Today's Question: The Ford Motor Company manufactured 1 million cars for the first time in 1922. In what year did it hit the 2 million mark?
Question on 5/5/10: What were Kleenex tissues marketed as when they were first introduced in 1924?
Answer: Kleenex tissues were originally marketed as a cold cream remover. By promoting it as a cleaner, healthier alternative to towels and handkerchiefs forremoving cosmetics, it quickly became a mainstay in households across the nation.
In 1927, the company's head researcher started using the tissues in place of a handkerchief for his hay fever. It took him 3 years to convince the head of advertising to try to market the tissues for this use. And by late 1930, the use of Kleenex tissues as a handkerchief substitute really took off.
The lesson here is that your products and services may satisfy customers in ways you might not know and never intended. It's interesting that it took Kleenex 3 years before it tried advertising the product for the new use. Don't be afraid to experiment in order to find breakthrough products and services.
Last week, a NY company, ATK GASL, received a $1 million grant from ARPA-E, the Advanced Research Projects Agency Energy.
The grant was given to help the company figure out ways to minimize the amount of greenhouse gases emitted from burning coal.
If successful, the company will supply their findings to the government, and commercialize it to generate significant profits.
ARPA-E is a U.S. Energy Department spinoff of the Department of Defense's Advanced Research Projects Agency, which studies new military technology.
The Department of Defense is one of 25 federal grant-making agencies that fund new and existing businesses via grants. Other agencies include the Department of Agriculture, Department of Commerce, and the Department of Education among others.
To learn more about grant funding and how to get it for your business, download Growthink's Step-by-Step Guide to Raising Capital for Your Business from Grants here.
What were Kleenex tissues marketed as when they were first introduced in 1924?
Series B funding, as you may recall, is the 2nd institutional round of equity funding that a company receives.
Typically a Series B financing event will raise $5 to $10 million for the company. But this is just a guide, and many companies raise less or more than this amount.
Like Amonix who designs and manufacturers concentrated photovoltaic solar power systems.
Last week Amonix raised a $129.4 million Series B financing round - this is the biggest Series B round I've seen in a long time. The round was led by the VC firm Kleiner, Perkins, Caufield & Byers. Other participants in the round included Adams Street Partners, Angeleno Group, PCG Clean Energy & Technology Fund, Vedanta Capital LP, New Silk Route, The Westly Group, and current investor MissionPoint Capital Partners.
A few notes to point out:
1. $129.4 million - yes, that's a LOT of money. There is a ton of financing waiting for the right companies. So yes, even in this economy, venture capital financing IS readily available.
2. The round was "led" by one VC firm. The "lead" VC firm creates the terms of the deal. They also invest the most money. The other investors are called "syndicate investors" or "co-investors" and invest at the same terms as the lead investor, so you only need to negotiate once. Having multiple VC firms participating in a venture capital financing event is common.
3. The "current investor" means the investor who provided the previous round of funding (Series A). Oftentimes, as happened in this case, that investor will put in more money to retain their share of the company's equity.
If you are seeking venture capital financing, I not only lay out the exact proven path you should take, but educate you on every detail you need to know in my Step-By-Step Guide to Raising Venture Capital.
Click here to learn more.
After my column a few months ago regarding Jeff Bezos' now famous (and incredibly profitable) investment into Google in 1998, I was deluged with comments and opinions on this question - was his investment luck or was it foresight?
The backdrop again: In 1998 when Larry Page's and Sergey Brin's Google offices were a Menlo Park, California garage - Bezos invested $250,000 of personal funds into the fledgling search engine.
When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. At Google's IPO that represented a stock share position worth over $280 million!
While Bezos does not disclose how many of those shares he still holds, at the current price of Google stock they would represent an investment position of over $1.5 billion.
So was it luck? Or foresight?
In Bezos' words, "There was no business plan. They had a vision. It was a customer-focused point of view." And more tellingly he adds, "I just fell in love with Larry and Sergey."
So whether luck or foresight, this is a wow story of the first order. Lessons learned:
1. Think Long Term. Even though Google has been the fastest rocket ship growth company in the history of capitalism, it was still SIX YEARS from Bezos' investment in the company to liquidity.
2. Get In Early. Sure, it would have been great to get into Google at its IPO price of $85/share, especially as the shares are up over 535% since then. But Bezos got in, after adjusting for stock splits, at EIGHT CENTS PER SHARE!
Talk about leverage. That translates to a 112,000 percent increase from investment to IPO, and then if he held onto the shares for another 535% on top of that.
