1. Off the Books: The Underground Economy of the Urban Poor
In this revealing study of a Southside Chicago neighborhood, sociologist Venkatesh opens a window on how the poor live. Focusing on domestics, entrepreneurs, hustlers, preachers and gangs linked in an underground economy that "manages to touch all households," the book reveals how residents struggle between "their desires to live a just life and their needs to make ends meet as best they can." In this milieu, African-American mechanics, painters, hairdressers, musicians and informal security guards are linked to prostitutes, drug dealers, gun dealers and car thieves in illegal enterprises that even police and politicians are involved in, though not all are criminals in the usual sense. Storefront clergy, often dependent "on the underground for their own livelihood," serve as mediators and brokers between individuals and gang members, who have "insinuated themselves—and their drug money—into the deepest reaches of the community." Although the book's academic tenor is occasionally wearying, Venkatesh keeps his work vital and poignant by using the words of his subjects, who are as dependent on this intricate web as they are fearful of its dangers.
2. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
Economics is not widely considered to be one of the sexier sciences. The annual Nobel Prize winner in that field never receives as much publicity as his or her compatriots in peace, literature, or physics. But if such slights are based on the notion that economics is dull, or that economists are concerned only with finance itself, Steven D. Levitt will change some minds. In Freakonomics (written with Stephen J. Dubner), Levitt argues that many apparent mysteries of everyday life don't need to be so mysterious: they could be illuminated and made even more fascinating by asking the right questions and drawing connections. For example, Levitt traces the drop in violent crime rates to a drop in violent criminals and, digging further, to the Roe v. Wade decision that preempted the existence of some people who would be born to poverty and hardship. Elsewhere, by analyzing data gathered from inner-city Chicago drug-dealing gangs, Levitt outlines a corporate structure much like McDonald's, where the top bosses make great money while scores of underlings make something below minimum wage. And in a section that may alarm or relieve worried parents, Levitt argues that parenting methods don't really matter much and that a backyard swimming pool is much more dangerous than a gun. These enlightening chapters are separated by effusive passages from Dubner's 2003 profile of Levitt in The New York Times Magazine, which led to the book being written. In a book filled with bold logic, such back-patting veers Freakonomics, however briefly, away from what Levitt actually has to say. Although maybe there's a good economic reason for that too, and we're just not getting it yet.
3. Ragnar's Guide to the Underground Economy
Through detailed case studies Ragnar shows you how carpenters, woodcutters, farmers, housecleaners, computer consultants, mechanics, lawyers, vendors, locksmiths and others are cashing in on today's booming economy - and keeping what they earn by not paying taxes. From these undergrounders you'll learn how to locate work, get paid without supplying identifying numbers, prepare a realistic budget, advertise your services or product and finance your project when you can't go to the bank. You'll also learn the pitfalls of working off the books and what you can do to prepare for them.
4. How to Survive Without a Salary: Learning How to Live the Conserver Lifestyle
I thought that this book was so funny in places that I haven't laughed so hard, so much, for a long time. Charles is a skilled writer; the book is very readable, intelligent, thoughtful,and well organized. It contains a copious (even prodigious) amount of tips, for a 200-page book. Very practical, and at the same time touches on abtruse philosophical areas, especially at the end of the book.
Hey, I used to think I was cheap. This guy is CHEAP. His anecdotes include waiting for it to rain to take a shower instead of installing indoor plumbing. He had a big hole in the floor of his entryway, or somewhere in his house, into which the kids and a few guests fell. He refused to spend one cent covering the hole, until a neighbor told him about a steel grate they threw away years ago, so he went to the dump and found it.
The point is that you can learn from a top-notch "conserver"; an applied example I would give is to buy two gallons of milk when it's on sale and freeze one for later use (works well!). This guy probably drinks powdered milk though.
I disagree with his economic analysis; prudence CAN be a vice, as any virtue most certainly is in its extreme, or even overdone. But Adam Smith's Wealth of Nations is not just about "McPimple Burger" or keeping up with the Joneses. Any system on a mass scale is going to have gaping faults, and the weaker of us might succumb to our basest impulses. But perhaps Long goes a bit too far the other way...
At any rate, he sounds like an economic anarchist. Very well thought out book, great advice.
5. Gang Leader for a Day: A Rogue Sociologist Takes to the Streets
In Freakonomics, many people were fascinated by a section that described how most crack cocaine dealers lived at home with their mothers. Why? They make less money than minimum wage. The source of that factoid was research conducted on site by Sudhir Venkatesh, author of Gang Leader for a Day, who describes in this book how he did that research and came to make decisions one day for part of the Black Kings gang in Chicago.
In the process of reading this book, you'll learn more than you ever expected to know about the ways that the poorest people support and protect themselves. You'll also find how drug-dealing gangs are both a help and a hindrance to the poor.
More powerfully, you'll be exposed to the great difficulties involved in observing the lives of the poor and the gangs that spring from them. The moral and ethical dilemmas this book presents are almost beyond belief.
