When Cyrus Massoumi ruptured his eardrum (during a flight), he tried to find a qualified ENT. Unfortunately, the process took a grueling four days.
Interestingly enough, this experience was the spark for an interesting venture: ZocDoc. In fact, the company recently announced a $3 million round of funding from Khosla Ventures.
True, the online healthcare space is fairly crowded with major players like Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT). However, while they are focused on medical records, ZocDoc's mission is on something that often gets neglected – searching and scheduling of physicians. With ZocDoc, patients can search the database on criteria such as specialty, location and insurance qualifications (which can be critical). All in all, it's an interesting idea with a large market potential.
As of now, ZocDoc is only limited to Manhattan and Brooklyn. Moreover, the site has only a few specialty categories, such as dental and dermatology. But all this should change soon since the company now has some capital to move things forward.
Currently, the site has about 30,000 registered users and the growth rate is a torrid 50% per month -- an indication there is a serious need for the service.
Starting a business can take months -- and can be expensive. Also, it's tough to anticipate some of the problems you'll run into. That's why buying a business can be a good alternative.
Basically, this is like any other business loan. However, the main difference is that the loan is guaranteed up to 85% from the SBA, which is a federal program. Because of this, there are usually advantages versus conventional loans, such as:
Longer terms (10 years for the business, and 25 years if there is real estate involved).
Lower interest rates (prime rate plus 2.25% to 2.75%)
Lower down payments (20% to 30% or so). In fact, the down payment also includes seller financing.
OK, what does it take to get such a loan? Let's take a look.
John W. Nichols, who is the co-founder of Devon Energy (NYSE: DVN), died recently. He was 93.
As should be no surprise, his life provides many lessons for budding entrepreneurs. Interestingly enough, his innovations were not necessarily about creating new products. Instead, he was an innovator of finance.
Nichols started his career as an accountant and audited the financials for oil companies. Leveraging this experience, he started an oil company in 1941. With sky-high income taxes, Nichols structured innovative financial vehicles to minimize the bite from Uncle Sam. For example, he was the first to register a public oil & gas drilling fund with the Securities and Exchange Commission.
And it was a hit -- he attracted large sums of capital from wealthy individuals (even Hollywood stars like Barbara Stanwick).
No doubt, Nichols biggest feat was the creation of Devon. He formed the venture in 1971 with the help of his son, a lawyer.
The financial innovation didn't stop as Nichols developed the so-called royalty fund, which became a standard in the oil industry.
It was also a big spur for growth. After all, Devon is today a $43 billion company.
Former Google, Inc. (Nasdaq: GOOG) engineers recently launched a new-fangled search engine, called Cuil. The goal was pretty ambitious; that is, to be the next Google.
Well, the debut was shaky, as the online reviews were mostly negative. Basically, the quality of the search results were lackluster -- and the overall performance was erratic.
No doubt, in the social media world, things can get brutal. Yet, it's something that many businesses need to think about.
Dany Levy, who got her start as a journalist, is the mastermind behind the highly successful email newsletter platform, the Daily Candy (established in 2000). She even got investment capital from top players, such as Bob Pittman (the founder of MTV).
Well, this week Comcast (Nasdaq: CMCSA) agreed to shell out $125 million for the Daily Candy.
Basically, the Daily Candy is a purveyor of hip/fashionable content – geared to women. True, there are only 2.5 million email subscribers. However, they are highly desirable for advertisers. The Daily Candy's user base has a median age of 31; has $75,000 in income; and 96% read the email every day. Oh, and 66% of them have purchased something they read about from the Daily Candy.
Currently, there are local editions in 12 cities. Although, with the heft from Comcast, I'm sure this number will expand. There should also be some nice synergy with the advertiser base as well as cable assets like the E! Entertainment channel.
Founded in 2002 – during the dark times of the Internet – Friendster became one of the pioneers of the social networking space. The company quickly got traction and even attracted the interest of Google (NASDAQ: GOOG). But, of course, MySpace and Facebook had ultimately beat out Friendster.
Yet, the plucky website hasn't given up. In fact, the company has announced a $20 million round of venture capital. The investors include heavyweights like IDG Ventures, Kleiner Perkins Caufield & Byers, Benchmark Capital, DAG Ventures and Founders Fund. In all, Friendster has raised $50 million.
Actually, Friendster is ranked as the 9th most trafficked site in the world, with a heavy penetration in Asia where it is the #1 social networking platform. There are about 75 million registered users.
Interestingly enough, Friendster has a broad portfolio of patents, which perhaps can be used as leverage when combating its rivals. What's more, the company has done quite well in terms of adding features and providing a good user experience.
To help keep things on the right track, Friendster has hired Richard Kimber as its CEO. He was formerly a regional managing director of South Asia for Google. Apparently, he'll be spending much of his time in Asia, trying to put together partnerships.
