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If you’re looking for funding in the form of venture capital, one of the most effective ways to do your research is by reading the blogs of venture capitalists. Quite often these folks will write about what they’re interested in, what companies they recently funded and what is required in order to submit a business plan. To give you a jump start, below are what I consider to be the best VC blogs on the Web (in no particular order):

• VC Confidential: This blog exists to encourage comfortable and positive dialogue between entrepreneurs and the “dark side.” The blog is maintained by Matt McCall a co-founder and Managing Director of Draper Fisher Jurvetson Portage Venture Partners.

• A VC – Dubbed the “Musings of A VC in NYC,” this is the best of the best. Run by long-time venture capitalist Fred Wilson (a VC and principal of Union Square Ventures), you’ll find tips and hints on what to do and not do when meeting with VCs, how to create a great business plan and random thoughts from someone who knows his stuff.

• Startups and Angels: Along the way to success: This one is brought to you by an angel - angel investor and advisor that is - Tim Keane, who is the current Entrepreneur in Residence at Marquette University, in the College of Business Administration and Director of the Kohler Center for Entrepreneurship, a cross campus initiative of Marquette University. Don’t bypass this one!

• Ask the VC: Really, Ask the VC with the online submission form. Brad Feld and Jason Mendelson are listed as the co-authors of the blog and have been working together since 2000 when Jason joined Mobius Venture Capital, a venture capital firm that Brad co-founded.

• Beyond VC: One of the most insightful VC blogs you’ll find on the net that has been in existence since 2004. Maintained by Ed Sim, a founding member and Managing Director of Dawntreader Ventures.

• Punctuative!: With an exclamation point for a reason, Punctuative! is not only a comprehensive resource for entrepreneurs, it is the only to offer VCDB – a free venture capital database. Matt Winn, an associate at Chrysalis Ventures, is the brains behind this awesome creation.

Do you know of some other great VC blogs? Please add them in the comments section below, and I’ll be sure to update this post regularly with your recommendations.

Tags: angel investor, funding, money for starting a business, start-up, VCs, venture capital, venture capitalist

We must never forget that people participate in online communities for a variety of reasons. But they do share some common traits. People log on at-will (when they want to and when it is convenient for them) and participate in activities that they enjoy (not everyone wants to send and receive IMs). This is primarily a do-it-yourself, do-it-my-way activity. For those operating an online community, a sense of balance must be achieved and finding that balance can be quite a challenge. If a community is under or over-managed or if the sense of fun, purpose or belonging is removed, people will simply stop participating. At the end of the day, you really need to listen to your community. They drive your success, not the other way around.” Crystal Williams – February 2008

Building an online community is like walking a tightrope hooked to washing machines on the spin cycle. It’s tough – really tough! It takes knowledge and experience to get it right. But this is a relatively new area and not many people have this special know-how.

These are the critical steps for planning, launching and managing a thriving online community:

• Community Needs Assessment and Planning
• Community Design Management and Deployment
• Community Recruitment and Outreach
• Incentive Program Design and Administration
• Ongoing Community Management and Moderation
• Community Mediation and Arbitration

Types of Online Communities

In short, there are three broad classifications that online communities fall into (each with different requirements and purposes):

• Social Networking and Shared Interest Communities (general, broad-reaching communities or those defined by a common activity such as the sharing of knowledge, sports, trivia, etc.)
• Business-focused or Corporate Communities (inward communities comprised of employees, customers, members of a specific professional group, etc.)
• Geographical or Demographical Communities (people connecting from specific regions around the world or being of the same gender, race, age, etc.)

Community Dynamics

No two online communities are created equal, but they all share similar dynamics:

Motivation(s) for participating: Participation in an online community is largely fuelled by intrinsic motivation. One of the best definitions of intrinsic motivation is from the book Motivation in Education by Paul R. Pintrich and Dale H. Schunk. Their definition is simple, yet brilliantly sums up why people participate in online communities: “intrinsic motivation is the motivation to engage in an activity for its own sake. People who are intrinsically motivated work on tasks because they find them enjoyable.” This desire comes from within, rather than from any external source or extrinsic motivation. Primary motivations for participating in an online community are: 1) satisfaction in completing a specific task or activity; 2) ongoing recognition and praise for contributions (known as Egoboo); 3) giving for the greater good (such as sharing knowledge freely).

