Some things to consider for you business plan and pitch.

Source:  The Air Guitar Shark Tank Pitch. Come on now, I know I did that sort of thing. How about you?

Shark Tank Tips

1. What makes a good business idea great? 



A good idea must meet numerous criteria.  I’ve listed some of those I’ve considered while participating in the Full Sail University program. 

Is there a need or pain that my business clearly identifies?  Yes there is.  Through promoting my CD/DVD, books, cabaret live performance, and workshops that target emerging talent I 1) entertain my audience, 2) provide them with a wide range of music and images through various genres that will expose and expand their musical horizons, 3) by coordinating live performance, CD/DVDs and books I provide emerging talent with highly effective ways of generating income at an affordable price that is in sync with current secondary education institutions.  Further, I improve the overall quality of the arts first regionally in Boston, and nationally. 

2. What do you think are the traits of a great entrepreneur?


A great entrepreneur recognizes opportunity in what first appear to be obstacles.  He/she adapts to changing environments and creates a business plan that allows for fluctuations in their environment.  I great entrepreneur is one who listens to the market and measures their products likelihood of success—in quantifiable terms—of success.  A good entrepreneur clearly understands notions of PEST and SWOT analysis and creates responses to these considerations.  A great entrepreneur respects and listens to their team, their consumers, and their investors.  They pay their bills and they throw in more opportunities to their investors.  They live by a code of integrity that is on the level of both personal and professional standards.




3. How do I know if there's a real need for my product or service?



Listen to the pulse of the market.  When someone writes or says something that resonates amongst the larger audience ask yourself, “What is their pain?  How can I help?  And how can I relieve that pain while making my project profitable so that obligations to investors will not only be met but will exceed.

4. What are the most important first steps a new entrepreneur should take?



Observe.  Listen.  Analyze what opportunities exist and then consider what you are good at and what sort of product that would be most likely to succeed in the market.  Selling snowshoes in FLA is probably not a real good idea. 

Once you have the product and the need—market demand—in alignment start building a business plan that clearly identifies the opportunity.  Then run the plan through any contacts you may have before pitching it to major investors.  Know the financials.  Know how much you need, how you are going to spend it, how much ROI you will realize and how much ROI your investors will realize. 

Know your audience.  I am pitching to investors, producers, and educational institutions at different points of my strategy.  I will ensure that each pitch is tailored according to circumstances.

Research my investors past behaviors.  Who do they give money to?  How much is typical?  Are they potential strategic partners?  I constantly ask myself questions such as these.

When you make the pitch answer the questions concisely.  Don’t drone on and on.  Don’t give them the whole book so to speak.  Make them want to know more.  Perhaps if you are not sure of an answer you might honestly admit that you have thought about the question but need more research time and ask if they would have any ideas.  This is not the greatest idea.  It shows you have not prepared properly.  But if you get in this jam above all:  Don’t make something up just to fill in the gap.  Chances are they will admire the fact that you have to say ‘I’m not say’ and they will appreciate the fact that you asked them for a bit of wisdom.  Never outshine the master.

5. How do you create a business plan that works?



Think it through before writing it down.  Once you got the basic concepts of the plan start filling in the standard parts that have been addressed in our professional experience and academic experience such as that offered at Full Sail University.  Watch for any trends in business plans standards.  Change is changeless.

Make sure the information that you provide is easily understood and concise.  Don’t give them the details so much as provide details that will leave them wanting more.  That’s for the second go around.  Use charts and diagrams and provide some background on you analysis and criteria. 

If you have aligned with an individual or entity with higher visibility and better reputation makes sure the investors are aware of it.

Watch you sales and related financial numbers.  Make sure they are realistic.  Showing a short time when profits may even be in the negative in regard to projections is better than creating an overtly optimistic future scenario.    Investors understand this and most will see that you’re plan reflects sound business acumen and common sense.

Make it look good but don’t get clever with the final document.  This sometimes reflects a sense that you are trying to get something past them by altering format.  They’ll figure that out and be even more suspicious.

Get the final plan reviewed by a professional who will objectively suggest strengths and weaknesses.

6. Where can I get help creating a business plan?

Obviously, we have had ample exposure through practical theory and utility through a common sense academic program.  It shouldn’t stop there.  There are any numbers of books on the subject that are affordable and provide great insights.  Small Business organizations often offer ‘coaches’ for this kind of thing.  Watch the shark tank show.  This is always an interesting experience.  Go to blogs on the subject.  Experiment a bit in the beginning.  Make it your own and then see what others are doing. 





