Emotional Support

My cat buddy, Rusty, who lives down the street, is having difficulty getting his humans onboard with the cat toilet seat that he’s developing. This is having a negative effect on Rusty’s enthusiasm for the project. So, I started to think about how a family’s emotional support plays into the success or failure of a business venture.

Take a look at me. Most people reading this blog are probably thinking that I’m a gimmick. I’m a dog that can use a keyboard and mouse. So, what’s so unusual about that? However, again, while I may sleep 22 hours a day, I take it all in.

Developing an idea and delivering it to market can be a long and costly road with many bumps along the way. Even though these setbacks may be minor, they can often question one’s decision to take on this endeavor in the first place.

Let me tell you, animals have an increased sense of what physically and mentally ails a human being. Some of us dogs can detect a cancerous tumor in a person’s body. Both cats and dogs can sense the stress and tension one accumulates in the daily grind that we call life.

While I didn’t come up with the idea for CoolZips® zipper pulls, I do sit at my human’s feet while she searches the internet for critical information to take us to the next step. This is something subtle that I do, because I know it has a calming influence. And then, while my humans question why I just stepped all over the sample products that were on the floor that they were staring at for five hours like catatonic zombies, I realize that it will never dawn on them that this was somehow calculated on my part to get them to take a break and then come back with a clear head and a fresh outlook. To me, this is part of the process. This is what I bring to the table. This is what I have to offer to help our product achieve success.

So, if your family is not offering the emotional support that you need, then do something to draw them in. Ask them for their ideas to help solve a problem that you’ve been dealing with for days without resolution. Or take a few minutes break and cuddle with your pet; we’ll help to relieve your stress so that you can move forward and we’ll get a soothing massage; it’s a win-win solution.

Remember, at times, we all get overwhelmed. For god sakes, I wish my tail would stay still for a freaking two seconds! And if, for some reason, Rusty’s family is viewing this blog, pick Rusty up and stroke his fur and calm him down. After all, this may be just what he needs to renew his enthusiasm and get him back on the road to getting his product to market.

Manufacturing Crossroads

Do you stay in the United States? Or do you go overseas? This decision always seems to cause a dilemma. But I’m not talking about where to get that Portuguese Waterdog, Australian Sheepdog, or Chinese Foo Dog (even though I am in the market for a mate). No, the question I’m posing is, where do you go to get your product manufactured?

With the current state of the US and world economies, this is a situation that seems to question our national allegiance. Hey, I’m an American Foxhound: if I were cut I’d probably bleed red, white, and blue. However, sometimes, to help with your country’s economic growth, it does not always mean that the right path is the clearest one.

For us, this was a major decision. We originally came up with 10 styles of CoolZips® zipper pulls that would define our product line and that we wanted to have manufactured and mass-produced here in the United States. We received estimates from a few US companies to produce the tooling that was needed for each of the unique charms. The price was $3,000.00 for each charm for a total of $30,000.00. The quote we received for the tooling from a company in China, who could also take care of the entire manufacturing process, was $300.00 for each charm for a total of $3,000.00.

However, we did have concerns, such as:

• How will we communicate when we don’t speak Chinese?
  
• How do we find a company, let alone the right company, in such a large country over six thousand miles away?
  
• How do we manage lead content in our product and make sure that it is safe?
  
  Just so you know, CoolZips have been lead tested for your child’s safety. All components used to manufacture CoolZips have been lead tested by a certified laboratory in the United States and meet lead safety requirements.

So, even though we would have preferred to keep the manufacturing process here in the United States, we did not have $30,000.00 for this startup venture. Therefore, it came down to either we don’t pursue CoolZips, because the cost for us would put our product’s target piece price too high and make it too expensive to sell, or we go to China to have our product made.

In the bigger picture, our decision to manufacture overseas turned out to be the right path for us. Because we did go ahead and manufacture CoolZips in China, we are now on our way to creating income for many other individuals across the United States (from companies who print our sales sheets, provide shipping materials, US Postal Service, web site provider, Visa, MasterCard, American Express, banking institutions, sales representatives, accountants, to retail store owners across the country).

So, don’t make critical decisions in haste. The United States offers excellent manufacturing solutions and financial benefits to manufacture and produce your product here. However, for some, this path may be different. After all, what if my true love actually ends up being an English Foxhound?

Staying Connected

I apologize for not posting in awhile. My humans decided to take a vacation to Disney World and left me at my cousin Nicky’s, she’s a Portuguese waterdog who is forbidden to use the computer. Anyway, as I sat on my fleece blanket watching yet another winter snowstorm bear down on us, I started to think of how small business owners stay connected to their businesses when they are away for an extended period of time.

If you’re a one person team, then how do you:

• Check voicemail or receive important phone calls?
  
• Respond to email?
  
• Provide customer support?
  
• Fulfill orders?

As most people have cell phones these days, calling to check voicemail messages left on your business phone is easy. You can also have your business phone forwarded to your cell phone or purchase a cell phone as your primary business phone so that you can receive and attend to calls anytime and anywhere.

