Lean Start Up
Kickstarter helping Minnesota businesses
By Tricia Cornell December 07, 2011
Original post from CityPages and I can't wait to have a donut form the Donut Cooperative!
The people have spoken. And they want roast beef. And doughnuts. And popsicles. Time will tell whether they also want soul food delivered to their door or a new Irish pub in downtown Buffalo, Minnesota. If they do, there's an easy way to vote: They can toss $25 or $50 in the hat on Kickstarter.com.
Kickstarter has been democratizing venture capital since 2009. Artists, authors, entrepreneurs, and other creative types post projects; those who want to see the projects come to fruition pledge funding, as little as $1 if they like. In exchange, rather than owning a piece of the business like a traditional investor, they get a little reward—a CD, a book, a T-shirt. But there's no way a plugged-in reader doesn't know that already, because news of Kickstarter has gone seriously mainstream in the past few months, so much so that some bloggers are now begging their artistic friends to stop the "Internet begging."
The participants are big, like ousted New York Times ethicist Randy Cohen, who is raising money for a podcast, and small—tiny-small, like the Delaware poet who was raising $1 (singular) for a poetry project. (That got funded.) While the largest category of projects is definitely albums, followed by small films and photography projects—one-off sorts of things that tend to result in a tangible object—there are also a handful of food projects currently seeking funding in Minnesota. Inspired by the recent success of the Donut Cooperative and Land of 10,000 Licks, both of which achieved their funding goals in August, these entrepreneurs are looking for a little help kick-starting what they hope will be long-lived enterprises.
What I learned from talking to the newbies and to successful Kickstarters is this: It's not about the money—at least not entirely.
Few things are guaranteed in the food business, but of this you can be sure: When the Bloomy's Roast Beef truck parks in downtown Minneapolis or St. Paul for the first time next April, there will be a line down the block. That's in part because owners Katie Johnson and Ryan Bloomstrom are hardworking dynamos. But more importantly, it's because they have savvily used Kickstarter to build an enthusiastic customer base months before they make their first sandwich.
One morning in early November, Johnson opened her laptop and had to stifle a happy scream: Bloomy's Roast Beef had reached its goal of $10,000. Within 30 days, 56 backers pledged an average of nearly $200 each to get the food truck off the ground. Many have become devoted followers of "Bloomy's Blog," chronicling the venture. One even offered up his family's cherished coleslaw recipe for the cause. In exchange for their help, they'll all get some combination of free meals and Bloomy's gear to wear around town, and they'll be invited to a launch party where they'll get to sign the truck itself.
"And when they see that truck around town, they'll think, 'I'm a part of that,'" Johnson says. "Everybody has a desire to belong to something bigger than themselves. A lot of people don't find that in life. I think people enjoy seeing what they've helped us grow." And when customers feel like a part of your business, they just might start doing some of your marketing for you.
"Kickstarter is a brilliant tool to get people interested," Bloomstrom says. "They want to see you succeed, because they're involved. They'll put it on Facebook and shake the bushes for you."
WHEN THE DONUT COOPERATIVE opened in early November, it also had a ready horde of customers before the first doughnuts came out of the oil. More than 150 backers had pledged a total of $12,032, and they—and their friends—were all eager to get their hands on treats like sea-salt potato-chip doughnuts with butterscotch caramel sauce. In fact, the Kickstarter buzz is working almost too well: Lines out the door are still common, and demand often outstrips supply.
Head baker and menu designer Jacob Schumack says Kickstarter was a great way for the Donut Cooperative to test out a business idea before running with it.
"Without Kickstarter we wouldn't be here," Schumack says. And not just because of the capital the cooperative raised online. "Kickstarter helped us gauge whether people were willing to put their money where their mouth is. It gave us hope that people were really excited."
