Small Business Center

This week’s list of contests has some great opportunities for recognition and cash prizes. This list of competitions and awards for small businesses is brought to you every other week as a community service by Small Business Trends and Smallbiztechnology.com.

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B2B Social Media Integration Case Study Challenge
Enter by March 12, 2010

This is your chance to join an expert panel at the B2B Forum session. How did your company boost ROI by integrating social media into your marketing strategy? Tell us your success story, and you could be telling it to the B2B marketing world in May. Complete this form and tell us your story!

The winner will become a panelist in the “Case Study Swap Meet! Proven Success Stories Integrating Social Media into Overall Strategy” session at the B2B Forum taking place on May 4-5 at the Seaport World Trade Center in Boston, MA.

The Black Enterprise Small Business Awards
Enter by March 16, 2010

The Black Enterprise Small Business Awards were created to provide special recognition to African American entrepreneurs who embody the Black Enterprise entrepreneurial spirit. They are looking for companies and individuals bringing new products to the forefront, redefining sales strategies, and discovering new and profitable markets.

Winners will be announced at a special awards luncheon in Atlanta on May 17, 2010 at the Black Enterprise Entrepreneurs Conference. Official Award Submission PDF Form is found here.

Limitless VC Contest
Enter by March 16, 2010

One remarkable entrepreneur will receive 50% of the BizBreak app profits + $3,000! + mentoring from top entrepreneurs like Mike Michalowicz, Andrew Warner, Ross Kimbarovsky, Cameron Johnson, and Yanik Silver.

Submissions are made in the form of a video to youtube describing your business and what you will do with the money. 10 videos will be chosen for the finals which will be voted on by the public. See site for details and rules.

The New Deal for Small Business
Enter by March 19, 2010

Create a video of five minutes of your business. Upload your video to YouTube then send the link to VRNewDeal@verticalresponse.com. Your video needs to feature you and your small business, as well as answer three questions:

* What does your business do?
* What makes you do what you do?
* What will you do with the money if you win?

First Place: $5,000, Second Place: $2,500, Third Place: $2,500. Additional details about terms and conditions can be found at the competition website.

The Miami Herald Business Plan Challenge
Enter by March 29, 2010

Have you hatched a great idea for a business? If your business is less than 1 year old or exists only on paper, you can enter our 12th Annual Miami Herald Business Plan Challenge, co-sponsored by Florida International University’s Pino Global Entrepreneurship Center.

This year, we will have three tracks: one open to anyone in South Florida, an FIU track open to students, faculty, staff and alums of the university and a third one for high school students. Winners will be invited to a luncheon in their honor where they will meet with The Miami Herald’s business editors, reporters and judges, as well as a Hall of Fame luncheon hosted by FIU’s College of Business Administration.

The Rhode Island Business Plan Competition
Enter by April 5, 2010

The Rhode Island Business Plan Competition, open to everyone, seeks to promote entrepreneurship and development of start-up and early stage companies. Winners and finalists in the 2010 Competition are expected to receive more than $130,000 in prizes.

Chicago City Treasurer’s Office 2010 Business Plan Competition
Enter by April 5, 2010 at 5:00 p.m.

The Business Plan competition is sponsored by Harris Bank, with Chicago Community Ventures as the managers of the competition. There will be ten semifinalists selected. Business plan summaries will be accepted from those hoping to start up a small business, and existing small businesses owners hoping to reach their next level. Business summaries must be submitted on the official competition template available here. Cash prizes will include – 1st Place $5,000; 2nd place $3,500; and a $1,500 3rd place prize. A new business mentoring program will assist all the finalists.

It’s Time for Business with Office 2010 Video Contest
Enter by April 22, 2010

Small and startup businesses in Washington state can enter to win $10,000 in the “It’s Time for Business with Office 2010 Video Contest” launched by the Greater Seattle Chamber of Commerce in partnership with Microsoft Corporation.

