Categories
Business Ideas

Micro Classified Ads Websites

Years ago I lived and worked in the Bay area (I was there for the dot com boom and bust). While I was there I discovered the wonder that is Craigslist. When I was heading back to Canada for my Masters, I had the idea of making a Canadian version. I actually went so far as registering a domain and e-mailing the Craigslist staff asking them if there would be any possibility of a partnership. They blew me off and I dropped the idea, but now that everyone in Canada is using Craigslist, I kick myself for not duplicating their website (which would be easy, the beauty of Craigslist isn’t the technical sophistication of their site, its the community they build and maintain) and beating them to Canada.

Nowadays I think people are idiots who consider competing with Craigslist or E-Bay. These are pretty well the definition of “winner takes all” businesses. You could only really compete with them by starting in a market they hadn’t entered yet.

Along a similar line, another business idea I’ve had is to create classified sites for small communities. This could either be small towns, apartment buildings, schools or areas in a town. The site would let someone set up a new classified site, which would be along the same lines as Craigslist (although with fewer categories since there’d be a smaller user base): buy and sell, jobs, housing and personals. There would be discussion forums that would help build the community and keep people coming back, especially in the early days. There would be a moderator who could do various things to control the site (perhaps breaking up categories, add some of their own advertisements, that sort of thing). The database behind the site would be managed by the company creating the service (think Geocities). The moderator would build the community and advertise the site.

Certain places on the page would be “reserved areas”. When and if a community grew to a certain size, the company would then use them as an ad network (this is how it’d be monetized). Ads could be sold broadly (e.g. this goes in rotation on all sites throughout the network), or targeted (these only go out to sites in Toronto, or apartment buildings in Toronto, or sites within 5 km of the restaurant). Alternatively, if the moderator or community objected to ads, they could pay a hosting fee and get an ads free version (the price would increase with their usage). If there wasn’t any interest in building a sales force, ad space could just be used with Ad Words or sold to some ad network.

The downside is there’d probably be tons of sites with little or no activity. The upside would be that the creation and maintenance of this would be VERY cheap, and would scale with the user base. As there was more demand placed on the system (perhaps leading to higher bandwidth costs or more powerful servers), this would translate directly into more page views, which would translate directly into more revenue. The first version would take nothing more than a bit of developer time and a computer hooked up to the internet 24/7 (I host servers from my home connection when its nothing mission critical).

The actual demand (processing, bandwidth, and hard drive space) on the system should be quite minimal for a classified ads type site.

For this post, or any other of the wacky business ideas I post, obviously I’m releasing any ownership claims I may have over these ideas. If you like something I post and feel like you can make money from it, please feel free to do so! Let me know when you’re opening and we’ll do a post on it to give you some free advertising.

Categories
Business Ideas

Healthy Fast Food

The core of the idea is a fast food chain that sells exclusively healthy food. Whereas most fast food focuses on: fast, cheap, tasty the focus would instead be on: fast, cheap, healthy. The primary consideration for “healthy” will be low calorie, although balanced nutrition and all that good stuff won’t be avoided. Rights to use the brand and formulas for most major weight loss programs will be purchased, so the menu can have weight watcher points, a south beach diet section and things along those lines.

One obvious objection is that fast food places have tried healthy menus and they flop. I’d speculate that the two problems are that people get tempted by the unhealthy food, and that they aren’t sure if they can trust them (one of McDonald’s salads had more fat than the Big Mac). The chain would make all nutritional information about all menu option readily available in easy to understand formats.

Another objection would be that Subway is already doing this. I agree, and the approach would be somewhat like Subway’s “eat here every day until you’re thin” Jared idea. The thing is that there’d be more variety than Subway (not just subs) and Subway again has the unhealthy menu options as well (such as their meatball, tuna melt or pizza subs).