Backers got swag like buttons, T-shirts, free coffee, and free doughnuts. The 15 people who pledged $250 or more get to design a custom doughnut flavor that Schumack has to try to concoct. The lingonberry doughnut was easy (and delicious). But the chili dog doughnut is more challenging: "I've got the recipe to the point where it's palatable when it's hot, but it's not so great when it's cooled down."
But were people giving for the swag or out of the goodness of their hearts? Schumack says neither. "They weren't just being philanthropic," he says. "They really wanted to have doughnuts here. They were asking us to open."
LAST YEAR, Krista Leraas raised $8,200 for Backyard Harvest, an urban farming project of the Permaculture Research Institute. She turned to Kickstarter again this year when she and business partner Dina Kountoupes wanted to add a social justice component to their new farming venture, Harvest Moon Backyard Farmers.
Harvest Moon offers garden design and consultation services and will even do the dirty work of raising edibles in their customers' yards. The pair are seeking $8,900 so they can offer garden coaching to low-income homeowners and create food-shelf gardens.
"It's not like we can't survive as a business without this," says Kountoupes. "We really feel passionate about social justice with food, and this is a part of the business we want to make happen."
Most of their backers—44 so far, and growing—are completely unknown to them; some don't even live in Minnesota. And many have given to other food-related projects. That's the beauty of Kickstarter, Kountoupes says. "It's like this cool underground movement, a community built around supporting and doing.'
Leraas compares Kickstarter to the community-supported agriculture mindset. "Especially as the economy stays bleak, people are realizing they need to get more creative," she says. "And they are thinking of economic relationships in different ways."
It's also marketing. "It's been an incredible way to get advertising in a community of people who are likeminded," Kountoupes says. "We may get clients out of this, even if they don't fund us."
KICKSTARTER CAN also be a lifeline for people outside the usual funding loop. Derrick Williams has been cooking soul food ever since he was a child in Arkansas. But since his restaurant, Derrick's Southern Style at 38th and Chicago in Minneapolis, closed last year, he's been a cook without a kitchen. He cooks for friends and sets up an occasional backyard barbecue, but mostly he says he is always thinking, "How can I get back to cooking every day?"
A friend convinced him to try Kickstarter as a way to raise $5,000 to get a meal-delivery service called Soul Food 2 Go up and running. Williams says he was skeptical—"It felt like begging"—but, without a lot of savings, he doesn't have access to many other funding streams. If the project funds, he plans to use produce from a cooperative of small local farmers to cook Southern classics and his own specialties, like smoked meatloaf. He wants to offer healthy options to a customer base prone to food-related diseases and expand options for people in the Twin Cities who love Southern cooking. "You just can't get certain things in the stores here," he says.
ANDY HAYES grew up in a restaurant family. His grandmother owned Stella's Café in downtown Monticello for more than 30 years. Now he's hoping to continue the family tradition by opening Hayes' Public House in Buffalo. He's got his eye on a building but needs to raise some capital so he'll be eligible for business loans.
Hayes says that using Kickstarter seemed strange at first, and he's had to explain the concept to some people, but the reception so far has been positive. With more than a month to go, 11 people have pledged more than $1,000. As the word spreads from close friends and family to the outer fringes of his social group, Hayes says he's been pleasantly surprised to see support from friends of friends and other acquaintances. While he was hoping to open the doors on St. Patrick's Day 2012, he now notes that the clock is ticking pretty fast. "There are people following me who have been really supportive," he says. "That means more to me than making my funding goal.
SO KICKSTARTER is about market-testing ideas, building enthusiastic communities around your project, and about access for nontraditional business owners, but it's also about cold hard cash, too. The money pledged is a gift, not a loan (Kickstarter explicitly forbids repayment of pledges) and backers don't get a stake in the business.
When Katie Johnson and Ryan Bloomstrom first approached banks about loans for Bloomy's Roast Beef, they were expecting to have to put up about 10 percent of the capital themselves. But bank loan practices aren't what they used to be, and the Small Business Association, which has approved their loan, wants entrepreneurs to put up 30 percent of every purchase. The couple turned to Kickstarter to bridge the gap between their savings and what the SBA wanted to see.
