How To Make $400,000 Selling Ice

http://eat-healthy-every-day.blogspot.com/

http://www.iceculture.com

In a sleepy southwestern Ontario town no larger than an intersection marked by a family diner, a small company is doing very big, and very cool, business.

Iceculture Inc., known for manufacturing and selling ice blocks and sculptures, has carved out its biggest single contract ever: $400,000 to build an all-ice restaurant, called Chillout, in Dubai, the first of eight projects the family-run company will produce for Sharaf Group, a Middle East consortium. "This is the single-largest, most lucrative project we have ever undertaken," says Iceculture owner Julian Bayley, a former Fleet Street journalist.

Raising Iceculture's profile internationally may be the greatest benefit of the deal. Despite growing global competition in the ice trade, few businesses have the staff Bayley can throw at a project; a recent Toronto wedding featuring massive ice displays required 22 employees to set up. That, claims Bayley, is Iceculture's competitive advantage. The company's ability to make super-clear ice through a reverse osmosis filtration process that eliminates air bubbles is also in demand.

Bayley, 69, started making ice 18 years ago, when he ran a catering business. The quality of his ice punch bowls impressed ice carvers, who began requesting blocks of ice for their work. This led to clients in the events industry commissioning Iceculture to make elaborate displays, such as beaded ice curtains and ice lounges. As word spread, Iceculture found demand for its creations as far away as Australia and South Africa. But the Dubai project is special. "They are aiming for the wow factor," says Bayley. "They just do not see ice like this in the Middle East."

The ice for the Chillout restaurant will be shipped in freezer trucks from Hensall, about an hour's drive north of London, Ont., to freezer containers aboard ships in Montreal that will embark on Feb. 3 on a 6,500-nautical-mile voyage to Dubai. In total, four containers, each holding about 23,000 kilograms of Ontario-made ice, will set sail to the Middle East. It will take nearly a month to get there, and the $150,000 worth of ice will take eight Iceculture workers about seven days to assemble into an 1,800-square-foot eatery that will open in the first week of March.

Chillout, anchoring a new mall being developed by Sharaf, will be constructed in a large freezer, as Dubai's temperature reaches an average of 28uC at that time of year. Ice will cover the walls and floor of the restaurant, concealing the freezer's appearance. Customers will lounge on ice furniture, cosy up to an ice bar and drink from, you guessed it, glasses made of ice. But they will hold non-alcoholic cocktails: Dubai, excuse the expression, is for the most part dry.

Other large Iceculture clients include NASA--which uses pure ice chunks, cut to exacting specifications, to test ice damage to its shuttles--and Boeing. Though it's the Dubai deal that has the potential to really boost the company's prospects. "This is such an unusual project," says Bayley. "If we do this right, it could mean a lot more business for us." For Bayley, who has gone from sculpting ice punch bowls to dining in the desert on ice, success is a dish best served cold.

[Via - Canadian Business]

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Inside Canada's $4-billion pet industry

What Great Advertising Really Is

Canadians spend $4 billion each year on their pets. More than half goes to the bare necessities: food and trips to the vet. But there's a huge new market for luxury animal products—designer clothes, posh resorts, organic treats, even insurance policies. Why the sudden urge to pamper our pets? Some say it's because people are waiting longer to have children and instead lavishing love on their animals. Others blame a consumer culture gone crazy. One thing's for sure: small-business owners are cashing in

Lisa Brooks
Happy Tails Pet Resort
Huntsville, Ont., started in 1996
"I had a fantasy when I was a child of being surrounded by dozens of dogs. It was my going-to-sleep dream. The dogs would be swimming and running and playing free, and we would all live together in a big brick house. Now I've achieved that dream. This is a place for people who don't like the idea of their dogs being caged, filed away and only being taken out for occasional exercise. It's a resort for pets. We have activities like paw-print painting and pottery, but most of the time the dogs just hang out with each other and have fun. Each dog has its own cubby to sleep and eat in. They're all wood, with Berber carpet in the summer and straw in the winter. There's also a TV and a fireplace. For the larger dogs, there are cabins on the grounds, and couches. The dogs sleep wherever they feel most comfortable. My favourite part of the day is meeting our customers—it's great to see people so happy with the service. Dogs that have been here before are excited when they arrive; they can't wait to be with the other dogs and play all day. At the end of their stay, the dogs are happy to see their owners, of course, but people always tell me that as soon as their pet has said hello and settled in to the car, they fall fast asleep. It's like a switch goes off, and they sleep most of the way home, like a child coming home from camp.

Fraser Telford
Exotic-fish expert, Big Al's
Mississauga, started in 1975
"As a kid, I was into every kind of bug I could catch. Then, when I was 6, our neighbour's son went off to university, and I got his five-gallon tank and some guppies. By my seventh birthday, I was ordering my own fish through the mail. I used to think I would become a marine biologist, but I found that I really enjoyed the retail end of things. I've been at Big Al's for five years. I'm the livestock man-ager for the Mississauga store, and it's like running a small zoo or aquarium. We have over a thousand species of fish, from goldfish and guppies to large angelfish and sharks. We had a 6 1/2-foot nurse shark named English Bob (he was named after one of the gunmen in Unforgiven) who outgrew his tank. So we shipped him off to the West Ed-monton Mall. We arrived at 4 a.m. to get him ready for the flight—even sharks have to get to the airport early.

We have school tours in here all the time. Growing up, I didn't have friends who were into fish, so it's nice to be able to pass on to kids what I've learned. We do a lot of set-ups for companies that want an impressive display tank. The Mandarin restaurants have huge, beautiful tanks. We get a few celebrities in as well—a lot of athletes, guys with disposable income. We order goldfish for Don Cherry straight from a huge farm in Hong Kong, and former Raptor Charlie Villanueva used to come in frequently. We also get guys from the Leafs and Argos. Saltwater tanks are very popular. It used to be that you needed a lot of time and money to keep one, but technology has advanced to the point where it's affordable for the average person. Reef tanks are the high-end items now. We have set-ups that run $18,000 to $20,000, and those are truly im-pressive. We also get parents who come in and say, "I need a salt-water tank and the fish from Finding Nemo. Make it happen." And we do.

You usually don't notice all the strange creatures you're dealing with, but sometimes a shipment will come in from South America, with something even we don't recognize. We have to pull out the textbooks. Probably the best part of my job is talking to people from all over the world. We have suppliers in Vanuatu, the Philippines—everywhere. Often their English isn't the greatest, but as soon as we start talking about fish, we really communicate. Fish are the common language that we speak."

"My husband, Serge, and I got Tyson three years ago. He's an American pit bull terrier, and he is the first pet we've owned as adults. We did a lot of re-search first, though. We found a reliable breeder on the internet, and called her veterinarian and her references. She's in the Okanagan Valley, and so we had to fly Tyson to Toronto, but we loved him right away. So, yes—we bought a pit bull over the internet. Our friends thought we were crazy, but if you knew us, you'd know that when other people say stay away from something, that just makes it more likely we'll do it. We love a challenge. Pit bulls are a short-haired breed, and they need a bit of cover in the winter. We looked everywhere, and we couldn't find any jackets that we liked, so I designed one. I had no previous sewing experience, but every time we went to the park, people would follow us and ask us where we got the jacket. That's how it started. We entered the One of a Kind craft show in Toronto last year and won the award for best booth, and that's when things really started to take off. I'm doing this full-time now, plus working as a graphic designer. The response has been amazing, and we've had plenty of requests for new products. But right now we're focused on ex-panding into the States and Europe with our current line. None of this would have happened without Tyson, of course. He's our muse."

Diana Fischer
English Nannies for Dogs Inc.
Toronto, started in 2002
My family moved to Ghana, West Africa, when I was 5. The company where my father worked had an aluminium extrusion plant. It was shortly after we arrived that I in-herited a small zoo from another businessman who was heading back to England. He had deer and monkeys and guinea pigs and rabbits, and they all moved into our gar-den. I've been living and working with animals ever since. I've trained horses and bred sheep, and for the past 20 years I've been training dogs. I believe in discipline and being firm with animals, especially when they're young. The most aggressive dogs come from homes where they are babied too much. That's fine once a dog is trained, but only after they have learned who is in charge. The leash is essential. In India, they will tie a baby elephant to a tree. The elephant learns that he can't move off that leash. As an adult, even though the elephant could easily pull the tree out of the ground, psychologically he doesn't believe that he can. He's learned the leash. But the most important part of what my daughter, Astrid, and I do is teach people how to use their voice and body language to project confidence to their dogs. We've been in homes where a child is being bullied at school, and the family dog will bully the child as well. If we can teach that child how to stand up for himself with the dog, then he will also learn how to stand up for himself at school. You can't be fake with a dog. A dog will see straight through you.

Dr. Karen Regan, Veterinarian
Animal Hospital of High Park
Toronto, started in 1986
Like a lot of little girls, I thought being a vet would be neat. It was my dream. It wasn't until I was in univers-ity and I got a job working with a vet that I realized I could do it. I loved every aspect of the job. That's when I decided to go to the Ontario Veterinary College in Guelph, and I've been working at the Animal Hospital of High Park ever since I graduated in 1997. Our clinic specializes in exotics and so-called pocket pets, so at any one time our waiting room can have mice, ferrets, reptiles, large dogs and any number of exotic birds. The birds will often be talking—and for a vet, it's a little distracting when your patients are talking up a storm in the waiting room. We didn't really learn much about exotic pets in veterinary college—there was only a single course when I was there. But the profession has come a long way in recent years. There are journals and ongoing education programs, and we also have a network of vets on the internet who deal with exotics. So when we come across something really unusual, we have a place where we can go to ask questions. I don't really like the term "pocket pets," which gets applied to small animals like hamsters and guinea pigs. There's something about the term that implies those pets are disposable. We believe that all animals should get the highest quality of care, no matter what their size, and the people who bring their pets here think the same way. Watching the animals get better and the bond that exists between the owners and their pets, that's some-thing to see. These animals are so well-loved. It's the most rewarding part of my job.

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Starting a Second Life Business

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A million dollars of virtual loot. It's a concept that's difficult to wrap your head around, but in November, that's exactly what virtual real-estate developer Anshe Chung accomplished in the 3D virtual world Second Life, in which users live "second" lives as avatars. When her entrepreneurial success story hit the press, it spread like wildfire, leading many to ask: What exactly are the business opportunities available in Second Life? Are people really turning their love for Second Life into a full-time business?

Marketers have already been exploring the world, with big-name businesses like American Apparel, Starwood Hotels, Scion and Cisco setting up virtual areas for their products--a store for American Apparel, a hotel for Starwood--in Second Life. Even Reuters has assigned a bureau chief specifically to the site.

If you've never visited Second Life--or even heard of it—here's a quick look at it. Second Life is a 3D virtual world where people use avatars to explore and commune with other people. It's often lumped in with such online games as World of Warcraft or Star Wars Galaxies (which insiders refer to as "massively multiplayer online role playing games" or MMORPGs), but it's a different beast. There's no slaying of dragons to level up a character or collecting weapons to prepare for battle, but you can buy and develop online real estate, import images to craft your own in-world creations, or attend a drum circle with avatars created by users from all over the world. Based on the futuristic Metaverse from Neal Stephenson's seminal sci-fi novel Snow Crash, Second Life aims to truly be a second life for users, with opportunities for both work and play.

It's the work element--the embrace of entrepreneurship--that's perhaps most unique to Second Life. Linden Labs, the creator of Second Life, has welcomed the entrepreneurial inclinations of its community in two important ways. First, Linden dollars, the in-world currency, are easily traded for U.S. dollars at an official currency site. Second, Linden has taken the remarkable step of allowing players to retain the copyright for their in-game creations. It's these aspects of Second Life that attract entrepreneurs like Peter Lokke.

Time to Quit the Day Job
Lokke started his online adventures in the 3D virtual universe There. It was "there" that he discovered his love for virtual clothing design. That's also where he met his business partner, Theo Lament, and it was Lament who introduced Lokke to Second Life in 2004. Once he'd learned how much more creative he could be in this new world, he was hooked. Linden's intellectual property policies also helped.

"When I found out how expressive I could be in Second Life and that I retain copyrights for the things I make, I knew I was in Second Life to stay," says Lokke, who lives in Brooklyn, while his partner Lament, whom he's never met face to face, lives in Milwaukee.

Lokke has never considered himself a gamer but he did enjoy tinkering with computer graphics. Creating online clothing came naturally, and after designing his own duds in There and Second Life, he found that others wanted them, too. "[My business] has grown from [generating[ a few bucks a month two years ago to selling more than enough to live on now," says Lokke, who goes by the name Crucial Armitage in Second Life. "And it's growing every month."

Indeed, 2007 may prove to be a watershed year for Lokke: He's quitting his 17-year job as a supermarket manager to make the 50 hours he already spends in Second Life as the owner of Crucial Creations his true, full-time career.

Julian Dibbel, an MMORPG expert who chronicled the year he spend trying to earn an income in Ultima Online in his book Play Money, says Second Life--and not MMORPGs--is the place to look if you want to make a virtual living online. For one thing, it's often hard to earn much in online games because they often shut down the accounts of those selling in-game items, since such activities are against the rules.

Another major issue with multiplayer game money-making, as opposed to Second Life, is that many foreign businesses have cornered the market on entrepreneurial opportunities using inexpensive labor and cheap overhead. Dibbel says this isn't yet an issue in Second Life. "What's not so easily off-shored is the really creative and culturally specific stuff, and that's what you see in Second Life."

What's also interesting about Second Life, says Dibbel, is that while you can be wildly creative, you don't have to be. The aforementioned Anshe Chung (real name: Ailin Graef), who was the first Second Life entrepreneur with a net worth of more than $1 million, made her cash through virtual real-estate dealings. The German resident has even gone real-world with her talents, starting Anshe Chung Studios, a 3D environment developer with offices in Wuhan, China.

Opportunities Abound
The number of opportunities available is really only limited by your imagination. Real estate is a big moneymaker, as evidenced by Chung's success. Even Lokke has a side business as a landowner, subletting property on the 10 islands he owns. There are also numerous opportunities for coders who want to build more complex creations using Second Life's unique scripting language.

Even a B2B community has sprung up. When Dibbel decided to promote Play Money in Second Life, the infrastructure already existed. He found a bookmaker to create a virtual version of his book, and a pre-existing vending machine to sell it in. "There's already a community of solo entrepreneurs there to fill the gap on a B2B level," says Dibbel. "If you have an idea you think would be a good thing to have programmed up, you don't necessarily have to do the programming at this point."

Next Big Thing?
In December, Linden Labs reported there were more than 2.3 million Second Life "residents" (avatars that people have created), and that number seems likely to continue to rise. Some have criticized this population figure as not being representative of the true user base because it includes people who visited Second Life only once and never returned, as well as users who have more than one avatar. Regardless, there's no doubting that Second Life's popularity is growing and the media circus surrounding the virtual lifestyle has exploded.

But the bottom line for entrepreneurs is, will Second Life really pan out? Or is it just hype, since the majority of people have never ventured virtually or even heard of it?

Possibly both. After all, there are a lot of people who could care less about blogging, but it's now a well-established publishing and marketing tool that's here to stay. The audience for blogs may not be universal, but it's big enough that some writers--like Heather Armstrong of Dooce.com or the four bloggers behind Boing-Boing.com--are bringing in a nice, full-time chunk of change for crafting their thoughts for the world.

Second Life may prove to be a similar venture. Your mom may never understand exactly what a 3D world is, or the point of an avatar. But enough other people do that a whole new class of entrepreneurs has been born to serve their needs. Just ask Peter Lokke.

Getting Started in Second Life
First and foremost, you've got to start visiting this virtual world. It's free to start an account, but tiered pricing levels will allow you more access to the world in the form of a Linden dollar allowance and the ability to own property. And you can't jump into a Second Life business--you've got to get to know the world and decide if it's the type of place you want to really build another life in.

From there, your personal interests will guide you to potential business ideas. (Check the list below for some ideas from Linden Labs.) You'll also want to start developing your own community of contacts. Much of the work in a virtual world business--like a real-world business--comes from networking and building a list of contacts and friends.

Finally, be prepared to spend a heck of a lot of time on Second Life. Just because it feels like a game doesn't mean your work will always be fun. Like any hobby-turned-business, the "business" parts can suck much of the fun out of what was once your passion. Be prepared to spend 40 or 50 hours, as Lokke does, on top of your normal, full-time job before you can break free and take it full time.

Second Life Business Ideas
On the Second Life website, the company lists the following businesses as some real examples of in-world enterprises run by residents:

• Party and wedding planner
• Pet manufacturer
• Tattooist
• Automotive manufacturer
• Fashion designer
• Custom avatar designer
• Jewelry maker
• Architect
• XML coder
• Freelance scripter
• Game developer
• Tour guide
• Real estate speculator
• Publicist

For the complete list, click here.

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High Performer Series: Appliancepartspros.com

Earn Residual Income Through Different Payment Methods

Roman Kagan has built a successful niche business selling hard-to-find appliance parts to do-it-yourself types around the country. The site was launched in 1999 featuring about 300 products and in seven years has grown to showcase more than 1 million parts for 170,000 appliance models. Along the way, the business has grown to about $5 million in annual sales with the site having about 150,000 unique visitors per month.

Why sell appliance parts?
I first had the idea of selling appliance parts online in 1997 while working for a local parts distributor and right after I placed my first order with Amazon. It was not until the end of 1999 that our first order was shipped. It took me about a month to make the first version of our site. There was no shopping cart. Orders were placed through a contact form. It's funny and maybe a little embarrassing looking back now, but I was very proud of it at the time.

What was it like for you in the early days with the business?
I was also working as an appliance technician back then. I would print out the orders from the site in the morning and then, during my lunch break, I would stop by my local parts store to fill them. Then on to UPS to ship them out. I did this for a couple of years.

In 2002, I was better prepared both mentally and financially to get more serious with the business. I quit my job, rented a small warehouse and hired a programmer. We began to work on the new version of the site.

A 16-hour work day was the norm, and I am very thankful for my wife's support and understanding. She's a very talented person and besides holding a full time job, she was (and still is) taking care of the financial aspect of the business, something I am really not good at. Everything we did was through trial and error and by watching and studying the "big shots" like Amazon. We spent countless hours trying to figure out the reason behind every aspect of their business and their websites. We took their sites for a spin, placing test orders to see how their system worked. It was an interesting process and I think we've learned a lot from it.

When you redesigned the site in 2002, what did you change?
It took about four months to finish the new site. We were very excited and anxious to see the results. We finally had a shopping cart. In addition, the site offered a searchable database of almost 1 million parts for about 170,000 appliance models, near real-time inventory, "my account" features and order tracking. There was also a pretty powerful backend program.

But as the new site was near its completion, I knew this was only the beginning. More functionality was needed, things to make it easier for both us and our customers. I also knew that it would take time and money, and I did not want to get stuck in the never-ending development stage.

So, the decision was made to launch the site, begin to acquire market share, gain experience and plan for the future. As the business began to grow, I was fortunate enough to convince my friend, Matt, to join the company. We used to work together for an appliance parts distributor some years back. He's one of the most knowledgeable people in the industry, but more importantly, he is someone I can trust and rely on completely.

Did you design the site yourself or hire a designer?
I designed every version of our site and our developer wrote all the script. I plan to have a professional designer in on the next version, but I assure you, I will be greatly involved in the process. After all, it is my baby.

Do you sell at online locations other than your website?
We haven't tried any channels other than our site. We do have a fairly large number of affiliates. More focus will be put on growing our affiliate program and utilizing shopping comparison sites in 2007.

How do you market your store?
We use pay-per-click extensively. In the beginning I was setting up and managing campaigns myself, and I'm probably pretty good at it. But then again, I was trying to do everything myself, because I didn't have money to hire someone, and because I didn't trust anyone.

I found that it's a very lonely and, more importantly, a slow way to grow your business. Now, I try to outsource as much as possible, I just make sure that I spend the time to find the best company or person for the job. We now have a reputable firm taking care of our pay-per-click campaigns, and I couldn't be happier. Traffic is up, while cost-per-click is down. Can't ask for much more.

Do you incorporate any email marketing?
One of the biggest mistakes I've made is not paying attention to email marketing. Lesson learned. This year, it will be a big part of our marketing efforts.

How does Appliance Parts Pros distinguish itself from other companies in the marketplace?
I think the main difference between us and our competition is that we have always put our customers and their repair problems first. Every business is out there to make money and be profitable. However, there are different approaches. It's always been my belief to do your best to take care of the customer, and the financial rewards will follow. And, I've yet to be proven wrong.

Do you manufacture any of your products?
We do not manufacture any product. Instead we sell the highest-quality, original appliance parts.

How do you acquire products for so many older appliances?
I think it takes a certain knowledge and experience and a willingness to go the extra mile. It is very easy to tell the customer, "Sorry, it's not available‚" especially when there is really not much demand for those old parts.

However, that's not the case when your business model calls for putting the customer first. So we make sure that first, we know what your 1950 O'Keefe & Merritt stove uses, and second, we make our suppliers stock it.

Do you offer a catalog of products?
We find that because of the nature of our business it would not be very helpful to publish a catalog. Most parts are model-specific, and our site does a very good job of locating the right part. We may be publishing a catalog for some of our wholesale customers though — for example, apartment maintenance companies or hardware stores.

What types of software/technology have you deployed to improve customer experiences?
We've been using live chat since 2002. It is very effective and our customers love it.

Our part search is extremely functional. By entering your appliance model, you will see it broken down by categories, with breakdown diagrams and a parts list for each category. This makes finding the right part very easy. Our customers tell us it takes them 3-5 minutes to find what they're looking for, less time than it takes just to sit on hold trying to contact the manufacturer or a local parts store.

Our cross-reference database is very powerful as well. Manufacturers may change part numbers for a part 10-12 times in 20 years. Let's say you take a part number off your 20-year-old dryer timer and put it in our part number search. It will go through every change and bring back the most current and correct information. I've been told that part distributors across the country are using our search on a regular basis.

What shopping cart do you use?
We built our own shopping cart. It made sense, since we built the rest of the site ourselves. However, I know there are excellent shopping cart scripts out there and I wouldn't think twice about using one of them under different circumstances.

Is search engine optimization a priority for your site?
SEO is a very high priority to us, especially with extremely high pay-per-click costs. ‚"White hat" SEO is the only way to go. It may be more difficult and it may take much longer to achieve good results, but it makes much more sense to be patient and see great results long term than to try to get results overnight — only to see your site banned from the search engines.

Also, find a reputable SEO company or person and pay them what they want. Don't even ask for a discount. One hundred thousand dollars a year? Fine. Just make sure they are good.

Any particular struggles in the early days you can share that can serve as an inspiration to young companies building a business?
I think the most important thing is to stay focused. Plan everything out, then work according to your plan. Do not expect quick results. Something you do today may not bring any results until six months from now. This is especially true with SEO and bringing traffic to your site. It can get a little frustrating, so telling yourself to be patient and stay focused will help greatly.

I found that there are a lot of advice- and opinion-givers out there, whether you asked for it or not. And, more often than not, their opinion and advice are based on their experiences and set of mind. Obviously, there are a lot more losers than winners out there, people that had given up but need to justify their failure to everyone in a form of an advice. They may actually think they're trying to help you.

I can't tell you how many times I've been told to quit, get a job, do something this way or that way, and that's from people who never owned a business or achieved any success. You may be the type that likes to hear things like that, if only to prove them wrong, but I prefer to keep away and stay focused instead. I've been very lucky, though, to have a supportive wife and parents.

Were there any mentors that helped you along the way?
Back when I was working for a local parts distributor, my manager, Dan Doti, really taught me a lot both about the parts business and, more importantly, how to run a store. I was 18 to 19 years old and foolish at the time, and I really didn't have any business discipline or knowledge. He really helped me a lot with that and showed me the ropes. Most of the things that helped me with this business I probably picked up from him. He's been in the parts business for a long time, and I really appreciate what he's done. I probably couldn't have done it without him.

What advice would you give to an ecommerce novice trying to decide which direction to take?
Take care of your customers. Be honest with them. They will spread the word and be your best sales team. Don't give up. The Internet is a wonderful thing. With so many opportunities, I wouldn't dream of doing business any other way.

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