6. Under the Table and Into Your Pocket: The How and Why of the Underground Economy
Under The Table And Into Your Pocket: The How And Why Of The Underground Economy by Bill Wilson will provide the non-specialist general reader with a complete education on a facet of the American economy rarely (if ever) covered in school. Beginning with an introduction to just some of the ways governmental regulations strangle business, overtax the little guy, and enable Washington to be the drunken big spender that it is today (if you overpay your taxes by $7,000 and don't reclaim it within three years you're out of luck - but underpay it by $7,000 and the IRS can and will come after you no matter how much time has passed!), Under The Table proceeds to demonstrate how the little guy can circumvent taxes by doing business away from Big Brother's prying eyes. From boarding houses and flea markets to roadside merchants and dominatrix work, Under The Table covers the benefits, disadvantages, tips, tricks, techniques and much more of common underground ways to earn a living. Under The Table is emphatically not a legal guide; neither the author nor the publisher assume any responsibility for the use or misuse of information contained within - but the eye-opening ins and outs of a truly free economy make for quite fascinating and advantageous reading.
7. Deep Inside the Underground Economy: How Millions of Americans are Practising Free Enterprise in an Unfree Economy
Are you fed up with giving so much of your hard earned cash to the government, then watching it get spent on ridiculous pork-barrel special-interest projects? Would you like to hold on to more of your money for your own special-interest boondoggles? The underground economy continues to grow in spite of ever-widening atttempts by the government to regulate and tax everything we do. Millions of Americans are practising fee enterprise in today's increasingly unfree tax society. This is the most comprehensive how-to book ever written for those entrepreneurial individuals who have decided to end their slavery to a wage and to government taxation as well. Discover how you can keep more of what you earn for yourself. Here you will find complete and up-to-date information on the ins and outs of guerrilla capitalism and the underground economy in this country.
8. Empire of Scrounge: Inside the Urban Underground of Dumpster Diving, Trash Picking, and Street Scavenging.
In December of 2001 Jeff Ferrell quit his job as tenured professor, moved back to his hometown of Fort Worth, Texas, and, with a place to live but no real income, began an eight-month odyssey of essentially living off of the street. Empire of Scrounge tells the story of this unusual journey into the often illicit worlds of scrounging, recycling, and second-hand living. Existing as a dumpster diver and trash picker, Ferrell adopted a way of life that was both field research and free-form survival. Riding around on his scrounged BMX bicycle, Ferrell investigated the million-dollar mansions, working-class neighborhoods, middle class suburbs, industrial and commercial strips, and the large downtown area, where he found countless discarded treasures, from unopened presents and new clothes to scrap metal and even food.
9. McMafia: A Journey Through the Global Criminal Underworld
In McMafia, Misha Glenny draws the dark map that lies on the other side of Tom Friedman's bright flat world. That connected globe not only brings software coders and supply-chain outsourcers closer together; it's also opened the gates to a criminal network of unsettling vastness, complexity, and efficiency that represents a fifth of the earth's economy, trading in everything from untaxed cigarettes and the usual narcotics to human lives and nuclear material. Glenny's a Balkans expert, and he begins his story there, with the illicit--but often state-sponsored--underworld that grew out of the post-Soviet chaos, but he soon follows the contraband everywhere from Mumbai and Johannesburg to rural Colombia and the U.S. suburbs. It's not just a hodgepodge of scare clips, though: Glenny reports from the ground but follows the leads as high as they go, showing how the dark and bright sides of the flat world are more connected than we imagine.
10. Living Well on Practically Nothing
Living Well on Practically Nothing: Revised and Updated Edition is for people who need to live on a lot less money. If you have been fired, demoted, retired, divorced, widowed, bankrupted or swindled - or you just want to quit your job and remain financially self-reliant - this book is for you. In it are hundreds of tips, secrets and necessary skills for living well on little money. Chapters include: Save Up to $37,000 a Year and Live on $12,000 a Year; Low-Cost Computers for Fun, Profit, and Education; Some Ways to Live on No Money at All; A Day of Cheap Living; A New Career or Business for You; Fix Things and Make Them Last; and Protect Your Investments and Make Them Grow. From cover to cover, this book is stocked with proven methods for saving money on shelter, food, clothing, transportation, entertainment, health care and more. The author left the "system" in 1969 and has worked for himself ever since. Let him show you how you, too, can live happily, comfortably and with complete financial freedom.
P.S. If you'd like to know how I make my money (it's not really "shadow" or illegal at all, but it gives me freedom to do anything I want to, while providing steady stream of income), feel free to check out my websites - PickyDomains.com, NicheGeek.Com, StandupKings.com, SoftwareJudge.Com, Best Free Documentaries.
Jumat, 12 Juni 2009
Rabu, 10 Juni 2009
Still Think You Are Too Old To Start A Business?
Link of the day - I will pay you $25, if you come up with a cool domain name for me.
http://www.moosetracks.com/
Wally Blume worked in the dairy business for two decades, first for grocery chain Kroger and later as sales and marketing director for a large dairy in Michigan, where he helped market new ice cream flavors. But soon after another company purchased the dairy, Blume decided that the once-innovative company was falling short, prompting him and a couple of colleagues to quit to develop and market their own flavors. In 1995 the partners had a national hit with Moose Tracks (a combo of vanilla, peanut-butter cup, and fudge), and within a few years Blume decided he'd be better off running his own company.
