MO.com

Jul27

Intellectual Property. Can You Use It?

Dr. Greg Bier

University of Missouri College of Business

Ph.D., Associate Teaching Professor

http://www.MO.com/Greg-Bier

Who would think an entrepreneur could get in trouble so quickly? But you can. The key is to know what is your property and what isn’t. Do you know when a patent, a trademark, a copyright, or a service mark are appropriate? These can be complicated, but are used to protect property, intellectual property. The issues surrounding intellectual property keep a lot of good (?) lawyers employed. However, with a bit of effort an entrepreneur can protect what is their legitimate intellectual property and prevent others from using it. This can take time and money and perhaps a trip to seek legal counsel.

Intellectual property often gives an entrepreneur a competitive advantage. Protecting your brand name, logo, artwork, formulas, etc can build barriers to market entry for your competition. Protecting these can also maintain the value of your company. The center of all this is the U.S. Patent and Trademark Office [USPTO.gov], another free government resource.

At the USPTO.gov website an entrepreneur can start by searching for possible business or product names to ensure they are not already in use. For example, there is no reason to name your product “IPOD.” A quick search through the Trademark Electronic Search System [http://tess2.uspto.gov/bin/gate.exe] shows that Apple Inc filed a protection application June 22, 2005. The name was finally registered July 20, 2010. Before choosing a product or company name a search through the USPTO office would be advisable.

Thinking of establishing a great taco stand? Better not name it “Taco Bell” or offer “Big Bell Value Menus”. Taco Bell has both trademark and service mark protection. There are 4,601 trademark documents relating to “taco” alone! Big Bell Value Menu is protected…but you can have a “value menu”. So what’s the difference between a trademark, a service mark, a patent, and a copyright? According to the USPTO:

Trademarks include any word, name, symbol, or device, or any combination, used, or intended to be used in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others, and to indicate the source of the goods.
Service marks (are a specialized type of trademark) include any word, name, symbol, device, or any combination, used, or intended to be used, in commerce, to identify and distinguish the services of one provider from services provided by others, and to indicate the source of the services.
Copyrights protect literary, artistic, and musical works. [copyright.gov]
Patents protect inventions, and improvements to existing inventions.

These are the tools to protect your intellectual property. But why bother? New (and existing) entrepreneurs often don’t have the resources to fight intellectual property issues. So make sure what you are using…can indeed be yours.

In Columbia, Missouri we have a fantastic music/jazz club called The Blue Note. The Blue Note was started by Richard King in 1980. In 1985 the Bensusan Restaurant Corporation applied for and successfully registered the name, “The Blue Note”, for their New York based jazz club. In 1993 Mr. King got a letter from the Bensusan Restaurant Corporation asking him to refrain from using the name, “The Blue Note”. Mr. King disagreed and nothing happened in the name dispute until 1996 when King established a Blue Note website. Bensusan brought legal action against Mr. King’s The Blue Note for trademark infringement (Bensusan Restaurant Corporation v King 126 F.3d 25 (2d Cir. 1997)). However, after a significant legal battle the case by Bensusan Restaurant Corporation was dismissed [http://itlaw.wikia.com/wiki/Bensusan_v._King]. The logic behind the dismissal of the trademark dispute has a significant impact on entrepreneurs today. Without all the legalese, the case came down to market niche, Mr. King’s local Columbia, Missouri jazz club was not competing against the Blue Note in New York. Even with a web site with world-wide view-ability it was clear that Mr. King’s audience was Columbia, Missouri.

It can cost a significant amount of time and money to settle a legal issue that could have been resolved at the business planning stage. Ensure that what you use, names, brands, logos, etc can be used…then protect this intellectual property appropriately. Also, just because a domain name is available doesn’t mean that it can necessarily be used as your company name. It would pay to check and see if the name is already someone else’s intellectual property even though the domain name is available. It’s easy…the government will help you do it [http://www.uspto.gov/teas/eTEASpageA.htm]. How often have you heard that before?

