As we at KikScore roll into 2010, we are proud of everything we were able to accomplish in 2009.  We launched KikScore. (See Diary of a Start-Up I)  Our blog went live. People actually visited our site!  Actually a lot more than we expected and from some interesting parts of the world.  And we really took the big plunge into social media.  Simultaneously, we are constantly working on gathering feedback from our customers and making changes and enhancements based on that feedback.

So what is the issue facing us in 2010? One word – FOCUS – or better yet the challenge to focus.

We have a lot going on at KikScore.  For example, we are in the process of developing an exciting extension to the KikScore product that we hope to launch in the next 30 days, we are fixing and enhancing the KikScore product based on customer feedback,  we are dealing with customer service issues, we are in partnership discussions and we are redesigning our marketing site at www.kikscore.com. We also have multiple tracks of product enhancements that are being prioritized and slotted in for development. And this list is not even near exhaustive of what we have going on.

So as we began 2010, we took our heads out of the weeds and said its time to climb to that proverbial mountain at 30,000 feet so we could take a broader view of KikScore, our product, all of the activity and the daily grind so we could figure out what do we need to focus on.  In all honestly, this was probably the first time in a while where we did the “focus” analysis.  The reason is as a start-up, especially an early stage one, you keep focusing on getting your product out to the market. Once the product goes live, then you are just overwhelmed to some degree with enhancements, customer and market feedback, service issues etc that can test your start-up’s ability to focus.

So this is what we have begun to do and I would recommend that if you are a start-up you may want to do something similar. Also the key is to periodically update, measure and track progress of your focus against each of these items below.

1. Goals. As a team, set your near-term and long term goals. Near term can be 30-90 days.  Long term is 1-3 years.  Keep them in a place where the entire team can review them.

2. Activities. Then create a list of the activities that flow up to the goals.  Make sure every activity can be tied to the goals otherwise that activity should be eliminated.

3. Turbo Activities. From the list of activities try to determine which activities do you get the most out of and that with all things being equal get you closer to that goal at a faster rate.  I call these Turbo Activities because they can really turbocharge you to achieve your goals faster. So for example, we at KikScore recently uncovered an approach that may really help us with customer acquisition.  Customer Acquisition is a very important near and long term goal of ours and we have various activities that help us with customer acquisition. But this method stood out and so just this week we thought lets really focus our efforts using this method and see where that gets us for acquiring more customers.

4. Regular Update. As a startup works through these turbo activities and regular activities, while also dealing with new issues that come up each day, it is critical that the team on a regular and periodic basis assess where the business is at in regards to the goals.  As the activities, objectives and goals change over time, your start-ups focus may have to adapt and be flexible.  But while I say that, you must also be careful to not have the red herrings pop up and that push you to focus on the wrong things or to lose your focus.  This is a delicate dance that each start up needs to be careful to balance so they maintain the right focus to meet their goals.

5. Team Accountability.  Each team member needs to also dedicate themselves to keeping themselves honest and other team members true to focusing the start-up.  Without team members acting as a check for themselves and other team members, a start-up runs the risk of losing that focus. One of the ways to help ensure that team members are keeping each other focused is asking a simple question during internal discussions: Do you think that activity will get us closer to accomplishing one or more of our goals?

In the end, so much of focus for a start-up can be boiled down to the 80/20 rule.  So often 20% of your activities and work, will end up getting your startup 80% of the results that you need.  Remember this when you try to keep your focus to growing your start-up!

How do you keep your business focused?

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Financial markets have melted down, real estate industry has a faint heart beat, and Corporate America has been laying off people by hundreds of thousands each month.  People are concerned about job security and not spending any more on expensive trips or dinners.  Not an ideal recipe for an economy or starting a business.  Or is it? 

There is a saying that you should “never underestimate the US consumer” — that is especially true for consumption of food.  More specifically, it is true for consumption of pizza.  Pizza is on my mind for two reasons.  First, we are in full swing of the football season and it seems that every weekend I’m eating pizza and watching football each Sunday. Quick tangent — I’m loving the new Domino’s Pizza.  Throw in some Chicken Kickers with ESPN, and you’ve got a great little Sunday. 