In 2000, Blume mortgaged his house and every other asset he could, plunking down what he says was "seven figures" to buy out his partners and start anew. That same year, he launched Denali Flavors, a marketing and licensing company that creates new ice cream and dessert concepts for independent regional dairies, allowing them to compete with the big national dairy brands. Looking back, Blume says: "I knew I could run it better than my partners. In my opinion there was just no downside to the risk."
While Blume's path from corporate suit to entrepreneur may sound familiar, his story has a twist: Blume was 61 when he went into business for himself.
In recent years, the number of individuals starting their own businesses during what is usually considered the "retirement years" has been rising, according to economists and small-business observers. And so has the age at which they are starting their own ventures: According to the nonprofit AARP Public Policy Institute, in 2008, 21% of the self-employed were between 55 and 64, while 10% were 65 and older. Of course, not every self-employed senior is an entrepreneur, but experts believe the stock market's recent brutalization of retirement accounts will prod additional older Americans to start their own businesses.
A combination of economic volatility as well as the growing number of baby boomers with time, energy, and money on their hands has redefined the starting age for new startups and has led to a surge in senior citizen entrepreneurs. This is a category that is only recently being studied. Five years ago, Boston's Putnam Research reported that some 7 million previously retired Americans had returned to work. Similarly, a 2005 study by the Center on Aging & Work/Workplace Flexibility at Boston College found that workers 50 and older are more likely than younger folks to own their own businesses.
While Blume concedes that betting the farm on launching a business in his 60s was a dicey proposition, he says his age and experience gave him an unparalleled advantage. "I always wanted to go into business for myself when I was younger," he says. "But I didn't have the money. At 61 if I was trying to get into a business that I didn't understand and spent that kind of money, someone should have put me in a home. But I understood this business, and I saw its potential." Moreover, he says his time in the trenches also left him with a strong sense of what not to do. "I paid off my loans in 25 months," he notes. And today, Denali Flavors earns about $80 million annually and has licensing agreements with a number of manufacturers. Denali's 40 different flavors can be found in all 50 states as well as Canada. Now 70, Blume is just getting started, having launched two additional ventures: a sauna business and a boat pontoon outfit.
How to Make Millions with Your Ideas: An Entrepreneur's Guide
Small Business Ideas: 400 Latest & Greatest Small Business Ideas
Start & Run a Real Home-Based Business
The Monk and the Riddle: The Art of Creating a Life While Making a Living
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich
http://www.moosetracks.com/
Wally Blume worked in the dairy business for two decades, first for grocery chain Kroger and later as sales and marketing director for a large dairy in Michigan, where he helped market new ice cream flavors. But soon after another company purchased the dairy, Blume decided that the once-innovative company was falling short, prompting him and a couple of colleagues to quit to develop and market their own flavors. In 1995 the partners had a national hit with Moose Tracks (a combo of vanilla, peanut-butter cup, and fudge), and within a few years Blume decided he'd be better off running his own company.
In 2000, Blume mortgaged his house and every other asset he could, plunking down what he says was "seven figures" to buy out his partners and start anew. That same year, he launched Denali Flavors, a marketing and licensing company that creates new ice cream and dessert concepts for independent regional dairies, allowing them to compete with the big national dairy brands. Looking back, Blume says: "I knew I could run it better than my partners. In my opinion there was just no downside to the risk."
While Blume's path from corporate suit to entrepreneur may sound familiar, his story has a twist: Blume was 61 when he went into business for himself.
In recent years, the number of individuals starting their own businesses during what is usually considered the "retirement years" has been rising, according to economists and small-business observers. And so has the age at which they are starting their own ventures: According to the nonprofit AARP Public Policy Institute, in 2008, 21% of the self-employed were between 55 and 64, while 10% were 65 and older. Of course, not every self-employed senior is an entrepreneur, but experts believe the stock market's recent brutalization of retirement accounts will prod additional older Americans to start their own businesses.
A combination of economic volatility as well as the growing number of baby boomers with time, energy, and money on their hands has redefined the starting age for new startups and has led to a surge in senior citizen entrepreneurs. This is a category that is only recently being studied. Five years ago, Boston's Putnam Research reported that some 7 million previously retired Americans had returned to work. Similarly, a 2005 study by the Center on Aging & Work/Workplace Flexibility at Boston College found that workers 50 and older are more likely than younger folks to own their own businesses.
While Blume concedes that betting the farm on launching a business in his 60s was a dicey proposition, he says his age and experience gave him an unparalleled advantage. "I always wanted to go into business for myself when I was younger," he says. "But I didn't have the money. At 61 if I was trying to get into a business that I didn't understand and spent that kind of money, someone should have put me in a home. But I understood this business, and I saw its potential." Moreover, he says his time in the trenches also left him with a strong sense of what not to do. "I paid off my loans in 25 months," he notes. And today, Denali Flavors earns about $80 million annually and has licensing agreements with a number of manufacturers. Denali's 40 different flavors can be found in all 50 states as well as Canada. Now 70, Blume is just getting started, having launched two additional ventures: a sauna business and a boat pontoon outfit.
