Archive for category Start-Up Tips
New Interns
Posted by Brett in General Entrepreneurship, Start-Up Tips on May 26th, 2010
Last week we said goodbye to our two interns that had worked with us for 6 months and really helped us take some big step forwards.
In addition to all the hard work they put into the company, they also helped me learn and grow as a manager. Specifically, today I am much better prepared to work with all of our future interns that come through the company. To help ensure all parties get as much as possible out of the internship we now have a few established practices.
First, we require that all incoming interns fill out an entry evaluation. This allows them an avenue to communicate their expectations for the position and what they want to get out of it early on. We can use it to temper expectations and catch any potential issues early on.
Second, we are now holding bi-weekly team meetings on Mondays and Fridays. We have always held a weekly meeting with our team, but by increasing the frequency to twice a week I hope to increase the accountability of everyone (including myself) to get as much as possible done during the week. On Mondays we go over the weekly expectations/projects for the week and on Friday we see how everyone did. I like a little pressure to perform and this helps add it. These meetings have also proven to be great times for brainstorming and cross-pollination of ideas.
Third, we are requiring some in-office work hours. This was tough to do in the past as we didn’t have an “official” office. I am a fan of remote work environments, however I think the accountability of required hours will improve performance. On top of this it gives them an opportunity to have each other and myself near by to bounce ideas off of one another. We are requiring that everyone spends about 1/2 their time in the office.
Finally, we have established an official exit review. All the interns were informed up front that they will have an exit review and they were provided a template of what they will be reviewed on. This should again increase accountability. It also provides us another great opportunity to receive feedback on our internship positions, management style, and anything else that is on their mind.
This week we welcomed 3 new interns that will be here for the duration of the summer. Hopefully these new additions to our internship program will really allow them and us to maximize the value of the internship experience. I know we are getting better and better at it every day.
Supply Chain & Control
Posted by Brett in Start-Up Tips on April 28th, 2010
Scrubadoo.com is a drop-ship operation, you can read about our supply chain and how we got our start as a drop-shipment company here. We are trying to differentiate from our competitors based on our service, not an easy thing to do. It becomes even more difficult when you have a limited amount of control over the fulfillment of your orders.
In case anyone is thinking of starting a company with a similar model I thought I would throw a few of the issues you may run into.
-All of your suppliers have different fulfillment periods.
- If someone orders products from two different suppliers it is very likely that the products will arrive at different times. This tends to make the client think we forgot a portion of the order.
- We can’t actively advertise that your product ships out in “x” days since they all ship out in different amounts of time.
-Suppliers have different return periods.
- While we accept returns for 100 days, they only accept returns for 30 days typically, thus anything that is returned to us becomes inventory.
-They all have unique order entry systems.
- This makes it impossible for us to have a standard order entry process, resulting in more time spent on this task.
-We do not always receive tracking numbers.
- If a client calls to see the status of our package sometimes we do not know it.
-You are managing several relationships.
- Just like anything else the relationship is important, especially for the smaller companies. The better you treat your account reps the more they will take care of you.
- If you need some rush work done, you can’t do it yourself, you are depending on another person to come through for you.
-We don’t have the ability to put anything in the box
- All that is shipped with the item is a packing slip, it is not unique and pretty obviously does not come from us.
- We can’t use the shipment to market our products further
There are a lot of issues that arise from a drop-ship model. Unfortunately, it is our only option right now. Inventory costs money, and right now, we have very little.
Advertising
Posted by Brett in E-Commerce, Start-Up Tips on February 24th, 2010
It is difficult to drive traffic to a website.
I realize that this probably isn’t an incredible revelation to anyone out there. However, it is really hard. Especially with what adds up Marketing budget that could be exhausted with one big night on the twon. There are really only so many free avenues to market your product.
We have tried, gift cards, flyers, direct mailing, emailing lists, promotions, addwords, approached nursing groups on Facebook, and more. Turns out that none of these are a magic bullet. I have come to realize that there probably isn’t one.
As you can probably tell, when I started advertising the site I decided to take the approach that I would throw a bunch of cheap darts at the board and see what works. So far we have had very mediocre results. They have gotton us to about 150 unique visitors a day, which isn’t terrible, but it isn’t going to make us.
