May 2008

I am considering myself a business blogger - I blog all about business and entrepreneurship.

To me, business blogger bears a great responsibility.

You bluff and create a fairy tale about a business issue, your reputation is at stake, and you reader’s business decision based on your post is at stake.

You offer solution, you are a life saver to many of your readers.

This big responsibility, often, drains your energy and creativity. In my opinion, business blogging is not about ranting about business - it’s about offering solution and transmitting optimism to your readers.

I experienced the ups and downs of blogging, too. I think that motivation for a blogger is as precious as gold - embrace it while you can, and try to keep it yours :)

I understand that being a business bloggers is not easy - but for those who survives the challenge, reap the reward - in the form of reputation, money, and personal achievement.

Related to what I write here - A few days ago I’ve encountered a great guest post by Nadeesa Cabral at Darren Rowse’ ProBlogger.net - Bloggers are like Pawns on a Chessboard.

I’m hoping to write a post based on the great post as a reference, but it is too good, so I decide that you read it yourself.

Enjoy!

Ivan Widjaya
Blog to the end

Intermediaries is what middlemen do - You bridge between clients or consumers and providers or producers.

You make money by leveraging capital and margin - you buy a widget at 10 bucks. You sell it for 15 bucks. You make 5 bucks without even knowing how to make the widget and spend money for R&D.

Intermediary industry, back then, was lucrative.

Decades ago, the intermediaries industry boom - they exist in virtually anything that can make money or create business.

However, with the more common online business and the presence of Internet, intermediares are made obsolete - some say forever.

So, being an intermediary today is a bad career decision?

The Internet enable people around the world to make deal and do business easily, directly, and in real time - thus eliminating the need for middlemen a.k.a. intermediaries. The end of story?

Wrong.

If you think intermediary were made obsolete by the Internet, think again.

Even today, intermediary is still lucrative, if not as booming as decades ago. Intermediaries take new forms, evolving according to the Internet growing influence in today’s business.

Ebay kills intermediaries, because buyers can met sellers directly - wrong! In today’s online business, intermediaries are so there in the form of affiliate marketing.

Admit it - most of you doing business online are middlemen - intermediaries. You sell products on behalf of others. That’s an act of intermediary.

Another example to make my point…

Real esate was where the intermediaries make fortune - Real estate agents list clients’ real estates to sell to potential buyers in return for a small percentage of sales value.

Many say the Internet ‘kill’ the real estate intermediaries, because nowadays people can buy and sell real estates directly through the Internet - therefore, they don’t need middlemen.

Wrong again!

Even on real estate listing websites, real estate agents - both affiliated to a company or freelancing - are active to seek potential buyers and sellers. So, intermediaries are pretty much there today.

Why is this post is written

I think saying the Internet makes something obsolete is misleading - some say that the Internet also made the newspaper and the radio obsolete - not!

Yes, the Internet is great, but it is still a medium, not another different world that render every other thing obsolete.

So, as a conclusion - does today’s business intermediaries need to pack their luggage and file for bankruptcy? No! Does today’s business intermediaries need to spice their business with the Internet - especially with the presence of today’s social media? Absolutely yes!

In my opinion, the Internet presents you opportunities - not threats.

Ivan Widjaya
A Business Intermediary

Within the next few days, I’ll be gone to my new home.

To move alone is bliss, but to move a family is hassle :)

Not saying my family is troublesome, but moving with other than yourself makes you focus on their needs and wants, too. Especially if one of my family members is a 16 months old little man.

While most consider moving houses a nightmare, I consider this to be a great opportunity to start your life fresh.

I’m hoping a refreshed motivation an a refocus for my business and family plan - for entrepreneurs, family and business plans are paramount.

Family and business - You can’t work one well and su*ks the other - you have to ace both to be a real entrepreneur!

Sadly, I expect not to post here for one or two days - moving house does take a lot of time. But, if the opportunity arise, I will update you with a couple of new posts, as usual.

Keep in touch!

Ivan Widjaya
Moving houses

Here is my latest addition to my web properties portfolio - Camrosecs Link Directory.

It is a one month old directory that grow at significant rate - currently it has more than 1,100 submitted links. So, the growth rate is 30-40 new links per day - great, great potential for such a young directory.

As the name implies, the asset of Camrosecs is its submitted links. Let’s say that the current focus is building up the asset at the shortest possible time. Again, I am a noob in this - I’ll learn on the go to push the growth of Camrosecs Link Directory.

In financial perspective, this directory is not a producer - yet. In the world of independent directories, revenue doesn’t come fast.

Why I buy Camrosecs Link Directory - My investment analysis

Directories today don’t shout cash - they shout asset. Let’s say I’m buying a not-so-liquid asset that has low-moderate cash flow.