A friend of mine is a vegetarian, and he can usually find something at most restaurants that he can eat, but when we go to a vegetarian restaurant, he loves it because he suddenly has a full menu to choose from. That would be the idea behind this restaurant, instead of just serving “Diet Coke” along with the other pops (or soda for the Americans), it would be a choice of 6 different kinds of diet pop. Instead of 6 styles of healthy subs, it would be 25 different options of all different kinds of food, some appropriate for different meals (such as breakfast), all in different styles. There’s value in offering a wide assortment of fringe options.

Where possible, if it could be healthy and tasty that’d obviously be ideal. Some things like hot sauce or salsa are yummy and low calorie.

Menu plans could be offered, showing different different meal options and how many calories they’d add up to daily (and perhaps even suggesting late night snacks that could complement them).

Beyond the menu, the store could offer a “lifestyle”. Perhaps have pictures on the wall of regulars who have met some weight loss goals. Perhaps make space available for Weight Watchers meetings or other groups. Perhaps have invited speakers come and talk about diet, exercise and nutrition.

For this post, or any other of the wacky business ideas I post, obviously I’m releasing any ownership claims I may have over these ideas. If you like something I post and feel like you can make money from it, please feel free to do so! Let me know when you’re opening and we’ll do a post on it to give you some free advertising.

Categories
Opinion

The Art and Science of Boycotting

I boycott companies often.

I don’t make a big stink about it (like picketing out front, setting up a website, or anything), but if I’m unhappy with a product or service and the company won’t fix it, I stop shopping there. I’m like the soup nazi as I’ll give different punishments for different crimes (sometimes I won’t patronize them for 6 months, sometimes for life). I’ll warn friends away from them if it comes up in conversation, but that’s about as far as I go.

I don’t pretend to believe that this hurts the company in a significant way, I’m sure they’re usually not even aware of it, but I view consumer activity as voting with your dollars, and I refuse to “vote” for companies that do a poor job. I certainly experience some schadenfreude when and if the company goes out of business.

One unfortunate side effect is a built-up black list of nearby businesses until I have to move in order to purchase the necessities of life. I live in fear that the moving company will piss me off one day. Sadly this is only a half-joke.

The things I boycott over are usually poor products or rude service. I won’t pay to be disrespected (enough people will do it to me for free). I realize that employees are individuals, and perhaps the company owner can’t control everything they do or say, but if you haven’t trained your employees to deal with customers in a civilized manner, I’ll shop somewhere where they have. I’ll sometimes boycott stores if they have a convoluted purchasing process – if it takes too much effort to shop there, I’ll go elsewhere.

I don’t boycott over expensive prices, but I probably won’t buy much there either if its pricey. I never boycott based on political / social issues that don’t affect me as a customer. If the owner of a cafe donates money to pro-life or pro-choice causes, how does that affect my latte? Society would be a pretty miserable place if we only did business with people who had the exact same world outlook as ourselves.

Meg at “The World of Wealth” recently wrote up her bad experience ordering sushi (I was sympathetic as I know what its like when you’re jonesing for sushi!). I’m 100% behind her to not order from a restaurant where she can’t interact with the staff (and which leads to order mix ups). I wouldn’t make the same choice she does about not eating at a restaurant that employs illegal immigrants.

How often do you boycott a company? Which company has treated you the worst, and what have you done about it?

Categories
Announcements

Saturday Weigh In and Linkstuff

Since Mike’s stopped the Saturday posts, I figured it’d be worth giving you one last one :-).

Weight was 177.5 lbs this week. Not bad compared to Mike’s 180.5, but pretty miserable compared to my 145 lbs low. Mike’s taller than I am, so from a BMI perspective he’s kicking my ass.

You can see some of the sites / posts I recently viewed and liked at my StumbleUpon page.

Paul Graham wrote a thought provoking piece Cities and Ambition. I lived in SF, and I agree that the ambition there was power. No idea *what* Toronto’s ambition could be. Maybe envy?

I came across PF Buzz this week. It’s basically Digg for PF blogs.