We are actively trying to come up with new ways to market the company. I am looking for any media outlets that will give me 5-10 minutes, the chance to write a blog post, or a quick write up in a magazine or newspaper (let me know if you have any for us!). It doesn’t matter how big or small. I have also started approaching prominent bloggers in my industry to see if they will help us spread the word about our win free scrubs for life promotion. I hope that some of them will help me out (we need it), I figure we are just asking them to spread the word about a contest that is beneficial to their user base. It’s not like I’m selling crack.
We have also attempted to set up partnerships with hospitals and nursing schools to help market our site. Basically we give them a discount for their students/employees and they spread the word about it, a win win right?
Finally we have approached other web sites that target the same market. The goal is to try and set up partnerships with them such as this one (where our link will be shortly).
Hopefully all of these things will slowly build our base. If any of you have any ideas for me it would be great to hear them as we are always looking for fresh new ideas. There is no bad idea. We are thinking about chalking sidewalks and shoveling our site name into the snow along the major highway…..seriously, so let me know what you think!
Merchant Services Part 2
Posted by Brett in E-Commerce, General Entrepreneurship, Start-Up Tips, Uncategorized on October 15th, 2009
I know this has been a little while coming but I think I am finally at the point where I have a little time to write more frequent posts. Before, I start part 2 of merchant services, I would like to mention that we have added some add’s to the blog so if you see anything you like please feel free to click through and help support the us.
OK, on to merchant services. In my last post on this topic I spoke about the steps it takes to set up an account and what the value chain of the industry looks like. This post is specifically about fees. Everyone who accepts credit cards hast to pay something (even Target and Walmart) but you can do several things to help minimize your costs, even as a start-up. How do I know this? I know because A) I used to sell merchant services and B) I just went through the process of setting them up. Here are a few steps to take to minimize your costs:
- First understand your busienss. Specifially, what will your typical ticket size be Vs. how many tickets a day will you process. This element is key because every merchant processor is going to charge you in two ways; 1st a per swipe transaction and 2nd a % of the total bill. They dont advertise this, but merchant processors are willing to negotiate prices on both of these cost elements (i.e. charge a smaller per swipe for a higher % and vice versa). This is why it is important to know your business. If you do very few swipes but have large ticket sizes you are better off with a low percentage and a higher per swipe charge. If your company does a lot of volume with small ticket sizes then you would want a little higher percentage with a lower per swipe (scrubadoo.com for example). The better the idea of what your transaction size and volume will be the more optimal your fee structure can be.
- Ignoring their publicly advertised pricing, look for a few processors that you are comfortable working with. Research the company, how they do business, even ask for client references (people you can actually call). Just like every other part of your business do your due dillagence on your merchant provider.
- Once you have identified your top two or three choices for providers contact them and ask them for a quote. Make sure you tell them what you are looking for in pricing (remember you know your business better than they do and they can taylor thier quotes to what you specify i.e. small per item and high %). It is also important to take into account the equipment you will need. If you are an e-commerce site you will need none. But if you have a brick and mortar shop you will need processing equipment. The newest wireless technology can be close to $1,000 for one machine. It is important not to ignore this aspect of pricing. Once you have the quotes in hand you hold the power in the relationship. You have choices and all of the processors want your business.
- Again, ignoring pricing, decide which processor is your top choice. If your top choice also has the best pricing you are done (although it never hurts to tell them you are looking at other companies to see if they will throw in free equipment etc). If they are not the lowest, tell them. They will likely ask for any lower quote in writing. Give it to them. Most companies will at the very least match competing offers, more than likely they will actually beat competing offers.
- Now you have your preferred vendor at the best pricing you could have hoped for.
- Re-visit your account at the very least annually, see if your pricing is still ideal for your company. As you grow don’t be afraid to renegotiate. The bigger you are the more valuable you are to your processor.
That is my breakdown on merchant services pricing. We are currently using Authorize.net as our gateway and BB&T for our processing. If you are in a region where you can use BB&T give them a shot. They are very good at both service and pricing.
-Brett
Delivery Methods
Posted by Brett in E-Commerce, Lessons Learned, Start-Up Tips on July 13th, 2009
First off I apologize for the long break. I will be back to a more regular schedule after the brief haidous. Now on to the post.
In general the products we sell at scrubadoo.com are relatively low ticket items. This combined with the fact that we are almost 100% e-commerce makes shipping tremendously important to us.