3. Invest in People. At the time of Bezos' investment, there were a large number of very well-funded and far more successful search engines already on the market. Remember this was 1998 not 1994. Yahoo. Alta Vista. Lycos. Excite. Looksmart. Webcrawler. Infoseek. Inktomi and GoTo to name just a few.
But Bezos was attracted to Page and Brin as people, as technologists, as leaders. And obviously their customer-centric focus really tracked the way that Bezos looks at the world.
4. Take a Shot. For every Jeff Bezos who invested in Google, there are stories of literally dozens of investors that were presented with the opportunity and did not.
This of course does not mean that the probability of any startup having Google-like success is anything but very low, but it does mean that it is far greater than the ZERO percent likelihood of success of those who don't even try.
5. Get Lucky. Yes, luck is a key, and sometimes the key, variable in entrepreneurship and business. As opposed to fighting or getting philosophical re this reality, a far better question to ask is, "How can I improve my likelihood of, for lack of a better turn of phrase, getting lucky?"
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Unbeknownst to most of us, last week was Digital Detox Week.
Digital Detox Week, conceived by Adbusters.org, had the goal of getting people to decrease their reliance on electronics and technology for a week.
The goal was to get people to slow down, to take a walk outside, and to get reconnected with their friends and families.
I found the concept really interesting.
I didn't fully detox, but I did spend a little less time in front of the computer.
And I replaced it with a little more time on the telephone (my office line which I guess is less "digital" than my mobile phone).
And I used the phone to connect with my people. I spoke with clients, partners, friends and others.
And I mostly listened. Since I learned a while back that I don't learn much from listening to my own voice. But when I ask good questions and just listen, I gain great knowledge.
I think everyone can use a detox week or a detox day. I'm not saying to commit the whole week or day to being offline, but just take some time to really think about what you want to achieve in life, and who you want to be around you when you do.
I got yelled at the other morning.
Let me explain what happened.
On Thursday morning, I dropped my son off at school early for orchestra practice.
Now, every time I drop him off, while he's getting out of the car, I shout something at him.
Like - "hey, tell that girl you like her" (while pointing at the girl) or tell that boy you like his shirt.
Well, right before my son left the car that morning he yelled at me. "Dad - stop shouting things at me when I get out of the car. It's embarrassing...."
So, I didn't do it. (and note that I never do it loud enough so that the others will hear).
But let me tell you why I do it.
To begin, for some reason, it cracks me up to do it. I guess that's not really nice, but I find it funny....
But more importantly, I was a bit shy as a kid. Not terribly shy, but I wouldn't have been the first person to go up to someone I didn't really know and say hi, especially not to a girl.
So, I want my son to avoid this shyness. Since it's not a good thing. To be really successful in life, you have to be able to network to meet others, and not be afraid to approach others.
And to be successful in life, you must go outside of your comfort zone. You must try things that might end in failure. You must do things that you know are right, even if they make you feel a bit uneasy.
Almost always, the fear dissipates right away. The fear of asking a girl or boy on a date. The fear of asking an investor for a meeting or money. The fear of calling a company who could become a potential joint venture partner. The fear of starting a new venture, and/or quitting your job to do so.
All of these things could have incredible results, but could also result in rejection or failure.
Without risk there often is no reward.
So I think all of us need to get out of our comfort zone more and take risks.
And be glad that you're not my son and get daily training on how to take risks :)
PS My daughter's only 7, so I take it easy on her...
PPS I will be releasing my Leadership Course this week. Most entrepreneurs don't lead the right way. And as a result they don't achieve the success that other entrepreneurs do.
The vast majority of the course will keep you within your comfort zone; you'll just learn the unique techniques that work wonders.
I believe this course will launch the successful entrepreneurial careers of many of you. So stay tuned.
One of the interesting benefits of my job helping entrepreneurs is that lots of old friends get in touch with me.
That may sound strange to you, but what I mean is that people that I knew from "past" lives, like high school, college, old jobs, etc. constantly contact me.
Lots of them hear about what I do from mutual friends, and the next thing I know, I'm getting emails, phone calls, LinkedIn requests, Facebook messages and so on.
The contact me because they want to become successful entrepreneurs.
In fact, according to The Kauffman Institute, 500,000 new companies are conceived each month in the US alone.
It turns out, people that I have known in past lives, are overly represented in this group : )
But that's a good thing. It's great to reconnect, and I love helping entrepreneurs succeed.
The first questions most of these entrepreneurs asks me is often about developing their business plan.
Which is a good thing. Since the word has finally gotten around that developing your business plan is the first and most important thing that an entrepreneur must do.
