About.com offer to help weary inventors:
You might want to describe your invention with language like, "Part A is nailed to part B." However, this is actually very weak from a legal perspective. Why, you ask? Well, how hard would it be for someone else to apply for essentially the same patent with wording like, "Part A is glued to Part B?" Not hard at all. In fact, it happens all the time.
Instead, you want to shoot for something like "attached" or "attached by various fasteners." This type of language broadens the scope of your patent. It helps protect against knock-off artists who would capitalize on your invention by changing trivial words to appear unique.
Another daunting part of the patent filing process is that unlike most applications, the most complex parts have no pre-made spaces for you to fill in. Instead, you as the inventor will be staring at blank paper that you must fill yourself. What will you fill it with? Let 's ask Eugene K. Quinn, patent law professor and founder of the IP Watch dog website:
"...without some identifiable embodiment of the idea there can be no intellectual property protection."
In this case "identifiable embodiment" often means a drawing. You or someone you know and trust will need to draw your invention and include the sketch with your application.
In general, applying for a patent without the help of an attorney is not recommended. The nuances and subtleties of the USPTO are enough to spend a lifetime studying, and that is precisely what patent attorneys do to ensure that applications they submit are airtight. However, if you do choose to go it alone, here is what you will need.
1) A written document that includes a specification and claims. A specification is where the inventor describes, illustrates, and/or discloses the inner workings of the invention in enough detail that someone experienced with the field could understand what it is. Claims are the part of the application where you specifically state what the invention is and is capable of doing. Claims, in the words of one attorney, literally "define the invention and what it is." What you put in the claims is what patent law will protect.
2) A drawing of the invention. It is important that this drawing mirrors as closely as possible the actual way in which your invention will function and be used. Any discrepancies here can be used by competitors or litigators to try and invalidate your patent.
3) The filing fee. There is a fee when you apply, another fee when the patent is issued, and regular maintenance fees thereafter.
At a bare minimum, this is what your patent application must include. However, other steps can and should be taken to solidify it. One important consideration is proving that you were the first to conceptualize your idea. This is because United States patent law is based on the "first to invent" rule, whereby the first person to reduce an idea to a working prototype or clear description has rights to it.
So how can you prove that you were the first? The most surefire way is to keep a well-documented log of your records, including detailed test results and a sequentially ordered set of steps you took to reach your idea. Such material proves that your involvement with the idea began at a certain time and continues to the present day.
Be warned however that the alleged "poor man 's patent" of mailing yourself your idea does not work and will not stand up in any court. Instead, visit this URL on how to set up a good legally admissible log book.
In short, you need to be aware that preparing and filing a patent application is a serious, time-consuming process. You should attempt it only after a thorough consideration of all that will be required of you.
How to Document New Ideas
Documenting new ideas is not just good practice. It may be absolutely critical if you intend on getting a patent and then enforcing it. This is because patent laws in the United States are based on the "first to invent rule." Clause 101 of US Code 35 states:
"Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefore.."
What this means for you the inventor is that you want a set of airtight documentation to prove your idea is yours. But how do you go about doing this? With all the misconceptions and speculation about what is legally acceptable proof, it helps to separate fact from fiction. Let 's begin by dispelling some popular idea documentation myths.
Stop me if you've heard this one. "Hey man! Turns out we can skip all that paperwork and waiting and huge cost! My buddy told me all we gotta do is mail a bunch of notes and sketches to ourselves and if anyone tries to rip our idea, we just bring the mail to court!"
This is known as the "poor man 's patent" and it to put it bluntly, it isn't. Eugene Quinn, patent attorney and founder of the IP Watch dog website, had this to say:
It is absolutely critical for everyone to understand that mailing your idea to yourself will do absolutely nothing to give you protection. All that mailing your work to yourself will prove is that you had it as of a certain date, and that is only assuming there is a postmark on the envelope (which does not always happen) and the envelope is not opened. It provides no rights whatsoever.
So if mailing yourself your work isn't sufficient documentation, what is? The answer is something called a logbook. A logbook is essentially an inventor 's journal. It is where the inventor keeps track of his progress and dates each step.
A logbook proves that you came up with your idea at a certain date and displayed due diligence in pursuing it. However, there are some definite standards you should adhere to when keeping a logbook. This will help ensure that your documentation looks legitimate to patent examiners.
That being said, here are some conventions you should follow when documenting your invention in a logbook.
1) You should start your logbook as soon as you think of an idea. Write down detailed records of key concepts, test results, and anything else having to do with the creation of your idea. This is the type of material that belongs in a logbook.
2) While there are pre-made logbooks for sale, you can easily make your own. Be sure to use a bound notebook, however, and not a loose-leaf. The reason is that bound notebooks make it hard to conceal the fact that pages were added or taken out.
3) Number each page consecutively. This establishes that the progress you made on your idea took place in a sequential order that anyone with common sense can observe. When one notebook is full, begin a new one and specify that this notebook is a continuation of the last one. There should be no visible gaps in your record keeping.
4) Each entry you write should be signed and dated by you and anyone else who participated in that step of the invention process. If at all possible, get a notary public to sign as well.
5) Give each entry a header with information about what is contained in it. For example, the date, subject, number of participants, witnesses, etc.
6) Include records of everything you do. When in doubt, assume that it is best to include it. Do not just include successful test results, for example. If you exclude negative findings or tests, the patent examiner may decide that you "cherry-picked" only the good stuff and reject your application.
7) Any and all other participants in the invention process need to have their roles disclosed. The importance of this convention cannot be stressed enough. If you omit an inventor 's name from an invention he helped create, it is considered fraud.
8) Any loose materials like drawings, photos, or sketches should be signed, dated, and cross-referenced to the notebook entry they pertain to. It is best to tape or staple this material to the notebook entries in question.
In closing, these are some good, common-sense conventions to follow when documenting new ideas. Adhering to them will give you a much greater chance of receiving and maintaining patent protection.
"Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefore.."
What this means for you the inventor is that you want a set of airtight documentation to prove your idea is yours. But how do you go about doing this? With all the misconceptions and speculation about what is legally acceptable proof, it helps to separate fact from fiction. Let 's begin by dispelling some popular idea documentation myths.
Stop me if you've heard this one. "Hey man! Turns out we can skip all that paperwork and waiting and huge cost! My buddy told me all we gotta do is mail a bunch of notes and sketches to ourselves and if anyone tries to rip our idea, we just bring the mail to court!"
This is known as the "poor man 's patent" and it to put it bluntly, it isn't. Eugene Quinn, patent attorney and founder of the IP Watch dog website, had this to say:
It is absolutely critical for everyone to understand that mailing your idea to yourself will do absolutely nothing to give you protection. All that mailing your work to yourself will prove is that you had it as of a certain date, and that is only assuming there is a postmark on the envelope (which does not always happen) and the envelope is not opened. It provides no rights whatsoever.
So if mailing yourself your work isn't sufficient documentation, what is? The answer is something called a logbook. A logbook is essentially an inventor 's journal. It is where the inventor keeps track of his progress and dates each step.
A logbook proves that you came up with your idea at a certain date and displayed due diligence in pursuing it. However, there are some definite standards you should adhere to when keeping a logbook. This will help ensure that your documentation looks legitimate to patent examiners.
That being said, here are some conventions you should follow when documenting your invention in a logbook.
1) You should start your logbook as soon as you think of an idea. Write down detailed records of key concepts, test results, and anything else having to do with the creation of your idea. This is the type of material that belongs in a logbook.
2) While there are pre-made logbooks for sale, you can easily make your own. Be sure to use a bound notebook, however, and not a loose-leaf. The reason is that bound notebooks make it hard to conceal the fact that pages were added or taken out.
3) Number each page consecutively. This establishes that the progress you made on your idea took place in a sequential order that anyone with common sense can observe. When one notebook is full, begin a new one and specify that this notebook is a continuation of the last one. There should be no visible gaps in your record keeping.
4) Each entry you write should be signed and dated by you and anyone else who participated in that step of the invention process. If at all possible, get a notary public to sign as well.
5) Give each entry a header with information about what is contained in it. For example, the date, subject, number of participants, witnesses, etc.