The second reason for my focus on pizza is an article that I stumbled across in the USA Today.  It discusses the rise of entrepreneurs in the form of franchisee owners, with a particular focus on CiCis Pizza franchises.  I did a little research and found that in this recession, Dominos continues to grow (just an fyi, my hope is to praise Dominos enough to get some free pizza out of this blog posting).  The pizza business has only flurished in this environment.  There is also a profile in the WSJ this past week on California Pizza Kitchen — with their founders leaving the law as defense attorneys to create a pizza chain concept. 

As the numbers are showing, Americans love pizza.  It’s cheap and tasty, it’s also relatively easy to start a pizza shop.  Take these facts and couple it with all the successful individuals looking to start a business, and we may be facing a marinara-led growth out of this recession.  Or at least a free pizza coupon for me due to my sucking up to Dominos.

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By all accounts, the 2009 holiday sales numbers seem pretty strong.  In a recent post, TechCrunch highlighted that the recent comScore assessment of online sales this year.  It touted that the revenue was up,  compared to the 2008 holiday season, 5%.  As we have alluded to in earlier posts, it not necessarily an indication of overall health of the economy, as that growth is likely coming at the expense of Bricks and Mortar shopping.  In addition to a growing acceptance of eCommerce versus fighting the crowds at the mall, 2009 included another wildcard that likely built up the number — the massive snow storm that plagued the East Coast for most of the holiday season. 

No one is going to argue that 5% growth isn’t great — most companies, in this economic environment, would love to have that type of growth.  But a valuable lesson that I learned in business school – it’s pretty complicated concept — the bottom line is a better indicator of business health than the top line.  So, though revenue may be up, what’s the profitability look like for the 2009 holiday shopping season?  Were shoppers buying low margin items with that cost a lot to resell?  It seems that may be the case.  According to comScore, this holiday shopping season saw a lot of high price ticket items (with not a lot of room for mark-up) that were the big sellers this year.  In fact, consumer electronics saw a 20% increase in sales this year, with jewelry and watches also as strong items.

So the question I pose to all online sellers is this — did your profitability rise at the same rate as your revenue this season?

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As 2009 quickly winds down, we see “Best of 2009 Lists” pop up for everything from movies, books, songs and football games to name a few. This year being the end of a decade, we get the added benefit of a bunch of “Best of the Decade” lists.

As many of you know, we started this blog this fall. It has been a lot of fun and we have published a lot of content on many different issues relating to small business. It has also been interesting to learn on the fly as we began blogging to experiment with different styles, a variety of topics, some videos, interviews of other small businesses and stories about our KikScore product launch.  So narrowing down a list of my greatest hits of 2009 is not the easiest thing to do because we had so much fun putting together the posts on nearly a daily basis since the blog’s launch.

Well I have to make my picks and so here is my best of list for our 2009 KikScore blog posts.

1. A transparent look into a KikScore internal debate related to our product in Diary of a Tech Start-up: Disagreement Over Product Features.

2. A great practical piece on businesses picking smartphones in Choosing the Right Smartphone to Manage Your Business While You Arent in the Office.

3. A good two part list of top small business blogs in A Few Good Blogs: Our Go-To Small Business Blogs KikScore Likes Part 1 and Part 2.

4. Our first two small business interviews of Rick Shoop from Oregon Seafoods and Shiv Verma of Astro Swami.com.

5. One of my favorite’s of 2009 has to be the post on small business optimism where we drew the parallel of being optimistic with a spilled margarita titled: The Glass is Half Full Because the Other Half is On My Pants!

6. Ok, this one is a little selfish but my bonus pick for this list is the post that announced the introduction of our free KikScore service that helps online merchants demonstrate that they are trustworthy and reliable to online shoppers in: Sell Online? Signup For KikScore’s Free Beta Service.

Please tell us which post would make your top list of blogs.