Image: prozac74

Jul26

5 Comments

“It is simply what you would have if you were to dream up your best possible get together with your best friends.”

dk - Dr. David Klein

purpose inc and thinktank

Founder

http://www.purposeinc.com

Interview by Mike Sullivan of Sully’s Blog

dk whose full name is Dr. David Klein, is one of the most well connected individuals in the Internet industry. In addition to being an Internet entrepreneur and founder of Purpose Inc. dk is also chiropractor in La Jolla, California. Purpose Inc. has always had as its motto, to help others achieve their purpose. dk’s bio includes having been a professional skim boarder, a lifeguard in Laguna Beach, as well as far as he can tell, the second chiropractor to ever be on staff at a medical school which was UCSD. He is responsible for some of the Internet industry’s most successful events including the annual poker tournament at Pubcon and the Purpose Inc. thinktank along with an impressive list of business contacts. He has done things as diverse as helping facebook with marketing their advertising product, helping Azoogle with public relations, set up national facebook campaigns, and monetize an e-mail list of close to a million people.

thinktank is an invite only event for the top people in the Internet industry. This includes domainers, entrepreneurs, site owners, SEO experts, marketers, programmers, and more. Many of the top players attend this event. This year’s Think Tank event sold out before it even officially was promoted for sale. The event kicks off on September 17, in Del Mar, California.

MO:

With your background as a chiropractor, successful practice and experience in treating patients, how did you get so heavily involved in the Internet?

dk:

It started with a simple message to help humanity. I had written what I consider to be the easiest to understand materials ever written about what chiropractic is and how it works. Chiropractic is one of the greatest secrets that only about 5% of the population have any idea about. If someone understands the simplicity of chiropractic, their life can be made immeasurably better, but most people did not, and many still do not understand it. This started a long journey about literally having to learn the Internet from html and css, right up to the most sophisticated SEO, and mass networking skills to create massive links to the site.

MO:

What are some of the things you and Purposeinc do to help businesses acquire new customers?

dk:

We are really, really good at reputation management. Very simply if someone googles your product, or name, and you don’t like the way the results look, contact us and we can help. Amazingly, we can do it without violating any of google’s T.O.S. with absolute confidentiality. We can also help with Facebook Advertising, and have done this for many companies. One of my favorite games that I have been playing lately, is helping companies with large lists of e-mails, figure out how to maximize the monetization of those lists.

MO:

thinktank appears to be a massively successful collection of the top names in the Internet industry. The “Who is coming to thinktank” list on Purposeinc.com touts some impressive names. When did Think Tank start, and how did the idea originate?

dk:

This is the third year. It started from the fact that me an the other hot shots would stand around networking in crappy places like halls of convention centers, and uncomfortable lobbies of mediocre hotels. Often I would be standing for hours with a bunch of millionaires with no food, and nowhere to sit. None of us ever go to the sessions unless we are speaking. I basically got rid of all the parts of conferences that the experts don’t like, which is the conference! What was left was what they enjoy most, beautiful setting, other experts, lots of seating, sports, open bar, great food, and fun with no one around who would judge them. It is simply what you would have if you were to dream up your best possible get together with your best friends.

Jul25

No Comments

Compete on Value NOT Price

JC Holmes

MO.com

Partner

http://www.JohnnyWednesday.com/

No one ever gets anywhere with poor customer service. How many times have you heard of a restaurant that may have had cheap food, but the service was terrible? Or shopped online only to be hassled about returns?

Even with low prices, bad customer service will brand you with a black mark comparable to the Communist blacklist of the McCarthy era, and put you on the fast tract to failure.

What should be focused on is the value a business offers their customers.

Look at zappos.com for example. Zappos is ready to bend over backward to make sure that the customer’s experience is guaranteed quality everytime. There are no hassles or risks when shopping with them because they offer free shipping, free returns, 24/7 customer service, and even a 365-day return policy.

So who cares if they might be more expensive? I know that as a customer, I will be treated right and valued so I am more than ready to give them my loyalty.

37Signals is the same way only instead of offering shoes and shirts, they offer software as a service. 37signals makes sure that they offer complete customer service and focus their marketing efforts on explaining that they are here to make life easier.

Focusing on low prices might initially seem nice for a customer, but if they get a $5 tee only to be treated like crap by your employees you can guarantee they won’t be back and they will not spread pleasant things about you.

If you focus on the customer, they will be the best employee you ever had.