As far as checking email, many hotels have business centers with internet access. But what if yours doesn’t? One solution is to get a cell phone that allows internet and email access. While this could be an additional monthly, and costly, service, it does allow you to easily keep in touch by answering questions through email to sales reps, retailers, and customers. This builds confidence as companies are not only judged by the quality of their product, but by the quality and timeliness of their customer service.

So, what about fulfilling orders from sales reps, retailers, or direct sales through your web site? I don’t think that many business owners want to pack an extra suitcase full of product and shipping materials just in case they get an order. While this could work if your product is small enough, such as CoolZips® zipper pulls, if you’re selling something larger, this is not really feasible. Therefore, your options are either to role the dice and hope that nobody wants to buy your product while you’re away (negativity that is not in your best interest), or alert your sales reps, retailers, and web site customers that any new orders will not ship for a specified period of time, or train a backup such as a trusted family member or friend to help out in a pinch.

Once again, effective communication is the most important aspect of business. Letting a customer know that there will be a delay in fulfilling an order is better than leaving that customer in the dark, feeling the need to repeatedly call and email to see if you received their order. Building trust between you and all of the people that you do business with will help to bring repeat sales and brand your company and name with a quality product and quality service.

Remember, building a successful company can be a wild ride and takes a lot of hard work, requiring many concessions, especially when you’re waiting in line at Space Mountain.

Market Test Your Product

Where did all of these cats come from? I mean, I had no idea they all lived in my neighborhood! For the past week, there has been a steady stream of Calicos, Tabbies, and Siamese cats entering and exiting Rusty’s house. Wait a second. Rusty must be conducting some sort of market test for the cat toilet seat that he invented.


I remember how we approached our market test for CoolZips® zipper pulls. After perfecting our prototype, we handmade the zipper pulls, coming up with all sorts of colorful and unique styles. We then showed our friends and neighbors, who loved them and were excited to buy them for gifts. Next, we created a web site, started to sell them online, and received repeat business. After that, we participated in local art fairs where we sold 100 CoolZips at one and 300 at another. Human Lauren and Human Rick were convinced that there was a demand for our product; people were zipping them up! And this, as it turned out, was our market test.

So, no matter what your product is, the question always comes down to, “Will people buy it?” The answer that initially runs through our mind is, “Hell yes! This is going to revolutionize the industry, why wouldn’t people buy it? I’m going to be rich!” However, once we bring our head in from the car window and our ears stop flapping in the cool breeze, we realize that, somehow, we need to conduct some sort of market test to see if people will actually buy our idea.

How you carry out your market test may be, and probably will be, completely different from the next person’s. But, once you prove there is a market for your product, then you will be well on your way to getting that gold plated water dish that you’ve always wanted.

A Limited Liability Company

I’ve never lived in a dog house. I prefer the comforts of air conditioning in the summer and heat in the winter. I love my chaise with my cozy wool blanket with a thin coat of my own soft fur to help me nap. I don’t ever want to lose my home.

This is why it’s important to properly setup your business, so that you protect your personal assets from your business assets.

• Corporation – This is the most complex form of business organization. Corporations are comprised of shareholders, directors, and officers. So, unless you expect to make millions of dollars on that new and improved dog bed with built-in whoopee cushion, want your activities closely regulated, involve extensive record keeping, and be taxed both at a corporate and a personal level, then this may not be the best route to go.

• Partnership – A general or limited partnership has two or more participants and is easier to establish than a corporation, start-up costs are lower, and you’re not liable for an associate’s negligence or mismanagement. However, partners are personally liable for contractual obligations and debts.

• Limited Liability Company (LLC) – This option is probably the preferred choice for new businesses. Owners of LLCs are called members (not partners or shareholders) and only one member is required, but you can have as many members as you wish. An LLC is less formal and more flexible than a corporation. But the most important aspect is that members cannot be found personally liable for company debts. Your individual assets are separate from the assets of the LLC; therefore, in the case of a dispute, your personal assets cannot be seized. In addition, you are only required to pay taxes on your earnings one time instead of paying both business and individual taxes.

Years ago, when we came up with our company name of IBeOn, we filed as an LLC. However, when we came up with the idea for CoolZips® zipper pulls, instead of creating another LLC, we decided to file as a DBA (this means “doing business as”) within our state. This allows us to legally do business as CoolZips.

If you plan to operate your business under a name that is different from your company’s legal name, then you must register as a DBA. You can then legally open a bank account and conduct other business using this second name. For us, this was critical as we wanted to build name recognition for CoolZips without going through the hassle and other expenses of setting up a separate LLC.
In addition, if you’re planning to sell a number of products, and want to create branding for each product, then setup your main company name as an LLC and then file the name of each product as a DBA. This will help you to control expenses and allow you to effectively expand your business.

So, keep yourself out of the dog house and contact your state’s Department of Labor & Economic Growth division to setup an LLC and/or DBA. Your family, including man’s best friend, will greatly appreciate it.

