what healthcare reform means for your business

ENTREPRENEUR.COM
MaRCh 2011

everything
you need
to know
about mobile
commerce

how to
create a
mobile
website

’trep style
the ultimate
nerd
makeover

a retail
renaissance
Cyriac Roeding’s shopkick mobile app
is getting customers back into stores
 WorldMags

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ItÕs not from the future.

It just acts that way.

TM

HTC ThunderBolt
htc.com

Available at and

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 contents//03.2011
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44 BUSINESS
IN MOTION
azzy app isn’t
Rolling out a sn ur business
the
80
Airport fo
first class.
od
HAUTE HUB
DINING
ge ts upgraded to

t yo enfeld
only way to ge d By Bruce Scho
sm ar tphone-obsesse
noticed by -friendl y

84
hy m ob ile
consumers. W strategy.
itical to your
websites are cr STYLE WISE t
a
By Dan O'She Justin Bieber’
s go
nt ne rd ’s
m: Gia
nothing on hi

50
e
ll Wei db erg gets a styl
Randa ge ek -in-
THE NEW goes from
EY makeover and
SMART MON chief to head
hottie.
ile
number? Mob By Erin Weing
er
Can I get your
es purchasing as
commerce mak ne at
g your smartpho

94
simple as wavin tting your phone
inpu
the register or LET’S GET IT
r online.
numbe
eny STARTED
By Jason Ank se for would-b
e
This crash cour ore hard-core
is m
entrepreneurs

75
llege
n you pledged your co -
HOOL than whe od uc
REFORM SC d a lot more pr
fraternity—an W eekend.
el lik e the to Startup
If you fe
is more tive. Welcome
legislation g
amblin
new healthcare keeping Lindsay By Regina Schr
an
complicated th e’re

100
n in rehab, fear not—w
Lo ha th ro ug h what
u sort
here to help yo . THE
ow R
you need to kn CROSSOVE
llot
By Craig Gui orate world to
From the corp siness
nership—how bu
franchise ow sition.
e tran
owners make th
By Jason Daley

TH
26 T
O
H
F
E
R
R
E
E
TA
B
I
I R
L biggest
106
This is spinal
chiropractic se
HEALTHY
RETURNS
tap. Actually,
rvices m ak in
it’s
g its
PHOTO© DAVID J OHNSON

o b il e ap p addresses the 1 on our Top

N ew
tion-based m opping: debut at No.
Shopkick’s loca face in the era of online sh Franchises list.
ilers
challenge reta eo p le into their st
ores. By Tracy Stap
p
t m o re p
how to ge
eny
By Jason Ank

NKICTKH E COC V ER: OTOGRAPHED

OOP CEO CYRIA
ROEDING PH
P WEEKEND
DIRECTOR
SH TU
HNSON. STAR ED BY RICK DAHMS.
BY DAVID JO PH
R PHOTOGRA
MARC NAGE

WorldMags
2 Entrepreneur // March 2011
 WorldMags

That’s why, if someone’s sick or injured, we pay cash directly — faster than our top competitors.
Aflac is like a safety net, helping pay costs that major medical doesn’t cover; and we pay claims in an

When it comes to claims, no one likes pit stops.

average of four days, speeding your benefits into victory lane. Because when it comes to your employees
and their families, second place isn’t good enough. Race over to aßac.com/paysfast and get started.

NAD1122

ACCIDENT | CANCER AND CRITICAL ILLNESS | DENTAL | VISION | HOSPITAL INDEMNITY | LIFE | DISABILITY

Individual coverage underwritten and offered by American Family Life Assurance Company of Columbus. In New York, coverage underwritten and offered
by American Family Life Assurance Company of New York. Some policies may be available as group policies. Group coverage underwritten and
offered by Continental American Insurance Company. Policies may not be available in all states. Aflac pays cash benefits direct to the insured, unless assigned.
Aflac processes most claims in an average of four days. For Continental American Insurance Company, the average is five days.

WorldMags
 contents//03.2011
WorldMags

14 EDITOR’S NOTE
Yes, it’s temperamental,
but you shouldn’t smash your smart-
phone. Mobility has the potential to
transform your business. Embrace it.
By Amy C. Cosper

16 FEEDBACK
Our Facebook fans re-
spond: How important is your staff
to the success of your business?

20 YOU SHOULD KNOW

Don’t call him a hippie:
Author Richard Florida was pushing
for local and sustainable way before
you started buying organic kale from
the farmers market.

22 ASK A PRO
Am I crazy to buy a
business instead of starting one?
19 WARD:

24 JARGON
What is: that guy who
left Google for a younger company?
GOING FOR
ESS
B U S I NU
U N U Ss withA L
that
You want frie

37
onscious
soap? An eco-c

42
out a way
TECH: couple figures
patrons to
SHINY OBJECT for restaurant VOIP HITS THE ROAD
ds with
Logitech’s new HD Pro Webcam C910 wash their han VoIP: It looks weird writ-
oil.
lets you see the good, the bad and the used cooking ten out, it’s fun to say and—if you do the
weird mole on your client’s face during math right—it can help you save money
online business chats. on your telecom costs.

38 SHARPER IMAGES
40 CAN’T LIVE WITH IT,
CAN’T LIVE WITHOUT IT 42 SIGN ON THE
DOTTED PIXEL
PHOTO© J EFF CLARK

Capture every awkward

moment of your company’s holiday Don’t be a Zucker. Facebook’s new Put your John Hancock, virtually.
parties—with clarity and precision— e-mail messaging system might help
with one of these cams. you better manage your contacts—or
waste your time.

WorldMags
4 Entrepreneur // March 2011
 WorldMags

I’m mobile.

Process paperwork practically anywhere with the mobile

ScanSnap S1100 document scanner. On-the-road doesn’t mean out-of-
pocket when it comes to office resources like scanning paperwork for sharing or to file
electronically. Just plug-in USB power and scan business cards directly to contact lists.
Press one button to scan paperwork directly to email, searchable PDF, JPEG, or to
applications like Word and Excel®. You can even scan to Evernote® or Google Docs™ and
C retrieve your paperwork from just about anywhere. The ScanSnap S1100 helps you spend less
or P
Mac
00 for time on paperwork so you can spend more time chasing down the next big thing.
11
Sn ap S
S can Check out ScanSnap. While youÕre there, enter to win a Gift Card.
Visit http://us.fujitsu.com/entrepreneur

© 2011 Fujitsu Computer Products of America, Inc. All rights reserved. Fujitsu and the Fujitsu logo are registered trademarks of Fujitsu Ltd. All other trademarks are the property of their respective owners.

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 WorldMags

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 WorldMags

WE TAUGHT
the Arizona Cardinals
A NEW WAY
TO THINK
about business.

When the Arizona Cardinals wanted a fresh perspective on their

fan experience, they turned to our team at Disney Institute; and

they’ve been scoring touchdowns with their fans ever since. Disney

Institute delivers unique professional development programs, built

on the real life practices of Disney. A global leader in everything

from customer service to leadership excellence, our customizable

programs have re-inspired thousands of organizations. Now it’s your

turn. Give us a few days and we’ll have you seeing solutions where

you only saw problems and discovering opportunities where you

thought none existed. Are you ready to D’Think?

Your place or ours, individuals or entire organizations,

one day or two weeks, anything is possible.
Visit DisneyInstitute.com/dthink
©Disney or call 407.566.2620.

WorldMags
 contents//03.2011
WorldMags

57 ONLINE IDEAS:
WEBSITE TO WATCH
Goodreads is a nerdy bookworm’s
fantasy: Organize your library online,
66 LEAD GEN
How one retailer gave
customers gas—and used a location-
based app to drum up business.
92 COLLEGE STARTUP
Gemvara engages its
customers with jewelry options they
can customize themselves.
rate what you’ve read and share books By Brian Quinton By Joel Holland

68 93
with friends.

58 BUILD A WEBSITE
Having a wizard of a
MONEY
Daily Grommet
believes in angels. The online com-
STROKES OF GENIUS
Small ingenuities that even
make working at Dunder Mifflin exciting.

122
webmaster is key for your site. Gan- munity that promotes cool, unique
dalf and Dumbledore are probably products prefers angel investors over
busy, though. VC firms—for now.

69
By Mikal E. Belicove FRANCHISE INK

62
This isn’t
Frogger: Michael Falgares earns the
WHEN MONEY IS DUE new high score with Gamin’ Ride, a
LINKED Before you OK an IOU, mobile gaming theater in a trailer.
What’s that? I wasn’t make sure you have all the info about
listening. Be succinct if you want to extending credit to your customers.

70
hold your audience’s attention.
By Chris Brogan

65
IS SUBLEASING
A SOLUTION?
DOING GOOD Being a landlord can be tricky. Our
Shane O’Neill’s clothing advice: Don’t rent to anyone named
line is going to the dogs—literally. Roy- “The Situation.”

72
al Bitch Couture donates half its profits
to support pet population control.

YOUR MONEY
Give credit where it’s
due, and be smart about using plastic.
By J.D. Roth

88
124
START IT UP:
WACKY IDEA
Photo© J EFF CLaRK Photo© nataLiE bRasington

If you love surprises, let this company

plan an event for you. If you break out OPPORTUNITIES
into a sweat reading Choose Your Own Nancy Herrington is
Adventure books … maybe don’t. the Ms. Fix It of her community—as the

90
owner of a Mr. Handyman franchise.

STARTUP FINANCE
Getting a grant for your
SMB is a piece of cake, as long your
niche is spasmodic dysphonia or focal
cognitive deficits.
136 BACK PAGE
Let’s learn from
Tiger and Favre, shall we? Take our
mobile manners quiz to avoid a
By Kate Lister messy mishap.

WorldMags
8 Entrepreneur // March 2011
 WorldMags

Unlimited 4G data
for the unlimited ways
you do business. Get unlimited 4G email, text and
Web on a wide range of 4G devices like the HTC EVO™ smartphone and
the new Dell ™ Inspiron™ 11z notebook. No data caps. No worries. When
productivity meets mobility at blistering 4G speeds, it’s truly business
without limits. Only from Sprint. 1-800-573-8288 sprint.com/smallbiz

SAVE

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Existing customers can switch without a
contract extension. New lines of activation
require a two-year Agreement.

Dell ™ Inspiron™11z

Sprint ranks #1 in Small Business Wireless Value.

— 2010 ATLANTIC-ACM Business Connectivity Report

Sprint Customized Connection Savings: Offer ends 4/16/11. $10 monthly discount requires activation on select business plan and mobile broadband plan. Savings claim based on participation in eligible plans for 12 consecutive
months. No more than one discounted connection offer allowed per line of service on select business plans. Voice/3G Data Usage Limitation: Sprint reserves the right, without notice, to limit throughput speeds, and to deny, terminate,
modify, disconnect or suspend service if off-network usage in a month exceeds (1) voice: 800 minutes or a majority of minutes; or (2) data: 300 megabytes or a majority of kilobytes. Prohibited network use rules apply. See in-store
materials or sprint.com/termsandconditions for specific prohibited uses. Mobile Broadband/Connection Plan: Includes 5 GB of data usage. Additional data usage is $0.05/MB. Connection Plan 3G Data Usage Limitation: Sprint
reserves the right to limit throughput speeds or amount of data transferred; and to deny, terminate, modify, disconnect or suspend service if usage exceeds 300 MB/month while off-network roaming. 1,024 KB equal 1 MB. 1,024
MB equal 1 GB. Other Terms: Coverage is not available everywhere. The Sprint 4G Network reaches over 70 markets and counting, on select devices. The Sprint
3G Network reaches over 271 million people. See sprint.com for details. Offers and service plan features not available in all markets/retail locations or for all
phones/networks. Pricing, offer terms, fees and features may vary for existing customers. Other restrictions apply. See store or sprint.com for details. ©2011 Sprint.
Sprint and the logo are trademarks of Sprint. The HTC logo and HTC EVO are trademarks of HTC Corporation. Other marks are the property of their respective owners.

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 contents//03.2011
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Entrepreneur.com
Check out this month’s online exclusives
VIDEO: COACHES CORNER AIRPORT EATS MOM-
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FIVE TO FOLLOW
Find out who vWorker’s Ian Ippolito and other
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on top of their fields. ON TWITTER
blog.entrepreneur.com @ENTMAGAZINE

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OTHER EN-
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10 Entrepreneur // March 2011
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Copyright © 2011 United Parcel Service of America, Inc.

The new logistics is technology that advances your business. In the hi-tech industry you have to be fast, efficient
and source globally. Not a problem: UPS technology plugs directly into your systems, streamlining everything.
You can prepare shipments in seconds rather than minutes. Simplify customs clearance with paperless solutions.
Keep customers updated automatically. Put the new logistics to work for you. thenewlogistics.com

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 WorldMags

VIcE­prEsIdENt/EdItor­IN­chIEf­ Amy C. Cosper

ExEcUtIVE­EdItor Jason Meyers
crEatIVE­dIrEctor­ Megan Roy

EdItorIal BUsINEss
assocIatE­EdItor Brenda Wong prEsIdENt/corporatE­pUBlIshEr Ryan Shea
staff­wrItEr Jennifer Wang dIrEctor­of­adVErtIsINg­salEs Justin Koenigsberger
spEcIal­projEcts­EdItor Tracy Stapp
BUsINEss­traVEl­corrEspoNdENt­­Bruce Schoenfeld ENtrEprENEUr­MEdIa­NatIoNal­adVErtIsINg­salEs­offIcEs­
EdItorIal­assIstaNt­­Michelle Juergen New York City (212) 563-8080
coNtrIBUtINg­EdItors­­Monica Fischer, Jenna Schnuer, Shayna Sobol rEgIoNal­salEs­MaNagErs Jeff Chau, Randy Mills
EdItorIal­INtErN Arshi Khan EastErN­oNlINE­salEs­MaNagErs­ Jill Meyerson, Chophel Namgyal
offIcE­MaNagEr/ExEcUtIVE­assIstaNt­to­thE­pUBlIshEr Elvira Perez
art­&­dEsIgN Chicago (312) 923-0818
dEsIgN­dIrEctor Richard R. Olson MIdwEst­adVErtIsINg­dIrEctor Erin Morley Sesto
assIstaNt­art­dIrEctor Corey Hollister MIdwEst­oNlINE­salEs­MaNagEr Wendy Hidenrick
coNtrIBUtINg­art­dIrEctor Nancy Roy salEs­assIstaNt Erin Seramur
prodUctIoN­assIstaNt­ Monica Im Detroit (248) 644-2786
MIdwEst­adVErtIsINg­dIrEctor Lori K. Flynn
coNtrIBUtINg­wrItErs­­ salEs­assIstaNt Lisa Whalen
Jason Ankeny, Mikal E. Belicove, Jonathan Blum, Chris Brogan, Dallas (972) 383-1375
Ericka Chickowski, Jason Daley, Craig Guillot, Joel Holland, soUthErN­adVErtIsINg­dIrEctor Glen Harn
Rich Karpinski, Kate Lister, Gwen Moran, Dan O’Shea, San Francisco (415) 433-0441
Brian Quinton, Regina Schrambling, J.D. Roth, Maria Russo, Erin Weinger wEstErN­salEs­dIrEctor Kristian Kilfoil
NorthwEst­adVErtIsINg­MaNagEr­ Kate Stoodley
ENtrEprENEUr.coM salEs­assIstaNt­ Mandy Tripp
VIcE­prEsIdENt,­sItE­dEVElopMENt David Pomije Irvine (949) 622-7169
ExEcUtIVE­EdItor­­Laura Lorber los­aNgElEs­adVErtIsINg­dIrEctor­ Eric Rucker
dEpUty­EdItor­­Teri Evans soUthwEst­oNlINE­salEs­MaNagEr Jeffrey Rinna
sENIor­EdItor­­Jason Fell
EdItor,­woMENENtrEprENEUr.coM Eve Gumpel fraNchIsE­&­BUsINEss­opportUNItIEs­adVErtIsINg­salEs­­­
chaNNEl­EdItor,­startUp/fINaNcE/MaNagEMENt Kimberlee Morrison adVErtIsINg­MaNagEr/prodUctIoN­dIrEctor Paul Fishback
coMMUNIty­EdItor­ Kara Ohngren accoUNt­ExEcUtIVEs Tim Evans, Brent Davis, Simran Toor,
chaNNEl­EdItor,­salEs/MarkEtINg/grow Tanya Payne Michael Ginty (949) 261-2325, fax: (949) 752-1180
It­dIrEctor Patrick Freeman classIfIEd­adVErtIsINg RPI Classifieds (727) 507-7505, fax: (727) 507-7506
systEMs­aNd­NEtworks­adMINIstrator Christina Andonov prodUcts­aNd­sErVIcEs­adVErtIsINg­ Direct Action Media,
ad­opEratIoNs­dIrEctor Michael Frazier (800) 938-4660
traffIc­coordINator Jose Paolo Dy adVErtIsINg­coordINator Mona Rifkin
oNlINE­ad­traffIc­coordINator Madison Bui oNlINE­adVErtIsINg coordINator Monica Santana
oNlINE­syNdIcatIoN­EdItor­ Petya Yordanova
dIrEctor,­sItE­opEratIoNs­ Jake Hudson ExEcUtIVE­staff
sENIor­wEB­dEsIgNEr Veronica DeLuca chaIrMaN/cEo­ Peter J. Shea
wEB­dEsIgN­spEcIalIst­ Brian Wilkins sENIor­VIcE­prEsIdENt,­opEratIoNs Mike Ludlum
prodUctIoN­assocIatEs­ Kevin Murray, Nicholas Jennes sENIor­VIcE­prEsIdENt/cfo Joseph Goodman
sENIor­applIcatIoN­dEVElopEr Joseph Norris dIrEctor­of­BUsINEss­dEVElopMENt Charles Muselli
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art­dIrEctor Jane Maramba corporatE­coUNsEl Ronald L. Young lEgal­assIstaNt­ Susan J. Howell
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WorldMags
12 Entrepreneur // March 2011
 WorldMags

Now’s the time to grow your small business with easy and affordable
marketing solutions from Deluxe. With 4 million small business customers,
Deluxe has the products, services and expertise to help you drive trafc and
boost sales. From logo design and promotional products, to domain names,
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and keep customers. Plus, you can rely on our customer support team for
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© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Fictional business example.

WorldMags
 editor’s note
Aggravating, con-
unruly—and tribu-
essential
M
y iPhone is the boss of
me. It’s a tough thing to
admit, because no one
likes being controlled by a
petulant child. But this beautiful, shiny,
smart-mouthed device is in charge.
On most days I forgive the iPhone for
its temper tantrums, because its power
is awe-inspiring and its glorious apps
make my life easier. The instant gratifi-
cation it provides is unparalleled.
But on some days, the iPhone—
well, it needs a good spanking.
The time it dropped a call during
a critical discussion, proceeded to
proudly take a picture of itself and shut
down for a short nap? Forgiven. The
embarrassing time its predictive spelling
turned the name Topher into the word
“toon”? Forgiven. Or the fateful day
it erased itself and deleted all contacts,
music and photos? Forgiven—but
grudgingly, that time in particular.
In the end, we excuse transgressions
like those because the iPhone—or
any smartphone, for that matter—has
transformed our lives, our culture and
the way we do business.
The impact mobility has made on
business is jaw-dropping. Virtually every
sector of business—from food trucks to
retail to pizza delivery to day trading—
has been altered by mobile technol-
ogy. The devices read barcodes, act as
point-of-sale terminals, kill zombies,
help capture leads and drive customers
to you in ways never imagined.
In a flash, mobile phones have evolved
into fully developed, sleek and accessible
digital platforms that allow businesses
and brands to become integrated into the
customer experience. And that’s why no
matter what business you’re in, a solid
mobile strategy is critical.
The coverage in this issue is designed
WorldMags
14 Entrepreneur // March 2011
torS
to help navigate the confusing landscape
of mobile and help you prioritize. Dan
O’Shea cuts through the still-cloudy wa-
ters of the nascent mobile web, explain-
ing why developing an app to extend
your business is just the starting point
for full business mobilization.
Jason Ankeny, meanwhile, explores
how mobile is rapidly becoming a pay-
ment method, and how your business
must prepare to capitalize on the tech-
nologies that may finally herald a new
era in mobile payments.
And in this month’s Innovator sec-
tion, we look at how upstart mobile
app developer shopkick is turning the
location-based craze on its ear in the
retail business—not only enhancing
the utility of location technology, but
also giving shoppers a reason to hit the
bricks and mortar. That sound retail
merchants are hearing is the revitalized
cha-ching of their cash registers—or,
more accurately, the ping of more and
more mobile devices charging up more
and more in-store sales.
The smartphone can be an obstinate
companion—no doubt about that. But
for business owners, it is not only a
productivity tool and a communica-
tions device, but also an enhancer of
customer engagement, a streamliner
of transactions and a booster of sales.
And those are pretty good reasons to
overlook the bad behavior.
Amy C. Cosper
Editor in chief
Follow me on Twitter
@EntMagazineAmy
WorldMags
“L
et us know if you have
any restrictions, like
allergies, injuries or
phobias,” wrote Surprise Indus-
tries co-founder Tania Luna (see
Wacky Idea, Page 88). Entrepre-
neur staff writer Jennifer Wang
doesn’t—yet—so we shipped her
off to be Surprised. Armed with a
single clue (“wear snug, athletic
clothing”), she made her way to a
destination in Williamsburg, N.Y.,
to find … a circus school, where
Agent S—aerial dancer Seanna
Sharpe—was twirling away on a
silk cloud swing, accompanied by
an accordionist with a handlebar
mustache. Agent S put Wang to
work (go to entrepreneur.com
for video proof). Good thing she
does yoga.
N
ew York City-based
photographer David Lang
has documented tsunami
relief efforts in Sri Lanka for the
International Organization for Mi-
gration and shot in the Maldives,
Pakistan, Afghanistan and other
countries. Lang—a regular con-
tributor to Entrepreneur who shot
this month’s story on executives
making the jump to the franchise
PhOTO© J EFF CLARK
world (Page 100)—says taking
a photo is not always about just
being in the right place, but also
about being open to the situation
and the people around you.
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busi
ness
unusual

Out of the fryer and

into the sink An eco-conscious couple turns restaurants’
cooking oil into soap—and sells it back to
the establishments

M
arshall Dostal grew up in a thrifty New Eng-
land household in which “throw on a sweater”
trumped “turn up the heat.” True to his roots,
when he found work in the advertising industry
and he and his wife, Megan, moved to Pasadena, Calif., he drove
a 1984 Mercedes 300D that he ran on biodiesel.
He started making fuel from used vegetable oil he collected
from restaurateurs. But all those gallons of glycerin, the byprod-
uct of the refining process, bugged him. Such a waste.
Knowing glycerin is the main ingredient in most soaps,
Marshall started experimenting with soap formulas and a new
idea: What if, he wondered, the soap could be sold back to the
restaurants that had provided the oil? Customers could wash
their hands with the byproduct of their frites.
In 2008, the Dostals got serious. They sold a building they
owned, and Marshall left his job. They brought in a fragrance
expert and came up with a fresh, slightly earthy scent for their
soap: a mix of olive, bergamot and grass. “Nothing flowery or
powdery,” Megan says. “A guy had to be comfortable using it.”
They contracted with a Los Angeles lab to manufacture the
soap and called their company Further Products, since they
were taking the concept of re-use an extra step. Megan designed
the parchment-colored labels to convey a homespun, DIY vibe.
Restaurants jumped at what Marshall calls “the opportunity
to use their waste in an interesting way.” A sign in the restroom
at L.A.’s trendy Pizzeria Mozza reads: “As you wash your hands,
you are completing a perfect, sustainable circle.”
A few local and regional retailers that carry high-quality
green products, including Fred Segal in L.A. and ABC Carpet
and Home in New York, also signed on.
In 2009 the Dostals took on an investor, who now owns
30 percent of the company. They bought a bottle-filling ma-
chine and a truck—fueled by biodiesel, of course—to pick up
the oil, then cart the glycerin to the lab and the finished soap
back home to be bottled and shipped. They also developed a
moisturizer and a candle featuring the Further scent.
Further products aren’t cheap—$12.50 for eight ounces of
soap or moisturizer, $24 for the candle—but, Marshall says,
being a higher-end brand gives them entree to “progressive and
forward-thinking retailers.” In December, Further appeared
in its first national retailer, Williams Sonoma, after the chain’s
president, Richard Harvey, found out about the line.
Further produces 10,000 units a month, with production
expected to jump significantly in the next six months as new
Photo© j eff clark

products hit the market. With no employees other than them-

selves, the Dostals are supporting their family with the business.
Waste not: megan and “It’s kind of unbelievable,” Marshall says, “but we may need
marshall dostal at a warehouse.” —Maria russo
l.a.’s osteria mozza.

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Entrepreneur // March 2011 19
 going forward
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You
should
know
Hipster in cHief
RichaRd FloRida
Born 1957
UrBan development theorist,
aUthor

“L
ocal” and “sustainable” are
terms more likely to be
associated with an organic
lettuce crop than with job creation

How to clean up
and entrepreneurship. But richard
florida, bestselling author of The
Rise of the Creative Class, has long

your reputation
championed the idea that the best
way government can kick-start the
economy is by shelving federal pro-
grams and going local, local, local.
Specifically, the University of To-
Skweal takes complaints out of the public forum, ronto professor of business and cre-
giving businesses a chance to make good ativity argues that artists, intellectuals

F
and entrepreneurs are the ultimate
ive-star reviews are great for business, but there’s no way to stop angry economic growth engine—and to
Yelpers from publishing bad ones. Until now. build a thriving business community,
Skweal is a feedback platform designed to help brick-and-mortar city mayors and state governors
retailers resolve issues privately, before a customer does any damage must cultivate their talents. a prime
online. The idea is to get people to visit skweal.com on their smartphones, example: Kirk watson, the former
locate the business from a list and submit a comment or complaint through mayor of austin, Texas, who revital-
Skweal’s feedback form. Skweal employees take it from there, passing the mes- ized the downtown area and helped
sage as quickly as possible to the right person. Early Skwealers have benefited. establish the South by Southwest
One wrote, “The Internet isn’t working in my room, and I’m thinking about music and film festival as one of the
changing hotels.” That led to—true story—a fix within half an hour, plus a city’s biggest economic windfalls.
champagne-and-fruit-basket apology. More recently, florida has become
“It takes 30 seconds or less, and customers don’t need to register or sign the darling of great Britain’s Prime
up,” says Skweal founder Tyler Crowley, a former executive at Mahalo.com Minister David Cameron, who plans
and a producer at Open Angel Forum. He’s campaigning to get more busi- to use “the grain that’s already there”
ness owners to share their best contact information, and to encourage their to build up London’s tech sector.
customers to provide feedback through Skweal. a few counter-creativity groups
PhoTo© ThinKSToCK PhoToS/SToCKByTe

In fact, Crowley says the only reason people complain publicly about the lo- call florida an elitist. But that
cal dry cleaner or café is because there’s no convenient alternative. hasn’t shaken his belief that suc-
“Virtually all one-star reviewers I interviewed said they would have pre- cess is directly related to how
ferred to speak directly to someone when the problem was happening,” he happy you keep the core popula-
says. “But nobody has time to be stuck in a phone tree, dig for a customer tion of creative professionals.
service e-mail or fill out an impersonal comment card.” Memorable quote: “at critical
If Skweal takes off—and plenty of investors think it will—business owners moments, americans have always
can get real-time feedback, win customer service points and nip complaints looked forward, not back, and sur-
in the bud. And not a moment too soon, since asking for the manager is so prised the world with our resilience.
20th century. —Jennifer wang Can we do it again?”—J.w.

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20 Entrepreneur // March 2011
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ASK
A PRO

Good buy
TED LEVERETTE
TELLS YOU HOW TO
SIZE UP A DEAL.

Q: Am I crazy to acquire a business

instead of starting one?

