Tuesday, June 29, 2004
RE: Kiss-Kiss for Kerry -- endorsed by women entrepreneurs (see the amazing photo!)
According to a new poll released on Monday by Fortune Small Business, female entrepreneurs favor John Kerry (50%) over George W. Bush (44%), while male entrepreneurs prefer Bush (60% - 33%). Small majorities of woman entrepreneurs hold unfavorable views of both Bush (54%) and Kerry (53%). Women entrepreneurs are far more likely (42%) to be Democrats than men.
FORTUNE Small Business editor Richard Murphy says women will wield wild clout in this Fall's election. That's no surprise to Kerry, a ranking member of the Committee on Small Business and Entrepreneurship who recently led but failed to pass THE WOMEN'S BUSINESS CENTERS PRESERVATION ACT OF 2003 -- a bill blocked by the Republican majority. A virtually identical version of the bill was eventually passed by U.S. Senator Olympia J. Snowe (R-Maine), Chair of the Senate Committee on Small Business and Entrepreneurship. Is it just me or does Kerry make a darn fine Gene Simmons? Get a look at his tongue in this photo! When he keeps his tongue in check, Kerry quips wise quotes: "Women business owners do not get the recognition they deserve for their contribution to our economy."
Kerry has recently affirmed his commitment to increasing small business loan programs as well as federal investments in venture capital programs. According to a September 2003 report by the National Women's Business Council, women entrepreneurs cited access to capital as their biggest challenge and over half the women surveyed found it difficult to secure capital to start their business. In the past year, George Bush has practically eliminated the SBA's microloan program for women-owned business and will likely cut the 7(a) loan program, which provided $1.8 billion in loans to women-owned business in 2002.
Pleased as punch that when you google search "kerry women entrepreneurs" re:invention's blog comes up first (before the Fortune Small Business article AND Kerry's own site). Darn if I still haven't received any calls from the Kerry campaign. Don't just tease me, Kerry. You're in Chi-town today for the Rainbow/Push Coalition Conference and you KNOW I'm a softie for silver faced rock stars.
Saturday, June 26, 2004
RE: A Trojan Horse for Women: A Soliloquy
Those of you who read re:invention's blog know the focus is news and trendspotting with a light flavor of personal charm. I am a passionate champion of women. Rarely do I pause for highly personal blog entries. Yet this Saturday morning, I am compelled to do so.
I should be sharing stories about this past week's amazing Springboard Enterprises Silicon Valley event. Finally meeting gracious host Amy Millman, champion of women and mentor Jeff Nolan (SAP Ventures), and heroines Kay Koplovitz and Carol Nichols (Texas Women's Venture Fund). Watching 23 women expound business plans with dramatic returns for investors. Hearing women talk about the empire of Carly Fiorina (the epitomy of power in the Bay Area). The thrill of last week's Inc. article and the potential Businessweek article we were negotiating from the road this week...
Driving to the San Francisco Airport in my rental car, I called my Sir FCFL -- that's Sir Far-Cry-From-Lancelot -- filled with excitement about meeting so many amazingly talented women, the culmination of months of hard work and a geniune feeling of epiphany. And his support, as always, was lukewarm and dispassionate. When I asked to see him upon my return home to Chicago, he declined, suggesting his schedule was fettered with volleyball and soccer, intemperately intimating a general disinterest in making any concrete plans. He doesn't like making concrete plans, he said. Perhaps he can squeeze in time for me one afternoon this weekend, he said. More than that is asking too much, he said. The words he then proffered settled in around me like a low mountain skulking dark cloud:
"Carly Fiorina cries herself to sleep each night, Kirsten. I know someone who knows her husband."
THAT Carly -- once quoted as stating, "My gender is interesting, but it is not the subject of the story here," and THAT husband whom Carly once described as, "...a huge source of support...a rock for me. To describe him as a stay-at-home husband is not fair to him."
I slept on Sir Far-Cry-From-Lancelot's proclamation like an unmade bare mattress bed all night.
This morning I remain equally melancholy and pensive. Is it true or rumor? If Carly cries...is it because she is alone, because the world shamelessly thwarts women with aspirations, because a hard edge is difficult to maintain behind closed doors? And if it is false, why the distain associated with the rumor? What kind of man would publicly disclose his wife cries herself to sleep and why? Is it true or rumor? What kind of man would repeat it....to another woman, insinuating she should keep her career aspirations in check and question her goals?