To participate, contestants must go to itstimeforbusiness.com/contest and download a free trial version of Office 2010 to use in their business. Any business or organization with seven or fewer full-time employees is eligible, so long as they have a Washington state business license and comply with all contest rules. The winning entry will receive a $10,000 grand prize. Best foreign language video and best video by a woman-owned business will receive $1,000 prizes.

Cringely’s (NOT in Silicon Valley) Startup Tour
Enter now through Mid-April 2010 (check site for details)

Robert X. Cringely, author of the technology blog “I, Cringely” (www.cringely.com), has launched a plan to restart America called “Cringely’s (NOT in Silicon Valley) Startup Tour.” People are invited to nominate startup companies in six different categories, discuss them, and vote for favorites on a special website created just for the tour.

After about six weeks of collecting nominations and reviewing candidates, Cringely will announce the top 24 companies. He will then take the show on the road this summer, with a camera crew, to visit all 24 companies to learn about the businesses and the entrepreneurs who started them. Ultimately, the stories he collects will become a 12-hour reality TV series to be broadcast on a major cable network.

2010 Inc. 500/5000
Enter by April 30, 2010

The Inc. 500/5000 list is a distinguished editorial award, a celebration of innovation, a network of entrepreneurial leaders, and an effective public relations showcase. The Inc. 500|5000 ranks companies by overall revenue growth over a three-year period. All 5,000 honoree companies are individually profiled on Inc.com. The top 500 are featured in the September issue of Inc. magazine.

The Better Way Challenge from Verizon
Enter by May 31, 2010

Sign up for a free 30-Day Trial of the Verizon Collaboration Center and be automatically entered to win a Flip MinoHD video camera; 15 per month will be given away randomly to those who sign up for the trial.

There is also a separate video contest: submit a video describing the challenges you face as a small business getting your whole team on the same page and you’ll receive an additional six months of the Verizon Collaboration Center for free.

If Verizon and Cisco select your video, you could be entered to win an exclusive business consultation to help you take your business to the next level in one of these two prize levels:

Grand Prize: An exclusive two-hour business consultation with entrepreneur Guy Kawasaki plus a $2,000 reward card.

2nd and 3rd Place Prizes: An exclusive one-hour business consultation with the Cisco Internet Business Solutions Group – an organization that provides customers with innovative approaches to complex business opportunities – and a $1000 reward card.

Click here for official rules and to enter.

The Shopify Build a Business Contest
Runs January 1 – June 30, 2010

This contest is open to legal residents of the United States who are at least 18 years of age and starting a new business. To enter you must open a new store on Shopify.com. The winner will be selected based on their two best selling months between January 1st, 2010 and June 30th, 2010. The store with the two best selling months will win $100,000. Achieve the same for your store category and win $5,000 as a runner up prize.

The Cleantech Open Ideas Competition
Opens for Entries July 2010

The Cleantech Open runs the world’s largest clean technology business competition and is looking for the best clean technology ideas from around the world. Just for telling your idea, you could win a prize package of services worth $100,000 to help you start a business to grow your idea! Winners of each individual National Competition, get to represent your country as a Global IDEAS finalist at the annual Cleantech Open Awards Gala on November 16, 2010 in San Francisco.

There, your idea will be presented in a five-minute pitch in front of a crowd of 3,000 investors, entrepreneurs, sponsoring companies, corporations, members of academia, press, and others interested in hearing your ideas and getting involved.

The crowd will vote via text message for the “People’s Choice” and you could win $100,000 in marketing support, legal advising, conferencing services and more to help launch your business!

The competition will open in July 2010. Sign up to receive the newsletter to get updates.

iNGie Award from Cabinet NG
Enter by August 15, 2010

Cabinet NG will recognize our customers who have best used CNG-SAFE software products to improve their bottom line and at the same time operate their businesses in a more environmentally friendly manner. “iNGie” awards will be presented at the 2010 Collaborate Conference in Huntsville (dates and location to be announced soon).