7. How do you compete against the big guys? 



You compete against the big guys by first understanding that they are the big guys.  And so taking on the big guys really doesn’t work if for no other reason they have more resources.  But learn from the big guys.  Watch how they are adapting to fluctuations in their market and apply some of that wisdom.  I read Warner Brothers yearly financial statements and discovered that they—like many—are adjusting to shifts in downloadable music.  They report that they have also cut down and—in some cases—wrote off advance funding to artists.  They also are more careful and have developed a much more stringent criteria for signing artists.  It is interesting to note that hard copies are still being sold but falling quickly.  Additionally, the hand held devices is growing but hardly bulky enough to bolster sales throughout my campaign.  In some ways this is a wait and see situation that requires following the metrics.  This tells me much.  And so the numbers doesn’t overwhelm me.  I look at the strategies and apply them.

8. How do you build a great team? 



You build a team by first identifying your needs.  What are your strengths?  What can you do in those areas?  Identify your ‘weaknesses’ and look for team members that can enhance that particular area of your endeavor.  Check out business and personal attributes.  I don’t care how knowledgeable a potential is.  If you will not get along well or have alternative end goals in mind think carefully about this.  Perhaps that individual can be useful in a position that is unique to their abilities without necessarily impacting overall all business goals.  For instance, if someone has strong financial skills that coincide with your goals but varying notions of your goals this individual may be appropriate for an administrative or accounting position where they are responsible for specific tasks related to those particular needs.

9. What makes an investor put their money into a deal?



Vision tempered with common sense.  Experience.  Education.  Presentation.  Are you the sort of person that will meet their obligations and will it be a positive experience?  Having a well-tuned business plan goes a long way.  Investors want to work with new businesses that identify and minimize the risks.  This is particularly true for equity investors.

10. How do I find investors and business partners and what's most important in my presentation?

Research today’s investors through journals and trade sites.  Look for related blogs.  Read the financial papers.  Ask around and make sure you are ready with your elevator pitch.  Follow the latest developments in venture capitalism.  What are they investing in?  Is it similar to yours?  What is their success rate?  Also make sure that you understand what you bring to the table.  In my case, I bring $25,000 and my long-term experience in entertainment while keeping up with the industry through practical education.

Why should I give you the money? You have no proven track record. I can go out and find someone who has already done this and has proven that they can do it.

You should invest in me because I will work harder and smarter, because I know my audience through practical experience and metrics.  I’ll not only pay you back with good ROI but also provide you with greater opportunities to make money as my project grows.  I have a diversified line of products that work in an integral fashion meaning my chances of higher return increase exponentially.  In the case where one product slacks for reasons, I can hedge my financial situation through the other product lines.

How do I know you are not going to lose interest?

I’ve committed the last five years to this project.  I’ve retired from teaching so that I can turn this vision into reality.  Because I love the notion of doing business in the entertainment arts and look forward to sharing the benefit of my total experiences with others whether it is through recorded music, live performance, or education.

Projections indicate 2012 downloads at $8.5 billion.  Break that down to an average of $1 per download (single) and this suggests that approximately means 8.5 billion units are being distributed.  If I assume a very conservative number of the market share (.0015) suggests potential unit sales at 127,500 possible or potential conversions at .65 net minus fixed costs.  I onsider .15 represents the unit share of fixed costs and this leaves .50 per unit.  This realizes a potential $63,750 projected sales over three years. I then factor into this calculation that some sources are projecting $15 billion in sales by 2015.  Consider the shift towards streaming royalties that are significantly less than down loading and I still realize a significant cash flow and profit.  The exact amounts of monies earned from streaming are still unclear although present returns suggests that 15K units must be streamed before the artist reaches breakeven.  However, one must also consider the branding value in streaming that—properly handled—can increase the number of downloads.   While these numbers and statistics must allow for forecasts corrections, the overall future for financial gain even in a troubled economic market means exponential growth and future capitol for expanding my projects.  This should keep my interest, don’t you think?

What are you going to do when a competitor sees how successful you are and starts doing exactly the same thing?

One specific method I will use is by first making sure all my legal and contractual areas are in order.  I will also encourage potential competitors to form strategic alliances.  Keep your friends close.  And keep your enemies closer.  I will constantly monitor my product line and identify areas where they can be improved and made unique within the market.  I have put my own money to the tune of $25,000 into this effort.  I am in a sense my own closest investor.  Finally, I want to create something that will be passed down to others, to make a genuine difference to the global community.

Noam Chomsky on Education

Source:  http://www.youtube.com/watch?v=VZbM_MIz4RM

https://ondemand.azpm.org/videoshorts/watch/2012/2/10/1154-an-evening-with-noam-chomsky-education-for-whom-and-for-what/

Noam Chomsky On Education

I have long been a reader of Noam Chomsky.  My introduction to him started back in the Stone Age days of my work on my literature and philosophy while attending CSU Stanislaus University in California.  I was fortunate enough to have several forward thinking professors who were committed to encouraging their students to think outside the box.  My first exposure was the Noam Chomsky famous for his revolutionary linguistic theories.  I will have to admit that I was unable to fully understand the field of linguistics.  That being said, it was an extraordinary period of personal, academic, and professional growth that has continued into the present.   Later I started to read and listen to Mr. Chomsky in regards to political and cultural situations.  I rapidly realized that in order to be an informed artist and creator of relevant material that such considerations were not only preferable but also mandatory.  No man is an island, as the saying goes. 

