Radio program attuned to start-ups – Sloan brothers provide advice on marketing, successful tactics

When Karen Kuhn of Elmwood Park and her twin sister, Karla Scanlan of suburban Detroit, launched Twin Beginnings LLC two years ago, they didn’t know how to market it.

"We needed to learn fast because we were doing all of our packaging and marketing ourselves," Kuhn said of the infant-safety-products company.

By Ann Therese Palmer
Special to the Tribune

http://www.chicagotribune.com/business/chi-0404260079apr26,1,5048269.story?coll=chi-business-hed

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Then Scanlan called to say she had heard some clever marketing tips on "StartupNation," a Detroit-based weekly radio show broadcast by entrepreneurs and small-business consultants Rich and Jeff Sloan.

One segment features small-business owners describing how their businesses succeeded. Another is "The Elevator Pitch," 60-second spots by entrepreneur-wannabes. The final 20 minutes is a call-in segment in which small-business owners ask the Sloans for help with problems.

Scanlan suggested that her sister visit the show’s Web site (http://www.startupnation.com) to listen to the archived broadcast.

"I was so impressed, I asked Karla to contact the Sloans and tell them all of the problems we were having," said Kuhn. "They re-energized us by suggesting we go to larger stores like Jewel Foods, which subsequently gave us a contract for 15,000 units, instead of concentrating on small retailers. We’ve sold out at many local Jewel supermarkets and are now restocking."

Last week, Kuhn heard the Sloans’ advice locally through daily "Small Business Blasts," 60-second spots on WBBM-AM 780 during drive time in April, May, June, September and October.

"They’re a quick shot of business smarts, like a shot of espresso," said Rich Sloan. "They’re fundamental principles and pearls of wisdom related to starting and growing a business that we’ve accumulated over the years. We present a subject and give a quick bullet list of thought-starters and direct folks to go to our Web site for more information."

The Sloans’ one-hour "StartupNation" weekend program is in 44 markets nationwide, but the only one in Illinois is downstate Carthage, where the show airs on WCAZ-AM 990.

"Other than the Sloans, I haven’t heard of anything like this on radio or television anywhere in the U.S.," said James Schraeger, an entrepreneurship professor at the University of Chicago Graduate School of Business. "I like the idea because it’s offering entrepreneurs easier access to more information.

"One of the hundreds of hurdles that entrepreneurs face is digging out information. It’s available from many sources–the Small Business Administration, universities, libraries, books–but there’s hardly anything on radio or TV locally. This sounds a lot like `Motley Fool,’ also two brothers, who take a common-sense, light-hearted approach to personal-finance counseling."

The Sloans began their radio show and Web site in December 2002.

It grew out of a deal they made in 1990. They had licensed Battery Buddy, designed to prevent dead batteries on cars and boats, to MascoTech, a suburban Detroit Fortune 500 manufacturer.

"I majored in Asian history and my brother in English at the University of Michigan," said Sloan, 36. "Neither of us had any background in inventing nor licensing when my brother saw someone with a dead automobile battery one night and figured out a solution that hadn’t been marketed yet.

"We had to learn all of the technical aspects of patenting an idea and licensing the hard way. Lots of people have great ideas but don’t know how to commercialize them. We’ve built our careers on helping them do just that."

The Sloans also operate Birmingham, Mich.-based Sloan Ventures LLC, a venture capital firm. In addition, they run "Webinar Wednesdays," free weekly online seminars for people seeking to expand their business.

"We’re helping to replace fear, the biggest crippler of business ambitions, with the information entrepreneurs need to get moving," said Sloan.

Last year Paul Stanley, who started Fighting Chance LLC, a Chicago-based marketer of anti-abduction educational videos, was a guest on "StartupNation."

"I was amazed at the e-mails I received from my appearance," he said. "There were about 40-50 e-mails. I like the banter between the two brothers and their sense of humor. They present small-business concepts in a way that it’s difficult to forget."

"In the past, when my sister would hear `StartupNation’ and `Business Blasts’ in Detroit, she’d call me to tell me about them," said Kuhn. "But I’d have to wait until they were on the Web site to hear them, and then discuss with her how they could affect us.

"It’s so much easier to click on my radio, hear `Business Blasts’ and talk to my sister immediately afterward. It’s a welcome time-saver. The only thing better will be when I can listen to `StartupNation’s’ weekend show on the radio in Chicago."

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Financing, application among popular queries

Rich and Jeff Sloan have advised more than 2,000 small-business owners since they launched "StartupNation" radio and http://www.startupnation.com in December 2002. Their radio program is heard in 44 markets nationwide.

Rich Sloan recently discussed some of the most frequent problems the brothers hear and possible solutions.

What are you most frequently asked?

"`How do I get financing?’ is one popular question. It depends on at what stage of development you are.

"For the few fast-growth companies with experienced management teams, venture capital is an option. But, if rapid growth isn’t at the top of your list, we recommend the other end of the spectrum, bootstrapping, which involves financing the business with your own limited funds and letting it grow through revenue. Just like Goldilocks, you’ve got to find what’s `just right’ for you."

What’s another?

"Another is `I have a great idea, but how do I move it forward?’ Typically we have to dive in a little deeper to assess what the entrepreneur’s objectives are.

"Make sure you know your life’s objectives. Then create your business plan within that context. Next do research. If you’re armed with good information about the playing field, your odds of creating and executing an effective plan rise dramatically. And remember that this process requires intense commitment."

What’s the most frequent mistake small-business owners make during start-up?

"Not `going with the pros,’ as in professionals, when you have an idea that you want to pursue. You need to understand how to protect it, whether through a patent, trademark, copyright or trade secret.

"Many times, a patent attorney will look at your first visit as a free consultation. Subsequent visits cost about $50-$150 an hour.

"Use an accountant to set up a financial structure for your business that anticipates any employees you might hire and financing you might seek. To keep things straight, get your personal finances separate from your business finances as early as possible."

How important is a business plan?

"Look at your business plan as a form of sanity. It’s where you can dump all of your `brilliant’ ideas and put them to the test. By creating and living by your business plan, you set context for your actions, define your priorities, create a timeline for key milestones and measure your performance.

"Drawing a timeline with key milestones you know you must achieve can be a big help. An example is, `In one month, I need to have a prototype of my product completed.’ It’s a road map."

–Ann Therese Palmer

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