Trademark or Patent?

It seems that Boots, another cat on our street, got wind of Rusty’s idea for the cat toilet seat and has applied with the United States Patent and Trademark Office (USPTO) for the rights to the name, The Cat Stool.

While Rusty’s pretty discouraged and a little depressed, you already know my position concerning this; I think it’s the wrong name and this is a blessing in disguise. Anyway, Boots is not a friend, he has a history of stealing and, frankly, as far as intellectual property goes and, as one of my favorite groups, Smash Mouth sings, he “ain’t the sharpest tool in the shed.”

Now, the first thing to determine is what type of protection you need for your product.

• Trademark – This protects names (such as company or product names), words (such as taglines), and symbols and colors (associated with logos or packaging) that separate goods and services manufactured or sold by one company with that of another company.
  
  
• Patent – This protects an invention, a process innovation, or specific product design and prohibits others from manufacturing, using, or selling it within the United States or importing it into the United States.
  
  
• Copyright – This protects works of authorship, such as writings such as (books or articles), music (such as lyrics or composition) and works of art (including photographs) that are tangible and us dogs can chew on when you’re not at home.

As far as CoolZips®, we chose to go the trademark route. Since there are many different zipper pulls out on the market and, even though ours are unique with multi-colored beads and cool charms, anyone could change the color or style of one bead and I would be a three-legged dog, not having a leg to stand on, trying to prove our case in court. You can register for your trademark online at http://www.uspto.gov/. It costs about $500 and it takes about six months to go through the approval process.

Furthermore, if we had come up with a specific process on how to mold our charms that was groundbreaking in the industry and would have given us a considerable competitive advantage, then that would have been worthwhile to patent. However, we were just interested in trade marking the name CoolZips so that no one else could use our name as their own. In addition, I think that a trademark, when someone sees the symbol ® after your company name, it lends credibility because you went through the extra effort and cost to protect yourself and your company.

Oh, and you may be wondering what the difference is between the ™ and ® trademark designations. Well, you can use the ™ designation to make the public aware of your trademark claim to rights whether or not you have filed an application with the USPTO. However, you may use the ® symbol only after the USPTO issues a federal registration, and not while an application is pending approval. In addition, you may only use the registered ® symbol in connection with the products or services listed in your federal trademark registration. Keep in mind that if you make any major change to your product or logo that is described in, and covered by, your existing registration, you may need to submit another registration to properly and legally protect your rights.

Now, if Rusty comes up with a new material or manufacturing process that creates a coating on The Cat Stool that resists fur from shedding and sticking to it, then I would suggest that he apply for a patent. Otherwise, I think that a trademark is sufficient.

Domain Names and Branding

A domain is the name of an online business. That’s how somebody finds a web site on the internet. The domain, often the name of a company with an actual physical presence, also helps with establishing its image or brand awareness.

Remember Rusty, my cat buddy who lives down the street? Well, he wants to call the cat toilet seat that he’s inventing, The Cat Stool. While last I checked on NetworkSolutions.com, the domain name was indeed available. But, and maybe it’s just me, it seems to have some unclean connotations. Maybe Rusty should think about, The Cat Seat or Clean Cat? I agree that they’re not the catchiest of names, but they’re more closely associated with what the product actually does.

On the other hand, I guess you can create brand awareness with any name. Take a look at monster.com. Nowadays, when someone yells monster, we don’t start running thinking that Frankenpoodle or Dogula is chasing us, but rather about the employment process and searching for a new job.

When choosing the right domain name, keep it short, simple, and memorable. Companies that succeed with evoking a certain positive image, besides having a great product or service, usually have short names, such as Ferrari, Adobe, Amazon, Google, and Yahoo. Sometimes the name of the company has no significant connection to the products it produces, as noted by the above companies. Or, in our case, CoolZips® has a meaningful association because we produce really cool zipper pulls.

For us, it started off with a brainstorming session . . . Zippitz . . . EasyZips . . . FunZips . . . SillyZips . . . SillyWillyZips . . . Once six-year-old Hannah wrote down CoolZips, we knew that this was the perfect name; short, simple, memorable, meaningful, and the domain name was available. While my forte is customer service, she’s actually our marketing genius. She even came up with the marketing campaign of, People Are Just Butts Walking. You see, from a dog’s standpoint or a small child’s standpoint, we’re just staring at your butts.

Anyway, a brand is a name, a symbol, a design, a combination of these, or anything else that identifies the goods and services of one company and sets them apart from another company. It’s all about image.

While you do want your target market to choose you over the competition, branding is more about getting your prospective customers to see you as the only one that provides a solution to their problem. Some of this is through personal experience and other through perception. You want them to see you as credible, you want them to connect with you emotionally, you want them to be motivated to buy your product, and you want them to be loyal. CoolZips is a fun, safe, and quality product. We take pride in this and our customers not only perceive this, but know it to be true. Loyalty brings repeat business.

Would you be loyal to The Cat Stool? Rusty thinks so. I guess only time will smell, I mean tell.