And here I am some 20 years later ready to receive my Master’s in Business Entertainment in the fast passing of one month.  Finally, I have the tools to make my vision into a reality.  I have sharpened the saw to go Zen for a moment.  Part of my vision includes a series of workshops for emerging talent that will assist them in some small way the same way Full Sail University has generously assisted me.  I have learned through past experience and education that to be creative is simply not enough to cull a thoughtful, intelligent, and loyal audience.  Business is part of that, Marketing is part of that, and technology is a part of that.  The eternal trinity of life experience moves on.

Over the years, I have paid much more attention to the ways in which corporations—small, medium, and large—in all periods of the business life cycle operate in terms of function and branding.  I have come to understand how important it is to learn through observation and—like a good science experiment—observe the outcome without prejudice and judgment.

At the same time, I’ve come to realize that I must dance to my own music if I am to be successful.  I do not define success entirely by bottom line profit although it is certainly a major concern.  After all, if I am to carry my project on to its logical conclusion within a capitalist system, this is indeed necessary.  Note I say necessary and not necessary evil.

In this speech, Chomsky points out that the best and most solid education does not teach students how to parrot answers to typical questions.  Rather the best education comes through by constantly questioning the answers forming new questions.  Chomsky amply demonstrates through humor, facts, and observation that the present notion of teaching to a test doesn’t entirely work.  He further shows that the notion of too much genuine education was, is, and will be a serious danger to those in power.  In essence, they think  ‘let’s teach them enough so that they can produce what we need and not so much that they are a threat to our power base.’

I thought of this in regard to future competition.  Do I really want to increase the talents of emerging artists to a point where they can create potential market threats?  Do I want to create an effort that uses tried and true ‘tricks’ to lure customers in focusing on form rather than content?  What am I as an entrepreneur putting at stake and what sort of legacy will I leave once I’ve reached initiation of my exit plan? 

There is much in Chomsky’s observations that I believe to be very relevant to the new business owner.  Things can change and that skepticism that seems to separate profit from self-created purpose can balance out so long as we as entrepreneurs carefully consider this question.

So, if you see yourself falling into the world of things as they are and the typical pacifism that plagues such notions, think to yourself, what am I going to leave behind for others, will it grow after me, and will it grow in a way that is consistent with my vision. 

No, it is not easy to follow the path less taken.  But it’s surely going to be the more interesting journey.

Special thanks to Professor Noam Chomsky for providing me with the opportunity to think out my vision and all its implications.

Zappos' Corporate Culture. Good Advice to say the least.`

I am watching with great interest this week’s video about Zappos.  In part I admire the individual and corporate mindset that I am witnessing.  But here is the really good part of all this.  I worked for many companies such as this.   In my ‘younger’ days I most contracted myself out to various companies in any number of genres.  I can truthfully say that I did and do a little bit of everything throughout my life. 

I’ve worked for some very tough companies.  But here is the thing.  I’ve worked for a whole lot more great companies than weak companies.  I say weak only in the sense that the environment did not work for me.  There is no subjective evaluation attached to this.  It was simply not a very good fit for all concerned.

But enough of that.  The bottom line is that Zappos CEO and owner is not near as unique as one might think.  We simply don’t hear about some companies that share the same level of awareness as Zappos and those like them. 

And now as I watch this video and find myself in the labyrinthine world of business planning, dealing with numbers, deadlines, and possible threats . . .. Well, it sort of refreshing to get reminded of what it is that started this incredible journey into the world of entertainment.  I want my audience, my customers, my collaborators, my employees, and my community to benefit from my presence.   When I grow in any number of ways—and not just financially—I want all to grow, to feel a bit better about themselves.

This particular has turned this into an incredible success story in more ways than mere dollar signs, hasn’t he?

In a sense it is all very simple.  Create a service and/or product that identify a customer’s pain, assist in healing that pain, make them feel good about the transaction.  And as important help the employees who help heal that pain feel like they’ve made a genuine contribution and again not in mere dollar signs.

Speaking for my own vision.  I am not targeting my art to main stream traffic.  This is not because I judge mainstream as something other than art.  It is because of who I am as an artist and what brings me joy.  It’s about what brings my audience joy.  It’s about making someone excited about sharing his or her experience.

And when it does come time to form a team.  I have made a quiet promise to myself that I will not micro-manage, that I will listen to my associates, and that we will both learn from our experiences, we celebrate what seem to be failures and transform them into opportunities.  In other words?  Yes, I want to make money and yes I want a loyal fan base.  But as important, I want to play, write, and sing music and create art that brings me a sense that I’ve made a genuine contribution to others along the way.  I believe this CEO and I have a great deal in common except maybe my credit card rating.  But that will happen in good time.

