Erich Stauffer

Author: Erich Stauffer

  • Goals as a Function of Success

    As we head into the new year I have been thinking a lot about goals lately.  I was reminded of an old function I created once for the achievement of a goal.  If you are wanting to make money online, you are wanting to start a business (whether you think of it as a business or not).

    Think of the act of creating a business as a pre-defined function:

    goal + team + defined product + defined market + advertising = achievement of goal

    So, the goal is the beginning of the function and the achievement of that goal is the result. Without a goal, there is no function. The function is the business. Therefore, without a goal, there is no business.

    How to Define a Goal

    Dave Ramsey, a financial author and motivational speaker has five rules for goals:

    1. They must be specific
    2. They must be written down
    3. They must be measurable
    4. They must be time-sensitive
    5. They must be yours

    The first three are self-explanatory, but “time-sensitive” means setting an end-date. Diana Scharf Hunt, a motivational writer, is famous for saying, “Goals are dreams with deadlines,” but what does Dave mean by “yours”. I think it means that it has to be something you care about, something you are passionate about. Passion is key to the goal, which also means it is key to your business, according to the function.

    What are you passionate about? It’s okay to be passionate about making money. That is an okay reason to start a business. Even not-for-profits need to make money to survive. Those who are successful in business realize that they are not making money for money’s sake. They are tithing, providing other people with jobs, helping their local communities, providing for their family, all the things that come from making money.

    Lets say our goal is to make money and we want to go down the list, applying the rules:

    1. Be specific. How much money do we want to make? Money without time constraints is irrelevant so lets use the unit of a year. Lets say we want to make an additional $40,000 a year – on top of what we make now.

    2. Write it down. I’ve wrote it down in this post, but you should write it down on a piece of paper, in an email, or in an online collaborative space like Google Docs or Google Sites.

    3. Must be measurable. Track how much we make using Quickbooks Online or online through Google Docs spreadsheets. Income – Expenses = Profit or Assets – Liabilities = Owners Equity.

    4. Must be time-sensitive. Lets say the goal is to make an additional $40,000 by May 30.

    5. Must be yours. I came up with it, but you must make it your own.

    How to Build a Team

    This one is harder, but nothing easy is worthwhile so lets get at it. Any and all team members must buy into the goal. If they don’t then they shouldn’t be a team member. Because the function doesn’t work without the goal, we have to have team members focused on the goal. When the focus is on the goal, the team can work on the next part of the function, which is defining a product. Notice how the product was not thought of before the team was created. This is important and on purpose. Jim Collins in his book, “Good to Great,” tells the story of Hewlett and Packard, having their first meeting, “Agenda: Decide what products we are going to sell.” They had the right people with the same goal, to make a successful business. They ironed out the who before ever worrying about the what and how.

    How to Define a Product

    This one is harder still, but now you have a team to help. First, state the problem you are trying to solve. This is critical. What is wrong that you are trying to fix? What can you do better than anyone else? How can you differentiate your product or service from another company’s? Before you look under any rocks and start wasting your time Googling the universe for problems, look within yourself. What frustrates you? What needs changed? What have you complained about in the last week? What, if anything would you like help with? What would you like to know more about? I for one would like to know what people are searching for when they want to find things. That way, I’ll know what keywords to use in order to attract those searchers to my websites. It’s simple, understandable, and a definite problem for not just me, but every person who has a website. So for now, lets go with that. Our product (for this conversation) will be in offering information on what people are searching for in order to find their products. This seems like a product that might be able to help us achieve our goal and will give your business a reason for being.

    How to Define a Market

    A market is more than a geographical area or demographic of people, its also a category of product or service. Regardless, its the marketplace in which you think you’ll have the best opportunity to make a sale, which helps you with your primary goal, the goal without which your business would fail to function. Focus on the outcome, the goal. Realize how many sales at your products range of prices you’d have to make in order to reach your goal. For micro-niche and blog sites, use Google’s External Keyword Tool to see how much traffic a given set of keywords within a market is getting.  Use search volumes as well as existing competition (if someone is selling it, someone is making money on it) to determine whether or not the market is viable.  If you have a brick and mortar business, try a Craigslist or eBay auction of the product or service first as a prototype to test.

    How to Advertise

    Define what makes you different and/or better than your competition and hammer it home. Focus on your market and be an expert on your product. Don’t spend any money on advertising until you have exhausted all the free ways you can promote yourself online and through social interaction. If you feel you have exhausted all of your free advertising and you still have no sales, go back to “How to Define a Product” and think of a new product. This new product may then need to define a new market and then advertise again. Repeat until you reach your goal. As Winston Churchill said, Never give up. Never. Never. Never. Never.”