Sense of ownership: After time, regular or power users will develop a sense of pride and ownership of “their” community. And since they actively participate in core activities, they are key to future growth and development. They should be invited to take part in recommending and viewing new tools and features before they are released. In additional, their status in the community should be elevated and made public either through a special symbol or designation such as Community Administrator or Community Leader.

Shared interests, ideas or goals: People enjoy connecting with other like-minded individuals whether on or offline. That’s why online communities typically consist of users or various groups of users who share the same interests, goals or ideas.

Community Life Cycle

Several models have been suggested for the life cycle of an online community. One model presented by Amy Jo Kim, author and online community architect, suggests the following:

• Peripheral (Lurkers) – Outsiders with unstructured, erratic participation
• Inbound (Novices) - New users, interested and invested in the community; on their way to full participation
• Insider (Regulars) - Committed participators and contributors; active members of the community
• Boundary (Leaders) - Members brokering interactions and encouraging/sustaining participation; visible community leaders
• Outbound (Elders) - On their way to leaving a community, perhaps to another community due to a particular change in the community or personal choice

In yet another similar model presented by Forrester Research, the life cycle of a community as a whole is directly tied into the levels of individual user participation (low to high).

Based on the two models, it is apparent that a high level of collaborative participation is the symbol of a mature, established online community. Critical in the life cycle and management of any successful online community is the ability to effectively turn lurkers into regulars – active participants – and regulars into leaders – evangelists.

The Benefits of Online Communities

Some experts tout the fact that setting up an online community is extremely expensive, frustrating and once set up, difficult to manage. While these are valid points, what ‘dynamic’, in-the-moment site is free and effortless? All good Web sites take time, money and nurturing. And if there is one type that offers a significant return-on-investment for these efforts, it is a community-based site.

The benefits of setting up your own online community are immeasurable. Here are just a few of the perks:

• Getting to know people on a personal level; gaining key insight into their needs, wants and habits
• Having access to a virtual 24/7 focus group that can offer feedback at anytime to help make your products/services better
• Generating a constant source of referrals – like a permanent viral marketing campaign
• Increasing your brand awareness through a low-cost channel

Nurturing an Online Community

Online communities are all about people – employees, customers, Web site visitors, members, prospects, constituents, volunteers - people. And people love to be recognized and appreciated. That’s why constant praise, ongoing communication and special incentives go a long way to fostering a thriving community. Below is five-step plan for growing and maintaining a virtual community:

1. Send personalized welcome notes to all new users via their message boards, IM or e-mail. Thank them for joining the community and encourage them to participate more. Send them periodic notes of appreciation, hello’s and get to know members on a one-to-one basis. Knowing a little bit about them creates a connection.
2. Establish a structured program that awards contributors for their various levels of community participation. Place cool logos on profile pages for everyone to see when members successfully reach the various milestones. Make sure the program is posted in a public area of the site.
3. Let the most active participants take ‘ownership’ of the site but offering them a certain set of administrative responsibilities and participation in the product development process. Give them a sandbox to play in so that they can test drive new features before they are released. Make sure to get their feedback and pass that feedback along to the appropriate department(s).
4. Implement an incentive program whereby the most active participants are sent periodic tokens of appreciation such as company t-shirts and items that tie in with their likes and hobbies.
5. Don’t use corporate e-mail addresses when communicating with members of a community. This is a major turn-off which says that you are making money at their expense. Remember that they are essentially volunteers. You should never be above them. For this reason, opt to use a Gmail or Yahoo! address. This is one way to foster a feeling of goodwill.

As a final note, remember that it’s not about “I, you or me.” In an online community it’s all about them and ‘we’.

