Originally published byBuiltinChicago I have been a techie for most of my life and cofounded multiple startups with varying levels of success. I had conversations with a number of teams and individuals over the last year, for partnering to create something great. After meeting with quite a few early stage startups and cofounders, I thought it would be helpful if I were to document some helpful points I’d like to make regarding the experiences and discussions during this process. (These are generic topics that do not reflect on any specific individual or company I have spoken to.) 1. You do not have a Billion dollar idea. Yes, if you build something solid around it, it could be. If your idea alone is spectacular, then sell the idea itself and hire me and my development team to implement it while keeping all of the equity. 2. What skills do you bring to the table? Please don’t come in saying you are the idea guy – you have to come with more. Here are the skills I value: The ability to sell and gain revenue. A knack for product development. The keen sense to create slick and usable designs. Someone that can make something instead of talk about it. The ability to find partnerships , money and/or customers. Can you do any of these? If not, I’m not very interested. 3. Your diversified business skills are not enough. Tell me what you have done and not the companies that have given you a paycheck. What have you specifically accomplished yourself? How? 4. Presenting top-down financial projections do not matter. These can be derived easily. Furthermore, depending upon the startup specifics and logic involved, it may mean next to nothing in the long run. 5. Multipage financial models are not inspiring. My team and I can program nearly any concept in most programming languages. Excel macros paired with vague assumptions is not stable enough to base decisions on. 6. Validate your idea. If you are asking me to invest my time, effort, resources and development team, you need to back up yourself and ideas. You are ultimately asking me to invest in a startup, even though it is non-monetary. Treat it that way and convince me with something concrete. 7. Don’t be greedy. Fairness goes a long way. 8. Know the difference between a technical cofounder and a developer. If you need somebody to modify WordPress, Joomla or something of that nature, you don’t need a technical cofounder. Just hire a developer for few weeks and you will be done with it. 9. Don’t ask me to sign an NDA. If you are not going to ask an angel investor to sign one (I hope not), why would you ask me? If you take the necessary time and effort needed to present your idea wisely and stand out, you will be able to move forward with your endeavor. This is by no means a definitive list, but it is a great way to improve your chances of teaming up with the right technical cofounder.
Ever hear someone say “Hey! That was my idea”? Anyone can have an idea, but how it’s executed is ultimately what matters. Wantaprenuers initially discuss ideas with a lot of zeal, but excitement and interest rapidly tapers off. In the end, nothing is produced and ideas are never executed. The saddest part of being a wantaprenuer is lack of follow through. So what defines a true entrepreneur? “There is only one definition. An entrepreneur is someone who gets something new done.” – Peter Drucker Wantrepreneurs typically fail to create successful startups due to being overly-anxious about or having the inability to budget and gauge time. How can you become a true entrepreneur? First, determine what it is you really want to do. Then take the necessary steps toward your goals. Finally, take a step back to build off what you have learned. Repeat, repeat, repeat. If you act more like a true entrepreneur and attempt to get something new developed, you may gain more personal character than you ever thought possible. Entrepreneurs constantly test and validate plans. The key is to start small, test, tweak and pivot if you are not successful. Once your idea is taking off, scale it and grow. So what is the easiest way to accomplish your first step on your new path? For one, you could find a reasonably priced website solution with a built-in business model. For example, if you are thinking of developing a site like Etsy, there would be a lot of time and money to be spent on this idea before the site is even launched. Points to consider would be site design, payment gateways, website features, sellers, generating revenue, pricing plans, user profiles – the list goes on and on. This could take months to test, sort and thousands of dollars to create from scratch. If you were to start your site using a premade model, it would cut back on a lot of guesswork and initial investment. Instead of devoting all of this time, effort and financial cost to development of a site before it is even launched, wouldn’t it make more sense to apply it to marketing and be sure your concept will fly in the real world? Depending on how the public views your site and your idea, you may have to change or tweak certain aspects of the site anyway. If this is the case, you could very well find your hands tied when you need your resources the most. This is a typical pitfall for first-time entrepreneurs. Another sign of a good entrepreneur is the ability to spot your mistakes, correct quickly and not repeat them. Although a scenario like this could be seen as a good learning experience, you can save yourself that lesson and preserve your financial cushion by getting off on the right foot. Utilize solutions that are already available to you and hold off on perfecting your site until you have a better idea of what works and what doesn’t for your business. At iScripts our team offer ready made software scripts with built-in business models so entrepreneurs can get started in days instead of months while saving thousands in an effort to preserve your energy and resources for the future when you will need it most. What would we use for our hypothetical Etsy site? iScripts MultiCart was created with built-in features for entrepreneurs looking to build an ecommerce website with multiple sellers. Tailor the site with your logo, content, images, design and add your unique spin for your niche. You are ready to start. There are number of companies like iScripts allow you to go to market in days instead of months. If you are creating an ecommerce model try volusion or shopify instead hiring developers to create the software. For your crm try salesforce or sugar crm. What makes this option even more appealing is its flexibility and scalability. When your idea is accomplishing realistic expectations, you will still have the ability and resources to perfect your online business as needed. Your site will be able to automatically handle an unlimited amount of users, sellers and products without any future trouble. You can also make changes and tweak your site at any point because the script is entirely open source. So what are you waiting for? Do something with your ideas and stop being a wantrepreneur!
