SM: About a year ago, I started a business focusing on the luxury segment of Italian handcrafted products. The name of this project or rather, brand is Edizione Limitata, which was developed after a careful examination of the luxury goods market. This segment has been on an upward swing in recent years and continues to steadily grow due to consumer demand. The opening of the Chinese and Indian markets has played a significant role in this growth, and these markets are positioned for a continued phase of strong development. It is important to note that the market for luxury goods was one of only a few to have successfully escaped the crisis in Europe after the introduction of the Euro (2003).

To make a long story short, we found two key themes upon analyzing the market:

1. There is a significant importance of and demand for products that carry the “made in Italy” trademark, synonymous with luxury and high quality.
2. There is a necessity to maintain the handmade aspect of the goods within the luxury sector.

It was apparent that we needed to follow the same path that the firms involved in this project had been following for years: build a respected brand by offering a range of goods “made to measure” and with a better price-quality ratio. We were at an immediate advantage because these strengths had already been acquired – but not exploited. Many small Italian firms who specialize in the production of high quality handcrafted goods are forced to invest the better part of their incomes in product development, not marketing. This has placed them at a disadvantage when competing with the larger luxury brands.

All the firms structured under Edizione Limitata operate within precise criteria. Their products must be 100 percent “made in Italy” with no materials or goods sourced from other countries. Their products must be modern from a technical point-of-view – produced and processed under the highest of standards. In the end these are products “made with love” but also products that meet the needs and wants of today’s discerning customer. These entrepreneurs would never sacrifice respect and quality for commercial exploitation. However, harnessing the power of a cooperative group, they are able to tap into opportunities not previously available to them operating as sole entities.

The philosophy of Edizione Limitata is to uphold and protect the original “made in Italy”, value proposition. Far too often firms sell-out – placing the attention on a product’s image rather than its quality.

What have been some of your greatest challenges as an entrepreneur?

SM: One of my greatest challenges has been to bring together different entrepreneurs who are accustomed to working on their own, not in a group or on a team. Working as a team involves a common purpose and not following an individual interest. The firms which produce for Edizione Limitata have agreed to work together after many discussions and meetings, where I explained to them the opportunities they could harness working in collaboration with others as opposed to alone. Another challenge was explaining to potential customers that real luxury isn’t always found in highly-branded products; however, they must be equivalent to the high quality of these products.

Did you write a business plan?

SM: Yes, I wrote a business plan after a careful survey of the market for luxury goods and after having pinpointed some of the existing strengths and weaknesses.

What are some resources that you utilized (on and offline) during your start-up period and beyond?

SM: During the company’s start-up period I utilized the already acquired knowledge and skills of the entrepreneurs involved in Edizione Limitata, such as the solid experience of the President of Visconti, which has operated for more than 30 years in the luxury fountain pen market. I also placed my confidence in the company’s Web site, our various catalogues and the organization of key events – organized and brought about by our brand image director, who has significant experience in this market.

What advice can you give others looking to start their own businesses?

SM: For those looking to start their own businesses, I would say to them be persistent, proud and always on the lookout for new and original ideas, in order to remain visible among the thousand of ideas being brought to life every day by other entrepreneurs.

What’s next for you?

SM: I would like to grow the brands’ range, which can be achieved by opening branded shops both in Italy and in other countries. This would greatly increase brand value and offer opportunities to export the true “made in Italy” trademark abroad.

Send one of those shops over here, Sergio! There’s nothing like handcrafted Italian products.

Here’s what’s involved:

Approximate Start-Up Costs: $5,000 or under (cost of acquiring (and dry cleaning) initial stock of 35 dresses at $50/each), e-commerce enabled Web site (can be done via eLance or Guru for under $2,000), telephone system, fax machine, packaging supplies, business cards and miscellaneous supplies)

Potential Names: Second Time Charm, BrideStyle, Something Borrowed…

Barriers to Entry: Existing bricks retailers, eBay and other online auction sites, building brand awareness, quickly finding appropriate inventory…

Once your business is off the ground, you can start adding other attire such as brides maids dress, tuxedos, shoes and so on.

