Saturday, June 30, 2007

On Unsolicited Advice


The Strange Story of the "Crackpot" Mail-Order Prophet

Once you start your own business, the advice pours in from all sides: Your sister has a great idea for a marketing campaign. Your brother thinks you should get a franchise. Your father wants you to be tougher on your employees. And your mother, who's worried about you, suggests that maybe you should really be looking for a job.

Unsolicited advice doesn't just come from family members. Friends, lawyers, accountants, even strangers you meet at networking events or soccer games suddenly become experts when they learn that you own your own business.

It's a jungle out there. Of course, you could just ignore them all and go your own way. But some people have good ideas and insight. How do you know who to listen to and who to ignore?

Here's a handy guide for determining what advice to pay heed to, and who you should politely thank and say, "Could you pass the cheese plate please?"

• Experienced businesspeople in your industry: Listen hard to these folks! Novice entrepreneurs often believe they know better than those who've been around a long time. But the realities of an industry don't change quickly. You can learn a lot from those who've been in an industry. So listen closely even if you don't follow their advice to the letter.

• Customers: You'd better be listening to your customers, because they're the ones who determine whether you stay in business. It's tempting to dismiss the advice of customers because it often comes in the form of complaints. Instead, look for ways to gather as much insight and suggestions from customers in positive situations. Ask for their feedback.

• Employees: Your employees can be a rich vein of insight and advice for your company. Seek it out, listen to it carefully, and use it when you can. Create an environment where employees know their advice is welcome, valued, and given a careful hearing. Employees often know the ins and outs of some aspects of a business better than the owner.

• Investors: Your investors are, in essence, your partners, so the advice-giving and advice-taking process is a two-way street. It's part of your job to help your investors know enough about your business so that when they give you suggestions, it can be informed and well-reasoned.

• Board and advisory committee members: In most cases, people serve on your board of directors or advisory committee because you've asked them to, so their advice should be given great respect. Board members (of corporations) have legal authority, so board decisions must be followed.

• Friends and family: Your family's support is often essential for major business decisions, especially financial ones. If you're taking a home equity loan, for instance, you certainly must have your spouse's approval. In which case, they have a right to have their suggestions listened to with respect.

But on other decisions, remember, people close to you have their own motivations and their own fears coloring their advice. When your spouse suggests you'd be a lot more productive if you didn't work in the living room, he or she may just want to get your stuff out of the way.


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Thursday, June 14, 2007

How To Own A Multimillion Dollar Mansion For A Fraction Of The Cost.


10 Ways to Achieve Success as a Lifestyle Entrepreneur

http://www.mprivateresidences.com/

If owning a $2-million to $3-million home complete with tennis courts and a waterfront location in Cabo San Lucas sounds appealing, Calgary-based M Private Residences has a deal for you. Think of it as a time-share on a whole new level. "We specialize in the shared ownership of luxury vacation properties around the world," says co-president Paul Poscente. "The word 'ownership' is key and differentiates us from time-shares. Each investor actually owns an undivided interest in our properties and gets the luxury of travelling to those properties." In other words, this investment property doubles as a getaway home.

Currently, there are 12 luxe homes in M's stable. By the end of the year, there will be 13 homes in six countries. There are two types of shares: class A and class B. When the company was founded in September 2004, A shares were going for $340,000. They're now up to $465,000. Investors who go with the premium shares are entitled to 60+ days of time per year at any one of the homes, explains co-president Ken MacLean. They also pay $20,000 in annual dues for maintenance fees and elaborate concierge services. Class B shares go for $265,000, with $12,000 in annual dues, and allow for 21+ days of use per year. "You're allowed to book a month of time up to two years out," explains MacLean, "excepting Christmas and Easter, which is lottery-based."

Douglas Gray, a former real estate lawyer and author of 23 books, including Making Money in Real Estate, says M's business model is intelligent and eclectic. "They've taken the best of all the investment options out there and blended them into this opportunity," he says. "It's a natural evolution. It will be a good fit for a select group of sophisticated investors." So far, about 90% of M's clients are Calgarians, but the company is expanding east. As the number of investors grows, so does the portfolio. "For every six shares we sell, we buy a house," says Poscente. What's the latest location under review? A property in Italy with its own olive grove and vineyards. "In the morning, you go and test your grapes," says Poscente. "It's living the dream."

[Via Canadian Business]


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Saturday, May 26, 2007

How Sigmund Freud Helped A Man Sell Couches Worth Thousands Of Dollars


Making $700,000 A Year By Letting Customers Design Their Own Jewelry

Psychoanalysis, the treatment originated by Sigmund Freud more than a century ago that requires patients to lie on a couch and say whatever comes to mind, has been battered in recent years by everything from antidepressants to skepticism to managed care that doesn't pay for such long-term therapy.

So who in his right mind would want to launch a company that makes psychoanalytic couches?