I picture myself sitting with Carly on the corner of her bed. Telling her that I too often feel utterly alone in spite of my directed ambition. That I know what it is like to be painfully misunderstood and disliked by both men and women. That there is no shame in crying when you begin bravely again. There is shame in feigning sensitivity or lack of emotion. I would concede that her challenge is far greater than mine -- that the magnifying glass is diminished for a single woman living solo with slivers of successes and failures that arrive unscheduled in spurts. In a marriage someone else bears witness.
A pillow with tears -- truth or rumor? If it is true, what kind of authentic life is that? If it is false, could it be that some "bad apple men...or women" are actively circulating circumvention (the warning: you will pay for your achievements with a feeling of isolation and expressing any emotion about that isolation is a clear sign of female fragility). And my thoughts dance to Gloria Steinem, Susan Faludi and Naomi Wolf and I wonder which camp they would fall into -- those that believe the tears to be true or those that cry rumor! with fervor? Where have we women come from? Where are we women going? And why has there STILL been no remarkable progress?
- 1 out of every 6 women has been raped or has been a victim of attempted rape in her lifetime.
- 81% of 10-year-old girls are afraid of being fat.
- According to a breaking new report from the U.S. Census, women who work full-time make 76 cents for every dollar men make. Among the ranks of high earners, such as chief executives, women make 55 cents on the dollar compared to men.
- Women represent over 60% of the total U.S. poverty population -- 20% of all women in the U.S. live below the poverty level.
- 51% of the U.S. population are women, yet only 13% of the members of the U.S. Senate and 14% of the members of the House of Representatives are women.
- Women held just 14% percent of all Fortune 500 board seats in 2003. Of the 500 companies, 54 had no women directors. Only 10% of the Fortune 500 companies have women holding at least one-quarter of their corporate officer positions.
- Women entrepreneurs earn 5% of venture funds.
- 1 in 3 women with MBA degrees are not working full-time (compared to just 5% of MBA-degreed men).
- Indeed, we live in a man's world where Jack Ryan merely made his wife "feel uncomfortable," when he forced her to go to sex clubs and have sex in open places.
Catalyst's survey this week found that business women aspire to great levels of achievement with equal amounts of desire as men to become CEO. However, women report enduring a set of cultural barriers to their advancement not experienced by men: gender-based stereotypes, exclusion from informal networks, lack of role models, and an inhospitable corporate culture. Having worked in both corporate America and in small business, I submit that these residual barriers are common irrespective of environment. They are faced by all women who muster momentum...doctors, lawyers, scientists, politicians, authors, executives, entrepreneurs, mothers, daughters, ministers, teachers, students....irrespective of mastery.
Last week's USA Today article and re:invention blog entry feed my inflammation. "Men are pressured to be sensitive," the article quips. AS WELL THEY SHOULD BE BECAUSE A LITTLE SENSITIVITY IS WHAT THE WORLD NEEDS.
Here in the U.S. and abroad. According to an article today in The Scotsman, the "New Man" is just a myth. More than 75% of men from Great Britain admit they subscribe to the old "treat them mean, keep them keen" adage in relationships with women. One in three said they would be uncomfortable with a female boss. The poll claims that contrary to reports, men remain reluctant to discuss their emotions. 54% believe they should be the main bread winner in their relationships and 20% responded that they never cry.
Success spells loneliness for women and men; the difference is that women usually have much more to give -- sentimentally and emotionally -- than men. Gloria, a wise beyond her years 22 year old student from Italy, recently shared her perspective with me in an email: "I don't know if it depends on nature or culture. However, being lonely for a woman implies the impossibility/incapacity to share all her complex universe of emotions with others. Every successful person suffers from this, but women, in particular, are required to disguise their feelings to be perceived as credible." Gloria's words offer both comfort and call to action.
I would brave the world blindly through unveiled tears -- if I could change the world. What if all women were to cry at once -- just one moment of one day -- all perfectly timed. Cry the world to wake the world. Tears could be our trojan horse. Let me say that again with more emphasis: TEARS COULD BE OUR TROJAN HORSE. It would drive those men who remain insensitive and insincere insane and we would finally claim our power. They would finally be the ones who were not enough.....
Just a thought from a passionate, ambitious, intelligent, analytical, rational, and emotional woman. A woman who is tired of hearing "you are too much" or "you are not enough." Here's to good women finding the good men who deserve them.
Wednesday, June 23, 2004
RE: is Isaac really Fair? A customer lifetime value cheatsheet for small biz from a 19 year old.