Please tell us about your start-up UNVOGUE. What does it mean to be UNVOGUE? And how can one achieve this status?

TP: UNVOGUE is an interactive online fashion magazine which caters to a wide array of individuals across the globe. Although our core demographic is male/female teens and young adults, people of all ages can log on and find the magazine both relatable and entertaining. To be UNVOGUE is to be unconcerned with prevailing fashion or popularity. To be considered to be UNVOGUE is to be an individual who enjoys fashion for all of its creativity, beauty and humor. Someone who is UNVOGUE doesn’t stand for being dictated to by a magazine or anyone else for that matter, in order to be considered in style.

What have been some of your greatest challenges as an entrepreneur? How difficult it is to launch a new magazine?

TP: Some of the greatest challenges I’ve endured as an entrepreneur have been 1) Getting people to understand the concept of my magazine, until it was up and running and 2) raising capital to expand the magazine and keep it flourishing. I wouldn’t say it’s difficult to launch a magazine, but it definitely takes true passion, dedication, a supportive team and knowing what you want the magazine to represent.

Who are your target readers? Advertisers?

TP: Our target readers are middle-classed male/female teens and young adults (15-26 year olds), who prefer mixing luxury and mass-marketed items to create a stylish and personal look. Our reader is socially and economically conscious, while maintaining a sense of humor. We usually go after advertisers whom evoke a sense of positivity and fun throughout their brands, i.e. Mal Sirrah, Steve Madden, Marc by Marc Jacobs, etc.

Did you write a business plan? How did you fund the launch of your business?

TP: To be honest, we just recently put the finishing touches on our innovative business plan and are actively pursuing potential investors. Initially, we didn’t have one, as UNVOGUE was simply an idea I had and decided to put it into action. Though, I definitely recommend having a business plan for any start-up as it makes it much easier to present the company to potential investors. The launch of UNVOGUE was funded primarily through my personal bank account and volunteer work from people who truly believe in the magazine and what it represents.

What does the future hold for UNVOGUE?

TP: In the near future UNVOGUE plans to continue to provide innovative fashion, beauty and entertainment articles and pictorials. We also intend to launch an online boutique, daily blog and a new online component catering to music. UNVOGUE the magazine is just the beginning of what I envision for our brand’s future.

What advice can you give others looking to start their own businesses?

TP: The best advice I can give to someone starting their own business is to have a true passion and vision for what you are creating. Times will get tough, but know there is a brighter side to tough times and if you stick it out, you will get there.

If you had to start all over again, what are some things you would do differently?

TP: There isn’t much I’d do different, I am having the time of my life creating UNVOGUE and building a loyal brand following. I truly love what I do.

And it shows, Tyson! UNVOGUE is so… UNVOGUE! Congratulations on launching a truly inspiring brand…

Here is some important background information:

There are various types of online advertising including search and contextual, premium display, non-premium display and “other” (i.e. e-mail and classifieds). Although you can seek advertisers directly or utilize the services of brokers and other intermediaries, your best bet is to use an online ad network – which offers the most efficient route and very little work on your part. The Rubicon Project defines an ad network as: an entity that sells ad space to a network of buyers (advertisers) on behalf of a network of sellers (Web site publishers). Typically ad networks charge publishers a revenue share of between 35 and 50 percent; however, some programs go as high as 70 percent (in favor of publishers). Some of the most well-known online advertising networks are:

• Google Advertising Network (includes AdSense and AdWords)
• AOL’s Platform-A (includes Advertising.com)
• AdBrite
• Yahoo! Publisher Network
• ValueClick
• Specific Media
• Traffic Marketplace
• 24/7 Real Media
• Tribal Fusion
• Casale Media
• CPX Interactive
• Burst Media

Now if you’re wondering which network is the “best,” I can’t answer that. For some, Adsense is tops, while others achieve better revenues using ValueClick or AdBrite. This is something you will need to determine and tweak as you go.

