If you’ve ever read the biographies of famous contemporary entrepreneurs, you’ll learn stories of how they started a roadside lemonade stand when they were 15, or sold baseball cards to schoolyard friends at the age of 14.

When I was 14, I worked at a fast-food outlet, and spent my money on comics and going to the movies with friends.

I recently had an opportunity to talk to Lachy Groom, a young entrepreneur from Australia; after a lengthy email conversation, I found out he was only 14 years old! The opportunity to find out what goes on in the mind of a very young entrepreneur was irresistible.

Lachy currently runs two businesses: book review web site, Uncoverr.com (disclaimer: SitePoint currently advertise on this site) and blog XHTML/CSS service, PSDtoWordPress.com. Lachy calls himself a web developer who started off as an XHTML/CSS coder three or four years ago.

What is the startup story behind your business? When did it start?

I started when I was 10 or 11, I think. My granddad taught me HTML and I became quite good; I learned about CSS on W3Schools and then I wanted to find out how to make my site live. I found out about free hosts and learned from there.

I started off taking client work and converting PSDs to XHTML/CSS. I made quite a bit of money and so started other sites, sold them, and moved on. Now my two main projects are Uncoverr.com which SitePoint has been nice enough to sponsor, and PSDtoWordPress.com.

Your parents — how do they feel about having a 14-year-old entrepreneur in the house?

Heh, they’re fine about it. It was a bit of trouble convincing them to let me use their PayPal account at first, but then my mum registered one in her name that I can use myself. They leave me to it; I guess to them it’s just like me having a part-time job.

With school and social life, you must be busy. What does an average day (during school term) consist of?

I’ll wake up at 7.00 a.m. and leave for school by 8.00 a.m. After school I usually play sport for a couple of hours, and then relax until dinner time.

Then, once I’ve had dinner, I’ll usually do two hours of work, as well as chat to my friends over Instant Message and on Facebook.

What’s your definition of success, and do you believe you’ve achieved it yet?

To be honest I’ve yet to really think about it. I think success is a very subjective term; to me it’s just completing my goals, and accomplishing what I wanted to finish in that day. If you complete your to-do list for that day plus a little more, it was a successful day ;). Some days I’m successful, some days otherwise. I feel though, in an overall sense, that success is just about being happy with where you are at in life. So, I think I’m yet to be successful, but will be in 4-10 years :).

What do you imagine you’ll be doing when you turn 18 years old?

I hope I’ll be running a startup or a design firm somewhere in Miami or Chicago. I’m currently in Western Australia but I have aspirations to move to the US. I hope to stay in the web industry running a company. Otherwise I’ll probably be a lawyer or an engineer.

What advice would you give to other teenage entrepreneurs?

NETWORK! I think the word teenage is irrelevant, and that advice is the same for any entrepreneur. I like the saying, “It’s not what you know, it’s who you know.” I think that’s really true. But if I was to give advice straight to teens, it would be to have a good work/life balance. Make sure you enjoy yourself, that’s all that matters.

Thanks Lachy for your answers, and I look forward to watching your success in the coming years ahead.

This post first appeared as part of Issue 430 of the SitePoint Tribune, a very popular email newsletter that I am co-editor of. Thanks to SitePoint for allowing me to reproduce the work here.

In December 2007, I penned an article for SitePoint, 10 New Year Resolutions to Boost Your Business. You can read the article for all the details, as well as download a handy wall planner to stick near your desk. You’ll find that it’s still as relevant today as it was when I wrote it.

The ten resolutions, in short, are:

1. start setting goals
2. ask a client for a referral
3. focus on profit, rather than turnover
4. learn something new about business
5. take time for yourself
6. create products that generate income
7. delegate effectively
8. focus on client service
9. take time to wander the Web
10. build rock-solid procedures

Read the article for the full details on each of these resolutions. The start of the calendar year is perfect for us to look at implementing the first one: goal setting.

Setting goals helps filter all of the thousands of thoughts and ideas you have into a list that’s far more manageable. High achievers in every field from sports to business consistently suggest that goal-setting is an invaluable part of the process. Goals can help you define your objectives and understand what’s important to you, motivate you towards achievement, and build your self-confidence.

So what is a great goal?

Many people use the acronym SMART when creating goals, as well as for other project management methods. SMART stands for:

Specific
Ask yourself if the description of the goal is precise? A plausible goal is very specific and easy to understand. Goals such as “increase amount of clients” or “make more profit” are too vague. Instead, use specific language, such as “add three new clients to portfolio before end of March” or “increase average profit on all jobs by 5% before middle of the year.”

Measurable
Does the goal explain how you’ll measure results? A solid goal has a measurable outcome, so that you’re able to determine if you’ve achieved it, and it helps you stay on track. Hence why I used very specific terms, like 5% profit increase or three new clients. This helps spur you on towards your goal, assuming the goal is attainable.

Attainable
Is the goal possible to achieve, with some effort? If you set far-reaching goals, you may be unable to commit to realizing them; for example, “increase turnover by 1000% within three months” is probably way beyond your current means. However, the goal should require some effort; for instance, “wake up each day before lunchtime” is easily achievable for most people, and so is unworthy goal-wise.

A proper goal should stretch you slightly so that you need to be committed, yet should also feel attainable. “Increase client base by at least two per month for next six months” is a goal you’d possibly need to work hard to reach, but is still feasible.

Realistic
Ask yourself: do you have the power to control the results? You need to feel that you can reach your goals, and that you have an influence on them. Having a goal like “co-workers to be nicer to clients” is, fundamentally, out of your control, even if you are the boss. A better goal would be “run monthly workshops for employees that focus on client service.”

Timely
A concrete goal has a deadline. It may be as limited as the end of next week, or as long as the end of 2009. Deadlines help you manage your time towards achieving goals. Without a deadline, the goal will appear to be unimportant and never happen. Set a realistic deadline, with a suitable time frame.

It’s a good idea to limit yourself to just a handful of short-term and medium-term goals. Writing an exhaustive list of everything you would like to complete before you leave this earth is a sure way to de-motivate yourself.

Set some goals today, and look forward to a more productive year ahead!

This post first appeared as part of Issue 428 of the SitePoint Tribune, a very popular email newsletter that I am co-editor of. Thanks to SitePoint for allowing me to reproduce the work here.

There’s been much talk about strategies for businesses to survive the uncertain economic climate. The media every day are reporting massive layoffs and industries in turmoil. In these times, it’ll be all too easy for most businesses to feel the effects of the crisis, so what can we do?

One of the major scenarios we’re already seeing in some industries is the domino effect of a large company hitting the wall; this in turn affects their suppliers, who then suffer, affecting their suppliers, and so on down the food chain.

What is immediately obvious here is that there are two actions we need to take. I also note that these should be part of standard business practice, not just for uncertain times.

The first one is control costs. Most organizations can identify a few areas where some small cost savings could add up to a sizable percentage of their bottom line. Look for savings in bank fees, transport costs, telephone and bandwidth, office supplies, and the like.

Secondly, manage cash flow.

If your clients hit hard times midway through a project, you could be left wearing the debt. Make a habit of invoicing smaller amounts more frequently, based on project milestones or calendar months. Keep on top of recalcitrant debtors — if you start chasing them the day after the bill is due, it trains your clients to know that you mean business.

Chasing your debtors consistently means you’ll have their payment sooner, and it’ll be less likely they’ll become a bad debtor.

This post first appeared as part of Issue 428 of the SitePoint Tribune, a very popular email newsletter that I am co-editor of. Thanks to SitePoint for allowing me to reproduce the work here.

Should you offer services or products?

The old phrase, The grass is always greener … is often heard when discussing the merits of services versus web-based products. Listed below are some of the advantages and disadvantages of both models. Which ones apply to you?

Products — Advantages

• gives you unlimited income potential, because time constraints are minimal (unlike selling services)
• enables lower prices for the consumer, as costs can be amortized over more customers
• allows you to concentrate on building one main project, rather than several small ones
• presents a choice of different revenue models, which are simpler to modify over time
• affords a better opportunity for residual income, in continual license fees
• provides an easier option to sell as an ongoing concern than a small web service does.

Products — Disadvantages

• requires more upfront investment in time and possibly money, especially the marketing aspect
• presents the possibility of competitors creating similar products and competing directly with you.
• necessitates market research to avoid ending up with little or no customer base.
• runs the risk of fielding more support queries than anticipated
• may delay long-term growth because of the lack of immediate cash flow

Services — Advantages

• generates income faster, because it’s easier to sell your services than a brand new product to the marketplace
• provides scope for a variety of projects, maintaining your interest in each new project
• offers more versatility in meeting market demands, rather than having to rebuild a mature application

Services — Disadvantages

• reduces your capacity for income, because it’s based purely on how much you can charge and how many staff you need
• limits short-term growth; for example, hiring staff is more time-consuming than bringing a new server online
• makes you more vulnerable to market buoyancy than product licenses

Also remember, as Dave mentioned, that it’s very simple to have a hybrid model of both: sell your current services while developing and offering products as well. This is similar to how businesses may sell hosting, stock images, and CMS licenses.

This post first appeared as part of Issue 424 of the SitePoint Tribune, a very popular email newsletter that I am co-editor of. Thanks to SitePoint for allowing me to reproduce the work here.

Everyone loves a freebie, right? Well, here’s a great freebie – a PDF copy of the book I wrote last year, The Principles of Successful Freelancing.

All you need to do is visit this website, and either follow @sitepointdotcom on Twitter, or put your email address in the box to get a download link.

I’d like to also suggest you follow me on Twitter, whilst you’re at it. :)

Judging by people’s reactions, this 10 day only giveaway will once again be HUGE.

The team at SitePoint did the same thing some time ago, with another book. The result of that twitaway was 13,000 new followers in under a week! That’s a great jump in followers for anyone over any period of time, let alone an increase like that in a week. You can read all about that campaign over at TwiTip.

I hope you enjoy the book (so much so that you’ll buy the real paper version too!), and remember, this only lasts for the next ten days.

Earlier this year, I organized a loan for my new house with my usual bank. All went well, they approved it quickly and before long, I had removalists at my door.

Then the trouble began … payments not deducted, double payments deducted from the wrong accounts, inept bank employees who tried to argue with me, more double deductions … the list goes on.

After a while, I was close to giving up–even considering changing banks and organizing new loans. Then, one day I got a telephone call from one of the handful of managers who handle this bank’s business in my state.

He opened with “I owe you an apology.” I was over the moon! This manager had taken the time to phone me and say that he’d heard about my plight; he wanted to assure me they didn’t believe anyone should be treated the way I was.

Not once did he even attempt an excuse, nor blame others. Here was an executive who was in charge of dozens of bank branches and yet, he took it upon himself to call and say that he and the rest of the organization he works for were sorry.

This manager was attentive and keen to hear my views. We ended the call fifteen minutes later with him providing his cell phone number, and asking me to call if other issues arose.

We’ve all been there. A web site project goes awry or one of your team makes a mistake, and before you know it, you are metaphorically huddled under your desk, frightened that the client will call.

What your client wants to hear is “sorry.” Everyone is human and when mistakes do happen, what we all want is for our suppliers to recognize when they have erred and offer a simple apology.

It costs you nothing besides a few minutes of your time, and believe me, you’ll feel better being proactive and apologizing before the client gets a chance to be angry.

So, swallow that ego and make the call–you’ll be relieved afterwards, and your client will respect you for it.

I’m still with that bank and the service has improved. I’ve even recommended them to my colleagues, based on that manager’s one call. Wouldn’t you rather your clients do the same?

This post first appeared as part of Issue 413 of the SitePoint Tribune, a very popular email newsletter that I am co-editor of. Thanks to SitePoint for allowing me to reproduce the work here.

The great thing about writing your own book, is when it comes to reading other books, you have a new found appreciation to what effort has gone in to create what you’re holding.

There’s certainly some effort put in on SitePoint’s latest title, Online Marketing Inside Out. Two authors, Brandon Eley and Shayne Tilley collaborated on this tome; their upbeat, personal styles intertwine fluently, and certainly not disjointed as you may expect when there’s two writers involved.

Pitched at business and website owners who are looking for the knowledge to promote their services or products online, this book is a great starter for those without intimate knowledge of traditional marketing techniques, or who don’t have a decade of social media and web development experience under their belts.

The 210 page colour book is divided into nine logically grouped chapters. Chapter one outlines the changing face of marketing; it covers the basic reasons why organisations can’t ignore online marketing as part of their mix, and wraps up with some great reasons why you’ll love online marketing.

Chapter two, ’21st Century Public Relations and Media’ covers the modern Press Release, blogs and importantly, how to monitor social media for mentions of you or your product.

The third chapter, ‘Turn Page Views into Profit’ may seem shallow for those hardcore technical types, but I’m sure just like me, you’ll learn something from it. The chapter covers those all important on-site tweaks that you can do, to improve accessibility, usability, browser testing, content, landing pages and testing.

Search Engine Optimisation is covered in chapter four, and is a fantastic read for both beginners and advanced SEO gurus alike. This would be a great stand alone chapter to give web development clients who want to know what SEO is, without needing a PhD.

Chapter five is very interesting, covering Social Media such as micro-blogging, photo and video sharing, social bookmarking, podcasts and more. This is a great guide for those wanting to build a social media strategy.

Email Marketing gets a nod in Chapter six. This takes you from building your recipient list, to creating the content, to designing the delivery (and choosing the method), and even covers those tricky frequency and scheduling questions. Great thing here is the very clear warnings about spamming and buying email lists.

Chapter seven takes us through the topic of ‘Affiliate Marketing’. For those with a clearly affiliate ready business model, this sure looks like an exciting avenue to take. This chapter clarifies what this mystical affiliate world is all about, and takes out the snake oil component.

This book wouldn’t be complete without a chapter on online advertising – here’s where the penultimate chapter eight steps in. Banner advertising, PPC, text links, cost per mille, agency relationships and more are clearly explained.

The ninth and final chapter, ‘Tying It All Together’ does just that. It asks and helps steer your strategy by reiterating what you’ve learnt, how to create an online marketing strategy, setting goals, and then encouraging you towards writing a detailed plan.

Although I found I knew much of the books content already (but then I have years of interest in marketing, both online and offline), it certainly helped polish my knowledge, so the book was still valuable for someone with more than a decade of experience. I also started seriously considering the possibilities of distributing copies of this book to a number of my clients.

Online Marketing Inside Out is a great book for those who want a no-hype understanding on the how and why of online marketing, written by two people who have succeeded in this field. Perfect for the web developer or indeed their clients, this book is easy to digest (I read it easily on a four hour flight), and is the perfect level for anyone yearning for online marketing knowledge, who would be happy without pages of geeky code snippets.

Well done, Brandon and Shayne!

Disclaimer: the publisher of this book also published my book. I was given a PDF copy of this title, however will not see any personal gain from writing this review. I feel no obligation to write a good review, and if I had, I wouldn’t be posting one here.