Awards:

* The first 20 companies to apply receive 2 free passes to 2010 Conference in Huntsville (approximately $500 value).
* Winners get a $1,000 credit which can be applied toward annual maintenance or CNG products.
* Winners will also receive an Amazon Kindle™.
* Recognition at the 2010 Conference dinner.

Award categories and online applications can be found here.

To find more small business events, contests and awards, visit our Small Business Events Calendar.

If you are putting on a small business contest, award or competition, and want to get the word out to the community, please submit it through our Small Business Event Form (We do not charge a fee to be included in this listing — it is completely free to list your award or contest.)

Please note: The descriptions provided here are for convenience only and are NOT the official rules. ALWAYS read official rules carefully at the site holding the competition, contest or award.

Learn more about what’s important to your small business today. Here is our latest roundup of the news articles and blogs we’re reading and what’s important, from Small Business Trends.

Policy

Will small business really be better off with another layer of government regulation? Some small businesses have come out in support of a new Consumer Financial Protection Agency.  The U.S. Chamber of Commerce opposes. Entrepreneur.com

The road to patent reform runs through the Eastern District of Texas. VC investor Brad Feld runs this op ed about patent litigation in the U.S. and how it could strangle innovative small to medium sized businesses. Feld Thoughts

Employer-provided health insurance remains in proposal.  Excerpts from President Obama’s  remarks on his health care program today.  “The proposal I’ve put forward … builds on the current system where most Americans get their health insurance from their employer.” National Review Online

Tech

Want to know how other small businesses are using social media? Here’s a cool graph with stats and some other information. Mashable

Some things are just too good to be true. Free hosted phone service for your small business may be one of them. Be sure the company will still be around when you need them. SmallBizTechnology.com

Credit

The problem with small business – is it really lack of credit? In this interview, Senator Carl Levin (D-Mich.) insists he was told by one small business owner that lack of customers or sales was not the problem but only lack of credit due to lack of capital in the banking industry. How many small business owners would agree? TalkRadioNews.com

What do you need to buy a business? Before you even think about trying to secure a loan or other financing here are some things you may need to consider. Business.gov

Marketing

So, what do those little stars next to some Google search results mean? They may be an important factor in your Website’s positioning in the future and an important consideration when marketing your presence online. Wayne Liew Dot Com

New Hampshire small businesses are bucking a trend and exceeding the national average in exporting overseas. How that state’s small to medium sized companies are fostering growth and how other entrepreneurs can imitate their success at marketing abroad. NashuaTelegraph.com

What marketers really can’t stand about advertising agencies. Lack of communications, industry knowledge and insight into clients’ needs top the list in this report. American Association of Advertising Agencies

Who are you following on social media? If you’re just checking your own brand, you may be missing the boat. BetterCloser.com

Operations

Small business payrolls showed a 2% increase in hiring and slightly larger paychecks. From the SurePayroll Small Business Scorecard for February 2010. Data based on thousands of small business payrolls. SurePayroll.com

Despite the best laid plans, your product or service will someday fall short of customer expectations. Roger Breisch, Executive Director at the Batavia, Illinois Chamber of Commerce draws on 25 years of business experience  about when the worst happens. Oops…There Goes My Worldview

What if there were a simple and complete guide on how to keep your customers happy? You’re in luck! Ken Beaulieu has seven tips that should keep customers and clients sticking to you like glue. FuelNet.com

Steer clear of the usual tax preparation pitfalls by keeping good records. Tips from the Associated Press to keep your business out of trouble at tax time. Associated Press

The secret to turning your business into one you can sell. John Warrillow draws on his experiences building his business, which he sold a few years ago. Small Business Trends

We hope you’re enjoying your daily small business news roundup here at Small Business Trends. Here is the latest from news sources and blogs we are following regularly.