Other entrepreneurs might look for venture capital for that, but an investor would get a stake in the business and might want a say in how it was run. "We refused to give up our hard work, blood, and tears for a private investor," Bloomstrom says. "That's where Kickstarter comes in."
That is not to say that Kickstarter is an easy shortcut to business success. Johnson and Bloomstrom have a 65-page business plan to prove that. The couple has spent 10 months working on the plan. "We both have full-time jobs, and then we come home at night and open our laptops and keep working," Johnson says. That included shaking the Kickstarter bushes long before they had a crowd of backers to help them do that. Johnson said they did something every day to keep the ticker on their Kickstarter page growing, using Facebook, blogging, and old-fashioned email pleas.
The couple now have a busy five months ahead of them before they put their first roast in the oven. They'll be planning a launch party, hiring staff, and perfecting recipes for coleslaw, mac and cheese, and sandwiches. One thing they know for sure: At least 56 people are eager for a taste.
Playing with Spotify Apps
5 Tips for Twitter Virgins
This very helpful article was written by Hassan Mirza, on his blog Go For it Heather! Make sure to tweet with him on Twitter, he's friendly, knowledgable about social and funny.
One of my favourite things is introducing people to Twitter. It’s not naturally intuitive and even most die-hard Twitter fans have had the ‘What’s the point?’ moment.
Your best bet is to do some reading, get some face-to-face time with a Twitter pro, ask LOTS of questions and then just start experimenting. Like anything, it’ll get easier and if you practice.
If you stay committed, focus on conversations, you’ll most likely find Twitter an awesome resource and a place to share your insights and questions with like-minded people. Remember that tweets are snapshots of conversations so you can join at any moment.
Start your Twitter journey well by following these tips:
1. Add a clear, friendly photo of your face
Unless you are a brand or an organisation, in which case you might choose your logo as a profile picture, it’s best to choose a clear headshot as your profile picture. Twitter is a social network, so be open about your identity - it’ll be easier for others to converse, recognise and remember you if they can see your face. I learned this at my first Tweetup ShoreditchTwit where after chatting to organiser Kate Matlock, realised that others couldn’t recognise me from my Twitter photo (a blurred photo of me in a wig, don’t ask ;). This is especially important if you intend to network offline.
2. Include a keyword-rich bio
Your bio needs to clearly communicate who you are and what you’re interested in, while including relevant keywords so others can find you. The bio is often the first thing a potential follower sees so choose your words carefully - and don’t forget to add humor and personality! WeFollow is a great place to get your brain thinking in terms of bio keywords. Here are a few of my fave Twitter bios: Composer Stuart Wood, Online PR expert Leanne Rinning, Bar and drinks consultant Paul Matthew.
3. Use Twitter to aggregate content you already read
Are there any journalists or bloggers that particularly resonate with you? What magazines or newspapers do you like to read? Are there any industry experts or public figures that you admire? What organisations do you support? Also do you have entertaining friends who use Twitter? Whether you are a brand or an individual, answer these questions before deciding who to follow and why. Your Twitter needs to include voices and content relevant to YOU to keep you coming back. Failing to do this is a major reason people quit Twitter after starting.
4. Check and respond to your @ mentions
Do you compulsively check your Facebook notifications or emails? Be honest, we all do! Checking your mentions on Twitter is very similar - it is your means of knowing if someone has publicly addressed you. Maybe they are sharing a link with you or asking a question. Be responsive to mentions and think of how you could add value or express gratitude in a tweet. A ‘thank you’ goes a long way and is the easiest way to start an online relationship with someone. I used to tweet (@ mention) a journalist friend who never checked or responded her @ mentions, until I approached her in person! Ignoring mentions not only defeats the purpose of Twitter but also gives someone a reason to disengage with you.