And so, this sort of viewing tells me that my vision is not near as naïve and unreachable as some have said to me.  Now I know it’s not about the naiveté of my vision but the myopic thinking that ties others to the ground.  I’d work for this guy in a heartbeat if he was in the business of music and I wish him success.

Want to be Great? Take lessons in the simple. Listen, Learn, Act. And at the end of the day be grateful.

Want to be Great?  Take lessons in the simple.  Listen, Learn, Act.  And at the end of the day be grateful.

A long time back I was living in central California.  I was substitute teaching at the time.  While I enjoyed the work to degrees it was not enough to meet my financial obligations.  I had a roof over my head, a limited resource to health care, and food on the table.  But it was not enough to help me move forward on my visions of being a full-time musician.  So I signed up with a local temporary business.  In fact, I signed up with many temporary agencies.  My thinking was to use my administrative skills to improve my situation.  What I discovered is that the economy of California was in such a mess that most firms were choosing to adjust their needs, exploit their employees, and hire cheap labor.  This particular part of California had a large number of ‘unregistered’ individuals who were willing to work for a substantially meager salary because of their ‘situation.’   I finally understood that my overall objective would never be met unless I changed my strategy.

So I took manual labor jobs with a company that ‘specialized’ in unskilled labor.  They paid by the day and asked very few questions.  Truth be told, I was never very good with my hands.  When I took ‘shop’ in junior high school I almost failed.  Every ‘thing,’ every ‘project’ I took on seemed to turn into an uneven ashtray or wood for a warm fire for another day.  But I figured I had good health and a willing spirit that would suffice.

I got a long-time temporary position with a construction firm that was building factories and warehouses outside of town.  I supplemented my bloodless salary by charging others for transportation back and forth to the job site.  My field site supervisor took a liking to me.  What I lacked in skill, I made up for in enthusiasm and commitment I suppose.  So the assignment was coming to an end and the gentleman was assigning me any number of odd tasks to keep me coming back. 

One day the gentleman showed up with a new push broom.  He took to the road that was used by trucks delivering dirt, concrete, and various sorts of cargo.  The road was in poor condition covered with dirt, scraps of wood, rusted nails, shards of glass, and numerous cigarette butts.  My task?  Sweep the road and make it look respectable before the keys to the buildings were handed over to their new owner.

So I went about my business.  Here’s where it gets interesting.  There was quite a lot of road to cover.  I divided the area into sections.  Each day I would set a goal of completing one section.  Great plan but it wasn’t really working very well.  I was falling behind my daily goals. 

One day my boss brought over a cup of coffee and a 7-11 Big Gulp.  He knew these were some of my more minor addictions.  I apologized to him because I felt I was not justifying his trust in me.  He asked me to show how I was sweeping the road each day.  I did so.  I moved the broom horizontal to the road, moved a bit to the left and right and did the same.  When I reached the other side of the road I repeated the process in reverse.  He asked me for the broom and went to the road.  He began sweeping.  But he did not move horizontal to the road.  Rather he worked at 45-degree angles.  He covered the same amount of area I had covered in half the time.  What was the lesson?  By moving at angles more area was covered with each sweep and with better results, less rubble left behind.   He smiled at me and told me I was doing a great job and sent me out to get lunch knowing full well I was getting a bit bored with the task.  A week later the road was finished, I was way ahead of schedule, and—I thought and feared—the assignment had come to an end.

At the end of the week he led me to the field office.  It was a mass of boxes, half installed computers and drawings and schematics.  I was in the office about an hour or so and was waiting for the bad news.  So I started putting things in order.  I managed to show some sign of office space.  He walked in and was surprised at best.  He asked me how I did all the work without actually knowing what was there?  I explained to him that it was a matter of thinking in terms of tasks associated with running an office and filter through all items, create stacks, return to the stacks and breaking them down by their function a bit more.  Then rearrange the various storage areas so that they are easily accessible rather than a source of endless obstacles.

I showed him the piles.  He grabbled some paper and joined me asking questions along the way.  By the end of the day the office was in considerably better order.  He actually discovered some schematics that he thought were permanently lost.  Any number of receipts and invoices that his accountant had been hounding him to find appeared.

The point is that I learned a valuable lesson in what some would consider the most menial of tasks, sweeping a road.  And he had learned by a little bit of time and patience that ordering an office took patience, creativity, and time.    We had both learned valuable lessons.

Never, Never, Never assume there isn’t anything to be learned in the simplest of tasks.  There is always a lesson to be learned and—more importantly—to be shared.  We work from our strengths yes.  But we also examine our weakness and seek out the advise of those who would turn those weaknesses into strengths.