Marketing

What can Lego teach us about guerrilla marketing? Shane Gibson talks about giving away real value and offering a variety of options in the digital world. Closing Bigger.net

Does your business really need customers? Here’s a completely different way to look at and treat the people you serve each day. Walt Goshert

Self-Development

How to create your own online business training. Whether you attend an accredited business school or design your own “personal MBA” with online and other resources, the key to a good education is the information you take away. Copyblogger

Learn better speaking skills with seven simple steps. When it’s time to do a presentation for your small business, some simple advice will help you shine. MarketingProfs Daily Fix

Tech

Google Translate breaks the online language barrier. Think Skype is something? Joel Libava will tell you about one more tool that will increase your small business’s global reach. The Franchise King

New mobile devices may challenge Apple products. What will a Sony line of products offer by way of small business tech tools? WSJ

Operations

Want to make more money from your small business while putting less time in? Who doesn’t? But the key to success may be much more than simply increasing your efficiency. Bloggertone.com

Embarrassed by your profit margin? Remember, profitability is a sign of a healthy business and of good value delivered to your clients and customers. MyProjectTracker

Does your small business need a lawyer? Better read this first. Open Forum

Do you take notes while meeting with clients? Or when having any kind of important business meeting where issues are being discussed and hashed out? You should and here are some more tips on how to do it right. Sales Tip A Day

Startup

A great business is about more than a great idea. When it comes to launching your next venture, you’ll need plenty of hard work and the right skills. 37 Signals

Actions speak louder than words. What’s the difference between talking about that startup idea and making it happen? The answer is simpler than you think. Chris Brogan

Ever dream of launching an online retail store? Entrepreneur Cristian Dorobantescu talks with one small business owner about his experiences in the competitive world of e-commerce. Entrepreneurship Interviews

Policy

Are more loans really the key to recovery? Or is easy credit what got us into this mess in the first place? Cato Institute

More sales not government incentives are the key to economic growth. Businesses are happy about any tax breaks, but a $15 billion jobs bill won’t create new hires on its own. WSJ

Can you really get something for nothing these days?  The good news is that, yes, you can.   The great group of guys over at Magntize have offered Small Business Trends readers the opportunity to throw their name into the hat for a chance to win a complimentary pro account at Magntize. 

Magntize is a site that helps you to introduce yourself to the world.  As the guys at Magntize say, “Sure we all have blogs and accounts with various social networking sites. There are places to post photos, upload videos, chat with friends, edit your resume, or update your status… These sites are fostering conversations among folks all over the world, but if someone wanted to know more than 140 characters about you – where would you tell them to begin?”

In short, Magntize makes launching personal websites so easy your grandma could do it. The challenge for most people is that designing a personal site, coding it out, purchasing a domain, and setting up hosting is completely overwhelming. The guys at Magntize have set out to make it a much simpler process for you.

The free pro account at Magntize includes:

• Your own domain (http://yourname.com)
• Custom email forwarding from your domain (email@yourdomain.com)
• Access to our Premium themes as well as the custom-designed Magntize iPhone version of your site.
• A personal aggregate RSS feed that combines all your web activity into a single stream

This is part of a new giveaway program we have implemented here at Small Business Trends.  Each month, we hold a randomly chosen drawing and give away free stuff to you.  There will be something different that is of interest to entrepreneurs and small business leaders every month.

This month, we have 3 complimentary pro accounts at Magntize to give away.  The winners will receive a pro account credited for 12 months of free service and one domain name registration.  This particular drawing is open to anyone, anywhere in the world.

TO ENTER: Visit the Small Business Trends giveaways page

DEADLINE TO ENTER:  Midnight PST (3:00AM EST)  on March 21st, 2010

Be sure to bookmark the giveaways page, where we list each month’s contest or drawing. We’ll also include discounts and special offers. Check back often to see what’s new.

How’s the first quarter of 2010 — and the rest of the year — looking for you and your business?

Are you primed and ready to make money this year?

Have you put a plan in place to promote your business and maximize your success?