Not only will they continue to buy from you, but they will also bring in their friends and family members to do the same. So don’t lower those prices to gain more customers, simply raise the value placed on your customers. If you do it, they will come.

Jul23

No Comments

Business Tools : SecondMarket

JC Holmes

MO.com

Partner

http://www.JohnnyWednesday.com/

Since Second Market came on the scene in 2004, it has provided buyers and sellers with an opportunity to buy and sell restricted securities that otherwise could not be freely traded. Over 10,000 participants coming from hedge funds, mutual funds, global financial institutions, and corporations all come to Second Market to buy and sell bankruptcy claims, asset-backed securities, limited-partnership interests, auction rate securities, and numerous other options.

In addition to creating liquidity in illiquid markets, three key components that make Second Market a great tool for an investor seeking to invest in second markets are:

that it pairs buyers and sellers
has a support team to help regulate transactions
has free data and analytics to help you with your trade

Although Second Market it a great tool for those wishing to trade, you also need to realize the risks. Second Market specializes in the trading of illiquid assets. Illiquid assets are harder to get rid of than assets on a regular market so if you make a financial investment on Second Market, be prepared to sit on it for awhile.

Also beware of imperfect information. Second Market does provide buyers with information, but remember that sellers in second markets don’t have to abide by the same disclosure laws that sellers in the main markets do. They could be leaving out information that could cost you thousands in the end.

Trading in second markets is always risky, but Second Market does make it a little easier and does provide its user with a feeling of safety. Just remember to do your research and be ready to sit on those investments for awhile. Otherwise, good luck.

Jul22

2 Comments

Is it Time to Sell Your Business?

Nathaniel Broughton

Growth Partner

President

http://www.GrowthPartner.com/

Selling a business is oftentimes a prime goal of a business owner. The “big cash out” can bring wealth, freedom, prestige and closure. It also can be one of the worst decisions you’ll ever make.
How do you know when to pull the trigger?

To begin, let’s look at the reasons why selling your site or business might come about.

You’ve worked hard, and you’re tired.

The wear and tear of launching any venture is taxing. With the Internet, “business” was redefined. I know starting a website to generate phone calls or leads has a lower barrier of entry than starting a local store. But a business is a business, and you get everything that comes with it.

After a certain amount of time, you may get tired and lose focus. 20 employees, insurance, taxes, payroll and fighting with your competitors tooth and nail – tough stuff. Even if you have a business that’s killing it, the ‘sameness’ of your day-to-day or simply a desire for a new challenge can make you weary of the current venture.

You want change.

You just got a killer offer.

Of course there’s more to it than deciding you’ll put a “For Sale” sign up and the buyers will come a chomping. Maybe things are going well, and you just got a call from an interested buyer. An offer was made. It’s for 7x your yearly profits. Killer!

Time to sell? Well, that’s when the gut-check questions start to settle in.

Do you love this business? Where’s it going, up or down? Sideways?
When there’s an offer on the table, or even not, it’s key to project out where your business is heading and the direction of your competitive market. When we sold Show-Me Tickets, an overriding reason was Brant and Brock’s negative outlook for the ticket broker industry beyond 2005. There was consolidation, VC money, competition was fierce, margins were so-so, and legal changes might disrupt the business.

The people who sell out at the top always look smart. But it can be hard to call. Bottom line is you know your business, and should always be considering where it’s going. Cashing out and moving on to something new isn’t bad thing.

Where should you spend your resources – Time, Money.

Looking at moving out of one business, and into another, involves careful consideration of your most valuable assets. Those are time, money, and talent.

Could your team do better in another industry? Do you want to cut the staff from 20 to 5, and run lean at something new? Are you happy with your day-to-day?

That last one is a big one. Many business owners will find that they have lost the love for their business. It’s partly what I mentioned above, about wanting a challenge and avoiding sameness.

You can see and hear the down-to-the-core entrepreneurs never settling for one success or dwelling on one failure, or truly ever putting their head down and ignoring the world of opportunity out there.

You want to drive a Maserati to the bar in Sao Paulo, and sip caipirinhas.

This one creeps in if you’re making big money, and don’t want the responsibility or liability of the business anymore. That, or you just got that killer offer and all you can think about is Tupac saying “I’m seeing money but baby I gotsta get mo’!”