Now how do you make money… Well, there are three types of pricing for ad networks (according to DeSilva + Phillips; Online Ad Networks: Monetizing the Long Tail; March 2008):

• Cost-Per-Thousand Impressions (CPM). Advertisers pay each time their ad is shown to a user.
• Cost-Per-Click (CPC). Advertisers pay when someone clicks on their ad.
• Cost-Per-Action (CPA). Advertisers pay an agreed amount when users buy goods and do other ‘actions’ such as subscribe to a service.

It is important to become familiar with each of these pricing schemes before making a decision on which ad network to go with. Do your research online and ask these networks lots of questions.

You’re also going to hear the term eCPM used a lot. This translates to effective cost-per-thousand impressions and is a great way to compare revenue across different channels and advertising programs. It is calculated by dividing total earnings by the number of impressions in thousands. Google Adsense gives this example on their site: If a publisher earned $180 from 45,000 impressions, the eCPM would equal $180/45, or $4.00.

Now for some, online advertising has a stigma associated with it - that it is unattractive and cheesy. It doesn’t have to be and today’s Internet users are used to seeing the various types of online ads that are served. Don’t be afraid to test the waters. You have nothing to lose and everything to gain.

Good luck!

Here’s more from our recent discussion:

How did La Mesa Verde evolve?

Pablo de la Rocha: La Mesa Verde emerged as a new concept – an entirely new way of producing and distributing content worldwide. We are built upon a network of highly qualified professionals from different fields of the production and distribution industries. This outsourced approach enables us to be incredibly agile and handle a wide range of projects.

What prompted you to leave your position with MTV to launch your own business? Was it worth the risk?

Pablo de la Rocha: MTV was a great place to learn about and develop a deep understanding of the entertainment business. However, the foundations of the music industry have changed dramatically in the past few years. This pushed me to launch my own company with a different approach – adaptable and flexible, keeping up with trends and changes. I believe business must change when consumer habits change. Leaving MTV… It was absolutely worth the risk.

What have been your greatest challenges as an entrepreneur?

Pablo de la Rocha: It was a challenge at first proving our value. After many years working for a well-known company, it’s not easy showing your capacity or value under your own structure. In the first year we were very fortunate to work with some of the best known companies in the sector including EMI Group, Sony BMG, FEMSA (Sol Beer, Tecate, etc.) and Springfield. We have maintained great relationships with these companies and continue to work with them on a regular basis.

How did you land your first major account?

Pablo de la Rocha: I could say we were in the right place at the right time. Timing had a lot to do with it.

What marketing techniques and programs do you use to reach your target markets?

Pablo de la Rocha: Online networking really worked and continues to work for us. Press releases both in major and specialized press helped us position ourselves in the marketplace. Also, in our particular industry, a good logo and on air look (look and field) means a lot.

What’s next for you and your business?

Pablo de la Rocha: We just entered into a major joint venture with a prominent agency (MindShare, GroupM). La Mesa Verde will develop their new entertainment division and create entertainment content for the bulk of their clients. This not only represents a great business relationship, but it also reveals a new way of looking at and understanding advertising.

How do you intend to grow La Mesa Verde?

Pablo de la Rocha: Stay tuned… www.lamesaverde.com.

You can be sure we will, Pablo. What a concept! Congratulations on its success!

I have reviewed countless business plans over the years, and can’t tell you the number of times I have seen this mistake – this tragic, business-killing blunder. Don’t exaggerate the size of your market! There are ways to estimate this critical piece of data; methods that enable you to produce reasonable and, more importantly, believable numbers.

Here are some steps to take before guessing who your customers are and how many of them exist (4 billion, sure.):

• Determine the geographical area or range (local, regional, national or global/international) that you will be able to effectively reach through your marketing efforts and sales channels (partners or authorized distributors). For example, an auto body shop in Readfield, Maine is not going to work on a car owned by Raphael – an exchange student studying in Munich, Germany. Likewise, a social networking site that exists solely on the Web won’t be confined by the boundaries of brick walls. Online businesses have the potential to tap into markets all around the world.