A: If you have fantasies of buying a faltering

business for cheap and turning it around—
yes, that would be the way madness lies. The
Small Business Administration puts the failure
rate of startups between 50 percent and 60
percent; but it’s closer to 85 percent for those
who buy in hopes of a turnaround, accord-
ing to a Northeastern University study.
Buying a profitable business, on the
other hand, is another matter entirely.
You’ve got cash flow from Day One, an
established reputation and, if you’re lucky, a
seller who will help finance the deal, says Ted
Leverette, president of “Partner” On-Call, a fran-
chise based in North Palm Beach, Fla., that matches
buyers with sellers of small and midsize businesses.
Leverette has several baseline requirements for
a business purchase. First, no matter how glow-
ing the sales talk, don’t buy anything that hasn’t
been profitable for the last five years—and that
includes the Great Recession. “Absolutely don’t
buy anything that has an annual pretax net cash
flow under $100,000,” he says. “That’s the small-
est you want to go.”
Look for a competitive advantage. “The busi-
ness has to have something that makes it unique.”
As for specific business opportunities, keep an
open mind. “It’s a good idea to buy a top business in
any industry, even if the industry overall is strug-
gling,” he says. “When there’s a shakeout, those that
survive are the winners.”
Once the deal is done, retain the seller as a consultant
and hire a good manager, because even the best busi-
PHOTO© KEVIN GARRETT

nesses will fail if they are mismanaged. And, of course,

be careful to retain the best employees. “You need
someone really good in the product area, and someone
who really understands the marketing,” he says, “and
then you want to compensate them well.” —J.W.

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22 Entrepreneur // March 2011
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Money man
Paul Graham spills: Why some companies get his cash and others don’t

L
oopt. Reddit. Xobni. Bump.
Paul Graham—and the seed-stage venture firm he co-founded, Y Combinator—have been there at the
start of all of them. And now Y Combinator is growing, too. In the last two years, the Silicon Valley fund-
ing group doubled its number of active startups to 40 and brought in a prominent new partner, Gmail’s
lead developer (and Xoogler) Paul Buchheit. We asked Graham to give up the goods: How exactly do you spot the
next big thing? —j.w.

What’s Most essential something, you can say it in the fewest

FoR a successFul staRtup?
The founders. We’ve learned in the
six years of doing Y Combinator to
look at the founders—not the busi-
ness ideas—because the earlier you in-
vest, the more you’re investing in the
people. When Bill Gates was starting
Microsoft, the idea that he had then
involved a small-time microcomputer
called the Altair. That didn’t seem
very promising, so you had to see that
this 19-year-old kid was going places.
What do you look FoR?
Determination. When we started, we
thought we were looking for smart
people, but it turned out that intel-
ligence was not as important as we
expected. If you imagine someone with
100 percent determination and 100
so hoW do you deteRMine
deteRMination?
When we interview, we decide in 10
minutes whether to fund people. We
talk about their ideas, because that’s
the best way to figure out what kind
of people they are.
What iMpResses you?
Knowing the business. If we ask a
words, instead of thrashing about.
hoW do you spot a gReat idea?
It often sounds like a bad idea. When
Facebook first started, and it was
just a social directory for undergrads
at Harvard, it would have seemed
like such a bad startup idea, like
some student side project. Or when
Google started, there were eight to 10
successful established search engines
already, and search was so uncool
that they were trying to get people to
call them “portals.”
But return is always proportional
to risk, so what that means is: The
very best startup ideas, the ones that
are the biggest successes, tend to be
the ideas that you don’t know are
even going to work.

Photo© thinkstock Photos/PhotooBjects.net Photo© Dave thoMas

percent intelligence, you can discard
a lot of intelligence before they stop
succeeding. But if you start discarding
determination, you very quickly get an
ineffectual and perpetual grad student.
bunch of questions and they have the
answers at their fingertips because they and you can see WheRe
understand the domain really well, that line is?
that’s a good sign. Being concise is im- Well, this is why we pick based
portant, too. If you really understand on founders.

jar- XoogleR

gon
deFinition: Pronounced Zoog-ler and used to describe the
swelling ranks of ex-google employees headed for younger,
nimbler startups—or starting companies of their own.
usage: kevin woke one sunny Monday morning to the real-
ization that the magic of working for google was gone. two
weeks later, he was a Xoogler taking the fruits of his “20
percent time” to his first vc pitch.

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24 Entrepreneur // March 2011
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innovator

CYRIAC ROEDING: KICK-

STARTING SHOPPERS.

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26 Entrepreneur // March 2011
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SHOPKICK
is retooling the concept
of customer rewards
with an app that
delivers promotions,
prizes and discounts
to smartphone-toting
consumers.
MEET CYRIAC ROEDING,
the man reinventing
shopping for
the mobile era.
BY JASON ANKENY

THE
PHOTOGRAPHY BY
DAVID JOHNSON

REBIRTH
OF RETAIL
T
he idea first came to
Cyriac Roeding in
1994. The German-
born business and
engineering graduate
student was studying
Japanese management
theory at Tokyo’s Sophia Univer-
sity. “Everywhere I went, I saw
people walking around with these
clunky machines they called ‘mobile
phones,’ ” Roeding says. “I said,
‘Wow, that’s the next big thing.’ ”

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Entrepreneur // March 2011 27
 WorldMags

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 WorldMags
innovator
The seed was planted, but the true
form and scope of the idea remained
elusive for more than a decade. In the
meantime, Roeding pursued other suc-
cesses. He founded a mobile marketing
firm called 12snap. He served as ex-
ecutive vice president of CBS Mobile,
where his interactive entertainment
concepts were strong enough to win
an Emmy Award nomination.
Still, the big kahuna—the eureka mo-
ment, the one that captured lightning in
a bottle—refused to reveal itself.
“I have been looking for an idea
that has the potential to become a
really large company in mobile for
11 years,” Roeding says. “When I
started 12snap in 1999, it was dur-
ing the dark ages of mobile, when
text messaging was still a geeky thing
even in Europe. For years I’ve been
trying out different mobile-use cases,
looking for the one with a chance to
become huge.”
Roeding left CBS Mobile in 2008
and traveled the world for nearly two
months. Everywhere he went, from
New Zealand to Nepal, he saw people
on mobile phones. With each succes-
sive stop, the idea took shape.
“I wanted to develop a service
where mobile meets the real world,”
Roeding says. “Your cell phone is the
only interactive medium you carry
with you in a noninteractive physi-
cal environment, and that changes
everything. It makes the offline world
an interactive experience.”
The idea finally achieved critical
mass in September 2008, when Roed-
ing arrived at his new gig as entrepre- world. So if foot traffic is so impor- from KPCB, as well as venture firm
neur-in-residence with Silicon Valley tant, then why hasn’t anyone rewarded Greylock Partners and Linked-
venture capital firm Kleiner Perkins people for visiting stores? The answer In founder Reid Hoffman (also an
Caufield & Byers. After poring over is simple: It’s because nobody knows investor in Facebook and Zynga). The
thousands of business plans submit- you came through the door.” startup’s eponymous mobile applica-
ted to KPCB’s iFund (a $200 million So Roeding set to work on a tion delivers “kickbucks” rewards to
investment initiative created to ignite smartphone-optimized rewards pro- all registered iPhone and Android us-
software developer interest in Apple’s gram offering customers discounts and ers who enter a participating retail lo-
then-fledgling iPhone) and finding promotions simply for entering retail cation. Kickbucks can be collected and
nothing that crystallized his vision, he stores—a model he describes as “the redeemed across any partner store and
shifted his perspective from identifying physical-world equivalent of an online turned into gift cards, discounts, song
a solution to pinpointing a problem. click.” Meetings with big-box retailer downloads, movie tickets, Facebook
“The number-one challenge facing executives followed. “They all loved Credits or even charitable donations.
every retailer in America is getting the idea,” he recalls. “It was crazy. I As of late last year, shopkick spanned
people through the door,” Roeding still didn’t have a company, the tech- 1,100 individual U.S. retail outlets and
says. “Conversion rates in the physical nology, a team or even any funding. I 100 shopping centers with partners
world are so much better than on- only had a PowerPoint presentation.” such as Best Buy, Macy’s, Target,
line—between 0.5 percent to 3 percent The idea—or shopkick, as it’s now Sports Authority, Crate & Barrel and
in the virtual world, and between formally known—launched last Au- mall operator Simon Property Group.
20 percent to 95 percent in the real gust, buoyed by $20 million in funding “Shopkick transfers the online busi-

WorldMags
30 Entrepreneur // March 2011
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AGE D L ONGE R T O
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WorldMags

innovator
ness model to the real world,” says
Roeding, CEO of the Palo Alto, Calif.-
based company. “We’re tackling a huge
market with a big problem, and we’re
offering them a solution that works.”
reward someone for walking in your
store, you cannot use GPS,” Roeding
says. “It’s way too inaccurate. There’s
an error radius of about 500 yards,
meaning I still don’t know if you’re
inside the store, out in the parking lot
WorldMags
via the mobile device, consumers re-
tain control over the privacy of their
presence information.
Retailers determine how many kick-
bucks a shopper receives for entering
their business. Roeding says each walk-

R
oeding speaks about ideas or across the street at a competitor.” in can earn as many as 100 kickbucks,
in a deeply reverential, Shopkick instead incorporates a with 875 kickbucks earning a $25
almost spiritual, tone. “I patent-pending device located in restaurant gift certificate, for example.
love building companies,” each participating store. The box, Retailers can leverage the shopkick app
he says. “I’ve always said which costs retailers less than $100 to deliver special offers, like a discount
that if the right people and the right and is roughly the dimensions of on specific merchandise.
idea pop up, I will drop everything to a paperback novel, plugs into any The concept also extends beyond
start a company. That’s why I came to power outlet, emitting an audio sig- retail: In partnership with brands
the U.S. I wanted to build something.” nal that’s undetectable to the human including Kraft Foods and Procter &
Roeding’s entrepreneurial aspira- ear but automatically picked up by Gamble, shopkick offers smaller re-
tions took a left turn when he landed a smartphone’s internal microphone. wards for scanning product barcodes,
in the entertainment industry, taking Because the signal’s range is limited which extends the network to about
the helm of CBS Corp.’s fledgling mo- to the perimeter of the store, users 230,000 additional stores nationwide.
bile entertainment unit in 2005. must physically enter the location Shopkick receives a small commis-
“At that time Disney had 270 peo- to earn kickbucks. And as Roeding sion fee for each kickbuck a customer
ple in its mobile department and CBS points out, because detection occurs earns. “It’s essentially a cost-per-click
had zero,” he recalls. “I met with [CBS
executives] Nancy Tellem and Leslie
Moonves and asked, ‘Why are you
talking to me? I’m an entrepreneur.
I’m not a big-company person,’ ” he
says. “And Les said, ‘Because I want
to turn this company into a company
of entrepreneurs.’ ”
Roeding left CBS Mobile after three
years at the top. Along the way, he
pioneered a mobile video news-alert
program, produced mobile games
based on the network’s prime-time hits
and masterminded original made-for-
mobile content across the three largest
U.S. wireless carrier networks. Roed-
ing also inked an early location-based
mobile advertising partnership with
Loopt, a still-growing mobile social
networking startup that predates
up-and-comers like Foursquare and
Gowalla by several years.
At first glance, it may appear
shopkick is yet another variation on
the location-specific check-in para-
digm championed by those firms, but
Roeding cautions that the app is not a
social networking tool.
“Our vision is to transform shopping
into a personal, rewarding and fun expe-
rience for everyone,” he says. “Shopkick
is an app that is built around the act
of going out and shopping. It’s not
about going out and letting your friends
know where you are.”
And unlike other location-enabled
applications, shopkick doesn’t rely on WITH KICKBUCKS,
GPS triangulation. “If you want to RETAILERS DESIGN
THEIR OWN REWARDS.

WorldMags
32 Entrepreneur // March 2011
 WorldMags

SHOP TALK
Shoppers on smartphones are nothing new, but there’s a grow-
ing possibility they’re no longer simply talking or texting. An
increasing number of consumers are relying on their mobile de-
vices to check product availability, identify nearby bargains and
read reviews, too. Fifty-nine percent of adult mobile subscribers
in the U.S. said they planned to use their handsets for shopping
and event organizing during the 2010 holiday season—up
25 percent from 2009—according to a consumer study pub-
lished late last year by the Mobile Marketing Association and
Luth Research. Respondents cited searching for local stores
selling a desired gift item and comparing prices as their most
common mobile behaviors.
“The fundamentals of commerce have not changed—I still
want to buy the product I want at the price I want, it’s got to
be in stock and I want fast checkout and fast delivery,” says
Cathy Halligan, senior vice president of marketing and sales
at PowerReviews, a San Francisco company that provides
social commerce solutions (including customer reviews) to
retailers and brands.
“What has changed is the access to information. We’ve seen a
500 percent year-over-year increase in consumers using mobile
devices to access product information. They used to look for that
information through the desktop, but that’s very limiting. After all,
you don’t carry your PC with you to the supermarket,” she says.
Brands large and small are capitalizing on the trend, rolling
out applications designed to enhance the mobile shopping ex-
perience. Check these out:

• Price Check by Amazon. This free comparison shopping tool en-

ables iPhone users to check in-store product prices against items
available on the web. Price Check gives consumers the option
to scan a product barcode, snap a photo of the merchandise or
speak/type its brand name to instantly receive prices from Ama-
zon and rival online merchants. The app sorts prices from lowest
to highest, incorporating Amazon shipping discounts when
available. Price Check encompasses millions of products across
a variety of categories, as well as mobile access to shopping
features like customer reviews and product information sharing
via Twitter, Facebook, text message or e-mail link.
• Google Shopper. Available exclusively for smartphones run-
ning Google’s own Android mobile operating system, Google
Shopper lets consumers capture product information via
their device camera. The application recognizes cover art on
books, CDs, DVDs and video games, as well as most barcodes.
In addition, users can speak the name of the product they’re
looking to purchase. In response, Google Shopper supplies
product recommendations, pricing comparisons and identifies
local stores where the item is in stock, complete with contact
information and driving directions. The app also saves each
user’s search history, guaranteeing product and price informa-
tion even when the Android device is out of network range.
• NexTag Mobile. Online shopping comparison site NexTag
offers mobile solutions for iPhone, Android and BlackBerry
smartphones, touting features like price comparisons span-
ning thousands of merchants, image recognition-based
search, seller ratings and a wish list that users can share with
friends and family. NexTag Mobile also offers a full comple-
ment of GPS-enabled tools, giving consumers the option of
mapping the distance from their ZIP code or current location
to a local merchant selling a scanned product. —J.A.

WorldMags
Entrepreneur // March 2011 33
 WorldMags
innovator
equivalent, only we charge cost-per-
visit,” Roeding says. If a shopper
makes a purchase after using the app,
shopkick claims a percentage of that
transaction as well.
Not only is the shopkick model dif-
ferent from services like Foursquare,
its users are different.
“Eighty percent of Foursquare users are
male and 70 percent are between the ages
of 19 and 35,” Roeding says. By contrast,
he notes, “55 percent of our users are
female. Forty-nine percent of all users are
aged 25 to 39, and 13 percent are 40 or
older. Only 6.5 percent are 13 to 17. It’s
the perfect shopper demographic.”
Retailers credit shopkick with kick-
ing their customer traffic into a differ-
ent gear. Sporting goods chain Sports
Authority has rolled it out to more
than 100 of its U.S. locations. In late
2010 the chain doubled—and in some
cases even tripled—kickbucks rewards
to determine the potential effect on $127 billion in consumer spending business sector: At press time, the firm
walk-ins. The promotion ultimately in- during the 2010 holiday season— was planning to launch its SMB retail
creased shopkick user walk-in growth which represents 28 percent of the trials in the first quarter of 2011.
50 percent to 70 percent. $447 billion the National Retail Fed- “We’re very excited about mov-
“You have to innovate in retail to eration forecasts U.S. consumers spent ing into the small-business world,”
be relevant,” says Jeff Schumacher, over the period—according to a survey Roeding says. “You could never join
Sports Authority’s chief marketing offi- conducted by research firm IDC. a national program as a local player
cer. “We looked at other applications, “We’re seeing a fundamental shift in before. It just didn’t work. But with
but we felt shopkick’s strategy was how consumers are accessing informa- kickbucks, the playing field is level.”
the best fit. Their focus is on driving tion at the point of purchase,” says He also plans to expand the core
frequency, and in retail, frequency is a Cathy Halligan, senior vice president of capabilities of the shopkick model.
powerful metric. Anything that incents marketing and sales at PowerReviews, a In conjunction with the annual Black
the customer to come into the store company in San Francisco that provides Friday shopping frenzy, the company
more often is a win-win for us.” social commerce solutions (includ- recently unveiled The 12 Days of
Schumacher declines to reveal how ing customer reviews) to retailers and Kickmas, a sweepstakes giving walk-in
many Sports Authority customers brands. “Consumers now have access to users a shot at winning one of a dozen
actively use the shopkick application, product information while they’re stand- daily prize packages, including a grand
but says the company is “quite pleased” ing in the store. They’ve never had that prize of 4.25 million kickbucks. Other
with it. “We’re trialing shopkick in our before. It’s a game-changer.” initiatives are in the pipeline, and as
major markets, which is where we see As of October, nearly 61 million shopkick grows and improves, retailer
the greatest density of smartphones,” he U.S. consumers owned smartphones, offers should become more sophisti-
says. “Our customers love it. Some of up 14 percent from the preceding cated as well, with kickbucks awards
them are even asking for it in markets three-month period and translating and promotions eventually targeting
where we don’t have it. Feedback has to one out of every four American consumers according to age, gender,
been very positive.” wireless subscribers in all, researcher geography, shopping frequency or
comScore reports. And as smartphone purchase history.

S
hopkick’s rapid growth
corresponds with surging
consumer interest in leverag-
ing mobile technology to
shop smarter (see sidebar on
Page 33). Shoppers relying on mobile
solutions to search for price and prod-
uct information, check merchandise
availability, compare prices at nearby
stores, browse product reviews and
even purchase goods accounted for
penetration grows, the opportunity for
startups like shopkick flourishes.
“We made the decision to focus
only on smartphones—it makes the
most sense,” Roeding says. “There
will be 150 million smartphone users
across the U.S. by the end of [2011],
and consumers who can afford to shop
are overrepresented in that group.”
His idea is growing, too. Shopkick is
extending its platform into the small-
“Shopkick is about shopping, and
not anything else,” Roeding says.
“There are all kinds of things that
shopping entails, and we want to
improve all of them. It’s about making
the in-store experience amazing. It’s
not a tool. This is your world.”
JASON ANKENY IS A CHICAGO-BASED
WRITER AND EXECUTIVE EDITOR OF
FIERCEMOBILECONTENT.

WorldMags
34 Entrepreneur // March 2011
 WorldMags

Booming is JON HABER

turning an early pay discount ALTO MUSIC
ALTOMUSIC.COM
MEMBER SINCE 07
into more space for music.
Jon Haber, owner of Alto Music,
was one of the very first owners
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WorldMags
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WorldMags
 technology
WorldMags
shiny
object

You can see clearly now

Logitech’s new webcam can turn an office into a high-def videoconferencing studio

A
s hip as low-cost videoconferencing tools like Skype, Google Chat and Apple iChat have become,
they pose a common problem for small businesses: poor image quality. Therefore, interactivity
and meeting quality can be less than first rate.
Logitech aims to change that. Its new HD Pro Webcam C910 ($100) is a video camera that
can bring near-professional video quality to even entry-level business videoconferencing. The unit boasts a
high-quality, high-definition calling mode, an excellent video recording capability and a solid microphone.
It even comes with basic video editing software that’s good enough to produce simple marketing materials
and visual collateral.
Although it’s nowhere near as high-end as technologies like telepresence, the C910 offers a surprisingly
rich and lifelike video experience. As with any videoconferencing system, the webcam’s quality will suffer
if you have a wonky web connection. But with business-grade web access and a little tinkering, the C910
will deliver for even the tiniest of firms. —Jonathan Blum
Photo© DaVID Joh nSon

WorldMags
Entrepreneur // March 2011 37
 technology
WorldMags

Sharper images
A good camera can help you enhance everything from your
social media profile to your product spec sheets

N
ow that smartphones have powerful cameras and video systems built right in, makers of traditional cameras
have had to adapt: Today’s nominally consumer-grade camera comes jammed with advanced features like
video, global-positioning systems and rugged designs. If you know the tricks, seemingly basic cameras can be
turned into business-ready multimedia imaging devices that can help your firm market, communicate—and
make more money.
Here are our picks for low-cost, portable cameras with small-business game:

SONY NEX-5 ($800, PACKAGED WITH 16MM LENS)

Remember the difference between single-lens reflex cameras and
point-and-shoot units? SLRs were pricey but powerful and let you
change lenses; point-and-shoots were cheaper but had limited fea-
tures and only internal lens adjustments. Those days are over. The
new Sony NEX-5 brings the interchangeable lenses of the SLR to a
point-and-shoot-size camera, opening a level of professional-quality
imaging to smaller firms. Not only can the NEX-5 shoot seven frames
per second in continuous live-action stills mode, the unit also pro-
duces fabulously high-quality, high-resolution video. If you are looking
to add multimedia to your social media pages, take quality comps of
your work for clients or otherwise create powerful marketing material,
you will be surprised by how professional a tool the NEX-5 can be.

CASIO EX-H20G ($350)

Most businesses are about being somewhere and doing something
at a specific place and time. So most businesses should get to
know the Casio EX-H20G. Not only does this unit have a traditional
global-positioning system, but it also has so-called autonomic posi-
tioning—basically, what a guided missile uses to stay on course. The
tool allows this super-simple point-and-shoot camera to generate a
remarkably accurate position for where and at what time photos
are taken. Say you’re out doing an onsite for an upcoming job. Rather
than pinging your location with your cell phone, jotting down an
address and hoping that Google Maps gets it all right so you can find
your way back, take a picture with your H20G and know your posi-
tion is correct. Getting an accurate fix on where you need to be is a
handy tool indeed.

KODAK PLAYSPORT/ZX3 ($150)

The ruggedized Kodak Playsport/Zx3 is made to help adrenaline junkies
record their latest base jump, cliff jump or ski jump. But this small, good-
looking video and still camera has solid small-business skills lurking in-
side. Sure, the Playsport pumps out reasonably high-quality video, good
still images and has an easy-to-use USB output that lets all images feed
directly into a PC. But what makes the Playsport unique is its tougher-
than-nails case and lightning-fast turn-on time. So instead of having to
baby your iPhone in an add-on case and wait forever to take a picture,
you can grab the Playsport, shoot what needs to be shot and move on.
If you doubt the business value of that, just ask any of the many iPhone
owners out there whose camera doesn’t work at all. —J.B.

WorldMags
38 Entrepreneur // March 2011
 WorldMags

A friendly reminder from the University of FarmersR.

FarmersR offers small business insurance. Our agents have been trained to work with owners of many different
types of businesses and can help you select the coverage that best fits your business and your bottom line. Talk to
a local Farmers agent and learn how you can protect your business in the event of a disaster, an accident, or a
workers’ compensation claim. To find an agent near you, go to farmers.com or call toll free 1-866-200-4BIZ (4249).

We Are Insurance. We Are Farmers.S

auto I home I life I business

Insurance underwritten by Farmers Insurance Exchange and other affiliated companies. Visit farmers.com for a complete listing of companies. Coverage not available in all states. ©2011 Farmers Group, Inc.

WorldMags
 tech
WorldMags
SM

WE’LL CUSTOMIZE THE

RIGHT PLAN FOR YOU

YELLOWBOOK DIRECTORY
The go-to source for local businesses Facebook gets
YELLOWBOOK.COM
Advertise online where millions search
the message
Many business owners have embraced its new messaging
e-mail service as their primary mode for communicating
with contacts. But many others are sticking to the tried
and true. —ErIcka chIckowSkI
SOCIAL MEDIA
See what your customers are saying Can’t Live
With it
jesse Waites, oWner, beacon hill apps, a mobile
application development firm, boston

W
ith developers to manage,
DIRECT MARKETING clients to woo and time-
Customize the message for your target lines to keep, Jesse Waites
is the typical overbooked business
owner. He says that even with Face-
book’s new messaging capabilities, it
sucks away his valuable time.
EXPERT ADVICE “Being your own boss, you typi-
Consult with those in-the-know cally sit down for the day with a list of
10 or more important things to do,”
he says. “Being on Facebook is not the
first thing on that list.”
Waites says he doesn’t want to
WEBSITE PACKAGES
Build a website and have it seen
interrupt a project by pondering
whether or not to accept a friend
request from a long-lost classmate.
Perhaps even more of a black mark
against Facebook messaging, though,
is the issue of security.
“As an entrepreneur, I don’t want
Facebook reading my mail,” he says.
“Facebook messaging may be a very
brilliant plan for lower-level Internet
users—you know, people that want
to play FarmVille and all that—but
I’ve got a business to worry about.”

Can’t Live
WithOUt it
shaWn hermanson, oWner, buzz revolution,
SEARCH MARKETING a marketing firm, denver

Advertise on major search engines
METRICS REPORTS
Track your performance with data
www.yellowbook360.com
1.800.YB.YELLOW
© 2010 Yellow Book USA, Inc. All rights reserved.
Yellowbook® is a registered trademark and Yellowbook360SM
and Beyond YellowSM are service marks of Yellow Book USA, Inc.
F
or the past decade, Shawn
Hermanson has made it his
business to collect as many
contacts as possible in his pursuit of
generating buzz for his small-busi-
ness clients. He’s somewhat a victim
of his own success: Hermanson has
so many unfiltered contacts in his
long-standing web-based e-mail
account that it is difficult for him to
keep track of who’s who.
Lately, when he’s out of his office
on business, he says he finds himself
checking Facebook Messages on
his phone more than he checks his
regular e-mail account.
“I can honestly see myself discon-
tinuing my regular e-mail account
that I started back in 1998,” he says.
Hermanson says Facebook mes-
saging is easier to use than his regu-
lar e-mail, and it offers better control
over contact management and more
context about his contacts.
“It’s kind of nice when you can
actually see a photo of a person,” he
says. “It gives your e-mail account a
little more personal touch.”

WorldMags
40 Entrepreneur // March 2011
 WorldMags

THIS IS WHAT SUCCESS LOOKS LIKE FOR

RITCO CONSTRUCTION.
Yellowbook used a full spectrum of marketing tools to find the right solution
for Ritco Construction. Our marketing consultant assessed their business fully,
then constructed a website with a strong search engine presence and developed
print, online, and video ads, as well as targeted direct marketing. To discover
all the colorful new tools from Yellowbook, visit yellowbook360.com.

YELLOWBOOK YELLOWBOOK SOCIAL DIRECT EXPERT WEBSITE SEARCH METRICS

DIRECTORY .COM MEDIA MARKETING ADVICE PACKAGES MARKETING REPORTS

©2010 Yellow Book USA, Inc. All rights reserved. Yellowbook™ is a trademark of Yellow Book USA, Inc.