How to Make Millions with Your Ideas: An Entrepreneur's Guide
Small Business Ideas: 400 Latest & Greatest Small Business Ideas
Start & Run a Real Home-Based Business
The Monk and the Riddle: The Art of Creating a Life While Making a Living
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich
Minggu, 07 Juni 2009
Cool Startups By College Students
Link of the day - I will pay you $25, if you come up with a cool domain name for me.
http://www.cityryde.com/
Building a company with staying power was important to Ericson, so he and his co-founders, James Perkins, 25, and Jason Meinzer, 26, opted to incorporate CityRyde as a for-profit entity when it launched in 2007. “You have to make green to go green,” Ericson says. “We knew we needed to have a model that allowed us to sustain the business while still helping us save the environment.” After a year of planning and development, Philadelphia-based CityRyde has positioned itself as an authoritative bike-sharing consulting firm, offering services to companies across the U.S. and projecting sales of $1.1 million this year.
How to Make Millions with Your Ideas: An Entrepreneur's Guide
Small Business Ideas: 400 Latest & Greatest Small Business Ideas
Start & Run a Real Home-Based Business
The Monk and the Riddle: The Art of Creating a Life While Making a Living
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich
http://www.cityryde.com/
Building a company with staying power was important to Ericson, so he and his co-founders, James Perkins, 25, and Jason Meinzer, 26, opted to incorporate CityRyde as a for-profit entity when it launched in 2007. “You have to make green to go green,” Ericson says. “We knew we needed to have a model that allowed us to sustain the business while still helping us save the environment.” After a year of planning and development, Philadelphia-based CityRyde has positioned itself as an authoritative bike-sharing consulting firm, offering services to companies across the U.S. and projecting sales of $1.1 million this year.
How to Make Millions with Your Ideas: An Entrepreneur's Guide
Small Business Ideas: 400 Latest & Greatest Small Business Ideas
Start & Run a Real Home-Based Business
The Monk and the Riddle: The Art of Creating a Life While Making a Living
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich
Selasa, 02 Juni 2009
Weird Websites - RunPee.Com
Link of the day - The Overspent American: Why We Want What We Don’t Need
http://runpee.com/
You're sitting comfortably in your plush chair at the multiplex, when suddenly you feel a twinge in the back of your neck. A quick glance down at your 136-ounce cola and you instantly realize that nature is calling, and it's urgent.
You don't have time to wait this time, but next time you can plan ahead for your restroom breaks with RunPee.com.
The site lists spots in the movie when it's safe to disappear for a minute or two. Better still, it will scramble the spoiler if you only want to know when to duck out and how long you've got. If you want to know what you missed, just unscramble the text upon your return.
There are also loads of additional features on RunPee, like reminders and the Pee Times - a bit of reading material you can print and enjoy whilst one your break.
10 Books That Absolutely Prove That Humans Are Irrational Creatures
Pitching Their Tent On The Web
ShortTask.Com Success Story
America's Most Promising Startups
http://runpee.com/
You're sitting comfortably in your plush chair at the multiplex, when suddenly you feel a twinge in the back of your neck. A quick glance down at your 136-ounce cola and you instantly realize that nature is calling, and it's urgent.
You don't have time to wait this time, but next time you can plan ahead for your restroom breaks with RunPee.com.
The site lists spots in the movie when it's safe to disappear for a minute or two. Better still, it will scramble the spoiler if you only want to know when to duck out and how long you've got. If you want to know what you missed, just unscramble the text upon your return.
There are also loads of additional features on RunPee, like reminders and the Pee Times - a bit of reading material you can print and enjoy whilst one your break.
10 Books That Absolutely Prove That Humans Are Irrational Creatures
Pitching Their Tent On The Web
ShortTask.Com Success Story
America's Most Promising Startups
Kamis, 28 Mei 2009
How We Started a Liquor Brand
Link of the day - Talent Is Overrated: What Really Separates World-Class Performers from Everybody Else
The Entrepreneurs: Courtney Reum, 29, and Carter Reum, 28
Background: Six years ago, Courtney and his brother, Carter, then both Goldman Sachs (GS) investment bankers, took a surfing trip to Brazil. While there the Chicago natives drank smoothies made with the açaí berry, known locally as "purple gold" because of its health properties. Four years later, Reum, who was working in Goldman's consumer-products division, decided it was time to stop observing businesses from the outside and start his own liquor company.
The Company: In May 2007, Reum launched VeeV, an açaí-infused wheat based grain alcohol liquor, positioning it as an alternative to vodka. Initially sold in high-end bars and clubs in Los Angeles, VeeV is now available in cities across the country—as well as on Virgin America flights.
Revenues: Estimated $5 million since 2007.
Their Story: During the five years I worked at Goldman Sachs, I participated in deals involving large multinationals such as Procter & Gamble (PG), but I also cut my teeth on much smaller deals—at least by Goldman's standards—working with the likes of Vitaminwater and Under Armour (UA). While there, I met people who didn't seem that much older than I was who had good ideas and had just decided to take the leap. I decided if they can do it—I don't know if I can—but I'm sure going to give it a try.