Shipping is so important for several reasons. First, our shipping costs can reach 30% of the total ticket price of some of our items. Second, to help differentiate through customer service we need to provide a flawless customer experience which includes on-time, track-able shipping. Finally, we need to provide a seamless way for customers to return items that are defective or they feel should be returned for other reasons.
Like any business there are a ton of capabilities we would love to have but there are only a few that without we would be sunk. One of those few is shipping. Because of this we spent a lot of time looking at UPS, FedEx, and USPS. We needed a product we could integrate into our website, a company that was business friendly, and a company that offered reasonable rates.
My first impression of the three companies was underwhelming. None of the three seemed to have their act together on the small business side. Additionally, all of their web capabilities seemed rather antiquated and it was impossible to get an anwser from anyone. After a frustrating amount of digging I found out the following:
USPS- currently does not offer many capabilities for business owners. They are currently building a small business platform that will eventually satisfy the type of needs we have for scrubraisers and scrubadoo.com.
FedEx- I was never able to get very far with them. Through there web they dont seem to have a small business orientation nor do they have the capabilities we needed. If they do have the capabilities needed I could not find any information about them nor could I get in touch with someone who could help me out.
UPS- At first I could not get anyone to speak with me and then when I did get someone they had never even heard of the product they advertised on the web that I had more questions about. That product “returns on the web” turned out to be what we needed. I was finally able to get them to assign me an account rep who was able to either A) answer my questions or B) put me in touch with someone that could answer my questions.
We went with UPS and since my initial negative experience, I have since been impressed with their customer service (they even took me out to lunch). We launch the site in the very near future and hopefully UPS will play a key role as a strategic partner for us.
Marketing with Social Media
Posted by Kyle in General Entrepreneurship, Start-Up Tips on July 5th, 2009
Working for a start-up company I have learned that you need to take advantage of anything free. With this in mind, the main focus of my work so far has been using social networks and online media for marketing Scrubadoo.com I have had mixed success so far. I have tried traditional networks like Facebook and MySpace as well as targeted networks for nurses like ultimatenurse.com and allnurses.com.
In general the one thing we have done very well is having a singular end point, our Facebook page Scrubaoo.com. This has simplified my work by allowing me to post in forums and networks and direct everyone to a location where we can manage discussions with customers. I think this is very important not only for saving time, but also to avoid double-counting “fans” that you may have if you were to have say a Facebook and MySpace group.
I have also found that for our company’s situation, it’s more efficient for us to interact with potential customers in forums and networks where we can converse with multiple people at once. Facebook is the medium that I am most comfortable with, but their is a lot of competition for people’s attention in Facebook through ads, groups, and pages. Nursing networks like ultimatenurse.com and allnurses.com have been very helpful. To be able to find a high concentration of potential customers for Scrubaoo.com is invaluable, and then being able to converse with them relatively easily by posting in forums is incredible. We were lucky to have established networks with tens and hundreds of thousands of our target audience.
The two most important things I have learned about using social media for marketing are:
Cast a wide net – focus on networks and media that have many potential valuable contacts.
Don’t Advertise – you have to blend in at least a little to maintain credibility in a network.
Get Things in Writing
Posted by Brett in Failures and Frustrations, Lessons Learned, Start-Up Tips on July 3rd, 2009
I realize that this statement may seem extremely obvious but I have already made this mistake at least once. I thought I had been pretty good about making sure I have at the very least an email trail for everything I do. This included contracts with suppliers, the outsourcing we have done for web development, or agreements with employees.
The Story goes like this:
We planned on using one primary supplier for our scrubraisers campaign. I set up our account with the company for scrubadoo.com and was assigned an account manager, Andy. I was able to negotiate a bulk deal for their products that would allow us to use them as the primary supplier for scrubraisers. I wrote about all of this in a blog a few weeks ago here: http://www.scrubadoo.com/blog/?p=137.
Well I did all of those negotiations in phone conversations with Andy and I did not realize that he had not sent an email or any follow up paper trail. Two weeks ago I sent him a message to try to negotiate similar bulk discounts for some of the other products that they offer. I did not receive a response for several days. When I did it was from a new sales rep. Andy had left the company.
There was no record of the deal that Andy and I had agreed upon. My new contact’s first offer was a a deal that is not going to work for our scrubraisers projects. I pushed back and I am still waiting on them to come back to me with something that will work for both of us. Needless to say it is no fun being in limbo on this, nor do I want to set up a new supplier for scrubraisers.
Hopefully this will all work out for everyone and we can continue to move forward with this supplier. I have certainly learned a lesson here that I hopefully won’t have to learn again. You never know what is gong on with your suppliers so it is always better to be safe than sorry.
-Brett
The Outsourcing Saga Continues
Posted by Brett in E-Commerce, Lessons Learned, Start-Up Tips on June 27th, 2009
After months of trials and tribulations with X-Cart we decided that we will not give them the opportunity to make any more money off of us.
We spent $300 on them to purchase their base system and we are going to use that system. However, we are not going to use the X-Cart team to make any modifications to the system we have purchased for scrubadoo.com.
We created a proposal for the Job on Odesk and as of Thursday we officially hired another company to make the modifications we need. The expected cost is legitimately 25% of the cost X-Cart was charging and the time-line for the job is 1 week as opposed to 1 month.
The name of the company we are using is Matrix Design and they are located in India. Hopefully we will not run into the same issues we did with X-Carts team that was also overseas, in the Ukraine. So far they seem to understand what we need. After providing them with a description of our needs they came back to us with an in depth proposal and a diagram of exactly how it would work. They immediately understood what we needed and were able to easily show us that they understood.
The actual work starts Monday and I am once again confident that things will move forward relatively smoothly. Right now I am a huge fan of sites like Odesk and Elance (I am using Elance for a project with the gaming company I am a part of). Hopefully they produce the results we need and I will continue to use them in the future.
-Brett
Transition
Posted by Brett in General Entrepreneurship, Start-Up Tips on June 9th, 2009
We are currently up to a team of 5 working on scrubraisers and scrubadoo.com. I increasingly find myself doing more and more overall strategy and managerial work and less of the nitty gritty stuff. We still all wear a lot of hats but my roll is steadily changing little by little. I think this is fairly normal for a company at our stage and it will be interesting to see how my roll and the companies evolution move together.
So far I think things are going fairly well with the team and I am pretty happy playing my roll. It has only been about two weeks since we expanded past Meredith and myself so we have a long way to go. One downfall is that I have found myself passing off projects that I would normally enjoy undertaking and it seems that a lot of what is left is sometimes very monotonous (like editing and reading through a 35 page operating agreement).
The upside is obvious, we have a ton of brainpower working on making the company better. We are going to get a lot more accomplished in the next three months than if we were without all the talent we now have. A lot of these projects are things that we would never have had the time to explore.
Managing and evolving your position is a challenge that almost all successful entrepreneurs will have to succeed at. If anyone has any tips, feel free to post away. The ongoing challenge of entrepreneurship is what attracts many to it and trust me, so far the challenges have yet to run out.
-Brett
New Media – Part II
Posted by Mer in E-Commerce, General Entrepreneurship, Start-Up Tips on June 8th, 2009
Well, today I’m going to tackle LinkedIn and Twitter, two somewhat newer social/professional networking applications that we hope will prove useful to our start-up.
I learned about LinkedIn while working at JWT, an ad agency in New York City, before business school. LinkedIn is similar to Facebook in that it builds an online network of people you know and allows you to connect to new people through this network. The big difference is that Facebook was designed as a social networking site, and LinkedIn was designed as a professional networking site. So instead of friends, you have business contacts, and the content exchanged throughout the network is work experience and qualifications, job opportunities, company information, etc. We have decided to use LinkedIn as another way to get out the word on our company ScrubSquared, and its two businesses Scrubadoo.com and Scrubraisers. LinkedIn now hosts company pages, which describe a company, provide a link to its website, and creates a common identity that its employees can link to from their personal pages. I imagine this will be most useful to us in letting our acquaintances and professional networks know what we’re up to, hopefully leading to suggestions, advice, and contacts that will be helpful to us.
Twitter of course is the latest social networking craze. I just read an interesting article about it last night in TIME Magazine. For now, Brett and I are both tweeting as ScrubadooBrett and ScrubadooMer. We’re using this in a similar way to LinkedIn and Facebook in terms of getting the word out on what we’re doing from an entrepreneurship standpoint, but I believe Twitter has the potential in the future to create an ongoing dialogue about what nurses and other medical professionals go through in their day-to-day lives, which could give us some insight into how to make their lives easier. I think Twitter’s still really finding its own identity, and we’ll have to figure out our Twitter identity as time goes along.