Tags: benefits of community, community management, growing an online community, managing online communities, Online community

In an earlier post, I presented a few business ideas that focused on green living and bettering our environment. This business idea is similar; however, it will require a bit of auto know-how or some familiarity with auto repair. As you know, there’s a lot of buzz in the news and at the gas pump about the cost of fuel. Prices go up and down, up and down…but one thing is for certain. We will never see gas for pennies on the dollar again. Those days are gone. And with gas prices reaching record levels, people are searching for alternatives. Several companies have stepped up to the plate, offering consumers aftermarket products that convert gas guzzlers into efficient, so-called green machines (there is some controversy surrounding several products). Some of these kits transform autos from traditional diesel eaters into ethanol breathers, while others convert autos to run on electricity, vegetable oil and even water.

While all of these alternatives sound attractive and can be bought online or at the local auto parts dealer, many consumers have no idea how to make these modifications, nor would they feel confident enough following the instructions. So here’s this huge market opportunity for all you auto DIYers. Help folks save money at the pumps by launching a shop or mobile service that specializes in converting autos from traditional gas to alternatives sources of fuel or power.

Here’s a look at what’s required:

Approximate Start-Up Costs: Can be launched for under $5,000 (cost of acquiring a supply of start-up kits, Web site, telephone system, fax machine, business cards and miscellaneous supplies); a bricks location can also be set-up, which would raise the start-up costs considerably including the rental of commercial space, utility deposits, etc.

Potential Names: Green Machines, Alternative Auto Power, ConverCar, GazzKickers, etc.

Barriers to Entry: Alternatives such as smart cars and hybrids, consumer awareness, adoption of alternative power, etc.

Aside from paying full retail at auto parts stores such as Pep Boys, VIP, AutoZone, NAPA and Advance Auto Parts, there is also the option of buying direct from the manufacturer of these products. Here are a few key suppliers:

Hendrix Systems (LPG and CNG conversion kits)

IMPCO Distributors

Quantum Technologies

Tags: Advance Auto Parts, auto parts, AutoZone, convert from gas, electric cars, fuel cells, gas to water, green car, Pep Boys, VIP

So it’s been a few years since I’ve had time to read a book cover-to-cover. Well, I broke the cycle last week and picked up a copy of Yes!: 50 Scientifically Proven Ways to Be Persuasive, by Noah J. Goldstein, Steve J. Martin and Robert B. Cialdini. And boy, I’m glad I chose this one. I like to think of myself as pretty darn persuasive, with an uncanny ability to persuade (duh), influence and get people on the same page. But wow! Infused with humorist wit and written in layman’s terms, Yes! taught me a few new things about the art or rather, science of persuasion. I always knew that using social psychology could achieve results in certain situations, but what about offering people less to make them want more… And why could playing dumb sometimes work to your advantage?

Now don’t let the title or the various big words inside the book scare you off. What’s nice about Yes! is that scientific reality is explained using real-world examples from pop culture, classic literature and everyday occurrences.

You might be wondering why I am recommending this book to you – the entrepreneur. Well, whether we like it or not, we as entrepreneurs are constant salespeople. We are in sales whether it’s giving a presentation to an angel investor or trying to hire the most in-demand techie out there! So it’s critical that we understand how to be persuasive without coming across as pushy, over-bearing or pathetic. This book will give you all the hints and tips you need for using the power of persuasion to reach your goals, surpass your objectives and sell, sell, sell – in all its forms.

It’s around 250 pages, but the chapters are short and to-the-point, so you’ll have this read in no time at all. I promise – it’s a must-have for any entrepreneur. Pick up your copy today. I’ve even included a link to expedite the process.

Yes!: 50 Scientifically Proven Ways to Be Persuasive

Happy reading! This one is a true masterpiece.