5. Mix up your tweets with retweets, replies, pictures
When starting Twitter a lot of people don’t know what to say. The easiest thing to do is read what other people are tweeting. If you agree with a statement or find a link interesting or compelling, retweet! It’s ideal to drop in a short compliment or insight before the RT like this.
Replying is even more important (and satisfying) than retweeting because conversations should be central to your Twitter experience. Yesterday I was having a conversation with a former colleague of mine about Google +, in which I replied to her insight. Reply to someone with an open ended question and you are likely to get a response.
Tweeting pictures is great way to enhance your Twitter stream and attract significantly more hits than links. Use Twitter’s own photosharing abilities or Twitter photosharing applications like Twitpic, Instagram or Yfrog.
If you have any questions please reply to me at @hassanmirza
Martha Stewart, Thanksgiving and Social Media
Martha Stewart Goes Social With Her Turkey Hot Line
By JENNA WORTHAM| November 23, 2011, 4:10 pm
Martha Stewart isn’t just a whiz in the kitchen. She’s also a mistress of social media.
On Wednesday morning, Ms. Stewart hosted her annual “Thanksgiving hot line,” a live episode of her TV show in which she invites fans to send in their last-minute questions about Thanksgiving foods via Facebook and Twitter (#askmartha), which she fields throughout the show.
Ms. Stewart said that this year, more than 8,000 questions came in from the Internet. She skimmed through them to pick out the best ones to tackle on air.
Of course, Ms. Stewart didn’t face the onslaught of questions by herself.
During the show, five chefs and producers staffed a table full of computers and iPads, reading select questions aloud, on topics like baking a perfect apple pie, appetizers for children and whether or not to brine a turkey. Ms. Stewart would chime in with her thoughts and, between cooking demonstrations, would also help monitor the replies on the Web.
At one point during the show, Ms. Stewart even jumped onto Google Hangout, the video chat feature of Google’s new social network, to give suggestions on side-dish recipes to a woman named Abby, who was snowbound in Vermont.
The integration of social media was relatively seamless and quite impressive — considering that not long ago, audience interactions were largely limited to questions from the studio crowd and calls from those following along at home.
After the taping ended, Ms. Stewart chatted with audience members, cracking jokes about how to handle unruly Thanksgiving guests. She said her company, Martha Stewart Living Omnimedia, was looking to expand its digital presence on all fronts, beyond social media, and planned to introduce several new applications for the iPad.
She also mentioned that nearly 2 percent of the subscriptions to her publications — Martha Stewart Living, Everyday Food and so forth — were in digital form, thanks to the iPad and other tablets.
Stamped
Signed up and ready to try it out! Oh, how I love a new app :)
It’s a problem people have been tackling for years: smart recommendations. We want help deciding what books we should read, what movies we should see, where we should shop and what we should eat. Yelp reviews are pitiful. The masses aren’t to be trusted. I tend to ask my friends, but considering their lackadaisical approach to emailing and text messaging, it’s pretty inefficient.
Stamped is a new iOS app that allows you to give your stamp of approval to things like restaurants, books, movies, music and TV shows. It’s intuitive, well-designed and will likely have some serious user traction. Stamped is the only NYC based consumer project funded by Google Ventures. In fact, it’s just one of only four NYC startups that Google supports in NYC. Stamped is also backed by Bain Capital Ventures.
The app was started by former Google employees Bart Stein and Robby Stein, along with Kevin Palms. Instagram Co-Founder and CEO Kevin Systrom is an advisor to Stamped, as is famed chef Mario Batali.
To use it: Simply sign up with your full name, email address, username and photo. Find friends on the app by connecting your Twitter, Facebook and scanning your address book. Follow celebs like advisor Mario Batali, Rolling Stones critic Peter Travers, fashion designer Rebecca Minkoff and the New York Magazine. Then choose or customize your stamp color. You have 100 stamps to start and you can earn more when your friends like what you recommend.
“Review sites are cluttered with recommendations from people you don’t know and don’t care about. We’re focused on quality – only the people you trust recommending only what they truly like best,” said Stamped co-founder and CEO Robby Stein. “Stamped is a simple, fast way to filter out the noise.”
Watch this video here for an overview of Stamped:
<p>Stamped from Stamped on Vimeo.
Stamped integrates with Google Places and includes built-in functionality with OpenTable, Amazon, iTunes and Fandango so you can immediately take action. You can search through categories like restaurants, books, movies/TV shows, music and miscellaneous. Once you find something you want to try, just add it to your “To-Do” list with the middle + button. “News” tells you when people start following you or when people have Liked or Stamped one of your Stamped recommendations. “People” tells you who you’re already connected with.
Use the Earth icon at the top right to see Stamped recommendations nearby or search for specific locations. If Foursquare is like the Facebook of social networking, than is Stamped like Google+ as it offers a clean slate for recommendations that encompasses all things recommendable? Or will its verticals cause Stamped to become too overcrowded without a decent search feature (which it currently lacks)? Searching for “NYC Dinner” brings up 0 results.
Stamped has been in private beta since September with a very small group of users who have provided feedback on product functionality and design. The main challenge Stamped will have is making sure the right tastemakers are using the app first. If it can accomplish that, Stamped will be a big hit.
➤ Stamped
Social media advice
Don't go into the woods if you're afraid of the wolf.
My very wise and thoughtful colleauge and I were talking about social media the other day over lunch.
We were talking about how different brands approach social media and sharing some of our previous experiences.
Monika then shared this jem that comes from Lithuania, don't go into the woods if you're afraid of the wolf. So if a brand wants dive into the wonderful world of social, they shouldn't be afraid. They need to embrace it and if they are afraid of it then, well maybe they shouldn't get into it.
The City Scout
I really like this website called The City Scout. I found it today and I really like how they use the filter of local designers to create city quides.
So not only do you get to find out about really cool and lovely places the designer/artists get to promote their work.
My friend and fellow MCAD Alumni Emma Trithart has created a guide for the site and her suggestions are marvelous and her illustrations are gorgeous!
HootSuite Certification Program
Can we talk? Face to face, that is
Taylor Baldry, my very good friend from MCAD was featured in the Star Tribune! What a legend.
Can we talk? Face to face, that is
- Article by: KIM ODE , Star Tribune
As Taylor Baldry let a tablecloth settle over the card table he'd set up at Lake Calhoun, passersby looked quizzical. Nattily dressed in an argyle vest and corduroy sport coat, he added a small brass reading lamp, then opened three folding chairs. More sidelong glances. Then came the sandwich board: "Free Conversations."
Within seconds, Jennifer Mills of Chicago and Jan Andreasen of Crystal -- strangers themselves -- took Baldry up on his offer, and the three of them proceeded to discuss famous American Indians, a topic Andreasen chose from a menu of options. Snatches of dialogue carried on the breeze and, after a while, even a bit of laughter, suggesting that the conversation had evolved.
After about 20 minutes, Andreasen left to continue his walk around the lake, unexpectedly invigorated.
"I'm trying to break out of my comfort zone," he said, explaining why he sat down in a public park to chat with two people he'd never laid eyes on before. "If you never stop to try something new, you'll never experience more than what you're already doing."
Baldry beamed when he learned what Andreasen had said. He calls his project "The Conversationalist," a sort of performance-art piece meant to remind people how satisfying it can be to talk with someone face-to-face. "We're so engrossed in the Internet that we're in danger of forgetting what it's like to have a conversation with a friend," he said. "Or a stranger."
Over several weeks this fall, Baldry conversed with all sorts of people, offering them a literal menu of topics. "Starters" were just that: a book recently read, or the weather. "Main dishes" were meatier: Politics, religion, love. "Specials" provided a personal glimpse: Advice, dinosaurs, brainstorming, famous American Indians, weird dreams.
And on this particular afternoon, a special du jour: Things you can do with an egg.
