7 Ways to Keep Your Business Moving Forward in Summer

The Dog Days of Summer. A time when a young entrepreneur’s fancy turns lightly to thoughts of Barton Springs. Yes, go to Barton Springs! Go to barbecues, outdoor concerts, and work on your tan (safely, of course). But don’t neglect your business during this typically slow time for many of us. Even if everyone you know is off on vacation and it may seem hard to get anything done, here are a few tips to help keep your business moving along, so you’ll be ready to jump in the fall when everything gets back to normal. Hopefully, you’ll have a jump on your competitors who were too busy drinking mojitos to keep their focus on business.

1)      Make time for strategy sessions.  If your business gets slower during the summer it may be a good time to recap the previous year and plan ahead.  Have a company meeting, do a work planning retreat, or possibly make regular meetings a little longer to look at ways to improve and plan for the following year.

2)      Attend more networking events.  During the other months, there may barely enough time to eat, let alone go to networking events.  This summer might be a great time to do more networking and business building for the following year.

3)      Create your own networking events. Are all your favorite happy hours taking a summer hiatus? Now is a good time to have an open house, invite some key business partners for a lunch or happy hour, or go through your rolodex and set up some lunches. Networking isn’t just about meeting new people, but about deepening your relationships. Use the vacuum of available time to connect, reconnect, and more firmly establish relationships with the contacts you’ve made in the past. And networking doesn’t stop with official happy hours – going to a pool party? Don’t forget the business cards! You never know when you’ll meet a prospective customer or business contact. Don’t be obnoxious about it, but genuine connections can be made anywhere. For those of you who’ve met me at pool parties or the grocery store, you know what I’m talking about.

4)      Take a vacation.  Studies have shown that taking a vacation and resting can have significant positive impact on productivity upon return to work.  If you exercise intensely, you know the importance of having rest days built into training to recoup and re-energize. If you can’t take a whole week, take a few long weekends – even a few days off can make a real difference. And if you have a startup and can’t afford to go anywhere, make it a “staycation.” Drink boat drinks in the backyard and put your feet up. Aaaah, doesn’t that sound relaxing?

5)      Catch up on your emails. We all do it – let those emails and follow-ups pile up. Now is a good chance to clear out your mailbox and be sure you’re not missing vital business communications or information that could help your business. Make sure you’ve answered everything, and file away what you need to. Get that mailbox skinny for summer, ready for bikini weather!

6)      Catch up on your reading. We all have shelves of business books and filed away newsletters (online or otherwise) that we would love to read, but just never have time. By not keeping up with the industry news, and keeping our education alive by reading, we are falling behind. While we advocate taking some time for reading every day, now is a great time to read more than just the newest Steven King thriller – find some recommended reading lists (I can send you one if you don’t have one), and do some learning by the poolside. You’ll feel like you’ve accomplished more than the perfect tan.

7)      Take Advantage of Slow News Cycles. If not much is going on, now could be a good time when your business can make some news and earn a little media time. Write guest blogs or articles, submit newsworthy press releases (try to time them appropriately with the news cycles), and find ways to connect your business with what’s going on around town.  If  you need some ideas on promoting your business in this way, feel free to reach out to us or one of the many excellent resources in town for some help.  If all you’ve read about for 4 days is the drought and how hot it’s going to be for the next week, it might be a good time for a special interest story about a small business doing something great. Let that story be about you!

We hope you find a few tips here to help you keep your business moving this summer. If you’d like some personalized ideas feel free to call us, we’re always here to help.

7 Ways to Overcome Procrastination

We are proud to present our first guest writer in this June Newsletter.

Kate Stewart, Ph.D. is a certified mediator, author, organizational consultant, and executive coach. She recently founded the web-based Gold Scaffold system (www.goldscaffold.com) scheduled for launch in July 2011. The Gold Scaffold portal will enable people to overcome procrastination, impulsiveness, and weak willpower to achieve their goals. Dr. Stewart also authors a blog at www.myscaffolds.com.

 

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7 Ways to Overcome Procrastination….Tomorrow

You’ve got a great idea for a business. You may already be building your venture…you may have launched. Like most small business owners, you have a million things to learn, to do, to plan.

Entrepreneurship is a lifestyle like no other. The core requirement, in addition to vision, is self- discipline. Even if you have a team to support you, YOU are ultimately responsible for whether things get done and done well.

Most small business owners tell me their greatest challenge is not competition, or marketing, or even finance. No…it’s the daily demand to stay with the program. You don’t answer to anyone else (other than your customers and shareholders, if you have them). The work is often frustrating or drudgery. Many other activities are calling your name. How can you ensure that you will maintain your commitment to your work so that your company is successful?