WorldMags
 technology
VoIP hits the road
If you do the math right, you can save money
using the technology on your mobile device
F
or businesses looking to save money on telecom costs, Voice over
Internet Protocol (VoIP) technology has been a go-to method for some
time. But can it help you cut
your mobile bills as well?
The answer isn’t as straightforward.
For many tech watchers, the big
story in mobile VoIP was AT&T
and Apple’s concession last summer,
after months of stalling, to allow
popular VoIP service Skype on the
iPhone. Why the delay? AT&T
didn’t want VoIP dialing to cut
into its voice-service revenues, and
Apple—well, it seems Apple was
just being its usual controlling self.
Today, mobile users not only
can use Skype apps on the iPhone,
but also on Android, BlackBerry
and Nokia devices. Skype even has
a version of the app for Verizon
users that sends the calls over its
regular voice network. Skype isn’t
alone in mobile VoIP, either. Rivals
like Fring, Truphone, Nimbuzz
and Vonage offer similar capabili-
ties. Just download the app to your
phone and go. Still toe-dipping in
mobile VoIP is Google, which could
change the voice game altogether
when it finally takes the plunge.
Is mobile VoIP free? It depends
on how you look at it. Most car-
riers still require users to have a
voice minutes plan. If that’s true
in your case, go for the minimum.
Then use your mobile VoIP app for
free app-to-app calling. Your only
cost for that is your data usage
(technically free with an unlimited
data plan; trickier if you pay by the
byte). Want to call out to regu-
lar phone numbers? No big deal.
Most mobile VoIP services charge
a pittance for the capability. Fring,
for instance, was recently charging
0.9 cents (yep, less than a penny) per minute; Skype offers unlimited calls in
the U.S. and Canada starting at just $2.99 per month. If you can master the
math and don’t mind dialing-by-app rather than hard key, the savings can
add up quickly. —rIch karPInSkI
WorldMags
42 Entrepreneur // March 2011
hoW to get
started With
mobile voip
as an example, let’s use skype
on the iphone:
1 Download the Skype app from
the iPhone store.
2
other
Sign up for Skype service for
free calling over 3G or wi-Fi to
Skype users on a mobile de-
vice or connected Pc.
3 Buy Skype “credits” to call non-
Skype users, paying just cents
per minute (depending on where
you’re calling).
4 use Skype seamlessly on the
iPhone: receive calls in the
background like a regular phone call,
and while on a Skype call do other
tasks—like check your e-mail or your
calendar—without hanging up.
WorldMags
sign on the
dotted pixel
e-signatures streamline
the contract process
Y
ou know the drill. You and a
client agree on terms. You
send out a contract and it
sits. You give a reminder call, and the
client finally inks the contract—but
the scanner is broken, so the con-
tract sits some more. By the time it’s
in hand, you’ve worked months with
no legal umbrella.
there’s no reason to live with that
scenario anymore. technology has
made signing with electronic signa-
tures (e-signatures) a real option.
the legal framework for ac-
ceptance of e-signatures has been
in place since the passage of the
federal Electronic Signatures in
Global and national commerce
act in 2000. many larger busi-
nesses have adopted the practice,
but delivery models have been too
cumbersome and expensive for
most smaller outfits, until recently.
with the software-as-a-service
model, a solution that integrates
with PDF and word documents
costs as little as $10 a month. In
fact, with the release of adobe’s
free beta for eSignatures, it may be
possible to jump on the e-signature
bandwagon for no upfront cost.
the adoption of e-signatures
could help you reap dividends
during the sales cycle. a study of
472 organizations by the aber-
deen Group found that users of
e-signatures were 50 percent more
likely to show improved customer
renewal rates. they were also
41 percent more likely to reduce
Photo© thInkStock PhotoS/crEataS
proposal errors and 18 percent more
likely to shorten their sales cycles.
“a key challenge facing busi-
nesses is achieving cost-effective
sales growth,” says Peter ostrow,
aberdeen research director.
“users of electronic signature
technology outperform non-users
in areas that significantly impact
sales growth.” —E.c.
 WorldMags
THE CHALLENGE: MEETING TOUGH STANDARDS
OUR SOLUTION: MOTOR TREND’S 2011 CAR AND TRUCK OF THE YEAR ¨

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 WorldMags
Mobile applications redefined
the user experience but represent
only a pit stop in the continuing
evolution of the Mobile platforM.
the true endgaMe for business
owners is the Mobile web.

have worms,
will travel: mike
hodgdon in a
house truck.

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44 Entrepreneur // March 2011
 WorldMags

Business in
moTion

By Dan O’Shea
phOtOgraphy By
jOhn jOhnStOn

T
o land the big
fishes, you
need to be
able to find
them. But like the fishes
themselves, data about
where and when the big
ones are biting don’t
stay fresh for long.
The 100,000 or so
user forum members of
Bigfishtackle.com like
to share just that kind
of information, but by
the time they get back
phOtO© thinkStOck ph OtOS/StOckByte

home or to their Wi-Fi

enabled cabins to log on
to tell their friends the
best places to drop a line
(or maybe just to gloat),
it could be old news. It
would be a lot better if
they could log onto their
mobile phones the in-
stant they set the hook,
right from the boat.

WorldMags
Entrepreneur // March 2011 45

“Fishing reports can get a little
dated,” says Mike Hodgdon, COO of
Colorado Springs, Colo.-based First
Light Net, which runs Bigfishtackle
.com and other websites for outdoor
enthusiasts. “There is a big advantage
for the angler to do this while they’re
actually on a fishing spot. That’s why
we started to see some demand to post
to the forum from mobile phones.”
The website became an early
adopter of new technology enabling
a mobile-optimized web browsing ex-
perience. In 2007, it started reformat-
ting its site for smaller mobile device
screens. But the business soon found
dotMobi, a Dublin, Ireland, firm that’s
among a handful of companies that
sells .mobi domain names, as well as
tools for creating a mobile-optimized
web experience. Now, Bigfishtackle.
mobi gives forum members viewing,
browsing and posting functions that
are just like the desktop web experi-
ence, but rendered just right for a 3- or
4-inch mobile phone screen.
The site and others like it represent
a growing trend among entrepre-
neurial businesses to achieve a more
mobile-friendly web presence.
The .mobi designation isn’t for a
separate website—it’s just a mobile-
optimized extension. Bigfishtackle.
com didn’t have to change its URL.
“You can post to the .mobi site, and it
integrates with the regular website in
real time,” Hodgdon says.
Pinky Brand, director of global
sales at dotMobi, estimates that
businesses could realize a bump in
traffic of 10 percent to 15 percent
by mobile-optimizing their websites.
That could be the amount of traffic
they are losing if customers try to
visit their regular websites from mo-
bile phones and find them unfit for
viewing on their device screens.
“Mobile is what a lot of consumers
use to look for businesses right now,”
Brand says. “In truth, every business
already has a mobile website because
your website can be seen on mobile
phones. It’s just that the businesses
may not know how bad it looks on a
mobile phone.”
Bigfishtackle.mobi was among the
first sites launched with dotMobi’s
help. Though the site does see some
unique visitors, Hodgdon says the
crossover from the regular website has
WorldMags
46 Entrepreneur // March 2011
Where
To go
for more
Resources to help you
mobilize your web presence
dotMobi (dotmobi.com):
Resources and information on
buying a .mobi domain.
mobiThinking (mobithinking.com):
A spinoff of dotMobi that offers educa-
tion about mobile web marketing.
The Webkit Open Source Project
(webkit.org): Information on the
browser technology supporting
HTML 5’s mobile functionality.
mobiForge (mobiforge.com):
A community of independent
mobile web developers.
The Web Hypertext Application
Technical Working Group
(whatwg.org): Industry body
started by folks from Apple, Opera
Software and Mozilla Foundation
to speed HTML 5 development.
HTML5.org (html5.org): More details
on HTML 5 and comparisons to previ-
ous versions.
Taptu blog (blog.taptu.com): Re-
sources and information on mobile
app trends and app streams.
been especially notable, with about
40 percent of website visitors crossing
over to the mobile-optimized version.
That’s a lot of impact for a project
that cost its website proprietor little
more than $8,000.
“If you think about it, this makes
sense for a lot of different types of
businesses because the mobile phone
market is so big,” Hodgdon says.
“The opportunity is bigger than just
building for computers.”
T
he nascent mobile website
movement could be the next
step for mobile-savvy busi-
nesses that have joined the
mobile app explosion, or even for those
who have missed out on apps. However,
WorldMags
in the long run mobile websites could
prove to have broader implications and
greater business benefits.
It can be expensive and labor inten-
sive to develop a mobile app to repre-
sent your business. Developers of the
earliest mobile data apps often had to
write different versions for every mo-
bile device on which they wanted the
apps to play, says Mitch Lazar, CEO
of Taptu, a social media and technol-
ogy company with headquarters in
Denver and Cambridge, England.
Lazar himself was an early entrant
into mobile Internet endeavors, having
created the CNN Mobile service after
starting CNN.com in the 1990s.
“There were huge cost and distribu-
tion challenges because you had to cus-
tomize the service for every phone that
was out there,” Lazar says. “We had
to create about 500 different SKUs for
CNN Mobile for different distributors.”
A pair of philosophically opposite
technology evolutions in recent years
made the development process easier.
First, Apple created its own tightly
controlled app ecosystem with the
highly desirable iPhone at the center of
it. Next, the emergence of the Android
operating system created an open en-
vironment for developers to create an
app once, and with a few tweaks, get
it on a much broader list of devices.
The success of the iPhone and the
rise of the Android army created a
fast-growing market for mobile apps,
but with that success came new chal-
lenges for any business seeking to
make its mark with its own mobile
app. For starters, it has to deal with
an app store, such as Apple’s iPhone
store, that will want a piece of the
revenue. Also, the app undergoes
lengthy, rigorous testing and certifica-
tion procedures before it gets a spot on
the virtual store shelf.
But the biggest challenge may be
getting the app noticed once it does
become available. At the Apple store,
for example, an app now has to
fight for attention against more than
300,000 others—and that’s just one
app store. And if consumers do find it,
will they use it? As mobile phone users
download an increasing number of
apps, concerns are growing about the
potential for app overload.
“It’s filter failure, the problem of
not being able to filter out what’s
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 WorldMags

core to you,” Taptu’s Lazar says.

“It’s a problem that has spanned
years as we’ve had an Internet fire
hose pointing at us.”
Taptu’s MyTaptu social news ag-
gregation app allows users to build a
personalized visual experience on the
mobile phone that lets them avoid
“app-hopping,” Lazar says. That
could make it easier for individual
business apps to be found in the rap-
idly growing mobile app universe.

t
hough tools like Taptu help,
many small-business owners
believe that the mobile app
environment still can be
an abyss, and that they could better
use their time and money enhancing
their core websites, rather than try-
ing to get a homespun app onto their
customers’ phones.
Nitin Bhandari, co-founder and
chief product officer of Skyfire, a
company in Mountain View, Calif.,
whose mobile browser technology
converts web pages for viewing on
mobile devices, says having a greater
mobile web focus makes more sense
for businesses now because mobile
network bandwidth advancements and
browser innovations have caught up
with device capabilities.
“You’ve got better devices, better
networks and better browsers,” he
says. Yet how and when to pursue the
mobile web remains a challenge.
“There’s a great deal of confusion
about the mobile web,” says Joshua
Bixby, president of website optimiza-
tion firm Strangeloop, in Vancouver,
B.C. “Businesses haven’t known
what to do about it, and the larg-
est companies have been focused on
coming out with their own apps for
individual phones.
“What’s getting the mobile web
more attention is executives checking
out their competitors’ websites from
their iPhones and finding out [those
sites] work better on mobile than their
own,” Bixby says. “Then they force
their IT departments to change direc-
tion and prioritize the mobile web.”
DotMobi’s Brand says businesses
should keep in mind three factors
when developing a mobile website: the
site needs to be able to detect when
mobile users are accessing it; it needs
a way to adapt content to a mobile

WorldMags
48 Entrepreneur // March 2011

format; and it needs a way to present
that mobile-ready content.
One of the main technology tools is
HTML 5, the first version of the well-
known Internet development language
to accommodate mobile. It allows the
creation of mobile-optimized web-
sites, as well as “web apps”—essen-
tially website-based apps and widgets
that can be accessed through a web
browser such as Google Chrome or
Apple Safari that uses the Webkit open
source web page rendering system that
is part of the HTML 5 standard.
“Web apps are basically HTML
wrapped in an app,” says Mark
Britten, senior product manager of
NewBay Software, which has offices
in Seattle and Dublin. “It is something
that is much more lightweight and
much quicker to use than XML.”
But the best part for small business-
es that lack an IT department is that
no knowledge of HTML 5 is required.
Solutions such as dotMobi’s goMobi
service platform can do the grunt
work for you. With goMobi, busi-
ness owners use simple drag-and-drop
methods to turn their desktop site into
a mobile one. And, Brand says, the
conversion process takes just minutes.
With dotMobi’s free mobiReady.com
service, owners can test their existing
site to see how it will look from the
perspective of different devices.
m
any advocates of HTML
5 argue that mobile-
optimized websites and
emerging web apps based
on the platform can help businesses
avoid the mobile app store glut by
sending users right to their websites—
which, in turn, can help dig users out
of the piles of mobile apps that may
be suffocating their overall mobile
Internet usage.
“Mobile apps actually have a high
churn rate. All of these apps you
have downloaded are digital weight
you carry around,” says Skyfire’s
Bhandari. “But web browsing only
continues to increase.”
Bixby says a revolution in mobile-
optimized websites could eventually
de-emphasize app stores for both
app creators and users—though he
acknowledges that’s hard to imagine
right now, during the height of the
mobile app market.
WorldMags
WorldMags
“Apps as we know them now are
a phase in the maturity of the mobile
Internet,” he says. “The browser is
what will define that experience in
the future.”
Taptu’s Lazar thinks otherwise: that
apps will continue to be important,
and that technology like HTML 5 will
just make it easier for entrepreneurial
businesses to negotiate all aspects of
the mobile web, whether in site devel-
opment or app development.
“HTML 5 lets Taptu create a smart
browser solution without having to
rewrite a lot of code, but you will still
have apps. Like your website, they will
just be written in HTML 5,” he says.
The increasing ease with which en-
trepreneurial businesses can leverage
the mobile web could make it a
simple decision for companies to get
onboard. In addition, it’s a relatively
inexpensive move, and it might even
make sense for some new businesses
to make their Internet debut as a
mobile website.
Still, dotMobi’s Brand says the
decision to mobile-optimize a site or
to go further and support m-com-
merce is something that has to come
down to a business’s understanding
of its audience.
Bigfishtackle.com was so certain
of its users’ interest in mobile that
it snapped up about 30 .mobi URLs
from dotMobi, Hodgdon says. He sees
the potential for m-commerce activ-
ity, such as the ability to buy a fishing
license from your phone and to display
it on your phone screen.
“The .mobi site is an extension of
what we have been doing from the
very beginning,” Hodgdon says.
Brand says the progress of mo-
bile websites “reminds me of the
desktop Internet growth of 15 years
ago. It’s driven by advances in device
horsepower and connectivity. But
desktop was a slower evolution, and
the mobile Internet adoption rate is
blindingly fast. The way this will take
root is that entrepreneurs will talk to
one another and say, ‘I did this and it
worked for me, so maybe it will work
for you.’ ”
Dan o’shea is a writer in chicago
who has been covering teLecoM,
MobiLe anD other high-tech toP-
ics For nearLy 20 years.
Entrepreneur // March 2011 49
 WorldMags

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 WorldMags

You know the clunky, unsightly cash

register occupying all that real estate in
your place of business? Say goodbye.
It’s now a paperweight—a fossil, a relic
of a bygone era where cash and plastic
reigned supreme. The future of point-
of-sale transaction processing lies in
the mobile phone, the one thing your
customers carry with them wherever
they go—the one thing they absolutely
never leave home without.
PHOTO© G ETTY IMAGES/TIM H AWLEY

WorldMags
Entrepreneur // March 2011 51
 WorldMags

Merchants have heard this prog- commerce and investment by the

nostication before, of course. Pundits mobile industry mean nothing if re-
have forecasted the emergence of tailers, restaurateurs and other small
mobile wallets for roughly a decade. business owners don’t also commit

AND CELL
The tech sector has promised—but to a mobile payment environment.
failed to deliver—a secure, alternative And those businesses are poised to
payment system that would acceler- reap the greatest rewards. Beyond
ate the transaction process, increase boosting transaction speed, security THE FORMATION OF ISIS
customer spending and streamline and convenience, mobile commerce HERALDS A NEW AGE
operations. The kind of system that also can create new opportunities for OF PAYMENT OPTIONS
would be a godsend for verticals like customer interaction—like coupons, FOR MERCHANTS AND
quick-service restaurants and conve- promotional offers, appointment CONSUMERS
nience stores. But mobile commerce reminders and other incentives.
always failed to take off. Read on to learn about the innova- In a sense, Isis is itself a
This time, though, things look tion that will usher your business into startup that is helping make mobile
different. (Really.) For starters, con- the m-commerce era. commerce a reality for small busi-
sumers are showing far more inter-
est in making purchases using their
mobile devices. Close to half of U.S.
smartphone owners have either used
their devices for mobile shopping or
plan to do so in the imminent future,
according to a survey conducted by
ABI Research. Americans spent more
than $3.4 billion on mobile shopping
in 2010, up from $1.9 billion the
previous year, the report says—and
it predicts that online shopping will
yield $163 billion in worldwide sales
by 2015, representing 12 percent of
total global e-commerce turnover.
Credit the growth in part to explod-
ing smartphone penetration. More
subscribers than ever now carry the
kind of cutting-edge devices necessary
to make payments on the go.
Sales of smartphones like Apple’s
iPhone and handsets running Google’s
Android mobile operating system
represented 45 percent of all new U.S.
mobile device purchases in November
2010, according to The Nielsen Com-
pany. Smartphone users now make up
31 percent of the total American wire-
less subscriber segment.
The companies that provide mobile
service are going all in on mobile com-
merce, too. Three of the four largest
U.S. mobile operators are joining forc-
es to launch Isis, a nationwide mobile
transaction network rolling out with
support from the likes of Discover
Financial Services and Barclaycard US
that promises to dramatically stream-
PHOTO© DAVID JOH NSON

line the way businesses accept mobile

payments. And a wave of other mobile
payment options is emerging that will
further simplify and secure shopping MOBILIZER: MICHAEL
across the digital sphere. ABBOTT’S ISIS PUTS
But consumer demand for mobile MONEY IN MOTION.

WorldMags
52 Entrepreneur // March 2011
 WorldMags

nesses everywhere. It happens to have
some heavyweight help behind it—
which is why Isis has such a tremen-
dous chance at succeeding.
Isis is a nationwide mobile commerce
network spawned in late 2010 that has
the potential to connect 200 million
wireless subscribers across the country
with merchants equipped to accept
mobile payments from their customers.
It can do that because Isis is backed by
Verizon Wireless, AT&T and T-Mobile
USA—three of the four largest U.S.
mobile operators in the U.S.
“There have been a lot of science
experiments in this space, but you need
scale and commitment to truly ignite
innovation,” says Isis CEO Michael
Abbott, a financial services veteran
who was chief marketing officer of GE
Capital before he signed on to helm Isis.
Abbott calls his company “kind of a
startup, but with three huge partners.”
“Merchants need to know that
mobile payments are here,” he says.
“We’re giving them the scale and com-
and readers are already in stores.”
Isis isn’t the only entity backing near
field communications to connect mer-
chants and customers. Handset maker
Nokia has pledged to support NFC in
all new smartphone models introduced
this year. And Google announced late
last year that NFC integration is includ-
ed in the updated version of its Android
mobile operating system.
Research firm iSuppli anticipates
worldwide shipments of mobile
devices with built-in NFC capabilities
will increase to 220.1 million units in
2014, up from 52.6 million in 2010.
Perhaps most significant, contactless
readers are already deployed in more
than 100,000 U.S. merchant locations
across the U.S.
“The consensus in all markets is
that contactless payments are go-
ing to evolve over NFC,” says James
Anderson, vice president of mobile for
MasterCard. “People believe that’s the
right technology.”
Isis is slated to roll out consumer
trials in key geographic markets this
year and into 2012. Barclaycard US
is expected to be the first issuer on
the network, offering multiple mo-
bile payment products.
But Abbott is already thinking far
past mobile payments. In his mind, Isis
will not only render cash, credit and
debit cards obsolete, but also allow mer-
chants to replace loyalty cards, coupons,
event tickets and transit passes.
“Isis is not just about putting mo-
bile payment services on your phone,
but delivering one simple, integrated
solution that brings all your paper
and plastic together,” he says. “We
can create value in a lot of ways. For
example, when you leave a store, a
merchant can send a promotional offer
to your phone, and it’s sitting there the
next time you come back. It’s going
to be a lot of hard work, but we have
the scale and the support to finally
catalyze the market.”

mitment necessary to move forward.”
The service Isis offers is simple: It will
allow consumers to make purchases
by swiping their microchip-equipped
smartphones at corresponding reader
units located at participating retailers. The
process relies on something called near
field communications, or NFC, which
enables secure communications between
two electronic devices in close proximity
(about 4 inches apart).
Isis also is building out its contact-
less payment platform in collabora-
tion with Discover Financial Services,
whose payment network is accepted at
more than 7 million merchant loca-
tions nationwide. Few startups get a
better start than that.
The future of Isis hinges on building
out NFC’s retail footprint and mind-
share. Abbott welcomes the challenge.
“I like to take raw materials to mold
and create new things,” says the one-time
electrical engineering student at Columbia
University, who dedicates his free time to
woodworking. “The idea is to bring [Isis]
to every phone, and to give something to
consumers that simplifies their lives. For
that to happen, we have to be open to
all merchants, all wireless carriers and all
banks. That means we need a standard
everyone can use. NFC technology is
nothing new—there’s nothing that needs
to be reinvented. [Point-of-sale] terminals
MOVES
FOR SMALL
PAYMENTS
THE ADVANCE OF MICROPAYMENTS HAS THE
POTENTIAL TO TRANSFORM HOW MERCHANTS
COLLECT MONEY
Don’t be fooled. Just because they’re called micropayments
doesn’t mean the revenue opportunity is insignificant.
Perhaps no company has made more real money selling virtual goods than social
gaming giant Zynga, which reports that in-game digital transactions—for example,
crops and livestock purchased by FarmVille players—account for roughly 90 percent
of its annual revenues, a windfall of about $450 million in 2010.
Zynga’s breakout success is all the more remarkable given the struggles that
have long faced traditional publishers and media providers looking to monetize
their content on the web. It’s been a different story on mobile phones, however.
The days when subscribers routinely forked over a few bucks for a 15-second
monophonic ringtone are over. In the current smartphone era, half of all iPhone
owners download a premium application to their device each month. Mobile sub-
scribers consistently exhibit their willingness to make small, impulse purchases on
the go—a trend buoyed by the simplicity and efficiency of charging the transaction
to their monthly wireless bill.
New payment options that create viable alternatives to traditional cash and
credit transactions will make mobile micropayments even easier. In late October,
AT&T launched a mobile payment trial enabling its 93 million U.S. subscribers to
charge music, movies and virtual goods directly to their monthly bill by entering
their mobile number instead of their credit card or PayPal account information.
AT&T rolled out the program in partnership with no fewer than three rival mobile
payment solutions startups: BilltoMobile, Boku and Zong.

WorldMags
Entrepreneur // March 2011 53
 WorldMags

“Mobile payments enable you to reach

a segment you can’t reach with credit
cards and PayPal,” says Ron Hirson, Boku
co-founder and senior vice president of
marketing and business development.
“Customers don’t always know their credit
card information, but with Boku, you only
have to enter your 10-digit mobile number.
Mobile also allows you to reach people
who can’t pay any other way, especially in
emerging markets. Now merchants can sell
to people they couldn’t before.”
How many more people? Consider
that there are roughly 177 million
credit card holders in the U.S., com-
pared with about 293 million wireless
subscribers nationwide, or roughly 93
percent of the total American population.
With international wireless subscribers
surpassing the 5 billion milestone in late
2010, it’s no surprise that the global mobile
payments market—including purchases of
digital and physical goods as well as money
transfers and point-of-sale transactions—is
expected to explode from $170 billion in
2010 to almost $630 billion in 2014,
according to Juniper Research.
That growth depends on a solu-
tion that makes sense for consumers,
mobile providers and merchants alike.
Although the AT&T trial will go far in
separating the contenders from the pre-
tenders, on paper BilltoMobile, Boku
and Zong offer similar solutions. book Credits and other social gaming tal media sales billed on their networks;
BilltoMobile inked a deal with Verizon and digital platforms. Like BilltoMo- terms of the AT&T deal are unknown
Wireless last March (between that and bile, its solution incorporates a PIN (the company declined an interview
the AT&T partnership, the startup now code to authenticate a transaction. request) but are said to be substantially
has access to 65 percent of U.S. wireless “The most important thing to a more favorable to its technology partners
subscribers). BilltoMobile’s Direct Mobile consumer is convenience,” says David and merchants. (BilltoMobile, Boku and
Billing service offers a secure two-step Marcus, Zong founder and CEO. Zong all take a small transaction fee on
payment process requiring only seconds “That’s why we’re focused on mobile— each purchase as well.)
to complete: To make an online buy, con- there’s an enormous opportunity to The growth of mobile micropay-
sumers select BilltoMobile as their pay- increase convenience.” ments depends on everyone in the value
ment option, choose their wireless carrier Boku—which boasts partnerships chain continuing to work together,
and enter their mobile number and ZIP with 220 mobile providers in more BilltoMobile’s Greenwell says. After all,
code. BilltoMobile transmits a pass code than 60 countries—tweaks the formula: everyone stands to gain.
via text message, and once the code is Instead of a code, consumers reply with “For now the focus is on digital goods,
successfully entered in the transaction a “Y” for “Yes” in response to its text- and from there it will move to nondigital
window, the purchase is complete. based purchase authorization. “What goods. Eventually, mobile will evolve as
“We provide a financial-grade system we’re doing doesn’t require consumers a second-nature payment mechanism for
Photo© g etty imag es/andrsen ross

to the carrier, leveraging their existing
billing model,” says Jim Greenwell,
BilltoMobile president and CEO. “We’re
not going to displace credit cards. Our
model is about offering digital merchants
greater incremental revenue.”
Zong’s international operator
partners include T-Mobile, Vodafone,
Orange and O2. The firm is also the
mobile payments provider for Face-
to upgrade their phone,” Hirson says.
“We reach everyone on the web.”
AT&T’s commitment to nurturing
mobile micropayment options extends
beyond marketing the BilltoMobile, Boku
and Zong services. In conjunction with
the partnership, the operator also agreed
to reduce its cut of transaction revenues.
In the past, carriers often claimed be-
tween 40 percent and 50 percent of digi-
all transactions under $100,” he says.
“There’s nothing magical about this. It’s
a simple model that benefits everyone. It’s
beautiful in its simplicity.”
chicago-Based writer Jason
ankeny is the executive editor
of fiercemoBilecontent, a daily
e-newsletter dedicated to moBile
media, aPPlications and marketing.

WorldMags
54 Entrepreneur // March 2011
 WorldMags

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WEBSITE
TO WATCH

online ideas
Reading goes social
By tapping into the collective popularity of books, Goodreads quickly built a devoted following in
the multiple millions—and a captive audience of book buyers for advertisers —MICHELLE JUERGEN
WHAT’S NEXT
Goodreads’ Book Genome
Project will offer Pandora-
like recommendations
and collect detailed
GOODREADS.COM information from books
• Founder and CEO Otis Chan- to enhance the browsing
dler previously built a social experience. “If you search
networking and dating site for for science fiction books,”
Tickle.com, which was acquired Chandler says, “you may
by Monster Worldwide in 2004 be able to drill down
• 7 million monthly unique visitors into paranormal vampire
• 55 million monthly page views books that are set in
• 100,000 new users a month Transylvania and deal
• 11 employees with orphans.”
• Based in Santa Monica, Calif.

WHY IT TOOK OFF

Chandler and his wife, co-founder Elizabeth Chandler,
got the link out to about 800 people themselves, and
it took off from there. Goodreads has a Facebook app,
widgets for blogs and websites and an option to post
PHOTO© JEFF CLARK

reviews on Twitter—but Chandler says the best market-

ing strategy is still word of mouth. “Reading may be a
solitary activity, but what you’re reading and what you
think of what you’re reading are ideas,” Chandler says.
“And ideas are much better if they’re shared.”

WorldMags
Entrepreneur // March 2011 57

online ideas
The master of your domain
How to size up and select a webmaster
who can keep your site one step ahead
I
n the web’s early days, knowl-
edge of HTML and an eye for
graphics were all a webmaster
needed to succeed. Now, a top-
notch webmaster must be a jack-
of-all-trades, excelling in server and
application programming, graphics
design, e-mail marketing, media de-
velopment, site security, social media
integration and more.
Here’s what you should be looking
for in an outstanding webmaster:
A diverse portfolio demonstrating
knowledge and skills in visual design,
web graphics and programming.
Knowledge of standards, technolo-
gies and tools. The ideal webmaster
knows what is possible and required
to implement certain features, but
also knows that the latest and great-
est craze may not be suitable for a
specific company or client.
Efficiency. Webmasters who really
know their trade build sites more effi-
ciently. They may cost more per hour
or charge a higher retainer, but if they
accomplish more per hour and deliver
on schedule, you save money.
Project management expertise.
Rarely does a single individual pos-
sess all the knowledge and skills
required. On large, complex sites, a
webmaster is primarily a project man-
ager who works closely with design-
ers, programmers, writers, editors,
artists and others.
Social media savvy. Your website is
just a start. Establishing a strong brand
presence online requires a blog and a
following on social networking venues.
Since webmasters today surely will be
involved with the technical require-
ments of these once ancillary areas,
they must possess a working knowledge
and proficiency in these areas.
Comfort and confidence in serv-
ing as a vendor. Assuming you know
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58 Entrepreneur // March 2011
WorldMags
build a
website
what you want to do from a market-
ing perspective, your webmaster’s job
is to execute the plan, not spend the
bulk of their time trying to persuade
you otherwise. You or your market-
ing or corporate communications
department should have the final say
in decisions related to branding, site
design and copy.
Expertise in developing non-web
templates, such as those for e-news-
letters and e-mail marketing materials
using third-party marketing platforms
such as iContact, MailChimp and
Constant Contact.
PhoTo© T hinkSTock PhoToS/PhoTodiSc
Ability to configure servers and to
host sites, unless you have your own IT
department for managing the servers.
Responsiveness. At the very least,
your webmaster must acknowledge
all of your requests in a timely man-
ner or have a help desk environment
that captures, organizes, schedules
and reports on request submissions.
—Mikal e. Belicove
does your webmaster have the right stuff?
When considering candidates to manage your website, check for the following:
Positive references or testimonials from previous clients.
diverse portfolio that proves an ability to build an attractive site and imple-
ment the features you need, such as secure e-commerce, user registration,
automated technical support.
Seo results of existing sites. how do other sites managed by the webmas-
ter rank in comparison with competing sites?
Performance of existing sites. check other sites the webmaster has designed
using tools like Page Speed or ySlow for the Mozilla firefox browser.
Total cost. hourly rates are a poor comparison. compare cost per page or
total cost of a project or engagement comparable to yours.
Mikal e. Belicove (MikalBelicove.coM) iS a BuSineSS STraTegiST SPecializ-
ing in MarkeT analySiS, MeSSaging and PoSiTioning, and conTenT devel-
oPMenT for a SelecT grouP of high-Profile BuSineSSeS and individualS.
he iS co-auThor of The CompleTe IdIoT’s GuIde To FaCebook.
 WorldMags

When you subscribe to Entrepreneur, you get all the tools, tips, and insider news you
need to build—and accelerate—the success of your business. Month after month, real
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WorldMags

online ideas
The risks of oversharing
Should your employees be using social media to promote your business?
F
or Grey Sky Films, social media
offers the ideal promotional
platform. The Rockaway, N.J.,
video production firm uses sites
like MySpace and YouTube to show off
its work, and co-founders Chris Vaglio
and Mark Serao encourage their staff
of six to help spread the word.
“Our policy is pretty simple: Keep
it fun. Keep it interesting. But do not
post anything negative or inappropri-
ate,” Vaglio says. “I know that the
more people a company has, the more
of a problem it could be ‘controlling’
posts, but this policy works well for us
and everyone respects it.”
Darren S. Cahr, a partner with
law firm Drinker Biddle & Reath
in Chicago, says such a practice
can be risky. Employees can divulge
sensitive company information, use
inconsistent branding messages or
WorldMags
60 Entrepreneur // March 2011
simply post company information
in an inappropriate environment, he
says. But, if done well, employees’
tweeting, posting on Facebook and
otherwise talking up of your compa-
ny can boost awareness and attract
viral attention. Here are Cahr’s tips
for success:
Establish communication expecta-
tions. Tell your employees to keep it
clean and use proper branding mes-
sages. If employees are writing blog
posts or other longer-form material,
you might want to have an approval
process, Cahr says.
Be clear about confidential infor-
mation. If you’re just about to land
a big account or if you have a hot
product that hasn’t been released,
emphasize that this type of news is
not for public disclosure. “The Inter-
net is about the end of forgetting. It’s
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about permanence,” Cahr says. “If
you post something on the Internet,
it doesn’t just vanish into the ether
like it does when you just mention
something to a friend.”
Get the clients’ OKs. Some custom-
ers may not appreciate your employees
disclosing what your firm does for
them. Get the nod before you go public
with news about the businesses.
PhoTo© Th inkSTock Ph oToS/J uPiTeriMageS
Copyright can also be an issue,
Cahr says, so be sure employees have
the rights to the material they post.
If they share copyrighted videos, mu-
sic or text without permission, they
could be in hot water.
“The chances of your employees
not being on social media are zero,”
he says. “You need to think about
how they will represent you, even
if you’re not doing anything formal
yourself.” —gWen Moran

Is Groupon a good deal?
The daily promotion site can help boost business,
but there are some downsides for merchants
W
hen Tracy True Dis-
mukes, owner of a
Birmingham, Ala.,
consignment shop, par-
ticipated in a promotion with fast-
growing deal-of-the-day-site Grou-
pon, she was thrilled. After just one
day, with no cash outlay, her website
traffic spiked to 10 times its normal
level and she sold 157 of the “spend
$25 for $50 worth of merchandise”
promotion. Plus, many of the buyers
were people who don’t usually fre-
quent her shop, she says.
But there was a darker side to the
experience, too. Dismukes had prob-
lems with the copy, which arrived at
the last minute and presented her brand
as a “secondhand” shop—a term she
steadfastly avoids. The financials were
also tough for her to stomach. Dis-
mukes received approximately
25 percent of each transaction after
the split with Groupon, and the credit
card transaction fee for each customer’s
purchase was deducted from her
share—Groupon does not split that
cost, she says. In addition, she says she
felt pressured to accept the $25 for
$50 promotion when she would have
preferred a lower price point.
“A good portion of the items in
our store are $10 to $20, but it just
fell on deaf ears,” she says.
A recent study by Utpal Dholakia,
an associate marketing professor at
Rice University in Houston, found
PhoTo© ThinkSTock PhoToS/STockByTe
that Groupon promotions were prof-
itable for 66 percent of participating
businesses, but 32 percent lost money.
Forty percent of businesses surveyed
said they would not participate in
such a promotion again.
The study also found that newer
businesses might benefit more than es-
tablished businesses. “Groupon promo-
tions offer the most benefit when they
don’t cannibalize an existing customer
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base,” Dholakia says. If the Groupon
promotion is helping you attract new
customers, you’ll have greater success
than if the promotion is just giving a
discount to existing customers.
Among service businesses (restau-
rants, educational services, tourism
and salons/spas), restaurants fared
the worst and salons and spas were
the most successful. Businesses with
unprofitable promotions found that
Groupon users spent little beyond the
face value of the promotion and had
low rates of customer return.
Offering the right promotion might
make a difference. Dholakia says
pushing for repeat promotions—a
dollar-off value for several visits, for
example—would be more effective in
encouraging customers to return.
“These social promotions are mov-
ing targets,” he says. “They’ll refine
themselves to give better value to
customers, so even if you can’t get the
deal you want right now, hold out for
it from one of the many competitors
that are out there.” —g.M.
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Power
passwords
Y
ou know you shouldn’t use
sequential numbers, your
birthdate or your child’s name.
But how do you come up with hack-
resistant passwords that you can eas-
ily remember?
Raj Goel, founder of Brainlink In-
ternational, an information technology
security firm in New York City, has a
series of tricks he uses to train execu-
tives in creating great passwords:
Pick a line from a song or a book
title. Something you’ll remember, but
not something people immediately
associate with you. For example, you
might choose The Power of Positive
Thinking, by Norman Vincent Peale.
Select the second, third or fourth
letter from each word. Choosing the
second letter would yield HOFOH.
The third would be EWSI. Those are
your base passwords. It’s a good idea
to have a few of them, he says.
Then, add numbers and special
characters such as !, @, # in between
the letters of the base password.
Integrating the symbols for 1 through
6 into the base password would yield
!H@O#F$O%H^. You could also
use the symbols for a number that is
meaningful to you, such as a former
ZIP code backwards or a date that is
not your birthday or anniversary. For
websites, you can customize the pass-
word by integrating the name of or an
identifying detail about the website,
!H@O#eBayF$O%H^. Mixed-case
passwords are stronger.
By having a variety of base pass-
words customized in ways that are
easy for you to remember, you elimi-
nate the need to keep a written list of
passwords, which can be risky. Goel
also suggests that you use different
base passwords for different areas of
your life. For example, one for work,
another for banking and financial
activities, still another for personal
websites, such as shopping sites. —g.M.
Entrepreneur // March 2011 61
 linked//
WorldMags

with Chris Brogan

In wrItIng
Keep your sentences compact. People
don’t have time to dissect your flowery
prose, especially in business. Need
help? Read E. Annie Proulx’s novel
The Shipping News and absorb that
style. Short, punchy sentences help
people stay on target with you.

On twItter
Make your stuff easier to retweet. Twit-
ter has a 140-character limit. If you use
only 110 or so, you’ll give people room
to retweet you and, thus, spread your
message even further.

VIa e-maIl
With the Gen Y crowd living on Face-
book, e-mail messages need to fit into a
smaller package. Two hundred words
should be the max. If you need more,
then it’s a document, not an e-mail—or
it’s a phone call or even a face-to-face
visit. Oh, and put the actionable part
at the top once, and at the bottom a
second time. We’re all scanning.

On YOutube
No matter which video platform you
use, make your videos two minutes or
less, on average. Yes, if it’s a speech—
say, a TED talk—it should be longer.
But if it’s something you want people
to consume, stay under two minutes.

Brevity rules
In a world of distractions, how do you stand out? Here’s
bY phOne
Should you still use a telephone, keep
the call brief. Start with an agenda, even
if you don’t state it out loud. Write it
down beforehand so you don’t ramble.
some advice for getting in front of your intended audience. Be polite, but don’t waste five minutes

W
e live in a world where screens dominate our time. Lots of us sleep
with our phones by the bed. (Some will admit to keeping them
on small talk. And if you get voice mail?
Leave your full name, phone number
and the subject of the call, then say your
photo© th inkstoCk ph otos/B anana stoCk

right under the pillow.) We check e-mail while we’re still yawning. number once more before hanging up.
Our web browser usually has more than four tabs open. Notifica-
tions and distractions ding us all day long. I’m not saying we have to abandon
We have hundreds of TV channels, content backed up on our DVRs, a sub- civility. On the contrary, be as polite
scription to Netflix and a few multiplex theaters nearby. We also have YouTube, as possible. But realize the importance
where every minute another 24 hours of content is uploaded. In other words, we of brevity. It’s the best way to stand
are facing an all-out war on our attention. out, get answered and improve your
Here are some ways you can win it. They all involve brevity. visibility in a crowded world.

Chris Brogan is president of human Business Works, a small-Business eduCation and groWth Com-
pany, Co-author of The New York Times Bestselling TrusT AgeNTs and author of sociAl mediA 101. he
Blogs at ChrisBrogan.Com.

WorldMags
62 Entrepreneur // March 2011
 WorldMags
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 doing good
WorldMags
Number of independent animal
shelters in the U.S.: About 5,000
Average number of litters a fertile
dog produces: One per year
Average percentage of shelter animals
that are spayed or neutered: 10

Going to the dogs

A restaurateur develops a line of clothing
restaurant complete with mechanical
bulls) at Universal Studios in Universal
City, Calif., decided to use his entre-
preneurial expertise to do something
about it. In November, he launched
to help control the pet population Royal Bitch Couture, a clothing com-
pany based in Brentwood, Calif., to

Y
ou can hear in Shane O’Neill’s voice how much he loves dogs when he talks help homeless dogs by donating
about the eight he has owned—especially the 10-year-old American bulldog 50 percent of its profits to organiza-
he has now, who has cancer. So he was bothered by a statistic about the tions around the country that spay and
massive numbers of pets euthanized each year: between 3 million and 4 mil- neuter animals.
lion, according to the American Society for the Prevention of Cruelty to Animals. Philanthropy was in O’Neill’s
O’Neill, a partner in the Saddle Ranch Chop House (an 18,000-square-foot blood. He had helped expand his
family’s Columbus, Ohio, market and
catering company, Shane’s Gourmet
Catering, which he says is one of the
largest donors to Nationwide Chil-
dren’s Hospital in Columbus.
Although he had never launched a
PEOPLE ARE clothing line, O’Neill envisioned creat-
ATTRACTED ing a soft, casual collection of women’s
TO THE clothing that was flattering and easy to
wear. He worked with friends who are
CLOTHING professional stylists to design the line
LINE AND TO of form-fitting cotton T-shirts, French
loop terry hoodies, short shorts, low-rise
THE CAUSE. sweat pants and casual dresses.
Each piece is manufactured in the
United States (specifically, Los Ange-
les) and has a tag that reads, “Helping
P.E.T.S,” an acronym for “Prevent
Euthanasia Through Spaying,” to
promote the cause.
According to O’Neill, two Brent-
wood boutiques snapped up the clothes
within weeks, and there has been steady
demand from other retailers who want
to see the line. Royal Bitch also launched
a website in December.
Those stylist friends who helped de-
sign the line have plans to get the cloth-
ing onto celebrity bodies—a great form
of promo for any brand. Emma Baker,
Miss California Teen 2010, did a photo
shoot to promote the line last year.
Based on initial sales and his
PHOTO© JEF F CLARK

projections, O’Neill expects that he

will donate nearly $50,000 to various
shelters and spay and neuter organi-
zations this year.
“That will depend on how well the
line rolls out, but we’ve got everything
MAN AND BEST in place and are working hard to make
FRIEND: SHANE O’NEILL a difference,” he says. “People are at-
AND TUGNUTT. tracted to the clothing line and to the
cause. It’s a great combination.”

WorldMags
Entrepreneur // March 2011 65
 lead gen
WorldMags

Check out I
’m not ready to say that this past
holiday season was the tipping
point for mobile, but I know I
found myself doing a lot more

check-in
Could location-based mobile apps possibly have a
beneficial business purpose? Survey says … yes.
with my mobile phone in December.
Primarily I checked in to retail stores
and locations. And I wasn’t just ad-
vertising to my Facebook friends and
Twittering to relations about how
much I was spending on their gifts
(“Look! I’m in Tiffany’s!”). Mostly I
wanted to see what merchants were
willing to offer me for simply walking
through their doors.
When the right offer came along, I
bit—whether on 10 percent off at Ra-
dio Shack or a free eggnog latte at a
coffee shop in the mall. Then I posted
the find to my social graph.
Loyalty programs or lead genera-
tion? You make the call. But I know
I wasn’t headed in that direction
until I checked in to Foursquare,
Gowalla, shopkick, Loopt or one of
the other geo-location services.

PHOTO© TH INKSTOCK PH OTOS/COMSTOCK

WorldMags
66 Entrepreneur // March 2011

Critics have been quick to point out
defects in the location-based strategy.
Yes, the incentive to check in is pretty
thin when your only reward is a badge
or some other sort of honorific. (How
hot are you to become “mayor” of
your local dry cleaner, anyway?)
And, yes, the number of people who
have downloaded the apps to their
phones is relatively small. Foursquare,
the category leader, has about 5 million
downloads worldwide. That’s a sliver of
the 60 million smartphone users in the
U.S. alone—and doesn’t even take in the
much larger U.S. audience (170 million
or so) who are still using regular feature
phones and can’t access the app.
The question is, are those objections
true for your business? If you had
customers who would respond to a lo-
cation-based game and you could find
a way to give them something valuable
as a reward, would they check in?
They have for Murphy USA, a gas
retailer based in El Dorado, Ark., that
operates more than 1,000 kiosk-style
gas outlets, most located next to or
near Wal-Mart’s big boxes. Buying
gas is not exactly the kind of activity
you’d expect to tweet to your pals,
or even enjoy. And frugal Wal-Mart
shoppers might not seem a target audi-
ence for a campaign that requires a
smartphone and some mobile savvy.
Nevertheless, the company ran
a promotion last July on the Whrrl
location-based social network. Users
who downloaded the app could check
in at the pump and win instant prizes,
from free beverages and discounts to a
daily $50 gas giveaway.
Murphy, already active in creat-
ing loyalty among brand fans, publi-
cized the campaign on Facebook and
Twitter. It also put up a point-of-sale
message at the pumps, with instruc-
tions on how new users could get
engaged with the Murphy community
on Whrrl—or “society,” as the groups
are known on the platform—and what
they stood to win.
The results compiled from the
three-month pilot were impressive, says
Casey Petersen, senior Internet business
specialist for Murphy. For example, the
WorldMags
WorldMags
industry average for pump visits is two a egy was perhaps counter-intuitive.
month. Customers who checked into the Murphy USA tracks Wal-Mart de-
Murphy Whrrl society visited four times mographically and geographically, so
a month on average, and almost half of the average customer is going to be
those checking in bellied up to the pump female with a family. According to
an average of six times a month. What’s a Pew Internet survey in November,
more, the average fill-up ticket per visit only 3 percent of women have used
by Whrrl users was $30—twice the check-in services on mobile, com-
industry average. pared with 6 percent of men.
But the most amazing result was that On the other hand, an earlier survey
the check-in drove new customer acquisi- by game maker PopCap found that
tion at an astounding rate. During the 55 percent of the player base for social
pilot period, 44 percent of those checking games—like FarmVille and Mafia
in to the brand’s society on Whrrl had Wars—are women, and their average
never been to a Murphy station before. age is 43. So maybe the best approach
“We’re a low-cost, high-volume is to ignore the polls and the wisdom
chain, and we’ve been careful in about edgy tactics and simply go out,
everything we do online not just to do see what your target prospects respond
something because it’s a fad,” Petersen to and build a mobile promotion
says. “We really want to provide value around that. —BrIaN QuINTON
for our customers, not just a badge.”
In fact, 85 percent of the check-ins BrIaN QuINTON IS exeCuTIve edI-
said they chose Murphy over a nearby TOr Of CHIef MarKeTer (CHIef
competitor specifically because of the MarKeTer.COM). GOT a TIP aBOuT
Whrrl promotion. lead GeN? e-MaIl QuINTON aT eN-
Going with a location-based strat- TrePreNeur.leadGeN@GMaIl.COM.
Where y’at?
Location-based mobiLe services are becoming easier
both for consumers to find and marketers to use.
facebook and googLe have Launched services in the
category, but here are the independent hot spots.
FOURSQUARE: about 5 million members worldwide check foursquare
regularly to locate friends and to find tips and offers in places they’ve
never been before.
LOOPT: With more than 4 million users, loopt recently announced
plans to migrate loopt Star, its standalone rewards-only app, to the
main platform.
GOWALLA: an admitted underdog, the 600,000-user app has made
itself compatible with both foursquare and facebook Places (which
claims 30,000 users.)
WHRRL: allows members and brands to set up “societies” based on
shared interests; brands can offer real-world rewards for digital actions
such as check-ins.
SCVNGR: really a game layer built on the facebook social grid, SCvNGr
stresses interesting scavenger challenges that brands (such as aT&T re-
tail, Coke and american eagle) can design and offer rewards for.
Entrepreneur // March 2011 67
 money
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before the stock market crashed. During

the early days of the financial crisis, ven-
ture capital investment also plummeted.
Pieri needed money to grow the site, but
she also knew she was not likely to see
THERE’S GOING eye to eye with VCs who typically want
TO BE A LIMIT fast growth. Her business vision required
slower, thoughtful growth to build a
WHERE THEY CAN’T community and find innovative products.
CARRY THE BUSINESS At the same time, her access to
FORWARD. THAT’S angels was yielding the investment she
needed, including a $3.4 million infu-
THE DOWNSIDE sion by Race Point Capital Fund and
OF ANGELS. Gerry Laybourne, founder of Nickel-
odeon and Oxygen Media, and other
angel investors, which closed in April.
“Jules is a superstar,” says Christo-
pher Mirabile, director of Race Point
Capital. “The market she’s going after—
this curated content or community-
meets-content-meets-community—is just
a huge, huge opportunity.”
Daily Grommet is using the money
to invest in new customer acqusition
methods, overhaul the site, add more
community tools and expand its reach
through media exposure, Pieri says.
Mirabile says angels are going
“up-market,” working in groups and
in more coordinated fashion. There
is some blurring between angel funds
JULES PIERI HAS A and seed or early-stage VC funds,
VISION FOR MORE he says, but angels invest their own
GRADUAL GROWTH. money rather than act as fiduciaries,

Looking to angels
so they typically can be more patient
about growth. “The reach, sophisti-
cation and coordination of the angel
community is much greater than it
ever was,” he says.
To expand its community and grow at a more patient pace, Pieri agrees, but she also believes
Daily Grommet decides to steer clear of VC firms—for now Daily Grommet will reach a point
where it will need the bigger cash

W
ith an education in industrial design, a Harvard MBA and an execu- infusions that are more common from
tive stint in strategic development for brands like Stride Rite, Keds VC firms, and she is positioning the
and Playskool, Jules Pieri has the savvy to spot a consumer trend. company to court them eventually.
So when she noticed that upstart manufacturers were having “There’s going to be a limit where
trouble getting shelf space in an increasingly consolidated retail market—despite the they can’t carry the business forward at
unprecedented flood of new products fueled by access to design and manufacturing the level it needs to be supported,” Pieri
capabilities—she sensed an opportunity. Pieri also knew that many consumers want says. “That’s the downside of angels.”
innovative products that emphasize “something good in the world, whether it’s tech- Mirabile looks for companies that
nology or green enterprise,” she says. Add the power of social media, giving people can “go angel all the way,” but knows
PHOTO© DAVID LANG

the ability to share information about their favorite finds, and you have the recipe entrepreneurs must do what’s best for
for Daily Grommet, a Lexington, Mass.-based website that champions independent business. Still, he says, “the idea that
entrepreneurs creating cool products by building a large online community. you need a deep-pocketed VC to change
Two business-minded friends loved the idea and became Pieri’s first angel inves- the world and build a Google or Face-
tors. With that initial $150,000, she launched the site in October 2008—a week book is misguided.” —GWEN MORAN

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68 Entrepreneur // March 2011
 WorldMags

When
money
is due
Know the risks and what
to ask before extending
credit to your customers

B
efore banks extend credit,
they verify the prospective
borrower’s credit history
and ability to repay, among
other things. That’s not as common
in the $2 trillion unsecured, or trade,
credit market, says Alex Coté, vice
president of marketing for Cortera,
a credit-risk monitoring service in
Boca Raton, Fla.
“I recently spoke with a woman
whose business was running into
trouble because she wasn’t monitoring
her customers’ payments,” he says.
“Everything was very late—60 days or
more. She didn’t realize it. They were
looking at layoffs and, really, the prob-
lem was that they weren’t collecting.” CHECK PUBLICLY AVAILABLE INFORMATION. The company’s social me-
To keep an eye on your customers dia streams, the news release section on its website and information available
and their ability to pay what they owe, through simple search engine exploration can help you determine whether the
Coté gives this advice: company is having problems that may affect its ability to pay. Publicly traded
companies also must regularly file fact-filled reports about the state of the busi-
REQUIRE A CREDIT APPLICATION. ness with the Securities and Exchange Commission. These are usually available
Every business requesting credit on the company’s website or through sec.gov, using the site’s EDGAR service.
should complete a credit application
PHOTO© TH INKSTOCK PH OTOS/ABLESTOCK.COM

that includes basic information like
address, contact information and tax
ID number, as well as references from
other businesses that have extended
credit to them. It’s unlikely a business
will list a contact that will say some-
thing negative, but if the company
has trouble coming up with three or
four good references, it could be a
red flag. Be sure to check the applica-
tions, too, Coté says. Too many small
companies collect the data and then
fail to verify it, he says.
USE CREDIT EVALUATION TOOLS. Business credit evaluation tools provide
different information at varying costs. Cortera and On Deck Capital, a busi-
ness lender based in New York City, both offer free tools. The biggest name in
the space is information services giant Dun & Bradstreet, which offers DNBi
CreditAdvisor products that include credit reporting and monitoring. Fees range
from $179 for one company to $1,499 for 15 companies. Cortera offers a credit
monitoring tool for small businesses, which includes information on privately
held companies and a community-based approach to intelligence gathering,
for $99 per month. Consumer credit giants Equifax and Experian also provide
credit monitoring tools for small and midsize businesses.
Gathering information about customers’ cash flow isn’t just something you do
at the outset of a relationship, Coté says. Watching out for problems that could
affect your customers’ ability to pay you can help you avoid getting burned. —G.M.

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Entrepreneur // March 2011 69
 money
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Is subleasing Beer
a solution? and
Those offices you’re paying for and not using can bring
in some extra cash. But being a landlord can be tricky
Bucks
F
business, if it’s allowed at all. ood,

F
bever-
or companies that have downsized or find themselves with more space age and
than they immediately need, subleasing that extra square footage might hospitality
make sense. But subleasing isn’t as simple as finding a tenant and collect- businesses have an
ing a check, says Todd Anderson, senior managing director at CB Ellis, a unexpected place
commercial real estate firm in Los Angeles. Keep these cautions in mind: to turn for a little
Check what rights you have in your lease. If you don’t own your building, your cash. the Brewing
landlord may not allow subleasing, may limit the types of businesses to which you the American Dream
can sublease or may stipulate the rent at which you can sublease, because the build- program was created
ing doesn’t want to compete with its own tenants for new occupants, he says. Those by the Boston Beer
conditions may also change depending on the occupancy levels of the building. Co., makers of Samuel
Make sure the space is suitable. Anderson suggests checking that the space, Adams brews, and AC-
once divided, meets fire and exiting codes. If the space does not, you may not be CIoN USA, a nonprofit
able to sublease it. specializing in micro-
Check with your neighbors. If your lease and space allow you to sublease, lending to low- and
check whether tenants in your building need more space. They’re often more moderate-income
motivated to choose adjoining or nearby space and may be able to move in entrepreneurs. the
sooner, especially if they’re in too-tight quarters, Anderson says. fund, launched in
Look for suitable tenants. Cast a wider net if no neighbors can take your 2008, has granted
space. However, be sure that the businesses you consider won’t be excessively 59 loans, averaging $7,000 each.
noisy or engage in practices that are against your building’s rules. Checking their Loan sizes range from $500 to
financial stability is also critical, he says. Ask for audited financial statements, $25,000 and, to date, every loan
credit references and a bank reference. that has come due has been paid.
If you rent your space from someone else, it’s likely that the landlord will to qualify, businesses should
require final approval once you find a prospective tenant, so be prepared for contact ACCIoN (accion.org) and
that extra step. —G.M. speak with one of its loan consul-
tants. they evaluate entrepreneurs
according to criteria like length
of time in business, cash flow and

how i saved
AShLI NortoN, Co-FoUNDEr, SIMPLELEAP SoFtwArE, AtLANtA
how much the business owner has
invested or can invest in the opera-
tion. ACCIoN checks the business
owner’s credit history to ensure the

W
e’re a small software firm that We chose to simply redirect our phone owner can handle additional debt,
develops apps for the Mac
Photo© th INKStoCK Ph otoS/ Ph otoDISC

and iPhone. We’re constantly
looking at expenses to find new things
to cut. By converting all of our dozen
domains to one shared deluxe, com-
bined plan through our domain host,
we cut our annual costs from $718.56
to $83.88. We also found that we
weren’t using our phone lines as much
as we used to, so we eliminated our 800
number and all of our landline phones.
calls to our mobile phones using Google
Voice, which announces the caller to us
and allows us to make free outbound
calls on the web and on our iPhones.
That cut $119.88. Finally, we cut our
online newsletter costs by breaking
down our mailing lists into smaller mail-
ing lists and using a service that offers
free mailings to lists of 1,000 or fewer
subscribers. Our average savings is $540
per year. —AS toLD to GwEN MorAN
and the organization requires a
minimum credit score of 575. the
evaluation also includes some intan-
gibles, such as the applicant’s per-
sonal character and passion for the
business. Interest rates range from
8.99 to 15.99 percent, and terms
vary from three to 48 months, de-
pending on the loan. ACCIoN also
has programs for business owners
in other industries. —G.M.

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70 Entrepreneur // March 2011
 WorldMags

She expanded her buSineSS with a new location.

now the hartford iS expanding her employee benefitS.
For business owners, the future is always top of mind. And when hard work leads to the
possibility of expansion, be ready. The Hartford helps over a million businesses seize the moment
with a broad variety of products — many of which are industry specific — to help you grow and
help your employees prepare for their financial future. So go forward with confidence. Hear real
stories from business owners like you at achievewhatsahead.com.

With The Hartford behind you, achieve what’s ahead of you.®

© 2011 The Hartford Financial Services Group, Inc., Hartford, CT 06155. All rights reserved.

