I was reading this story by Rafe Needleman on CNET about how Google’s new checkout service is a huge threat to Amazon:

The biggest thing the online superstore has going for it is convenience. Once you buy an item on Amazon, buying the next one is a one-click affair. But go to another store, and you’ve got to enter your credit card info all over again. Amazon wins for convenience…

Really? I’m no analyst but I have to disagree. The biggest thing Amazon has going for it is its customer service. I’ve ordered books from many of its competitors and the reason I keep going back to Amazon is that the books/cds/other stuff arrive consistently in line with my expectations. That’s it. If they had screwed up one of my first purchases, they wouldn’t have my business today.

This ease of checkout stuff is way down on my list. I’ve never used 1-Click and I don’t intend to start either. The reason I don’t use 1-Click is because I like filling out the payment details each and every time. I’ve got a number of different addresses, a couple credit cards and sometimes (although rarely) I send gifts. Since I would have to go through and check these things over anyway, I might as well just start from scratch.

Google will do pretty well with Checkout. But Amazon killer? I just don’t believe it.

Technorati Tags: googlecheckout, amazon, e-commerce

I got some interesting advice tonight from a friend who’s started two businesses. He thinks that one of the most important things to have going into a new venture is a rough financial plan. He articulated it this way.

Let’s say you’re starting a one person consulting company. One way to approach the problem is to start backwards from how much money you need to survive in the first year:

Amount you need = (profit/customer) x (# of customers)

Or you can go about it the other way:

# of customers you need = (Amount you need) / (profit/customer)

This is no substitution for the financials section in your business plan but it gives you a quick way of determining how things are going. That way you know ahead of time where you are in relation to your goals. My friend used this calculation when he decided to abort his last project because he realized that the number of customers needed was completely unreasonable in the given time frame. He credits this formula for the extra $50,000 in his pocket.

Technorati Tags: entrepreneur, financial, businessplan

I’ve learned a lot in the last couple of weeks. One of the first lessons of business communications is that you’ve got to differentiate yourself. Even if you can do a lot a different things, you’ve got to design your communications around one that your intended audience will find most compelling. This is a bit of a gamble. A calculated gamble, but a gamble nonetheless.

Trying to be everything to everyone severely reduces the impact of your message. Ask anyone in communications — it’s a big no no. People will find it hard to relate your product/service to something going on in their lives. People relate to specifics. Details are important.

For example, we’re providing all sorts of technology implementations but when I talk to SME owners I tell them the following:

We’re technology consultants specializing in systems integration. We focus on helping companies growth profits through a better understanding of their data. Typically when we deal with companies, they’re frustrated and disappointed by how hard it is to manage day-to-day operations because the data sits in different programs OR they’re concerned that they’re falling behind their competitors because they don’t have the processes in place to measure their performance.

Again, that’s not all we do — but that’s what we hang our hat on because we think SMB owners can relate to these problems. So when you’re meeting a potential client for the first time, you’ve got to take a bit of a gamble. Throw something out there that’s specific, something that they can relate to and, with any luck, it will resonate.

Technorati Tags: communications, differentiation, entrepreneur

The whole Second Life phenomenon is just too weird. For those of you who don’t know, it’s an online society where you live out a second life. What makes Second Life different is that you can buy (with first life money) everything you need to live a great second life.

Take Anshe Chung’s Second Life land development business:

Second Life participants pay “Linden dollars,” the game’s currency, to rent or buy virtual homesteads from Chung so they have a place to build and show off their creations. But players can convert that play money into U.S. dollars, at about 300 to the real dollar, by using their credit card at online currency exchanges. Chung’s firm now has virtual land and currency holdings worth about $250,000 in real U.S. greenbacks.

Now American Apparel is opening the first Second Life store where you can buy clothes for your avatar for $1. What?

I guess this is the first sign that I’m slowing heading over that hill. What the heck is going on? I remember, in my day, we didn’t have second lives…

Technorati Tags: secondlife, e-commerce

I attended the VISA big thinking conference on Monday and it was quite good. Most of the sessions I went to were really informative and interesting. If you’re a small business owner in the Toronto area, I strongly encourage you to attend next year.