Fair Isaac Corp. a credit rating agency and provider of customer creative analytics, introduced the new Fair Isaac Qualify marketing score on Monday, designed to increase the lifetime value of customers gained through direct marketing campaigns. The Qualify score helps companies cut costs of marketing to consumers who are unlikely to become lifetime customers and increase the lifetime value of booked customers by 40% or more. Fair Issac can predict the future. Big news for big retailers.
Want a quicker, easier way to calculate the lifetime value of your customers -- i.e., the measure of expected value of profit to your business derived from your customer relationships and their future purchases (discounted to the present). Click HERE for a nifty worksheet for EMERGING BUSINESSES.
Who created the worksheet? Ryan Allis, a 19-year old business and economics whiz at the University of North Carolina. In addition to designing spreadsheets with bells and whistles, Ryan is the founder of The Entrepreneurs Coalition, a non-profit organization dedicated to encouraging entrepreneurship internationally, the founder of www.zeromillion.com, an online community of and resource for entrepreneurs and businesspeople, and CEO and President of Virante, Inc. a North Carolina based software development and e-business consulting firm. DID I MENTION HANDSOME RYAN IS A MERE 19 YEARS OLD? Excuse me while I have myself a Demi Moore/Ashton Kutcher moment.
Makes ya want to work harder now, doesn't it?
Two more must-read articles on Customer Lifetime Value:
1. How to Calculate Lifetime Customer Value, from ClickZ for Marketing Experts.
2. Four Steps to Increasing the Lifetime Value of Your Customers, from Ryan himself.
Tuesday, June 22, 2004
RE: the secrets behind the "BIG ORDER BIG BREAK."
New entrepreneurs, not unlike aspiring actors and actresses, dream of their big break. A "Big Order Big Break." Sometimes it drops in your lap via fate. Sometimes it takes years of sweat equity and karmic debt. But you yearn for it to come. A simple but inspiring "Big Order Big Break" story appears in today's Boston Globe. Eight years ago, Nancy Engel went to dinner with her mentor, and after a speech by the former ambassador from Austria, Nancy's mentor helped her muster up the chutzpah to present the ambassador with a catalog for her mail-order business. Five months later, her fax machine began spewing pages and pages from the ambassador. It was the ambassador's list of acquaintances, and she wanted Nancy to send gifts to all of them. Encouraged by her mentor, Nancy wrote to Family Circle magazine, and the story published about her generated 1,200 letters, each with money for a catalog. 
The "Big Order Big Break" lessons here for the rest of us:
#1 go event grazing...good luck gravitates to those who go get it.
#2 sashay like a show dog...work a room and seize the opportunities presented to you.
#3 hang with people who give a hoot about you and others and give you a delicate kick in the caboose (Nancy's mentor helped her seize the moment and the best mentors give willingly and push firmly).
#4 move decisively and quickly on a perceived opportunity (don't spend too much time deliberating or the moment will pass you by -- the ambassador will leave the building).
#5 be patient for results and have faith (it took 5 months before Nancy's "Big Order Big Break" Fax came in).
#6 promote your successes...and it will extend your good fortune.
and last but not least...#7 Your sailboat is sunk if the "Big Order Big Break" is your only conscious plan. Daily biz dev and marketing is a must. Steady as she goes planning will increase your long-term success potential.
Other big break buzz today? A new site from OPEN: The Small Business Network from American Express, designed by Digitas, American Express' online agency. The goal of the site is to promote a number of their emerging business owners -- 5 Growing Businesses Making Things Happen.
My review? A good start. A poll. Some streaming video. A message board. Needs a bit more WHIZ BANG FLAVOR. Wish we could submit a request to have all monthly Am Ex expenses "pardoned." Click here for "waived monthly balance." I know, I know, I'm dreaming.....
Share your "Big Order Big Break" tips via kind comments today!
Monday, June 21, 2004
RE: I have mixed feelings - a thump on the head or a quote of the week?
As quoted in today's provocative USA Today article, "Cannes Reflects Women's Journey in Marketing":
"I'm very interested in marketing to men, because it's one of the more difficult things to figure out. Men are asked from the time they're born to the time they're 14 to be tough. Then when they're 14, they're asked to be sensitive. It's important to recognize the mixed messages men have."
- Lee Ann Daly, executive vice president of marketing at ESPN, mastermind behind the zany sports brand and its award-winning ads.
Does Lee Ann intend to imply that women aren't complex or that they don't face equally taxing demands? Surely not?
