BroadPeak Executive Forum

Chicago Urban League ProjectNEXT - The Next Big Thing for Minority Entrepreneurs

Earlier this week, in my capacity as Vice President of Marketing for BroadPeak Collaborative, I attended the kick-off luncheon for the Chicago Urban League's forward- thinking new project called ProjectNEXT. The last time I felt that much energy and anticipation in a room was when I kicked off Money Smart Week at the Federal Reserve Bank of Chicago - and it felt great!

Under the high-energy and progressive leadership of CEO Cheryle Jackson, the Chicago Urban League is shifting from a social services provider model to an economic development model which, I think, is a stroke of genius on the part of Ms. Jackson. Project NEXT is a unique program in which minority entrepreneurs are mentored and given resources that will jump-start the growth of their companies. The program is highly competitive - 150 entrepreneurs applied for 16 spots in the program. And the program is only in its first year. I wonder how many business owners will apply next year or the year after? Seems to me that there is a huge demand for this program and I would guess that applications will increase exponentially over time.

A few professional service firms, including BroadPeak, have been selected by the Urban League to offer accounting, finance, analytics, management training/coaching, and other key services to the selected business owners. We are extremely honored and excited to have been chosen to participate in this program and we anticipate that the success in Chicago will lead to a nation-wide rollout.

Back to the luncheon.  I got to sit next to John Rogers, CEO of Ariel Mutual Funds and a member of the Board of the Chicago Urban League, a man I have admired for years. In addition to founding a hugely successful business John created the Ariel Community Academy in Chicago which is teaching kids about investing, thus developing hundreds of young minds who think that financial smarts are cool. (In contrast to popular singers, actors, and rappers whose conspicuous consumption can be enticing to youngsters.) Needless to say I was excited to get to talk to Mr. Rogers, in fact I was a little star struck. He didn't disappoint - he was modest, intelligent, and thoughtful in his remarks and he is clearly passionate about his work. It's always exciting to meet someone you idolize and, somehow, I managed not to spill food on myself or say anything stupid during lunch.

The keynote speaker for the event was Jim Reynolds, founder and CEO of Loop Capital, a Chicago-based investment bank. Mr. Reynolds was a dynamic, funny, and interesting speaker who managed to share some valuable advice about how to start a successful company. The difference, he said, between entrepreneurs who want to be successful (who doesn't?) and those who really "get it" is twofold: vision and focus. Vision and focus are the essential ingredients to success when starting your own business.

Mr. Reynolds discussed the fact that successful entrepreneurs, no matter what they are doing, are always promoting their businesses. His point was that as a successful entrepreneur you should always be thinking about your business and selling yourself. If you meet someone new, join a club, or speak at an event, you should always be ready to talk about your business, sell a product, or promote yourself, if only by behaving with class and dignity.

I learned a lot from Mr. Reynolds comments at lunch but it also occurred to me that as he described what it takes to succeed in business he was also describing Cheryle Jackson. Ms. Jackson has been at the helm of the Chicago Urban League for only a year but in that short time she has completely reshaped the vision of the organization, energized a talented staff, and has maintained an intense focus on the new mission that she set. She is a successful entrepreneur within an established organization. Like I said at the start of this post, it has been a long time since I have felt that much energy in a room and since I have been that impressed with a program.

I am thrilled that BroadPeak is part of ProjectNEXT but I am also excited that a project like NEXT has been born. It's rare that a not-for-profit can attract a leader who really understands how to create lasting and meaningful changes in the community. Too often organizations take the easy and non-controversial path of offering bland and impactless programs that don't offend, don't take risks, and don't have an impact.

Ms. Jackson and her team have put their reputations on the line with Project NEXT - if it were to fail then the naysayers in the world would be happy to armchair quarterback her mistakes and to say things like, "We never should have strayed from our original mission". ProjectNEXT won't fail, of that I am sure, but my point is that it takes a lot of guts to change the direction of an organization and to create programs with metrics and deliverables and the possibility of truly creating positive change in the world.

If you haven't heard of ProjectNEXT, the Chicago Urban League, or Cheryle Jackson click here to check out the Urban League website.

Do You Want to Start Your Own Company?

For Most, It's Just a Dream: Being Your Own Boss

Survey suggests that most executives wouldn't make the jump, even if they were financially able.

Stephen Taub, CFO.com

September 19, 2007

Ever fantasized about telling an overbearing boss to take a hike, and starting your own business? According to a new survey, most executives concede that when push comes to shove, daydreaming about such a life-changing decision is likely to remain just that.