Tags: Add new tag, entrepreneur, persuasive writing, selling, social psychology, Yes! 50 Scientifically Proven Ways to Be Persuasive

Fashion is all around us. From the moment we get up and put on our terrycloth robes to the second we go out for a formal night on the town. We make a statement each time we get dressed or change what we’re wearing. Yet we rarely stop to think about the individuals who spark the trends – those who have and continue to create some of the greatest designs in history. I’m thinking little black dress…board shorts…stilettos… Fashion is certainly big business! But to break into the fashion industry and get your designs noticed takes a lot of work and money. And unfortunately these barriers mean that some of the best fashions probably go completely unnoticed. Well, now there’s help for those budding artists just starting out - those who might go on to become the next Calvin Klein, Giorgio Armani or Vivienne Westwood. That help comes in the form of an Internet facilitator known as NOT JUST A LABEL (NJAL). Here’s more from Stefan Siegel and his fashion-worthy start-up:

Please tell us about your start-up NJAL. What makes it unique? And how does it fit into the marketplace?

Stefan: Young aspiring fashion designers face enormous hurdles at the beginning of their careers and NOT JUST A LABEL believes that with a platform such as ours, we can provide the supporting leg for each designer. We put the spotlight on tomorrow’s fashion creators and bring young talents and the industry together. It is unique as it is the first Internet-based platform to solely showcase young fashion designers which offers them a free tool to showcase their collections and acts as a global directory and talent pool for the fashion industry.

Who are your target users? Advertisers?

Stefan: In terms of active users, we limit NJAL to fashion students and young designers. Students and graduates must have their first collection in place. In terms of independent designers and young labels, we focus on those who cannot yet afford sales agents, PR agencies and their own shops. Regarding visitors on our site, our target groups are fashion professionals ranging from editors, photographers, recruiters and many more.

What has been the most challenging aspect of launching this business?

Stefan: So far I think it was the setup of the Web site itself. NJAL is based on open source software elements and has been developed by my brother in-house. Therefore the initial launch has been postponed several times and we were not able to implement all the features we initially believed we could offer to designers. However, developing the site ourselves gave us also a lot of flexibility and the look and feel of the Web site is exactly how we initially wanted it to be.

Did you write a business plan? How did you fund the launch of your business? Are you currently seeking investment?

Stefan: Yes, I wrote a business plan in late summer 2007 as we planned to go and seek investments at a very early stage. We were, however, able to raise some funds from friends and family and decided to go our own way for the first year. We thought the whole idea of NJAL with its planned follow-up projects could eventually move many aspects in the fashion industry, and so we wanted to first prove that there was a gap where NJAL would fit in, and secondly we wanted to remain the artists, the creatives and not come across as too commercial to our users. NJAL has now been live for almost four months, we have over 400 young fashion designers from all over the world and we are now looking for investors or sponsors to support our follow-up projects which will happen both on and offline.

Is this your first start-up venture?

Stefan: Yes, I previously worked for large companies in the fashion and finance industries. Being self-employed is what I always wanted to do and even if it is a roller coaster of feelings and a constant mix between fear and joy, I would not go back to a corporate structure.

What advice can you give others looking to start their own businesses?

Stefan: I must say I am lucky to live in London, a city which lusts for new ideas and where young people believe in things that are new. We contemplated on where to base NJAL for the first year, as we knew the high living costs in London would affect the business very soon. However a young business must be located in a city filled with inspiration; a city where official channels are laid out to host new businesses and ideas and where your dialogue partners don’t tend to answer “why”, but rather “why not.”

If you had to start all over again, what are some things you would do differently?

I would have started six months earlier when the business idea first came to mind.

Tags: business, clothing designers, entrepreneur, fashion industry, Internet, NOT JUST A LABEL

Try this quick quiz:

1. How much are your customers worth?
2. What is the value of your customers (best and worst)?
3. How much is a new customer worth to your company?
4. How much should your company spend trying to attract and acquire new customers?
5. How much should your company spend trying to retain existing customers?
6. Which acquisition sources generate the best customers?
7. Which offers attract the best customers?

If you are unable to answer any of these questions accurately, you’re with a large number of marketers and entrepreneurs. The majority of business owners do not understand that marketing is more than generating new customers.  It’s also about keeping those you have – and keeping them for life. Every one of your customers represents incredible potential, and you need to know exactly how much in order to make informed and knowledgeable business decisions.