P.S. A big thanks to Cool News for including The Venture Funding for Women Entrepreneurs Report in today's Extra Texture! The Inc. article appears under the headline: VC Gender Gap. A big thanks to Inc. for the original article!
Thursday, June 17, 2004
RE: Want to Work with Women Entrepreneurs? Don't Tick 'Em Off, Study Says....
According to a new study released this week by Amdocs, women are less tolerant of bad customer service than men. I know this to be true. On a recent date, I was "unseated" at a local Chicago restaurant during dinner. My date was perfectly fine with the host's conciliatory offer of a free glass of wine. I was not, and decided to leave the restaurant (for the record, my very handsome date and I were "unseated" for a Sun Times sports writer and the restaurant is located on Randolph Street, to the left of Blackbird). Why was I discontented? I took clients there with great regularity, they bill themselves as first come first serve, the restaurant was small enough so everybody noticed, and I was wearing my very best Jimmy Choos!
The Amdocs study surveyed 1000 men and women with questions regarding customer service operations in the telecommunications, cable, banking, and retail industries. In the survey, 61% of all women said they'd take off after no more than two bad experiences, compared to 54% of the male respondents. The men seemed willing to forgive--at least to a point: 39% of them, as opposed to 32% of women, said it would take as many as five negative interactions to make them leave.
It only took me one time to balk.
Want some rules of good customer service? Click HERE for an exhaustive list from MIT.
Tuesday, June 15, 2004
RE: we can talk about shoes, sex, business plans, MROI, panty liners...why not failure?
They say one of the keys to success for an entrepreneur (be they woman or man) is infallible faith and self-confidence. It stands to reason that faith and confidence can help you achieve ANY goal. Without unshakeable belief in your ability to succeed, you are merely on the road to failure. We all know the battle cry of every entrepreneur is "failure is not an option."
Now I don't fear failure. I demand second chances. And it frustrates me to think we women may inhibit our ability to succeed because we fail to have faith.
According to a new article in today's WSJ, women, while generally clear about their financial goals, are not confident that they will achieve them. A full 50% expressed a lack of confidence that they will ever achieve their personal financial goals. Only 1 in 10 say they will "definitely" follow through with goals, such as drafting a formal financial plan or opening up an individual retirement account. The WSJ study is not the first to earmark this lack of women's fiscal faith. IHateFinancialPlanning.com, a Web site geared to the millions of Americans who dread or hate financial planning, reports that 56 percent of women don't feel confident that they can make good financial decisions. The recent National City Study about women and credit reported that 26% of all women business owners do not pursue financing because they believe that they would not qualify for credit.
Pump up your volume of faith, gals! Start with faith, and every action you take will be a positive one. It may take time: you may actually need to listen to Suze Orman (the personal finance guru on t.v.) or read to build your financial acumen. Do the right things on a day to day basis and you will be on the right path.
Went traipsing for other traits that guarantee business failure. Found this nifty article titled, "How to Commit Business Suicide" on MSN Groups. A great read for those of you who are passionate about digging your own business grave. The short list:
1. Ignore your own strengths and weaknesses
2. Stop learning, reading, listening altogether.
3. Believe that you can succeed for free without sweat equity.
4. Try to get before you give.
5. Fail to set goals and measure results.
6. Forget about focusing.
7. Fail to change with changing circumstances.
8. Try something once and then quit.
9. Consider yourself to be more important than your customers.
10. Sit back and wait for "it" to happen.
11. Listen to other people's negative words.
12. Don't believe in your ability to succeed and let every feeling of discouragement prey upon you.
A good list. I suggest we add just 6 more:
13. Fail to be yourself.
14. Cower from or stifle what you value as a woman.
15. Fail to delegate (if even on an audit basis)
16. Forget about debt, equity, or lines of credit.
17. Forgo aggressive lead generation.
18. Buy the beautiful shoes, gaze at them each day on your shelf, and never wear them for fear of ruining them.
Feel free to add your personal "fast forward to failure" favorites by clicking the Share Your Kind Thoughts Link below!
Monday, June 14, 2004
RE: Texas Women Ventures Fund - is that a bulge in your pocketbook or are you just glad to see me?