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 your money
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“The idea is to spend within your

means,” Wang says. “Don’t charge
more than you’re able to pay back in
a month. If you carry a balance, you
negate most of the benefits.”
Not all credit cards are created
equally, of course. Some carry high
fees and onerous interest rates. In
2009, Congress passed the Credit
Card Act, designed to protect con-
sumers from some of the worst credit-

Credit care
card company tricks, but it can still
be tough to sort the wheat from the
chaff. To find a credit card that best
suits your needs, consult Consumer
Reports or visit card comparison
How to use credit cards to their fullest advantage— websites such as IndexCreditCards
without getting buried in interest and debt .com or CardRatings.com.

W
Small-business owners should be
hen people learn that I write about personal finance, they naturally careful, though.
assume I’m opposed to credit cards. That’s not quite true. I’m op- “Business credit cards aren’t regu-
posed to credit card debt. lated by the Credit Card Act,” notes
According to the Federal Reserve’s most recent survey of Curtis Arnold, founder of CardRat-
consumer finances, roughly 46 percent of American families carry a credit card ings.com. “In fact, some companies
balance, and nearly one in four owe more than $3,000 on their plastic. are issuing ‘professional’ cards to get
Because of this, some folks believe credit cards are evil. But credit cards are no around consumer regulations.”
more evil than a chain saw. Sure, my chain saw can be dangerous, but only if I Arnold, author of How You Can
use it like an idiot. Used wisely, credit cards can be valuable tools, especially for Profit from Credit Cards, says that
small-business owners who can earn reward points and manage their cash flow banks are targeting entrepreneurs ag-
while paying the monthly bills. gressively with these cards.
Jim Wang, for instance, loves his credit cards. The entrepreneur from Colum- “Some small-business owners have
bia, Md., writes about personal finance at Bargaineering.com. He controls his switched from business cards to con-
credit cards instead of letting them control him. sumer cards to get protection,” he says.
“I carry three cards,” he says. “They’re all cash-back or rewards cards. One “To get the same protection, consider
card’s for business; one offers rewards at restaurants, movie theaters and book- applying for a personal card in your
stores; and one offers cash back on everything else.” business’s name. As long as you’re
Another bonus? Credit cards make money management easier. “I like that all not actually mixing your business and
my spending records are in one place,” Wang says. personal accounts, you’re fine.”
If you choose to use credit, be smart. This isn’t free money. Live by three basic Credit cards aren’t evil, but they
Photo© th INKStoCK Ph otoS/ABLEStoCK.CoM

rules, and you can safely use credit without getting burned. can be dangerous. Just as you handle
a chain saw with care, you need to be
• Read the fine print. You should read every contract you agree to, and a equally cautious with credit to avoid
credit card is no different. Reading the paperwork alerts you to the card’s hurting yourself (and your business).
hidden benefits—and its hidden pitfalls. Used wisely, credit cards can actually
• Review your statement every month. Watch for fraudulent transactions, but give you a financial edge. —J.D. Roth
also keep an eye out for changing due dates, fees and interest rates. And
don’t be afraid to speak up. If something seems strange (or you want a rate J.D. Roth (JDRoth@GEtRIChSLoWLY
reduction), call customer service. .oRG) IS FoUNDER AND EDItoR oF
• Don’t buy anything with your credit card unless you already have cash in the thE PERSoNAL FINANCE BLoG GEt
bank to pay for it. Don’t let your having a credit card influence your shopping RIChSLoWLY.oRG AND AUthoR oF
decisions. A credit card isn’t a license to spend—it’s just a different way to pay. YOUR MONEY: THE MISSING MANUAL.

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72 Entrepreneur // March 2011
 WorldMags

experience
efficiency that
puts time back
on your side.

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mentioned herein are registered trademarks or trademarks of Sage Software, Inc. or its affiliated entities.

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If you’ve got motivation, a willingness to work hard, and a desire to be financially

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 WorldMags

RE-
FORM
SCHOOL
BY CRAIG GUILLOT

Healthcare
reform isn’t
a done deal,
but you
PHOTO© THINKSTOCK PHOTOS/STOCKBYTE

still need
to prep for
upcoming
changes
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Entrepreneur // March 2011 75
 WorldMags

H
ealthcare reform is likely
driving you crazy. Besides
the thousands of pages BURIED IN REFORM
in the bill, the countless
changes and the newly sworn-in Re- The law’s provisions go beyond healthcare. One that goes into effect
publicans’ promise to repeal the whole in 2012 was buried deep within the bill’s pages. Businesses will have to
thing, it’s hard to keep track of what is send 1099 forms to vendors they purchase more than $600 in goods
headed your business’ way. or services from during the year. This could create a tremendous
“There’s a lot of confusion out amount of paperwork for small businesses come tax time. A typical
there and many people just aren’t small-business owner files an average of 10 1099s, says Molly Brogan
clear on the new changes,” says Mark of the National Small Business Association, citing its surveys. With the
Kellenbeck, a founding principal and new legislation, businesses could be sending an average of 86 forms.
COO of Cascade Management, a real “Some small businesses are going to find it a huge burden and will
estate management services company likely start consolidating their purchases to minimize the 1099s they
in Wilsonville, Ore. have to file. I think that will ultimately take away business from some
A midyear National Small Business small businesses,” Brogan says.
Association survey found that
79 percent of small businesses had
little or no idea how the new laws
would affect them.
Though change may come (again),
several provisions of the Affordable
Care Act took hold in 2010 and more
will roll out this year. For some small-
business owners, they feature significant
changes in the way employees’ health-
care will be provided. But there are
possible benefits as well.
Employers will be required to
report on each employee’s W-2 the
value of the health insurance they
provide, although the IRS will defer
reporting requirements for 2011.
The act also calls for new group
health plan requirements as well as
changes to flexible spending arrange-
ments, including the requirement for
a prescription for over-the-counter
drugs. And business owners who give
clients a nice glow have a special
provision: an excise tax on indoor
tanning services.
How much the new law bumps
into (or benefits) your business will,
for the most part, come down to
size, says Molly Brogan of the Na-
tional Small Business Association in
Washington, D.C.
PHOTO© TH INKSTOCK PH OTOS/ DIGITAL VISION

Small employers that pay at least

half of the cost of single coverage for
their employees will gain the Small HOW MUCH THE NEW
Business Health Care Tax Credit. “If
you are providing health insurance LAW BUMPS INTO
(OR BENEFITS) YOUR
or you start providing it, you can
get this helpful tax credit. It’s geared

BUSINESS COMES
toward businesses with low-wage
earners that typically have a much
more difficult time providing health
insurance,” Brogan says.
The credit—which can be claimed DOWN TO SIZE.
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76 Entrepreneur // March 2011
 WorldMags

IS YOUR
CURRENT
HEALTH PLAN’S
CHECK-ENGINE
LIGHT ON?

When your employees get sick,

it’s too late to find out their health
plan doesn’t measure up. At
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will thank you in ways that can help
your business grow healthy. Talk
to your broker, call 1.877.232.8831
or visit uhctogether.com/ent.

Start now. Visit uhctogether.com/ent

©2010 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by UnitedHealthcare Insurance
Company, United HealthCare Services, Inc. or their affiliates. Health plan coverage provided by or through a UnitedHealthcare company.
UHCEW492156-000

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on Form 8941—is for employers

with fewer than 25 full-time em-
ployees or 50 part-time employees
with an average annual wage below
$50,000. The credit is worth as
much as 35 percent of a business’s
premium costs in 2010, and in 2014,
it will increase to 50 percent.
The bulk of the reforms related
to the legislation will not go into
effect until 2014. By then, states
will have to set up Small Business
Health Options Programs in which
small businesses can bond together
and buy group-style insurance. The
exchanges will be open to businesses
with no more than 100 employees.
By 2014, companies with more than
50 employees that don’t offer quali-
fied coverage to their employees, and
that have at least one employee who
receives the premium tax credit, will
be required to pay fines of $2,000
per full-time employee, excluding the
first 30 employees.

THE PULSE ON
HEALTHCARE REFORM
Entrepreneurs are happy and frus-
trated about the legislation. Susie
Morrissey, president and CEO of
Bell Janitorial in Dallas, says she’ll
do everything she can to keep her
employee count below 50. Much of
her competition hires independent
contractors who are not subject to the
new rules, but Bell Janitorial classifies
its workers as employees. To grow
the company and maximize profits as the only affordable solution.
STAY AHEAD
without pushing her employee count “I think they’d rather put that OF CHANGE
past 50, Morrissey says she’ll have to [fine] toward health insurance, but
plan the right customer and employee I think there are going to be a lot of The U.S. Department of
mix. That will likely result in raising people who just opt to take the pen- Health and Human Services’
prices—or firing some customers. alty,” she says. healthcare.gov site includes
“When I am at the 50 mark, I will Cascade’s Kellenbeck says the ef- a section that highlights
look at my options and whatever is the fect on his business will be relatively changes and requirements
best for my company is what I’m go- minor until 2014. His company has for small-business owners
ing to do. If it’s better to pay the fine, approximately 350 employees and through 2014.
PHOTO© THINKSTOCK PHOTOS/COMSTOCK IMAG ES

then that’s what I’ll do,” she says.
Indeed, many small-business owners
may very well opt to pay a fine. The
$2,000-per-employee penalty sounds
like a lot of money but it pales in com-
parison to the average cost of $5,000
in premiums for an individual or
$12,000 for a family—with employers
paying as much as half. Many small
businesses take pride in providing
health insurance for their employees,
Brogan says, but some may see the fine
already provides healthcare coverage
for its full-time workers. With premi-
ums increasing 100 percent during the
past seven years, he says healthcare
has been Cascade’s fastest-rising cost.
Kellenbeck believes the legislation will
reduce premiums in the long term and
predicts just who will be affected.
“It is the businesses that have pro-
vided no coverage or limited coverage
that felt they couldn’t afford it or just
chose to operate without it,” he says.
The NSBA also has
launched a healthcare
reform information site
at healthreformtoday.org.
“They are the ones who are really
going to be impacted.”
CRAIG GUILLOT IS A WRITER IN
NEW ORLEANS.

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78 Entrepreneur // March 2011
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 WorldMags
The terminal
case of sorry
sandwiches
that travelers
must suffer
through in
most airports
may finally
be sent
packing

futuristic foodie:
chef Jason denton
at bar brace cafe
in new York’s Jfk.

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80 Entrepreneur // March 2011

haute
hub dining
By Bruce Schoenfeld | PhotograPhy By natalie BraSington
T
he knives give it away.
Constructed from TSA-
mandated plastic, not
steakhouse steel, they
dispel the illusion that
my New York strip is being served at
a top-tier Manhattan restaurant and
remind me that we’re just past security
at LaGuardia Airport’s Terminal D.
Everything else here at Michael Lo-
monaco’s Prime Tavern, from the so-
licitous service and extensive wine list
to the quality of the beef, would pass
muster at Lomonaco’s Porter House,
the critically acclaimed carnivorium
in Manhattan’s glittery Time Warner
Center. And why shouldn’t it? The
celebrity chef helped create the Prime
Tavern concept, train the staff and
write the menu. I’m told he even turns
up occasionally to cook the food.
As a frequent business traveler,
I’m accustomed to suffering through
airport meals from bland national
chains that all seem to offer the same
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four appetizers and entrees. So the
idea of getting housemade condiments
and nightly specials, never mind a
shot at finding a famous face actually
working in the kitchen, is a pulse-
quickening thrill.
“But this isn’t an airport restaurant,
it’s a restaurant that happens to be
in an airport,” says Rick Blatstein,
the CEO and guiding spirit of OTG
Management, the restaurant company
responsible for Prime Tavern and the
other concessions at Delta Airlines’
Terminal D. “Michael is using the
same meat here that he uses at Porter
House. We have a full menu and spe-
cials every night. And we charge street
prices, not airport prices.”
At Terminal D, OTG has partnered
with well-known chefs and restaura-
teurs on the most ambitious selec-
tion of restaurants at any American
airport. Bisoux, a Provençal bistro
by the team behind New York’s
renowned Balthazar, began serving its
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duck confits and niçoise salads late
last year, the same time that Prime
Tavern opened. Coming soon are
concepts from, among others, Andrew
Carmellini of Locanda Verde, Jamison
Blankenship of Morimoto, Chris Can-
non of Alto and L’Impero and Jason
Denton of ’inoteca and Corsino. These
aren’t the typical national names, the
Wolfgangs and Emerils, that usually
show up as project headliners. Termi-
nal D features successful New York
restaurateurs who want to give their
LaGuardia projects the attention they
deserve. “It’s just like opening a new
restaurant in another part of town,”
Blatstein says.
He takes a bite of his salmon, broiled
to a perfect carnation pink. “Why hasn’t
this been done before? I have no idea.
We’re doing something really wonder-
ful, the traveling public is embracing it,
and it seems so obvious to me. But it
took me 10 years to convince airports
and airlines. Finally, they’re getting it.”
Entrepreneur // March 2011 81
 WorldMags
at the helm: rick
blatstein, ceo of
otG manaGement.

I
t might be hard for today’s
frequent traveler to believe, but
some of America’s best res-
taurants were once located in
airports. New Yorkers who weren’t
even planning to fly would travel to
Idlewild, the precursor to John F. Ken-
nedy International Airport, for dinner
at the Golden Door. The circular Seven
Continents served Chicago’s O’Hare
International Airport from 1963 into
the 1990s. At the Theme Room in
Los Angeles in the 1960s, a waitstaff
wearing sarongs or lederhosen served
authentic dishes from around the
world. (Later, it evolved into a high-
end French restaurant serving escargot
and lobster fricassee.)
Air travel was luxurious then, and
the linen tablecloths and multicourse
meals that passengers enjoyed before
and after flights provided a fitting
counterpart to in-flight service of the
same standard. But as deregulation
brought exponentially more pas-
sengers to airports, those distinctive
eateries eventually gave way to na-
tional brands selling high-volume food
out of minimal kitchen space, much
like those at a typical big-city sports
arena. Ticket-holders who would have
been happy to spend liberally on an
expense-account dinner wandered
around with money in their pockets, in the Philadelphia airport. “My head- stein says. And LaGuardia is about 20
straining to find anything more entic- line acts,” he says, “became Boeings minutes closer to Manhattan by car,
ing than an $8 roast beef sandwich and Airbuses, delivering customers so it’s the airport of choice for execu-
and a glass of generic Chardonnay. directly to my door.” tives headed out of or into the city. The
Denver International Airport, the He expanded into other markets combination means at least a theoretical
most recent major aviation facility but wasn’t able to implement his grand customer base of frequent travelers who
to open in the United States, debuted vision until OTG won the right to don’t balk at $40 restaurant entrees.
in 1995 without a single full-service create a dramatic, multiconcept dining Few domestic routes offer compli-
dining venue, after someone had hall at JFK’s Terminal 5, which is run mentary meals anymore, so Terminal
evidently concluded that fast food by jetBlue. That opened in 2008, just D also has a fast-food court for grab-
was all that passengers wanted. Since as the stock market was cratering. and-go options. But these options will
then, the situation has improved Dining options include Piquillo, an au- satisfy even the most finicky of NYC’s
around the U.S. with the prolif- thentic Spanish tapas bar, sushi from self-proclaimed foodies. There are
eration of Wolfgang Puck Cafes, Buddakan’s Michael Schulson, pasta hamburgers from cult-favorite butcher
which sell edible pizzas and salads, from Del Posto’s Mark Ladner and 29 Pat LaFrieda and pizza from Brook-
and outposts of popular regional other concepts (including a few na- lyn’s Dominick DeMarco.
chains—such as Legal Sea Foods in tional chains such as Jamba Juice and “Imagine, this is our McDonald’s,”
Boston and beyond, Philips on the Dunkin’ Donuts). Its $8 per-passenger says OTG head chef Michael Coury as
mid-Atlantic seaboard, Anthony’s in “spend,” according to Blatstein, ranks he bites into a chubby LaFrieda cheese-
the Pacific Northwest—that operate as the highest in the industry. burger. “And this,” he says, walking
with greatly reduced versions of their Terminal D constitutes the next over to the World Bean coffee stand to
usual menus. Still, there’s rarely any- step. The project is more ambitious show off its hand-built Slayer espresso
thing satisfying to eat, and almost than JFK’s Terminal 5 because the pas- machine, a gleaming piece of machinery
never anything truly interesting. sengers who step off Delta’s planes are with the lines of a Lamborghini, “is
Blatstein, a former restaurant and more likely to be businesspeople than what we have instead of Starbucks.”
nightclub owner, started in concessions those who’ve flown jetBlue. The grand plan isn’t to put Lomo-
in 1996 with Jet Rock, a bar and grill “You see a lot more suits,” Blat- naco and Denton in cities across the

WorldMags
82 Entrepreneur // March 2011

country, but to find similarly accom-
plished chefs and restaurateurs in
every city. So Blatstein puts Coury in
the air for 120,000 miles a year, letting
him eat his way through North Amer-
ica while amassing concepts for OTG
to pitch to airport authorities and
other governing bodies as opportuni-
ties arise. “The concessions contracts
at 90 percent of U.S. airports expire in
the next 10 years,” Blatstein says. “We
strongly believe that customers will
demand this change, and the industry
will recognize it and respond.”
A
tasty ripple effect has
already started. In Los
Angeles, the British-based
catering firm SSP presented
the City Council with a proposal that
would bring Patina Group’s Joachim
Splichal, Border Grill’s Too Hot Tama-
les, Nancy Silverton of La Brea Bakery
and Mozza, and other big-name
Southern California chefs to four
terminals at Los Angeles International
Airport. Late last year, O’Hare de-
buted a full-service sushi and seafood
bar in Terminal 2; $100 tabs for two
are already commonplace.
“It doesn’t have a celebrity chef,”
says Rosemarie S. Andolino, commis-
sioner of the Chicago Department of
Aviation, “but it does have a master
sushi chef. It’s authentic, fresh and ap-
pealing. That’s what we’re looking for.”
HMS Host also has contracted with
Chicago’s Rick Bayless (Topolobampo,
Frontera Grill) to open fast-food
and sit-down concepts elsewhere at
O’Hare, and discussions with res-
taurateur Art Smith, formerly Oprah
Winfrey’s personal chef, are continu-
ing. “People are spending much more
time in airports now,” Andolino says.
“You want to be able to offer them a
variety of options.”
But Blatstein is the one pushing the
envelope. These days, he only wants
contracts with entire terminals so that
OTG can control the overall dining
atmosphere. Denton’s Bar Brace is the
centerpiece of Blatstein’s most daring
idea: converting a gate in Kennedy’s
Terminal 3 into a futuristic Italian
café—without giving up the space’s
original function.
“It’s the single largest piece of real
estate at airports around the world
and the most desirable location for a
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customer to be. Before this? It was do-
ing absolutely nothing,” he says.
The prototype opened at a single
Delta gate just after Thanksgiving, and
it is compelling. Rather than the usual
spectator-style seating outfitted with
rows of metal-and-plastic chairs, the
gate has café tables and banquettes
with electrical outlets, and touch-
screen computers offering Internet
access (to a range of preset websites).
The café—with orders entered by
iPad—serves small dishes and panini,
as well as wines by the glass and
cocktails. That means sipping your
Negroni, scrolling through up-to-the-
minute news stories and watching the
game on DirecTV right up until the
moment your row is called.
A slightly different prototype with
a restaurant just outside the gate is in
JFK’s Terminal 2, and LaGuardia is
scheduled to get one of each later this
year. “Our view is that it’s a game-
changer in customer experience,” says
Wayne Aaron, Delta’s vice president
of marketing. “We’ve been very, very
pleased by the initial reaction.”
Kennedy was the perfect place for
the experiment because Delta operates
and owns the terminal. When OTG
suggested blurring the line between con-
cessions and gate space, the airline was
able to give the all-clear. Replicating it
elsewhere will be more challenging—the
airline’s relationship with each airport
authority is different—but if consumers
remain enthusiastic about the experi-
ence, similar concepts are likely to start
appearing around the country.
And Blatstein’s creative thinking ex-
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bar brace:
redefininG
the pre-fliGht
experience.
tends beyond food and drink. As I was
leaving Prime Tavern, I ran into Mar-
celo Surerus, who formerly ran the
concierge program at Starwood’s W
Hotels. Blatstein hired him to install
a concierge service for Delta VIPs at
Terminal D. The black-clad staff will
be available to make hotel reservations
on the fly, meet late-arriving custom-
ers with ordered food and solve other
problems travelers encounter along the
way. If you’re a top Delta customer
with a tight connection or a special
desire, you can call ahead, but Surerus
stresses that anyone with a need will
be taken care of. “Just like I’d do in
the lobby of a hotel,” he says, “except
it’s in an airport.”
If facilities managers across the
country can get beyond constraints
in budget and space and adopt some
of these innovations, the result would
seem to be an enormous change for
the better in how passengers experi-
ence air travel. As Blatstein describes
it, flying sounds almost civilized again.
“Everyone has to go through
security, there’s nothing we can do
about that,” he says. “But once you
get through, we’re determined to make
you forget that you’re at the airport.”
Plastic knives aside, he’s off to an
admirable start.
Bruce Schoenfeld iS the wine
and SPiritS editor of Travel +
leisure and an award-winning
author and televiSion writer.
hiS writing haS aPPeared in PuB-
licationS Such aS GourmeT and
Food & Wine.
Entrepreneur // March 2011 83
 WorldMags

Style wiSe

WorldMags
84 Entrepreneur // March 2011

I
f, while watching The Social
Network, you were either not
horrified by or—shudder—gave
a thumbs up to Mark Zucker-
berg’s shower sandals style, this
article is for you. (If you wore
shower sandals to the movie theater, this
article is really for you.)
Flipping through back issues of
Entrepreneur, we noticed that budding
business moguls consistently make
some prominent fashion faux pas.
What did we see? Open dress shirts
over graphic-emblazoned T-shirts.
Pack up the wrinkled khakis
e and sad, old graphic tees.
Your business deserves better.
By Erin WEingEr | PhotograPhy By nataliE Brasington
Wrinkled slacks paired with hiking
boots. Dirty sneakers that Goodwill
workers would reject. And, sigh, a
continuing love affair with really thick
early-’90s neckties and Matrix-ready
all-black ensembles.
To give you an idea of how to amp
up your own style (and business), we
asked Los Angeles celebrity stylist
Monica Schweiger to put her taste to
work for one up-and-coming entre-
preneur. Schweiger has had a hand in
dressing style icons including Ander-
son Cooper, P. Diddy and musician
Mayer Hawthorne.
Schweiger’s challenge: turn Randall
Weidberg, founder and CEO of Boulder,
Colo.-based social shopping website
Giantnerd.com, from chief nerd to
something far (far) hipper—without
pushing his personality out of the
picture. This, in spite of the fact that
Weidberg didn’t think a makeover was
a must for his life or business.
“At the end of the day, you’re think-
ing about your company and what you
need to do to make it grow,” he says. “It
isn’t really about what you’re wearing.”
True. But lack of attention to your
WorldMags
duds can detract from your business
message. Would you rather potential
investors pay attention to your wrinkled
tee or to your bold idea? An entre-
preneur is also the public face of the
company. Since launching his outdoor
enthusiast-focused e-commerce com-
pany last year, Weidberg has attended
countless meetings, spoken on plenty of
industry and tech panels and, yes, he has
even appeared on Entrepreneur.com.
We sent Weidberg to meet Sch-
weiger at Ever, a decidedly cool L.A.
shop. There, the stylist kicked off the
entrepreneur’s education on the art of
modern business-casual style.
“When it comes to a business outfit,
it really depends on the occasion,” she
says. Case in point: You don’t want
to wear the same thing you’d sport to
a coffeehouse get-together with your
graphic designer to a formal boardroom
meeting with a venture capitalist.
But if you insist on pushing the
boundaries of business dress, we beg
of you: Learn how to iron (or, better
yet, find a good dry cleaner).
Schweiger suggests buying structured
jeans in a natural to dark wash. A
good pair of jeans is a versatile friend.
Combine them with sneakers and a polo
shirt for casual days or desert boots and
a sport coat for meetings.
Schweiger replaced Weidberg’s
khakis with a pair of Ever’s coated black
Maywood jeans ($198), which, she says,
can easily be dressed up or down.
“I love these,” Weidberg says, admiring
the pants. “They definitely look different
than what my programmers would wear.”
Of course, there are times when
something dressier is in order. “It doesn’t
hurt to invest in at least one tailored suit
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that actually fits,” Schweiger says.
If you’re living on a startup king’s
budget, she suggests going to a vintage
store or resale shop where gently used
designer suiting can usually be found
for a lot less than retail. “Also, H&M
is great for inexpensive and shock-
ingly well-fitting men’s suits,” she says.
Then, have that suit tailored.
Piece by piece, Schweiger fixed some
of our entrepreneur’s most glaring
crimes of fashion. Then she took him to
Gavert Atelier salon in Beverly Hills for
a quick cleanup. Stylist Mika Fowler,
who counts Glee cast members as
clients, didn’t even bust out her scissors
for Weidberg’s shaggy mane. She says a
full-on cut is unnecessary if the goal is
a polished look for meetings and speak-
ing engagements. “Product is the most
important thing,” she says.
For Weidberg’s longish hair, Fowler
used liberal amounts of Joico’s Design
Collection Flexible Shaping Spray and
Humidity Blocker to achieve a shiny,
natural, stay-put look. Total time for
the coiffing process? Five minutes.
“You don’t have to spend a lot of time
to look put together,” Schweiger says.
Really, she adds, style is just about
“paying attention to the details.”
Swap the boring businessman leather
shoes for retro sneakers. Trade out
the graphic T-shirt under your open
button-down for a solid color. Make
sure things match. But don’t take your
outfit too seriously.
“And look in a mirror before you
leave the house,” Schweiger says.
“That’s usually the biggest help of all.”
See our makeover reSultS
on page 87. >>>>>>>>>>>
Entrepreneur // March 2011 85

GLASSES:
Nerd glasses are all
the rage, as evidenced
by Jay-Z and Justin
Timberlake. But when
worn with the wrong
ensemble, they’re just
that—nerdy—and not
in a good way. “You
don’t want them to
look like a parody,”
celebrity stylist Mon-
ica Schweiger says.
Randall Weidberg’s
clear frames work
perfectly for his
Giantnerd persona.
But for real-world
dressing, the CEO
leaves his whimsical
glasses at home. Find
a pair that fits your
face and comple-
ments your style.
BEFORE
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86 Entrepreneur // March 2011
A
WorldMags
HAIR:
A makeover with no haircut?
Why, yes we can. Weidberg told
us that his girlfriend would have
killed him had he returned to
Boulder with less hair than when
he left. Luckily, hairstylist-to-
the-stars Mika Fowler assured
Weidberg that a new, polished
look was completely possible
sans scissors. “Product is the
most important thing,” she says.
For Weidberg’s straight, shaggy
mane, Fowler used Joico’s
Design Collection Flexible Shap-
ing Spray ($15) and Humidity
Blocker ($20) to keep stray
strands in check. Don’t be afraid
to mix and match your prod-
ucts, too. Just make sure you
read—and follow—the directions
on the bottle.
WATCH:
Weidberg’s own
watch infuses a
touch of personality
into both ensembles,
something stylist
Schweiger says is
a good thing. And
once his outfit is
gussied up, that
personal touch
keeps things decid-
edly Randall. Use
small accessories
to add your flair to
an outfit.
AFTER
WorldMags

SHIRT:
Dress shirts are, as the
name says, for dress-
ier occasions. Unless
you’re wearing a suit,
leave yours at home.
Schweiger put Weid-
berg in Ever’s Biggs
cotton button-down
($148), which works
better in today’s laid-
back, geek-chic busi-
ness atmosphere. One
to avoid at all costs:
“White short-sleeve
dress shirts read IT
guy,” our stylist says.
PANTS:
In today’s casually dressed
culture, it might be tempting
to throw on the jeans crum-
pled next to your hamper.
Step away from the laundry.
“You don’t want to come
across as sloppy, no matter
what situation you’re in,”
Schweiger says. If you insist
on khakis, make sure they’re
ironed. Otherwise a good pair
of dark, structured jeans (that
are clean, natch) go a long
way. Pair them with sneakers
and a polo shirt for casual
days or, for meetings, desert
boots and a sport coat.

SHOES:
“Shoes are so important,” Schweiger
says. “They speak volumes about a
person.” Save your old gym shoes
for walking your dog. A pair of retro
sneakers is appropriate for casual busi-
ness encounters. “Get a pair of plain
old Converse,” she says. “They look

E
classy and new.” And be careful with
dress shoes. The wrong pair can feel
very Night at the Roxbury. For deal
closings, Schweiger suggests chan-
neling the Beatles in a pair of vintage
Chelsea boots.