While social networking seems to be maturing in the U.S., there still are great opportunities in foreign markets. Furthermore, with $20 million more in the bank, Friendster can broaden its footprint and perhaps be a hot property for an acquisition.
Like many others, a friend of mine is having troubles with her business. And, to keep going, she needs an infusion of capital. However, because of the credit crunch, she can't get a loan.
So what are the alternatives? Well, she is thinking of raising money from friends and family (F&F). In fact, she thinks she can get about $100,000 or so -- which is enough for her current needs.
But, of course, she's concerned about the process. What if she is late paying back the loan? What if the economy suffers for a long period of time?
Well, here are some things to consider:
Act as if you're preparing a pitch to a venture capitalist: No doubt, you can get into a lot of trouble if you get F&F funds on an informal basis. Simply put, you are vulnerable to misunderstandings.
Take Tony Seba, who started PrintNation.com. To launch the business, he raised $500,000 from his mother and brothers.
However, he pitched his deal in a professional way. For example, he put together a business plan and investor presentation (which took several months). He also assembled the necessary legal documents.
Over the years, I've started several businesses. All in all, the process has been exciting. But, at the same time, there were lots of risks and frustrations.
So, if you're thinking about making the leap, what are some things to consider? Let's take a look:
1. Know your industry: I read lots of business plans. And, one common theme is: the entrepreneur has only a sketchy understanding of the industry and competition.
And, I think this can be a dangerous sign.
However, with the internet, you can get a great understanding of an industry. For example, you can look at trade association websites, industry publications and even government sources.
2. Write an executive summary: With your industry research, this should be easier to do. Also, specify the business model (how do you make money?); the competition; a forecast and key milestones; and marketing strategies.
Make this simple and concise (hopefully the summary is only one page).
The smart money continues to pour into social networking deals. The latest comes from a tier-one VC: Kleiner Perkins Caufield & Byers.
Today, the firm announced a $29 million round for Zynga Game Network. Essentially, the company combines two hot categories – social networking and casual games.
No doubt, this deal is a big validator. After all, Kleiner only cares about companies that have the potential of being game-changers.
So, what makes Zynga different? Well, for the most part, the company has devised innovative techniques to create highly addictive games (some say the process is scientific). Plus, there are opportunities to expand onto mobile platforms and to even create virtual worlds.
Keep in mind that Kleiner has invested in a variety of break-out gaming companies in the past, such as Electronic Arts Inc. (NASDAQ: ERTS). In fact, a Kleiner partner, William "Bing" Gordon – the former CEO of EA – will come on the board of Zynga.
Some people are startup junkies. No doubt, they want to snag a job in a company that becomes the next Microsoft (NASDAQ: MSFT) or Google (NASDAQ: GOOG).
So, where can they go? Well, there's a new spot: Startuply.
In fact, the service is free, a good thing for cash-strapped startups.
Basically, a company puts together a profile -- so far, there are 176. But it goes beyond the typical fare. For example, there's information on such things as the work environment , funding, names of investors, revenues and so on.
Besides a sophisticated search engine, Startuply has Web 2.0 features like RSS, widgets, Google maps and social bookmarks.
Startuply is still nascent – there are 690 job postings -- but it should be a good resource for the startup crowd.
Austin Logistics got its start about 15 years. And, perhaps the company was ahead of its time. You see, Austin Logistics is a leader in so-called event-based analytics solutions (EBAS).
It's a mouthful, but it's also a growth business. Essentially, EBAS analyzes customer interactions so as to boost profitability. And the focus is primarily on the collection of debts.
Well, this week Austin Logistics secured a third round of venture capital (the amount was not disclosed). The investors include Baird Venture Partners, Apex Venture Partners, Total Technology Ventures, and North Hill Ventures.
Moreover, Austin Logistics hired a new CEO, John Carreker III (prior to this, he was an executive vice president and managing director of Carreker Corporation, which was sold to Checkfree in 2007).
Keep in mind that Austin Logistics' technology can essentially predict -- in real-time -- the odds of an opportunity or the risk of an interaction (called Decision IQ). For example, in one case the system helped a company reduce charge-offs by $10 million (in a single portfolio). In another situation, there was a $1.8 million cost savings with collections.
No doubt, with the subprime mess and other credit implosions over the past year, there is certainly a big-time need for Austin Logistic's offerings.
From some of the companies I've talked to, the results from advertising on LinkedIn have been fairly strong. Then again, the website is the largest and fastest growing professional network, making it much easier for targeting.
Well, LinkedIn is improving things even more. That is, the company has launched LinkedIn DirectAds. As the name implies, this is a self-service system.