Texas LUVS women. News this a.m. about the Texas Women Ventures Fund (TWVF). Hero and business legend Ray Hunt, through Hunt Equities, has commited a $2 million investment in the fund. Hunt's commitment along with the $3.2 million raised from charter investors gives TWVF the required capital to break escrow and complete its application to become a Small Business Investment Corporation (SBIC). In TWVF's first round of fundraising, more than 40 charter investors (primarily women) committed more than $3 million. Women who opened their pocketbooks? Caren Prothro, a noted Metroplex philanthropist and widow of Dallas Semiconductor CEO Vin Prothro, and WFAA-TV (Channel 8) anchor Gloria Campos.
Back on March 12, re:invention's blog reported that Texan women entrepreneurs were rallying for the Texas Womens Ventures Fund with a goal of raising $7M. Appears they are just $2M shy of their initial goal.
Looking for other women-dedicated VC funds? The Women's Growth Capital Fund, Isabella Capital, Inroads Capital, Ark Capital Management Fund. Or the 8 VC firms that invested in 3 or more women led businesses in 2003: Advanced Technology Ventures, Anthem Capital, Lightspeed Venture Partners, Mobius Venture Capital, New Enterprise Associates, ProQuest Investments, Vanguard Ventures, Versant Ventures -- per the Venture Funding for Women Entrepreneurs Report recently released by Growthink Research and re:invention.
Hot on the heels of this week's Venture Funding for Women Entrepreneurs Report? More good news about women entrepreneurs and equity financing. The first national study on women angel investing, "Women with Wings," will be released in late summer 2004 under the sponsorship of the Kauffman Foundation and the authorship of Dr. Jeffrey Sohl, the Center for Venture Research at the University of New Hampshire.
Friday, June 11, 2004
RE: a call for your stories to inspire other women entrepreneurs
Yes, you heard it here yesterday. I'm hard at work on my first book for Women Entrepreneurs and pitching a show for t.v. We want to showcase women entrepreneurs (both emerging and established), your unique perspectives, and your amazing stories. Your highs, your lows, your biggest challenges, your best marketing secrets, your tips for growing your business against all odds. Your experience makes you an inspirational teacher and we want to share your story.
Send your stories to: stories@reinventioninc.com. Please include your name, your business name, your city, and contact information (email and phone) along with your story!
Thank you in advance for sending your victories and successes. Collectively, we can send a message that women understand the importance of sharing before taking, and are willing to help other women hunt (generate business leads) and nest (feel a sense of community). No deadline and no page length restrictions -- keep 'em coming and be as forthcoming as you like...
Thursday, June 10, 2004
RE: nothing like a cup of tea and a good book (from NAWBO)
I've slowly been working on penning my first book (Women Entrepreneurs: Build Your Business By Besting & Borrowing from the Big Boys™). If you simply can't wait and need good info now, The National Association of Women Business Owners (NAWBO) just released their first book titled "Taking an Idea to Market: How to Turn Your Vision into a Successful Business Venture."
"Taking An Idea to Market" explores market research, business plan writing, financing, copyrighting, and incorporation told through narrative, personal stories and case studies. The book is priced at at $19.95, with 40 percent discounts available to NAWBO members. Expect a three business-book series with the next 2 books out this Fall. To order the book, call 1-800-55-NAWBO (it won't be available for retail sale).
Read MORE.
Wednesday, June 09, 2004
RE: Power - A Women's Networking Event That Didn't Invite re:invention
"I've been involved in women's issues for over 35 years, and this is definitely a new event. You have women who are in high levels of business, startups, white women, Hispanic women, black women, Asian women and they're interacting in a way that they haven't before." -Hedy Ratner, co-president of the Women's Business Development Center.
What event is Hedy raving about? Power: Opening Doors for Women. The event led by the Women's Networking Comunity held on May 27th drew women from various disciplines, generations and educational backgrounds for the purpose of building relationships and increasing networking opportunities. Today's Chicago Tribune article gave the event a thumbs up. 
The irony sometimes about Chicago networking? re:invention - a marketing consulting company dedicated to women-led businesses offering brand strategy, retail strategy, and all phases of marketing, promotion and public relations via a nationwide network of women associates - didn't receive an invitation.
P.S. I'll be the guest on Entrepreneur Magazine Radio (the worldwide leader in Internet talk) this Friday at 9:40 a.m. PST, speaking about women entrepreneurs and "besting and borrowing from the big boys." Kindly invite you to tune in!
Tuesday, June 08, 2004
RE: an emotional moment at re:invention
I am going to pause a moment today to reflect on an issue riddled with emotion. In fact, my eyes get misty when I begin to think of how important this issue is to every inch of my well being. And this issue is...pricing. Bet you were thinking I was gonna say something else!