You might ask, if it’s not a money maker, why did you bother invest in it?

My answer, low-risk investment.

In my opinion, directories are the most stable, hands-free, time-tested investment on the Net.

On the down side, it’s not a great money maker - and it would stay that way later on.

On the up side, it’s like investing in a precious metal - you simply can’t go wrong with it, as long as you play ‘clean’ - especially in the eye of visitors, partners and the search engines.

What is playing ‘clean’? Directories’ strength are their purpose; For link submitters, directories help them to promote their site and expose to the directories’ visitors; For visitors, directories help them to seek anything they wish, thus making their life easier.

So, the key in owning directories - ensure the quality of submitted links, and expose the directories, so that they are easy (-er) to find.

What makes Camrosecs unique?

Camrosecs Link Directory does look similar to others.

What differ it from the other is the presence of accompanying blog.

Along with that, Camrosecs also offering free, no sign-up, no reciprocal, and fast approval listing service. A total package!

There are basically 3 type of directory growth plan:

1. The directory stays as a directory.
2. The directory will become a partial or full bidding web directory - that is, incorporating bidding for top position in a regular directory.
3. The directory will become a link-article-blog combo directory.

I envision Camorsecs Link Directory to be the number 3 - just like what the authority directory, Romow Directory, did and still doing it.

Will Camrosecs Link Directory be big? Honestly, there are chances to be one - that’s my gut feeling.

Ivan WIdjaya
A proud father of his new baby

Here I coined a new phrase for you - Paranoia Marketing :)

What is Paranoia Marketing?

 

Paranoia marketing simply means marketing to the paranoid.

Paranoid of what?

Many things that involve the following statement: “I’m afraid I’ll run out of money 5 years after I retire.” “I don’t want to open a business - it’s too risky… what if I have to handle stealing emplooyees? What if I’m pushed out of the business?” “I don’t want to eat this - I don’t see how the chef handle the hygine my food.” “I don’t want to learn to drive - I’m afraid I can handle the car and hit someone on the street.” etc. etc.

But, you get the point, right?

People are driven by the pursuit of happiness and the avoidance of all things negative. Most of the time, the latter influences you the most than the former.

Do you want a proof? Consider this -

If you offered a legit sum of money of $1 million, but you have to had your fingers cut as a trade, would you still do the deal? Most of you, I believe, will answer no.

Paranoia is driven by the avoidance of all things negative I mentioned above.

Paranoia makes you re-asess the options you have - paranoia makes you over-reactive on things.

How exactly paranoia marketing works

Paranoia marketing is to offer the paranoids a solution that ensure them to feel save and secure, more emotionally than physically.

The impulse factor is fear and worry about something, thus increasing the conversion rate. But enough talking theory. Here’s to illustrate what I meant:

For example:

 

Recession hits many people. The number 1 fear of recession hitting people is the insecurity they feel about their future, in term of finance.

 

An insurance company do a marketing campaign which message is, “Avoid recession disastrous impact on your family with our all-new health and wealth protection program that guarantee you peace of mind in difficult times.”

 

That’s, my friend, is paranoia marketing ;)

In my opinion, companies developing and deploying effective paranoia marketing will eventually ride through the recession to reap their reward.

Agreeable? Please share your opinion :)

Ivan Widjaya
Paranoia marketing

I am a firm believer that entrepreneurs can be taught, whether he/she is born with it or not.

I am my first and foremost case - I am born not as an entrepreneur. My role models were not entrepreneur. However, later in life, a few books changes my career path and orientation.

I feel that people are lucky enough to learn entrepreneurship early in life.

Some people asked, ” when is the right time to teach a child about entrepreneurship?”

Some answered, “when a child is a teenager, maybe it’s the right time.”

Some other answered, “No child is too young to learn entrepreneurship.”

I’ll answer, “As a child understand the basic concept of money, then it’s time to teach entrepreneurship.”

As I always believe and intrigue, the Internet opens up many opportunities.

Robert Kiyosaki learn entrepreneurship at 9. Many entrepreneurs learn entrepreneurship at their early teen.

The Internet opens up many possibilities

Making money is more accessible by virtually anybody with an Internet access.

Internet has created many teenpreneurs, as well as teen millionaires.

I’ve recently visited a blog - Small Fish Big Money - about everything money making online - operated by a 16 y.o. It’s, in my opinion, one of my top blogs in the blogosphere.

I’ve also dealt with an 18 y.o. British gentleman owning an online marketing company, LetMeAdvise.com making thousands of dollar a month doing coaching.

And many more examples.

How young is too young

I mentioned above - I believe someone can be taught entrepreneurship as soon as he/she understand the basic concept of money. Meaning, he/she understand that money doesn’t grow on trees :)

People would voice a disagreement on this - “C’mon… they are too young to learn such stuff… let them enjoy their childhood like other kids - doing fun stuff and be merry.”