Here are ten quick, easy-to-implement things you can do that will guarantee your online business will be making you money this year:

Write down your personal affirmation for the month and the year.

The goal here is to help you step back from the hustle and bustle and stay focused on what’s important to you.

Get your story, idea, product, or service announcement out into the marketplace seven different ways, all at once.

Choose from these options to make a powerful impact:

1. Press release
2. Blog post
3. Facebook
4. E-zine blast
5. Email announcement
6. Videocast
7. Downloadable audio snatch
8. Free e-book
9. Podcast
10. Teleseminar

Use free classified ads to promote your business.

If you have a knack for writing short ads, you will be able to increase your site traffic by using free (or pretty darn cheap) classified ads. Place ads where you know your target audience will see them.

Introduce yourself to three potential referral sources.

A nurturing referral relationship can be quite profitable. So think of professionals who would be good referral sources for you. Then make contact with them today.

Add three success stories to your website.

You already may have testimonials from your clients on your website. Now create a space for their before-and-after success stories. Remember to include a link back to their sites so everyone gets some love.

Add a tantalizing promotional “special” to your email signature space.

Put a brief promotional line about the special product or service that you are giving away (or offering at a reduced rate) this month.

Write each of your clients and customers a personal, hand-written “thank you” card.

Thank them for sticking with you through the 2009 recession. Be sure to include a coupon they can use for a special product or service.

Offer a deal, such as “buy-one-get-one-free.” This will increase your sales!

Follow up with all your 2009 leads that showed an interest in your product or service but didn’t buy.

Call (don’t email) them and see if they now have a need for anything you offer. 

Let your clients know about something big you’ll either be doing or offering in 2010.

Here are some big ways to make an impact and get their attention:

• Book launch
• DVD training program
• Keynote speaking engagement
• Public seminar
• Corporate training program
• Boot camp
• Mentoring and apprenticeship program
• Weekend retreat
• Television show
• Membership website program
• Special teleseminar series

As a business owner with an online presence, you need to offer special buying opportunities throughout the year. This list will help you do just that.

Implement one idea each day. You’ll not only be promoting your online business, you’ll also be making certain it will be a success this year.

Editor’s Note: this article was previously published at OPENForum.com under the title: “10 Things You Can Do to Make Your Online Business Money” It is reprinted here with permission.

Obviously most people know me as a cartoonist, but I’m also a stay-at-home dad. I quit my last day job soon after my son was born and I’ve been juggling diaper pins and ink pens ever since.

Usually the two roles don’t intersect. I know a lot of cartoonists that get material from their families, but I prefer to have work be work, and Dad be Dad .

But, to be fair, occasionally they can’t help but overlap, such as the above cartoon which came about after a routine checkup at the pediatrician with my daughter.

(And, to be fair, “object permanence” is inherently funny.)

One frustration I hear from a lot of small business bloggers is that they feel like no one’s reading. They see the big subscription numbers of pros like Darren Rowse or Brian Clark and they’re discouraged that their numbers are just nearly breaking into the hundreds. And then they stop blogging completely. Because, if only 100 or so people are reading your blog, what’s the point?

The point is the 100 people!

As a local business, you don’t need to become the biggest, most well-read blog on the Internet. You just need to connect with your audience and the people on the Web who could become customers. If you’re a local hardware shop in Detroit, Michigan and you’re able to connect with100 people who live in your area – that’s a pretty significant number. There are lots of benefits to being a ‘small-time’ small business blogger. Here are a few more.

More Intimate

Yeah, so you’re probably never going to have the readership that Darren Rowse has at Problogger, but a smaller audience allows you to really get to know the people who are in your community. You get a better understanding of what your customers want, who they are and you can form real relationships with them in a way that bigger bloggers have a difficult time doing. You can reach out to the person who comments regularly on their blog and get to know them on a more personal level. You may even be able to tie the online person with the real-life customer so that you’re better able to target them. Playing to a packed stadium may feel great, but it’s those coffee shop environments that introduce you to your real fans.