Relationships are built on value and service. The only clear way to quantify the value of a customer relationship or the value of repeat business, is to determine the Lifetime Value of a Customer (LTV). The basic definition of LTV is the total amount of sales revenue the average customer contributes to a company over the life of the customer-business relationship, less the amount the company spends to acquire and retain this customer. The difference between the two values is defined as the Customer Lifetime Value.

Measuring LTV

Measuring Customer Lifetime Value is useful because it enhances understanding of product profitability, customer behavior, expense behavior, the way in which customer relationships evolve and how each of these factors are affected by product changes and the economy. There are, however, certain points to keep in mind when determining LTV:

• LTV is usually measured over a long period of time, typically four or more years.

• A large amount of historical data is required to accurately measure LTV. Some of this data includes: customer transaction history, item level detail of their purchases, how much they have spent, when they have purchased, how many returned items, where they have purchased, why they have purchased (promotions, holiday offers, etc.), financial measures, cost of goods, variable/fixed costs, promotion history and details, etc. If detailed information in any of these data categories is not available, estimates are often used.

• It is possible for different types of customers to have different values, so measuring individual customers and customer segments is very common.

• The intent of LTV analysis is not to count pennies, but rather identify repeat customers that can be counted on.

LTV may be estimated by the historical or forecasted approach. The historical approach takes all available historical data on a specific customer(s) and tracks all revenue and costs associated with them. The forecasted approach, however, takes only recently observed trends of customer behavior and forecasts them into the future. The historical approach will present the most accurate data, but where the economy is changing so rapidly, the data from the forecasted approach is sometimes more useful.

While there are many complex methods for measuring LTV, the most basic equation is as follows:

1. Average price per sale (total sales revenue less sales expenses, such as advertising, marketing promotions and cost of goods sold, divided by the total number of sales)
2. Average number of times the customer will purchase over a one-year period
3. Calculate the amount made from the customer in one year
4. Multiply the one-year amount times the number of years customer is likely to purchase (which could be obtained from residency statistics available from the Bureau of Census)

• Average sale amount (less relative expenses, etc.) = $34.00

• Average number of purchases per month = 3/month

• Average monthly revenue = $102.00 ($34.00 X 3)

• Average yearly revenue = $1,224.00 ($102.00 X 12)

• Residency = 7 years

• The Lifetime Value of a customer = $8,568.00

This may seem like a low figure for a seven-year period for one customer, but the number of referrals the satisfied customer sends into the store can again multiply that figure.

Customer refers two friends and five family members:

7 X $8,568.00 = $59,976.00

The goal of LTV projections is to guide your marketing and strategic decisions and to enhance the total Lifetime Value of your customer base, therefore increasing revenue and profits. When you realize the value and earning potential from just one of your customers, you will clearly see how much your customer is worth to your business.

Tags: CRM, customer lifetime value, customer relationship, how much is a customer worth, LTV, marketing

As you walk to the front of the room, your heart begins to pound heavily in your chest. The walls and ceiling seem to be closing in around you. Where there was air only moments before, you can hardly breathe as your pulse quickens and a river of sweat flows down the small of your back. Could you be having a heart attack? If you’re not at the dentist office or watching Silence of the Lambs, chances are it has nothing to do with your de facto cardio muscle. In fact, you are most likely suffering from one of the world’s most common fears…the big, the bad, the bold, glossophobia. Otherwise known as the fear of public speaking, glossophobia (glosso means tongue and phobia means fear in Greek) is believed to be the single most common phobia, affecting as much as 75 percent of all people - including entrepreneurs.

What is glossophobia?

Although it might sound like a hip new dance move, glossophobia is far from fun. This widespread issue is actually considered a social anxiety disorder (SAD). According to the Social Phobia/Social Anxiety Association, a social anxiety is an experience of fear, apprehension or worry regarding social situations and being evaluated by others. Everyone varies in how they experience anxiety in this way. Situations that trigger a response also vary from person to person. Anxieties about public speaking or presenting in front of a group are very common SADs.