I’ll say, “entrepreneurship IS fun! If they could learn to have fun with entrepreneurship stuff, chances are, they will enjoy a great entrepreneurship career because it’s what they enjoy doing since their childhood.”

For you entrepreneurs that have children - teach yours early will eventually help themselves… and you later on.

Take a look at Richard Branson of the Virgin empire. He teach his children to value the money they have by not spoiling them with expensive and glamourous stuff. One example, his kids fly economy class, not business class.

The Creme de la creme

Starting out right, in life, will almost guarantee a great life years to come.

If a young person doesn’t get a chance to learn the right thing about money and entrepreneurship, someday someone will teach them about it - the wrong way.

Avoid this by equipping and supporting the young men not to ‘waste’ their youth, and they shall not be wasted :)

Ivan Widjaya
Never underestimate young age

Franchising is hot. It is, in fact, hot for decades.

Why would people buy a franchise unit? What make a franchise appealing?

The number one reason people buy a franchise unit is to cut his/her way into entrepreneurship.

Yes - buying a franchise brings you a few steps ahead of other entrepreneurs. While other entrepreneurs work long hour to trial-and-error their business concepts, not mentioning the amount of resources to push their ‘baby’ to grow, franchisee unit buyers cut right to the chase into entrepreneurship ‘buying’ a proven system.

That’s why franchise units are relatively expensive to buy compared to the similar, non-franchise, counterparts - Franchisors, the brand and concept owners, take the hassle out from you in return for a sum of money, often called franchise fee.

Franchisors offer you tested and true, proven, system, including location surveys, employee training, marketing and promotional tools, etc. As long as you play by the rule and utilise the system the right way, you will likely to succeed than not.

That’s amazing! I want to buy a franchise unit right away!

Whoa! Slow down, cowboy… Perhaps you have the money to invest in a franchise unit, but buying a franchise, as well as other businesses, need some evaluations prior deciding whether to take the franchise unit or look elsewhere for better options.

What you have to know about franchising

Franchising is not easy - trust me - read my previous post about it. Please also read the Episode 1 :)

Franchising is like marriage. If you turned-off about the idea of marriage, perhaps franchising is not for you.

Believe me, many franchising ask you for a private interview before you are ‘allowed’ to own one of their unit. The current trend - they ask you about your family and/or marriage life. Some of them ask you to come with your spouse.

Why is it important?

The premise is, if you manage your family right, you can succeed managing the franchise unit.

Franchising needs teamwork and the willingness to follow franchisor rules and guidelines. Franchising needs trust and respect.

If the franchisors said that direct selling is not recommended for your unit marketing campaign or a certain location is not good for the unit, then you should listen to them - they know what they talked about. They’ve been there, you haven’t.

How to Choose the Right Franchise

Here’s some tips from my experience on how to choose the right franchise:

1. Don’t choose the franchise based on your hobby and interest
   Choose one that is unique and answer a problem in the community. Also, choose by its ability to sustain changes and its business life cycle length.
2. If your felt that you can’t work well together with the franchise’s CEO, bail out of the deal
   Chances are, if you can’t stand the franchise’s CEO style and habit, you can’t stand to work with him/her later on - not good for your franchise unit!
3. Study the financials - consider the franchise fee and royalty fee
   The first things to look into a franchise financials is: the franchise fee, the length of franchise agreement, the franchise renewal free, and the royalty fee. Thus, you can calculate your monthly ‘franchise unit ownership’ fee.
4. If you felt that the offer is too good to be true, perhaps it is too good to be true
   Franchise is not outrageously profitable - not a single franchise in my entire franchise units ownership career can achieve extraordinary results. Exceptional performance yes, but not extraordinary performance. Thus, run away from ones that offering it.
5. Study the company background - hire a detective!
   Just kidding :) My point is, you have to learn the basic company background - the established date, the ownership structure and changes, and the reputation.
6. Study the franchise’s growth plan
   A good franchise is one that have a written growth plan to share with potential franchisee. No growth plan written might mean no plan at all.
7. Does the franchise guarantee anything? Choose one that is NOT guaranteeing a certain BEP or ROI
   A franchisor might offer you a guaranteed 24/7 support, but not a guaranteed break even period (BEP) or return on investment (ROI). Nobody can guarantee you anything about it - unless you deal with fortune tellers :p
8. Have a chat with the other franchisees
   Franchisees are the most trusted source of franchise information - They won’t trick you to buy a franchise like theirs, will they?
9. Don’t choose a big name franchise
   Choose a smaller franchise with outstanding record and ‘ride the wave’ together with them. McDonalds is uber expensive, anyway.
10. Don’t choose a franchise that doesn’t even have one own unit
    The franchisor’s own unit is your benchmark and your measurement of success. If the franchise you interested in doesn’t have any, how can you benchmark or measure the potential of buying a franchise unit from them?
11. Choose a franchise that trains you, the franchisee, a lot
    Good franchisors take franchisees’ personal development seriously, because strong franchisees mean strong franchise units.
12. Pick a franchise that doesn’t allow you to improvise too much
    If your entrepreneurial spirit are freedom, no boundaries, creativity and improvisation, don’t choose franchising route - you can perform well starting up your own business. Franchising needs military-style people that can work well under a guidline.

