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When being a "bully" might not help your bottom line

1/31/2012

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Consider this twofold example of how trademark infringement has been handled by The North Face clothing company compared to Coca-Cola beverage company.  Sometimes, imitation is the best form of flattery and you would be well-served by embracing your fans, even if they are using your mark in an unauthorized way.  On the other hand, you might be risking your ability to enforce rights later if you capitulate even a little bit. 

Some fiction authors have been ferocious copyright defenders because they fear that by letting even well-meaning fans make derivative "fan fiction" works, they jeopardize their ability to own their characters later. 

It's not a simple decision:  every time you consider legal action, there are both predictable and unpredictable ramifications.  Perhaps "making an example" out of an infringer will establish your presence as a brand that must be respected and taken seriously...  Or perhaps your clientele will be turned off by your humorless, bottom-line-centered approach. 

The most important thing is to understand the things that make your product valuable to your customers.  If you know why customers are attracted to you (superior quality, distinctive flavor or styling, or convinience, for example) you can estimate what parts of your brand are vulnerable to competitors.  Those are the places you need to redouble your defensive efforts.  As outlined in the above article, Coca-Cola was not losing sales to a competing soda, it was merely some die-hard fans celebrating a product they liked.  In that situation, suing them would have damaged the company's goodwill and potentially reduced sales.  On the other hand, if a competitor is mimicking your trade dress or mark and selling a confusingly similar product, taking legal action will probably not garner as much negative publicity. 
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David and Goliath

1/24/2012

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Filing a lawsuit shouldn't be your first reaction to anything.  In the case of a perceived breach of contract, an injury, or even outright theft, it's important to get all the facts before running to the courthouse, no matter how upset you are.  It's an especially weighty decision if, like Mixed Chicks founders Kim Etheredge and Wendi Levy, you find yourself up against an industry giant.  The attached link outlines the story of a hair product line that appears to have been poached by the Sally Beauty company and some professional input at the end of the article.  What would you do?
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"Benefit Corporations" enable you to fund your conscience

1/20/2012

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Many people start a business to monetize an idea -- provide a service or sell a product -- and maximize the returns.  Publicly-held companies are in fact accountable to their shareholders and may be liable if they make decisions that don't maximize returns.  Enter to "benefit corporation," a new form of corporation that grants the board of directors immunity from suits by shareholders if they justify that their decisions are "socially responsible" or fit into a pre-outlined list of beneficiaries.  Unlike a charity or non-profit, there are no tax exemptions, but it does allow corporations that choose to resist takeovers and other mergers that, while objectively profitable, may not be to the founders' or board of directors' preference. 

Notably, the infamously free-wheeling Ben & Jerry's ice cream company was purchased last year by Unilever;  the offer was "sweet" enough that failure to sell the company would likely generate a lawsuit by the public shareholders that they were denied a substantial profit for no good business reason.  And so a company that has a reputation for social activism and unconventional marketing is now owned and controlled by one of the largest consumer products corporations in the world.  Ben & Jerry's representatives assured reporters that this sale never would have happened had a benefit corporation been an option at the time. 
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Define "entrepreneur"

1/18/2012

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When you think of people who have started thier own businesses and been successful, what's the first word that comes to mind?  Risky?  Crazy?  Brave?  Reckless?  Conservative?  Calculating?  Eric Schurenberg argues in Inc. that the thing entrepreneurs most have in common isn't a personality trait at all.  It is an ability to pursue plans outside of existing resources. 

It's not a matter of wanting to take risks or avoiding risk; gambling or stacking the deck.  Rather, it's a mindset that can see past the limitations of the "current" and work towards an ideal goal, then take steps to bring the current reality in line with the ideal.  And Schurenberg agrees with what's probably running through your head right now:  that's "so friggin' hard.  And so friggin' necessary." 
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2012 mileage reimbursements for business driving

1/18/2012

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Well, the punchline is $0.555 (fifty-five point five cents) per mile, no increase from the last adjustment mid-2011. 
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Having trouble relating to "Gen Y"?

1/18/2012

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There's simply no substitute for hard work, but as this article shows, the best way to get hard work from your younger employees might not be the ways that you were motivated to work hard. 

Much of the recent press about "Occupy Wall Street" or the entitlement issues related to finding good employees has been critical of the younger job-seeker.  Perhaps they played soccer where no one kept score and lost any sort of "killer instinct" or closing skills they otherwise would have had.  Perhaps they called their parents in to defend them every time they got a bad grade or a disciplinary action, and they think they can appeal any decision.  Perhaps they just don't equate hard work to high performance because they were taught that "everybody is the same."

But they are your future workforce.  Wish what you want about how their mothers, teachers, professors, and peers influenced them, they are what they are.  If you want to hire them and get good work product from them (it is possible, they're not any dumber than you were at that age), it's helpful to understand where they're coming from. 
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Don't be intimidated by the "big guns" in the marketplace

1/17/2012

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There are dozens of adages about success like, "find something you love to do, then find a way to get paid for it."  Often, we assume that this means we need a certain level of competency and expertise to be successful.  The Wall Street Journal outlined how Gaston Glock revolutionized an industry by approaching a problem without expertise;  without pre-conceived notions, that is. 

As important as it is for you to be competent in the skills you have, it takes a lot of courage to think outside the box of your industry.  Perhaps the strategy of doing something faster, cheaper, better, or with better service is not having the financial returns you hoped it would in this tough economy.  Maybe it's time to reimagine your product or your marketing in a radical way?
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Protect your tech!

1/14/2012

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Headlines were made by the recent announcement that a former engineer for Dow Chemical will be sentenced to 5 years in prison for selling proprietary information (trade secrets) to the Chinese government and private parties in China.  He was also ordered to pay more than $600,000 in fines and penalties.  The total cost to Dow Chemical?  Estimated at over $250 MILLION dollars. 

Perhaps your company is not developing cutting edge polymer technology, and you think this isn't relevant to you.  The polymer technology stolen from Dow Chemical was used in vinyl house siding and electrical insulation -- hardly James Bond-style technology. 

The point is, if you're making money off of it, other people want it.  Patents can protect you to a point, but Dow was protecting itself with trade secrets.  That means you need to screen your employees, consultants, and independent contractors.  You need to trust them.  You also need to have your termination clauses reflect the seriousness of breaches of confidentiality and trade secret theft. 

Even if you're not as big as Dow Chemical, espionage is an age-old way to avoid doing the creative work.  Take precautions no matter your industry. 
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Important Changes to small business grant application requirements

1/10/2012

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Once your small business is off the ground, government grants are a great way to give it a boost.  This article outlines some of the guideline changes for 2012 in tech transfer and pharmaceutical industries.  Small business grants aren't just for employee training or warehouse expansion!
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Domain name suffixes changing

1/9/2012

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How you market your business has to do with your products, your clientele, and your goals for market penetration and sales.  This article details a big new change in domain names.  Soon, you will be able to purchase a domain name that it's merely ".com" or ".net," but ".shop," ".furniture," or even ".arcticvacations."  The rules have been significantly loosened to allow more options for vendors.  It's time to evaluate if branching out into a new domain suffix will help you get a jump on the competition or corner a catchy product or venture
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