Having worked on one large alcohol merger in the spring of 2005 between Allied Domecq (ALYZF.PK) and Pernod Ricard, I was really struck by the lack of innovation in the alcohol space. When you really get down to it, there aren't many industries that have evolved less in the last 100 years than alcohol.
On the flip side, I considered myself a pretty normal consumer and was bored with my normal drink, Grey Goose and soda—or more often Grey Goose and Redbull because I was exhausted from my 100-hour workweeks. I felt like there had to be others like me who were looking for a unique drink that could serve as a badge of who they were and what they stood for.
That was the starting point for VeeV. We came up with its name because it sounds like the word for life in many of the Romance languages and we wanted the brand to signify "life/vitality/natural." We began the business the way every business book tells you not to: by using a tagline, essentially 'back-solving' our way into creating a product. We came up with the line: "A Better Way to Drink" because that was the goal, both in terms of the product and the company as a whole. We wanted to produce a beverage that had an interesting taste and was better quality than existing alternatives.
The Google School of Business
To that end we thought back to our surf trip and realized we could be out in front of the açaí trend. Açaí is often promoted as the healthiest food on the planet, since it has 57% more antioxidants than pomegranate, as well as plenty of protein, fiber, and essential fatty acids. Aware of the success of POM Wonderful with the pomegranate, we hoped we could turn the Brazilian berry into a similar story.
I put up the initial $250,000 in seed capital to get the first bottle on the shelf. I was confident I had a good idea and plenty of business experience. But I soon found that my time at Goldman was little help when it came to starting a brand from scratch. At a loss and in a bit of panic because I quickly realized I had no real beverage experience in what was going to be my new job, I just started doing what seemed logical at the time: I googled for answers. I found out the who, what, when, where, and why of how I might go about sourcing açaí. My online searches ultimately led me to brothers Ryan and Jeremy Black, from a company called Sambazon, who were the açaí pioneers in the U.S. Eventually they became VeeV's trusted advisers on all matters relating to açaí. (We also became friends.) Thanks to them, we found a way to harvest the berries and turn them into an extract that was shelf-stable for alcohol.
I also googled to find a domestic distillery that was capable of producing a product like VeeV, with an ingredient that had never been infused in alcohol. After numerous cold calls, I finally found a distillery in Rigby, Idaho, that had actually heard of açaí and had done some pretty innovative work, including putting caffeine into vodka.
Despite the distillery's experience with boutique brands, we still went through more than 100 iterations of the formula before settling on one. It's tricky to gauge consumers' reactions to alcohol because you'll never be all things to all people. We experimented on trusted friends who were in our target demographic as well as mixologists and food and spirit critics before ultimately settling on our current VeeV formula.
We came up with our unique bottle (frosted glass with a squared off shape) after noticing a small, similarly shaped bottle at the Fancy Food Show in New York. I furiously snapped pictures and sent them off to our consultants on a Friday. By Monday we decided to go with it. It has since made our brand stand out from others on store shelves.
a dollar per bottle supports rainforest protection
There were plenty more ups and downs. We learned that it's tough to be first to market with something unique. When we launched we were lucky if one out of 10 people was familiar with açaí, even in cosmopolitan, health-conscious cities. To get the word out, we drove around Los Angeles hot spots with a picture of açaí berries and the phonetic spelling (ah-sigh-EE) on our Prius.
We also wanted our business to be green. I was sick of greenwashing and false cause marketing, which usually consisted of companies making vague claims about donating "a portion of the proceeds" to charity. From the beginning we made a commitment to donate $1 from every bottle sold back to help fund Sambazon's nonprofit sustainable-farming project meant to protect the Brazilian rainforest. We did this despite the fact we weren't going to see any profits for a while. This was a first for an alcohol company. A dollar might not sounds like a lot until you realize how many bottles we could potentially sell—$1 per bottle is over 10% of our profits per bottle.
My biggest takeaway from all this: Don't try to do everything at once. It's admirable but often not feasible. After initially being overwhelmed by everything we wanted to be as a brand, we took a step back and realized that you don't have to be everything from Day One. Consumers tend to give you credit for "progress" as long as your efforts are genuine. So will investors—we've now raised a total of more than $5 million from angels.
People Flocking To Dating Services Amid Recession
California entrepreneur Bob Hertzberg picked a dark, overseas spot to house his bright idea.
Photomoney
Dumping Startbucks Can Be A Good Thing For Your Business
Magic As Business
The junk boom: Profiting from foreclosures
The Entrepreneurs: Courtney Reum, 29, and Carter Reum, 28
Background: Six years ago, Courtney and his brother, Carter, then both Goldman Sachs (GS) investment bankers, took a surfing trip to Brazil. While there the Chicago natives drank smoothies made with the açaí berry, known locally as "purple gold" because of its health properties. Four years later, Reum, who was working in Goldman's consumer-products division, decided it was time to stop observing businesses from the outside and start his own liquor company.
The Company: In May 2007, Reum launched VeeV, an açaí-infused wheat based grain alcohol liquor, positioning it as an alternative to vodka. Initially sold in high-end bars and clubs in Los Angeles, VeeV is now available in cities across the country—as well as on Virgin America flights.
Revenues: Estimated $5 million since 2007.
