We recently caught up with Jim Koch, founder and CEO of Sam Adams Beer. Jim spoke at the US Chamber & Latino Coalition’s Small Business Summit in D.C., and aside from his story of persistence, I knew I liked this guy when he busted out a beer and downed it during his speech.
As it turns out, Jim left for college believing that for the first time in 150 years he would be the first of the Koch’s to turn his back on beer. After college and graduate school Jim began a promising career in management consulting. Even though he followed that path for several years, he always kept an eye on the beer business.
In 1984, he started brewing an old family beer recipe in his kitchen. Before long he was packing samples in a suitcase and going from bar to bar, trying to get people to taste his lager.
Only one year later, the beer was re-introduced as Samuel Adams Boston Lager, at the re-creation of the first battle of the American Revolution on Patriot’s Day. Three months later, it was voted “Best Beer in America” at the Great American Beer Festival, in which 93 national and regional beers competed. The publicity that followed helped the Boston Beer Company’s sales grow to 7,393,000 liters (63,000 barrels) by 1989. The beer was first put on tap at Doyle’s Cafe in Jamaica Plain.
Today, the idea born in that kitchen has approximately 840 employees in its Boston, Cincinnati and Breinigsville, PA breweries combined. It is also the largest craft brewery in the U.S.A.
The lesson? If you’re going to follow your passion go all out. Think big. And when you get a NO, believe a yes is just around the corner.
A new study finds evidence to support the idea of ‘less is more’. Here’s why scaling your company with fewer clients may just contribute to your company’s long-term health.
Helena Yli-Renko, an assistant professor of clinical entrepreneurship at USC’s Marshall School of Business, was working on her Ph.D in Finland in the late 1990′s when she began to observe a novel trend among Finnish telecommunications start-ups: rather than seeking out multiple customers to grow their companies, the companies all seemed to be clamoring to strike deals with Nokia, an industry leader. At the same time, the young companies were apprehensive about their growth strategies: “They were worried about putting all their eggs in one basket,” she says.
And rightfully so. Why put it all on the line for one big client—no matter how big they are?
Over the next six years, Yli-Renko set out to determine if those fears were justified. With Dr. Ramkumar Janakiraman, a management professor at Texas A&M, Yli-Renko surveyed 180 young firms operating in business-to-business, and asked: How does dependence on a key customer impact the firm’s customer growth?
Defying conventional wisdom, the researchers found that young companies that rely on one or two big clients were more successful than companies that didn’t. In her words, “What we found was that key customer dependence actually had a positive effect on the firm’s customer growth.”
Following are the factors that help young companies scale with just a couple of clients—and how your firm can leverage them for growth.
Who your clients are matters. If your one key customer is someone like Apple or GM—industry leaders that are well-recognized and well-respected—you’re going to get positive reputation effects from that relationship.
“That instantly creates legitimacy for that young firm,” says Yli-Renko. “Other firms may says, ‘If GM uses these guys, we can too.’”
Good clients act as great referrers—and your evangelists. By focusing on a single client relationship, Devesh Dwivedi, founder of a Web development company in New Jersey, has grown his business.
“They would hire us for every project they had, but the reason I use the word “evangelist” is because they personally introduced me to each one of their business contacts,” says Dwivedi.
The client also became a mentor to Dwivedi, helping him strategize on new product offerings, and how to best position his company.
Yli-Renko says this type of ‘evangelism’ was pervasive among her study. Going to an industry trade show, for example, with a client like GM will open doors for future connections. ”It’s about building personal networks,” she says.
Find the perfect balance. Denise O’Berry, a small business consultant based in Tampa, Florida, says the company should look at their bottom line to determine if they’re too dependent: If more than 50 percent of the company’s revenue comes from one client, it’s time to move on to new prospects.
“The sexiness of the steady client has quite an allure to it, especially for start-up companies,” she says. “But they need to divide their time between making clients happy, and not totally stop trying to do customer acquisition, mainly because of the risks. They need to have a process in place for business development in addition to satisfying their current clients.”
Know when to expand. Eventually, even if your company does rely on one or two big clients, you’ll want to expand.