Of course, this may not be the best option for major advertisers that need sophisticated campaigns. But, for small companies, this solution can be ideal (hey, just look at the success of Google AdWords).
And the targeting for DirectAds is highly granular. For example, you can select a myriad of industry categories, such as CPAs, graphic designers, and so on. Or, perhaps you want to focus on sales executives or CEOs? Keep in mind that LinkedIn has 20 million registered users (with extensive profile information on each).
Getting started is easy. The process takes a few minutes and the minimum fee is $25.
Every day, I get a variety of media pitches from companies and PR folks. No doubt, I try to evaluate all of them.
The problem: some of the pitches don't work. As a result, a company may miss an opportunity to get some exposure.
However, there are some strategies to improve things. So, let's take a look:
Know the journalist: Most of us focus on certain topics (or have a so-called beat). Thus, read some of a journalist's work. If he or she doesn't cover your industry or market focus, then it's probably a waste of time to make a pitch.
Now, for those who are a right fit: put the journalist's name in a notebook or a database (there are free online offerings, such as Zoho). You might also look at other publications the journalist writes for. Oh, and it's a good idea to keep reading the journalist's work. To this end, you might set a filter with something like Google (NASDAQ: GOOG) News.
Craft a personalized pitch: OK, I will respond to a canned pitch. But, it better be highly targeted.
A group of tech veterans -- DD Ganguly, Jayant Pandit, Saurav Mohapatra, Sundar Subramanian and Rohit Shankar – have worked on various projects, despite being in far-flung places across the globe. They did so by leveraging free technologies such as Skype to help manage things.
However, they also wanted to share screens, but couldn't find anything for it as the conferencing software was either too expensive or complicated. So, they started a new company: Dimdim.
That was in 2006 and, as of now, Dimdim is getting lots of traction. In fact, the firm has raised $6.4 million in venture capital. The investors include: Index Ventures, Nexus India Capital and Draper Richards.
Dimdim is available as downloadable open source software. There is also an on-demand version.
For the most part, Dimdim is gunning for a large market opportunity. For example, Cisco (NASDAQ: CSCO) purchased WebEx for a whopping $3.2 billion. Other major players in the space include Microsoft (NASDAQ: MSFT), Citrix (NASDAQ: CTXS) and Adobe (NASDAQ: ADBE).
So, if Dimdim can develop an enterprise-ready version and can provide it on a low-cost basis, the impact could be highly disruptive. And now, the company has some capital to give it a try.
Let's say you want to sell or buy a business. Or, suppose you want to gift a piece of your business to your family. Maybe you want to raise capital?
Well, you'll need to determine the value of your business.
So, to get some perspective on the topic, I spoke to Scott Gabehart. He has valued over 700 businesses since 1991 and has written several books on the topic, such as The Business Valuation Book (with CD-ROM).
According to him, there are several approaches to getting a valuation:
Do-It-Yourself: Yes, the valuation process can be extremely complex. But Gabehart has an easy system that will provide a rough estimate.
First, you will need to calculate your company's adjusted cash flow (ACF). This is:
Net income + Your salary + Your perks (personal travel, discretionary expenses) + Depreciation + Interest expense
After all, it's common for owners to use their business to pay for personal expenses. Thus, it's important to factor our certain items (for example, depreciation is a non-cash expense).
When Cyrus Massoumi ruptured his eardrum (during a flight), he tried to find a qualified ENT. Unfortunately, the process took a grueling four days.
Starting a business can take months -- and can be expensive. Also, it's tough to anticipate some of the problems you'll run into. That's why buying a business can be a good alternative.
John W. Nichols, who is the co-founder of 
Former 
Dany Levy, who got her start as a journalist, is the mastermind behind the highly successful email newsletter platform, the 
Founded in 2002 – during the dark times of the Internet – 
Like many others, a friend of mine is having troubles with her business. And, to keep going, she needs an infusion of capital. However, because of the credit crunch, she can't get a loan.
Over the years, I've started several businesses. All in all, the process has been exciting. But, at the same time, there were lots of risks and frustrations.
.
The smart money continues to pour into social networking deals. The latest comes from a tier-one VC: Kleiner Perkins Caufield & Byers.
Some people are startup junkies. No doubt, they want to snag a job in a company that becomes the next 
From some of the companies I've talked to, the results from advertising on 
Every day, I get a variety of media pitches from companies and PR folks. No doubt, I try to evaluate all of them. 
A group of tech veterans -- DD Ganguly, Jayant Pandit, Saurav Mohapatra, Sundar Subramanian and Rohit Shankar – have worked on various projects, despite being in far-flung places across the globe. They did so by leveraging free technologies such as Skype to help manage things.
Let's say you want to sell or buy a business. Or, suppose you want to gift a piece of your business to your family. Maybe you want to raise capital?
(with CD-ROM)
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