ERIN WEINGER IS A FREELANCE WRIT-

ER IN LOS ANGELES AND PUBLISHER
OF THE WEBSITE STYLE SECTION L.A.

WorldMags
Entrepreneur // March 2011 87
 start it up
WorldMags
WACKY
IDEA

p r i s e !
HOW IT W

u r
O

S
surprisees, or th RKS: The clients themselv
ey can hire the es can be the
they know. Su co
rprisees have no mpany to surprise someone
from some hint idea what they
s, a ’re paying for,
what kind of ex location and an arrival time. aside
v e rs pe rience they wan They’re asked
rk e rs d e li t (a
A trio ofs N ew Yo e to order mysterious) an dren alin
d what the occa e-spiked, romantic,
u fe te s m a d In du st sion is. Then,
fabulo D ud ina and
ri es’
of surprise” on
team, including
13 part-time “a
Surprise
K at ge
EURS: Tania Lu
na , call for emerge nts
ENTREPREN a New York
stries, sessions, makes ncy brainstorm
ris e Indu it happen by cont ing
founders of Surp ts for individuals and busi- people and pu acting the righ
Maya Gilbert, ev en ttin g to t
ans surprise er tastings and
a gether the surp
company that pl on s, pr ivat e be d
rise.
apeze less actors in costum
e an
nesses. Think tr rt y complete with es s.
rthd ay pa s are en dl
zombie bi am bu sh— th e possibilitie
a terrifying alle
yway WHAT POSSESSED
THEM: Gilbert stumbled upon
a website called somethingstore.com that sold
“surprise” objects. After trying it out, she real-
ized the awesome power of buying a mystery.
Now, Dudina says, “We want to spread the
surprise bug and encourage risk-taking and
adventure-seeking.”
t in Ju ne
H A” M O M ENT: One nighou
“A ere chatting ab
ew
t cool
2008, the thre t that com-
s an d hit on a concep
busine ss id ea h the excite-
et hi ng store.com wit -
bine d so m new and unex
ng something
ment of learni “T he idea just ap pe ar ed on
a cl as s. an d
pected in ould do it,
thought we sh
the table. We a says.
did it,” Lun
that night, we

STARTUP: Within minutes, they bought

the domain name golearnsomething.com
and got to work on a business plan. They
entered their idea into a competition and won
$10,000 to get started. By the time the first
order came in January 2009, the concept had
morphed into Surprise Industries, covering all
types of experiences, not just classes.
PHOTO© NATALIE BRASINGTON
CUSTOMERS: Most clients are in their
20s and 30s, but the trio has planned sur-
prises for family reunions and vacations, as
TANIA LUNA, MAYA well as corporate team-building activities and
GILBERT AND KAT company events. “It’s like a concierge service,
DUDINA DELIVER a little personalized luxury experience that’s
THE UNEXPECTED.
accessible to anyone,” Luna says.

SUCCESS: Revenue doubled in 2010, and
Surprise Industries now receives approximately
two private orders a day (averaging about $300 to
$500) and one corporate order a week (as much as
$10,000). Clients include Christian Dior, L’Oreal
and marketing agency Mr. Youth—and this all came
about without any active marketing efforts.
WHAT’S NEXT: Building up business clients and focus-
ing on large-scale private surprises, as well as planning more
public holiday surprises for multiple groups. (Last year’s
Valentine’s Day involved couples samurai fighting, a Moroc-
can cooking class and Thai massage.) Gilbert says they’re
constantly expanding, too: “Our database of surprises is the
largest in New York, but we’re going after interesting people
in all interesting cities.” —JENNIFER WANG

WorldMags
88 Entrepreneur // March 2011
 WorldMags

What are your options

for financing a new business?
I beg
I borrow
I steal
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O ne of the first challenges in starting your

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WorldMags
 start it up
WorldMags

Too good to be true?

Many government grants are available for small businesses, but research
carefully—most of them are aimed at specific industries and efforts

“F
ree money, just for the ask- by category, agency and eligibility A check of other open grants leaves
ing. Hundreds of grants criteria. At recent count, about half of little room for hope for the local pizza
available right now!” the 1,300 open grants are available to shop or video game developer, but the
Sound familiar? If small businesses. list is worth a gander if you’re in a busi-
you have a TV, it probably does. And The bad news is that many of them ness that addresses one of Uncle Sam’s
sadly, many people believe it. are so obscure that most entrepreneurs targeted causes. At the end of last year,
Are there grants for small busi- would be hard-pressed to pronounce that included job training, education,
nesses? Yes. Are you likely to find one them, much less qualify for one. pollution reduction, serving disad-
to help start yours? Probably not. Here’s a sample of what was on vantaged populations, military needs,
Here’s the reality: The largest offer in December: alternative energies and breakthroughs
source of grants available to private in medicine, agriculture and energy.
businesses is the government. The • Research opportunities Then there are charity, corporate
good news, at least at the federal on Spasmodic Dysphonia and foundation grants. These organi-
level, is that they’re easy to find. • Focal cognitive deficits in CNS disorders zations have millions on offer at any
Simply go to grants.gov, the federal • National Gene Vector Biorepository given time, but most are restricted to
ENT_0311_0625_LH.indd
government’s database, and1/19/11search 2:40and PMCoordinating
PAGE 1 Center nonprofit and educational applicants.

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WorldMags
90 Entrepreneur // March 2011
 WorldMags

Administration’s web page on grants:

We’ve all seen the headlines: “Millions
in free government money for your
business.” Late-night infomercials and
Internet advertisements promise grants
to start or expand a business. Sound
too good to be true? It is.
The best advice for most entrepre-
neurs is to forget about relying on
grants. Concentrate instead on starting
a business that’s financially feasible
without grants—or, for that matter,
loans or investments—and the money
Photo© thinKStoCK PhotoS/DigitaL ViSion

Still, if your project pertains to the Many require matching funds from your will follow. —Kate LiSter
arts, education, science or a similar organization or other sources.
cause, you might be able to tap this This may sound pessimistic, but Kate LiSter iS a former BanKer,
pool either directly or in cooperation unfortunately, it’s true. The “free SmaLL-BuSineSS inVeStor anD Vet-
with a nonprofit organization. money” myth has persisted for too long eran entrePreneur. her BooKS
Keep in mind that even if you do because unscrupulous peddlers find anD WeBSiteS inCLuDe Finding
qualify for a grant, responsible organiza- entrepreneurs—desperate to fund their Money: The SMall BuSineSS guide
tions and government agencies expect dreams—easy to trap in their snares. To Financing anD undreSS For
something of value for their beneficence, Don’t believe me? Here’s the open- SucceSS: The naked TruTh aBouT
ENT_0311_0625_RH.indd
such as useful research or job1/19/11
creation. 2:40 PM PAGE
ing sentence on the1U.S. Small Business Making Money aT hoMe.

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WorldMags
Entrepreneur // March 2011 91
 start it up
WorldMags
college
start
up
MaTT Lauzon’s
“One of the big pros of starting as
GeMvara puTs The a young person is that so many people
“Me” in e-coMMerce. are willing to help, and college is such
a safe place to fail,” says Lauzon, 26.
“I’m a big believer in this thing called
the ‘1 percent rule,’ which is to give
yourself the 1 percent possibility in
any situation that you’re not right. It
opens up just enough room for you to
get an alternative opinion.”
To find varied opinions about his
business, Lauzon signed 50 brick-and-
mortar jewelers to a network that let
their clients customize items both in
the store and online. He discovered
that customers were much more excit-
ed about the experience of customizing
from home, which gave them more
control over the design process.
Lauzon reworked his business plan
to focus exclusively on online custom-
ization, intent on updating the concept
of e-commerce for “Generation Me.”
“I’d go so far as to say that e-com-
merce as we know it is dying and there’s
this new thing called ‘me’ commerce,
which says buying online doesn’t need to
just be about the transaction, but about
an experience that really integrates the
consumer and lets them get exactly what
they want,” he says.
And what each consumer wants is
as varied as the consumers themselves.
“We’re featuring some subset of a
few thousand designs that we have,
and any individual design typically

The bling king

has hundreds of thousands of pos-
sibilities,” Lauzon says. “If you look
at our top-selling design, it’s a ring.
The ring gets ordered every day, but
90 percent of the time a customer is
Online retailer Gemvara changes the way people shop for buying it in a way that no customer
jewelry by encouraging customers to have it their way had ever bought it before.”

M
The power to create has turned
att Lauzon has made it possible for consumers to design custom Gemvara’s 1,500 products into more
jewelry without having to visit a jewelry store. His online company, than 1 billion variations—each made
Gemvara, launched last February and has experienced double-digit to order by marrying the customer’s
monthly revenue growth, received more than 1 million page views vision with gemstones, metals and pro-
per month and enjoyed an average order price of approximately $1,000. cesses. In doing so, Lauzon has created
Some might say that creating a game-changing business plan while attending a new way to shop—and a billion new
to hectic senior-year studies at Babson College in Wellesley, Mass., was overly items to shop for. —JoeL hoLLanD
Photo© DaViD Lang

ambitious. But Lauzon had identified a pool of faculty members and like-minded
entrepreneurs at Babson with whom he could exchange ideas. JoeL hoLLanD, 26, iS founDer
Add his courses in early-stage financing and marketing, and it’s clear why anD Ceo of footage firm in
Lauzon was able to move the company into its office space in Lexington, Mass., reSton, Va. he Can Be reaCheD at
a day before his 2007 graduation—and to secure $10.5 million in funding. JoeL@JoeLKenthoLLanD.Com.

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92 Entrepreneur // March 2011
 WorldMags

Strokes of genius
LOCK CUP
GOMMEH.COM
Sharing is overrated.
So mark your drinking
territory around the of-
fice with the Lock Cup,
a mug with a specially
designed hole that can
be plugged only by the
rightful owner’s round
“key.” Israeli product
designer Efrat Gommeh
is still working on bring-
ing the cup to market,
but expect it to cost in
the neighborhood of
$10—a small price to
pay for peace of mind.
GAPINGVOID
GAPINGVOID.COM
In his gapingvoid blog,
cartoonist Hugh Ma-
cleod, author of offbeat
business books Evil Plans
and Ignore Everybody,
is all about the cube
grenade: art that you can
“toss” into a work envi-
ronment to start a conver-
sation. In one recent post,
a purple monster with a
bow tie and a deadpan
expression admits, “I
tried being a corporate
drone once. Fortunately
it didn’t suit me.”
BUCKYBALLS
GETBUCKYBALLS.COM
Eliminate idle fidgeting with
Buckyballs, an addicting desktop
toy composed of 216 small
bead-shaped magnets made
from rare earth metals. Once
you get the hang of it, you can
mold and sculpt them into an
endless number of creative
geometric patterns and 3-D
structures. Getting a set ($29.95)
could prevent you from finish-
ing your work, but it beats your
co-worker going psycho on your
pen-clicking, finger-drumming,
toe-tapping ass. Don’t say we
didn’t warn you. —J.W.

Start-up vs Smart-up ... it’s your choice.

Jesse started his own carpet cleaning Clint started his own Chem-Dry
company in 2008: Franchise in 2008:
About $82k to get started. About $10k to get started.

Available Business Tools: Available Business Tools:

Duct tape, dial-up internet, 24/7 Support, Online Training,
and Frank the bartender. and Business Coaches.

Hours spent with my kids: Hours spent with my kids:

Does a quick video chat More than the past five or six
during my work-lunch count? years combined.

Quality of life: Quality of life:

Just moved in with the Fantastico! (I learned that on
mother-in-law ... you tell me. my recent family trip to Italy)

Jesse L. Hansen, Clint D. Newbury,

New Haven, CT Jacksonville, FL

* The World Leader In Carpet, Upholstery & Tile Cleaning Request your FREE
* Ranked #1 In Category For 21 Years Running Business Opportunity Packet at
* Turn-key Business Packages Starting At $8,495 Down www.chemdryfranchise.com
* A Home Depot Subsidiary, Makes Growth Easy or call 1-877-307-8233 A Division of The Home Depot

WorldMags
Entrepreneur // March 2011 93
 WorldMags

out to launch:
startup weekend’s
clint nelsen, marc
nager and Franck
nouyrigat (on screen).

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94 Entrepreneur // March 2011
 WorldMags

let’s
get it
started
and—if they’re
ren eur s hav e 54 hours to pitch, hone
Would -be ent rep to startup Weekend.
ky— sel l the ir gen ius business ideas. Welcome
luc

I
in a huge loft in New York
t’s Sunday evening an d lea de rs of nine motley
Ci ty ’s Ch in at ow n, si-
teams are presentin, gadthvieir ideas for startup bube
nesses to investors regina schso rs and other wannams
Mark Zuckerbergs. by
rick dah
rambling photography by

WorldMags
Entrepreneur // March 2011 95

A small, bubbly, self-assured young
woman energetically pitches an app
to give travelers stranded in airports
advice on how to fill the time (Amster-
dam has a library! Central London is
closer than you think!)
A middle-aged suburbanite talks
up a should-you-go? app designed to
determine how crowded a bar or con-
cert is. A hipster with a shaved head
touts a program that would showcase
emerging artists. A fast-talking woman
in her 20s speeds through an app for
jumping the line in restrooms. There’s
a Craigslist for musicians only, and an
app to project digital art onto public
buildings. The ideas just keep coming.
Each presenter has five minutes to
make the sale, then the audience has
five minutes to grill: What’s the de-
mographic? Who is the competition?
What is the social element? What is
the revenue generator?
During a break for a vote on the most
promising plan, participants indulge
in sodas, socializing and steamed buns
from a nearby Chinese restaurant.
ground control:
the startup
weekend team
at seattle hQ.
WorldMags
96 Entrepreneur // March 2011
The winning team this weekend
turns out to be the most practical. The
three men conducted field research,
visiting a park to ask young mothers
if they would have rented maternity
wear while they were pregnant, rather
than buying it.
They also created an online landing
page to gauge interest. In 18 hours they
had 37 Facebook “likes,” 80 visits to the
site and 13 invitations requested. And
Belliella.com was on its way, complete
with the promise by a fashion industry
insider serving as a judge that she would
“open up my Rolodex” to help it make
more connections.
This was the culmination of yet an-
other Startup Weekend, a phenomenon
that has spread around the world since
a Boulder, Colo., entrepreneur in 2007
came up with the idea of gathering and
motivating people who have business
ideas but no clear idea how to proceed.
Participants meet on a Friday night
and have 60 seconds to pitch their ge-
nius notions; they vote on which have
the most promise, then split into teams
WorldMags
matching their talents to projects and
spend Saturday and Sunday honing
their proposals. In 54 hours, a busi-
ness can be born. To participate, all
they need is $50 to $99 (fees vary city
to city) and a dream. Meals—seven of
them, plus snacks—are even included.
“It’s a crash course in startups,”
says Shane Reiser, the New York or-
ganizer who is also chief operating of-
ficer of Seattle-based Startup Weekend.
Participants listen to experienced
entrepreneurs and investors, make con-
nections, consult experts and, in some
cases, even find investors. Two to three
speakers and four to six mentors, who
are community leaders or well-known
people who volunteer, judge the startup
ideas. In June, the founders of Score.ly,
an online and social achievement ag-
gregation site, came away with $10,000
from AOL Ventures.
Marc Nager, Startup Weekend’s
CEO, says, “We pry the ideas out of
them and help them take the next step,
which is not paying lawyers thousands
of dollars. We teach them how to
 WorldMags

WorldMags
 WorldMags

roll up their and where to

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sleeves if they
have a good
idea.” (Not
all teams
stick together
after the
three days are
over, but the
experience
teaches them
the value
of working
together, and
that does last
beyond the
weekend.)
Since he
and Clint
Nelsen took over Startup Weekend from
founder Andrew Hyde in May 2009
and converted it into a 501(C)3 non-
profit, they have staged 210 events in 35
countries. Twenty-five thousand aspiring
entrepreneurs have taken part. This year,
130 events are planned in the U.S. and
in cities as varied as Nice, France; Oslo,
Norway; and New Delhi. The organi-
zation counts 800 startup ventures, of
which 30 percent are still active three
months later and 10 percent have gone
into incubation or mentoring.
“Our mission is education, inspira-
tion, empowering,” Nager says. “It’s
really amazing to be in a position to
really change people’s lives. People
come in with ideas but don’t have the
skills and meet people who do. Or
they bond and get inspiration.
“We get a lot of ‘what if someone
steals my idea?’ But a million-dollar
idea is worth nothing if you’re on your
own. It’s about the team, about the
people. Startup Weekend draws people
from all different backgrounds.”
“There’s a lot of value in testing an
idea,” Reiser says. “You get to talk
about it with people and get feedback.
You could find out it’s a terrible idea
and move on.”
Startup Weekend has had its biggest
success helping to launch cyberbusi-
nesses, whether apps for phones or
actual websites. “If you’re building
a prototype over a weekend, you go
for tech,” Reiser says, because you
don’t need an office, supplies or other
tangibles, only digital assets.
One notable Startup Weekend alum-
nus is Foodspotting (“the best foods
find them”),
which Time
magazine
named one
of the top
50 websites
of 2010.
(It’s also an
app.) Users
click on cities
and request
foods they’re
hankering for,
and recom-
mendations
supplied
by other
users pop
up. Founder Alexa Andrzejewski says
it was born at a Women 2.0 Startup
Weekend in September 2009, where she
met her first angel investor, who offered
her $5,000 on the spot.
Just as important, she says, she could
“soak in feedback, advice and input”
from the crowd and also learn legal
basics from lawyers on hand. “Startup
Weekend is a place where someone like
me, who had limited connections in the
startup world, can meet a few people
who could introduce me to a few more
people who could eventually make my
startup real.”
But Startup Weekend encourages
alternatives as well. “In Malaysia we
asked: ‘What are you passionate about
and how can you harness that?’ ” Nager
says. “One girl said she was passionate
about cooking, really serious about busi-
ness, and by the end of the day she was
taking orders for cakes.”
As Startup Weekend has expanded,
it has begun a global competition. One
weekend, 30 events occurred, and the
winner of each submitted a video for
a vote online. The winner—Mimix
in Beirut, a web and mobile app that
translates speech into sign language—
received donated prizes such as
cash, electronics, legal services and a
custom-designed website and video.
Reiser says 50 percent of par-
ticipants go on to attend a second
weekend, often in another city, to
make additional connections. What’s
essential, he says, is “a diverse group,
with a good mix of software develop-
ers and designers and others.”
Sponsors, including American

WorldMags
98 Entrepreneur // March 2011
 WorldMags

Express, Microsoft and IBM, un-

derwrite the organization. A recent
grant from the entrepreneur-nurturing
Kauffman Foundation allowed Startup
Weekend to expand and hire more
staff, bringing the total to eight. It also
has 150 volunteers in cities around the
world who recruit local sponsors.
Word of mouth, especially digital
word of mouth, has helped growth:
Ninety-nine percent of attendees
come through Twitter, Facebook and
online user groups.
When Startup Weekend enters a
new city, a staff member flies in to
organize an event, which needs at least
When the Pieces
40 to 50 participants. The median age
is 30, but 19- and 20-year-olds also of the Puzzle JUST FIT
attend, as do people in their 60s and
As part of World Travel Holdings, CruiseOne boasts unrivaled buying
70s, says Reiser, who got his own start
with Startup Weekend as a frustrated power. With us, you can feel confident that you are part of
entrepreneur in Des Moines, Iowa. the world’s largest seller of cruise vacations.
“I met aspiring entrepreneurs who
were always pitching ideas but no one Just another piece of the puzzle.
was doing anything,” he says. “They A REWARDING CAREER IN CRUISING

didn’t know how to get started, didn’t

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know people; they were fearful. I read
about a Startup Weekend in Kansas City
and thought I’d try it in Des Moines.
“Marc and Clint helped me build
an event. I got that warm, fuzzy feel-
ing when people were so grateful, said
they’d made so much progress. I felt
really good about what I’d done. I think
I’d done 10 events before Clint and
Marc asked if I wanted a full-time job.”
Nager and Nelsen have their own
understanding of startups, having
essentially taken over the weekend
concept and made it their own. “We
went from 32 events to over 100 cities
in nine months,” Nager says. “It was a
roller coaster ride, a startup ride all on
our own. We didn’t pay ourselves for
well over a year. This was a quintes-
sential eating-pasta startup. But we truly
believed that we were needed, and here
we are. No one is getting rich doing this.
But it’s an amazing thing to be part of.”
“Our economy needs something
like this,” says Reiser, citing a Kauff-
man study that found 10 percent
of new jobs created today are with
companies that started in the last three
years. “We need more innovation—
more people are thinking of entrepre-
neurship as a choice.”

regina schrambling is a Writer

in neW york city.

WorldMags
Entrepreneur // March 2011 99
 WorldMags
Is it possible to
make a smooth
transition from the
corporate world
into franchise
ownership?
Take a page
from these
franchisees,
who traded ties
and titles for
informality
and independence.

the
WorldMags
100 Entrepreneur // March 2011
 WorldMags
On the
frOnt lines:
steve wheat,
OppOsite,
and bObby
pancake,
belOw.

O
By Jason Daley | PhotograPhy By DaviD lang

pening a franchise for the first time is a daunting business

for anyone. Add a move halfway across the country, a 70-
to 80-hour work schedule with little or no pay, the death
of a partner and you have a recipe for franchise disaster.

WorldMags
Entrepreneur // March 2011 101
 WorldMags

But Steve Wheat and Bobby Pan-

cake took these challenges in stride
when they began opening their Buffalo
Wild Wings franchises in Delaware
in 2004. In fact, the franchise novices
handled their first business like pros,
going on to open six successful Buffalo
Wild Wings in five years.
That’s because Wheat and Pancake
aren’t your ordinary franchisees.
Both had spent years punching the
clock at Buffalo Wild Wings’ corpo-
rate headquarters in Minneapolis—
Pancake in company operations and
Wheat in the marketing department.
After years of watching—and help-
ing—people realize their dreams of
business ownership, they decided to
take the plunge themselves. “We saw
the organization growing,” Pancake
says. “It was on the upswing and the
path to success. We wanted to get in
on the ground-floor opportunity.”
But taking advantage of that op-
portunity meant both of them had
to uproot their families and move to
Delaware. When their partner and
financial backer, Thom Kreusch, passed
away six weeks after they opened the
doors of their first restaurant, they had
to scramble to come up with financ-
ing to continue their company. It was a
struggle, but they did it.
“Our huge advantage came from
our confidence level,” Wheat says.
“We watched dozens of people grow
their restaurants and be successful.”
Pancake and Wheat are not alone.
No organization keeps track of cor-
porate franchise employees who have
dropped their 9-to-5 gigs to become
franchisees themselves, but it seems as
if every company has an adventurous
character or two who has caught the
entrepreneur bug while on the job.
Their advantages are enviable—hav- We spoke with franchisees who “Something a franchisee said to
ing watched dozens or even hundreds of swapped their ties for a manager’s pin me kept ringing in my head,” Par-
individuals learn the ropes of franchis- to find out what they know about run- sons says. “He said, ‘You did all the
ing, they have a mental Rolodex of mis- ning a franchise that you don’t—and work. Why are you letting me reap
takes and pitfalls to avoid. They’ve been what they’ve learned from their time all the benefits?’ ”
privy to the corporate decision-making in the trenches. When Parsons noticed that the
processes that the average franchisee company was having trouble finding a
considers back-room voodoo. And most Mine the experience developer to build units in Boston, his
important, they go into their businesses of existing franchisees hometown, he asked whether he and
confident that if they stick with the right Rob Parsons worked as the franchise an equity partner could take a shot.
plan, they will succeed. For Wheat and development director for Popeyes “To advance my career and to be
Pancake, that led to the Small Business Louisiana Kitchen for six years after VP of development wasn’t my ulti-
Administration’s 2010 National Entre- stints at Denny’s and casual-dining mate desire,” he says. “I wanted more
preneurial Success Award and an Oval chain Ground Round. But in 2009, he control of my destiny. My endgame
Office meeting with the president. was ready to set off on his own. for this was to be a franchisee, I knew

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102 Entrepreneur // March 2011
 WorldMags

to franchising ing the company template. Some units

can get the same were even selling competing brands of
stick benefit with a yogurt because they were cheaper. “I
with the little legwork.
“I would
was shocked to see how many franchi-
sees viewed themselves as independent
fran- encourage new
franchisees
entrepreneurs who could do whatever
they wanted with the brand.”
chise’s to speak to Although True Value’s co-op model
multiple other gives its owners more independence
plan to franchisees at than some other franchises allow their
length,” he says. franchisees, Burger’s stint on the board
succeed, “They’re usually has convinced him that corporate
franchi- happy to share
their opinions,
knows what it’s doing and deserves a
fair hearing. “It’s easy for members to
sees and getting
information
assume that these are just a bunch of
corporate people with ‘bright ideas,’
advise. out of them is
not hard to do.
but that’s not my reality,” he says.
“My being closer to corporate and
“You The FDD has not being so steadfast in my way have
a list of all the opened my eyes to a larger pool of
don’t franchisees in a thinking going on.
have system—that’s a
huge resource.
“What’s being gathered and rec-
ommended by people at True Value
to be Why reinvent
the wheel when
makes sense. You don’t have to be
a slave to it, or drink the Kool-Aid.
a slave you can make a
phone call and
Just open yourself up to it, and
reflect for a minute. From the field
to it, or get the plans to team to distribution, these people
success?” spend their lives thinking about this
drink the business. There’s got to be some
kool-aid. follow the
guidelines
value in participating.”

Just open established

Yourself
up to it.”
that going in. I’m transaction oriented.
I like seeing units go from the ground
up. There are certain feelings of ac-
complishment you just can’t get from
positions in corporate life.”
Parsons was able to parlay his
expertise in site selection into build-
ing three stores in just 12 months. He
attributes most of that success to the
time he spent with the 36 franchisees
he was responsible for in his corporate
life. He saw what worked (putting
a heavy focus on training) and what
didn’t (trying to cut corners on build-
ing expenses). But he says people new
by the guys
in suits
In the late 1980s
and early 1990s,
Brent Burger ran
a chain of TCBY
yogurt shops
in Virginia and
Florida before
becoming vice
president of West
Coast operations
for the company. In August 1999 he
and his family moved to Maine to buy
into three True Value Co. co-ops. By
2007, he had been elected to the com-
pany’s board of directors. His moving
back and forth across the franchisor/
franchisee line has given him insight
into how the two sides can get along.
“Entrepreneurs are a very indepen-
dent and pretty skeptical bunch—we
believe we know a lot more than people
who aren’t working in the trenches,” he
says. When Burger joined the corporate
side of TCBY, he was amazed to find
how many franchisees weren’t follow-
express yourself if you can
Tim League’s venture into franchis-
ing was a little different. In 1997, he
founded the Alamo Drafthouse—a
movie-theater chain that serves food
and drinks and hosts film festivals
and various other events. The Aus-
tin, Texas-area business grew rapidly,
and a new COO who was prepar-
ing to franchise the concept wanted
League to stay on as CEO of the
franchise organization.
But League felt that he wasn’t ready.
After opening the first franchise, he
decided to step back and maintain his
own store, and in 2004, he let another
team franchise the company outside of
Austin. For about six years, the two
groups grew independently, until they
merged last year, with League as CEO
of the 10-store chain.
“We’ve benefited from the stronger
training and accounting infrastructure
the franchising group developed while
we were apart,” he says. “I maintained
a much larger entertainment, market-
ing, advertising staff. I think I had a
hang-up initially just with the idea and

WorldMags
Entrepreneur // March 2011 103
 WorldMags

term ‘franchise.’ One of the reasons I

stepped away was I wasn’t sure that
the growth model would work for us
because we had such unique, non-
cookie-cutter aspects.
“In that time, I realized you could
use the franchise model to expand,
and each store could be the same in
quality of offering, but we would give
them a certain level of freedom. Offer-
ing that level of freedom is an inherent
part of the company.”
League estimates that about 80 percent
of the Alamo Drafthouse experience
comes from the corporate brand book,
but the remaining 20 percent of the ideas
and initiatives in his stores are created by
franchisees, who use local ingredients in

In Search Of their menus and cater their movies to local

tastes. That, he contends, is what gives his
company its strength.
AmericaÕs Next But it took that time away from the
corporate structure for League to find
the soul of his company and appreci-
Top Franchise ate the value franchisees can bring
to a brand when given the freedom.
“Strangely enough, I think it’s worked
The Franchise Edge and its out perfectly,” he says. “It’s a really
partners are rewarding one odd path. It’s that unique element
business with a complete, that has come forth from running my
stores as a mom-and-pop operation.”
personalized franchise develop-
ment program valued at $78,000. focus on self-reliance
Fran Lubbs’ mother used to claim that
We are excited to announce that The Franchise Edge, Wells Fargo and Fran had talked about running a nursery
our partners are in search of AmericaÕs Next Top Franchise. Some of school since the age of 9. Fran doubts
the story, but in 1996, she joined the
todayÕs independent businesses will be tomorrowÕs national franchises. corporate side of the Goddard School,
Could your business be one of them? We are looking forward to an early-education franchise with about
learning about your business and seeing if you have what it takes to 360 units in 37 states. She worked a va-
become a household name. riety of jobs, from helping to interview
directors and establishing school stan-
Enter your concept! dards to dealing with state regulations.
But by 2001, after two bouts of cancer
March 1st - May 31st and after her children left home, Lubbs
reassessed her priorities. “The higher you
To enter or for more information and program details, visit our website. move up the corporate ladder and the
larger the corporation becomes, you lose
YourChanceToFranchise.com touch with what happens in the business
everyday,” she says. “I wanted to get back
in the schools. I missed the kids—they’re
a constant reminder of what’s good and
beautiful in the world.”
When an ailing Goddard franchise
presents went up for sale in Strafford, Penn.,
just 3 miles from her home, Lubbs
AmericaÕs Next decided to become a franchisee. “One
Harold L. of the advantages in stepping over
Top Franchise to the other side is that I had a good
Kestenbaum PC
understanding of the franchisee/fran-

WorldMags
104 Entrepreneur // March 2011
 WorldMags

what i know now

Brent Burger: lay down your arms and work with corporate as a true retail
partner. there are many resources available if you do. if you don’t believe in
the value of the brand, you shouldn’t buy into the company.

fran luBBs: success or failure is up to you. when i was working on the cor-
porate side, talking to people who bought a school, i’d tell them, ‘follow the
system, it’s one of the reasons you bought the franchise. Don’t try to change it,
break it or fix it.’ understand the franchisor’s role—my school is successful be-
cause of me, not because of some person sitting in an office in King of Prussia.