According to Russ Lombardo, president of Cary, North Carolina-based PEAK Sales consulting, “When it gets to the point where a customer says ‘I want a demo,’ and you have to say, ‘Sorry, we’ll have to schedule it two weeks from now.’ That’s when you know you need more resources—or fewer leads.”
Yli-Renko concluded; ”The basic idea in the research is that if you can sell as much to one large customer as you can sell to 10 smaller customers, you’re going to be more efficient,” she says. “You’re also going to free up marketing dollars and management time that will then enable you to pursue other customers and grow your firm.”
From a previous post by Eric Markowitz, via Inc, who reports on start-ups, entrepreneurs, and issues that affect small businesses. Previously, he worked at Vanity Fair. He lives in New York City. @EricMarkowitz
If you’ve ever watched ABC’s “Shark Tank” you’d agree that the true value for a business owner to take on investors isn’t really about the money. Let’s face it, in a financial pinch, most of us could probably resort successfully to the famous three Fs of finance: Family, Friends, and Fools.
The elements that make investors worthwhile are their contacts, their industry experience, and more importantly, their business knowledge. Here’s how Mark Cuban, a self-made billionaire and regularly an investor on Shark Tank, puts it: “entrepreneurs don’t fail for lack of resources, it’s their lack of brains.” That’s not to say we entrepreneurs are somehow less smart or unimaginative, but it does reinforce the idea that we don’t know it all and, like professional athletes, we too must to go back to basics regularly to acquire new insights and new knowledge.
Just this morning, GE released findings from its annual survey on innovation; and business education topped the list of priorities among entrepreneurs.
To that end, I recently came across the Goldman Sachs 10,000 Small Businesses Initiative, and not only is the program measuring its success by the companies it grows, plus business genius Warren Buffett is involved — best of all — it’s a free opportunity. Of course you must meet certain criteria, but it’s simple.
Here’s what I have on the program: The Goldman Sachs 10,000 Small Businesses is a $500 million investment to help small businesses create jobs and economic opportunity by providing them with greater access to business education, financial capital, and business support services. The program is based on the broadly held view of leading experts that greater access to this combination of education, capital and support services best addresses barriers to growth.
If you’re in Southern California, the criteria to be eligible is:
- Applicant must be an owner or co-owner of a business
- Business in operation for at least two years
- Business revenues between $150,000 and $4.0 million in the most recent fiscal year
- At least 4 employees (including the owner)
Again, it’s a free program, please take advantage. Here’s where to sign up:
If this program isn’t for you, make somebody’s year and share it with them.
From a post by Yanik Silver of Young Entrepreneur Council, published September 27, 2012
5 ways to turn yourself into an authentic connector who is valuable to anyone’s network:
1. Don’t hog the spotlight. Connectors understand the necessity of creating value for others. If you want to be in the middle of the action, you must seek ways to enhance the lives of those surrounding you. The best connectors I know are extremely generous with introductions where they make sense. One of my favorite questions is, “What are you most excited about right now?” From that answer, I know who I can hook that person up with.
2. Be valuable. People value connectors for what they provide in terms of interaction and resource. In some cases, it’s because they create a space to bring together an elite group. And the person who is that “hub” is remembered when business deals are coming together. After all, how did these people get to the table in the first place? I’m always getting notes back or hearing from attendees of my seminar about deals they’ve created. Sometimes, they give me credit when I didn’t directly introduce them.
3. Be calendar-worthy. Everyone already has too much on their plates and their calendars, so why should they attend or be part of something you create? Anyone can start meetup groups, dinner meetings, or curated events, but it takes some creative energy to make the event worth attending. Once you have people’s attention, you can stop networking and truly start connecting.
4. Let loose. This connectivity needs to be genuine and fun—I may or may not have been known to don a green Speedo or dress up as a circus ringleader on occasion. However, that might not work for everyone. The appeal is in the authenticity of the fun, so it’s important to find your natural personality and allow it come through in your dealings.