Most business owners have a little slice of wanting to pimp it out and flash their success. Phat money can be fun. And you know, screw everybody who says that it’ll get boring after awhile. So? Then you can start another business, with all that money you just got paid. (Beware: cocaine, yachts, Las Vegas, buying domains while drinking, and bad real estate investments. Set up a separate account for that stuff.)

You have no idea how this happened, and if you can keep up the charade.

Not really joking here. A successful business or site usually takes a combo of a good idea, hard work, and timing. Sometimes timing, or luck, helps out in a big way. How did this happen? If you aren’t sure, signing those sell papers quickly and with a smile might sound like the best idea on the planet. Do it.

There’s all kinds of reasons, and thoughts that stew together into the psychology of selling a business or website. It can be irrational – just look at how scattered the list above is. But it’s your business. That’s why you started it, to be in charge and make decisions like this.

So, is it time to sell? If you’re considering it, make sure it’s for the right reasons, and remember what I said about that separate “fun” account. Keep enough for your next venture. You’ll be back and to the races again some day.

(Next time, we’ll look more into smart ways to make sure you get the most out of a sale. Two words – investment banker.)

Image: Refracted Moments™

Jul21

7 Comments

Internet Entrepreneur Elliot Silver of ElliotsBlog.com and Silver Internet Ventures

Elliot Silver

ElliotsBlog.com and Top Notch Domains

Founder

http://ElliotsBlog.com/

Interview by Mike Sullivan of Sully’s Blog

Elliot Silver is very well known and highly respected in the domain industry. Involved in domaining since 2003, Elliot stepped out of a successful corporate career at AIG in 2007 to focus on his own business of domain investment and development.

Elliot is the founder of Top Notch Domains, LLC, which he started as a grad student at NYU. Later, in 2008, he founded Silver Internet Ventures, LLC, an Internet media company that currently has several developed web properties. Elliot also leads the award winning ElliotsBlog.com, one of the most popular blogs in the domain name industry.

MO:

Stepping away from a successful corporate career is a bold move and one that every entrepreneurial mind dreams of. What was it like to do that and what steps did you take to make it happen? Did you have a backup plan? Any regrets?

Elliot:

I had been with AIG for 2.5 years, and it was just my second job after graduate school. Although I felt that I was doing well at the company, I wasn’t loving what I was doing (direct marketing management of insurance products). This was probably one of the key reasons I continued to pursue my domain business on the side. Just before I resigned in October, I had a couple of large deals lined up for the following January, and I knew just those deals could carry me for a year even if business fell off of a cliff for some reason.

I had been making significantly more money with my business than I was earning at AIG, although the domain business (as with any new venture) has much greater risk. I figured if things didn’t work out with my company for whatever reason, I could find another marketing position elsewhere after a year. I was ready to move on from AIG, and I knew the domain business would either be a stepping-stone to something else or it would be a new career for me. Luckily, things have been working out well, and I have never regretted my decision.

I come from an entrepreneurial family, and I’ve always imagined that I would work for myself. I was really lucky to have discovered this business when I did, and I am very appreciative of all the advice that has been given to me over the years.

MO:

You have quite a number of moving parts in your business such as domain buying, domain sales, domain investing, developing, blogging, and more. When you’re out at a party with the wife and someone asks “What do you do?”, how do you answer that question? What type of reaction do you receive?

Elliot:

Your question is very funny because Karen and I were just discussing this the other day.

It really depends on the crowd and the knowledge of Internet business. If I am with a tech/Internet savvy group or person, I will generally say

Jul20

No Comments

Business Incubators: Why They Rock

JC Holmes

MO.com

Partner

http://www.JohnnyWednesday.com/

In spite of the recession, many cities across the United States are implementing programs to help entrepreneurs succeed. These areas have finally realized that entrepreneurs are the key to economic recovery, and are ready to raise them up high. Entrepreneurs can now receive grants, low-interest loans, and even chances to attend business boot camps to hone their skills.

Those responsible for this interest in entrepreneurial success are the business incubators of the U.S. These programs desire to see the successful development of new companies, and offer various resources and services to entrepreneurs to ensure their success. Many cities are now sponsoring and funding or even creating these incubators with hopes of bringing new jobs and commerce to their streets.