In today's Building Brands e-newsletter (always a great read!), editor Colin Bates wrestles with the concept of pricing strategy. He compares 2 Hong Kong design firms. One charges about 5 times as much as the other, and is the busier of the two. He then references a client whose discount pricing strategy communicated confidence during the relaunch of their brand. Finally, he explores WalMart's "always low prices" strategy as an example of a company using pricing to deliver their "brand promise." Colin's conclusion? Pricing should be set in the context of brand strategy as well as more operational requirements.
Makes a gal wonder: in spite of all the heavy task work with operational considerations and margin analysis, perhaps it really is true that there are no consistent rules on pricing. Perhaps it is all about pricing as you like, telling a strong story about why you did it, doing good work (or selling good stuff) and seeing what customers/consumers think. That goes against the grain of traditional pricing strategy (where's the price elasticity, the ceiling price forecasting, all the other intellectual stuff they teach ya in B-School). Other experts weigh in on small business pricing:
- Darrell Zahorsky's pricing strategy overview on About.com suggests: "The pricing strategy of your small business can ultimately determine your fate. Leave the price-cutting and price wars to big business. Small businesses with solid pricing strategies can escape...low price position."
- Wasn't it either Rockefeller or Getty who once said: "I'd rather make a penny off a million people than a dollar off of 100."
- WSJ Startup Journal suggests the best approach to pricing is to make your pricing a NON-ISSUE.
- Inc. Magazine suggests small business owners carve out a niche, work smarter not cheaper, focus on value, target the right customers who will pay more for better quality, and build customer loyalty to justify price.
K.O.'s kibbles: once you've met your margins -- a finger cross, a coin toss and posturing as an iconoclast might just prove to be key elements of small business pricing strategy. My Duke MBA profs are likely wincing at their desks reading this blog entry this morning (Hi Professor Bettman, yes I'm being facetitious!) What do re:invention blog readers think? Share your kind thoughts below!
p.s. More emotional moments yesterday. We were awarded "honorable mention" in Marketing Sherpa's Best Small Business Blog Awards. We were listed as the Best Marketing Blog by Web Digest for Marketers. And if that wasn't enough, re:invention also received 6 separate mentions in CIO Magazine's article on Blogging for Profit. Thank you for the support, opportunities and recognition (y'all are making this gal blush!). Monday was a darn fine day.
Monday, June 07, 2004
RE: where women grow like beanstalks
If it weren't for friend and fellow blogger, Barry Moltz, I may have missed this week's Fortune Small Business article about women-led business growth. 
The article lists the states boasting the most robust growth for women-owned firms. Illinois doesn't make the list (sigh!).
The Top 10 Growth States:
Nevada 48.2%
Utah 34.7%
Georgia 32.1%
Arizona 30.5%
North Carolina 29.3%
Florida 28.7%
Idaho 28.2%
South Carolina 28.0%
Tennessee 27.9%
Colorado 26.8%
For comparison purposes, in the re:invention and Growthink Research "Venture Funding for Women Entrepreneurs Report", more than one-third of VC funding in 2003 went to women-led ventures in the Bay Area (the Bay Area also leads male-led company VC investments). The Bay Area and New England accounted for over 59% of the funding for women-led ventures. The Northeast (NY, NJ, and Pennsylvania) was a distant third (7.4%). Clearly, VCs are not tapping into the rich resources in these 10 high growth states. Sadly, it could be because the businesses being started are not pursuing the necessary credit, debt, attorney services, or business scaling strategies that build interest & long-term value for VCs.
Friday, June 04, 2004
RE: Friday Fry with Butterfly Herders, Forbes, & VCs
According to an article in Forbes magazine out today, Guy Kawasaki (chief executive of Garage Technology Ventures, a VC investment bank for tech firms) suggests that there are 2 kinds of VCs. Those that will invest in you and those that won't. Reminds me of the Wizard of Oz when Dorothy is asked, "are you a good witch or a bad witch?" Guy suggests you ask yourself 4 things before you stalk that VC:
1.Are you in the right geographic region for the VC?
2.Is your company in the right stage? Some VCs want proven companies that already have revenue. Others will take a flier with dropouts sketching out business plans on the back of envelopes.
3.Are you in a sector that matches the VC's interest?
4.Do you like the VC partner that you're dealing with?