Nearly two-thirds (65 percent) of respondents to the nationwide poll, developed by Robert Half Management Resources, said they felt the average executive would not choose to be self-employed if he or she had the necessary startup capital. Indeed, the survey suggested that just 32 percent of executives would actually choose to go out on their own if they could afford such a move.

In a similar Robert Half survey 10 years ago, a slightly larger group of senior managers — 38 percent — felt that executives would turn to self-employment if able.

The latest survey was based on interviews with 150 senior executives, including those from finance, human resources, and marketing departments at the nation's 1,000 largest companies. Robert Half Management Resources is a provider of senior-level accounting and finance professionals on a project and interim basis.

"Some executives may see more opportunity — and security — in their corporate roles than in venturing out on their own," said Paul McDonald, executive director of Robert Half Management Resources. "The failure of a sizable number of startups earlier in the decade left many senior managers wary of the risks associated with self-employment."

McDonald pointed out that for professionals with an independent spirit, "the challenge and flexibility of entrepreneurship can outweigh the uncertainty, but it takes discipline and a commitment to being both a visionary and a pragmatist."

On the other hand, he said, going the consulting route is much less risky.

If you are considering starting your own business call Tom Hrinowich at BroadPeak to discuss having BroadPeak help you analyze your options and create a business plan.

Employers Hit for Misclassifying Workers

House members hear complaints about workers being misclassified as independent contractors, enabling some businesses to inappropriately scrimp on taxes.

Sarah Johnson, CFO.com

May 09, 2007

A growing number of larger companies are incorrectly calling some of their employees "independent contractors" and saving as much as 30 percent in payroll costs by doing so, according to employee advocates testifying at a House Ways and Means Committee hearing on Tuesday.

Misclassifying some of the more than 10 million independent contractors in the U.S. in this way leaves small businesses that follow the rules at a competitive disadvantage, the advocates said. It also allows companies that purposely — or mistakenly — fail to follow the rules to take advantage of low-level workers unaware of the labor-law protections that they're entitles to.

While the issue has garnered lawmakers' attention, some House members said they're unsure how to penalize companies that intentionally misclassify workers without harming businesses that are simply confused about the current rules. Much of the confusion stems from the abundance of differing rules, which vary widely by state and among federal agencies.

More and more companies are apparently finding that tapping into a person's expertise temporarily or on a contract basis is useful. The number of independent contractors in the U.S. workforce grew from 6.7 percent in 1995 to 7.4 percent of the workforce in 2005, according to the Government Accountability Office.

Read the entire article at CFO.com

An Entrepreneurial Success Story – Sambazon

The other day, I read an article in the Wall Street Journal about Sambazon.  I thought that the tenacious Black brothers could teach all entrepreneurs something about tenacity and about understanding how to create a market for products.  To read the entire WSJ article about the Black’s click on this link.

Background

Brothers Ryan and Jeremy Black were on a surfing trip to Brazil in 1999 when they ran across the acai berries.  Ryan and Jeremy noticed that locals downed bowls of frozen purple mush made from berries that grew atop palm trees that were called, “the trees of life”.  The locals believe that these berries possess incredible health benefits for humans.

Ryan Black sensed açaí would appeal to mainstream U.S. consumers craving healthier fare. After raising $100,000 from friends and family, he and his brother began setting up an infrastructure in Brazil to harvest açaí organically and do it in a way that protected the rain forest and promoted fair trade. The trouble was, almost no one in the U.S. knew what açaí was -- or even how to pronounce it, for that matter. So how could they get their story out with no real marketing budget?

The answer was, essentially, to be traveling professors/evangelists for the obscure fruit. They decided to personally teach the nation what açaí was all about, by visiting stores and giving the stuff away.

From the beginning, the Black brothers hit music and environmental festivals and marathons, setting up booths and building a grass-roots following. They canvassed smoothie vendors, their first customer base, blending açaí into drinks, leaving literature behind and hawking their broader mission.

Sambazon, now has 100 employees. The San Clemente, Calif., company's sales totaled about $12 million in 2006, and the Blacks this year expect sales to increase by 50%, and to turn a profit. Their products are distributed at such stores as Whole Foods, Wild Oats and Jamba Juice, as well as many conventional grocery chains, while Sambazon açaí is found in hundreds of other companies' products, including those of Stonyfield Farm and Häagen-Dazs.

Even as Sambazon segued into mainstream retail outlets, even as it received some $9 million in outside financing, it pressed on with its educate-the-customer-by-giving-it-away approach. Sambazon spent $500,000 last year on store demos, doing 50 a week. Top retail executives took note. "Typically, smaller companies don't have payroll to compete with bigger players who can kick in money for advertising," says Chris Jacoby, a category manager for Albertsons grocery stores. "But Sambazon has been first-class in terms of setting up demos. I run into their reps in our stores more than any other company." Adds Whole Foods Market Inc. president Walter Robb: "Guys like this, you keep an eye on."