For entrepreneurs, a business incubator will open new doors through networking. The most sought after and beneficial reward of the networking provided by an incubator is that of the mentor. Mentors can make starting a business much easier for any new entrepreneur. They will show you the ropes of your trade, teach you how to manage your operations and finances, and teach you overall how to be a better businessman or woman. Having a mentor by your side greatly reduces the number of potentially fatal mistakes you will make while starting your business.

Check out your area for local business incubators. For the entrepreneur, this is a program to take advantage of as they are well worth the time and effort that you will put into them. In fact, almost 90% of all incubator graduates stay in business, and have higher success rates with their businesses. So get on the National Business Incubation Association’s website today, and start looking for your opportunity.

Jul19

1 Comment

“… transforming the building industry by reinventing the supply chain”

Jeff Booth

BuildDirect

Founder and CEO

http://www.BuildDirect.com/

Quality Building Materials for Less

Jeff is the founder and CEO of BuildDirect. Jeff’s previous experience was in the real estate and construction business, and has been President and CEO of BuildDirect since 1999. Jeff is a frequent speaker in North America to industry groups as well as a lecturer at The University of British Columbia and Simon Fraser University in Vancouver.

BuildDirect is transforming the building industry by reinventing the supply chain. The company accomplishes this by partnering with manufacturers who benefit from outsourcing their sales infrastructure. BuildDirect has been able to reduce prices to buyers by up to 50% when compared to big box stores. BuildDirect has cut out all of the middle-men in the building materials business and passes the savings on to customers of all sizes.

MO:

First off, I want to say that I admire what you have done with BuildDirect. In a sense, you’ve built what embodies the first generation of internet business – transforming the way industries do business and leveling the playing field for customers of all sizes. You started in 1999 and have been working on this for over a decade now. In internet terms, you’re ancient (I mean that in the nicest sense!). Where did you find the inspiration, come up with the business model and how do you continue to stay relevant?

Jeff Booth:

Well first off, thanks for your admiration.

The inspiration came when I began to look at the complexity of the building materials supply chain, and began to call into question what I eventually came to see as unnecessary mark-ups within it. When I say unnecessary, I mean unnecessary to our customer at the end of the phone, or a visitor to our site.

The motivation to innovate is about seeing a better way. It’s been a long journey because any time an industry changes, there will be winners and losers. Fortunately, our customers and growth keep telling us that we’re on the right track. Re-fashioning our approach to the supply chain, simplifying it, and turning it on its head by using Internet technology to make it more cost efficient is really just a means to that end. We’ll stay relevant as long as we keep adding value like that, in whatever form that may take in the future.

MO:

I read an interesting post on your blog about using Twitter. You argue that using it symbolizes openness and trust (I am assuming trusting your employees). You don’t however mention the financial benefits. Do you think the value of such systems can/should be measured directly? What other benefits do you see in social media?

Jul18

1 Comment

Top 5 Gadgets for the International Entrepreneur

Johns Wu

MO.com

Partner

For the last couple months, I’ve been traveling internationally extensively so I wanted to share my top 5 gadgets / technologies that enhance my productivity while traveling abroad.

1) D-Link Pocket Wifi Router

By far, the most important gadget for the traveling entrepreneur. Allows you to share pricey hotel Internet connections without being billed for every MAC address you connect. I’ve used this same router for 2 years now, and never had any problems. Connections are always rock solid.

2) X-Mini II Portable Speaker

Unfortunately, my ultra-portable laptop has poor quality speakers. Watching videos and listening to music is important to me, so I always bring along my X-Mini. This speaker packs a punch and its tiny! I especially like it because It recharges using a mini-USB (just like my BlackBerry).

3) VPN / Proxy Software

An annoying thing when going abroad is that I can’t see USA targeted Google Adwords ads and SERPs are distorted. That’s why I pay for VPN / proxy services that let me tunnel back to America and surf the web as if I were still in the USA. VPN software is also helpful for watching Hulu and Netflix while abroad.

4) Android Phone or iPhone w/ Fring or Skype App

The Skype app for iPhone is extremely valuable when traveling abroad. In my experience, it works flawlessly and gives you the ability to make cheap international calls over WiFi. The last time I checked, the only way to get Skype working on Android was using the Fring app. Nevertheless, my primary phone is still a BlackBerry with international roaming / data plan because I hate touchscreen phones.