No offense to Guy, but I think the questions are entirely different for women entrepreneurs. Yesterday we began contacting media about our new "Venture Funding for Women Entrepreneurs Report" compiled by Growthink Research in partnership with re:invention. Growthink Research's venture capital funding research reports and analysis have been cited by hundreds of newspapers and business journals. reinvention inc. is a marketing consulting company dedicated to women-led businesses. Growthink Research and re:invention, inc. - makes for a perfect partnership. Late last night Jeffrey Nolan of SAP Ventures (an amazing mentor and champion for women entrepreneurs) and I were exchanging emails about Report findings. Although we know from previous stories that women and venture capitalists aren't connecting, this Report explores specific details about the gap between male-led and women-led VC funded companies. Much more detail in the 400-Page Report to be available at www.growthinkresearch.com. A glimpse of Report details here for you...
* More than $19 billion of venture capital was invested in 1,860 private U.S. based companies by 1,750+ investors in 2003.
* Women headed 4.5 percent of all funded firms and received 4.2 percent of capital. This amounts to 84 women-led companies in the U.S., raising $783.8 million.
* A total of 217 investors provided venture capital to these privately held women-led companies in 2003. 8 VC firms invested in 3 or more women-led firms.
* Women-led companies in the healthcare sector dominated all women-led firms receiving funding (44%) and received more than their fair share (55%) of funds. The biggest gaps between male-led and women-led firms are in Connectivity and Healthcare sectors.
* Women-led firms raised more than 10% of the total dollars invested in the following subsectors: Agricultural Biotechnology (17.5%), HR software (14.2%), imaging technologies (14.1%), and e-mail/messaging software (11.5%).
A breakdown of women-led funded companies?
Healthcare (44% of all funded women-led cos., 55% of total funding to women-led cos.)
Business (30%, 21% respectively)
Connectivity (14%, 17%)
E-Content and Commerce (8%, 5%)
Other (4%, 2%).
Compared to male-led funded companies?
Healthcare (24% of all funded male-led cos., 30% of total funding to male-led cos.)
Business (29%, 21% respectively)
Connectivity (32%, 37%)
E-Content and Commerce (6%, 5%)
Other (9%, 8%).
Note: The Healthcare sector included biotech, pharmaceuticals, medical devices, diagnostic/patient care, medical software and services. The Connectivity sector included networking, semiconductors, broadband, teleco, and wireless.
Instead of bemoaning this information as yet another blow to women, re:invention and Growthink Research believe we should be asking where do we go from here? We need to cultivate programs that help VCs scale their business models and identify new high potential women entrepreneurs. Perhaps the best place to start is to (1) ask those progressive minded VC firms how they identified three or more potential women-led investments (2) ask VC funded women-led company CEOs how they made it on venture capitalist radar screens (3) finally, we need to connect with leading women VCs (like Heidi Roizen of Mobius Venture Capital, one of the "butterfly herders" touting a progressive tagline - "Venture Capital with the Mentor Capital Approach") to determine how women executives can stand out when raising startup capital.
p.s. No new updates on re:invention's Iron Jawed Angels war waging with google. Very amused that we made Jeff Nolan's blog news briefs. As Jeff points out, "I'm on Google's bad girl list." That'll teach me to mess with Sergey and Larry, who by the way continue to show absolutely no regard for authority.
Thursday, June 03, 2004
RE: the "Iron Jawed Angels" War Wages On With Google (roar women roar).
A friend of mine called from Kentucky. Alas, she saw me on a FUGITIVE WANTED poster in the U.S Post Office. Appears google is really serious about this matter. google threatened to turn off ad feeds to re:invention again today. If you are just joining us today for the first time, please read yesterday's blog entry about our war with google.
An excerpt from TODAY'S email from carrie at google reads:
"Although we appreciate your opinion and feedback on our program policies very much, actions such as this are simply not tolerated by Google..."
Umm. OK mom. I mean, Carrie, Woman Warden of Google. Please don't force feed me any soup -- you can't make me eat it. If you missed HBO's Iron Jawed Angels special film, this analogy may be lost on you.
Meanwhile, the June edition of Entrepreneur magazine contains a great article written by several staff reporters and one of my favorite freelancers, Joanne Cleaver. "Woman of The Year" highlights the growing trend of women entrepreneurs. The best part of the article, other than former savvy re:invention client, ComfortCake, being heralded for their success? This nifty How To Win At Business checklist:
1. Check your ego at the door.
2. The harder you work, the luckier you get.
3. Keep your eye on the prize (sadly, not the free prize, Seth).
4. Think positive.
5. Proactivity prevails.
6. Build a database.
7. Offer multiple sales channels.
8. Contact customers often.
9. Get customer feedback.
10. Create a reward program.
11. Join forces.
12. Find financing and look for Open Doors (such as OPEN: amex's small business network).
Tuesday, June 01, 2004
RE: The question is, "what's good about google?????"