Bottom line: You can achieve riches with franchising if you are willing to work in a family-like system that has a operating manual. If you can’t stand rules and dos-and-don’ts, don’t choose franchising.

Ivan Widjaya
The learning franchisee

Do you follow American Idol? I’m not normally watch any TV programmes, but the hype around it makes me watch the final 10, including the final 2 - the battle between the two Davids - David Archuleta and David Cook.

As it turned out today, the winner is David Cook.

The interesting fact is that throughout the final, David Archuleta, 17 y-o, mesmerises the audiences including the judges with his near-perfect singing. David Cook is also an execellent singer, but in my opinion, not as good as the other David.

The poll before the Finale said 60% to David Cook. And to many American Idol followers, the new Idol, David Cook, is rising their eyebrows.

David Archuleta aces the competition, but the winner is David Cook.

What gives?

The answer - Stage presence, charisma, PR, and loyal fans (and fan clubs)

Lessons for entrepreneur

Entrepreneurs can learn a big deal from the latest American Idol finale.

No, not how to sing like the Davids, but how to garner the attention of voters to vote for Mr. Cook.

Here’s the lessons:

• Entrepreneurs have to be good at business branding
  You throw your brand at the market saying, “best fit,” not “best quality.” There are lots of excellent quality stuffs out there, but not much fits well in the niche - and today, niche is where the money at.
• Entrepreneurs have to have the charisma - at least learn how to enhance theirs.
  Most says charisma can’t be taught - Agreed, but I believe charisma can be enhanced. You are probably not the most likable entrepreneur in your area, but you can be the most charismatic of all. And charisma turns people’s head.
• Entrepreneurs have to build a network of happy clients
  Happy clients are viral. Happy clients = the biggest and most reliable source of word-of-mouth marketing. Period.
• Believe it or not, entrepreneurs have to learn to ‘talk’ and be ready to be interviewed
  Let alone getting an interview from a well known TV host, getting an interview from small, local radio stations, can give your business a boost - be prepared for the big stage! You might say, “I wanna be myself, that’s all. I’ll say what I want.” I’ll say, “Being yourself plus a touch of marketability and professionalism is the thing that makes people falling in love with you!”
• Self procrastination and being narcisist are not good ideas, but personal branding is important for your business
  How you market yourself will impact your business as a whole. Who’s who - Donald Trump.

So, are you the next Idol? :)

Ivan Widjaya
Was not an American Idol fan, but was converted into one by word-of-mouth marketing campaign by family members :D

I have a chat or two with a member of one of the forum I involve in.

She has a brilliant idea about money making online with her blog, and later on, an offline business venture she planned with her friends.

I asked her why if she would be successful online, she still considered owning an offline, brick-and-mortar business.

I love her answer - She is trying to prove that she can be a good entrepreneur.

In fact, I am in her shoes right now. Most of us do.

Entrepreneurs are the most doubted person in the world, second to ex-convicts

Entrepreneurs are often doubted by the people surrounding them. The so-called “close friends” and “those who cares” are not only your best motivators, but also your best demotivators.

Many, if not all, entrepreneurs that I know become the successful ones because their relatives and friends doubt them. Their main driving factor: trying to prove to them that they are wrong.

“Opening a business is risky. Get a job!” “You don’t have the necessary skill. Forget about opening a business!” “Making money online? It’s a fairy tale for you!” et cetera.

Well, I said, “Thanks for the concern, but I don’t wanna hear more bulls**t from all of you. I shall prove that I can make it!” - pardon my language :P

Proving yourself is one of your best tools for success

Set aside money. Motivation drives you to success. Motivation drives money TO you.

Motivation is your business foundation - When investors see you are passionate about your business, they foresee successes ahead. This will help them decide which business to invest in.

Motivation is putting you in the spotlight - When your business network see you have the mojo, businesses start coming to you at lightning speed.

Motivation is success, and sucess is contagious - When you closest people learn that you have the fire inside of you, they start believing you and they are becoming successful themself - thanks to you.

Burn, baby, burn!

Ivan Widjaya
Hotter than the hottest