24 Hours in the Life of an Entrepreneur

This is just one day…a Monday…of my life. I want people considering starting their own company to remember just how much time and effort it takes to make it happen, because one of their competitors could be a dude like me.

 

8am: Wake-up to an email from USPTO that a legal action has been placed against one of Spirit and Groove’s® trademarks and we have forty days to respond.

8:15am: As I shove oatmeal into my mouth, I investigate the claim and the party bringing it against my company. I find it legit, but winnable. However, it could be extremely costly to challenge. A HUGE decision must be made that will be 90% on faith, impacts my entire business plan, and could hinder my personal finances for the next few years.

9:00am: My regular job begins. Currently booking and contracting nine lounges for the next three months, two holiday weekends of parties for fourteen, managing the company social and website, and fielding inbound applicants.

1:00pm: Lunch-break and P90X workout…still fielding company emails.

2:00pm: Back at the daily grind.

3:30-3:45pm: Afternoon break, contact lawyers to represent Spirit and Groove® in the claim.

6:30pm: Filming Spirit and Groove’s® weekly Drummer Challenge. I record myself drumming, then green-screen intros.

7:00pm: Editing footage and preparing social for Wednesday’s launch of the video I just shot.

9:30pm: Work on Lesson 12 from Rosetta Stone® Spanish.

10:00pm: Open a company checking account and secure a company credit card after updating finances.

11:30pm: Begin investigating Angel Investors.

12:30am: Find a suitable business plan template and get to work.

2:00am: Bed.

Capitalism isn’t a dirty word.

Marx believed that capitalism was purely negative and that it fed the bourgeoisie graciously at the hands of the proletariat. This made sense when he and Engels wrote the Communist Manifesto in 1848. They had yet to see how capitalism would (and continues) to evolve into a driver for social change.

1.1% of United Airlines‘ stock (or $255 million) was lost today, because consumers demanded vengeance due to the Airline’s unacceptable behavior stemming from how they forcefully removed a customer when they overbooked a flight from Chicago to Louisville days before.

Had the government intervened, it would have taken years for this issue to be resolved. Millions would have been spent in lawyer’s fees, regulation changes, committee building, and analysis. However, only a very small percentage would have been paid by the airline in any type of “punitive”damages.

Instead, the company got flogged publicly on social media and lost millions in market cap overnight, which forced the major airline’s hand to “make things right” not just for the man forcefully ejected, but a new breed of consumer. One who demands fair trade coffee, responsibly sourced salmon, and their brethren to fly home without being bloodied by some corporate bully.

Modern day MBA courses spend a lot of time explaining the importance of Corporate Social Responsibility and this is why. Today, the business world moves too fast. One seemingly small error, or worse a hiccup in accepting responsibility and efficiently correcting the wrong, can quickly become a global phenom. And with markets just as fast, that word-of-mouth on crack will transform into social justice.

This is something that Engels and Marx didn’t have to deal with in the late 1800s and while there is still much room for improvement. The proletariat do have a weapon to knock the bourgeoisie off their high horse, which will continue to enhance the capitalist relationship amongst classes.

 

CwF + RtB in the Drumming Community

Spirit and Groove’s Instagram presence is being established as a community of drummers to share their beats, ideas, drum-pinions, and grooves.  Check out our recent promotion video.

 

 

We do this because: (1) we totally dig drummers and want to spend as much time as we can hanging out with people who are generally more happy than anyone else; (2) it is part of our marketing plan, which is founded on the Connect with Fans + Reason to Buy (CwF + RtB) model.

 

Nine Inch Nails frontman, Trent Reznor coined the term CwF + RtB during his post Napster career. Like those around him in the music industry, Reznor needed to find ways to create his own stream of revenue without the assistance of major label deal money that had disappeared with the collapse of physical music sales.

 

CwF + RtB is one of those methodologies that is so simple it is complex (or we make it so). Basically, you build a fan base and then give them reasons to buy into your brand.  The math totally makes sense.  If you have a loyal fan base of 10,000 fans and you get them to spend $100 per year on your brand. You earn $1,000,000 per year.

 

I would say $1,000,000 per year is a good chunk of change for any small business and one that is completely reachable if your foundation fanbase is world-wide and within a supportive niche. This is why we chose it for Spirit and Groove.