More Engaged

At my other blog Outspoken Media last week I encouraged all the lurkers to leave a comment and tell me why they lurk instead of participating and how I could help bring them into the conversation. The response I received from people who had never commented before was amazing. And while reading over their replies, I noticed that many feared commenting on posts that had tons of comments or where they didn’t feel a connection with the blogger and the audience. They were looking for a place where (a) their comment would be heard and (b) a place they could establish a connection. Niche small business blogs are where many commenters enjoy hanging out. It allows them to get to know the blogger and really feel part of the community. Rather than feel like an anonymous person, now they know their voice will be heard and they feel more invested.

Better Signal

Having a smaller audience that you can get to know allows you to target content directly to their needs. There’s no trying to please a bunch of people who will never impact your business – you only have to worry about being useful to your customers. You can write content specifically designed to answer questions they’ve asked, respond to trends you’re seeing, and really talk to the people who matter to your company. It’s a lot easier to get to know your community when it’s made up of tens of dozens instead of tens of thousands. And the matter you know them, the more relevant content that you can create. Content that will get them off your blog and into your store.

As a struggling blogger, I know it’s hard to see the A-listers with their tens of thousands of readers, but for a small business, getting the attention of 100 of your most interested customers is nothing to turn your nose at. Imagine if you had 100 people in your store asking you product questions. Your blog is your customer service desk on the Web.

“It is time to rework work. Let’s get started,” declares the authors of the new business book Rework by 37signals founders Jason Fried and David Heinemeier Hansson.

They want to change how businesses are run, and to borrow a segment title, “Make a dent in the universe.” They are definitely knocking on the universe’s door.

I read a review copy, and was inspired to rework my own thoughts on entrepreneurship and business strategy.

What Worked Well in Rework

This is a book you don’t want to judge too quickly. On first blush the short content seems gimmicky for a book claiming to have a revolutionary outlook.  The chapters cover an arc of business growth with intriguing names:  Takedowns (addressing the barriers to starting a business), Go (Getting started in business), Progress, Productivity, Competitors, Evolution, Promotion, Hiring, Damage Control, and Culture. Within each chapter is a bold statement, a short page or two of explanation, and a memorable image, all with a ready-for-e-book feel.

Ah, but what seems lacking on the surface can be fulfilling when examined.  Rework will pleasantly surprise you once you delve in.  This book offers simple been-there-done-that advice  — and it is anything but shallow.

It distills the typical business subjects to essentials, then offers inspired suggestions with a sharp imaginative eye. Here’s one piece of realistic advice that rings true:   entrepreneurs should seek alternative means to get their business  exposure besides major media publications.  In the “Forget about the Wall Street Journal” segment they write:

“Pitching a reporter at one of these place is practically impossible… you’re better off focusing on getting your story in a trade publication or picked up in a niche blog.”

The Takedown segments get the ball rolling, with sharp headlines throughout the other chapters.  Hansson and Fried explain why Meetings are Toxic and Press Releases are Spam.  Especially powerful was the segment on the “Myth of the Overnight Sensation”:

“It’s not the whole story.  Dig deeper and you’ll usually find people who busted their asses for years to get into a position where things take off…. Trade the dream for overnight success for slow, measured growth…. You have to do it for a long time before the right people notice.”

I loved the musings on “Learning from Mistakes is Overrated”:

“You might learn what not to do again, but how valuable is that?  You still don’t know what you should do next…. Evolution doesn’t linger on past failures, it’s always building upon what worked.  So should you.”

Every idea proposed shows imaginative ways to spur you to intriguing decisions.  Example:  letting your customers outgrow you:

“When you let customers outgrow you, you’ll most likely wind out up with a product that’s basic….  Small simple needs are constant. There’s an endless supply of customers who need exactly that.”

Steps in the growth process are turned on their head without being dumbed down.  Tips such as “Hire managers of one” will re-imagine the hiring process for leaders.  “Resumes are ridiculous” says resumes are “filled with action verbs that don’t mean anything.”