Lessons:

What can we learn from Sambazon’s success?

1. Entrepreneurs must be passionate about their products.

2. Entrepreneurs must sell their products in terms of benefit to the consumer.

3. Hang in there. Entrepreneurs must be tenacious in the face of obstacles.

4. Be creative in your marketing, communications, and PR efforts.

5. Spend your marketing, communications, and PR resources wisely, strategically, and to achieve high impact.

I think that lessons #4 and #5 are two keys to success.  They Black brothers have taken a thought leadership role with regard to their product. They educate rather than create glossy and expensive ad campaigns.  This differs from a large company like (for example) Coca Cola which, if it launched the sale of acai berries in the U.S. has the resources to kick off the campaign with a multi million dollar ad campaign in order to raise awareness among the public.  But for a small company like Sambazon creating a grassroots knowledge of product benefits by marketing the product to the right audience is the smart way to spend their marketing dollars.  And, as we can see it has worked. 

I found the article about Sambazon to be both motivational and chock full of great ideas for entrepreneurs.  If you are an entrepreneur and you would like some help creating a roadmap for your organization, give BroadPeak a call. We can help you think through all aspects of your business so that you and your product are poised for great success.

Eight Tips For Creating Thoughtful Web Content That Reaches Buyers Directly

I started reading a terrific blog the other day and I thought I would share one of the posts.  The blog is called Web Ink Now and it is written by David Meerman Scott, author of New Rules of Marketing and PR.  You can read the post below or you can click over to his blog...he has a lot of great information on marketing, public relations, and reaching customers via the web.  Check it out.

Eight Quick Tips to create thoughtful Web content to reach buyers directly

As many smart marketers know, a well crafted white paper, e-book, or Webinar contributes to an organization's positive reputation by setting it apart in the marketplace of ideas. This form of thought leadership based Web content brands a company, a consultant, or a nonprofit as an expert and as a trusted resource.

While each media for getting your thought leadership content into the marketplace of ideas is different, they share some common considerations:

Quick Tip #1: Most importantly—Do not write about your company and your products. Thought leadership content is designed to solve buyer problems or answer questions and to show that you and your organization are smart and worth doing business with. This type of marketing and PR technique is not a brochure or sales pitch. Thought leadership is not advertising.

Quick Tip #2: Define your organizational goals first. Do you want to drive revenue? Get people to donate money to your organization? Encourage people to buy something?

Quick Tip # 3: Based on your goals, decide if you want to provide the content for free and without any registration (you will get many more people to use the content, but you won’t know who they are) or if you want to include some kind of registration mechanism (much lower response rates, but you build a contact list).

Quick Tip #4: Think like a publisher by understanding your audience. Consider what market problems your buyer personas are faced with and develop topics that appeal to them.

Quick Tip #5: Write for your audience. Use examples and stories. Make it interesting.

Quick Tip #6: Choose a great title that grabs attention. Use subtitles to describe what the content will deliver.

Quick Tip #7: Promote the effort like crazy. Offer the content on your site with easy-to-find links. Add a link to employees’ e-mail signatures, and get partners to offer links as well.

Quick Tip #8: To drive the viral marketing effects, alert appropriate reporters, bloggers, and analysts that the content is available and send them a download link.

As many smart marketers know, a well crafted white paper, e-book, or Webinar contributes to an organization's positive reputation by setting it apart in the marketplace of ideas. This form of thought leadership based Web content brands a company, a consultant, or a nonprofit as an expert and as a trusted resource.

While each media for getting your thought leadership content into the marketplace of ideas is different, they share some common considerations:

Quick Tip #1: Most importantly—Do not write about your company and your products. Thought leadership content is designed to solve buyer problems or answer questions and to show that you and your organization are smart and worth doing business with. This type of marketing and PR technique is not a brochure or sales pitch. Thought leadership is not advertising.

Quick Tip #2: Define your organizational goals first. Do you want to drive revenue? Get people to donate money to your organization? Encourage people to buy something?

Quick Tip # 3: Based on your goals, decide if you want to provide the content for free and without any registration (you will get many more people to use the content, but you won’t know who they are) or if you want to include some kind of registration mechanism (much lower response rates, but you build a contact list).

Quick Tip #4: Think like a publisher by understanding your audience. Consider what market problems your buyer personas are faced with and develop topics that appeal to them.

Quick Tip #5: Write for your audience. Use examples and stories. Make it interesting.

Quick Tip #6: Choose a great title that grabs attention. Use subtitles to describe what the content will deliver.

