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Too often people take a look at some of my small businesses and want to replicate them with different products/services.

These people first start searching for a product to sell. I think this mentality is wrong. First people should get serious about researching what goes into creating a small online business, THEN start looking for a product.

Many people don’t realize the first steps it takes to setup a fully functioning ecommerce website. This is just a short list of things to do:

• Finding a domain name, buying the domain
• Setting DNS servers for domain
• Finding hosting to resolve domain
• Creating an entire website
• Enabling shopping cart capabilities
• Opening a merchant account
• Finding suppliers or means of production for products/services
• Installing SSL security
• Getting page properly indexed in DMOZ and search engines
• Reaching customers
• Drawing people to the website
• Converting visitors into sales

Trying to do this on a budget of maybe less than $100 isn’t easy, so much of it must be done yourself. Something simple as designing a logo can be difficult if you don’t know how to use PhotoShop or other software.

Fortunately, there are solutions nowadays that take most of the technical stuff out of the process such as Volusion.com and Yahoo Stores, but even then it still really helps to be somewhat tech savvy.

If you’re serious about sometime starting up a small online business, first do some serious reading and research about the business and technical side….then decide on your product/service later. Don’t be afraid to sail uncharted waters.

I’ve started more aggressively tracking my monthly expenses starting this January. I utilized the help of a cork board and dry erase board to do this. Every time I incur an expense, I write it down on the dry erase board and post the receipt.

I also keep an Excel file full of my expenses and tax deductions, but the cork board is always there to stare me in the face for what I spend. For January I incurred roughly the following expenses:

I know people who pay higher monthly rents than my entire monthly expenses. These are bound to go up, especially in the investment category. Luckily, many of my investment dollars are tax deductible.

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I was speaking to a mentor of mine about being more productive, and he passed down a simple phrase that was passed down to him:

For some reason, that phrase really stuck with me. He explained that, “Everyday should be a small victory.“

This means writing out all of your tasks the night before, then executing them all before you sleep the next day. If you finish everything and then some, you have won.

I used to plan out my day by hour, but it NEVER worked. I realized that everyday is different, and unexpected things always pop up, so an hourly schedule is not the best. My days are more planned out now using Microsoft Outlook Calendar and plain old sticky notes.

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I had set a goal of 1-31-2006 to launch another new small business of mine. I’ve postponed that launch date for 5 more days. It should be done by then!

Some of my sports obsessed friends got together and decided to start a sports picking business as a side income.

They had a common problem many people have: they had no idea where to start. I decided it would be interesting to document their progress as they develop their business:

So these guys know their sports, but not much about how to create a small web business. They started mapping out how to sell their picks, but were stumped when it came to actually implementing the page on the internet.

I helped them setup a website on my server, showed them how to use the basic functions of Macromedia Dreamweaver, insert PayPal payment buttons and how to buy and modify a webpage template from TemplateMonster.com.

Here is what they came up with: ParlaysAndPicks.com

Now this site looks pretty amateur and unprofessional. HOWEVER…..at least they got an actual working site up and running, more than what 90% of people will accomplish. Another surprising fact is they actually get orders and make money after less than a month in business. Their only “Product” is their sports picks which they send by email. Therefore there is no real overhead for their business. They can have 5 customers or 5,000 and have almost the same overhead costs.

They tried advertising with Google Adwords, but Google wouldn’t accept their ad because their site was considered a “Gambling” site. However, Yahoo allowed them to advertise, and they spent several hundred dollars getting traffic to the site through Yahoo. In return, they made more than double their investment back in just a month.

They have already proven they can make money with their micro business, now the goal is to make more. The next step is hiring a web designer to “clean up” the site and make it more professional.

I get questions everyday concerning how to start a small online business, so I think this will shed even more insight on the subject. I’ll continue to document their progress.

In the quest to earn more from several online businesses I am a part of, I’ve been searching for ways to improve sales & service.

A piece of software that was recommended was LivePerson. It’s actually pretty amazing. It primarily allows you to offer “Live Chat” on your website, but I’ve found its website tracking features to be more impressive.

You can view in real time exactly what a customer is doing on your website. The second they click “Add to Cart” or on a new product, you can see them doing it. The software then keeps all these statistics. It also shows you in real time how they found your site or what keyword they found your site with.

I installed LivePerson on House Of Rave and it’s pretty amazing to watch people rummage through the website. I can also see what city they are from, how long they’ve been browsing the site, if they are a returning visitor etc…

I will start offering Live Help on HoR very soon. But for now, I’ve noticed a large amount of customers find the site from the free videos and pictures, then end up browsing and buying.