I had a laugh when Thicken My Wallet worried about not spending enough on wedding gifts. I’ve been budgeting $50 for most friends who get married. TMW is increasing from $100. I guess Mr. Cheap has to loosen the purse strings a bit. A while ago I had another laugh at TMW’s site. I clicked over to Greezeo since he was answering some questions there. The by-line was a woman’s name, and for a second I thought “is TMW a woman?”. Its amusing, since a blogger’s (or any writer’s) gender doesn’t make much of a difference most of the time, and I wasn’t 100% sure whether TMW was a man or not (his writing has always seemed pretty darn masculine to me, but I couldn’t remember whether I’d read anything that definitely said he was a man). Turns out, the by-line was someone else and he is a man.

Growth in Value had some great links to info about the recent Canadian banks reports.

Million Dollar Journey has some good tips on getting discounts. I haggle like a demon when I’m traveling, but find it hard when I’m at home. His approach is pretty well what I use, so I should try it in Canada. He got a 60% discount off of WAL*MART, which is pretty damn impressive. I wonder if he’s ever convinced a store to pay him to take something away?

Money Gardener added some GE to his portfolio. Without having dug too far into the company, I really liked the looks of it right now too, so I’m jealous (I don’t mind the STARVING part of being a student, but not having extra cash to buy stock kinda sucks…)

Note – Mike added this link later.

Violent Acres wrote yet another brilliant post on gift giving on which I couldn’t agree more.  People getting married are the worst – I know people who are in their 30’s, make good money (ie $75k+ each), own their own house/condo and STILL insist on having some sort of fund raising events just because they are tying the knot.  Screw you!!

Categories
Opinion

Ideas Are Cheap

Occasionally you come across an article that gives you an epiphany and shifts your view of the world. One such article for me was Tom Sloper’s excellent #1 lesson for aspiring game designers. While its interesting in and of itself (assuming that you’re interested in video games), I think the core idea extends to most areas of life.

It is: “Ideas are worthless, it’s implementation that has value”.

This flies in the face of a lot of deeply held beliefs many people have. I knew one man who spent his life coming up with ideas for inventions and trying to sell them to companies. He was retired and broke (late in life he finally tried to finance one of his ideas himself and lost his house). He was convinced that a clever idea pitched to the right person would make him rich.

The Google guys originally made the rounds trying to sell their PageRank approach to various companies for $1 million. They were turned away, and eventually decided to just do it themselves. The idea wasn’t worth $1 million, but the company they’ve built is worth over 100 billion.

The argument could be made that the value of their idea was unknown when they were pitching it, and that its worth more now that its been proven to be a better approach. I’m sympathetic to that view, but I really feel there’s more to it than that. You can read their original paper on PageRank and implement it yourself if you want, but your new search engine certainly isn’t going to be worth billions.

I think there’s an abundance of good ideas in the world. The easiest part of creating anything new is to think of an idea that would be an improvement on what is currently in existence. I think just about anyone can do this easily. The hard part is making that idea happen, and dealing with the hundreds or thousands of obstacles that stand in your path. This takes resources (including your time), in a way which brainstorming doesn’t, and makes it inherently more valuable.

In his article, Tom cites the example of a friend of Dune author Frank Herbert who suggested to the author that he tell him a great idea for a novel, Herbert write it, and they split the profits 50/50. Herbert refused, saying that writing is the hard part. Similarly, Craigslist is FULL of people trying to find a programmer to implement their “revolutionary idea for a website”. They offer to give the person who does all the work building it a share of the resulting site. How nice! I foolishly met with some of these wannabes in my younger days, and not only did they expect me to do all the work, their ideas were pretty lame (“its like MySpace, but cooler!”). Ideas for websites are the easy part, BUILDING them is hard!

