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When you hear about successful entrepreneurs, often the firstquestion that springs to mind is "How did they think ofthat?" To assuage your curiosity--and, hopefully, inspire somebig-bucks ideas of your own--we asked several successfulentrepreneurs to share the stories behind their big ideas.
Solving a problem
Entrepreneur: Robert Crespin, 35
Company name: Pigeon Control Professionals
Location: Redondo Beach, California
Year started: 1989
How it all hatched: As owner of a maintenance firm,Crespin witnessed the results of brutal bird bomb squads day in andday out. The last straw came when one client, a restaurant,received recurring pigeon gifts--all on the same window. "[Itwas] trashed," Crespin recalls.
Race for the cure: Determined to find out what makesthese feathered fiends tick, Crespin vowed to "learn thebird." "It was almost a joke when we first started,"he says, recalling attempts to scare pigeons with rubber snakes."Now we're pigeon experts." The key fact his researchuncovered: "Once pigeons find a nook, they're going toroost and poop everywhere. When one bird leaves, another comes in,because droppings attract other birds." With that knowledge,Crespin now uses screens, reflective balloons and nonharmfulrepellent to rid clients of pigeons. (His products are alsoavailable at select Los Angeles County hardware stores or byordering directly).
Soaring to new heights: Clients such as Starbucks,Arby's, The Walt Disney Co. and The Rose Bowl, plus residentialcustomers, have propelled the 20-person company's sales to $1million plus. Let's hear it for the birds.
Lesson: If you've got a problem, chances are someoneelse shares your frustration--and is willing to pay for asolution.
Process of elimination
Entrepreneurs: Todd Graves, 27, & Craig Silvey,27
Company name: Raising Cane's
Location: Baton Rouge, Louisiana
Year started: 1996
We'll have the chicken: Pals since they were partnersin a seventh-grade social studies contest, Graves and Silvey knewthey worked well together. They kept in contact while attendingdifferent universities, and decided if they ever started abusiness, it had to be a team effort. But what business? They chosea chicken fingers-only restaurant. "It was a simple system wecould master--it wasn't an extensive menu," says Graves oftheir decision to focus on the bar and restaurant favorites."We knew that would make everything easier, from ordering totraining employees."
Plus, jokes Silvey, "Todd's obsessed with [chickenfingers]. He eats them every night."
Socially acceptable: "We went to banks and[basically got] laughed at," says Silvey. So the buddies gotjobs on an Alaskan fishing boat to save up for start-up. By thetime their first drive-thru/dine-in location was a success, bankswere lining up to offer loans for the second, also in Baton Rouge.What convinced the pair their plan would work when banks didn'tbelieve? Their inside knowledge that "students are alwayseating at all times of the day," according to Graves.
Success to-go: The two Raising Cane's locationsemploy 70 people and should gross well over $2 million this year,thanks to the restaurants' late-night hours (until 3 p.m. fournights a week, and midnight the rest of the week) and BatonRouge-area students who don't cook.
Lesson: Know you want to start a business, but don'tknow what business to start? Assess your market's needs andyour needs until you find a match.
Filling a niche
Entrepreneur: Brad Barnhorn, 32
Company name: Fantasia Fresh Juice Co.
Location: Rosemont, Illinois
Year started: 1998
The time was ripe: Hanging out in Cincinnati late oneAugust night, Barnhorn listened as pal David Chung mulled ways tomake extra cash while writing a screenplay. "Maybe I shouldsqueeze juice or something," Chung mused. ("You know howartists are," shrugs Barnhorn of the rationale behind theremark.) The offhand comment led to deeper discussion becauseBarnhorn, who worked for a California food and beverageconsultancy, had seen the popularity of fresh juices on the WestCoast. "We pulled out a napkin and scribbled numbers about howmany oranges it takes to squeeze a pint of orange juice,"remembers Barnhorn. A later-night trip to a local supermarket wherethey begged an employee to reveal the in-house juicing machinefollowed.
Dime a dozen: Barnhorn and Chung (who has since left thecompany to go back to his screenplays) picked the Midwest as marketof choice for their fresh-squeezed juice. "If we began on theWest or East Coast, we wouldn't be adding anything new,"explains Barnhorn. The Midwestern natives also relished theopportunity to bring something "nourishing" to theregion.
Not a lemon: With its only sizable competition a juicecompany that ships product from the West Coast, it's no wonderFantasia's stocked in 500 Midwestern stores.
Lesson: Look beyond your own backyard. Could a businessthat's hot in another part of the country (or world) fill aniche in your hometown?
Lightning strikes
Entrepreneur: Robi Fugate, 34
Company name: i do its
Location: Birmingham, Alabama
Year started: 1995
Fashion victims: As a cosmetics company coordinator, RobiFugate witnessed a slew of fashion don'ts. "I wasn'ttrying to come up with a business," she explains. "I wasjust around kids and their moms in retail, and I realized kidsnever matched." One day in 1989, a mismatched tot in a Chineserestaurant inspired a flash of inspiration: kids' clothing withno front or back and no designated inside or outside, so kids candress themselves in style.
Taking time to grow: Fugate was 23 when the lightbulbappeared, and had an investor willing to provide capital, butwasn't ready to take the plunge. "There were too manypeople willing to jump in for a percentage," she says.