Quick Tip #7: Promote the effort like crazy. Offer the content on your site with easy-to-find links. Add a link to employees’ e-mail signatures, and get partners to offer links as well.

Quick Tip #8: To drive the viral marketing effects, alert appropriate reporters, bloggers, and analysts that the content is available and send them a download link.

What Is Your Value Proposition?

Yesterday I was fortunate to be able to participate in a teleseminar hosted by Jill Konrath, author of the blog Selling to Big Companies. Jill invited me to attend the teleseminar as her guest...thank you Jill!

The first thing you need to understand is that Jill is a super-saleswoman so she really knows her stuff. The second is that selling is exactly what job seekers should be doing - selling themselves. So, this seminar was a wonderful source of information for sales people, marketing executives, and job seekers alike.

The key take-away from the seminar is simple: business today is competitive and fast paced so if you want the opportunity to sell your product you need to lead with your value proposition.

There was a time when the sales process included a longer runway during which a salesperson had the opportunity to expound upon the pros of his/her company, product, or process before going on to describe to his/her potential client how the product would directly benefit his/her organization. Those days are long gone.

Jill explained that today's executives are thinking about the bottom line and achieving goals at all times. So, if you, as salesperson or job seeker, want to get your foot in the door you have to lead with, "My product will increase your revenue by 30%" or "This product will reduce your costs by 20%"

The same thing applies to job seekers. Your "elevator speech" should start with, "I can deliver results of ______" rather than focusing on your years of experience, elite education, or depth of knowledge. Once you pique a manager's interest with your value proposition you will have the opportunity to present your whole pitch.

These days, "what can you do for me" is the first question on every executives' mind. If you can answer that question up front, you will have the opportunity to present a more complete picture of your background later.

What is the value proposition that you offer to a potential employer?

I would encourage every job seeker to read Jill Konrath's blog. Her blog is focused on sales but she offers is useful for job seekers who wish to land the jobs of their dreams in a highly competitive environment.

Why Happy Workers Are The Best Workers

By Steven Kent     From The Wall Street Journal Online

I have been an equity research analyst for more than 15 years, the last 10 devoted to analyzing consumer service stocks, including restaurants, hotels, casinos, and cruise companies. These are labor-intensive sectors. As part of my analyses, I have quizzed senior management on the steps they take to manage labor costs. It has been conventional wisdom that reducing wages and benefits improves profit margins, earnings, and even stock price because, generally, investors reward companies that cut these expenses. In reality it's not that simple.

I don't think enough investors have asked the more important question: Can companies be even more successful by focusing on optimizing each employee's contribution, rather than simply looking for ways to reduce the cost of employing them? Perhaps we, as investors, need to be more conscious of how those people who clean our hotel rooms, cook our meals, and deal our cards are treated and paid, rather than simply looking to see whether the expense can be cut further. Staff motivation, although difficult to quantify, should be part of the investment analysis.

You can read this article in its entirity at CareerJournal.com

For those of you interested in hearing more about how executives can set the tone from the top of the organization stay tuned for information about our May 1, 2007 CFO Forum with our keynote speaker Ed Maier.

An Entrepreneurial Success Story – Mike Abrashoff

I first met Commander D. Michael Abrashoff in 1999 when he was the Commander of the U.S.S. Benfold.  Fast Company magazine had just written an article about how Mike, a 38 year old Navy Captain, had used principles called “grassroots leadership” to turn the worst ship in the Pacific Fleet into the best. Mike, naturally, received a lot of attention and was invited to speak to many corporate executives as result of the article. So, while he kept his day job in the Navy, he used vacation days to fly around the country and speak to corporate audiences. After a year or so of this Mike wound up deciding to retire from the Navy a little early and pursue his passion for teaching others how to be great leaders.

Today, seven years later, Mike is the author of 2 bestselling books (one of his books has sold more than 350,000 copies!) and is a speaker in great demand. He has also turned his passion for teaching others to lead into a successful training and coaching company called Grassroots Leadership. I have heard Mike speak on numerous occasions and he is a dynamic and motivational speaker. But, the key to his success, is that he has turned something he is passionate about into a full time job. We can all learn from Mike’s success. If you have a skill, an action plan, and an ability to communicate you can turn your passion into a business.

Who could imagine that giving speeches to a few corporate executives after being featured in a magazine article could lead to a whole new career? When I first met Mike I had no idea how well known he would become nor how many corporations would want to learn about his secrets for leadership success. Mike wisely took advantage of opportunities. He was resourceful and he looked for innovative ways to market his skills. Mike is also a really nice guy so people wanted to help him along the way. But most of all he believed in himself.

You can find out more about Mike, his company, his books, speaking engagements, and his services at www.grassrootsleadership.com