It takes an entrepreneur who believes that businesses considered antiquated are underserved niches with perhaps more staying power than trendier enterprises. Randall Scott Thomas, a Seattle furniture maker, knows psychoanalysts are a minority among mental health counselors these days. But thousands are either in training or in practice, and many have trouble finding the appropriate couch.

Mr. Thomas, who makes contemporary home and office furniture, has never undergone analysis himself and didn't know what a classic analytic couch looked like until a few years ago. He was approached by Doene Rising, a Seattle analyst who was starting a private practice and couldn't find a couch to her liking at any furniture store. She was familiar with his work and showed him a picture of one that she had found in a magazine -- an armless, backless, chaise-like bench, with a built-in headrest, designed for reclining, not sitting. She told him she wanted something similar. Instead of traditional leather, she wanted cloth upholstery, and chose a deep blue fabric.

"Leather can be cold, and I wanted something inviting, but something classic that said to my patients, 'This isn't for sleeping on, it's for reflecting on,' " Dr. Rising says. She and other analysts believe that when their patients recline and the therapist is sitting out of sight behind them, patients feel freer to explore their fantasies and talk about their deepest, darkest desires and fears. (The technique, of course, has sparked numerous cartoons of analysts asleep in their chairs, while their patients drone on.)

For the 47-year-old Mr. Thomas, the biggest design challenge was refining the angle of the headrest. "You don't need lumbar support when you're lying down, but you do need your shoulders and head supported well," he says. "And you need to be propped up enough that you don't fall asleep or roll over -- or sink into a too-soft cushion."

The completed couch was a hit with Dr. Rising as well as several of her analyst colleagues, who placed orders with Mr. Thomas. Since then, he has designed five styles, ranging in price from $1,550 to $3,080. Most have the same measurement (29 inches wide by 80 inches long) but different upholstery and leg styles.

The recent launch of his Analytic Couch Co. coincides with the biannual meeting of the American Psychoanalytic Association, which starts tomorrow in Seattle. Recognizing a sales and marketing opportunity, Mr. Thomas persuaded the association, which expects about one-third of its 3,300 members to attend, to allow him to exhibit his couches. Until now the association has limited displays at its meetings to books for purchase, "but I thought we should tell our members about more products and services they need, so it seemed like a good idea," says Dean Stein, the group's new executive director.

Mr. Thomas faces some competition. Prestige Furniture & Design Group in New York City's Queens borough, for one, has been making analytic couches for more than 50 years. During the heyday of psychoanalysis in the 1960s and 1970s, when most residents in psychiatry received some analytic training, Prestige sold thousands of couches to medical-supply companies, which in turn sold them to hospitals and psychiatrists. "We had a factory devoted just to this," says 75-year-old Fred Brafman, one of the company's founders.

Prestige still makes six analytic couch models, some of which have been used as props in theater productions and movies. They range in price from $900 to about $6,000, and must be custom ordered. "The demand isn't what it used to be," Mr. Brafman says.

He also has a list of what design features to avoid. Loud or busily designed upholstery, he notes, can distract patients. "One analyst returned a couch once because a patient was seeing faces of animals in the upholstery," Mr. Brafman says. Prestige also no longer makes couches with buttons, "because anxious patients rip them out," he says, or an adjustable headrest model, because the up-and-down lever mechanism broke frequently.

Unlike Analytic Couch, whose designs are more contemporary, Prestige doesn't have a Web site for online orders and it doesn't advertise much. Many analysts say they haven't known where to shop for a couch when furnishing their offices. "We can help analysts find office space and even patients, but it's hard to know where to send them for a couch -- and we get inquiries about this all the time," says Matthew von Umwerth, the librarian at the New York Psychoanalytic Institute who is in training to become an analyst.

Sigmund Freud's famous leather couch, which he draped in colorful Persian carpets, remains the standard bearer -- and it is on display at the Freud Museum in London. He didn't have to shop for it, however, since it was a gift from a patient. His use of it stemmed from his early method of hypnotizing patients. While he thought patients who reclined on a couch would more readily confront their repressed anxieties, he admitted he had a "personal motive....I cannot put up with being stared at by other people for eight hours a day (or more)," he wrote. "Since while I am listening to the patient, I, too, give myself over to...unconscious thoughts, I do not wish my expressions...to influence what the patient tells me."

A couch is just a couch for some analysts, who say they would rather use an ordinary living-room model. When Prudy Gourguechon, a Northfield, Ill., analyst, purchased a custom-designed analytic couch a few years ago, "my patients wouldn't go near it," she says. "It was way too formal, and they missed my ratty old sofa that had a back and made them feel enclosed." She ultimately gave away the classic couch and purchased a standard living-room leather sofa at a department store.

However much they mull what couch to purchase, a bigger decision involves the chair analysts themselves sit in. Anticipating this need, Mr. Thomas has designed a leather armchair that retails for $1,899 and offers, he says, solid back and neck support. "You're sitting all day long, so you better find something very comfortable," says Leon Hoffman, a New York analyst.
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