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It’s the end of the year…a time for reflection and evaluation.  In this spirit, a few of us are going to highlight some of our favorite postings from the year.  Here are my favorite five postings we’ve done (I promise they won’t just be the ones I wrote):

1.  2009 Trends in ECommerce– Typical Raj posting, very informative and a great list of tools available for ecommerce businesses.

2.  Diary of a Tech Start Up: Idea to Soft Launch – Ok.  This is my post, but I like it because it starts our Diary series and it summarizes two years of our company.

3.  Making the Grade – Kristen’s first post and a really detailed view of what KikScore’s algorithm looks at when sizing up a business.

4.  A Few Good Blogs Part 1– A great list of blogs relating to ecommerce and small business.

5.  Brett Favre and Business – Despite the December let down, a got to love a post dedicated to the Minnesota Vikings’ quarterback.

That’s my list.  Feel free to let us know if you agree/disagree.

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Nearly all small businesses face a common challenge.  This challenge is demonstrating to potential customers that your small business is credible, trustworthy and has a track record of success and delivering products and services.  This challenge is typically derived from the fact that when someone gets to a small business website, they often do not have any indication whether they can trust that small business if the shopper wants to buy from that business.

Further complicating matters for small businesses online, is the constant threat of fraud and misuse of personal and financial information that weighs heavily on online users minds.  This fear of shoppers online is real and tangible.  In fact, a  Javelin Strategy & Research study found that the fear of identify theft and online shopping in general cost retailers over $21 billion in lost sales in 2008.

A June 2009 McAfee’s study showed that 92 percent of consumers are concerned about their security when shopping on new or unknown websites. Further, that study found that 63% of shoppers will not purchase from a web site that does not display a  security policy or other indications of trustworthiness.  A 2009 Verisign Security Report also found that nearly 50% of internet users avoid buying online due to concerns that their financial information will be stolen. The report also found that 83% of internet users want assurances that their information will be secure.

These concerns are getting the attention of all types of businesses, including industry giants like Microsoft.  Scott Charney, Microsoft’s Corporate Vice President of Trustworthy Computing, said at the 2009 RSA Security Conference that  “When [shoppers] visit Web sites, they don’t know if that Web site is to be trusted or not. For all of these reasons we need End-to-End Trust.”

Steps for Small Business to Demonstrate Trust

Shoppers concerns with buying online are well documented and the data supports those concerns. The good news is that there are some simple steps that all small businesses can take to demonstrate trust on their website to shoppers:

1. Management/Owner Information:  Be transparent to your shoppers. Prominently display under a Management tab the names of the owners of your business.   Make sure you add some background information on that manager/owner.  You can even include  it in story form.   This information gives shoppers comfort that there is a real person behind your business and makes it more personal.

2. Use Online Video to Virtually Introduce Yourself: A hot new trend is using online videos, through a YouTube clip, that introduces the management of your small business to shoppers and potential customers.  Here are some good tips in this prior post on using videos to build trust and credibility for your small business on your website.

3. Contact Information: Another way to build trust is to clearly and prominently display contact information including phone number and email addresses for customer service and management contacts.  By showing shoppers that they can contact you in case there are any product or service issues, you give them comfort that your business is accessible.

4. Return, Shipping, Customer Service & Data Policies: It is important that you clearly provide a list of your return, shipping, customer service and data protection policies.  It is important enough that small businesses should consider devoting a whole tab or area of their website where shoppers can visit and see what are the policies for your business.  Again the goal here should be the more information about these policies the better.

5. Trust and Validation Marks/Seals:  The 2009 Verisign Security Report found that 86% of online shoppers feel more confident about entering personal and financial information with sites that have some type of security indicators, such as trustmarks.   A few seals provides much of the information that is covered in this post through just one seal that resides on an online store’s website. Look for those seals.

6. Customer Feedback: Show that you can be trusted and also let people know your track record with customers by publishing comments about your product, service and business.

7. Actively Engage Customers: Use social media sites and tools like Twitter, Facebook and a blog to profile your business, create a tangible brand and personality and also engage customers.  These conversations with your customer and the community give shoppers a more complete, in-depth and intimate look into your business.  These conversations and having them like we have covered in previously posts via Twitter and your blog only make your business more credible.

Also one of our favorites, Inc Magazine has a good article on this same topic of online trust and you should check that out too.

If you start using these tips, your business and your website will go a long way to clearly demonstrating trust to shoppers and thereby helping you increase sales.

Please tell us in the comments section below what you look for before you buy online.

*Image from Bill Mullins Blog.

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As the picture above from the classic Christmas movie Bad Santa shows, the holiday season is generally a time to flock to the mall.  Many of us try so hard to overcome the crowds, the aggressive shoppers and the mall traffic to make sure we have all of our gifts for friends, families and co-workers.

My wife and I began this season spending a lot of time shopping at various stores.  A lot of the places were actually home improvement, department and electronics stores like Home Depot, Best Buy and Sears.   Much of the shopping focused around our never ending condo renovation.  And I am not the only person shopping from Kikscore. Others spent time shopping for items like coats for their brother!

Throughout much of our shopping, I kept saying to my wife, “Lets go get some Red Lobster because we can buy these items online.  Its easier, we can get more selection and we can pick it out while we are relaxing on our couch.”  One added bonus of not buying in the store is when you purchase online it gets delivered. Therefore I am saved from breaking my back trying to load the purchases into the Black Dragon (our 2000 Black Honda Accord – @157,000 miles).

Buying online is just so much easier than having to fight through the crowds to get what you want.  Its even better because then I do not have to face the challenge of my pregnant wife being able to outwalk me!

This season we are buying online much more because:

1) Buying online is easy;

2) Buying online is convenient;

3) Buying online allows you to shop at multiple sites from the comfort of your home;

4) Buying online allows you to do real time price and product functionality lookups and comparisons;

5) Buying online gets your products delivered to your doorstep; and

6) Buying online allows you to avoid the hyped H1NI germs, frantic shoppers, bad traffic and interesting characters that roam the shopping malls

Now buying online is not without its issues too. For example, we recently ordered a large sink for our bathroom.  Well the supplier of the sink decided to ship it via ground transportation.  What do you think happened when the sink had to make its way from St. Louis to Washington DC in the back of a truck along beautiful and scenic I-70?  Well that sink was delivered 3 separate times and each time there was a large crack in it forcing us to return the sink.  So watch out and make sure you use these 5 tips for safe online shopping when you buy online.

Let us know if you are avoiding the crowds and buying more online.

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There are a lot of websites and blogs that track the good and bad customer experiences with online sites and service providers.  The general notion is that these past experiences will help predict what future experiences will be.  The concept makes a lot of sense, but it presumes a few things to be true.  I just finished reading SuperFreakonomics, so I think I’m more than qualified to address these issues in a rigorous manner (did I mention that I am a scientist?  Yep, I graduated with a degree in political science, so you’re in good hands):

Sample Issues: The review sites and blogs are very much slanted towards those actually inclined to share their experiences, and those who actually know how to share them.   There is a large bloc of people not interested in telling the world about how they were ripped off by an unknown online seller (it’s called “loss avoidance” and most of us engage in it at some point…see I told you I was a scientist).  The sample of these comments are further vexed by the fact that some people don’t know how to voice their opinions (or which sites to do it with) — so the sample will likely skew towards more positive and be made by those familiar with technology/online industries.

Fraud: This is also a concern, and likely why most ratings skew overly positive…online sellers/service providers rate themselves (via fake accounts or their friends).  It’s not “fraud” in the sense of defrauding someone out of their money, but it’s not honest and defeats the purpose of customer reviews.  It’s similar to how I used to inscribe my own yearbook to make it seem like I had more friends.

Low Visibility/Little Negative Impact:  An online seller isn’t likely to promote their customer reviews unless  they are positive, so it takes a consumer extra effort to research the negative reviews.  And once you do come across those reviews, what do they mean?  If you’re about to save 20% on the new plasma t.v., it’s likely that you’ll take your chances — it’s likely the previous customers were just complainers. 