• Segment your market by lifestyle attributes and demographics (i.e. male, female, baby boomers, tweens, household income, employment status, etc.). If you’ve decided to market a line of junior-sized footballs, your target market might consist of boys, ages 5 to 13 living in suburban or rural areas of the United States (I said football, not soccer).

• Consider existing competition. Who are the market leaders? What is their market share? Maybe you’ve decided to launch an online auction site. Well, get ready to compete with eBay, a company who has built up a favorable reputation and loyal customer base.

• Define the barriers to entry such as existing competitors, start-up costs, etc. Will you be able to enter the market quickly and establish awareness in a relatively short timeframe? Or will it take considerable time to enter a market because there are a number of established players or the costs to launch your business are so significant, it will take some time to raise the necessary funds.

Keep in mind that no one expects you to get the numbers 100 percent correct. Forecasting the future of a start-up is a lot like looking into a crystal ball. Just make sure you follow the steps above and are able to defend your assumptions when questioned.

4 billion, that’s funny.

Wyland Galleries Hawaii: Although I had never heard of this venture, I discovered the company online through a simple search. According to an article published in Nation’s Business (US Chamber of Commerce), the success of the business is attributed to “timing.” It’s hard to believe, but Wyland Galleries was started during the recession of the late 1980s. The founder, Bill Wyland, comments that “He began in exactly the ‘wrong’ market. Times were bad. Other galleries were stopping their marketing and advertising.” He goes on to explain that, “There’s no better time to do business. Today, you couldn’t get the lease rents that I got.” Low rental rates, along with cheaper costs of goods and building supplies allowed Wyland to open a number of galleries in a relatively short timeframe. The business now includes a hotel and record label.

The F.C. Ziegler Co.: Now this is unique - a religious goods supplier that was started during the Great Depression, and has survived to this very day (by the grace of…never mind). The company was recently honored with restoring a 1938 chalice used by Pope Benedict XVI during a recent trip to the United States. The key to their success? One can only guess, but I would say that when things are gloomy, people often seek solitude in their faith.

Amazon and eBay: This post would not be complete without bringing up the dot-com bubble of the early 2000s. Only a few viable businesses would survive the fallout, including Amazon and eBay. These granddaddies of the Web look poised for the long haul.

So there are quite a few businesses going belly up – which is really bad for the economy. Regardless, I am completely convinced there is money to be made, so long as a concept and business model fits the current and future needs of its intended audiences.

What do you think? Is there money to be made as the dollar sinks and debts rise?

In your own words, what is Viddiction and where does it fit into the marketplace? What makes it unique? Target markets?

AK: Viddiction is a video sharing social network designed to be a place where people, not large companies or TV networks, can meet and share ideas, thoughts and opinions through moving images and sound. It is different because it is built around a profit sharing scheme. Right now it’s in the form of popularity point contests, but later I will actually share ad revenue with users in proportion with their contribution to traffic. My target market is universal, as I think that anybody can and should use whatever electronic means possible to communicate with the world. For the purposes of profit sharing, however, I am targeting the 14-29 American user market (there are numerous legal implications whenever you give money away).

What inspired you to launch the site and how have you funded its start-up?

AK: I was moved to start the site when I realized that YouTube owes every penny of its $1.5 billion sales price to the content that its users create and upload. They share money too, but not that much, and in doing so, they are failing to credit their most important employees (because as content providers, that is essentially what their users are). Now, of course, YouTube provides publicity and even fame to some, but if you look closely this number is small and is more and more dominated by big name users and legal entities instead of your regular Joe or Jane. I got the funding by making a well-timed investment last year.

What have been the greatest challenges?

AK: The greatest challenge is getting people to know the name and trust the system. Certain brands, like Google and Yahoo are forever burned into the public psyche. They are household names and are recognized everywhere. Getting to that point isn’t just hard; it’s a matter of luck and timing. If Viddiction reaches the status of a recognizable brand, my goal will have been achieved.

Do you consider yourself an entrepreneur?

AK: I do not know what I need to be to be considered entrepreneurial. I like business, get a thrill from the idea, the inspiration and enjoy a little risk. I have another endeavor moving forward in parallel to this [Viddiction].