Rework relies on the authors’ perspective, who deliberately set about creating a small business and avoided being bogged down by external factors such as venture capital or extensive research.  That’s the perspective of this book.

References to outside sources to support their views do appear, like in the overrated mistake learning example (it mentions a Harvard study on entrepreneurship and failure).

Readers are cautioned to de-emphasize traditional tools for early efforts — “Your Estimates Suck” dovetails into the concept that not having a plan is okay. It is based on the authors’ experience.  These ideas are valuable for startups or small businesses with a few employees.

What Might Have Worked Better

In a few instances subjects contradict or need more explanation than a page or two.  A tip to “Pick A Fight” – calling out your competitors – seems to contradict a later query “Who cares what they’re doing?”  which is about ignoring your competitors.  Moreover, the Audi example in the “Pick A Fight” segment breaks a marketing rule to never mention your competition (doing so can remind your customers of the competition’s advantage over your product).

Miscues are rare, though.  In a brisk and comfortable pace Rework experiments well in reframing business.  It offers  practical steps for establishing culture, strategy, and productivity.

Who Should Read Rework

The advice in Rework fits small service firms with simplicity at their operational core.  Refreshingly the authors own up to their perspective, offering no apologies for its honest language, or for the fact that it is written mostly from the 10-year experience of running a 16-employee software firm.

Rework may not fully appeal to firms with engineered products or joint ad-hoc projects that want more detail regarding processes.  Managing a joint project between businesses can require coordination to make a profit.   Such joint collaboration is not deeply covered, a particular point given the increased tendency to coordinate small businesses remotely together.

Rework is right for entrepreneurs and small businesses that offer services and are intent on steady solid growth and profitability.   If you have a services type of business, this book will be ideal for you. The flexibility to scale advice, coupled with clear explanations, is what makes Rework a rousing success in its mission.  In its originality Rework has found a clever way to stir the entrepreneur in everybody.

I used to own a market research firm, and we’d do just about anything for a buck. You need focus groups? No problem. You need a conjoint study? We’re your guys. Mall intercepts? Let me get out my clipboard.

I found by offering such a broad set of services, we never really got good at any one thing. We had consultants doing certain types of projects only once or twice a year, so they lacked experience and got intellectually rusty. We needed all sorts of people to offer such a broad set of services, making the business neither scalable nor sellable. Eventually we decided to change models and offer one set of research papers to all of our clients on a subscription basis.

The subscription business started off well enough, but along the way, someone asked us if we still did focus groups. It was like a recovering addict being offered a fix. We jumped at the opportunity to do the project. The problem was that people noticed the crack in our resolve and burrowed a large hole in our claim of being specialists. Clients realized we weren’t totally committed to the subscription model and started asking for customization to our reports and one-off side projects. My employees noticed we had strayed from our offering and started accepting other projects — much like a child seeing his parents say one thing and do another.

Pretty soon, we were running two businesses in parallel with our resources being spread across two completely different models. We were half-pregnant: spread thin, cash flow tightened, project quality slipped and deadlines pushed. After a while, with clients demanding custom work, we had to abandon the subscription model and go back to just doing projects.

After retreating for a few years into the misery of owning an unsellable service business, we took another run at building a subscription business. This time, we told clients we were not accepting custom projects anymore.

We had to start saying no before clients realized we were serious.

I expected good clients to balk and that sales would dip. Instead, a funny thing happened: we started having much better conversations. Clients stopped asking us to do custom work and started asking how our new model could help them achieve their goals. For every one client who said no to our new model, two new ones heard about our unique offer and wanted in. Our salespeople got good at the pitch and were able to sign up 100 enterprise customers as subscribers.

The subscription business is a build-once-sell-many-times annuity model. Our scalability, recurring revenue and focus ultimately allowed me to sell the business in 2008.

Here’s a video that describes how you can identify a scalable product or service of your own: