My own $100 Startup interview

As I mentioned in my previous post, reading The $100 Startup has led me to reflect on small businesses I have been able to observe as I have grown up.  Most significantly, I watched my parents run their own business, and it had an amazing effect on my childhood. 

By watching my parents work everyday, I learned the importance of a strong work ethic and the value of self employment.  I was able to observe the daily struggles, and the successes.  I saw how the business WAS my a reflection of my parents.  

As I reflected on what I knew about my parent's business, I realized that their business, Discount Data Supplies, could have easily been an example of a $100 Start-Up, as discussed in the book.  I was inspired to interview my parents to find out more about how Discount Data was started, from the entrepreneurial point of view.   

When did you start your business? 

Ken: 1988 

What lead you to start your own business?  

Ken: My boss was stealing my commissions.

Jane: Dad first entered the world of computer sales when we lived in Maine in the early 1980s.  In the early days of personal computers, he was able to combine his training and skills as a teacher along with his love of research, by helping people understand how they might solve their office’s word processing and personal computing needs with the purchase of a computer.  People who purchased computers also needed printers, paper, ribbons/inks/toners and memory storage keep their offices running.  He began to notice that while the sale of a single computer brought a nice commission, sales of these items were few and far between, while the consumables that kept them running generated frequent and ongoing sales.  In 1985 he took a job as purchasing manager at a multi-branch bank.  Equipped with extensive knowledge of office automation equipment and supplies, he was able to make sound purchasing decisions for the bank.  One of the vendors he worked with was a sole proprietor who specialized in selling supplies for office machines used by banks.  This guy really knew the market and was a pleasure to work with.  After moving to Massachusetts in 1988, Dad took a job selling office machines for a large company.  Not happy with the way that business was being run, he remembered that vendor from Maine, noticed that no one was serving the banking industry in our area with that level of service, and decided to start his own business to serve that niche.  Discount Data Supplies was born, its mission—to provide the local banking industry and similarly sized businesses with high quality consumables for their office automation equipment at a low price and a high level of customer service.

How much money did you have to initially invest for start up? 

Ken: $100 (bought a used 2 line telephone –at a yard sale!--and folding table)

Jane: …and he was off and running and in business.  Because he could custom order the supplies each customer needed and have them shipped to him next day, there was no need to carry inventory.  Customers paid for their products upon delivery, so cash came in before the vendors needed payment.  Because the business was run out of the house, overhead was extremely low.  He possessed the product knowledge that the consumers lacked and could provide them with the product they needed for less than they were currently paying for it.  He also helped them solve supplies ordering problems they didn't even realize they had, e.g., he created customized supplies order lists for each customer to make it easy for them to call in or fax-in orders, he labeled the toners and ribbons with a bank’s own internal product numbers, and he could often provide emergency same day delivery of products by tracing “extras” of that item held by another department or another bank, and replacing the “loaned” item next day. 

What has been one of your biggest challenges as an entrepreneur? 

Ken: Purchasing at a price that lets me compete with WB Mason

Jane: The computer/printer/fax industry is an ever-changing field.  When Discount Data Supplies stared, the primary product line was printer ribbons and a few laser toners and an occasional box of floppy disks.  To illustrate, the only memory storage devices sold at DDS’s start up were floppy disks… the floppy kind.  Floppy disks were replaced by 4 ¼ disks, then storage tapes of various sizes, then zip disks, then external hard drives, and now flash drives.  At start-up, computers were very expensive and were primarily found in banks and law offices.  As they became more affordable and more widely owned, the large office supply outlets came on the scene.  While DDS does not compete directly with WB Mason, etc., (they don’t offer custom labeling or the high level of personal service DDS supplies) we do have to keep our prices competitive, which is not always easy to do.  Dad’s love of research has enabled him to keep on top of the field and continually find new distributors and manufacturers, which has kept DDS competitive. 

What has been one of the greatest rewards? 

Ken: Being respected as a problem solver and expert in my field

Jane: Another rewarding aspect of this business for Dad is that he has been able to design it to match his skills and interests and steer it in the direction he believes is best. 

If you could start from the beginning, are there any changes you would have made? 

Ken: No

If you could start another business, what would it be? 

Ken: Art dealer

What is your favorite thing about being an Entrepreneur? 

Ken: The freedom

Jane: …and the outlet for creativity, the ability to solve problems most people can’t solve or aren't interested in solving, and the ability to control the decision making.

Have you ever considered NOT being an entrepreneur after you started the business? 

Ken: Yes I almost sold my business to work for the buyer.

Jane: Selling the business for a handsome profit along with not having to constantly navigate the seas of change seemed attractive at the time, but the loss of freedom, creativity and decision-making control was too great a price to pay.  

Entrepreneurs all around

As I read The $100 Startup,  I have been reflecting on how many people I've had as entrepreneurial guides throughout my life. I've been very lucky, in that there have been so many people that I've grown up with as examples of entrepreneurs. My own parents have their own business since I was 3 years old. My father who had previously done purchasing for banks realize that there was I need for selling computer supplies, and as the technology industry changed his business changed with it. He was in a market of consumables, papers, inc., ribbons ect. so that he was able to adjust his products available to the needs of his customers. He also focused on service over the actual products themselves. His business was focused around solving problems for the customer, so that they didn't have to. He would get the product as soon as possible, provide same day replacement for faulty products and figure out how to fix something that wasn't working.  He would also extend his business to find and sell printers and copiers if a customer requested it.  With his focus on customer service, that he developed a number of customers that have been with him for decades.

I also have the opportunity to observe my uncle manage his own business. My uncle had been interested in architecture and the fact that his own house Santa need for products in that he discovered he could replicate and produce ancient pages, window weights, police for building that was classic such as Harvard and the State House. In replicating these he was able to start a business that tailored to a niche market and he has been very successful.

http://architecturalresourcecenter.com/

As I was growing up to I was given a number of entrepreneurial pushes. I started my own babysitting service, inspired by The Baby-sitters Club books, when I was twelve which I continued throughout college.  At fifteen,  I started "catering" my mother's women in business meetings. I would make desserts and finger foods for the meeting and that eventually led to an internship with one of the women in the group.

 I was able to intern with a woman who started her own company publishing memoirs. Working with this small publishing company allowed me to see what publishing was like.   It also to see how a company is able to target niche market. I was also able to see how a company can serve both as a for-profit business while also reaching out in to benefit the community.  I was working in the company after September 11th and the  owner of the publishing company started writing the memoirs of people who were lost during the attach on the World Trade Center.  I was able to type the memories of firefighter that passed away which was an amazing experience.  It also proved to me that there is an opportunity to have a small business that makes a profit, while still giving back to the community.

http://www.modernmemoirs.com/

That  Women in Business groups was  a great opportunity for my mother to make connections, and it also enabled me to network at an early age.  I had another opportunity to work with a women in the group who has had a number of entrepreneurial adventures, from opening a B&B to writing, and most recently working as a consultant. I was able to help her with the publishing of her book.  She was an amazing resource in that she demonstrated that entrepreneurs can follow multiple passions.  I have witnessed many people who have developed their careers for decades, which has been amazing.  At the same time, knowing that your first entrepreneurial venture doesn't have to be your only venture is reassuring

http://www.renaissancesouls.com/coaching/index.htm

This review of the entrepreneurs in my life have inspired me to become an entrepreneur in the future.  I feel so lucky to have the opportunity to observe and learn from these people in my life.  I also feel compelled to share my experience (once I have experience) with future entrepreneurs, so that they can benefit as I have.  

Startups Everywhere

I found that reading the first part of The $100 Startup was inspiring. The path that Guillebeau described that was common to all those micro businesses is the one that I see myself on.   Reading about so may businesses that started the same way has highlighted instances in my own life where I have witnessed similar start-ups, although sometimes they come in unexpected places.

Last night I watched a documentary about a performance art/prank/comedy troupe, Improve Everywhere, that began as a few friends joking around, and exploded into a world wide phenomenon.  What I found amazing in watching the documentary was that the story completely followed the path the Guillebeau described.  

Charlie Todd, the creator of Improv Everywhere was an actor and an improve comedian.  One day in 2001 he was mistakenly identified as a famous musician in a bar, and decided to play along, rather than correct the confused person.  That moment led him, and a group of his friends to continue to stage improve moments in public places in New York City.  These initial performances involved a simple premise: get on the subway without pants, or pretend to be hypnotized in central park.  He would have a friend film these performances and would then write about the public's reaction on his website.

As time went on, the performances grew, and more and more people became participants.  Todd would send out an email to his mailing list, for people to meet in a certain place, give brief instructions, and then watch what happened.  To say that he was creative is an understatement.  Some of his skits that I remember seeing years ago included the New York City Synchronized Swimming Team, which consisted of 15 people performing a routine in a fountain

Or a skit where 80 "agents" arrived wearing a blue polo shirt and Khakis to walk around a Best Buy store, in the same uniform as the employees.  Occasionally the "missions" resulted in the police arriving, and occasionally making arrests although the charges were never upheld

Throughout the history of Improv Everywhere, it is possible to witness innovation.  Todd had essentially started a blog to record his experiences, before blogs existed.  The whole concept of large scale pranks would be impossible without the use of the internet, and of course sharing the results f the pranks was extremely limited until the rise of YouTube.  Even the skits themselves could harness innovative technology.  In one series of skits, the Mp3 Experiment, Todd created a recorded set of instructions, and asked agents to download it onto whatever devices they chose, and then using headphones the agents followed the instructions as one massive group.  

I had no idea, when I started watching the documentary that THIS could become a start-up.  however, over the course of over a decade, that is what Todd did.  He followed his passion, of making these improv pranks and finding unique ways to interact with the community.  Although it is hard to explain what he really is doing, and much harder to explain what he is selling, he was able, like so may of the start-ups in the book, to find people who valued what he was creating.  

Todd also experienced a number of failures.  One of his pranks was featured on This American Life, however it was argued that the prank was mean spirited and hurtful, resulting in negative press. He was approached by NBC to make a pilot, however that was never picked up.  Todd was able to use these failures as opportunities however.  He approached NBC to share the footage from his pilot episode and posted the skits on line. One prank in particular, Frozen Grand Central, exploded on YouTube:

  Through YouTube advertisements, Todd was able to make Improv Everywhere his career.  He now travels around the world speaking and setting up similar pranks.  Just as his pranks are unexpected  for the people watching them, finding out that he was able to turn his vision into a startup was unexpected.  For me, this was a great reminder that you don't need to have a product to sell to be an entrepreneur, you just need a vision that people value.  

It All Comes Back to Beer

One of my biggest hobbies for the past few years has been visiting breweries in New England. My journey has taken me from Rhode Island to Maine.  It has become a goal that I visit a new brewery every trip I take.  At this point I would say I've been to at least 50 different breweries. 

In all honesty, most of the breweries are very similar. They have the same equipment undergo the same process, they all utilize the same basic ingredients: water, yeast, hops and grains (usually barley). Its hard to explain why then, visiting 50+ different breweries has been so interesting

  

I think the draw for me has always been that the breweries are prime examples of people following their passion.  Even the stories of how each brewery started is similar: a small group of people (primarily men) loved beer and started home brewing.  Their passion grew, and they invested everything they and their families had to become a brewery.   Most of these breweries started with a staff of friends and family, united over beer, free pizza and that shared passion.  As I visited more and more of these businesses I realized that what was drawing me was not the free tastings (although those are great!) or learning about the brewing process (although that inspired me to try home brewing).  I love visiting breweries to hear the stories from these entrepreneurs who fearlessly followed their dreams.  They turned their hobbies into a career, and although they worked relentlessly, they were so excited about what they were doing, even 20+ years after they started.

In reading The Art of Innovation, I realized that much of most breweries are prime example of a hot team.   The teams usually work in tight, cramped areas, and are unified by their passion for the product.  It is hard to find examples of teams that have better moral or a stronger sense of identity than breweries. Each brewery has character and community. Kelley's concept of T-shirts to unify the team have extended to not only the brewers and staff, but to the customers that feel as though they are a part of the breweries community.

I have also been so intrigued by how each brewery starts with the same essential ingredients, yet manages to take such creative approaches to how and what they produce.  With added ingredients ranging from bacon, jalapeno, to pine needles and garlic, brewers are fearless.  They try, they fail, and they create again.

These brewers are my entrepreneurial inspiration.  Each tour, each tasting, is another experience to put in the "entrepreneur" box that I have been collecting.  While I have seriously considered the idea of starting a brewery, I know that it is not realistic for me.  At the same time, it is my dream to develop a brewery culture where ever I work.  To be surrounded by my passion, and by others who share that passion.  To be in an environment where creativity is vital and failure is all a part of the process.  Until that day, I will live vicariously through the breweries I love.