But, as I learned, while developing their business plans is often the first thing they START, it often goes unfinished.
And from conversation after conversation, I've found this is because most people simply don't know what to include in their business plan.
As a result, it's really hard to put pen to paper.
It's like telling an artist to paint a picture when they haven't the foggiest idea what to paint.
Or worse yet, when they have multiple ideas in their head and try to get them all in the one painting.
And that is the key issue that plagues entrepreneurs when developing their plans -- trying to include too much information...trying to cram every conceivable aspect of their business, and every idea into their plan.
Rather, your business plan does NOT have to answer every question.
In fact, there are 2 questions that trump the rest. These questions are as follows:
1. Why is there a need for your business?
Mainly, you need to explain why customers need what you will be offering them. At the end of the day, it's your customers that will dictate your success.
2. Why will you succeed?
We all know that business ideas are a dime a dozen. What is it about your idea, about you as an entrepreneur, about your marketing plans, etc., that will enable you to succeed while other ventures fail.
At the end of the day, your business plan MUST answer these two questions clearly.
Sure, there are lots of other key points you need to make, but these two trump the rest.
One of the reasons I put together Growthink's Ultimate Business Plan Template was to guide entrepreneurs through creating their business plans quickly and easily.
One of the keys to its success is that it guides you through only the questions that matter, that you MUST answer in your plan.
And it avoids all the superfluous information that doesn't really matter (and which dramatically slows down the creation of your plan).
To download your copy of Growthink's Ultimate Business Plan Template, and finish your business plan in hours, and not months (or never), click here.
Last weekend, I took a class.
There was something I needed to learn how to do. And I woke up early on Sunday morning to learn it.
You'll probably think what I'm learning is sort of strange. Because in many ways it is.
What I'm learning how to do.... is to run.
Now, I've run many miles in my life. I was a college wrestler and part of staying in shape during and off-season was running.
But, after years and years of running, it has taken a toll on my feet, my knees and my back.
And a couple months ago, when I was vacationing in Florida, I met an interesting guy who told me about a new type of running called The Pose Method.
Now, I'm not going to get into what The POSE Method is (for those of you who are interested, go to http://www.posetech.com), but there are some things I'd like to share with you.
To begin, the gentleman who convinced me to take his POSE course did so by doing two things. First, he told me about the 200 mile race he ran. 200 miles - wow! that's really impressive. So, that gave me proof that the method works. Second, and more importantly to me, was that he spoke about The POSE Method with such amazing enthusiasm.
You just can't fake that kind of enthusiasm. He was such a believer and his beliefs were contagious.
So those are the two marketing lessons -- offer proof and sell with enthusiasm. At least if you want to sell me something.
The other key lesson in this story is that learning The POSE Method is HARD.
It's probably going to take me 7 to 10 months to learn it correctly. You see, I have to unlearn the way I've run for the past 30 years, and learn a very different way.
And, to tell you the truth, I'm not really enjoying it. When I run, I usually listen to my iPod and don't think at all about my technique.
Now, I'm 100% focused on technique and it's a bit frustrating as it's hard and I am constantly making mistakes.
But, and here's the key -- after I invest 7 or so months learning the new method, I'm going to reap the benefits for the rest of my life.
You see, there are 60 and 70 year olds running marathons and ultra-marathons (typically 100+ mile races) using The Pose Method.
And it should eliminate my foot, knee and lower back problems.
So, take a look at where you want to be in 1 year, 5 years, 10 years and beyond. And think about what skills you need to get there.
Attaining these skills is often hard work, and not always so fun, but they're critical to your long-term success and happiness.
(Below are some images of me running before and after I learned The Pose Method:)
This week, the 10th annual Rice University Business Plan Competition kicked off. Last year, winners took home $800,000 in funding.
This year, competition winners will take home $1 million in funding, including $385,000 that will go to the competition's winner.
Business plan competitions are one of many overlooked sources of funding for new and growing businesses.
If you are comfortable with your business plan, seek out local business plan competitions in order to raise capital (you will also meet a lot of quality people at these events who may become advisors, partners, employees, etc.).
Importantly business plan competitions are just one of 28 unique sources of funding presented in Growthink's Definitive Guide to Creative & Alternative Financing Sources.
As many successful entrepreneurs have learned, tapping creative and alternative funding sources is often the easiest and quickest way to raise capital. This is because they are less competitive (because they are less known) than traditional financing sources.
Download Growthink's Definitive Guide to Creative & Alternative Financing Sources today to find the funding sources you probably didn't even know existed.