5. Play mediator. I work with many entrepreneurs with type A personalities, so there’s inevitably some jockeying for top positions. When facilitating at a session, there’s a fine line between guaranteeing that everyone offers input and knowing when someone needs to be dialed down. If a situation requires you to step up, it’s best to start with humor and work toward a more direct approach when “calling someone out.” If one of the members takes too long with the microphone, I might hit a gong or shoot the person with a Nerf gun. He gets the point, and the crowd gets a laugh.
For a list of networking events, check out our calendar at: www.conex360.com
One late evening at my previous job, I received a call from the U.S. State Department saying they’d like our organization (the Latin Business Association) to share our insights into the U.S. Hispanic business market at the U.N. in New York City. Yes, I too thought it was a prank call. It wasn’t! And so I lost sleep for weeks thinking about what I’d say to Secretary Collin Powell who’d be attending the event.
I still think of those 15 minutes of fame at the U.N. as a highlight in my life. But it was only a few years later that I found myself hiking the Inca Trails, minutes from getting my first glimpse of Machu Picchu – perhaps lack of oxygen or lack of sleep – but I had a profound and nagging question in my head: when I’m gone, what will I be remembered for? Continue reading
The U.S. Small Business Administration (SBA) will host a series of four web chats during the month of October – National Women’s Small Business Month – for women considering launching their own business.
Each week, the SBA web chats will feature prominent subject experts who will guide participants on best practices for putting together business plans, navigating challenges of entering competitive markets and establishing the foundation for a successful, profitable and long-lasting company.
On Oct. 4, at 3PM participants can join “Starting & Growing Your Business” with Erin Andrew, of SBA’s Office of Entrepreneurial Development. Participants can play an observer’s role from the comfort of their computers, and also post questions beforehand.
With the increasing access to new technologies, resources, and ideas, business opportunities are flourishing for Latino entrepreneurs now more than ever.
As part of the Business Track at this year’s #LATISM Conference in Houston, I have the distinct honor of sharing tactics, case studies, marketplace best practices and culturally relevant approaches for supporting social enterprises — the do-good-to-do-well business owners.
Having spent many years developing entrepreneurial programs for a business lobbying organization, and now as CEO of CONEXION, which virtually manages Hispanic Chambers of Commerce throughout California, New York, and D.C., I am eager to share and exchange knowledge that moves our community forward.
Super excited and ready to pow-wow in Houston with my LATISM family.
For details on the conference or to register, visit: http://conference.latism.org/.
This post is about getting you involved with the Good Food Day LA project, a citywide event and day of service dedicated to learning about, celebrating and volunteering to strengthen the food system for all Angelenos. The event simultaneously brings together nearly forty sites and thousands of volunteers and participants who will be engaged in activities throughout Los Angeles – and you can learn about them and sign-up to participate here.
Good Food Day LA culminates in the afternoon at the Metabolic Studio, near Chinatown and will feature a resource fair, food trucks, chef demonstrations, and a cabbage cooking contest called “From Kim Chee to Cole Slaw” which will be judged by Pulitzer Prize-winning food critic Jonathan Gold and several renowned chefs. It will be followed by a panel discussion at 1pm focused on the fight for food workers’ rights and Fair Food across the globe.
For me, this is an opportunity to empower our community to take charge of our food supply. When we become the food producers, not just the consumers, we indirectly promote healthier lifestyles that prevent debilitating diseases, while saving money and the planet by getting our produce from our own backyards. Plus, I’m convinced there is nothing fresher, tastier, or more gratifying than growing our own food.
The infographic below is a baseline assessment of our current relationship with food:
Thanks for reading.
Cheers to good health!
It’s great that many of our favorite corporate brands (the smart ones, anyway) and more recently the Democratic and Republican parties are reaching out to the burgeoning Latino market. However, I’m here to remind the minds behind these initiatives that if your strategy consists of translating your fancy brochures or your shiny new websites into Spanish, and that includes dubbing of videos — congratulations! you now have a good chance at reaching my mom, my tia, and their “networks.”
Be warned, that approach neglects more than half of our community. You know, the one that went to school in this country and whose kids now attend those same schools – the bicultural Latino. Here’s the snapshot: Continue reading