BoBBy PancaKe: People think they can put a hot concept anywhere and it will
be successful, but that’s not true. you have to do your homework and understand
your trade areas and financial structures. i’ve seen people lose thousands (of dol-
lars) per week because of a bad location. Know the trade area inside and out, and
be comfortable with your rent and financials before signing on the dotted line.

steve wheat: you might think you’re a great leader, but it’s about the people
you put around you. you need to put systems in place to measure productivity
and hold folks accountable. fortunately, i was able to make my mistakes in this
business while collecting a paycheck. —J.D.

chisor relationship,” she says. “I really
understood that the business was mine
to run. Goddard was there to help
me and provide multiple wonderful
resources and a proven system, but it
was up to me to take all those things
and to make or break my business.”
Still, her broad experience on the
corporate side didn’t prepare her for
some of the challenges the average
franchisee faces. Finding the right staff
for her nursery school was particularly
difficult, and financial matters like ne-
gotiating a lease and choosing a health
plan were new to her.
At the same time, she didn’t require
the hand-holding that other new fran-
chisees often do, and she always knew
whom to call for advice and support.
“I knew the challenges franchisees
faced, I just didn’t know the depth of
them,” Lubbs says. “I do think for many
people one of the most difficult chal-
lenges going from a corporate office to
a franchise is that when you walk in the
door, you become CEO of the company.
You don’t have the person in the office
next door who is COO or treasurer.
You don’t have the ability to say, ‘Can
I bounce an idea off you?’ It’s a hard
transition to make.”
put yourself in the
other guy’s shoes
Bob McQuillan and his wife, Denise,
were preparing to open a Hand and
Stone Massage and Facial Spa when
a recruiter called. It turns out Hand
and Stone was looking for a vice
president for franchise sales—a posi-
tion Bob had held elsewhere—so he
entered the corporate and franchisee
worlds simultaneously.
While Denise heads up their fran-
chise in Cherry Hill, N.J., Bob has
gained a deeper understanding of what
the franchisees he’s working with are
going through.
“Owning a store has been a huge
benefit with dealing with prospective
franchises,” he says. “I’ve gone through
what they’ve gone through. I can’t say
how many people have told me that
it makes a difference to them that I’ve
invested in the same thing. They love that,
and it tells them that I’ve put my money
where my mouth is.”
In the end, corporate franchisees might
be more confident about the path they’re
taking, but their day-to-day struggle is the
same as any entrepreneur’s.
“Our journey was not easier than other
people’s,” says Pancake of Buffalo Wild
Wings. “Where some people may struggle
with not understanding the brand, our
struggle was reversed. We knew the brand,
but not the territory we were entering.”
Even insiders succeed or fail based on
their hard work and ingenuity. No special
access or experience can substitute for
passion. “All you really have is a dream
when you start out,” Pancake says. “But
it’s been absolutely worth it.”
Jason Daley is a freelance
writer in MaDison, wis.

WorldMags
Entrepreneur // March 2011 105
 franchise
WorldMags

HEALTHY
RETURNS
The No. 1 business on this month’s ranking
of new franchise entrants is shaking things
up in the chiropractic world

W
hen people think of businesses that are perfect for
franchising, a few tried-and-true categories come
to mind: fast food, automotive repair, hotels….
Chiropractic services? Not so much. Typically, chi-
ropractors are “lone wolves,” says Dr. Chris Tomshack, founder
of HealthSource Chiropractic and Progressive Rehab. But a lot
of those lone wolves are struggling, especially in the current
economy. And Tomshack believes franchising is the solution.
He may be right. Since HealthSource began franchising in
2006, it has exploded to nearly 300 franchises in 43 states.
That impressive growth vaulted HealthSource into the No. 1
spot on our Top New Franchises list, and a ranking of #111
overall in this year’s Franchise 500®.
Chiropractors might not seem like obvious franchisee candi-
dates, but Tomshack isn’t surprised by the success of his sys-
tem. In fact, it’s exactly what he had in mind when he turned
to franchising. As former owner of four clinics in Ohio, he
believed the business and treatment models he had devel-
oped since 1998 could and should go global.
“Quite frankly, a lot of practitioners remain stuck in
the ’70s and ’80s, and my team felt that we need to help
chiropractic continue to evolve,” Tomshack says. “New
advances in healthcare did not stop in the ’80s. They’re
being made every day.”
Spinal decompression, cold laser therapy and a
holistic weight-loss program are just a few of the
services offered in addition to traditional chiroprac-
PHOTO© VEER INC/ALLOY PHOTOGRAPHY

tic care at HealthSource clinics. And they won’t

stop there. “We’re always looking for what’s new
and what’s best,” Tomshack says.
Those extra services aren’t the only way
HealthSource gives its franchisees a leg up on
the competition.

>>>>>>>>>>>>>>

WorldMags
106 Entrepreneur // March 2011
 WorldMags

A Business thAt rules. An educAtion thAt rocks.

inspiring kids to rock on stAge And in life.

School of Rock has been teaching kids how to
amaze audiences for more than ten years. We
believe the best way to learn music is to play
music. We get students from the lesson room
to the stage, developing both their confidence
and musicianship with programs designed for
all skill levels.
We are expanding rapidly to meet the demands
of kids who want to play music and parents
who appreciate music education. With territo-
ries available nationwide, it’s an exciting time
to become a SoR Franchisee!
Get Set to Rock with:
• Innovative Curriculum
• Marketing And Business Systems
• Flexible Real Estate Profiles

“turning passion to profit is serious work, but you get to make a difference in your own life and the lives
of the kids and their families. i’ve opened two schools and am about to open another.”
Mike Morpurgo (nJ/pA)

“school of rock has a simple business model, it’s easy to understand and your first success is easily replicable.”
deAn tArpley (tX/Mi)

call today 877.556.6184 / WWW.ScHooloFRocK.coM

WorldMags
 franchise
WorldMags

HEALTHY RETURNS
“We actually help teach them how to think more like As more “lone wolves” join the HealthSource system, Tom-
businesspeople, like true entrepreneurs, in addition to shack seems well on his way to revolutionizing his industry.
being a clinician,” he says, “because that’s what it takes Someday he might even make chiropractic services as synony-
today to survive.” At HealthSource University, doctors mous with franchising as fast food, auto repair and hotels are
and their staff are taught everything they need to know today. —TRACY STAPP
about the day-to-day operations of their business, from
answering the phone to marketing. “It’s Business 101
through 401 in the chiropractic niche,” Tomshack says,
“something that’s never been taught before.” OUR GUIDING VISION IS
At the heart of the training, the key to success for
HealthSource franchisees as both doctors and busi- TO ALWAYS FOCUS ON
nesspeople, is a simple lesson for all entrepreneurs: WHAT’S BEST FOR OUR
The customer always comes first. “Our guiding vision
is to always focus on what’s best for our patient, PATIENT.
which is our consumer,” he says.
That may not sound groundbreaking—until it’s
compared with the typical doctor’s office experience.
“Something’s gone awry in healthcare,” Tomshack
says, adding that HealthSource’s goal is to do away
with the impersonal, uncomfortable settings so often
associated with the industry. HealthSource patients
are greeted as soon as they walk through the door and
guided through the process of signing forms and learn-
ing about the services available. They can even enjoy
a gourmet coffee bar while they wait—though they
shouldn’t have much time to linger.
“We don’t tolerate wait times,” Tomshack says.
And the personal touch offered in the reception area
is only the beginning. “The doctor’s not going to
treat you as a number. The doctor’s going to treat
you as a family member.”
This philosophy—and the business and treatment
systems Tomshack and his team have developed to
uphold it—is influencing a new generation of chiro-
practors. He is a frequent guest lecturer at chiropractic
colleges across the country, and some schools have
even invited the HealthSource team to design and
implement a business curriculum.
“Now we’re always in front of the students and
we can offer them a better way to get into practice,”
Tomshack says. Because of that, although most
HealthSource franchises are existing clinics that
converted, Tomshack anticipates welcoming more
PHOTO© ISTOCKPH OTO.COM/G -IMAGE

startups over the next year as graduating chiroprac-

tic students decide that franchising is better than
going it alone.
He expects to add at least 100 clinics, startups as
well as conversions, in 2011. And he also plans to
move beyond the United States, having just received ap-
proval to begin franchising HealthSource in Canada (he
has his sights set on Great Britain, Australia and New
Zealand as well).

WorldMags
108 Entrepreneur // March 2011
 WorldMags

We’re looking for

a few ordinary people
with extraordinary hearts.
Are you ready for a positive change? Join our unique
franchise community that believes in
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strong focus on the bottom line.

Receive substantial financial

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• Help seniors live independently
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• Provide non-medical services such as light
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WorldMags
 franchise
WorldMags
Own the #1 Travel
Franchise and
Work From Home!

“I wanted to find a business

that I knew would excite THe RiSe Of THe
newcomers
people when I told them
what I did. Who does not
love to travel? Additionally,
the ability to parlay MY
love for travel into a
business led me to Cruise
Planners/American Express.” New business opportunities are poised
Crystal Martin-Rooney to make their mark, with 58 franchises
Cruise Specialist and joining our ranking

2
Cruise Planners Franchisee

011 could be called the year of the

young franchise—the year when
more than 10 percent of the top fran-
chises in the nation, as determined in
Entrepreneur’s Franchise 500®, were less than
5 years old. And you’ll find them all here in
our Top New Franchises list. The list isn’t
intended to endorse any particular franchise—
only your own research can determine whether
a franchise, new or old, is right for you. Al-
ways investigate opportunities thoroughly by
talking to franchisees, reading the company’s
legal documents and consulting with attorneys
and accountants before investing.
Crystal The franchises in this list, all of which
started since 2006, are listed in order of their
Franchise 500® ranking. They’re a varied lot,
offering everything from chiropractic services
to frozen yogurt, pet care to flip-flops. But
they’ve all weathered in their formative years
one of the toughest periods franchising has
ever faced and proved that they can compete
with the big boys. —tRACy StAPP

1. HealthSource Chiropractic
and Progressive Rehab
2011 Franchise 500 ranking: 111
Choose Chiropractic, nutrition
entrepreneurship! & weight-loss services
Total cost: $52.95K-249.8K
Start your home-based Total franchises/co.-owned: 298/0
travel agency today! healthsourcechiro.com
Photo© IStoCKPhoto.CoM/SKoDoNNEll

(440) 967-5458

CRUISE PLANNERS SM

2. Oreck Clean Home Center

2011 Franchise 500 ranking: 119
Vacuum cleaners, air purifiers
& related home-care products
Total cost: $84.6K-221K
888-582-2150 Total franchises/co.-owned: 327/98
www.TopCruiseFranchise.com ownanoreckstore.com
(888) 769-6673

WorldMags
110 Entrepreneur // March 2011
 WorldMags

Use your
people skills
3. Oxi fresh franchising Co.
for profit!
2011 Franchise 500 ranking: 126 publisher.
Carpet cleaning Become a
Total cost: $33.5K-55.95K
Total franchises/co.-owned: 197/4 • #1 in category – Entrepreneur
oxifresh.com • #18 of the top 20 franchises to start – Forbes.com
(877) 694-3737 • #12 top home-based business – Entrepreneur
• Get started for under $10,000
4. Always Best Care Senior Services Established in 1988, Coffee News® has grown to over 1,100 franchises in 22 countries
2011 Franchise 500 ranking: 174 (and growing!). A weekly publication with distribution in restaurants, coffee shops
In-home care & assisted living placement and motels, Coffee News® is written and published for you.
Total cost: $50.1K-90.7K
Total franchises/co.-owned: 110/0
alwaysbestcare.com
(888) 430-2273 Coffee
News
Coffee
News

5. The Senior’s Choice inc.

2011 Franchise 500 ranking: 195 The WorldÕs Largest Franchise Publication!
Nonmedical in-home senior care
Total cost: $54K-72K Get more info at www.coffeenewsusa.com/B0203
Total franchises/co.-owned: 187/0
theseniorschoice.com
(888) 725-3655

6. Accessible Home Health Care

2011 Franchise 500 ranking: 196
Medical & nonmedical
home care & staffing
Total cost: $107K-124K
Total franchises/co.-owned: 92/1
accessiblehhc.com
(954) 341-5600

7. Caring Transitions
2011 Franchise 500 ranking: 210
Sales of estates & household goods
Total cost: $38.3K-66.6K
Total franchises/co.-owned: 82/0
caringtransitions.net
(866) 708-9420

8. Yogurtland franchising inc.

2011 Franchise 500 ranking: 216
Self-serve frozen yogurt
Total cost: $228.9K-521.5K
Total franchises/co.-owned: 106/8
yogurt-land.com
(714) 939-7737

9. Murphy Business & financial Corp.

2011 Franchise 500 ranking: 219
Business & franchise brokerage
/commercial real estate

WorldMags
Entrepreneur // March 2011 111
 franchise
Total cost: $61.6K-128.7K
Total franchises/co.-owned: 134/0
murphybusiness.com
(727) 725-7090
10. Retro fitness LLC
2011 Franchise 500 ranking: 236
Health club
Total cost: $641.8K-1.5M
Total franchises/co.-owned: 60/0
retrofitness.net
(732) 431-0062
11. The Utility Company
2011 Franchise 500 ranking: 241
IT services
Total cost: $36.3K-61.99K
Total franchises/co.-owned: 71/1
theutilitycompany.com
(613) 591-9800
12. Mister Sparky
2011 Franchise 500 ranking: 243
Residential electrical services
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Franchise.org is your one-stop
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• Detailed information for
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WorldMags
112 Entrepreneur // March 2011
Total cost: $25K-496.7K
Total franchises/co.-owned: 82/9
thankyoumistersparky.com
(866) 847-1113
13. Nrgize Lifestyle Cafe
2011 Franchise 500 ranking: 248
Smoothies, meal-replacement
shakes, protein bars
Total cost: $113.4K-339.8K
Total franchises/co.-owned: 90/4
kahalamgmt.com
(480) 362-4800
14. Plan Ahead events
2011 Franchise 500 ranking: 250
Event planning
Total cost: $38.2K-60.7K
Total franchises/co.-owned: 61/0
planaheadevents.com
(877) 866-1750
15. Home Video Studio
2011 Franchise 500 ranking: 273
Think Franchise.org
The most comprehensive
Web site on franchising.
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We know franchising.
Visit www.franchise.org today.
WorldMags
Video production
& postproduction services
Total cost: $69.1K-97.3K
Total franchises/co.-owned: 55/2
myhomevideostudio.com
(317) 577-8220
16. AdvantaClean
2011 Franchise 500 ranking: 291
Environmental services
Total cost: $73.6K-104.3K
Total franchises/co.-owned: 35/0
advantaclean.com
(704) 391-3330
17. American Prosperity Group (APG)
2011 Franchise 500 ranking: 300
Retirement & estate planning
products/services
Total cost: $76K-118.3K
Total franchises/co.-owned: 14/1
apgfranchise.com
(877) 885-1274
 WorldMags

18. Dryer Vent Wizard 21. TGA Premier Junior Golf voodoobbq.com
2011 Franchise 500 ranking: 302 2011 Franchise 500 ranking: 319 (877) 902-4227
Dryer vent cleaning/replacement Youth golf programs
Total cost: $67.7K-89.9K Total cost: $13.2K-62.2K 24. Hurricane Grill & Wings
Total franchises/co.-owned: 52/0 Total franchises/co.-owned: 41/3 2011 Franchise 500 ranking: 336
dryerventwizard.com golftga.com Chicken wings, sandwiches, salads
(586) 619-2160 (310) 333-0622 Total cost: $246.5K-687K
Total franchises/co.-owned: 32/1
19. SeekingSitters franchise System inc. 22. ShelfGenie franchise hurricanewings.com
2011 Franchise 500 ranking: 303 Systems LLC (561) 932-1075
Baby-sitting referral service 2011 Franchise 500 ranking: 325
Total cost: $44.2K-70K Custom shelving & accessories 25. Hungry Heart franchise LLC
Total franchises/co.-owned: 45/6 for cabinets/pantries 2011 Franchise 500 ranking: 344
seekingsitters.com Total cost: $70.1K-125.3K Nutritional counseling & hypnotherapy
(918) 749-3588 Total franchises/co.-owned: 85/19 Total cost: $43.2K-58K
shelfgenie.com Total franchises/co.-owned: 10/1
20. fRSTeam (877) 814-3643 hungryheart.org
2011 Franchise 500 ranking: 307 (877) 486-4797
Restoration dry cleaning 23. VooDoo BBQ & Grill
Total cost: $32K-380.5K 2011 Franchise 500 ranking: 326 26. Preppy Pet
Total franchises/co.-owned: 40/7 Fast-casual barbecue restaurant 2011 Franchise 500 ranking: 349
frsteam.com Total cost: $450K-799.5K Pet boarding, day care & grooming
(510) 723-1000 Total franchises/co.-owned: 12/3 Total cost: $127.8K-261K
Total franchises/co.-owned: 12/1

“Love your boss – So long as it’s you.” - Gary D. Green

(nMRy WKe Eene¿WV RI EeLnJ yRXr RZn ERVV... CEO, Strategic Franchising Systems, Inc.

• Freedom • Income • Lifestyle • Accumulate Wealth

Own the senior care franchise
Entrepreneur magazine has
ranked No. 1 for five straight
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Senior Care Services the income and fulfilling
866-708-8921 career you’ve always wanted.
www.HomeHelpers.CC Join the best!
OP 10
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Senior Moving • Downsizing • Estate Sales
senior moving, downsizing
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and estate sale management
industry. Caring Transitions
866-708-9420
www.CaringTransitions.net addresses the next step in
senior care.

This leading B2B coaching Take advantage of the huge

franchise can be extremely opportunity in the $100
fulfilling and profitable. billion home services
Coach small business owners Residential and Commercial industry. Build an
Business Coaching to succeed, love what you do Painting and Décor Services organization, manage
866-708-9188 and make a real difference 866-708-9355 people, create freedom &
www.TheGrowthCoach.com in your community. www.FreshCoatPainters.com wealth for yourself and
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Home-Based | Low Start-Up | Recession-Resistant | Outstanding Training & Support

WorldMags
Entrepreneur // March 2011 113
 franchise
WorldMags

preppypet.com g2u.com rimtyme.com

(407) 420-1060 (512) 266-0086 (972) 403-4905

27. Medi-Weightloss franchising USA LLC 30. Preferred Care at Home 33. Get A Grip franchising LLC
2011 Franchise 500 ranking: 356 2011 Franchise 500 ranking: 373 2011 Franchise 500 ranking: 393
Physician-supervised weight-loss program Senior home care Countertop, bathtub & tile resurfacing
Total cost: $224.5K-468.5K Total cost: $57.5K-79.5K Total cost: $25K-70K
Total franchises/co.-owned: 66/0 Total franchises/co.-owned: 47/1 Total franchises/co.-owned: 15/1
mediweightlossclinics.com preferhome.com getagripinc.com
(813) 228-6334 (866) 690-7733 (800) 290-6004

28. Signal 88 Security 31. Complete Nutrition 34. The Glass Guru
2011 Franchise 500 ranking: 357 2011 Franchise 500 ranking: 377 2011 Franchise 500 ranking: 400
Private security guard & patrol services Weight-loss & nutrition products Window restoration & replacements
Total cost: $86.9K-106.7K Total cost: $164.1K-364.2K Total cost: $24.95K-95.4K
Total franchises/co.-owned: 53/1 Total franchises/co.-owned: 41/5 Total franchises/co.-owned: 42/1
signal88.com completenutrition.com theglassguru.com
(877) 498-8494 (402) 333-5155 (916) 786-4878

29. Games2U franchising LLC
2011 Franchise 500 ranking: 362
Mobile video game theaters
Total cost: $107.7K-214.4K
Total franchises/co.-owned: 53/0
32. RimTyme
2011 Franchise 500 ranking: 391
Rent-to-own custom wheels & tires
Total cost: $503K-870.8K
Total franchises/co.-owned: 14/9
35. Get in Shape for Women
2011 Franchise 500 ranking: 401
Small-group personal training for women
Total cost: $26.96K-178.9K
Total franchises/co.-owned: 58/1

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WorldMags
114 Entrepreneur // March 2011
 WorldMags

getinshapeforwomen.com clothesmentor.com
(781) 444-1913 (866) 261-2030

36. CPR-Cell Phone Repair 39. Touching Hearts At Home

2011 Franchise 500 ranking: 403 2011 Franchise 500 ranking: 410
Cellular, iPod & electronics repairs Nonmedical home care
Total cost: $59.4K-144K for seniors & disabled people
Total franchises/co.-owned: 33/8 Total cost: $41.8K-62.4K
cpr-franchise.com Total franchises/co.-owned: 31/0
(706) 413-1552 touchinghearts.com
(877) 870-8750
37. Acti-Kare inc.
2011 Franchise 500 ranking: 407 40. eagle Tax
Nonmedical in-home senior care 2011 Franchise 500 ranking: 413
Total cost: $25.7K-41.6K Tax preparation services
Photo© IStoCKPhoto.CoM/WRAgg

Total franchises/co.-owned: 21/0 Total cost: $58.1K-102.4K

actikare.com Total franchises/co.-owned: 25/0
(888) 451-5273 eagletaxusa.com
(215) 238-0300
38. Clothes Mentor
2011 Franchise 500 ranking: 409 41. flip flop Shops
Women’s clothing & accessories resale 2011 Franchise 500 ranking: 415
Total cost: $140K-229K Flip-flops & sandals
Total franchises/co.-owned: 32/1 Total cost: $167.3K-272.5K

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WorldMags
Entrepreneur // March 2011 115
 franchise
WorldMags

Total franchises/co.-owned: 22/1 Total cost: $97.9K-306.9K

flipflopshops.com
(770) 424-0027
42. CeO focus
2011 Franchise 500 ranking: 416
Peer groups for small-business owners
Total cost: $41.5K-63K
Total franchises/co.-owned: 20/6
ceofocus.com
(317) 805-4924
43. Roni Deutch Tax Center
2011 Franchise 500 ranking: 418
Tax preparation & business services
Total cost: $30.6K-119.9K
Total franchises/co.-owned: 72/0
rdtcfranchise.com
Total franchises/co.-owned: 13/7
ckokickboxing.com
(201) 963-7774
49. Sir Grout franchising LLC
2011 Franchise 500 ranking: 430
Grout & tile cleaning
& restoration
Total cost: $73.5K-120.6K
Total franchises/co.-owned: 14/5
sirgrout.com
(866) 476-8863
50. USA insulation
2011 Franchise 500 ranking: 432
Home insulation & air sealing services
Total cost: $154.2K-218.8K

Strong roots. (866) 738-2289

Secure future.
Express offers a local professional
business opportunity with the
support of an international network.
• 25 years franchising with
more than 550 locations.
• Established, 115-year-old,
$61 billion industry.
• Help businesses find good people
and help people find good jobs.
• Own your own business.
• Excellent training, 99% franchisee
satisfaction rating.
• Nearly 600 marketing awards.
• Sales support to coach you
to success.
• Technical support and
full-service assistance.
44. franchiseMart
Total franchises/co.-owned: 15/0
usainsulation.net/franchise
(877) 903-6800
2011 Franchise 500 ranking: 419
Franchise consulting services 51. Assisting Hands Home Care LLC
Total cost: $52.2K-97.2K 2011 Franchise 500 ranking: 436
Total franchises/co.-owned: 24/0 Nonmedical in-home care
franchisemart.com Total cost: $66.5K-135K
(877) 757-6550 Total franchises/co.-owned: 29/0
assistinghands.com
45. elements Therapeutic Massage inc. (208) 442-7426
2011 Franchise 500 ranking: 422
Therapeutic massage studio 52. Pizza fusion
Total cost: $159.1K-288K 2011 Franchise 500 ranking: 454
Total franchises/co.-owned: 73/0 Organic pizza, sandwiches, salads
touchofelements.com
(877) 663-0880
46. MixStirs
2011 Franchise 500 ranking: 424
Smoothies, protein shakes, wraps, salads
Total cost: $88.1K-197.5K
Total franchises/co.-owned: 22/1
mixstirs.com
(877) 999-2410
47. freshBerry Natural frozen Yogurt
2011 Franchise 500 ranking: 426
Natural frozen yogurt, smoothies,
Photo© IStoCKPhoto.CoM/ WRAgg

yogurt popsicles
Total cost: $165.8K-386.2K
Total franchises/co.-owned: 25/0
freshberry.net
(918) 488-9727

Invest in a future with Express. Visit 48. CKO Kickboxing

expressfranchising.com/learnmore 2011 Franchise 500 ranking: 428
or call (877) 652-6400. Kickboxing fitness classes

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116 Entrepreneur // March 2011
 WorldMags

Total cost: $328K-571K

Total franchises/co.-owned: 17/1
pizzafusion.com
(954) 202-1919

53. Zips Dry Cleaners

2011 Franchise 500 ranking: 455
Dry cleaning
Total cost: $600.7K-769.5K
Total franchises/co.-owned: 24/0
321zips.com
(301) 313-0389

54. Kidville
2011 Franchise 500 ranking: 457
Child-enrichment classes, birthday
parties & products
Total cost: $230.2K-898.4K
Total franchises/co.-owned: 28/7
kidville.com
(212) 772-8435

55. PortraitefX Photography franchise

2011 Franchise 500 ranking: 462
Photography
Total cost: $17K-30K
Total franchises/co.-owned: 65/0
portraitefx.com
(800) 765-7561

56. fiesta insurance franchise Corp.