I have over 20 ideas for innovative businesses that I think all could work. Implementing any one of these ideas (or even building something that wasn’t original, like starting a Subway franchise) would be FAR, FAR more valuable that a “portfolio” of ideas that never go anywhere. I’ve actually been tempted to start a series of posts detailing my ideas just in the hope that someone likes one and implements it: these ideas have so little value that I’m happy to give them away.

Starting a business is REALLY hard, which why I just yak about ideas instead…

Categories
Opinion

When Free Giveaways Backfire

I love free giveaways, and last Sunday Harvey’s (a Canadian burger chain) was giving away its original burger free from 10:30-3 pm. I swung by, looking forward to munching on the beefy goodness, and gave up when I saw the lineup was out the door and down the sidewalk. Not being willing to wait for 20-30 minutes for a $3 burger, I shrugged my shoulders and headed to my office to work.

Years ago when I was an summer intern at an Ottawa tech company, there was a big promotion at a local bar with free beer. Tons of young people went out for the night and if there was any free beer available, I didn’t get any of it. When I asked servers there, they kept saying “later, later”. Then suddenly it became “its all gone”.

The obvious defense if someone complains about something free is “well, do you want your money back?” Mike and I don’t charge visitors to our blog a dime, so there’s a limit to how much complaining we’d put up with from a visitor. HOWEVER, businesses that decide to do free giveaways do them for a reason, and I think they’re sometimes undermining themselves when they do them poorly.

In the case of Harvey’s and the bar, they clearly are saying to their customers: “Come try our product free, its so good you’ll become a regular”. However, in both cases when I went to sample their product, I was dissatisfied. So their free giveaway alienated a potential customer instead of converting them. I never went back to that bar, and my view of Harvey’s has shifted a bit to viewing it as a place with long lineups and slow service.  I’ll still eat there, but when I’m trying to decide where I want to go out to grab some grub, I’m sure it’ll factor into my decision on some level.

In both cases, if they wanted to give away a free sample, they should have tried to make the experience as good as possible, even if that means having more staff on hand, or more samples to give away. Otherwise why even bother?  I can’t see the point of teasing people with “we have something for free / cheap” then making it difficult for them to try it.

In terms of our blog, we’ve never hit the point where we stop listening to someone complaining (Mike always forwards the complaints with the most cursing in them to me – although usually we just laugh). Even though visitors to the blog don’t pay us directly, we like traffic and higher traffic translates directly into more options for monetizing. They may not be paying customers, but we want visitors to have the best possible experience.  If they complain, we welcome that as an opportunity to learn how to improve what we’re offering.

Categories
Opinion

How To Become an Expert in Anything

I recently came across two similar approaches to “becoming an expert” in a field. Both are somewhat similar, and both are in harmony with my experiences in life.

Two way to become an expert on any topic are:

  1. Read a book every month on the topic for one year.
  2. Study the topic every day for 30 minutes.

A father of a friend of mine suggested the first approach. The selection of books is important, if you keep reading “introductory” books on the subject, you probably won’t make much headway (although you might be in a great position to teach others the basics, in a sense you’d be an expert on the basics). Conversely, even if you read through advanced books on the topic, they won’t do you any good if you don’t understand them. A course of reading that progresses from the basics to the more advanced would be ideal (and a reading list from someone who already possess expertise in the field you’re interested in would probably be worthwhile).

Keep in mind that your book selection will also determine what you’re an expert OF. If you read a Robert Kiyosaki book every month for a year, I think you’d be an expert in the “Rich Dad” philosophy, NOT necessarily an expert at finances or making money. Similarly if you studied naturopathy for a year, you’d be an expert in naturopathic medicine, NOT necessarily in medicine or the maintenance of good health.

My childhood doctor complained to my father that with the ease of accessing information from the internet these days, most of his patients develop more expertise about their individual ailments than he possess. These same patients could have probably done this 50 years ago if they were willing to invest the time.