How can small and medium-sized businesses to create a direct channel to their best customers, effectively build loyalty and customer advocacy? Our solution was called PIO Social. PIO Social empowers existing customers of a business to bring in new customers through repeatable and measurable word-of-mouth marketing campaigns. THE IDEA: Through a PIO (Pass It On) Social campaign, brands have the ability to build and maintain a one-on-one relationship with a growing number of users, their friends, and extended social network. The platform improves the reach of a brand using a product or service as a currency. In social channels, brands want to connect with not just their fans, but friends of their fans. PIO Social was an elegant way to do so. The PIO Social platform enables businesses to establish personal connections with customers. The application establishes a one-on-one connection between businesses (or brands) and loyal customers. Through the PIO Social platform, special promotions, offers, and deals can be easily formatted and passed. The merchant control panel brands to identify and reward their most loyal users. Brands view demographics, usage and geographical info of the users, their sharing, effective and all. There are points sharing the messages and leaderboard for gamification. The result of an effective campaign is launching new products, marketing initiatives and gathering critical data on how your customers perceive your products and brands. After developing and launching PIO Social, it was featured as a promising startup at the Chicago Tech Cocktail. Update: PIO Social is being acquired by a Chicago, IL social media agency, Brick Fish. Our team and I will be joining the engineering team in Chicago.
One day my wife, Priya, was browsing Facebook when she saw that her friend Pat recently purchased gluten-free baking mix from a Facebook store. Priya quickly took note because she had been unsuccessfully searching for hypoallergenic baking mixes to make for our daughter. She asked Pat about the mixes, and he had only good things to say about Zema, a local vendor specializing in gluten-free baking mixes. He also gave Priya an exclusive coupon code to use on Zema’s mixes. Once Priya bought the mix from Zema’s Facebook store, an update was posted on her friends’ newsfeeds. Priya’s friends began to inquire about this unique vendor, and she was happy to pass the promo code along to them as well. This is a great example of how successfully social media can help generate sales. Even though social influence marketing seems easy for merchants and customers, it puts enormous pressure on the businesses to take care of existing customers much more than in traditional commerce. As customers create new customers, business becomes more focused on operations and less on marketing. The goal of social commerce is not just immediate sales transaction but initiating engagement which will turn customers to social brand ambassadors. In social media, businesses are concerned with something known as social engagement. Commercial transaction converts social engagement into revenue. This “social commerce” enables consumers and businesses to make buying decisions and complete buying processes where they connect to their peers. While social commerce is a fairly new idea, it holds merit in the business world due to its sustained growth. Social commerce is not one coherent concept; in fact, there are several varieties of social commerce out there. First, regular social commerce allows merchants to reach customers within social communities. The merchant enables consumers to complete a transaction within the community. Facebook is a highly used medium for this type of interaction as a number of retailers have created f-commerce stores allowing users to buy without leaving the friendly confines of Facebook. Another popular type of social commerce is group buying. Connected users create demand for a certain product or service while simultaneously demanding better prices. Popular mediums such as Groupon, Facebook deals, and BuyWithMe use a group buying platform. Additionally, flash sale sites like Hautelook and Ideeli offer a different social experience where shoppers can score quick, exclusive deals on merchandise. Finally, social marketplaces such as 99 Designs and SocialCart allow users to sell products from a master catalog to their in order to generate profit. When merchants and brands began using social communities to interact with customers they focused on the marketing advantages. Facebook launched Pages in November of 2007, but it was not until July 2009 that a transaction was made on Facebook. After this first transaction social commerce took off because businesses realized its profitability in terms of social proof. Research continues to conclude that people are more likely to purchase products once they see friends doing so, giving social proof a sure edge. A recent study found that 67% of consumers buy more online after a recommendation from an online community. This forces smart businesses to make social commerce a priority. Who are the major players in social commerce? Within group buying, companies like Groupon, Living Social, and Facebook Deals rule. Groupon has over 85 Million subscribers as of June 2011. Flash sale sites like Hautelook and Ideeli are also growing significantly. Three of the top four private shopping websites are expected to bring in combined revenue of $300 million this year, proving that they are certainly players in this game. Facebook founder Mark Zuckerberg recently said “social commerce is the next area to really blow up….” Industry predictions agree, stating that by 2015 social commerce transactions will top thirty billion dollars by 2015. This predicted growth is the proof many companies need to jump into social commerce. Recent trends also support theories on explosive growth. During a one year period the number of daily Groupon visitors increased by over 4 million. Private shopping sites are also expanding, and this growth is expected to continue. JPMorgan retail analyst Brian Tunick stated that, “It looks like these