Archive for the ‘Advice’ Category
Making Your Network Work For You
On February 26, 2008 in Advice by jared
With all of the public speaking Alex and I have been doing lately, we’ve received all kinds of questions from aspiring young entrepreneurs. The most common topic of discussion, aside from the origin of our “bird-plane” logo, was what advice we would give to those looking to start their own company.
Besides a great business idea and the resources to execute that concept, the most important thing for any start up is a solid network. Whether you start in the entertainment industry or you are breaking into the corporate world, the more people you can expose your idea to, the better off you’ll be.
This method of marketing can generate a snowball effect of success for your new company. While some of your newfound connections may not pay off right away, putting yourself “out there” and developing new relationships can only benefit your up-and-coming company.
Even if your new contacts don’t generate business for you directly, they may send referral business your way sometime down the road. In essence, you’ll create a network that works for you!
Creating a Positive Work Environment
On February 13, 2008 in Advice by alex
Many people brush off the fact that your work environment can many times determine your overall success. I think that most people would agree that developing a positive workplace can lead to a more productive day-to-day workflow.
Creating an atmosphere where your company can operate in a positive, uplifting manner is advantageous to not only the individual, but to the business as a whole. Team building strategies are often overlooked when developing a business; however, I believe it is the key to sustaining a growing company.
When a positive workforce is introduced, it can take time for your team to adjust. Once adapted to the change, everyone will work to achieve one common goal - success.
It is important for each team member to want to come into work every day. There will always be problems that will need to be addressed on a personal and group level, but, I believe it is how these situations are handled that build a positive work environment.
Don’t sweat the small stuff- Work out the big issues.
On January 30, 2008 in Advice by josh
In the time I’ve spent here at AKT, I am privileged to be part of the executive team. My position as a co-owner has allowed me to experience pleasant meetings, painful ones, and ones I didn’t even need to be in. In the last few weeks, there have been many changes that have directly impacted my day to day operations. I have had to learn not to focus on the small issues but find a solution for the big problems, for the betterment of the company.
While we are growing at an amazing pace, we must be careful or we may find ourselves in a world of trouble. I find myself each day asking “should I care about this?” and “is this the best solution for now, or the best solution for the company?” These are two questions that help the overall growth of a business, not just one facet.
As we continue to bring in more and more clients and business, we must not lose focus of our goal: to do what is the best for the company.
Sometimes, it’s hard to work the few extra hours to make sure something is done right; however, those extra hours are usually what’s best for the company. As you grow, you must ask yourself whether your goal is to win a few small battles or to win the war.
Don’t be Afraid of Change
On January 25, 2008 in Advice by alex
Things will always change; however, it is how one adapts to that change that determines their success.
I have always been a very hands on person and I have made it a point to personally perfect every aspect of my businesses.
Normally, this is a good thing, but at times, it can be difficult to hold yourself back when it’s time for a change. Changing the structure of a business is a necessity for any growing business, but if not handled correctly, it can hinder your growth.
During the creation of AKT Enterprises, I took care of all aspects of the business. From recruiting clients to producing the finished product, everything went through me. It took me a long time to realize that I need to analyze and restructure the entire company.
By doing this, I was able to appoint managerial staff to take over many of the positions that relied on me. This simple change has allowed me to focus on the development of the company.
While it is extremely important to accept change as a method of growth in your company, confidence and leadership are what allow you to smoothly transition your business to the next level.
… And remember, don’t be afraid of change!
Everything is Negotiable
On January 10, 2008 in Advice by alex
When I initially went into business, I did not understand the amount of bargaining strength the “little guy” has with its vendors. Building purchasing power can be the difference between a profitable company and a business that has to scrape by.
If your vendors are not offering you bottom-line pricing, you should realize there is always someone who will do anything to earn your business. No matter how big a vendor is, they will always need consistent business. Prove to them that you are a reliable, long-term client by building a solid long-term purchasing relationship. At that point, you have become an asset, and you’re ready to negotiate better rates on your products or services.
Merchspin, our merchandising company, focuses on screen-printing and modern apparel decoration. We were in business with one of the largest t-shirt distributors in the world to purchase our blank merchandise until around six months ago. Though they were clearly the biggest and the most reliable company we could work with, their price points were far from where we envisioned.
After a few weeks of negotiating, we could not come to an agreement on a price that was competitive with the terms we demanded. It was at that point that we decided to shop our business to other distributors. We landed a deal with an another distributor saving us close to $0.23 per unit. This move has turned into thousands upon thousands in profits on a monthly basis.
Whether your vendors provide a large, essential product for your business, or a small, supplemental piece, it is a vital part of your business and it is essential to continue negotiating all the way down the line. These negotiated price points may become the revenue you take home.
