Venture Lab's Interview with John Hennessy

This is an interview of John Hennessy (the 10th President of Stanford University and one of the founders of MIPS Computer Systems) by Amin Saberi and part of Stanford online class on technology entrepreneurship. For more information see http://venture-lab.org

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• See the class description and frequently asked questions. 
• The course operates according to the flipped class, where team-based, experiential education (learning by doing) is central and video lectures and readings are there for support.
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• Start with the intro and course overview videos.
• For Chinese viewers the videos are also on YouKu (http://u.youku.com/eesley)

Tips For Small Business Networking Events

As a small business owner attending networking events should be part of your normal routine. Developing relationships with other business people can lead to partnering, mentoring, clients, and friendships. All of which can benefit your business as well as you pwersonally.

Keep these simple tips in mind when you participate in a networking event ....

Do not talk about only yourself
Do not push your services or products
Make sure to practice your elevator pitch
Be polite
Smile
Be professionally dressed

My biggest pet peeve is that so many people don't understand that networking is not selling!

Networking is about meeting people, exploring possibilities, perhaps getting to know people and their needs better. Yet so many are there only to sell, sell, sell. They could care less who you are or what your needs/interests are. They just want to push their products/services at you.

So some more tips are ... be friendly & welcoming, ask more questions, talk about the other person more than yourself, if a sales pitch starts up, excuse yourself politely and move on.

Another pet peeve isn't necessarily what happens at networking events, but rather an outgrowth of it.

I usually end up with a fair amount of business cards, but despite my efforts to connect with these people after the event... many are non-responsive. I am left wondering why people went to an event if they had no intention of trying to establish new relationships.

It may be that some people are really only interested in what they can sell you or what you can do for THEM. So if they determine you aren't useful, they don't bother trying to get to know you.

Me, I enjoy meeting people. If I'm able to help them then I'm happy to do it; but I expect them to be engaged at the least. I go to networking events to network... not to have my time wasted by people who don't really care.

Modern networking is a marathon, not a sprint. It is about creating and building relationships with the people you meet.

I believe there isn't anything that can replace the benefits of in-person networking, and that is saying a lot because I am introverted and would rather stay behind my computer!

Where you network is as important as how you network; BNI is a more structured and results-oriented networking group ... whereas Chambers of Commerce are informal and more about what your business brings to the community (money, jobs).

Whatever you do RELAX and be yourself. Don't fake it. Meet a new friend and grow an old friend.

How To Build A Marketing Plan For A Small Business

A marketing plan is part of your overall business plan ... and very important part. With that in mind you should spend special attention to building your marketing plan as it may make the difference between success and failure.

Here's what you need to consoider to build a marketing plan that will set your small business off in the right direction.

TASTE, TRENDS AND TECHNOLOGY

What does your research indicate is the trend in your field? Will it stay the way you are currently offering supplies and services or will it change? This item covers the developments you expect for the next few years. Evan a 'perfect' business can become obsolete overnight due to future developments. Specify a 5 year forecast of your field in your area.

SALES REVENUE FORECAST

Have you developed these targets? This section shows your estimates of future sales revenue for your business. Your strategic plan, needs to spell out the specific actions you will take to achieve your forecast sales revenues.

DIFFERENTIATE YOUR BUSINESS FROM THE COMPETITION

How does your business differ from the competition's strong and weak points. Again, remember to carefully look at your business from the customer's perspective. If you're not sure how your pricing policies compare to the competition, here are some guidelines. Most people associate high prices with high quality and extra service, while they associate low prices with low or average quality and minimum service. Make sure you provide extra quality and service if your prices are higher than your competition or make sure that your prices are lower if your quality is average and your service is minimum.

DECIDE HOW TO REACH CUSTOMERS

Once you describe your target customer, it's easier to create a list of possible ways to reach that person. One of your jobs as a businessperson is to decide which of all the possible methods of communication will give you the most exposure for the least cost in money or time.

EVALUATE THE RISKS FACING YOUR BUSINESS

COMPETITION: Most businesses have competition. How will your business differ in significant and positive ways from your competition? If your competition is strong, don't minimize that fact, but figure out ways you will adjust to or use that strength. For example, if you plan to open a restaurant next to an extremely popular one, part of your strategy might be to cater to the overflow. Another might be to open on days or evenings when the other restaurant is closed.

PIONEERING: If you anticipate no direct competition, your business probably involves selling a new product or service, or one that is new to your area. How will you avoid going broke trying to develop a market?

CYCLES AND TRENDS: Many businesses have cycles of growth and decline often based on outside factors such as taste, trends or technology. What is your forecast of the cycles and trends in your business? For example, if your forecast tells you that the new electronic product you plan to manufacture may decline in three years when the market is saturated, can you earn enough money in the meantime to make the venture worthwhile?

SLOW TIMES: Every business experiences ups and downs. Is your business small and simple enough, or capitalized adequately enough, to ride out slow times? Or do you have some other strategy, such as staying open long hours in the busy season and closing during times of the year when business is ?

OWNERS EXPERTISE: Nobody knows everything. How do you plan to compensate for the knowledge you're short on?

Write your risk analysis by first thinking of the main dangers your business faces. This shouldn't be hard, as you have probably been concerned about them for some time. Some of these may be on the list set out above; others will be unique to your business. Once you have identified the principal risks facing your business, write out a plan to counter each. But don't bog yourself down worrying about all sorts of unlikely disasters.