    If you liked this article, you might also like reading The Confidence-Success Loop.

  • Review of Wired 19.01

    Wired 19.01 (January 2011) has an article entitled “Y2K + 11: Will Asian Computers Freeze on January 1?” where Patrick Di Justo reveals how both China (including Taiwan) and North Korea may have Y2K11 problems due to both cultures resetting their calendars in 1912 to Year 1. 2011 is thereby the first three-digit year (100) and both countries use flavors of Linux that only allow two digits for the year. With the current tinderbox that exists between North and South Korea, you would think this would get more play in the media, but this is the first I had heard of it. Well done, WIRED.

    In the middle of the magazine is a section on aliens. There is an article by Mike Ryan called “Space Race” that talks about the three alien movies coming out in 2011. The first one is Battle: Los Angeles, the second is Paul, and the third is Cowboys & Aliens (check out all the trailers on our Facebook page). I see this as more preparedness for the upcoming disclosures about the ongoing UFO wars that the world has been engaged in for the last 80 years. Paul features a gray, which is the top-right one in the Ken Grimes picture on the “Alien Entities Who Have Been Seen Visiting Our Planet” picture in the section below.

    Rachel Somerstein wrote an article about Ken Grimes’ art being featured in the Philadelphia Museum of Art, the Outsider Art Fair, and New York’s Ricco/Maresca Gallery. Grimes uses art to display his ideas about extraterrestrial life and from what I can see, he’s done a pretty good job of identifying alien space ships and entities.  The picture on the left, just below “Cheshire Eng Jodrell Bank Lovell”, which refers to the Jodrell Bank Observatory in Cheshire, England, which is ran by Lovell, features icons of alien space craft.  It covers the six standard crafts, some of which I mentioned on October 1, 2010.  The top hats (third from the left) have been seen in the northwest United States with the cigar-shaped craft (second from the right) being seen over Indiana.  The saucers (far right) were seen over Washington DC.  I wasn’t able to find much information out about Ken Grimes other than this article by Charles Russell.

  • An Introduction to Staffing Models

    Staffing Models is initially a two-step process of identifying the organizational mission, what metrics to track, and what processes there are. The next step is to find out how long it takes to do each task, how much volume they typically have, and then provide the tools to both track and report that information.

    Utilization Reports

    Utilization is a measure of how much work was accomplished with the hours spent. Tasks are determined to take an average amount of time, which is multiplied by task volume and divided by billed hours. The utilization report displays that information to evaluate and track the effectiveness of a department. Utilization is reflected in percent and optimal performance is considered to be between 90% and 100%.

    Excess Capacity

    Excess Capacity is the difference in time between what it should have taken to complete production and what we actually used to complete production. The white bar represents the time needed to complete the reported volume for each day and the red bar represents the excess capacity for that day in hours. Excess Capacity is a complementary metric to use in conjunction with Utilization to help management make staffing decisions in the future.

    Dashboard Views

    Executive dashboards provide an up-to-date snapshot of ongoing performance and trends. Dashboards should deliver clear, visual displays of a large set of data where performance is measured against expectations, goals, and deadlines. Production data is entered into the another tab within Excel for the appropriate date. The result is presented in final form on the “Report” tab, which is seen here to the left. This particular report uses micro-charts called sparklines and is designed to contain a rolling quarter year. This means the report will always have the previous two months data and the current months will be entered real-time at the bottom. Each rolling quarter is then archived for historical reporting at the end of each month.

    Wedding Clocks

    “Wedding Clocks” are a newly developed method for visually representing deadlines using special in-cell charts. In this example, the chart indicates the expectation for branches to have all batches transmitted by 6:30 PM, which is straight up and down on a clock. This chart points straight down (50% filled) at that goal and any result that varies from that (greater or lesser than 50% filled) is a reflection of meeting or exceeding that goal. Wedding Clocks are called this because Erich Stauffer noted that it is good luck to start a wedding at the bottom of the hour to catch the upswing of the second-hand. The range on both sides of 6:30 in this example is 3 hours (from 3:30 to 8:30).

  • Business Analyst Glossary of Terms

    Business Process Management (BPM)

    A field of management focused on aligning organizations with the wants and needs of customers (internal or external). It is a gestalt view of management that promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. Business process management attempts to improve processes continuously.