1. Don’t feel guilty – it’s not your fault. Mark Twain said, “Never put off until tomorrow what you can do the day after tomorrow.” 95% of people admit to procrastinating. A quarter of these say procrastination is a chronic characteristic. Is it laziness? Is it perfectionism? Only rarely. Instead, it’s evolution. The limbic system, or “reptile brain”, evolved early in our primate history and is similar to that of most creatures. It is controlled by instinct and enables us to meet our immediate survival needs. The prefrontal cortex, or executive function, evolved much later. Its job is to analyze and plan future benefits. Usually the limbic system and prefrontal cortex work together effectively. But when the limbic system is stimulated by immediate sensations, procrastination results. The long horizon view of the prefrontal cortex is cast aside to satisfy immediate desires. It’s not our fault but we have to deal with it.

2. Know when procrastination makes sense. Sometimes putting off tasks is more productive than compulsively tackling them. Do you have a niggling sense that you need more information, a different perspective, or better timing for your task? What you (and others) may see as procrastination may instead be resistance to the task due to an almost unconscious or instinctual recognition that delay is best. When this happens, identify what you’re waiting for and plan flexibly based on this knowledge. Work on another task until you have everything you need to give ample attention to the first one.

3. Identify your procrastination triggers. The more impulsive we are (see #1), the more we avoid the anxiety related to deadlines or long-term tasks. No, it’s not logical. Yes, it’s self-defeating. And yes, we all do it. Spend time identifying what triggers your impulsiveness. Are the birds singing and golf course beckoning? Ask a friend to hide your clubs until the project is completed. Does a nap seem more inviting than writing that report? Plan your most important work first thing in the morning while you are still fresh.

4. Keep moving. I’ve been reminded more than once that it’s easier to rudder a ship that is already moving. In those moments when you are tempted to take a break to avoid an unpleasant task, resist. Energy in motion tends to stay in motion. If you work at another task instead of resting, you will find it easier to approach the unpleasant task. Energy at rest tends to stay at rest. That one is self-explanatory.

5. Examine your self-talk. If you, like me, can easily justify tweaking your website rather than calling that difficult client, your creative self-talk is probably highly evolved. When it works against you, this is not a good thing. Take the time to listen to your reasons for procrastinating. Are they excuses or valid reasons? Most of time, our justifications have enough truth in them to trick us. Is your justification entirely true? If not, correct it. For instance, you dread marketing and tell yourself “I can’t market until I have a product.” Is that entirely true? Perhaps you can develop (or hire someone to develop) a landing page that previews the product. Identifying your false self-talk can lift major barriers to productivity.

6. Don’t visualize success…alone. Visualization has been all the rage for the past decade or so. All types of people are enjoying mental images of their future success in the hopes they will attract it. Does it work? Yes and no. Visualization alone tricks your brain into thinking you have already completed your task. This diminishes motivation. Instead, imagine completing your task. Next, imagine what it will take to get you there. What obstacles and challenges will you face? According to the research, holding these two images in your mind simultaneously is the best guarantee you will reach your goal and overcome procrastination.

7. Use your energy wisely. You are like a power grid. If you allocate physical, mental, or emotional energy in one area, it decreases energy in other areas. Worry about that upcoming presentation devours energy needed to complete your present task. Multitasking reduces your ability in every area. At the beginning of the day or the night before, determine your goals and priorities for the day. If possible, tackle them one-by-one. Use the strategies above to keep your mind on the task at hand. You may be very surprised at how much more productive you can be. And at how much more you enjoy your work.

These are just a few tips for overcoming procrastination. I hope you find them helpful. We welcome your feedback and especially the tips that you have found helpful in your work.

7 Steps to Communicating with Your Customers

So, you’ve got something great. Now you just have to SELL it. Whether you have a product, a service, a website, whatever, you have to find a way to communicate the value to the end customers, whether you are B2C, B2B or B2G.