Here are some of the most compelling thoughts from this year (in my humble opinion). It’s a very brief list considering have about 7 pages of notes from the conference.

• Your job as a business owner is to make stress go away. Understand your customer’s stress and make it go away more effectively than your competition. — Donald Cooper
• Specifics are engaging. A niche doesn’t necessarily have to define what you actually do — but it helps your target audience identify your particular product/service with their situation. — Michel Neray
• The first secret to coaching your team is to demonstrate that you are dedicated to helping everyone on your team become everything they want and everything you need. Build their self-esteem or don’t say it. — Tom Stoyan
• Three business imperatives: (1) focus employees on customers, (2) measure, track your progress and redirect resources when necessary and (3) have a management system in place to keep you on track. Also, having fun should be a part of your management philosophy. You need to incorporate fun into your management style. — Kraig Kramers
• Make decisions quickly. You have to be working all the time. Always keep the message the same (look at their ticker symbol TFR i.e. two-four). Never wait until tomorrow to do something that can be done today. — Teresa Cascioli

I think these events are primarily supposed to be about meeting people and I did a lot of that too. But thanks to VISA for putting on such a quality event. Excellent stuff.

Technorati Tags: bigthinking, VISA, essentialmessage, kraigkramers, canadassalescoach, donaldcooper, lakeport, beer

From the bizarrely inspirational department comes Zach Slow who used his website to win a date with UK emcee Lady Sovereign (Cha Ching):

This has reminded me that you absolutely, no matter what anyone else says, have to take risks to get exactly what you want out of life….I really believe that and this simple project has reaffirmed that for me. Stepping up, asking for what you want in life, and then working to get exactly that is probably the most fulfilling single thing you can do in your life. If you’re holding back, I suggest you think to yourself, “If Zach Slow can make a crazy website to go out with his favorite emcee, then I can surely do whatever the hell I want! After all, it would be impossible to look crazier than him!”

From: http://music.yahoo.com/read/news/33271399

Technorati Tags: ladysovereign, inspirational

If there’s anyone out there in the GTA who has a business plan and is looking for funding, please post a comment on this entry and I’ll get back to you with the details. There’s a unique opportunity to present to a group of VCs — but you’ve got to act quickly because you’ll have to present tomorrow June 6th or Thursday June 8th.

Technorati Tags: VC, Toronto, entrepreneur, venturecapital

Here are some random thoughts about execution from the past week of the life of your host, Brian Ivanovick:

• You or your company will make mistakes — and that is okay — don’t let the fear of mistakes get in your way. (Source: Coach Kara)
• You will hear “no” or just screw up sometimes — and that too is okay — everyone who does something fails some of the time. (Source: Coach Kara)
• Successful people try things more often than unsuccessful people do. If you want to succeed, you have to fail more. (Source: Business partner Reg found somewhere on the Internet)
• Try new things just to try them. You don’t have to try to become the best at everything you do. Sometimes being just okay (or even bad) is perfectly acceptable. (Source: Prof. David M. Lank)
• You’re allowed to be a beginner. (Source: Emmet Conor O’Reilly)
• Seeking perfection can get in the way of moving forward. Seek out what is good enough. You always have time to fix it later. (Source: Paul Carr and The Paradox of Choice by Schwartz)

Enjoy the rest of your weekend.

Technorati Tags: perfection, fail, execution, mistakes

You can create goals, strategies and spreadsheets all the livelong day but without someone holding you to your commitments — where does your motivation come from? For the first little while you will probably be able to motivate yourself by sheer force of will. Eventually however, you need someone to answer to when you don’t live up to your commitments.

When you’re working for someone else that task is already done for you — like it or not — you’re accountable to your superiors. VCs, angels and other investors should hold the entrepreneurs  accountable. But when you’re starting a new self-financed venture, who are you really accountable to?

Find someone to hold you accountable. Find someone who will call you on your B.S. Most importantly, find someone who will challenge you to determine why you didn’t live up to your commitments and help you work through the problems.

This role could be filled by a mentor, personal coach or even a spouse. Just make sure you find someone to make you accountable so you don’t end up spinning your wheels.

Technorati Tags: accountability, mentor, entrepreneur