Time for the anecdotal: My wife bought a new light fixture online.  She receives it and finds out it can’t be used in a bathroom because of a potential fire hazard.  The contacts the owner of the site, he tells her “she should be fine putting it in the bathroom”).  After realizing she is not going to be able to return the item, she threatens to “blog about her experience”.  Of course, she has other things to worry about and in time she moves one — no negative review, no blog posting, no negative effect for the online seller.

Of course, we here at KikScore think we’ve solved the issue, but until we’re ubiquitous, we’ll have to determine whether customer reviews are helpful.  What are your thoughts?

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A favorite route - Apex Trail

Living in Colorado is refreshing and rewarding… and can force one to tackle adventures with a free spirit. The assumption is that if you live in Colorado, you are hitting the slopes every weekend. Well, I’m not a skier, but give me a good pair of trail running shoes, a crisp morning and a trail that winds up a mountain or hillside – now that’s what I call adventure! Will there be the unavoidable tree root to navigate or an elevation change that I wasn’t quite prepared for? Maybe encounter a snake or snow/ice which forces one to slow down and proceed with caution. Starting a business is a similar adventure in putting on those running shoes, climbing up the mountain, yet not certain what you may encounter along the way.

When launching a new business, we are forced to be selective of which trail to tackle first and more importantly to keep track of where we’ve been so as not to make repeat mistakes. The path of a new business needs to be able to react and learn from last weekend’s trail run and plan accordingly for next week’s adventure. My favorite poem, Robert Frost’s The road not takencan be interpreted many ways. In the success of business, we over analyze which can paralyze… How complex should your beta launch be? How are we going to support customer inquiries/issues in a timely manner? What enhancements should we concentrate on? How will we measure success? I can go on…

In trail running, I cannot be afraid to take that challenging trail and have an incredible story to share from my adventure. In starting a business, we need to be brave enough to take that less travelled road that can pave the way for others to follow, which will be our loyal customers.

When in doubt, run uphill! What twists and turns, and unexpected elevation changes have your business taken you on? Share your experience with us.

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I may be starting something I shouldn’t with this post, as most of us on the KikScore team are ardent professional football fans (except Raj, who likes the Cleveland Browns).  The first 20 minutes of our Monday meetings are consumed with rehashing Sunday games (we get a lot more done during baseball season).  This year my favorite team, the Minnesota Vikings, signed Brett Favre and, in turn, they are having a great season.  So, to the disgust of Mike Collins (my business partner and Green Bay fan), I’m going to write what Business lessons can learn from the Brett Favre acquisition.

Patience:

Everyone assumes that when you come out with a new product or service, it has to have immediate market success, as-is.  But as Nassim Nicholas Taleb makes clear in his book “The Black Swan”, one of the greatest strengths entrepreneurs have is the ability to tinker.  Tinkering with a concept until it suits the market is the whole point of business.  What’s the tie-in to Brett Favre?  Well, his first year in the NFL wasn’t notable.  He was a back-up quarterback for the Atlanta Falcons — and didn’t show any indications of being a future Hall of Famer that he is.  But over time, he changed his work-out methods, how he approached the game and now, at the age of 40, he’s having one of his best years ever (that’s after 20 years of tinkering).

Talent:

Last year, the Vikings had almost every member of the current team.  They lost in the first-round of the playoffs.  Now, who knows how it will end this year, but this year’s team is much different than last year.  The biggest difference is Brett Favre — his experience and talent.  The business lesson is pretty obvious.  You can have all the supporting pieces, but talented leadership (or lack of it) can raise or sink the level of everyone else around him/her.

Brains Over Brawn:

Somewhat related to patience, is the importance of experience/intelligence.  There are a lot of faster, younger players than Brett.  In fact, the Vikings have two younger/faster quarterbacks and they still chose to hire Mr. Favre at $14M/year.  When it comes to business, it may be tempting to promote the new HBS graduate — she knows all the cool Malcom Gladwell terminology and interned at some investment bank (that no longer exists).  But maybe you should look again at the company veteran, the one that knows your product and industry well.

This posting could go on and on…so out of interest of preserving my dignity, I’m going to now end my love-letter to Brett.  Feel free to send any jeers or life-sports lessons.

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