What advice can you give other entrepreneurs looking to start their own businesses?

AK: My only suggestion is don’t be afraid of taking a well thought-out risk. Don’t be afraid to move on your ideas and never, ever, ever listen to the naysayers. People will discourage you at every turn. People who themselves bend under their fear and insecurity will try to force you to commiserate by giving up on your own dreams. Do not fall into this trap. Be careful but remember that small business is the only way that this nation, or any nation, will succeed in the long run. Independent people with their livelihoods staked on their ideas and sweat are the driving force behind any healthy economy, not giant sterile corporations. Also remember that so many of the big companies we know and love today started out as the idea of one or two people - people that were once small, scared and anonymous that went on to make a difference to millions, and, not to mention, grow rich in the process. If you have an idea that you feel needs to be born, make sure it is. The future rides on people like you. And who knows…maybe one day you’ll employ some of those very naysayers that once tried to stop you from realizing your dreams.

I’ve used Viddiction.com and really enjoy how user-friendly, interactive and entertaining the site is. My teens have even made the switch from YouTube to this emerging video sharing site, because they “like how easy it is to upload and watch videos.”

Interested? Well hop on, upload your most compelling (or humorous or completely wacky) video and sign-up for Viddiction’s regular monthly Popularity Point competition. Prizes range from $50 to $500, with twenty people receiving $50.

Dream. Create. Transmit. Viddiction.

Social networking Web sites (i.e. Facebook, MySpace, LinkedIn, etc.) offer various ways for you to interact with others such as message boards, instant messaging, forums, blogs and so on. To get started, you need to identify those sites that best meet your needs and help you reach your intended audiences. For example, if you are selling online music downloads targeting the teen market – consider MySpace. But if you’re trying to connect with other small business owners, LinkedIn and Facebook would offer you more opportunities to reach entrepreneurs. Make sure to do your research. Wikipedia has a great list of social networking Web sites here.

Once you have pinpointed the best sites, your next step is to create a winning profile or bio page. Here is where you can tell a little bit about yourself and your business. One giant no-no… Never utilize a social network as an advertising or marketing platform – and for the love of Pete, don’t spam these sites! Start advertising your products or services on a forum thread or message board, and you’ll not only tick off community participants, but you’ll most likely get kicked off the site. Remember that you’re there to build one-on-one relationships with people, to gain market insight and to hopefully drive quality traffic to your site through minimal efforts (and without sounding like a salesperson).

Once you’ve set up your profile, including uploading a pic (very important), you’re ready to start building your network and getting out into the community. Start by searching for people you know. This is how viral marketing works. You tell someone, they tell someone and the message keeps spreading like a virus. Don’t forget to take part in the core activities of the site and continue to do so – whether that is answering questions on a Social Knowledge Web site like WikiAnswers (best Q&A site on the net!) or commenting on stories that have been submitted by other members of Social Bookmarking sites such as Reddit or Digg; act like a member of the community, not a marketer.

New social networks pop up daily, so you’ll have to keep an eye to the street and an ear to the Web – something like that – to stay one step ahead. Just remember not to sound or act like a salesperson, participate in what others are doing and give your fellow community participants props when they are deserved. Follow these simple guidelines and pretty soon everyone will have your virus!

http://wiki.answers.com/Q/What_are_the_steps_to_owning_your_own_insurance_agency

http://wiki.answers.com/Q/What_is_the_risk_involved_in_business_debt

http://wiki.answers.com/Q/How_effective_is_MySpace_as_a_small_business_marketing_tool

http://wiki.answers.com/Q/Why_is_liquidity_important_to_small_businesses

http://wiki.answers.com/Q/How_do_you_start_a_vehicle_salvage_yard

http://wiki.answers.com/Q/How_much_does_it_cost_to_open_a_new_tanning_salon

http://wiki.answers.com/Q/Where_can_you_buy_a_slush_cart_shaped_like_an_orange

Okay… the last one is a little bit out there. But an entrepreneur somewhere would sure appreciate an answer.