6) Include records of everything you do. When in doubt, assume that it is best to include it. Do not just include successful test results, for example. If you exclude negative findings or tests, the patent examiner may decide that you "cherry-picked" only the good stuff and reject your application.
7) Any and all other participants in the invention process need to have their roles disclosed. The importance of this convention cannot be stressed enough. If you omit an inventor 's name from an invention he helped create, it is considered fraud.
8) Any loose materials like drawings, photos, or sketches should be signed, dated, and cross-referenced to the notebook entry they pertain to. It is best to tape or staple this material to the notebook entries in question.
In closing, these are some good, common-sense conventions to follow when documenting new ideas. Adhering to them will give you a much greater chance of receiving and maintaining patent protection.
Branding Yourself Will Bring Greater Success
Branding yourself can actually have such a dramatic effect that you will become hunted rather than being the hunter for your next job opportunity. Branding yourself can actually have such a dramatic effect that you will become hunted rather than being the hunter for your next job opportunity. Branding yourself can make all of the difference in the success of your business and your career.
Create a Personal Brand that tells customers how you're different from your competition and build your relationships with them daily. The Brand Called You is the ultimate resource for building your Personal Brand, one that sells you, not your product or company. Creating a continuous stream of income from the internet has been the dream of all internet marketers. Many people are trying hard to build their online business through affiliate marketing.
Branding yourself is part of the many things that will help you create success, because it will help you to attract people from all walks of life to be your friend, your network contact, a new client for your business, or maybe someone who wants to introduce you to other of the same type of interest.
Branding yourself is a major part in internet marketing or the network marketing industry. Branding yourself is one of the most important marketing tricks on the books. We can make you stand out with branding that will make you proud. Branding yourself is the key to being different. A replicated site will get you replicated results.
Branding yourself is required to succeed in any field of work. Fluency in a foreign language tends to stand out quickly enough and is guaranteed not to be forgotten. Branding yourself is one of the keys to being a successful REALTOR?. Each Flyer will give you the option to include your picture, company logo, web site, and contact information. Branding yourself is just as bad.
Branding yourself is a concept that represents everything about your business or company. It sets your business and products apart from the competition. Branding yourself is the best way that you can generate sales and gain profits.
A business without a brand name is like a product that does not have a name. Branding yourself is the art of separating yourself from your competition. It is what attracts new customers with as little or no work at all.
Branding yourself is key to building your network of influence. When you volunteer for positions, help with fund-raisers or help with organizing committees make sure that what you do is fairly high profile. Branding yourself is part of a bigger picture that includes branding your website. Branding yourself is the key to professionalism not promoting some hotshot. Our team has a template system that you can plug into.
Branding yourself is more critical; the traffic you'll get isn't as important. Remember to include keywords in your byline: You want to be associated with the topic as much as possible. Branding yourself is one of the most important marketing tricks on the books; it is about being an expert or learning how to be an expert and then telling everyone about your knowledge. Branding yourself is one of the most important tasks you have as a small business marketer.
Branding yourself is a concept that represents everything about your business or company. It sets your business and products apart from the competition.
Create a Personal Brand that tells customers how you're different from your competition and build your relationships with them daily. The Brand Called You is the ultimate resource for building your Personal Brand, one that sells you, not your product or company. Creating a continuous stream of income from the internet has been the dream of all internet marketers. Many people are trying hard to build their online business through affiliate marketing.
Branding yourself is part of the many things that will help you create success, because it will help you to attract people from all walks of life to be your friend, your network contact, a new client for your business, or maybe someone who wants to introduce you to other of the same type of interest.
Branding yourself is a major part in internet marketing or the network marketing industry. Branding yourself is one of the most important marketing tricks on the books. We can make you stand out with branding that will make you proud. Branding yourself is the key to being different. A replicated site will get you replicated results.
Branding yourself is required to succeed in any field of work. Fluency in a foreign language tends to stand out quickly enough and is guaranteed not to be forgotten. Branding yourself is one of the keys to being a successful REALTOR?. Each Flyer will give you the option to include your picture, company logo, web site, and contact information. Branding yourself is just as bad.
Branding yourself is a concept that represents everything about your business or company. It sets your business and products apart from the competition. Branding yourself is the best way that you can generate sales and gain profits.