Appears re:invention can't call attention to our google ads. Google believes if we call attention to our google ads we could artificially inflate advertisers' exposure. Does it hurt google advertisers if we ask re:invention readers to pay attention to our posted google ads? Fact is, most people instinctively pass by ads. But if prompted, it may initiate an interest that was already there. While it may slightly increase advertiser costs, it could score them a sale that wouldn't have happened if we didn't call attention to the ad. More importantly, google advertisers pay less for more results. Because of google's adwords discounter and dynamic ranking system, an advertiser's actual cost-per-click is often less than their maximum CPC (what they are willing to spend per click) and often decreases when their ads start to perform better.
Personally, I also don't believe people will click just because they read our simple disclosure above the ads. If my power of persuasion were that great, I would be married by now (right, Stephen?). We also clearly informed readers: "clicking is at your discretion."
Read google's letter to re:invention below. Today we conceded & changed our google ad headline (read the new one for yourself on our right navigation bar). Guess google ad days are numbered on re:invention's site....
From: Google AdSense [mailto:adsense-support@google.com]
Sent: Tuesday, June 01, 2004 3:05 PM
To: kirsten - reinvention, inc.
Subject: Re:Google AdSense - Program Policies
Hello Kirsten,
Previously, we informed you that your account violated the Google AdSense program policies (https://www.google.com/adsense/policies) and Terms and Conditions (https://www.google.com/adsense/terms). Our specialists have found that your account continues to violate these policies.
We've noticed that you have altered the language above the Google ads on your site since our last warning. We appreciate your efforts, however, the new language continues to draw undue attention to the Google ads you're serving through AdSense. This language may encourage your users to click on the Google AdWords ads that you're serving through AdSense. As we explained previously, if users click on ads without the intention of converting to customers, advertiser costs can be artificially inflated. Therefore, such activity is in violation of our program policies: https://www.google.com/adsense/policies.
Please remove the following language from your website:
"google says we can't ask you to click on the ads below. clicking is at your discretion. for the record, we donate all proceeds earned by your clicking on these ads to women entrepreneurs."
We kindly advise that you review our earlier email and our posted policies and Terms and Conditions to ensure that your account remains in compliance with our guidelines. After you've made these changes, please respond to this email so we can review your account again. If you violate our program policies in the future, we may discontinue your participation in Google AdSense.
Sincerely,
Carrie
The Google Team
WANT TO READ MORE ABOUT THE DENOUEMENT OF RE:INVENTION'S WAR WITH GOOGLE?
Check out these entries:
- War Wages On With Google
RE: BusinessWeek, EBay and Mompreneurs (what about hivin' and jivin'?)
Are you a mompreneur? Does this week's BusinessWeek article about mompreneurs have you nodding your head? Do your fingers just itch for the keyboard and EBay? K.O. knows Ebayin' from your kitchen can be a lonely life's mission. Might have you hankerin' for a little hivin', jivin', and networkin'. Could this be just the thing? Entertain With Ease - www.entertainwithease.com
Entertain with Ease (apparently led by another visionary chick Jodi Ablin) is scouting under the radar for consultants to host at-home entertaining food parties. You get to connect with friends & food & swap ideas about how to be a better host when you entertain. You get to sample recipes made with specialty foods (apricot sesame sauce, champagne nibbles, sun-dried tomato dip mix) and preview decorative tableware. And oh - get this - you don't have to leave home (you invite your friends over) and you simply sell what you like. Makes it easier to entertain the way you would like.
For those of you marketers out there, Entertain with Ease taps into the recent trend of "hivin." It is no longer about "cocooning." According to Yankelovich Monitor, Americans are connecting with each other through the home by "hivin' or hiving." Borrowing from the metaphor of a beehive (abuzz with activity), Yankelovich defines hiving as engagement, interaction, and connection with the outside environment. A hive is a home designed to open out and facilitate connection. Through hiving, home is the best place to reestablish relationships and connect with others. Home is command central for this new lifestyle.
Appears Entertain with Ease is keeping the company on the downlow (you need to get an invitation or a referral to join???). How the heck do I sign up?
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