    Business Requirement Specifications (BRS)

    A document that contains the basic requirements of customer that are to be developed as software project cost schedule target dates.

    Component

    Applications in the R/3 System are combinations of components. The components are held in a hierarchy, which can be displayed in the R/3 Reference Model, that describes the functional scope of the applications in a top-down fashion. The number of components and the number of levels an application has in the hierarchical structure depend on its functional scope.

    Enterprise Area

    Part of a business area. An enterprise area is a grouping of organization units that have closely linked work and contribute to discrete business processes. The Enterprise Area is the first level of the
    Process Flow View within the Business Navigator. Examples are Procurement, Logistics, Organization and Human Resources, and External Accounting. Also called Enterprise process area.

    Event-controlled process chain (EPC)

    A graphical display form used in the R/3 Reference Model to describe in detail the logical sequence of business functions and events carried out by the R/3 System. The EPC is the fourth level of the model and
    may be accessed by drilldown from the scenarios and processes.

    QDAR

    An acronym for “Question, Data set, Analysis, and Report / Revision”, which are the four primary steps to any business analysis.

    Requirements Analysis

    A document that determines the needs or conditions to meet for a new or altered product, taking account of the possibly conflicting requirements of the various stakeholders, such as beneficiaries or users.

    Software Requirement Specification (SRS)

    A document detailing the functionality, interfaces, performance, attributes, and design constraints of a project.

    STAIR

    An acronym for a problem-solving strategy that “States the problem, Defines the Tools, Algorithm (procedure), Implement, and Revise,” which was developed by Andy Harris at IUPUI’s Computer Science department. These are are general steps that can be used to theoretically solve any problem.

    Structured Analysis (SA) / Structured Design (SD)

    Methods for analyzing and converting business requirements into specifications and ultimately, computer programs, hardware configurations and related manual procedures.

    Zero One or Infinity (ZOI)

    A rule is a rule of thumb in software code suggesting that arbitrary limits on the number of instances of a particular entity should not be allowed. Specifically, that an entity should either be forbidden entirely (zero), should be allowed once (one), or any number (infinity) should be allowed. Here are some examples of the zero or infinity rule.

  • The Zero One or Infinity (ZOI) Rule

    I learned something yesterday that I wanted to share really quick: there is no two in programming, but this can apply to troubleshooting and database design too.

    What this means is that there are units that either aren’t allowed to exist, are allowed (or supposed) to exist only once, and those that are allowed to have no limit – but there is no other kind, no other in between those types.

    For example, in Excel there can only be one name for a cell or range, but a near infinite amount of cells.  In Access there can only be one primary key, but a near infinite amount of entries.  In HTML there can only be one H1 tag, but many H2 tags.  In CSS, div id names must be only used once, but div classes can be used more than once (infinite).

    It’s called The Zero One or Infinity (ZOI) Rule.

  • Change Management

    Change control within is a formal process used to ensure that changes to a product or system are introduced in a controlled and coordinated manner. It reduces the possibility that unnecessary changes will be introduced to a system without forethought, introducing faults into the system or undoing changes made by other users of software. The goals of a change control procedure usually include minimal disruption to services, reduction in back-out activities, and cost-effective utilization of resources involved in implementing change. Change control is a major aspect of the broader discipline of change management.

    The following is an example of a change control process:

    Minimize Disruption

    • Work during off or down time.
    • Test changes first (if possible) and/or roll out to limited group first.
    • Notify users who will be affected and/or front-line staff.

    Reduce Any “Back-out” Time Activities

    • Create/save back-ups of any files changed.
    • Record what files are being changed any configuration changes to settings or within files.

    Efficient Utilization of Employees

    • Empower affected users and/or front-line staff to give feedback on any issues and/or improvements.
    • Have the most experienced person with the system make the changes.

    Review Process

    Before

    • Why is the change being made?
    • Is the change approved? By who?

    After

    • What was the effect? Was it the desired outcome or something different?
    • Do we need to roll back the changes?

    Report Process

    • What metrics to report?
    • Report to who?
    • How often to report?
    • Suggest or ask for needed or wanted changes.

  • Business Process Management

    Business Process Management (BPM) is a field of management focused on aligning organizations with the wants and needs of clients. It is a holistic management approach that promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. Business process management attempts to improve processes continuously.

    A business process is “a collection of related, structured activities that produce a service or product that meet the needs of a client.” These processes are critical to any organization as they generate revenue and often represent a significant proportion of costs. As a managerial approach, BPM considers processes to be strategic assets of an organization that must be understood, managed, and improved to deliver value added products and services to clients. This approach can be supported, or enabled, through technology to ensure the viability of the managerial approach in times of stress and change.

    BPM enables business to respond to changing consumer, market, and regulatory demands faster than competitors – creating competitive advantage. Erich Stauffer practices business process management.

  • 12 Ways to Make Money Online

    How to Make Money Online

    Making money online is not always easy.  It’s work just like any job, but it seems to have this allure to it.  I think that allure has a lot to do with a feeling of being your own boss or getting as much out of something as you put into it.  At your job, no matter how hard you work, the pay is the same (in the short term), but when you work for yourself, the dynamics are different.  Making money online is essentially like running your own business.  Where “people have dreamed about owning their own business and have not followed through because of the investment in resources,” says Jim Griffith, head of eBay University, “the Internet allows people to at least try without making a large initial investment.”

    Here are 12 ways you can make money online

    1. Online Ads – Pay-per-click (PPC) links are ads that display on your site, served up by advertising programs like Google AdSense or Chitika are a great way to get started, but don’t expect to get rich off of it unless your site has a lot of traffic. The good thing is you get paid regardless of if the advertiser makes a sale, but the bad thing is they don’t usually pay that much for the click. You don’t have to pick out what ads will display. Google will detect the type of content on your site and show relevant ads automatically. Chitika works a little differently. It goes by what a visitor searched for in order to find your site, not your site’s actual content. Although they may be one in the same, they don’t have to be. Also, Chitika ads will not show up if you browse to your site, but Google Adsense ads will. You’ll want to have good, original content either way to attract visitors and the best ads. Google saves its best paying ads for sites that rank higher and have better traffic. Google also requires that you have a privacy policy on any website displaying their ads or you could risk losing your account. If you don’t know what to write, you can use our privacy policy as an example.

    google-adsenseOnce you have an account setup, you can start to add the code to your blog, which serves up the ads.  When people click on the ads, you make money.  The more content you write and the more promotion you do, the more people will come to your web site, which increases the chance that someone will want to click on an ad.

    2. Affiliate Programs – Pay-per-purchase (PPP) links are affiliate ads that display links to products or programs where you get a percentage of the sale whenever a purchase is made. Percentages vary based on the product, manufacturer, and affiliate program. Amazon Associates, an affiliate program from Amazon, goes from 4% to 15%, but it’s a tiered scale that requires making sales at lower percentages before you can make sales at higher percentages and it resets every month. LinkShare, another affiliate advertising program, lets you choose what advertisers to work with. Once you find one you would like to promote, you can apply to add them as a product. If you run more than one site you’ll want to set up channels for each site under your account settings. Each channel will have to apply for it’s own advertiser programs even if you’ve already been approved on another channel. Commission Junction and Google Affiliate Network are two other good examples of affiliate advertising networks like LinkShare. While clicks and purchases can be less for PPP links, the payouts can be higher per purchase, making this a good next step for those who want more than just PPC links on their website.

    3. Direct Sales – If you’ve got a product to sell, whether it is something you’ve made or something you have bought to resell, if you are selling it on your site you are doing direct sales. You may also have to fulfill your own orders unless you work with an order fulfillment service. The advantage of direct sales are that you get to control how much mark-up you add to the product, but the down-side is that you are on your own for dealing directly with payment processing systems, shipping, returns, and other logistical issues that may come up. If you’ve got a good product to sell, and you’re just starting out, you might want to partner with an already established distribution company like Amazon.com, ClickBank, CafePress, Zazzle, or Threadless, depending on your product. This is a form of commissioned sales, which is the next way to make money online.

    4. Commission Sales – If you’ve created a product to sell, but don’t want the hassle of selling directly, commissioned sales is the way to go. For a share of the revenue, the distributer will handle the store front, the payment processing, and returns. All you have to do is ship the item and cash the checks. Some distributers will even store your items for you or make them on-demand. For example, ClickBank will store your ebook for distribution and CafePress, Zazzle, and Spreadshirt prints your items on t-shirts or other merchandise at the point of order. This is kind of like micro-manufacturing or on-demand manufacturing, but essentially it means very low inventory costs, which allows them to charge a decent amount and still give you a cut. You create the idea, they sell it, and give you a commission. If you want more of a commission over time, you can open your own web site, which would be a step back into direct sales. Examples of distributors include Amazon.com, iStockPhoto.com, ClickBank, Zazzle, Spreadshirt, and CafePress.

    5. Online Ad Sales – Once your site has enough traffic, you can start to sell ads directly to advertisers. This is a form of direct sales, but the product is ad space on your site that you would normally give to Google Adsense, Chitika, or an affiliate link. The upside is that you can potentially charge more for the space than Google or Chitika would give you for the same space, but you risk not making any direct ad sales at all. But if you have a large enough following and can prove visitor counts, then you may have a good chance in selling ad space to an advertiser interested in marketing to your readers. Again, the key is good content. That’s how it all starts.

    6. Domain Flipping – For those who are great at finding niches, can fill a site with content easily, know how to promote a site, and not get too emotionally attached, domain flipping is for you. It has great potential to make a lot of money and can be quite profitable if you know what you are doing. There are sites out there like Flippa or Sedo which specialize in flipping domains and there are are many tutorials out there to teach you the best way to do so. Selling a domain is equivalent to cashing out of a business you’ve started and can be a good feeling, but it’s not for everyone. Sometimes you’ll wish you never sold and then there are just those who like the slow and steady, latent income over the hussle of constantly buying and selling domains.

    7. Convert Your Content – Turn your blog into a book or your site into a magazine or your Twitter account into a television show – yes, all these things have been done before.

    While the last seven examples have been about your own content or site, the next five focus on other things you can do online to make money:

    8. Online Auctions – Sell things on Ebay or Craigslist. This can only last so long unless you go out and get more to sell, however if you get good at it, you can help other people sell things online as well, charging up to 33% commission on the sale.

    9. Online Surveys – If you know where to find them, there are plenty of sites out there that will pay you to fill out surveys. You may have to fit into a certain type of income or age group, but eventually you will find one that you can fill out for cash or gifts. This certainly won’t replace your day job, but some enjoy doing it on the side for fun money.

    10. Micro-Jobs – This is another low-on-the-totem pole idea that is worth mentioning, but will not make you rich or allow you to quit your day job. Sites like Amazon’s Mechanical Turk will allow you to bid for jobs that pay very small amounts. The upside here is speed. If you can do the jobs in a short amount of time, then your rate of pay can increase. It’s hit or miss on getting accepted to do the job though so you take a risk on how you spend your time. Try and do an opportunity cost analysis first to see if there are better ways to spend your time to make money – online or off.

    11. Freelancing – There are lots of freelancing sites out there to find work to do, but one of the most popular sites is Elance. They all pretty much work the same, though. People who need to get stuff done can post their wants or needs up on the site and people like you can then bid on doing the work. If your bid is accepted, you do the work, get paid, and the connecting site takes a commission off the sale. If you do enough, you might be able to shake the commissioned sales model and go direct, essentially starting your own business, which is the next example of how to make money online.

    12. Start Your Own Business – This is part of the American dream and very easy to do online. You can even get incorporated online, depending on your state. Whether your business idea is to become a consultant, sell a product, offer a service, or just blog for profit, starting your own business has tax benefits as well as making you feel a sense of pride. I’d recommend it to anybody who wants to experience the free enterprise system to the fullest.

    Read Forbe’s Eight Ways to Make Money Online for more tips on how to make money online.

  • Merry Christmas and a Happy New Year 2010

    As a fellow business owner I can understand that it’s been a wild ride over the last couple of years.  Since I created Erich Stauffer back in 2007 we have seen markets rise and fall, businesses start and fail, and entire economies collapse.  Next year promises more of the same, or worse, but we have reason for hope.  There will always be a place for the kind of business owner that adds value to each customer interaction because people will always have needs to be met.  Meeting customer’s needs and exceeding their expectations no matter what happens will continue to pay dividends despite the economy.

    We have gone through several changes since 2007. We added more services as our customers have asked for them, such as search engine optimization (SEO), social media management, and traditional advertising assistance in addition to our original web design and development services.  Jason Cobb, Chris Hendrickson, and most recently my wife, Suzanne Stauffer, have all worked hard to serve our customers since 2007.

    Jason Cobb and Chris Hendrickson have served as executive and sales managers, respectively, but will both be transitioning into sales support role part-time as they take on new roles in other endeavors.  Because of Suzanne’s work over the last year I have promoted her to Marketing Director and Vice President of the company, while I am remaining as CEO. In this role I lead and guide the direction of the company.

    I want to personally thank you for your business over the last year and together look forward to not as things are, but as they could be.