A business without a brand name is like a product that does not have a name. Branding yourself is the art of separating yourself from your competition. It is what attracts new customers with as little or no work at all.
Branding yourself is key to building your network of influence. When you volunteer for positions, help with fund-raisers or help with organizing committees make sure that what you do is fairly high profile. Branding yourself is part of a bigger picture that includes branding your website. Branding yourself is the key to professionalism not promoting some hotshot. Our team has a template system that you can plug into.
Branding yourself is more critical; the traffic you'll get isn't as important. Remember to include keywords in your byline: You want to be associated with the topic as much as possible. Branding yourself is one of the most important marketing tricks on the books; it is about being an expert or learning how to be an expert and then telling everyone about your knowledge. Branding yourself is one of the most important tasks you have as a small business marketer.
Branding yourself is a concept that represents everything about your business or company. It sets your business and products apart from the competition.
7 Ways To Boost Your Self-Image
In starting a small business it 's important to project a certain image to the world, but equally important to perceive ourselves at a high level. Here are ways to make you exude confidence about yourself and your business.
1. Incorporate or form an LLC.
When starting a small business, I was advised to incorporate for various tax reasons, but also because having a business entity would elevate my credibility -- in my own eyes as much as anyone else 's . It turned out to be wise counsel because indeed that has been my experience. Having "Inc." or "LLC" after your business name projects professionalism and purpose. It also helps to boost your image if you are signing binding contracts with individuals or other businesses.
2. Hire professionals to design your marketing materials and website.
When you're out in the world you only get one chance to make that first impression. Don't let your business cards, letterhead or website reflect anything other than high-quality design and feel.
Here 's why. One time I met someone at a networking event with whom I wanted to do business. When she handed me her brochure -- printed from a home printer, and business cards, perforated, home-printed -- I inwardly cringed, knowing I could not refer and recommend her 100% because she had not put 100% into her marketing materials. Her cards told me she cut corners, she was cheap, and she was bordering on unprofessional.
Also be careful using Vistaprint and other marketing tools. While you may be able to produce some quality items, you will not look original or polished unless you have your cards custom-designed. (I know because I have made this mistake myself and it affected my confidence level when I was handing out my card. When you create a marketing piece, ask yourself: If this were the only impression they ever got, is it good enough?
3. Join an organization, raise your credibility and increase your contacts.
Memberships do have their privileges. When you join an organization and start showing up regularly, people start to trust you. And once they trust you, they might just do business with you and send others to you as well.
You'll also expand your network this way. The more people you know, the more people know you. As I heard someone say recently, "You want to be 'top of mind' for other people. If you're out of sight, you're out of mind." So show up and get involved.
4. Say with pride: "I work from home!"
Yes, it 's okay to look small! Don't be ashamed because you have a home office and it 's only you, your spouse, a couple of kids and a cat working the business. I used to pretend I was bigger than I was and only admitted to having a home office if someone asked me point blank.
It may be that times have changed a little and working from home is no longer met with such skepticism -- but it may be tempting at times to pretend you're bigger than you are in order to impress and prospect. Don't do it! Just be genuine. Never forget how much you love working from home and don't be afraid to share that joy with others.
5. Have someone else create your voice message.
This may seem counter to the point I just made but the reason for having someone else do your message is to further enhance your own feeling of being "recognized" by a third party as a professional. Never mind that it was your sister 's voice! Or your old friend visiting from the UK. Having someone else say your name and your business name is a projection of you and an endorsement of sorts.
6. Establish yourself as an expert -- on and offline.
The minute you stop trying to sell your service or product -- and start emphasizing what it is you're good at, is when your business will become fun and will likely take off. So decide what it is that makes you such a smarty pants.
Are you a financial whiz? Then show up and educate people about finances. Are you sharp with design? Then share with people what you know about design. Do you have the best darn vitamins on the market? Then teach people about how vitamins work and why we need them.
Be exceptional. Be an expert! Give free presentations at your local library or chamber of commerce. Partner with complementary businesses. Establish yourself as one who knows something about something. You get to decide what it is you're an expert in -- and people will come to know that about you -- and buy from you as a result.