If it’s videos and pictures that people want, then I’ll give them even more, perhaps even enable some sort of system to discuss and rate the vids/pics. The free demo of LivePerson helped me really see how people browse HoR.

The problem with LivePerson was the price. About $100/month for the most basic package. I did some more research and found some cheaper services….the only other one I liked was BoldChat.

BoldChat has similar software and features, but was much cheaper than LivePerson:

I’ve signed up for BoldChat, and will use it for a month to decide if it’s worth it. I ordered the full package which costs $79/month.

Hopefully integrating these systems will be one more step towards boosting HoR profits to the $5,000/month level.

I was recently published in the Russian Wall Street Journal/Financial Times publication called Vedemosti. The reporter who did the interview, Victorya, was kind enough to send me a physical copy of the newspaper I was in:

The problem is, I have NO CLUE what it says about me! Everything is in Russian. On the other hand, I am extremely facinated by seeing my picture and not being able to read what the text says.

I will probably frame this article just for its conversation starter appeal.
I’ll also at some point translate the interview. I know the guy who writes HowToBePoor speaks Russian.

*Update: The article was translated for me.
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A website I’ve liked for some time now is Despair Inc. They sell demotivational stuff, which I think is absolutely hilarious and brilliant.

I recently bought this poster to hang over my VoIP phone which I use mainly for business purposes. The poster is so absurd that it makes me want to do the opposite.

Surprisingly, the package the poster came in was from an Austin address not very far from where I live. I’ll probably swing by their office to see what goes on there, just purely out of curiosity.

Through college I’ve met very few people who have made much money through entrepreneurial ventures. Even in many entrepreneurial clubs there still few people who have actually done much.

I like to observe people who I think “have it in them” in order to learn a way to improve my own chances of success. So far I’ve seen two people I KNOW will be successful in the future:

Jon Brelig:
Strengths: Intricate computer programming knowledge.
It’s very rare to meet someone so good at programming who also has a keen business sense and extroverted personality. Jon’s current claim to fame is SkiReport.com, one of the largest ski-condition websites in America.

Jon is still a student, yet makes serious cash because of the automated system he built for SkiReport. Of course he won’t just let his cash flow top off, so he is currently re-doing the entire site to accept reservations.

Prior to SkiReport, Jon had a web solutions company which did tons of business in the Colorado area. He was a step above all the other high school kids who designed a few websites and claimed they had a ‘web solutions’ company (like me).

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Kunal Das:
Strengths: Networking skills, leadership and persistence.
This guy knows pretty much every person in the world. His network is extremely large, and he knows how to meet new people. He is a natural born leader and manager and has started several businesses with many employees to show. His current project is Grade-A-Books.

Kunal buys back books for more cash than the Co-Op, then sells them for cheaper, right on campus. Since the Co-Op gets such a high profit margin from their used books, Kunal can afford to accept a smaller one.

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One thing I’ve picked up from Jon’s SkiReport is to automate everything. He has spent considerable time and frustration creating a phenomenal backend system, and it allows him to get things done extremely quick with little effort. Kunal demonstrates the need for being a great leader. His current and past businesses have helped him develop great leadership skills which are crucial for running a business.

“Surround yourself with those smarter than you”

I love seeing new ways of effective marketing, especially on a large scale. An example I’ve seen lately is the brand new outdoor/indoor aquatics complex here at the University of Texas.

Two buildings were demolished to make room for this structure in the epicenter of the UT campus. It serves absolutely no educational purpose and will probably distract students from school….yet it will make the UT campus education level go up.

UT Austin has become one of the most desirable colleges in Texas, causing record numbers of applications. They have cut the number of admitted students each semester, yet are getting more and more applications. Demand is way up and supply is down.

Because of this, UT is getting phenomenally difficult to get in. The increased competition is allowing only very well qualified students into the college. To further increase this demand and therefore caliber of students, UT Austin has created this additional ‘fun’ feature to the campus.

The complex was just finished and officially opened. It has a 12 lane lap pool, a giant hot tub, a “beach” pool and a volleyball pool. There is also a cafe and tons of lounge chairs. When potential freshman come for tours, this should definitely impress them.

Removing books from libraries, putting coffee shops everywhere, adding new resturaunts, free transportation to 6th Street and now a giant aquatic center in the middle of campus….it’s a brilliant way to increase competition for UT admission.

I could learn a thing or two from this method of indirect advertising as I am rolling out some new businesses in 2006. I’ve already come up with some indirect ways to advertise. This is sort of like the free videos and pictures on House Of Rave.com. Most people will view them and leave, but some will actually stay and buy something.

Just something to keep in mind!

