Working with VCs For Your Start-Up Business

Last month, while browsing Yedda, I came across a question about venture capitalists and start-ups.

What is the right time to incorporate a vc in the start up?

I couldn't resist providing the Yedda user with some meaty links to help him out. Here's what I wrote...

There is no "right time." It depends on your business and well, you! Everyone has different timing. Make sure you have a rock solid business plan before you approach a VC. Many VCs look at your track record, either as a previous employee or business owner, but product or service potential and projected return on investment is a big factor. Some VCs specialize in start-ups, and some business owners get funding at the onset, so your question about the timing may be moot.

If you'd like to read about a start-up entrepreneur who attracted VCs early in the game, check out this blog article.
Ramit Sethi, co-founder & VP of Marketing for PBwiki, presents Friday Entrepreneur: Joyce Park, Renkoo posted at I Will Teach You To Be Rich. Ramit interviews Joyce, co-founder and CTO of Renkoo, about her decision to fund her start-up "almost immediately ($3 million in VC)."

There are also some step-by-step articles on eHow.com about getting money from VCs.

• How to Secure Venture Capital Money
• How to Prepare a Pitch to a Venture Capitalist

There's a nice article on CNNMoney titled What a VC wants to see in you, that talks about wooing "even the fussiest venture capitalists." And don't forget to read "Top Ten Lies of Venture Capitalists" by Guy Kawasaki, to help you put things in perspective.

Meanwhile, if you're interested in getting additional help with business planning, reading case studies, and finding other entrepreneurs like yourself, check out JumpUp. JumpUp is a new site by Intuit for small business owners and start-up entrepreneurs. I've added several links under "My Saved Bookmarks" for help in starting a business, so start with my Profile on Kim's JumpUp Page. By the way, just so you know, I work for Intuit...

Good luck!

~ Kim

Naming Your Web Site

About a week ago, while browsing Yedda, I came across a question about naming a Web site.

I am developing a site for students, somebody has a suggestion of a name for the site???

Of course, a couple of users immediately started throwing out cute ideas. That's where I decided to step in. Here's my answer, as seen at Yedda.

Before you start coming up with cool names for your site, think about what you want to convey about it. What types of services are you going to offer? What features and functions will the site have? What type of site is it -- social networking, educational, or something completely different?

Sure you can come up with a name that has nothing to do with its purpose -- obviously Amazon.com and a host of Web 2.0 properties have done it. You could coin your own phrase by inventing a pseudo word for a site name, which might start a verb trend (ever heard of "googling"?). GoDaddy.com CEO Bob Parsons talks about strange domain names on his April 6, 2005 podcast, if you're interested.

Keep in mind that you want your domain name to be brandable and memorable. I'd be glad to give you some ideas, but it would be better to know -- what is the site's purpose or, better yet, (aside from the "funny" tag in your question) what do you want the user community to remember?

If you really want to create some buzz, stage a contest to name the site. You might even be inspired by this guy who offered to change his name for the highest bidder.

Meanwhile, while you're trying to figure it all out, here are a few helpful links to get you started on domain name brainstorming or "namestorming." These sites have wizards that combine words and can suggest domain names.

Domain Name Wizard

Domain Twister

DomainGen.com

Domain2Trade

123Finder.com

There's also an article on JumpUp called Winning the Name Game. It's a two-part article on what to look for in a name and how to reserve it for your business.

By the way, I work for Intuit, so visit my JumpUp profile for more helpful links under "My Saved Bookmarks."

~ Kim

Customer Care Is Alive at the Crowne Plaza Cabana

Customer Care Is Alive at the Crowne Plaza Cabana

Review of: Crowne Plaza Cabana Palo Alto, Hotels

By: Minced Media on Judy's Book

Rating: 5 stars

Read review on Judy's Book.

I've stayed at the Crowne Plaza Cabana in Palo Alto a few times because of its comfortable rooms, amenities, and convenient location near company headquarters. This trip, I had misplaced my hotel bill upon returning home. Nuts! It would be difficult to file my expense report without it.

"To the Web," I declared, quickly locating the hotel Web site. I emailed someone named Josephine with identifying details and requested a duplicate bill. Imagine my delight when I received a PDF copy of my bill attached to an email...in less than an hour. Wow! I'm impressed.

Five Top Tips for Starting Your Business

1. Define your business by writing a detailed business plan.
I'm amazed at how many people continue to start and/or operate a business without one. Then they wonder why they are failing. Guess what's more amazing. Business owners who think they can attract investors without this important step.

2. Find a mentor or two.
You can ask an old buddy or call a local office of S.C.O.R.E. or a Small Business Development Center. Get trained and take classes from a veteran in your field. You really need someone to be honest enough to "smack you up the side of the head" when you are out of touch with your market. Check your ego at the door and get an expert's help.

3. Get business insurance.
We are such a litigious society, that it's become a requirement of doing business. You're a consultant and you think you don't need it? Come on! Who knows how someone will interpret your omission of key information, even if it occurred after the fact? Cover yourself. Get insured.

4. Network, network, network.
Join the local Chamber, business clubs and national associations. No one ever became rich in a vacuum. No matter what your age, gender or business model, you need to listen to and talk to others to bounce ideas and share resources. Besides, you'll save yourself a ton of legwork if you know who and what to ask. And you might even find a future business partner. Imagine that!

5. Share your knowledge with others.
Give back to the community. Speak at conferences and local business meetings. Spend time with an undergraduate business student or even a high schooler involved in Junior Achievement. It's what good citizens do. If you can't do it for others, do it for yourself. You never know when someone you help today will be in a position to help you tomorrow.

Want more ideas? Visit JumpUp, a new site for small business owners and start-up entrepreneurs. It's operated by Intuit, makers of Quicken, QuickBooks and TurboTax. I work for Intuit on the JumpUp team. Visit my JumpUp profile for some helpful links under "My Saved Bookmarks."

Buy Your Way to Fame...and Support a Good Cause

Have you ever wondered what it takes to become a film producer, billed alongside the names of the Hollywood elite? Apparently, a dollar will do it these days.

If you haven't heard about it yet, here's the scoop. The 1 Second Film (2007) is "a collaborative non-profit epic that climaxes in one second of animation." The idea is to raise money for charity. You pay any amount and you automatically get a credit in the film. In essence, the film will consist of one second of animation and 90 minutes of credits rolled alongside a documentary of the making of the film. Currently, the project is in production, with a projected premier date of November 2006.

It's not a joke...it's pure genius. I heard about the 1 Second Film project while searching on YouTube. The most entertaining part of the promo, apparently filmed at Sundance 2005, were the celebrity comments.

Comedian Tom Arnold said "Oh, God, What a great deal," in reference to the producer credit he obtained by donating $100.00. Pierce Brosnan chipped in $10.00 then referred to himself as a "sucker producer." After cobbling together a whopping $11.00 for his producer credit, Stephen Colbert said, "IMDB should put these credits in. It's as valid as most of my credits."

Just how good is this idea, from a Word of Mouth perspective? It's probably the best WoM bonus any film could ever hope to achieve.

I think what you are doing is probably one of the most creative and inspiring ideas I've ever heard of, not to mention a noble and unselfish act in raising money for this charity. If I had a million, I would donate it, I know how hard it is to raise money for a project, and to raise money for a charity. I've sent out a mass email to about 100 people telling them about your project, so I hope you get some more donations. Congratulations on your success thus far.
- Jason Lupish, $15 Producer