So, do you have glossophobia?

Let’s find out. A person living with glossophobia will have extreme anxiety immediately before, days ahead or even just thinking about having to verbally communicate in front of a group of people. It’s called stage fright, even though some individuals are able to dance or perform in public without any onset of an attack. Speaking is what seems to get the best of them. So if you find yourself hyperventilating and overwhelmed with anxiety at the thought of standing at a podium, you could very well have glossophobia. Other symptoms include avoiding events where the attention might shift directly to you or an onset of panic or nausea in such circumstances. You might even find yourself stuttering or completely unable to speak. And no, sign language and mime are not viable alternatives. It’s important to determine whether or not you have this phobia, get to the heart of the matter and implement solutions to overcome your fear once and for all. To work towards a solution, you need to find out why you have stage fright. Read on.

What causes glossophobia?

Because people have various reasons why they dread speaking in public, there are many possible causes of glossophobia. It can be as simple as the fear of presenting poorly to something more complex like a single traumatic event. For instance, maybe you spoke in front of a classroom of kids as a child and they laughed at the way you were dressed. Or maybe you had a presentation not go as well as expected. These circumstances may have created an ongoing apprehension about public speaking – causing you to avoid the podium or stage at all costs. Over time this can lead to a severe case of glossophobia. On the flip side, glossophobia may also have no specific cause, as some people fear anything unpleasant – which includes speaking in front of an audience.

How do you overcome glossophobia?

Fear is a normal, natural and important part of human nature, working as a built-in defense mechanism. It is the emotion that alerts us to dangerous and precarious situations, and helps us to protect ourselves. For that reason, you should never feel ashamed or less of a man or woman for having occasional bouts of fear. You can actually make fear work for you. When fear sets in, so does adrenalin. Adrenalin can be used as energy to overcome glossophobia. It is definitely mind over matter and here’s how it works. First, admit that you have a problem. Don’t make excuses or apologize for your nervousness or fear. Next, tap the energy that comes from your fear of public speaking. Always be aware of your breathing. Never allow it to become too rapid or too shallow. You’ll want to adopt a positive outlook and always exude confidence. Remember that you have something very worthwhile to say and that your audience is interested. They are not there to judge or condemn you. And finally, establish some type of warm-up routine before a speaking engagement. You might try a few simple exercise movements such as shoulder shrugs and curls. Or opt for meditation. There are some great books out there on the topic.

When should you call in the pros?

Having a fixated and obsessed fear of speaking can significantly and adversely affect a person’s life. That’s why you should seek treatment if you believe that you have a severe case of glossophobia, one that you can’t overcome on your own. Professional treatments for glossophobia include hypnotherapy, prescribed medications and cognitive behavioral therapy. You can also enlist the services of a professional association such as Toastmasters International, a non-profit organization that helps people develop public speaking and leadership skills.

Whether you are able to conquer it on your own or with the help of a specialist, once under control you can put glossophobia in perspective and eventually out of your life for good. Just imagine how great it will feel to stand at the podium with ease! Good luck!

Tags: glossophobia, public speaking, speaking in public, stage fright

When people think about what’s involved in starting or growing a business, they often have visions of elaborate marketing and business plans, hours upon hours of research and months of strategizing and hair pulling. If you’re one of those who just can’t wait for Christmas morning to open the gifts, you’ll be glad to know that there are some five minute business opportunities worth exploring. These ideas are easy to implement, take minimal time and effort to get off the ground and have a proven track record of success.

Without further ado, here are several ways to make some extra cash in a flash (and I thought I’d never have a chance to use that phrase):

Sell your SERVICES on eBay: Yes, you read that correctly. This great big auction destination is not just for selling vintage crepe makers or Aunt Ethel’s hand sewn socks. You can also auction off your services such as freelance writing, Web programming and so on. Here is a direct link to eBay’s Specialty Services area and a link to the Services Community Forum. Last year, I posted a Buy It Now auction for business planning services as a test. Within 48-hours, I landed a small project. Now that’s results.

Sign up as a freelance service provider on eLance or Guru.com: If you provide a service such as Web design or market research, consider signing up as a service provider on freelance marketplaces such as eLance or Guru.com. Here you can bid on projects that buyers post in every conceivable category. There are subscription fees involved; however, just one project often pays for the monthly or annual fee.

Set up a Webstore or become a merchant on Amazon: Amazon offers countless programs for making money online. One of the most convenient is their Pro Merchant program, which is designed for those who have a lot of ‘stuff’ to sell. This is a great way to reach more than 76 million potential buyers. I recently discovered that a local apple orchard and country store augments their bricks location through Amazon. So this is a great way to generate an online presence for an offline business.

Writing examples or how-to eBook: Okay, this one might take you more than five minutes, but it’s a hot business opportunity. If you have a track record of writing winning proposals or sales letters, consider compiling some of your best into an eBook that you can sell online via Amazon or your own Web site or blog. People love getting their hands on real-world examples and are always looking for sample documents online. This would also work for business plans, brochures, press releases and many other business related writing or create your own how-to eBooks on starting a business, marketing your services, etc.

Become a paid guest contributor to a popular blog: There are many existing blogs in the blogosphere looking for guest contributors – and quite a few are willing to pay for these services. If you offer a product or service that complements a blog, don’t be afraid to reach out to the administrator of the site. Corporate blogs are great targets.

Do you have other five minute business ideas? If so, please share them in the comments section below.

Tags: Amazon, blog, eBay, elance, Guru, make money fast, make money fast online, make money quick, quick business ideas, quick businesses

Social networks… they’re cool, they’re fun… And they’re everywhere you look nowadays. The problem or should I say downside to most of these sites is that they’re very broad – based on the MySpace and Facebook concepts – behemoths that are hard to compete with. While the barriers are somewhat high from a competitive standpoint, there are all these niche opportunities waiting to be exploited. Well our featured start-up this week is all about niche exploits and building upon a great business concept. His name is Alex Teplitxky and he has discovered a huge gap in the social networking space (and one he intends to cover). Here’s more from Alex and his exciting start-up ActivityLounge.com:

What is ActivityLounge.com? How will it differ from sites such as Facebook and MySpace? Target audiences?

AT: ActivityLounge.com (AL) is a social network for outdoor, alternative and extreme sports enthusiasts. AL is not only for snowboarders, skydivers or kite surfers but also for hikers, climbers and backpacking gurus. In total we will have 38 activities to choose from. AL obviously differs from MySpace and Facebook in many ways, starting from the concept itself and the target audience, but also in terms of the structure of the platform. With AL, we are really focused on member interactions and event organization. Each activity we represent has its own “Lounge” where members (Loungers) will be able to interact either via the forum or one of a few additional modules such as the “ShoutOut” or the “Loungers looking to do something now” areas. ActivityLounge will also be a news source for everything outdoor and extreme, covering on our blog the most important events and happenings.

The final goal of AL is to be much more dynamic than Facebook and MySpace, so our members can log in and find things to do with other members at anytime, anywhere. Everything will be more obvious online.

Where did you come up with the idea for ActivityLounge.com?

AT: I came up with the idea of ActivityLounge a couple of years ago (time flies) when I was living in San Diego. At the time I was finishing up classes toward my degree in International Business and all I could think about was going out surfing, climbing or riding my motorcycle in the hills after school. Most of the time, my friends were either at work or in class when I wanted to climb so I couldn’t go. I would end up riding to the beach and practice surfing (I’m really bad at it) by myself. At that point, I figured there should be a social network targeting people like me. I checked, there wasn’t anything close, so I decided to get a team together and do it ourselves!

Is this your first start-up? What other businesses have you operated or been involved with?

AT: Yes, ActivityLounge.com is my first start-up. The only other Internet related job I had was working as a French Quality Rater for Google. However, I’m not alone in this project and the people I am working with have a lot more experience than I do. Also, living in the Silicon Valley for a while felt like being part of a giant start-up anyway!