For more than 2 1/2 hours, the folding chairs were never empty.
The heart of the matter
"The Conversationalist" had somewhat selfish beginnings. "I was conversation-starved," said Baldry, 28, who returned this fall to Minnesota after two years in Japan teaching English. Most of the English conversations he had there were, not unexpectedly, "fairly simple and very slow." He craved banter and substance.
Yet while reconnecting with friends, he realized how much he was e-mailing, texting, calling. Even Skype fell short. "You don't get the full experience."
So he resurrected "The Conversationalist," which he'd once done at an art fair, refining the concept. Offering topics helps people relax by giving them a framework, he said, and lets everyone leapfrog over the small talk -- helpful, since he considers himself an introvert. "You get right to the heart of the matter." The menu was on an easel placed far enough from the table that passersby could check him out without feeling committed.
Mills never hesitated. "I'm an art teacher, so I feel open to this kind of thing," she said. After Baldry briefly explained his purpose in sitting there, she was sold. "I think about this all the time, how there is this sort of truncated conversation happening where we think we can say things without the consequence of being physically there for a response."
Texting and e-mailing heighten the potential for misunderstandings, she said, "because I assume you know my imagined inflections."
Baldry isn't against technology, only against an unthinking dependence upon it. That puts him more in league with Jean Ross, who'd bicycled up for a quick chat. She loves Facebook for how it's enabled her to reconnect with high school classmates from 40 years ago. "That never would have happened otherwise," said Ross, of Minneapolis. "But I do like to talk to people in person. It is the best way."
'Admire little, hear much'
Some people pass by and laugh, which he expected. Some wait in line, which he hadn't expected. Then there was the couple who turned around and came back after having asked themselves, "Are we being good sports?"
"I liked that, the idea that they wanted to be good sports," Baldry said, smiling. He does his best to reward such bravery, asking questions, seeking insights, behaving as a sort of curator of conversation, and, indeed, he sometimes "feels like a museum exhibit where conversation is the artifact."
Because we all know how to talk, conversation may be undervalued as, well, just talk. But there is an art to having a compelling, provocative or simply delightful exchange of ideas. Ben Fields, of Minneapolis, and Kenna Finnemore, of Brooklyn Park, are both studying to be emergency medical personnel, and so are learning the importance of communicating in a way that elicits information but also puts people at ease.
They'd chosen to talk with Baldry about ghost stories. "We first thought he was a psychic, but he's just a really nice guy who likes to talk to people," said Field, after they resumed their walk. Learning more about Baldry's broader goal, he nodded. "I kind of picked up on that. In fact, I wished I would have asked him more questions, but he kept it centered on us."
That is the art of conversation, as Baldry himself is learning. "I'm not saying I'm good at it, but I'm improving."
For guidance, he looks to Benjamin Franklin, who was revered as a brilliant conversationalist, perhaps because he was an astute listener. As Franklin once wrote: "The great secret of succeeding in conversation is to admire little, to hear much; always to distrust our own reason, and sometimes that of our friends; never to pretend to wit, but to make that of others appear as much as possibly we can; to hearken to what is said and to answer to the purpose."
A conversation revolution
Baldry jots down the first name of each person, and how long they talked. If there's a lull, he'll add a few more impressions. He isn't sure what will come of being "The Conversationalist," "but there's something there." He'd like to continue in some indoor venue through the winter, and is waiting to see if someone is game.
He's currently unemployed but full of ideas, many of which are displayed on his website,www.projectcentaur.org. It's also the best way to contact him. So, yes, we are all inextricably linked to the Internet and its marvels of communication.
Just don't mistake communicating for conversing -- a distinction he happily admits to sounding old-fashioned.
"There's a sense that conversation seems to be this old-timey thing, and it doesn't have to be," he said. "I don't want it to go the way of the record and have it become something that only purists enjoy. I'd love to take this further and fuel a conversation revolution.
"But for now, it's me at a table in a park."