2011 Franchise 500 ranking: 464
Insurance & tax preparation services
Total cost: $3.4K-79.4K
Total franchises/co.-owned: 66/2
fiestafranchise.com
(714) 842-5420

57. Mountain Mudd espresso

2011 Franchise 500 ranking: 470
Specialty coffee
Total cost: $22.5K-266K
Total franchises/co.-owned: 9/12
mountainmudd.com
(800) 218-6833

58. Hoodz
2011 Franchise 500 ranking: 490
Commercial kitchen exhaust cleaning
Total cost: $80.8K-141.4K
Total franchises/co.-owned: 67/13
hoodz.us.com
(734) 864-9799

WorldMags
Entrepreneur // March 2011 117
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 franchise ink
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states and has sold master franchise

rights in Mexico and India. The theaters
also are a hit at store openings, game
launches and corporate events.
Falgares hit pause to tell us about
his mobile success. —JASON DALEy

Where do you get your trailers?

A company in Indiana makes them
for us, and it puts up the aluminum
walls and all the finishing touches,
like security alarm systems, big lights,
awnings and storage.

What’s the response been?

I had three people coming in for a pros-
pect day to see if they were interested
in buying a franchise. They came to a
party in Jersey City. Cars kept stopping
to find out what we were all about, and
we needed all three prospects to hand
out cards and tell people about Gamin’
Ride. It was the best situation—I
couldn’t have orchestrated it myself.

What happens on weekdays?

We have something called Earn and
Burn—we earn money for schools
and kids burn calories. Franchisees go
into schools with the iDance and set
it up so 150 kids can play the dance
fun on wheels:
game. The kids exercise, raise money
Gamin’ ride’s and win prizes like time in the Gamin’
miChael falGares. Ride trailer or laser tag. The schools
do very well, and we do a 30/70 split.

The roll player

Michael Falgares scored big and launched a portable
Are girls into this, too?
In our first year, it’s been about 20 per-
cent girls, 80 percent boys. So in April,
we’re launching four units of Glamour
Ride. It pulls up to a house, and the
franchise when he put video games on a custom trailer girls get “before” photos. Then on the

M
ichael Falgares’ idea came to him during a trip to Amsterdam:
Why not make video games portable? In 2008, he traveled with
his father, Phil, to the Netherlands to check out the latest in video
game technology, a dance pad called iDance that lets up to 32
players participate at once. The Falgareses signed up to become U.S. resellers.
But the younger Falgares, of Asbury Park, N.J.—who has taught first grade,
trailer they all get ready for the “big
show”: getting their hair done, mani-
pedis and glitter at stations in the the-
ater. At the end of the party, the side of
the trailer folds down and becomes a
stage, and parents can watch the girls
put on their show. There are also arts
PHOTO© NATALIE BRASINGTON

fifth grade and special education, owned a preschool and worked as a DJ— and crafts, karaoke; and they can stuff
wasn’t interested in just selling the pads. So he had a trailer outfitted with 16 their own animals.
vibrating gaming seats and flat-screen TVs, installed a rockin’ sound system and
plugged in gaming systems with a huge assortment of the latest games. Add to that What’s your favorite video game?
the iDance pads, laser tag and a ball cannon, and Gamin’ Ride was born. I actually don’t like video games.
A little more than a year after the first trailer started pulling up at parties (two- I’ve never had an interest. I just want
hour packages start at $299), Gamin’ Ride has 18 mobile gaming theaters in seven people to have good time.

WorldMags
122 Entrepreneur // March 2011
 WorldMags

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 opportunities
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What got you into volunteerism?

Having cancer definitely influenced my
decision. I lived my whole life doing
what was right for me, then when I
found out I had Stage 4 colon cancer,
I thought, “OK, God, I’m not making
the best plans. What do you want me to
do?” Volunteerism is a mission for me.
We can make lives better by offering
great service and donating time.

How do your employees feel

about volunteering?
During our downtime, for every two
volunteer hours they work, I pay them
for one hour. But they like volunteering
BOOKED: NaNcy on their own, too. Through the inter-
hErriNgtON will view process I can see if an employee
targEt litEracy. will be a good match, and we usu-
ally know within two or three weeks

A fix-it shop
whether they will be a great cultural fit.

Why mix volunteerism with business?

I like to buy from businesses that give

with a twist
back, and I think my customers do, too.
We send out an e-newsletter about our
volunteerism and get great feedback. I
try to do as much as I can without be-
ing judged for tooting my own horn. I
Nancy Herrington saves the day for customers of like to think we’re not just giving back,
her Mr. Handyman franchise—and her community we’re also helping people to help them-

N
selves. For instance, our classes at the
ancy Herrington was exhausted. After a bout of cancer and 15 years domestic shelter give people basic skills.
as a software consultant, she was ready for a challenge that would
keep her near her Phoenix-area home. Do you have plans to expand your
A good friend in Dallas had bought a Mr. Handyman franchise volunteer efforts?
and kept badgering Herrington to look into the business. When she finally did There are three projects I want to
and studied her local demographics, she knew it would be a great fit. focus on. First, I want to develop a
“I keep telling people I am my customer—my business does the types of proj- once-a-month program to highlight an
ects I can’t do or don’t know how to do,” she says. “Now I’m using the talents outstanding community volunteer and
of the guys that work for me.” recognize them with free Mr. Handyman
But it takes a special kind of handyman to work for Herrington. Not only services. Then I want to expand Make
does she look for employees with exceptional customer service skills, she also a Difference Day and get 10 other small
looks for staff who share her major passion in life—volunteerism. businesses to help us identify projects
Since opening her franchise in 2008, Herrington and her staff have run home and to donate money. In 2009, we
maintenance workshops at a local women’s shelter and for Habitat for Humani- refurbished the homes of two disabled
ty; they’ve spearheaded river cleanups; done repair work for local Boys and Girls vets. We want to do 10 homes per year. I
Clubs; and organized the annual Let’s Make a Difference Day, during which also want to do something with literacy.
local small businesses come together to rehab homes for disabled veterans. I think having a literate community is a
All this won her a Heart of Volunteerism award from a local volunteer net- strong base for everything else.
work, and Herrington has remained committed to the community even when her
PHoTo© JeFF neWTon

company’s survival was in doubt. Are you a handyman now?

“In 2009, we were wondering how we were going to make it through 2010,” I’ve actually gotten smarter. Yesterday, I
she says. Nevertheless, business last year was up 85 percent from 2009, she says. put on a new shower head. That would
“I was supported by family and by employees who stuck with me and made a lot have taken me all day before I started
of sacrifices themselves.” —Jason Daley this business.

WorldMags
124 Entrepreneur // March 2011
 WorldMags

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ΓΙΦϑΓ<:Κϑ񡑀;8≅ΧΠ񡑁񡑀ΝΝΝ񡑓0?<<ϑΚ;Μ<ΙΚ≅ϑ≅>/≅Κ<񡑓:Φ∆ 񡑃񡑖񡑀 %(5񡑀%∗+)!񡑀0+ 5񡑁񡑀#ΙΦΝ񡑀=≅8:≅8ΧΧΠ񡑁񡑀∗Φ񡑀ϑ<ΧΧ񡑒 .! %0񡑀,.0∗!./񡑀!.∗񡑀񡑄񡑖񡑕񡑕∋񡑓񡑀)ΛϑΚ񡑀?8Μ<񡑀񡑗񡑕񡑀ΓΧΛϑ
≅>񡑁񡑀#Λ8Ι8Κ<<;񡑁񡑀 <Κ8≅Χϑ񡑀=Ι<<񡑁񡑀0ΦΧΧ񡑒=Ι<<񡑀񡑖񡑒񡑈񡑉񡑀񡑙񡑗񡑠񡑒񡑖񡑠񡑠񡑓 :Ι<;≅Κ񡑀ϑ:ΦΙ<񡑓񡑀∗Φ񡑀∆Φ<Π񡑀Ι<ΗΛ≅Ι<;񡑀Γ<Ι≅Φ;񡑁񡑀񡑄񡑖񡑕∋񡑀ϑ≅>񡑀Φ
5+1.񡑀 2!.0%/!)!∗0񡑀!)%(! 񡑀ΚΦ񡑀񡑖񡑀∆≅ΧΧ≅Φ񡑀Ι<8;񡑒 9ΦΛϑ񡑓񡑀񡑖񡑒񡑈񡑉񡑀񡑘񡑙񡑘񡑒񡑘񡑙񡑗񡑓񡑀ΝΝΝ񡑓񡑗񡑕:=ΦΓΙΦ>Ι8∆񡑓:Φ∆
<Ιϑ񡑀ΚΦ;8Π񡑁񡑀ΝΝΝ񡑓)8≅Χ9ΦΟ)Φ<Π∗<Νϑ񡑓:Φ∆ ∀/0񡑀/0.0񡑀5+1.񡑀1/%∗!//񡑁񡑀∀Ι<<񡑀Ι<ΓΦΙΚ񡑀#<Κ񡑀8?<8;
9Π񡑀∆ΦΚ?ϑ񡑑񡑀ϑ8Μ<񡑀Κ?ΦΛϑ8;ϑ񡑑񡑀≅:Ι<8ϑ<񡑀ΓΙΦ=≅Κϑ񡑓񡑀8ΧΧ񡑀񡑗񡑙 #!0񡑀,% 񡑀0+񡑀,(5񡑀0∃!񡑀(+00!.5񡑁񡑀񡑖񡑒񡑈񡑉񡑀񡑠񡑗񡑒񡑠񡑑
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񡑄񡑠񡑕񡑑񡑕񡑕񡑕񡑀񡑒񡑀񡑄񡑗񡑠񡑕񡑑񡑕񡑕񡑕񡑀%∗񡑀1∗/!1.! 񡑀%6񡑀:Ι<;≅Κ񡑀Χ≅<ϑ񡑓
!/0񡑀∃+)!񡑒/! 񡑀1/%∗!//񡑀!2!.񡑁񡑀∗Φ񡑀ϑ<ΧΧ≅>񡑀
񡑄񡑠񡑕∋񡑀 >Λ8Ι8Κ<<;񡑀 Ν≅Κ?񡑀 񡑗񡑕񡑐񡑀 ∀%+񡑑񡑀 ϑΚ8Κ<;񡑀 ≅:Φ∆<񡑑񡑀 )∋!񡑀 )+∗!5񡑓񡑀 ∗Φ񡑀 <ΟΓ<Ι≅<:<񡑀 Ι<ΗΛ≅Ι<;񡑓񡑀 ∆8Θ≅>񡑀
≅ΜΦΧΜ<;񡑁񡑀ΝΝΝ񡑓∀Ι<<∃ΦΚ<Χ<ΙΚ≅=≅:8Κ<ϑ񡑓:Φ∆
Γ<Ι=<:Κ񡑀=ΦΙ񡑀ϑΚ8ΙΚΛΓϑ񡑑񡑀񡑕񡑒ϑ<:Φ;񡑀ΓΙ<񡑒8ΓΓΙΦΜ8Χ񡑓񡑀񡑖񡑒񡑈񡑉 ΓΙΦ=≅Κϑ񡑀Κ?ΙΦΛ>?񡑀ϑΛ::<ϑϑ=ΛΧ񡑀∆<Κ?Φ;ϑ񡑓񡑀∀Ι<<񡑀;<Κ8≅Χϑ񡑓񡑀3Ι≅Κ<
񡑒/!! 񡑀񡑈񡑘񡑘񡑘񡑉񡑓񡑀ΝΝΝ񡑓/<<;8Γ≅Κ8Χ񡑓:Φ∆񡑀 ΚΦ񡑀 񡑆/񡑀Φ񡑓񡑑񡑀,+񡑀ΦΟ񡑀񡑖񡑕񡑑񡑀(≅∆<Β≅Χ񡑑񡑀,񡑀񡑖񡑠񡑘񡑠񡑑񡑀ΦΙ񡑀:8ΧΧ
񡑈񡑉񡑀񡑠񡑒񡑗񡑘񡑠񡑕񡑓 .<Γ8≅ΙΦ:Ι<Κ<Ι8:Βϑ񡑓:Φ∆񡑀(ΦΝ񡑀ϑΚ8ΙΚ񡑀ΛΓ񡑓񡑀!8ϑΠ񡑀ΝΦΙΒ񡑔
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#ΙΦΝ񡑀 =≅8:≅8ΧΧΠ񡑀 Ν?≅Χ<񡑀 ϑΛΓΓΦΙΚ≅>񡑀 ΠΦΛΙ񡑀 ΧΦ:8Χ񡑀 /!∗%+.񡑀#%∗#񡑀≅񡑀,Χ8:<񡑀0<:?ΦΧΦ>Π񡑀Φ∆Γ8Π񡑀ϑ<<Βϑ
񡑙񡑗!񡑤񡑀񡑥񡑩񡑀񡑰񡑩񡑀∀񡑤񡑡񡑀񡑡񡑙񡑰񡑩񡑰񡑨񡑥񡑙񡑀񡑠񡑰%񡑩∀# 񡑩񡑁 :Φ∆∆Λ≅ΚΠ񡑓񡑀 ,ΙΦΜ<񡑀 ∆Φ;<Χ񡑓񡑀 !Ο:ΧΛϑ≅Μ<񡑀 Κ<ΙΙ≅ΚΦΙ≅<ϑ񡑓񡑀 ;≅ϑΚΙ≅9ΛΚΦΙϑ񡑓񡑀(ΦΝ񡑀:ΦϑΚ񡑀ΚΦ񡑀<ΚΙΠ񡑑񡑀ΝΦΙΒ񡑀=ΙΦ∆񡑀?Φ∆<񡑑񡑀ΦΙ񡑀8񡑀
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(1∗ .+)0񡑀≅Μ<ϑΚ∆<Κ񡑀=ΦΙ񡑀ϑΦΧ≅;񡑀:8ϑ?񡑀Ι<ΚΛΙϑ񡑓񡑀∀Ι<< ΝΝΝ񡑓∆8≅ϑΚΙ<<Κ∆;񡑓<Κ񡑀
∃+)!/! 񡑀0.2!(񡑀1/%∗!//񡑀񡑒񡑀!Ο:<ΧΧ<Κ񡑀≅:Φ∆<񡑑 ϑ≅Κ<񡑀88ΧΠϑ≅ϑ񡑀8;񡑀8;Μ≅:<񡑓񡑀ΝΝΝ񡑓∆≅ΧΦΙ:Φ≅񡑓:Φ∆񡑔<񡑀ΦΙ񡑀񡑈񡑕񡑕񡑉
8==ΦΙ;89Χ<񡑀 ΦΓΓΦΙΚΛ≅ΚΠ񡑓񡑀 %:ΧΛ;<ϑ񡑀 ΚΙ8Μ<Χ񡑀 Ν<9ϑ≅Κ<񡑓 񡑙񡑒񡑕񡑓 !∗0!.0%∗)!∗0񡑀!∗0!./񡑀񡑘񡑒;8Π񡑀:ΦΛΙϑ<񡑀Φ񡑀;<Μ<Χ񡑒
ΝΝΝ񡑓0?<0≅:Β<ΚΦΛΚ<Ι񡑓:Φ∆ ΦΓ≅>񡑀 8;񡑀 ∆88>≅>񡑀 =8∆≅ΧΠ񡑑񡑀 :?≅Χ;Ι<񡑇ϑ񡑀 8;񡑀 9ΦΝΧ≅>񡑀
.!!//%+∗񡑀,.++∀񡑀񡑄񡑠񡑕񡑕񡑀񡑒񡑀񡑄񡑘񡑑񡑠񡑕񡑕񡑀Ν<<ΒΧΠ񡑀ΑΛϑΚ񡑀Ι<ΚΛΙ񡑒 <Κ<ΙΚ8≅∆<Κ񡑀:<Κ<Ιϑ񡑓񡑀ΝΝΝ񡑓=ΦΛ;8Κ≅ΦϑΛ≅Μ<Ιϑ≅ΚΠ񡑓:Φ∆
∃+)!/! 񡑀񡑒񡑀!ΟΓΦΙΚ񡑔≅∆ΓΦΙΚ񡑑񡑀Φ񡑀<ΟΓ<Ι≅<:<񡑑񡑀;<Κ8≅Χ<; ≅>񡑀Γ?Φ<񡑀:8ΧΧϑ񡑓񡑀%Μ<ϑΚ∆<Κ񡑀Ι<ΗΛ≅Ι<;񡑓񡑀񡑈񡑉񡑀񡑗񡑙񡑒񡑠񡑠񡑖񡑓񡑀
?<ΧΓ񡑑񡑀9ΛΠ<Ιϑ񡑀ΝΦΙΧ;Ν≅;<񡑓񡑀񡑖񡑒񡑈񡑖񡑘񡑉񡑀񡑗񡑒񡑘񡑗񡑓 ,.+∀%0(!񡑀?ΚΚΓ񡑔񡑔ΝΝΝ񡑓:ΙΠϑΚ8Χ≅∆8><ϑ≅:񡑓:Φ∆񡑀ϑ<<Βϑ
!∗0.!,.!∗!1.񡑀񡑒񡑀%ΦΜ8Κ≅Μ<񡑀<Ν񡑀ΓΙΦ;Λ:Κ񡑀񡑂ΦΜ<ΙΝ?<Χ∆񡑒 ∆88><Ι񡑔<ΗΛ≅ΚΠ񡑀Γ8ΙΚ<Ι񡑓񡑀∗Φ񡑀:8ΧΧϑ񡑀ΚΦ񡑀:Φ∆Γ8Π񡑑񡑀ΓΧ<8ϑ<񡑁
񡑄񡑖񡑑񡑗񡑙񡑘񡑓񡑠񡑀3!!∋(5񡑀)%(%∗#񡑀8񡑀8∆8Θ≅>񡑀ΓΦϑΚ:8Ι;񡑀=ΙΦ∆ ≅>ΧΠ񡑂񡑀 ΦΛΚΓ<Ι=ΦΙ∆ϑ񡑀 :Φ∆Γ<Κ≅Κ≅Φ񡑓񡑀 !Ο:ΧΛϑ≅Μ<񡑀 Χ≅:<ϑ<< !∆8≅Χ񡑀;9ΦΦΚ?8ΛΚ?ΦΙΧ≅Β񡑓:Φ∆
?Φ∆<񡑁񡑀∀ΦΙ񡑀=Ι<<񡑀Ι<ΓΦΙΚ񡑀:8ΧΧ񡑀Ι<:ΦΙ;<;񡑀∆<ϑϑ8><񡑀񡑖񡑒񡑈񡑙񡑕񡑖񡑉 ϑΦΛ>?Κ񡑓񡑀∆8Ιϑ?8ΧΧ∆Φϑ<Χ<Π:ΦΟ񡑓<Κ
񡑙񡑗񡑒񡑗񡑖񡑙񡑓 %񡑀 ∗!! 񡑀 %/0.%10+./񡑀 %∗񡑀 !2!.5񡑀 /00!񡑁񡑀0Φ񡑀 ϑ<ΧΧ
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130 Entrepreneur // March 2011

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>:024񡑉񡑀<≅Α0<Α񡑀8<5=?;0Α8=<񡑀74?4񡑇񡑀Χ8≅8Α񡑡񡑀888񡑆񡑣4∋1(,−5∗
񡑩3324671−6−∗5񡑆(20񡑇񡑰237/∋4񡑰−(.5񡑆∋53 Credit Card Number

−−−񡑉(%%∗(#񡑣∃(񡑣∃񡑥)񡑉񡑥%#񡑀 ∀=∆񡑀 2=≅Α񡑇񡑀 Expiration Date Security Number

?424≅≅8=<񡑀 >?==5񡑉񡑀 ?0<278≅4񡑀 >029064񡑡񡑀 񡑂񡑘񡑇񡑠񡑖񡑑񡑉񡑀 867񡑀
?4ΑΒ?<񡑁񡑀񡑅񡑙񡑑񡑑񡑆񡑀񡑘񡑑񡑑񡑈񡑙񡑑񡑗񡑓񡑉 Amount Authorized Signature
(񡑀 (񡑣∃񡑥)񡑀 &+(񡑥񡑣)񡑀 񡑥%+()񡑢񡑀 64Α񡑀
43Β20Α43񡑇񡑀14񡑀>?4>0?43񡑀5=?񡑀Α74񡑀8<Α4?Χ84∆񡑀>?=24≅≅񡑇񡑀9<=∆ Company Name
∆70Α񡑀 Α=񡑀 0≅9񡑀 2Β??4<Α񡑀 5?0<278≅4񡑀 =∆<4?≅񡑉񡑀 &:40≅4񡑀 Χ8≅8Α
∆∆∆񡑉5?0<278≅434Χ4:=>;4<Α8<2񡑉2=;񡑀 =?񡑀 20::񡑀 񡑅񡑘񡑒񡑗񡑆񡑀
񡑓񡑑񡑕񡑈񡑔񡑖񡑒񡑘񡑉 Contact Name
INTERNET
Address
񡑢񡑨∀ 񡑢񡑰 񡑢񡑨񡑢# 񡑀񡑠񡑦񡑘!!񡑥񡑣񡑥񡑢񡑡!񡑀񡑩񡑨񡑦񡑥񡑨񡑢񡑁
(4027񡑀 Α7=Β≅0<3≅񡑀 =5񡑀 <4∆񡑀 >?=≅>42Α≅񡑀 4Χ4?Φ񡑀 30Φ񡑀 =<񡑀 City State Zip Telephone
Α74񡑀8<Α4?<4Α񡑀Α7?=Β67񡑀Entrepreneur ;060Γ8<4Η≅񡑀∆41≅8Α4
∆∆∆񡑉<Α?4>?4<4Β?񡑉2=;񡑐2:0≅≅85843≅񡑀%<:8<4񡑀?0Α4≅񡑀≅Α0?Α񡑀
0≅񡑀:=∆񡑀0≅񡑀񡑂񡑕񡑠񡑉񡑀;08:񡑀−1+2񡑗43−(/∋55−+−∗)5񡑆(20񡑀=?񡑀>7=<4 񡑣3񡑀񡑥=>Φ
񡑃񡑕񡑈񡑈񡑄񡑀񡑔񡑓񡑉񡑅񡑐񡑒񡑒񡑒 =?񡑀񡑃񡑔񡑉񡑔񡑄񡑀񡑒񡑈񡑔񡑅񡑔񡑒񡑈񡑒񡑉񡑀

MARKETING
∗񡑀񡑣񡑀&(%))%∃񡑣∀񡑀񡑥+)∗%#񡑀∆41≅8Α4񡑀Α=񡑀8<2?40≅4
Φ=Β?񡑀≅0:4≅񡑉񡑀1񡑔<4Α񡑉2=;񡑐≅;0::18Γ񡑀񡑥0::񡑀񡑅񡑘񡑒񡑕񡑆񡑀񡑠񡑔񡑗񡑈񡑑񡑓񡑑񡑙񡑉

MONEY MAKING OPPORTUNITIES

񡑢񡑘!&񡑀#񡑨񡑥񡑱#񡑢񡑀񡑩񡑰񡑰񡑩 ∀#񡑨񡑥∀&
񡑥0>8Α0:8Γ4񡑀 0<3񡑀 40?<񡑀 20≅7񡑉񡑀 ∀0?64񡑀 Β<Α0>>43񡑀 Β>≅20:4񡑀
;0?94Α񡑉񡑀 񡑂񡑓񡑑񡑉񡑀 www.monaco-advision.com #0<Φ񡑀
1ΒΦ4?≅񡑉

+∀∀(񡑀񡑤(+)񡑀>?=6?0;񡑉񡑀=;4񡑀10≅43񡑉񡑀<34>4<34<Α
8≅Α?81ΒΑ=?񡑇񡑀񡑤=񡑀񡑗񡑑񡑓񡑇񡑀∗∆8<񡑀0::≅񡑇񡑀񡑀񡑙񡑔񡑔񡑑񡑉

OF INTEREST TO ALL
∃−񡑀 ∃∗∗.񡑉񡑀 񡑥(∗񡑉񡑀 %񡑤)񡑉񡑀 ()񡑉񡑀 ?44񡑀
20Α0:=6񡑉񡑀񡑒񡑈񡑅񡑙񡑑񡑑񡑆񡑀񡑔񡑔񡑙񡑈񡑙񡑕񡑙񡑕񡑉񡑀∆∆∆񡑉34<&?4≅≅񡑉2=;񡑀

񡑣∀∀񡑀∃񡑀∀%,񡑀∗%∃∗񡑁 )8<24񡑀񡑒񡑠񡑠񡑖񡑇񡑀>?=Χ4<񡑀>?=6?0;
70≅񡑀74:>43񡑀Α7=Β≅0<3≅񡑀;44Α񡑀0<3񡑀;0??Φ񡑁񡑀=<ΗΑ񡑀≅>4<3񡑀
0<=Α74?񡑀7=Β?񡑀0:=<4񡑇񡑀≅=;4=<4񡑀8≅񡑀∆08Α8<6񡑀Α=񡑀;44Α񡑀Φ=Β
<=∆񡑁񡑀)44<񡑀=<񡑀8≅2=Χ4?Φ񡑇񡑀񡑥∃∃񡑇񡑀∗8;4񡑉񡑀񡑅񡑙񡑑񡑑񡑆񡑀񡑖񡑘񡑗񡑈񡑔񡑔񡑗񡑘񡑉
?44񡑀,񡑉񡑀∆∆∆񡑉5=?486<:0384≅񡑉2=;

REAL ESTATE
񡑣(∃񡑀񡑂񡑒񡑑񡑑!񡑀∗)񡑀.񡑣(񡑀0≅񡑀0񡑀?4≅834<Α80:񡑀?40:񡑀4≅Α0Α4
064<Α񡑁񡑀∆∆∆񡑉񡑣64<Α񡑣∋񡑉2=;

TRAVEL
Classified Department, P.O. Box 570, Clearwater, FL 33757-0570
%#񡑤񡑣)񡑀∗(񡑣,∀񡑀񡑤+)∃))񡑀񡑈񡑀24::4<Α񡑀8<2=;4񡑇 (800) 762-3555 • Fax (727) 507-7506 • info@rpiclassifieds.com • rpiclassifieds.com
055=?301:4񡑀 =>>=?ΑΒ<8ΑΦ񡑉񡑀 <2:Β34≅񡑀 Α?0Χ4:񡑀 ∆41≅8Α4񡑉
∆∆∆񡑉∗74∗8294Α񡑥=Β<Α4?񡑉2=;

Entrepreneur March 2011 131

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//
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“While most people might see a sour economy as a
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If you are interested in advertising in this section, please call (800)938-4660 or email sales@directactionmedia.com Entrepreneur // March 2011 133
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Test your mobile manners

Reckless mobile device use is a growing epidemic that threatens the very fabric of
American life (just ask Tiger Woods or Brett Favre). Since you need to pass a written
test to drive a car, operate heavy machinery and perform other everyday tasks,
we decided there should be one to encourage more responsible mobile phone usage.
Will you pass or fail? —JASon AnKenY
1. You are meeting an c. Keep one hand on the 4. You agree to meet with mobile website
important client for din- wheel while typing a a longtime client using c. Video clips of your cat,
ner when your mobile text message that reads, the iPhone’s FaceTime Mr. Snugglesworth
handset rings. You “Can’t talk—driving” video chat service. You
a. Send the call to open the call by saying: 6. You use your phone
voicemail 3. You are sitting down a. “You’re right—this is to check in at a new
PHoto© g ettY IMAg eS/MICH Ael HeISSner

b. Step away from the
table to take the call
c. Say, “Hang on, my
bookie’s on the phone”
2. You are driving to the
airport when an em-
ployee calls. You
a. Accept the call using a
hands-free headset
b. Pull the car over and
take the call
with a prospective cli- much better than restaurant via Four-
ent when your phone’s voice calling!” square, constantly
Jimi Hendrix ringtone b. “Isn’t technology update your location
interrupts the conver- amazing?” on Facebook and tweet
sation. You c. “Wow—you’ve gained a details of your meal on
a. Apologize ton of weight!” Twitter. You are
b. Make light of the a. A product of the social
situation 5. You buy a smartphone media generation
c. Seize the moment expressly to show off b. Deeply connected to the
to show off your air a. Your startup’s new virtual world
guitar skills mobile app c. Self-absorbed
b. Your company’s new

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136 Entrepreneur // March 2011
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I’m Melanie. Together, my brother and I

brought Dad’s restaurant into this century.
With Excel 2010 I recorded Dad’s receipts
from my home, uploaded the spreadsheet
online, and using the Excel web app, my
brother and I worked on them together.
Dad was thrilled. Though I think he hides
the abacus when we visit.

> See how you can make working together

great with Office 2010 at makeitgreat.com

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Dell recommends Windows¨ 7 Professional.

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