Evaluate Your Expenses
On January 10, 2008 in Advice by alex
It is extremely important to evaluate, and continuously re-evaluate your expenses on a regular basis. In any developing company, things change constantly, making it easier to lose track of your daily, weekly and monthly expenses.
While jump-starting your business, it’s easy to get caught up in the day-to-day operation of the company and to lose sight of your cash flow. Expenses that made sense months ago, might not make sense anymore.
When developing my companies, I rarely took the time to constantly research where each dollar earned was going. Once I actually took the time to evaluate my expenses, I found there was a lot of money to be saved by making fairly small changes in our daily operations.
A perfect example of this scenario is our order fulfillment company, District Lines. District Lines processes and fulfills thousands of individual orders for the online stores of clothing companies, record labels and artists alike.
During this year’s holiday season, our peak sales period, we almost double our normal volume. This increase in sales requires us to hire more workers. Once the holiday surge dies down, it is imperative that we immediately evaluate our staff and make any necessary cut backs. This year, we let things go about three weeks longer than they should have- causing the company much more money than it should have.
This is just one example that proves if you aren’t consistently re-evaluating your expenses, you might be losing money. Keep an eye on your cash flow, and your business will benefit immensely.
Don’t Dig Yourself A Grave
On December 27, 2007 in Advice by alex
When starting a business there are two main options to consider. 1. Start with a small investment and work your way forward with very little risk involved. 2. Start with a large investment and hope that the return will pay off in time. I have always been somebody who takes risks but I don’t play roulette. I enjoy knowing that the outcome of a project will be success if all angles are covered and you dedicate yourself to it. A lot of people see business the wrong way. The concept of developing a company is to be successful and profitable while maintaining a good work ethic. I was approached a little while ago by a college graduate wanting me to invest into a project he wanted to get off of the ground. During his proposal to me he started explaining the figures, salaries, and start up expenses. To me it seemed completely outlandish. His goal was to develop a million dollar studio with very little experience or clientele to get the company on track. He started going into what he’d like his salary to be, how he’d like to work the initial investment, the ownership percentages we would acquire and many other details of the business. I explained the rule of thumb that I’ve stood by for years in my business and in anything I am involved with. You are coming to me with nothing on the table but hopes. Your goal and dream is to develop a structured studio and record national recording artists directly out of college in a million dollar studio infrastructure. Not only is the experience not there but the fact that you’d dig a million dollar grave with hopes to rise from it is a bit difficult in the entertainment industry today. I always encourage anybody trying to achieve success to be patient. Start at a small scale and work your way to the dream that you have. Do not use other peoples money to obtain a shortcut to the goals and ambitions you’ve set forth. It is a lot harder to get out of the ditch you’re digging rather than to start small and maintain a consistent growth pattern towards success.
Keeping good time - Scheduling Web Design Projects
On December 25, 2007 in Advice by jared
On any given day, we here at AKT have to meet all kinds of deadlines- hourly, daily, weekly, monthly and even annually. I’d like to talk about web development deadlines, specifically. Over the years we’ve worked on our fair share of small (1 to 2 week turn around) and large (2 to 6 month turn around) projects; however, the smallest delay of a project of any size can cause serious scheduling conflicts.
Let’s assume you are running a studio staff similar to StudioAKT, with two or three full-time designers, two full-time programmers and a part time flash developer. If you are juggling multiple projects and working your entire team at capacity every day, the smallest delay in one project can cause a domino effect on your current work load. There are three things that can help you avoid the little problems that lead to project delays.- Don’t over book yourself
- Spend more time planning
- Limit revisions
EXPANDING WITH CAUTION
On December 17, 2007 in Advice by alex
As a young entrepreneur it is extremely important to remember that growing at a rapid pace can be the leading downfall to your business. Throughout the past few years I have gained the knowledge to accept the clients that will expand our company for years and years to come not for an easy dollar in my pocket that eventually leaves you out of business.
For instance, I was faced with the decision to accept a very large contract printing account. The account would expand my business by about 30%. I would be forced to invest about $50,000 in machinery upgrades and additions as well as increase my employees by quite a few just to keep up with the volume. By entering this agreement it would have put me in a situation to where my business was dependent on that specific client for 30% of our revenue stream.
While expanding and developing is part of the game I find it very important to protect your future and to not put all your eggs in one basket.
If I had 100 individual clients that together added up to 30% of my volume it would make sense. I am not running too high of a risk at that point if a few drop off here and there.
Next time you are faced with a decision that could change your structured system and overall company future, always ask yourself…
If I enter into this agreement, would I become dependent on the client and allow them to determine the success of my company?