Their Story: During the five years I worked at Goldman Sachs, I participated in deals involving large multinationals such as Procter & Gamble (PG), but I also cut my teeth on much smaller deals—at least by Goldman's standards—working with the likes of Vitaminwater and Under Armour (UA). While there, I met people who didn't seem that much older than I was who had good ideas and had just decided to take the leap. I decided if they can do it—I don't know if I can—but I'm sure going to give it a try.
Having worked on one large alcohol merger in the spring of 2005 between Allied Domecq (ALYZF.PK) and Pernod Ricard, I was really struck by the lack of innovation in the alcohol space. When you really get down to it, there aren't many industries that have evolved less in the last 100 years than alcohol.
On the flip side, I considered myself a pretty normal consumer and was bored with my normal drink, Grey Goose and soda—or more often Grey Goose and Redbull because I was exhausted from my 100-hour workweeks. I felt like there had to be others like me who were looking for a unique drink that could serve as a badge of who they were and what they stood for.
That was the starting point for VeeV. We came up with its name because it sounds like the word for life in many of the Romance languages and we wanted the brand to signify "life/vitality/natural." We began the business the way every business book tells you not to: by using a tagline, essentially 'back-solving' our way into creating a product. We came up with the line: "A Better Way to Drink" because that was the goal, both in terms of the product and the company as a whole. We wanted to produce a beverage that had an interesting taste and was better quality than existing alternatives.
The Google School of Business
To that end we thought back to our surf trip and realized we could be out in front of the açaí trend. Açaí is often promoted as the healthiest food on the planet, since it has 57% more antioxidants than pomegranate, as well as plenty of protein, fiber, and essential fatty acids. Aware of the success of POM Wonderful with the pomegranate, we hoped we could turn the Brazilian berry into a similar story.
I put up the initial $250,000 in seed capital to get the first bottle on the shelf. I was confident I had a good idea and plenty of business experience. But I soon found that my time at Goldman was little help when it came to starting a brand from scratch. At a loss and in a bit of panic because I quickly realized I had no real beverage experience in what was going to be my new job, I just started doing what seemed logical at the time: I googled for answers. I found out the who, what, when, where, and why of how I might go about sourcing açaí. My online searches ultimately led me to brothers Ryan and Jeremy Black, from a company called Sambazon, who were the açaí pioneers in the U.S. Eventually they became VeeV's trusted advisers on all matters relating to açaí. (We also became friends.) Thanks to them, we found a way to harvest the berries and turn them into an extract that was shelf-stable for alcohol.
I also googled to find a domestic distillery that was capable of producing a product like VeeV, with an ingredient that had never been infused in alcohol. After numerous cold calls, I finally found a distillery in Rigby, Idaho, that had actually heard of açaí and had done some pretty innovative work, including putting caffeine into vodka.
Despite the distillery's experience with boutique brands, we still went through more than 100 iterations of the formula before settling on one. It's tricky to gauge consumers' reactions to alcohol because you'll never be all things to all people. We experimented on trusted friends who were in our target demographic as well as mixologists and food and spirit critics before ultimately settling on our current VeeV formula.
We came up with our unique bottle (frosted glass with a squared off shape) after noticing a small, similarly shaped bottle at the Fancy Food Show in New York. I furiously snapped pictures and sent them off to our consultants on a Friday. By Monday we decided to go with it. It has since made our brand stand out from others on store shelves.
a dollar per bottle supports rainforest protection
There were plenty more ups and downs. We learned that it's tough to be first to market with something unique. When we launched we were lucky if one out of 10 people was familiar with açaí, even in cosmopolitan, health-conscious cities. To get the word out, we drove around Los Angeles hot spots with a picture of açaí berries and the phonetic spelling (ah-sigh-EE) on our Prius.
We also wanted our business to be green. I was sick of greenwashing and false cause marketing, which usually consisted of companies making vague claims about donating "a portion of the proceeds" to charity. From the beginning we made a commitment to donate $1 from every bottle sold back to help fund Sambazon's nonprofit sustainable-farming project meant to protect the Brazilian rainforest. We did this despite the fact we weren't going to see any profits for a while. This was a first for an alcohol company. A dollar might not sounds like a lot until you realize how many bottles we could potentially sell—$1 per bottle is over 10% of our profits per bottle.
My biggest takeaway from all this: Don't try to do everything at once. It's admirable but often not feasible. After initially being overwhelmed by everything we wanted to be as a brand, we took a step back and realized that you don't have to be everything from Day One. Consumers tend to give you credit for "progress" as long as your efforts are genuine. So will investors—we've now raised a total of more than $5 million from angels.
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Senin, 25 Mei 2009
Guitars for rock gods
Link of the day - I will pay you $25, if you come up with a cool domain name for me.
http://www.guitar-emporium.com/
In Jimmy Brown's business, he never knows who - or what - is going to walk through the door. He fondly remembers many of the instruments that have found their way to his Louisville store, Guitar Emporium, over the years: a 1929 acoustic Martin 00-45, a 1954 sunburst Fender Stratocaster with a rare form-fitting case, a 1958 Gibson ES-355 with an original stop tailpiece and a 1959 Cherry Sunburst Gibson Les Paul, to name just a few.