Hand-stitched dreams: After sitting on the idea for sixyears, Fugate accepted the investment offer and now saves childrenfrom fashion faux pas with her clothing, available in more than 250specialty children's stores nationwide. This year i do its willreap $500,000, and Fugate plans to promote the line tospecial-needs kids with the help of nonprofit organizations.
Lesson: Make sure your flash of inspiration isn't aflash in the pan by taking time to think about and research youridea.
Got A Winner?
Not all ideas are created equal. To assess the potential of anidea for a new business or product, ask yourself thesequestions:
- Have you considered all the advantages or benefits of the idea?Is there a real need for it?
- Have you pinpointed the exact problems or difficulties youridea is expected to solve?
- Is your idea an original, new concept, or is it a newcombination or adaptation?
- What immediate or short-range gains or results can beanticipated? Are the projected returns adequate?
- Are the risk factors acceptable?
- What long-range benefits can be anticipated?
- Have you checked the idea for faults or limitations?
- Are there any problems the idea might create? What are thechanges involved?
- How simple or complex will the idea's execution orimplementation be?
- Could you work out several variations of the idea? Could youoffer alternative ideas?
- Does your idea have a natural sales appeal? Is the market readyfor it? Can customers afford it? Will they buy it? Is there atiming factor?
- What, if anything, is your competition doing in this area? Canyour company be competitive?
- Have you considered the possibility of user resistance ordifficulties?
- Does your idea fill a real need, or does the need have to becreated through promotional and advertising efforts?
- How soon could the idea be put into operation?
Source: Princeton Creative Research, Princeton, New Jersey.Reprinted with permission.
10 Days And Counting
Do it now.
By Laura Tiffany
Chaotic. Exhilarating. Exhausting. Your first 10 days inbusiness will be a whirlwind of newfound responsibilities andendless errands. To help you turn this chaos into order, TerriLonier, author of Smart Strategies for Growing Your Business(John Wiley & Sons, PRICE?, 800-225-5945) offers these tips onwhat to include on your to-do list for your first 10 days.
1. Clearly state your business mission and goals, and create anoutline for your business plan.
2. Analyze your personal strengths and weaknesses to determinewhere you'll need help. Begin to put together a businessadvisory team, which may include an attorney, marketing consultantand computer consultant.
3. Name your business, and create a professional businessidentity by printing business cards and letterhead with yourlogo.
4. Register with the required local agencies, whether by filinga D.B.A. or obtaining a business license.
5. Set up your telephone and fax access with dedicated businesslines.
6. Set up an office with a computer and furniture (buying usedis the best money-saver).
7. Set up an Internet account and begin to plan a Web sitestrategy, which may include registering a domain name for yourcompany.
8. Set up a business checking account and begin to build arelationship with a banker.
9. Establish a financial management system, beginning with acomputer software program such as Quicken or Quickbooks.
10. Make sure your business is protected: Find an attorney andinsurance agent.
Finally, take a deep breath. Lonier stresses, "You want tobuild a strong foundation, but [everything] doesn't necessarilyhave to happen in the first 10 days."
Been Caught Stealing?
The legalities of trade secrets.
By Jane Bahls
Why would a rapidly growing start-up hire people away from ahuge corporation? The answer depends on who you talk to.
Las October, Wal-Mart Stores Inc., based in Bentonville,Arkansas, sued Amazon.com Inc., Drugstore.com Inc., and the venturecapital firm that funded them both and helped assemble theirmanagement teams, Kleiner Perkins Caufield & Byers of MenloPark, California. The charge? Stealing trade secrets by hiring agroup of former Wal-Mart employees with intimate knowledge of thegiant retailer's state-of-the-art computer system, which tookmore than 15 years to develop. Both firms aim to compete withWal-Mart through their internet retailing - and stand to gainenormously from what their new employees know.
"When you're building a computer system, the key isknowing which roads not to go down," says Betsy Reithemeyer orWal-Mart. "It's not just the proprietary information, butthe amount of time not spent chasing rabbits down holes." Sofar, nine of Wal-Mart's information systems employees havemoved to Amazon.com in Seattle, and six have moved to Drugstore.comin Redmond, Washington.
"We're not interested in anyone's tradesecrets," retorts Bill Curry, spokesperson for Amazon.com."We're interested in finding the brightest,hardest-working and most talented people, wherever they mightbe."
Wal-Mart is seeking a temporary restraining order on furtherrecruiting, plus an injunction against the competitors' usingproprietary information. The parties are discussing options forsettling the suit.
Jane Bahls (Jebahls@aol.com), a writer in Bexley,Ohio, specializes in legal and business issues.
Chill Out
Do entrepreneurs thrive on stress...or do you just not know howto relax? In recent survey that asked entrepreneurs what they do torelieve stress during the workday, 37 percent said,"Nothing." If you're one of them, we hereby order youto take a chill pill. Try these techniques cited by otherrespondents (personally, we're partial to lunch).
Go for a walk: 17 percent
Exercise: 7 percent
Meditate: 6 percent
Leave the office: 5 percent
Listen to music: 5 percent
Talk to others: 5 percent
Read: 4 percent
Go to lunch: 4 percent
Source: Keycorp Survey of Small Business Sentiment Wave9
Contact Sources
i do its, (205) 323-2345, http://www.idoits.com
Pigeon Control Professionals, (310) 316-5821
Raising Cane's, clsilvey@raisingcanes.com