Hartford Business Journal

www.HartfordBusiness.com • September 25, 2017 • Hartford Business Journal 21 HARTFORDBUSINESS.COM POLL LAST WEEK'S POLL RESULT: NEXT WEEK'S POLL: Which casino proposal site is better for CT? To vote, go online to hartfordbusiness.com Is Connecticut a smart location for a second Amazon headquarters? 47.3% No 52.7% Yes READER COMMENTS: " Sure, with two major fulfillment locations in the state (Windsor and North Haven in process), and the need presumably for logistics professionals, Connecticut can deliver what is needed." " CT continues to advance a non-friendly business attitude. We could be looking at a budgetary collapse overall, and our political leaders are seeking to continue to raise just about every tax there is. Any company considering to come here would probably get an incredible incentive to do so, as the state is in dire straights to get anything done from a business perspective." " The cost of doing business in this state is too high. Connecticut doesn't realize it but it is in competition with 49 other states. Why not improve the business climate here for all instead of picking winners and losers by giving large companies large tax breaks." BIZ BOOKS Kid startups teach entrepreneurship principles By Jim Pawlak "How to Start Your Very First Business" by Warren Buffett's Secret Millionaires Club (Downtown Bookworks, $14.99). Warren Buffet started his first business when he was six; he bought candy, gum and soda in bulk and sold the products individually. Capitalizing on Buffett's "You're never too young to start a business" theme, this book teaches kids the principles of entrepreneurship and fi- nancial responsibility. (There's plenty adults can learn, too.) Here are some key pieces of advice: Turn something you love into a business. Nine- year-old Cameron Johnson loved to draw. In 1994, he created one-of-a- kind stationery and greeting cards for family celebrations. Family, friends and his parent's coworkers wanted to buy the cards. Word spread and his Cheers and Tears business prospered. Johnson became a tween-age entrepreneur; through web- based ventures (the first was selling Beanie Babies on eBay) he became a million- aire by the time he finished high school. Find new customers for a popular product. When he was 13, Hart Main and his young- er sister sold candles for a fundraiser. He saw an opportunity to develop candles that would appeal to men — with fragrances like gunpowder, hot cocoa, fresh-cut grass, bacon and campfire. He chose soup cans, not glass jars, for packaging. Main saw a societal side to his business, too. His production workers were devel- opmentally disabled. Check out bccandle. com/mancans. The stories of kid entrepreneurs are seeded throughout advice and how-to templates. There's even a Square Reader included; plug it into a smartphone or tablet and kids can accept credit card payments. (Adults would find it useful for garage sales.) Jim Pawlak Book Review RAINMAKER How to succeed as a gig entrepreneur By Ken Cook T here is a great deal of focus lately on the gig economy and gig entrepreneurs. Uber and Airbnb are two obvious examples of the popularity of independence as a gig entrepreneur. I was speaking with a friend recently and her son is a prime example of a niche gig entrepreneur. He is a specialized pipe fitter. His skills place him in high demand with defense contractors, energy companies, pipeline companies, and the like. In essence, he trav- els in an RV to his next job. Not a bad gig for someone who is single and enjoys the independence. The downside to being a gig entrepre- neur is that many of them fail or barely get by. The reasons for failure are as varied as the number of failures. If you are an Uber driver or Airbnb host, you better excel at service, cleanliness, responsiveness and a total focus on the customer. Otherwise, poor ratings will doom you early in the game. The pipe fitter needs to continually be at the top of his game; without that his value diminishes over time. Successful gig entrepreneurs usually have three things in common — clarity of concept and execution, a value people pay for, and a focus on relation- ships. Clarity of concept and execu- tion — It requires a clear value proposition that is easily understood and experienced. The pipe fitter has a clearly defined skill that is easily understood by those who need that skill. The Airbnb host whose accommo- dations are first class meets a primary need customers have, and earns rave reviews. The Uber driver who makes the trip memo- rable, even if it's memorable because it is smooth and anxiety free, builds a fan base. If you want to be a successful gig entre- preneur, you need to address the overarch- ing question any customer would have — Why you? That requires clarity of concept and execution. A value people pay for — You must find someone who will pay for what you offer. After all, this is what business is all about. Develop a product or service to the point that it is sellable at a profit, and then go make some money. Underlying this principle is an understanding of the market you want to serve. Any gig entrepreneur can start in one of two places — with a unique product or service, or by identifying a market need not being met. In either case, a marriage needs to occur. The gig en- trepreneur needs to marry a need with a solution, hopefully a solution that would be unique to them. The pipe fitter is in a select group. The Airbnb host might be, depending on the accommoda- tions they offer. The Uber driver, not so much a select group. In each instance, the value offered is a direct result of the uniqueness of the marriage of offering and need. Customers recognize value and are will- ing to pay for it, especially when it satisfies a unique need. More importantly, custom- ers know when something is a commodity. Commodity offerings are evaluated mostly on price. Bottom line: Up the value of the offering in the context of the needs being met. Focus on relationships — No one gets there alone. The pipe fitter needs relation- ships and champions in the industries he serves. The Airbnb host and Uber driver form relationships with every guest or pas- senger they serve. They also form relation- ships with the Airbnb and Uber platform personnel. All of these relationships are critical to the ongoing success for any gig entrepre- neur. Satisfied customers are one thing. Satisfied customers who become fans and tell others is an entirely different category of relationship. Someone becomes a fan when the relationship evolves beyond just the transaction. Take the time to build a stronger relation- ship with every satisfied customer. The cumula- tive strength of one's relation- ships dictates how smooth the path is to new business and growth. A gig entrepreneur should market themselves first through their relationships. Build strong relationships and leverage those fan relationships for growth. Ken Cook is the co-founder of How to Who, a program on how to build strong relationships and how to build business through those relationships. Learn more at www.howtowho.com. Ken Cook Satisfied customers are one thing. Satisfied customers who become fans and tell others is an entirely different category of relationship. Turn something you love into a business.

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