Have you always been entrepreneurial? Do you think an entrepreneur is born with a passion for business or is this something learned over time?

AT: I didn’t always realize I was entrepreneurial, but even as far back as elementary school my little friends were quick to label me the “businessman!” Today they’re still convinced I’m going to be a rich entrepreneur at some point. I hope they’re right! When I hear a good idea, I always think of business plan for it right away and try to figure out if the idea is financially viable. I always try to find ways to make things or situations better.

In my opinion, entrepreneurs are born with a passion for business. I believe it’s a particular personality trait that you have or don’t have. It’s about your level of risk aversion and the satisfaction that you get from creating your own project and seeing it grow from the sacrifices, efforts and time you put into it.

What advice or pointers can you give others looking to start or grow a business?

AT: I have a lot! But I guess my biggest advice would be: Don’t procrastinate! If you want to start a business and you believe in the concept: go for it, but never sleep on your laurels. Time flies and it’s always better to fail sooner than later. Those who are and have been truly successful work day and night! Forget about 40-hour weeks.

In terms of personal finances, I was told you should always have six months to a year of savings before you decide to fully commit to a project. Now I understand why! Being an entrepreneur means you will be working very hard, for a while, and make no money. So make sure you have what it takes to survive while you start or grow your business. If you start taking side projects or jobs, you will lose focus of your start-up and it’s likely not to be as successful.

Alex also points out that ActivityLounge.com will have some wiki-based elements, contained in the ActivGuide section. ActivGuide will enable users to share Travel Stories, Spots/Venues and Gear advice/tips. Initially AL will be invite-only as part of a private beta test. Having invite codes will also help Alex and his team track who is inviting the most people so that they can send them awesome thank-you gifts. The main page is currently down for programming, but will be up again soon.  For those interested in being an alpha tester, Alex encourages you to contact him at alextep @ gmail.com (no spaces).  Once beta testing and updating is complete, AL will be an open forum, moderated by some of the top athletes in the world as well as many outdoor/alternative and extreme sports enthusiasts. How cool is that?

My only question… what about cheerleading? It didn’t seem to make the list.

Tags: ActivityLounge.com, entrepreneur, social networking, social networks, sports, sports enthusiasts

1. Start blogging and make sure that blog is integrated into your corporate or business Web site. Search engines like Google LOVE content! So keep yours fresh and consistent to give your online presence (and ranking) a boost. You hear a lot about keeping blog posts short and sweet. In actuality, you offer your visitors so much more when you put some meat into your writing. Plus search engines like pages with at least 300 words. So don’t be afraid to expand your posts. You’re doing everyone a favor!
2. Sign-up for Twitter, set up your profile and search for like-minded entrepreneurs or potential customers. Start following them. You might even consider sending them a “Hello, great to connect with you here on Twitter” message if they start following you as well. Make sure to post an update every single day.
3. Read and comment on other blogs. Don’t spam these sites! Make sure you are really reading what these folks are writing and add something of value in your comments. Always include your Web site or blog URL.
4. Reach out to people in your existing network – not necessarily former or existing clients – but colleagues. Let them know what you are up to and ask how business has been for them. Quite often, potential opportunities emerge from conversations such as these.
5. Join LinkedIn and start networking. Start by searching for people you might know and then send invitations to those you do, but who have not yet signed up for this service. Answer some questions related to your field and establish yourself as an expert.
6. Create a short video related to the services or products you offer and upload it to Viddiction, YouTube and others. This might be a how-to video or even a video brochure.
7. Have some t-shirts and hats done up with your business logo on them and send them to your best customers or clients. The quickest and most affordable way to do this is through CafePress.
8. Exchange links with other businesses and blogs. Send them a quick message and ask if they would be interested. Typically you should look for those offering products and services that compliment your business.
9. Add a contact form to your Web site or blog. People should be able to get in touch with you quickly and easily.
10. Join an advertising network like AdBrite, Google AdSense or Casale Media, among others. You’d be surprised how beneficial these services can be.

Tags: AdBrite, AdSense, business, exchange links, Google, networking, online advertising, YouTube