 

Plus it is a REALLY cool way to build a company.

 

I mean, we totally dig this. For the first years of our business we have to concentrate on connecting with, watching, listening, and learning from drummers.  For a drummer, what could be better?

 

So, if you play the drums or like to groove. Connect with @spiritandgroove on Instagram and tag us in your groovy videos. As of the publishing of this blog, we are within 200 followers of hitting 10K on our feed and when we do that, we will celebrate with deals and monthly contests where community involvement will be the key indicator of how many drum tees we give out and whom earns that drumming clothing.

 

 

 

 

Three Website Overhauls in Three Months

Jeremy Larochelle Recent Web Design Projects

 

For any of you who don’t know (or haven’t read my resume), I studied graphic design at a very young age and have been involved in the art-form through some amazing changes. When I started at the age of 18, computers (or should I say the MAC) was just being introduced to the medium.  While working as a photojournalist for a local paper, I started out by actually developing my own film, making prints, and pasting them up on the broad-sheet.  Soon, we moved to an AGFA 35mm scanner that cut out half of those steps and within two years. I was fully digital, sending the next day’s stories to press over this new thing called the World Wide Web.

 

Fast forward about twenty years and I have just finished revamping not one…not two, but three websites.  The first was my personal site, www.jeremylarochelle.com (hint: it’s where you are right now).  My focus was to tell my personal brand, which in itself can be a lengthy journey, and track my thoughts in a number of areas I am passionate about.

 

Jeremy Larochelle's Personal Branded Website

 

The second was a tandem-effort with a Google social media expert to revamp my employer’s, Mike Moloney Entertainment’s website www.mmec.com.  Our goal was to streamline our procurement funnel, focus on our strongest product offerings…entertainment for cruises and casinos, and to tell our brand story in a simple way.

 

MMEC Cruise and Casino Entertainment Solutions Website

 

Finally, I revamped my online drumming t-shirt brand, Spirit and Groove www.spiritandgroove.com.  I am working on a more in-depth post outlining this move, but let’s say. The goal of this overhaul was to tell our brand story and increase conversions from the vast amount of traffic we have developed thanks to our social procurement funnel.

 

Spirit and Groove Drum T Website

 

 

I am finding web design to be an exceptional way to tell a brand’s story, connect with consumers, and to fill any marketing funnel regardless of product type. During my years working in-print, it would have cost thousands of dollars and just as many hours of time to reach a fraction of the people we reach online and through social media. However, the really cool thing about web design is its organic nature.  Just like an old-school painter, I can throw down a brush stroke. Step back, take a look, and make adjustments. It let’s my creative mind constantly adapt to what is happening around me.

 

Let me know what you think about the revamp of these three brands and stay tuned for more updates!

 

EXTRA, EXTRA, Social’s All About It!

 

An old time News Stand

Copyright All rights reserved by mwr83 from Flickr Creative Commons

 

I started my career as a photojournalist at the age of 18. The local newspaper had hired me after I investigated a minor scandal at my high school, which got a lot of people in some hot water. This landed me on their radar and eventually on assignment for a Pulitzer-Prize winning editor.

Oh wait.

For all of you that don’t know, a newspaper was a printed version of say…Facebook. The only difference was instead of paying with likes, loves and shares you paid with real cash to see a daily tally of what everyone in your hometown was up to.

The economics of a newspaper are quite simple.  Present enough relevant knowledge to attract advertisers to buy up space surrounding that information. A consistent run of good stories drove-up a key metric in the news business – subscriber rates.

Subscriber rates are important because, in a nutshell, they guarantee to your advertisers how many people will have access to their marketing messages. If the newspaper has more subscribers, they can charge those advertisers more money. To increase those subscriber rates, newspapers offer readers a deal to switch from just picking up the paper at the store, to having it thrown on their front porch by a crazy haired mother whose kid didn’t get up in time to pedal his route before school.

I like to equate social media to the economics of the newspaper industry. However, the model is slightly different.  First, we still have businesses looking to tell consumers about their products and regardless of what you have heard about The Long Tail, Niche Marketing, and On-Demand Production. Deep down inside, marketing is a numbers game and admen (and adwomen) know that the more opportunities to see – the better their chances are of making a sale. Things change slightly in the “subscriber” section of our social model, because our customers no longer must pay to subscribe to relevant information. Instead, they are now in control of which channels they will accept through a Like or Follow.

The major change in the social model is the blurring of the line between advertiser and news. Many traditional journalism brands such as CNN, The New York Times, and USA Today still follow the basics of the elder model. They provide the information people want to see and advertisers pay to show up beside those stories. I will assume that this is because they too see the similarities between their past “ink” audiences and today’s “click” consumers. The problem arises with the many organizations who do not understand this similarity between print and digital. They either un-wittingly leave out the information component of their online publications or purposely remove them to utilize the entire space as nothing more than a billboard where they bombard their audiences with sales pitches and marketing messages. Interestingly, these same publication tactics exist in the print medium as well. They come in the forms of penny savers, car flyers, and grocery store circulars that probably spend more time at the bottom of a bird’s cage than in a consumer’s hands.

So, why am I explaining the similarities between the news medium of yesteryear and today’s social advertising strategies?  Aren’t newspapers dying off?

Yes, print news is dying. However, our appetite for information is not. We have become an interconnected species hungry for more information. YouTube has made millions on videos that teach you how to fix your own car, grow your own vegetables, or learn calculus among a host of other subjects. Facebook connects thousands of people everyday to share their life stories, anecdotes, and views on everything under the sun and, according to some sources, over two million blog posts are published each day on a range of topics. We have become a society in demand of more information than those before us. However, unlike our predecessors who wound up with ink on their fingers from thumbing that information we cleanly click and swipe.

With that being said, I would like you to return to the newspaper model I described earlier. Think about its simplicity. Provide enough relevant information to attract a sizeable audience and charge advertisers to surround that information. Now apply that theory to your social pages. Provide your consumers with enough interesting information so they return to your pages over and over again. In the marketing world, these are called opportunities to see. The more you have the statistically greater your chances will be for a positive result such as an interaction, or better yet – a sale. It doesn’t matter if you do not want outside advertising on your site. Instead, you can simply display your own messages. Just remember to empower your social team to focus on the “news” element first and your long-term ROI will be greater.

Sure, newspapers are dying, but their economic model can be a powerful tool in today’s social-focused ad world. All of the basic elements are there. You have a medium for news distribution and you have an audience hungry for that information. Put those elements together and you have an opportunity to create a sales channel for any internal or external brand.

But only if you can put the news first.

Solving The Casino Millennial-Baby Boomer Marketing Funnel Conundrum with Entertainment

Millennials Versus baby Boomers in Gaming

What do Millennials, DJs, and funnels have in common?

The answer may surprise you. As fun as the three combined may sound, it isn’t the set-up for a new drinking game. Instead, the three components come together to help us understand the future of the gaming industry and how we can capitalize on an impending change now efficiently and cost effectively through entertainment.

The Millennial demographic was the topic of discussion at the 2015 Global Gaming Expo in Vegas, as this collection of consumers brings with them a huge opportunity and perhaps an even larger challenge. According to the PewResearch Center, Millennials are projected to surpass Baby Boomers as the nation’s largest living generation 75.3 million to 74.9 million by the end of 2015. Normally an increase of this magnitude would be a welcome sign in any market – a fresh crop of new consumers to replace the old. However, this new charge doesn’t appear to be responding on the gaming floor in the same way as their ancestors. Research is revealing that Millennials typically find current slot products uninteresting, seek skill-based games, want a social atmosphere, and prefer night clubs over gambling – pretty much the opposite experience that has been cultivated collectively by the industry up until now. This has left many in unchartered waters as they seek out what drivers will lead this next generation to the gaming floor. According to the CEO of the American Gaming Association, Geoff Freeman, there is “going to be a lot [of] throwing things up on the wall and seeing what sticks.”

Freeman’s statement provides us with a key element regarding Millennial based marketing in the casino business. It suggests that they may not be opposed to gaming, but rather they are sitting at the top of the marketing funnel, a place where consumer behavior teaches us that prospects are still learning how the intended products and services can enhance their lives. This, in turn, tells us two things. One, it will take time before this group will take the place of the profitable consumers currently on the gaming floor. Second, because the head of the funnel is larger than the spout we will need to fill it with more prospective Millennial gamers so a reasonable amount can filter down the funnel and eventually replace their predecessors. Taken together, this creates a unique challenge as we are left with two disparate groups within the funnel. Sitting at the bottom are previous generations who are converted, loyal, and most likely advocates for a particular brand. As such, they provide the property with the majority of its revenue at this moment in time. However, the longevity of a casino’s success will eventually rely on getting enough Millennials to replace them at the bottom of the funnel.

So how does a casino’s marketing team attack this situation? With the current mix of generational consumers nearly split down the middle, you cannot simply cut the budget of one and give it to the other. Especially when you are taking away from the profitable sector in the Pre-Millennials and allocating it to the generation that is still contemplating if your services are the right offerings for them. For these same reasons, it would be unwise to dramatically re-align your entire marketing message and risk alienating those gamers that currently help you keep the lights on. What you can do now is to re-align through your entertainment offerings– especially if you are a larger entity with various programming opportunities such as lounges, clubs, showrooms, pools, and restaurants. Take Las Vegas where many prominent casino brands have adopted a tent pole design that “props up” the organization by attracting non-gaming individuals to the property through key entertainment offerings. Many big names on the strip include four elements in their portfolio: (1) a branded show such as Cirque, The Blue Man Group, or Absinthe; (2) a headliner such as Céline Dion, Carrot Top, or Britney; (3) a celebrity chef/kitchen such as Gordon Ramsay, Wolfgang Puck or Emeril Lagasse; and (4) a big-name DJ such as Steve Aoki, Dash Berlin, or Tiësto.

These poles achieve a lot of good for the casino. For one, they create additional income centers for the property. In 2013, an article in The New Yorker reported that half of Steve Wynn’s profits were coming from his dance clubs with the gaming floor beginning to take a back seat to bottle service and confetti cannons. The pole’s also provide powerful branded ammunition to compete in Vegas’ noisy market. Today, nearly every major casino on the strip features a high-end night club and outlandish pool parties stacked with brand-name DJs. MGM has Hakkasan with Steve Aoki and Tiësto on regular rotation; Encore has XS with the likes of Diplo, Zedd, and Manufactured Superstars; The Cosmopolitan has Marquee with Cash Cash and Dash Berlin. You can grab a Gordon Ramsay Burger at Planet Hollywood or one of his steaks at Paris before you head out to a Cirque de Soleil show at AriaNew York New York, the Bellagio, the MirageMandalay Bay or Treasure Island. Any of these offerings could be destinations in and of themselves in other markets, but in Vegas they are revenue centers, marketing machines, and perhaps most importantly investments in a Millennial generation that hasn’t even been realized yet. Why? Because they continue to bring potential new prospects onto property, which places them in the mouth of the funnel where they begin their journey of learning how gaming can enhance their lives and (hopefully) move down into the spout to become brand ambassadors.

This pole design is not exclusive to Las Vegas or even properties with big brand names and even bigger budgets. Many casinos outside of Sin City have multiple bars, more than one restaurant, and spaces that can create revenue and achieve long-term branding goals if properly utilized. This makes it very plausible to craft a diversified entertainment program that appeals to your current profitable customers while luring future prospects onto the property. You can continue to appease your Pre-Millennials with showroom entertainment while hosting afternoon pool parties with regional DJs that drive those Millennials across your floors where they can hop in the funnel and begin the process of learning about your brand and how it fits in their lives. Clubs, lounges, and bars can easily be rebranded by adjusting the entertainment offerings towards one side or the other and then allowing the demographic shift to happen naturally (or with a little marketing push if needed), just as adjustments in menu selections and price points can sway the clientele in a chosen restaurant. These are all efficient and cost-effective modifications that can be done without sacrificing your budget or the overall brand of the property and they can help protect your very valuable current assets in the Pre-Millennials while positioning your property for long-term success with this next generation of prospective consumers by allowing them to investigate your offerings while your management team can learn what drives their behaviors, so your property is ready to capitalize when the time is right.

Lego Photo by Stefan Schindler from Flickr Creative Commons

Marketing Funnel from http://adamhcohen.com