"I may not always be able to remember who bought what," he says. "But I never forget the guitars."
Brown, 54, also remembers how he got his start. Already a guitarist with a talent for repair work at 15, he saved money from cutting lawns - $3 a yard - and bought a Gibson Les Paul SG Junior. That same day he showed his purchase to a friend, who offered him $150 for it.
"I made $75 in an afternoon. That was a valuable lesson for me as a businessman," he says.
But he got his real start after a buddy called with a special request: Neil Young was performing in town and needed an early-'60s Gibson. Unfortunately, Brown didn't have what Young wanted, but that brush with fame gave him an idea. He could buy vintage guitars at yard sales and local stores, then restore and sell them to rock stars passing through Louisville. "It was a totally different world before the Internet," he says. "I could find great deals, because the average person might have an old guitar but no idea how to connect with a rock band to sell it."
Still a teen, he had a pretty savvy business plan: After he acquired a few quality guitars that could fetch several thousand dollars, his mother would drive him to concert halls during sound check. He'd knock on the loading dock entrance and ask to show his wares to the road manager; more often than not he'd get invited backstage to sell his instruments to such guitar gods as Keith Richards (a pair of Gibson acoustics: a 1940s L-5 Archtop and an L-1 flattop from the '20s), Eric Clapton (a 1959 Epiphone Coronet electric) and Pete Townshend (a 1960s Epiphone Texan flattop acoustic).
"I've been in business since 1975," he says. "You name them, I probably met them."
That same year Brown became a partner at Guitar Emporium, which a friend had recently opened. Instead of injecting capital, he provided the inventory and customers. A year later he borrowed money from his father and bought his partner out. He played nights in a band, worked days at the store and attended the University of Louisville in between. By the late '70s the business was thriving, but Brown admits he nearly lost it all because of his "rock 'n' roll lifestyle."
"I saw that movie Almost Famous and I thought, 'That was my life story,' " he says. "I could tell you stories from those days that would make your hair curl."
By 1986 Brown had cleaned up his act, dedicated himself to Guitar Emporium and graduated from the University of Louisville with a degree in business. "I always thought guitars were something to do until I finished school," he says. "But college taught me that all I wanted to do was what I was already doing."
Today his business has grown into a 5,000-square-foot store with eight employees, annual revenues that range from $1 million to $3 million and a full array of instruments, including basses, mandolins, banjos and ukuleles. Though sales of high-end collectible guitars have slowed as a result of the downturn, Brown isn't worried. He's been through highs and lows before.
"People may not have money to buy the collectibles right now, but we're selling other guitars," he says. "You hold on to the investment pieces until people have the money for those purchases again."
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http://www.guitar-emporium.com/
In Jimmy Brown's business, he never knows who - or what - is going to walk through the door. He fondly remembers many of the instruments that have found their way to his Louisville store, Guitar Emporium, over the years: a 1929 acoustic Martin 00-45, a 1954 sunburst Fender Stratocaster with a rare form-fitting case, a 1958 Gibson ES-355 with an original stop tailpiece and a 1959 Cherry Sunburst Gibson Les Paul, to name just a few.
"I may not always be able to remember who bought what," he says. "But I never forget the guitars."
Brown, 54, also remembers how he got his start. Already a guitarist with a talent for repair work at 15, he saved money from cutting lawns - $3 a yard - and bought a Gibson Les Paul SG Junior. That same day he showed his purchase to a friend, who offered him $150 for it.
"I made $75 in an afternoon. That was a valuable lesson for me as a businessman," he says.
But he got his real start after a buddy called with a special request: Neil Young was performing in town and needed an early-'60s Gibson. Unfortunately, Brown didn't have what Young wanted, but that brush with fame gave him an idea. He could buy vintage guitars at yard sales and local stores, then restore and sell them to rock stars passing through Louisville. "It was a totally different world before the Internet," he says. "I could find great deals, because the average person might have an old guitar but no idea how to connect with a rock band to sell it."
Still a teen, he had a pretty savvy business plan: After he acquired a few quality guitars that could fetch several thousand dollars, his mother would drive him to concert halls during sound check. He'd knock on the loading dock entrance and ask to show his wares to the road manager; more often than not he'd get invited backstage to sell his instruments to such guitar gods as Keith Richards (a pair of Gibson acoustics: a 1940s L-5 Archtop and an L-1 flattop from the '20s), Eric Clapton (a 1959 Epiphone Coronet electric) and Pete Townshend (a 1960s Epiphone Texan flattop acoustic).
"I've been in business since 1975," he says. "You name them, I probably met them."
That same year Brown became a partner at Guitar Emporium, which a friend had recently opened. Instead of injecting capital, he provided the inventory and customers. A year later he borrowed money from his father and bought his partner out. He played nights in a band, worked days at the store and attended the University of Louisville in between. By the late '70s the business was thriving, but Brown admits he nearly lost it all because of his "rock 'n' roll lifestyle."
"I saw that movie Almost Famous and I thought, 'That was my life story,' " he says. "I could tell you stories from those days that would make your hair curl."
By 1986 Brown had cleaned up his act, dedicated himself to Guitar Emporium and graduated from the University of Louisville with a degree in business. "I always thought guitars were something to do until I finished school," he says. "But college taught me that all I wanted to do was what I was already doing."
Today his business has grown into a 5,000-square-foot store with eight employees, annual revenues that range from $1 million to $3 million and a full array of instruments, including basses, mandolins, banjos and ukuleles. Though sales of high-end collectible guitars have slowed as a result of the downturn, Brown isn't worried. He's been through highs and lows before.
"People may not have money to buy the collectibles right now, but we're selling other guitars," he says. "You hold on to the investment pieces until people have the money for those purchases again."
ShortTask.Com Success Story
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Sabtu, 23 Mei 2009
Joke review boosts T-shirt sales 2300% on Amazon.Com
Link of the day - I will pay you $25, if you come up with a cool domain name for me.
A T-shirt has become one of the most popular items sold by online retailer Amazon in the past few weeks.
Sales of the kitsch Three Wolf Moon T-shirt shot up 2,300% after a spate of ironic reviews went viral.
The first review gave the shirt five stars, saying it "Fits my girthy frame, has wolves on it, attracts women" but "cannot see wolves with arms crossed".
That prompted hundreds of others to post frivolous reviews, turning the page into an internet phenomenon.
"When I put this T-shirt on for the first time, my wife left me! Thank you, Three Wolf Moon T-Shirt," wrote one wag, while another said that "the Three Wolf Moon T-Shirt gave me a +10 resistance to energy attacks, +8 Strength... and I have successfully solved 7 crimes in my city".
Amazon's senior manager of community content, Russell Dicker, said the T-shirt was currently the top selling item in their clothing store.
"The Three Wolf Moon T-Shirt recently moved up 2,300% in sales rank," he said. "We are grateful that our reviewers are so passionate."
Publicity shy
However, the firm which actually makes the T-shirt appeared less than pleased at some of the comments.
"The Mountain is a wholesale company and does not sell shirts on Amazon, so this viral assault went under our radar until the shirt made it into the top 10 in the Amazon apparel section," they said in a posting on the Amazon site.
"We appreciate humour as much as the next company, but we don't approve of some of the remarks.
"Not everyone can start out at the top and not everyone from our neck of the woods lives in a trailer or cruises Walmart to hook up."
However, speaking on Radio Five Live, the firms art director - Michael McGloin - said the firm were actually rather pleased with the publicity.
"We'll take ironic fashion any day.... and we're printing another 400,000 more t-shirts...it's just a fantastic thing," he said.
This is not the first time comedy reviews on Amazon have gone viral. In 2006, there were more than a thousand reviews for Tuscan Whole Milk.
They ranged from soap opera-style script - "That was when I knew. He was tired of this life with me, tired of bringing home the Tuscan Whole Milk, 1 Gallon, 128 fl oz" - to stating the obvious: "Has anyone else tried pouring this stuff over dry cereal? A-W-E-S-O-M-E!"
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A T-shirt has become one of the most popular items sold by online retailer Amazon in the past few weeks.
Sales of the kitsch Three Wolf Moon T-shirt shot up 2,300% after a spate of ironic reviews went viral.
The first review gave the shirt five stars, saying it "Fits my girthy frame, has wolves on it, attracts women" but "cannot see wolves with arms crossed".
That prompted hundreds of others to post frivolous reviews, turning the page into an internet phenomenon.
"When I put this T-shirt on for the first time, my wife left me! Thank you, Three Wolf Moon T-Shirt," wrote one wag, while another said that "the Three Wolf Moon T-Shirt gave me a +10 resistance to energy attacks, +8 Strength... and I have successfully solved 7 crimes in my city".
Amazon's senior manager of community content, Russell Dicker, said the T-shirt was currently the top selling item in their clothing store.
"The Three Wolf Moon T-Shirt recently moved up 2,300% in sales rank," he said. "We are grateful that our reviewers are so passionate."
Publicity shy
However, the firm which actually makes the T-shirt appeared less than pleased at some of the comments.
"The Mountain is a wholesale company and does not sell shirts on Amazon, so this viral assault went under our radar until the shirt made it into the top 10 in the Amazon apparel section," they said in a posting on the Amazon site.
"We appreciate humour as much as the next company, but we don't approve of some of the remarks.
"Not everyone can start out at the top and not everyone from our neck of the woods lives in a trailer or cruises Walmart to hook up."
However, speaking on Radio Five Live, the firms art director - Michael McGloin - said the firm were actually rather pleased with the publicity.
"We'll take ironic fashion any day.... and we're printing another 400,000 more t-shirts...it's just a fantastic thing," he said.
This is not the first time comedy reviews on Amazon have gone viral. In 2006, there were more than a thousand reviews for Tuscan Whole Milk.
They ranged from soap opera-style script - "That was when I knew. He was tired of this life with me, tired of bringing home the Tuscan Whole Milk, 1 Gallon, 128 fl oz" - to stating the obvious: "Has anyone else tried pouring this stuff over dry cereal? A-W-E-S-O-M-E!"
Online Coupon Sites Thriving
Crazy Business Ideas - WeShootBottles.Com
How the man in a van outsmarted Microsoft
As thrifty customers turn to secondhand goods, resale stores are profiting from the recession.
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