sites are growing revenues significantly faster than any other part of retail.” These expansions will push social commerce into the everyday lives of many individuals. While it is clear that social commerce is alive and growing, it is not without its share of challenges. Since the world of social commerce is new and continually changing- consumers, businesses, and technology moguls are all forced to overcome obstacles. Consumers need to cut through noise to figure out what reviews to trust. Unlike face-to-face communication where an individual can determine the source and credibility of information, online reviews and recommendations are not always so wholesome. Affiliates of the company type out rave reviews while competitors throw insults. A consumer must sift through information, a task that was not necessary before the age of online social interaction. Businesses are also presented with a large number of challenges. Privacy and security are among top concern. While social media sites harness the power of privacy settings, there is still much to be desired in terms of business practices. Businesses must gain the trust of consumers before they are willing to present their information over this internet medium. Privacy concerns rise when multiple sites and environments are introduced. For example, a transaction is completed on a Facebook store and information is sent to Google+ used on an iPhone. The privacy of Facebook, Google, and Apple are all applied here. What happens when they are not in sync? What type of privacy assurance can the customer expect? Add in transactions with people from multiple countries and the scenario becomes very complicated. Reputation management is also a challenge as customer reaction requires monitoring and response. Social commerce allows for the consumer to provide feedback, vocally or through purchase, but the business owner must always be listening attentively. Final challenges come from technology. Implementing a social commerce environment is far more complex than creating a simple profile page. It’s even more difficult when different parties are involved in a single process. Who is responsible for what? How does the user deal with multiple parties? Design is another concern. Studies found that consumers rate the appearance of the site over the quality or functionality. Money exchange is also an issue. While credit cards served us well traditional ecommerce settings, a social environment creates a need for social currency. One of the first attempts for a social currency is Facebook credits, which is in its infancy. Merchants also need monitoring technology to identify and engage with customers across different environments. Mobile commerce platforms are going through a transition with the help of HTML5. These same changes are expected for social commerce too. While these challenges can be overcome, they are new to many businesses. Before the age of social commerce these obstacles were unforeseen, but they must now be placed at high priority to ensure success. The world is certainly changing. There once was a day when people relied on face-to-face conversation for recommendations. Later the yellow pages arrived, with thousands of suggestions literally at one’s fingertips. Enter the informational web, with searches providing all the information a consumer desired. Now the world has come full circle, relying on online friends to provide recommendations and feedback. The social web has combined the high points of face-to-face interaction with the accessibility of the web. Companies that figure out how to utilize the social web will win this game, but only if they determine when and where customers engage their products. Profile of Aji Abraham Aji Abraham is a cofounder and CTO of PIO Social, LLC a social commerce platform which enables businesses to convert their existing customers into Social Brand Ambassadors using pass it on marketing. He is also founder and CEO of Armia Systems, Inc which is a web applications development company creating applications in Social Networking, eCommerce and Content Management. Linkedin Profile: http://www.linkedin.com/in/armia
As opportunity in social commerce continues to rise, retailers and vendors are now looking for a way to allow representatives, marketers and/or social networkers to sell products through social networks. In light of this, we created a free app that would enable users to create stores and sell products on Facebook, Twitter, blogs or any other social page. With just a few clicks, representatives, marketers and/or social networkers associated with any company can create shopping carts on the SocialCart platform in order to promote directly to friends and family within the welcoming confines of Facebook, Twitter, blogs or any other social media site. Users can comfortably purchase without being redirected, leaving the site or clicking unnecessarily. Our distributed social ecommerce platform, SocialCart, is 100% free for vendors and networkers. The platform charges a percentage of sales and pays out a percentage to networkers on a pay-per-sale basis. Social networkers receive commission when products are purchased through their storefront or a storefront they have referred. The networker side of the application is integrated with a Facebook app, Twitter app and other social media channels used to spread viral promotions. When developing the back end, we made sure vendors would have a feature-rich dashboard for managing inventory, networkers, resellers, staff and orders. This app was developed using a modified Armia MVC framework on a distributed server cluster. A large amount of user transactions and data from tens of thousands of users (and millions of shares) were managed using Hadoop implementation and dedicated analytics servers. We are launching it as beta by first week of May with few local merchants. We shared the platform with Demo and has an invitation to Spring Demo for Alpha Pitch. Not finalized we are participating as there certain expenses associated and we are self funded now. Anyway it is an honor to be selected/invited to the Demo.