5) Belkin Mini Surge Protector + Dual USB Charger

This gadget is especially helpful in airports / lounges where power outlets are scarce. The convenience of being able to charge my BlackBerry + laptop is awesome. Plus, since there are multiple outlets, you can score easy karma points by sharing your powerstrip with other travelers.

Jul17

4 Comments

10 Reasons Your Business Will Fail

JC Holmes

MO.com

Partner

http://www.JohnnyWednesday.com/

We all know that most businesses fail within the first five years. The market is tough, and not every business has potential. With consumer needs ever changing, that revolutionary idea you have this week could be old news next week. With all this uncertainty, it’s easy to overlook some basic things that can cause your business to flop. So here it is, 10 things that if you are currently doing, you should stop doing:

You add no value: Easy, this is not a direct attack on you as a person. This only means that you are worthless if you really aren’t moving your company along or adding valued insight. If your business isn’t of value to consumers, then it is worthless. Start a business that is revolutionary; something that changes or improves a current product. Don’t start the same Joe Shmoe restaurant or retail biz, or you can guarantee failure.
You have no customers: If you are not meeting with potential clients, or seeing customers walk through your doors/ visiting your websites, then you are not making any money. Look below to see where this gets you.
You’re not making a profit: This is a no brainer. If you are not making any money, you will fail. Period.
You hate what you do: Don’t start a business that involves something you hate. That is just stupid. When you hate what you do, you are not going to spend the time and energy needed to get a business off the ground. You started a business to get away from the job, boss, and cubicle that you hated. Don’t pigeon hole yourself again.
You spend too much money: Not knowing how to spend money is one of the top reasons for business failure. If you are spending more than you are making, you are not turning a profit. Not turning a profit equals business failure. See #3 for review.
You don’t spend any money: When you are not intelligently spending money, you are often not taking risks, purchasing more merchandise, or hiring more employees. You generally spend money to gain growth (i.e. paying to get that great employee, restock shelves, redesign that website), so when you aren’t it probably means you are flat lining. Remember that saying, “you have to spend money to make money?” Well, it’s true.
You can’t delegate: You can’t do it all on your own. You will lose your mind, and waste precious time performing mindless tasks often leaving the larger, more important tasks undone. Delegation offers you the opportunity to invite new ideas to those performing tasks, while also giving you the break to focus on your business’ big picture.
You have no focus: If you can’t commit to your business, then there is not reason to start it in the first place. Owning a business takes commitment and an abundance of focus. You will have long days. You will have long hours. You will have to sacrifice. And you need focus to keep your head above water. If you can’t focus on the goals of your business, then you are most likely not giving it the time and attention it needs to succeed.
You have no mentors: If no one is willing to mentor you while you start your business, it usually means they saw the failure eons ago. A good mentor can help a business owner succeed by showing them good management and operations strategies. Without this guidance you could make potential fatal mistakes.
You are delusional: There are times when you just need to let go and call it quits. Believing that your business is going to change the world while money runs out the door and everything comes down crashing and burning around you is ridiculous. Not every business will change their niche, their consumers, or the world. Just face it. The business may not have been a good idea after all.

Image: Pho Fail

purpose inc and thinktank

ElliotsBlog.com and Top Notch Domains

BuildDirect

Impulse Communications, Inc

Aptimize

Get In Business!

Checkfront

College ACB

Super Web O Matic

Startupbootcamp

Founder of Bankaholic

Fresh Tilled Soil

Domain Name News

Growth Partner

aka Johnny Wednesday

Mizzou Business School Professor

Nathaniel Broughton

Mizzou Professor Greg Bier

MO.com is Sponsored by Name.com

Intellectual Property. Can You Use It?

“It is simply what you would have if you were to dream up your best possible get together with your best friends.”

Compete on Value NOT Price

Business Tools : SecondMarket

Is it Time to Sell Your Business?

Internet Entrepreneur Elliot Silver of ElliotsBlog.com and Silver Internet Ventures

Business Incubators: Why They Rock

“… transforming the building industry by reinventing the supply chain”

Top 5 Gadgets for the International Entrepreneur

10 Reasons Your Business Will Fail

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