I’m graduating in December and I couldn’t be more excited.

Instead of finding a good job, I’m taking a road I find more interesting and exciting: making my own way.

Of course a lot of people would like to do this, but many cannot. I feel I’ve worked enough towards this goal to allow me to do this successfully:

• Supposing EVERYTHING goes wrong, I’ve built up a modest amount of money to live on.
• I’ve expanded my network of people to a very healthy level which means more opportunity, and if I DO need a fixed income job, I could get one.
• I’m young, unattached and able to rough out tough times if needed.
• I’ve built up my arsenal of experience to make small amounts of money here and there in case everything goes completely wrong.
• My income currently exceeds my expenses + monthly savings + then some.
• I’ve already split up my accounts to help see exactly how much money is allocated to each type of expense.

Not only have I setup the foundation for being a full time entrepreneur, but it also suits my personality: I love uncertainty, I get bored very quickly and I like dabbling in many things at once.

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Lately I’ve been exposed to a lot of oversees computer work. These are basically freelance computer programmers and web designers who work from India, Russia or other countries. I must say I’ve been very impressed with the quality and speed of their work.

People complain about outsourcing, but I’ve found it very difficult to find skilled people in the United States with the same amount of computer knowledge and quick service.

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I’ve missed a few goal deadlines including a new business I am pretty excited about. I’ve been redesigning a whole new backend and ordering system for it. There are some unique features I need, so custom programming must be done.

I’ve also missed my $7,500 p/month by 11-17-2005 goal, however I am not too far off. On this site, I only list personal income sources. If I make money from someone else or with someone else, I do not document it on this website. I have a strong feeling that 2006 will be a great year for me!

-Nev

I like to randomly observe what is going on around me to spot new trends or changes. Changes = Opportunity.
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I tried to sell bottled water, this Real Estate Investment Club just gives it away to attract visitors to their booth:

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I have seen this truck around Austin more than once, and I was intrigued by their unique way of advertising on the streets for free. This moving billboard can go to any high-traffic area and park, allowing their sponsors to target specific demographics and locations (e.g. Night time at 6th Street = Beer advertisement).

I read more about the company and found out they are using a loophole in the Austin advertising ordinance to stay in business. They use 100% green-biodiesel to power the truck, or people get mad they are unneccessarily polluting by aimlessly driving around town.

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I noticed that this bulletin board in the Student Union used to be more crowded when I was a freshman at UT. I’m guessing most of these “For Sale” ads are replaced with CraigsList posts.

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I enjoy seeing huge changes happen in front of me, and one thing I’ve seen taking a dramatic change is the function of libraries. The largest library at UT recently opened a coffee shop inside! College students + Studying + Coffee Shop…needless to say it is doing quite well.

An even more interesting phenomenon with libraries is no more books!
The UGL (A popluar undergraduate library) used to be a 3-storey library filled with books, a small computer lab and some desks. Now they have completely removed all the books and made the entire thing into a giant study lounge.

The 1st floor outside area is a loud, group-study area:

The 1st floor inside area is now void of books and transformed into a giant study lounge with IKEA furniture:

Nowadays, there aren’t as many people going to books for their research. The libraries are instead catering more towards computers and laptop users. Instead of finding something using an encyclopedia, you can tell someone to JustFuckingGoogleIt.

I find it facinating this LIBRARY doesn’t have a single book. I’ve also heard they are currently adding a coffee shop to this library also. The library is now becoming a much cooler place to go!

I’m selling the boxes on the top-right of NevBlog to anyone wishing to advertise. This idea has been done in the U.K., and now I will try it in the U.S.

Product: Squares in the boxes on the top-right of the blog. You can add an image or text to these boxes. Each square can be linked to the destination of choice.

Price: $50 per square.

Space: 20 squares wide, 30 squares long.

Advantages:
Reach a large audience on a widely-read personal finance blog which has been featured in Business Week, New York Times, Yahoo Finance, Financial Times and Wall Street Journal. No other advertisments are present on the site. Site offers draw-back appeal and high PageRanking unlike other pixel-advertising sites. New and unique way of advertising!

Payment: PayPal or Credit Card.

—–Pay directly via PayPal Here:

—–Pay by Credit Card Here:

All the proceeds from this experiment will go directly into my investment account. I use this account soley for re-investing in other money-making opportunities.

No sex or pharmaceutical sites. Any sites I consider a link farm will also not be considered.

Questions? Email Me.

Happy advertising!

——–UPDATE (9-29-2006)———–

I have taken the pixel squares down after one year, they made me a total of $2,300 (minus about 2.40% for fees).

The pixel sale ended up looking like this: