Our 10th Review Our Blog is by Rick Fourie from Young Millionaires. He recently posted a review of the YE blog that you can visit here: Other Young Millionaires

Young Millionaires was birthed out of a passion Rick has to educate, network with and enjoy life alongside other like minded people. Rick feels that wealth creation is the most interesting yet diverse topic there is. Young Millionaires is all about our journey together. Make sure you take the challenge.

Thanks for the review Rich! If you are interested in doing a review, check out our Review Our Blog initiative for instructions.

Evan Carmichael

A frequent question I get asked is about Google banning websites. How do you know if your recent drop in rankings is because of a new algorithm update or because Google penalized your site?

This will be the first of a three part series on this topic to help website owners understand how Google’s penalty system work and what you can do to resolve any problems.

Check Your Site:www.yourdomain.com

The first thing you should do if you suspect that your domain has been banned is to enter site:www.yourdomain.com into Google. Doing this shows a list of the pages you have that Google recognizes in its index. For example, site:www.youngentrepreneur.com returned 51,000 results! I am also pleased to see that the blog is the second entry picked up by Google after the home page!

If your website is not showing up or just the home page is recognized then something is wrong. You stepped over the line by engaging in some sort of activity that Google sees as illegal and you are banned. Note that this is only the case if you were already in the index and you suddenly disappeared. If you are a brand new website, do not panic because you see no results. It takes time for Google to pick up your site.

What to do? If your site is banned, log into Google’s Webmaster Tools to confirm that you are indeed banned. Clean up the problem and submit your site for a reconsideration request. What can cause you to get banned? Google does not share all of the measures it tracks but according to its website:

Google may temporarily or permanently remove sites from its index and search results if it believes it is obligated to do so by law, if the sites do not meet Google’s quality guidelines, or for other reasons, such as if the sites detract from users’ ability to locate relevant information. We cannot comment on the individual reasons a page may be removed. However, certain actions such as cloaking, writing text in such a way that it can be seen by search engines but not by users, or setting up pages/links with the sole purpose of fooling search engines may result in removal from our index. Please read our Webmaster Guidelines for more information.

When you submit a reconsideration request you will have to tell them what happened. Show them that you know what actions led to the penalties, explain who was to blame (ie if you hired a SEO firm), and tell them that you will act in good faith not to cross the line again. The more honest and genuine you are the faster you will get back in the index. If you do not know what is wrong, read over the guidelines again or have an expert look at your site to give you some help before you ask for the reconsideration request.

Evan Carmichael

On Monday I wrote about the benefits of using press releases to help increase your company’s awareness and get more customers. Journalists are always looking for new and interesting stories to write about - it is their job. If you can provide a unique story idea that would be of value to their audience you are making their job easier and there is no reason whey they would not write about you.

On Monday I discussed the first two points of a press release strategy: choosing a compelling topic and writing the press release. Today I am going to complete the strategy:

3 - Build A Media List

The best press release in the world will not do you any good if you do not have a list of people to send it off to! You have to identify a fit between your release and the media outlets. Do not send a story about a new business idea to the sports reporter of your local paper, for example. Make a list of all the industry publications and local media outlets that you think might be interested in your story. Then go to their websites to get the email addresses of the reporters who cover your area. If you cannot find the email address take the general editor’s email address.

You might also want to consider using your partners to build your media list. When I first got started, with every partnership I built I issued a press release and asked for the list of my partners and offered to send the release out to both of our lists. I saved my partners some work and also got their media lists. Another trick is to use free services like Google News to see which reporters are covering stories similar to your topic. Get their names and build a database.

4 - Email the Reporters

Now that you have chosen an interesting topic, created the release, and built your media list it is time to email the reporters. The first thing to do is make sure you do not set off any spam filters. A trick I use is to put my PRs through my newsletter software program to get an estimated spam score. From here I can revise it so I maximize the chances of my emails being delivered. You should also use your captivating headline in the email subject so that the reporters are likely to open the email and read it.

A final tip to remember is to follow up! If you have not heard back within 48 hours, follow up with the reporter to make sure they received the press release and see if they have any questions. Follow up by phone with the most important ones. Even if they tell you that the story is not a good fit, you have at least made contact with the reporter and can find out what types of stories they are looking for so your next press release will be better targetted.

Good luck! I would love to hear some of your media success stories!

Evan Carmichael

One of our blog readers, Rich McIver, put me on to a post about 25 Alternatives To Venture Capital. Venture capital is not only one of the most difficult types of investment to get for a business, it is not always the right decision to go for as an entrepreneur. While they may bring expertise and contacts, many venture capitalists force you to grow faster than you may be comfortable with and should be carefully scrutinized before you sign an agreement with them to make sure you share the same culture and vision.

Since raising money is always one of the top concerns for young entrepreneurs I thought it would be useful to share some of the tips that Rich gave out.

He touches on the most well known alternatives including: Angel investors, private placement, and IPOs. He also suggests ways for entrepreneurs to bootstrap their companies (one can never have enough bootstrapping ideas!) like:

• Factoring, which generates cash flow through the sale of your accounts receivable to a “factor” at a discounted price for cash.
• Trade Credit is an option if you are able to find a vendor or supplier that will allow you to order goods on net 30, 60 or 90 day terms. If you can sell the goods before the bill comes due then you have generated cash flow without spending any money.
• Customers can pay you up front for your services.
• Leasing your equipment instead of purchasing it outright.

Some other inventive ideas that Rich discusses are:

• Licensing - Sell licenses to technology that is non-essential to your company or grant limited licensing to essential technology that can be shared.
• Launch Customers - Find out if you have any customers willing to fund research and development in exchange for the product produced.
• Sell Some Assets - Find an interested party to buy some of your assets (computers, equipment, real estate, etc…) and then lease them back to you.

Thanks for the tips Rich! If any of you have found other sources that have helped you get funding, I would love to see your comments!

Evan Carmichael

I learned about 23 year old Lindsay Terry from JuneauEmpire. In October of last year Lindsay thought about creating his own company to haul away the recyclables of the local businesses in his area. There were other companies that took trash away but not one that focused only on recyclables.

“I didn’t think much of it. (My wife) came up with the idea of starting a recycle pickup service. I didn’t think there was much money in recycling.”

Like any smart entrepreneur he did his market research before getting started. He made a flier promoting his idea and handed it out to local business owners. 15 clients expressed an interest in using his services and Lindsay was in business! He got so busy that he quit his job and brought on a friend to join him as a partner in the company.

“It is growing and growing. The interest and support from the community is phenomenal. We are signing on more customers every week. It is growing faster than I ever thought it would have.”

Lindsay’s success just goes to show you that if you do your market research and listen to your customer base you can succeed. Lindsay did not even believe in the idea himself before talking with potential clients. It was their enthusiasm that got the business off the ground.

Instead of starting with an idea that you think will work, talk with people who will actually pay for your product or service. See what their challenges are and make sure you are solving a real need.

Building around a customer who will pay you is the smartest way to start a business and make sure you can get through the early, often cash-strapped days of your company.

Evan Carmichael

I have always been a big fan of using press releases and leveraging the media to help grow your business. If you are bootstrapping and do not have a lot of startup capital the media can be your best friend. By convincing journalists to write an article about you they do the work of introducing you to thousands of people who otherwise would not have heard of you.

Here are the 4 key steps to a winning press release strategy:

1 - Choose a Compelling Topic

You need to write about something that is unique and interesting. If you are an average company doing average things in an average industry the media will not write about you. You need to have something different. I started with my first company when I was 19 years old. My two partners were in their early twenties as well so we always used our young age as a point to highlight.

With my current business I comment on a number of small business trends and issue a new press release three times a month. Each one is on a compelling topic that stands a chance of being picked up by journalists. It has paid off with numerous local, national, and international stories being written about me.

If you are stuck thinking of ideas to write about consider some of these: Report a new study of your own and your analysis or forecast, Create a contest and offer a prize that’s newsworthy, and Create an award to honor individuals in the community.

2 - Write the Press Release

The most important part of writing your press release is to choose a headline that will capture attention. If your headline is not compelling, the reporter will not read the rest of your release. You need to make sure the headline will convince the reader to continue reading. When you are writing the press release you should do it in the 3rd person (use it, he, she instead of you or we).

Always use quotes and information to back up your statements - journalists love statistics and it makes your arguments look more credible.

Keep the text to 300 words, make sure you answer the questions who, what, where, when, why, how, and always spell check before you send it off! It is also a good idea to have someone you know read it over before you finalize it. Finally, reporters are often on deadlines so make sure you provide them with the details on how to get in touch with you during and after business hours!

I will continue on with Part 2 later on this week - stay tuned!

Evan Carmichael

Our 10th Review Our Blog is by David de Souza from Tax Fix. The review he posted of our blog can be found here: YoungEntrepreneur.com - Blog Review.

Tax Fix / Tax Back is a blog that provides information about Business, Money, Tax and his company’s journey to increase its rankings in all of the popular search engines. The company is a UK business that specializes in tax refund services from the Inland Revenue for people who have earned less than their £5235 allowance or people who have left their employment partway through the year.

Thanks for the review David! If you are interested in doing a review and being profiled in our blog, check out our Review Our Blog initiative for instructions.

Evan Carmichael

I learned about Sylvester Chisom and Arthur Shivers from the Northwest County Journal. Friends since grade seven they came up with the idea for Showroom Shine Express Detailing while working together at a car wash company. “We noticed that people wanted more quality, more detail, more customer service.”

As with many young entrepreneurs, they started small and built their company slowly.  They first started out while in high school as a way to make extra money. “We washed our first car in the back of Sylvester’s mom’s salon. We took the car, washed it and vacuumed it.”

They slowly grew as word got around about their new service. “One day someone at the salon asked if we could come to their house and wash their car because they would not be coming to the salon. So we said, ‘Why not?’ That’s where the idea of a mobile car wash service came from.”

They continued washing cars as a part time job while they attended college. “In between going to school, we noticed every year that our clients were broken up about us going back to school.”

When they both graduated they looked at their options and decided to give the car washing business a try full time. “We were young. We had time. We knew if this didn’t work, we still had time to do something else. I originally wanted to work for the FBI, and Sylvester wanted to be a dentist. A lot of people didn’t see the vision. They questioned us and would ask when we were going to get ‘real’ jobs. They said we couldn’t wash cars forever.”

The company has since grown with the help of their mentors and loyal clients. They have two vans, a ten person staff and are looking at expansion opportunities. “We want Showroom Shine to become a household name. Maybe we can open a Showroom Shine self-service car wash. When people think of hamburgers, they think of McDonald’s. We want people to think of us when they think of car washes.”

It just goes to show you that when you start small, follow your passion, and listen to your customers, you can build a profitable company and have fun in the process.

Evan Carmichael

A while back I read a blogger’s suggestion on bootstrapping ways to boost morale in your company. He said that since he did not have much money at the start he motivated his team by bringing food in.

On the weekend I decided I would try out the experiment and bake some chocolate chip cookies for the 4 people who work from my office. I found a recipe for double chocolate chip cookies (melted chocolate in the cookie along with chocolate chips), bought the ingredients on my usual trip to the supermarket and prepared the cookies on Sunday night.

Despite leaving them in the oven for a little too long the staff here loves them. I brought two containers full and offered them around on Monday. It certainly got everyone’s attention - who can say no to a double chocolate chip cookie? I have since left the containers by the front entrance so they see it when they come in to work.

Needless to say the cookies are quickly disappearing and today I had to refill one of the containers.

It has worked out well, the staff is happier and gets to poke a little fun at my baking abilities. The happier they are at work the more productive they are and it has been a wonderfully successful experiment thus far. It looks like I will have to make another batch this coming Sunday. If anyone has a winning recipe, let me know!

Evan Carmichael

Young people have typically had a hard time in the workforce. Youth unemployment has usually been in the double digits almost everywhere in the world as employers favor workers with more experience. In industrialized economies the youth unemployment rate is between 13 and 15% while in the Middle East and North Africa that rate jumps to over 25%! Many of the world’s young people are turning to entrepreneurship as a way to make money and start a career. Some of the benefits to young people are:

Make Money - Many young people start their own businesses because they have no other choice. They cannot find a job and they need to make money to survive.

Provide Jobs - Young people who start their own businesses are also like to hire other young people to work for them which will decrease the youth unemployment rate.

Develop Skills - When you become an entrepreneur the number of new skills you develop grows exponentially. From accounting to customer service to sales to management to human resources, entrepreneurs quickly have to learn all the talents necessary to run a business which they might not get otherwise working at a typical job.

A few years ago I was invited to speak at a conferences at APEC in Monterrey and in Brunei where they were trying to encourage countries to achieve sustainable development through entrepreneurship. The more we can get young people around the world supporting themselves by starting their own businesses the faster countries will rise out of poverty and into prosperity.

Similarly, here in North America if you are looking to develop your own personal skills and earn the chance to determine your own income level there is no better time to start a company than right now. The funding opportunities are here, it is cheaper than ever to start a business, people are more willing to trust young people than ever before, and it is much easier to take a risk when you are young compared to when you have a family, children and are mid-career at an existing job.

So what are you waiting for?

Evan Carmichael