Also keep in mind, this would be a very academic form of expertise. Studying a book on tennis every month for a year would allow you to VERY knowledgeably discuss the players, game and history. It probably wouldn’t make you play very well. On the other hand, reading a book on chess strategies every month for a year probably WOULD improve your game, even if you didn’t play once during that time.

John T. Reed advocates the 30 minutes of study per day approach. In some ways this is a broader idea, as the 30 minutes a day COULD be reading books, but it could also be alternative approaches. I learned “Django” (a framework for easily constructing database driven websites) for a few projects a while back and at the time I was learning it, there weren’t any books available. There WAS a number of discussion forums and on-line documentation (along with using the system itself) which did allow me to become an expert.

In neither of these cases does expert mean “best in the world”. It means you’ll be “a person with a high degree of skill in or knowledge of a certain subject.” When the topic comes up in social situations, typically you’ll be the most knowledgeable person participating.

John T. Reed boldly claims that after 6 months of studying something for 30 minutes a day people in your region will seek out your expertise, and after 1 year people nationally will seek it out. This corresponds with his experience. Mike and I were referenced in the Globe and Mail after writing our blog for about a year.

Have you had experience becoming an expert using either of these approaches? What was the topic and do these time frames correspond with your experience? Do you think there are areas where this wouldn’t work? If yes, what are they?

Categories
Opinion

Vonage Phone Service

I love to save money and phone service is typically one of those big bills none of us like to pay each month. A little over a year ago, I was preparing to move in with my then girlfriend, and thought an excellent idea would be to move my number over to a VOIP (Voice Over Internet Protocol) phone. These are basically phones that operate over the internet instead of being connected to Bell’s network.

There are a number of providers, but at the time Vonage was advertising like crazy. They seemed like the market leader (and I had had problems with Primus, my provider at the time). Although they promised to migrate my phone number, I had to keep on them constantly to actually make this happen (and I was nervous as the move was approaching that Primus would cancel my service at my old address and release my number back into the pool). Apparently number allocation still involves Bell, and they do everything they can to make this process difficult (ideally to embarrass their competition is what I was told).

Pretty well from the start, service quality was spotty. I’d be talking to people and occasionally (like once every hour or two) it would cut out for 3 seconds. Not the end of the world, but I got pretty sick of having to ask people “could you please repeat that, my phone cut out”.

The installation and portability of the phone was nice. You just hook it up to any internet connection, and start talking. In theory, you could be in Taiwan, talking on the phone, and to the rest of the world it would seem that you were in Toronto (your number WOULD be a local Toronto number).

The price seemed great at the start, but after I added unlimited minutes in Canada and the US it got up to about $40 / month, which doesn’t seem like a great deal these days. It *was* nice that ALL the bells and whistles are included with the basic line (you get call answer, call display, call waiting, call forwarding, conference calling, etc, etc, etc all included). It also was pretty neat that I could check my voice mail through a web browser (all callers would be displayed and you can play the messages as a sound clip).

The guy I talked to to cancel tried his damndest to keep me, offering to get technicians to help me improve my quality (I had already setup a new phone service through Rogers at this point so I wasn’t interested). When I refused that, he offered me one month free along with the promise of improved quality, and when I held firm, he offered me 2 months free before finally cancelling my account. So if you’re a Vonage customer, an easy way to get 2 months of free service would be to call and say you want to cancel :-).

As part of the cancellation, they hit me with a $50 “termination fee”. This was because I had been a customer less than 2 years. Supposedly this was in my service agreement, but I certainly don’t remember ever being warned of this when I was setting up the account. Please factor into your decision, if you ever decide to get VOIP and Vonage specifically, that they’re the type of company that will kick you in the teeth if you ever want to leave.

A man I was talking to at the University laughed at me and said there are a number of VOIP options that are far cheaper than Vonage. If it wasn’t for the sound quality issues I may have inquired further, but I’m basically off of VOIP at this point.

Have you ever used VOIP?  What was your experience like?  Who do you use as your landline phone service provider?