7. Write your bio, keep it fresh.
A lot of people have a hard time talking about themselves, but let me tell you this -- if you want to make money you'd better start talking!
You can begin the written conversation about yourself by answering questions such as: Who you are, what you do, what benefit you provide, what else you've done, your outside interests, affiliations, associations, etc.
Of course if you can write this in a lively, conversational tone, even better.
You'll need your bio for your website, for speaking engagements if you do them, and for organizations you join. Plus it boosts your image -- of course when you see all that you've accomplished actually written down, you'll probably impress yourself.
1. Incorporate or form an LLC.
When starting a small business, I was advised to incorporate for various tax reasons, but also because having a business entity would elevate my credibility -- in my own eyes as much as anyone else 's . It turned out to be wise counsel because indeed that has been my experience. Having "Inc." or "LLC" after your business name projects professionalism and purpose. It also helps to boost your image if you are signing binding contracts with individuals or other businesses.
2. Hire professionals to design your marketing materials and website.
When you're out in the world you only get one chance to make that first impression. Don't let your business cards, letterhead or website reflect anything other than high-quality design and feel.
Here 's why. One time I met someone at a networking event with whom I wanted to do business. When she handed me her brochure -- printed from a home printer, and business cards, perforated, home-printed -- I inwardly cringed, knowing I could not refer and recommend her 100% because she had not put 100% into her marketing materials. Her cards told me she cut corners, she was cheap, and she was bordering on unprofessional.
Also be careful using Vistaprint and other marketing tools. While you may be able to produce some quality items, you will not look original or polished unless you have your cards custom-designed. (I know because I have made this mistake myself and it affected my confidence level when I was handing out my card. When you create a marketing piece, ask yourself: If this were the only impression they ever got, is it good enough?
3. Join an organization, raise your credibility and increase your contacts.
Memberships do have their privileges. When you join an organization and start showing up regularly, people start to trust you. And once they trust you, they might just do business with you and send others to you as well.
You'll also expand your network this way. The more people you know, the more people know you. As I heard someone say recently, "You want to be 'top of mind' for other people. If you're out of sight, you're out of mind." So show up and get involved.
4. Say with pride: "I work from home!"
Yes, it 's okay to look small! Don't be ashamed because you have a home office and it 's only you, your spouse, a couple of kids and a cat working the business. I used to pretend I was bigger than I was and only admitted to having a home office if someone asked me point blank.
It may be that times have changed a little and working from home is no longer met with such skepticism -- but it may be tempting at times to pretend you're bigger than you are in order to impress and prospect. Don't do it! Just be genuine. Never forget how much you love working from home and don't be afraid to share that joy with others.
5. Have someone else create your voice message.
This may seem counter to the point I just made but the reason for having someone else do your message is to further enhance your own feeling of being "recognized" by a third party as a professional. Never mind that it was your sister 's voice! Or your old friend visiting from the UK. Having someone else say your name and your business name is a projection of you and an endorsement of sorts.
6. Establish yourself as an expert -- on and offline.
The minute you stop trying to sell your service or product -- and start emphasizing what it is you're good at, is when your business will become fun and will likely take off. So decide what it is that makes you such a smarty pants.
Are you a financial whiz? Then show up and educate people about finances. Are you sharp with design? Then share with people what you know about design. Do you have the best darn vitamins on the market? Then teach people about how vitamins work and why we need them.
Be exceptional. Be an expert! Give free presentations at your local library or chamber of commerce. Partner with complementary businesses. Establish yourself as one who knows something about something. You get to decide what it is you're an expert in -- and people will come to know that about you -- and buy from you as a result.
7. Write your bio, keep it fresh.
A lot of people have a hard time talking about themselves, but let me tell you this -- if you want to make money you'd better start talking!
You can begin the written conversation about yourself by answering questions such as: Who you are, what you do, what benefit you provide, what else you've done, your outside interests, affiliations, associations, etc.
Of course if you can write this in a lively, conversational tone, even better.
You'll need your bio for your website, for speaking engagements if you do them, and for organizations you join. Plus it boosts your image -- of course when you see all that you've accomplished actually written down, you'll probably impress yourself.
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