1. Determine your customer’s needs. What pain are you solving for them? What are the key components of what you are offering, and how can you adequately communicate that? Boil it down to: the problem you are solving, how you are solving it, why your solution is best/fastest/cheapest, etc.
2. Segment your market. Is your product/service applicable to numerous markets? Segment them, and identify the key features of your different customers. You will need different strategies to communicate with different groups, so be sure to really identify these groups. And even if you truly believe your market is “everybody” (which I assure you it isn’t), segment into different groups with identifiable commonalities. You cannot reach everyone in the same way, so be realistic about segregating your customer groups.
3. Go where your customers are. Do your customers hang out on Facebook? Then you need to be there. Do they attend Chamber functions? Then go there. Do they read newspapers? Then advertise there. Not everyone utilizes the same media in the same way. Really research where your customers’ eyeballs are, and make sure you are there.
4. Integrate your campaigns. I often hear about someone having a marketing campaign AND a social media campaign. Social media should be part of the total marketing campaign, not separate and apart from it. Social media is important, but it is not the only tool you are likely to need. Make sure your campaigns have a common look and feel, and support one another. Don’t spend all your time on Twitter if you really need a media buy. And don’t neglect Twitter if all of your target customers are hanging out there. Be smart, get advice where you need it, and take a comprehensive view of your marketing.
5. Give Excellent Customer Service. Sure customers take up your time. But what are you in business for if not your customers? The best marketing you can get is word-of-mouth referrals, and if you treat your customers right, you will get repeat business and referrals. It’s a lot cheaper to keep a customer than to get a new one, so do what you need to do to make your customers happy. That being said, don’t be afraid to “fire” a bad customer. Focus your energy on your good customers – and make them feel special, wanted, noticed, and needed. I realize this should go without saying but, sadly, it does not.
6. Practice Continuous Improvement. Listen to your customers. Improve your products and offerings according to their needs. Don’t wait until you’re perfect to sell, get the first viable product out there. But continue to improve based on a continuous feedback loop with your customers. This goes by several names, but you’ll find some excellent “Agile” development resources locally to learn more about this theory of development. I like it because you get on the market quickly, but keep improving along with the needs of your market.
7. Keep  in Touch With Your Customers. This should also go without saying, but again, does not. If you don’t keep in touch with your customers, they will forget about you. Track your customers, gather information from them, keep them involved, and turn them into repeat customers (or referrers).  You can engage them on social media, send out a newsletter, participate on blogs – the method will vary depending on your business and your customers. But stay in regular touch. Provide a value beyond what you are selling. You will build loyalty and long-lasting relationships.

I hope these few common-sense tips are helpful to you and your business. If you have additional tips, feel free to contribute them on our BLOG. And feel free to reach out to us if you need some help with your marketing plan. We are always happy to offer thoughts and ideas to help you succeed.

7 Things I Love About Austin

We’ve been busy here in the Economic Development Division, with many companies and individuals wanting to come to Austin. And why not? Austin is a great place to live, work and play. I moved here for school in 2005 and have thus far refused to leave. I know I’m not alone there. We are lucky to live in one of the best cities in the world, and the word is getting out, for better or worse. So as Spring is upon us with all its attendant sunshine, gorgeous weather, blossoms (and pollen, which is for another list), and a flurry of business activity, I thought I would take this time to enumerate some of my favorite things about Austin, which are likely some of the same reasons we are seeing so much interest in coming here.

1.       The weather is fantastic. I love living somewhere I never have to put my shorts away. I don’t like the high air conditioning bills in the heat of summer, but I love a climate that allows for outdoor activities year-round. With 300 days of sunshine, wonderful lightning storms, the occasional ice or snow storm (I’d like just a few more of those, please!), you just can’t beat it with a stick.

2.       The community is amazing. I really love the people here. I find folks to be open, welcoming (although I don’t mention my California or Yankee heritage TOO often, just in case), generous, lively, fun, intelligent, hardworking, relaxed, and tolerant. This bleeds into the business culture as well, where I’ve found mentors to be plentiful, business owners to be generous and helpful to one another without end, and just a generally cooperative and easygoing business culture. It’s a beautiful thing to see, and a wonderful place to work.

3.       Opportunities for art, music, and culture are abundant. I generally suffer from too-much-going-on-it is. At any point in time there are a wealth of opportunities to go out and do something fun.  Music going on everywhere, all the time, art right here in City Hall, live shows at every corner, movies not just showing but being filmed here . . . it’s awesome.  If you’re bored in Austin, it’s because you want to be.

4. Barton Springs. I love Barton Springs enough to merit its own category. In summer if I’m spotted with a gym bag there’s an 80% chance I’m headed to Barton Springs. There is nothing quite as amazing as jumping into frigid water when it’s hot enough to melt iron. The shock to the system is invigorating and refreshing. This does not belittle the other wet options available to us, including Hamilton Pool, Deep Eddy, and a plethora of public pools. And Ladybird Lake, of course. Plenty of places to take a dip when the weather’s right (approximately 300 days a year).

5. I can afford to live well here. I live 3 miles from downtown, in a 3-bedroom house, with a good-sized yard, in a neighborhood I adore, with transit less than a block away, on streets that are walkable, bikable, drivable, scooterable, bussable . . . I’ve never lived anywhere that offered quite so much so affordably. I love being in the middle of everything, while still having some privacy and space around me. It’s terrific.

6. It’s Weird. Yep. You knew I had to go there. I think of Weird as being creative, risk-taking, accepting of difference. And Austin is all of that. You can go to the finest restaurant in a tiara and ballgown or shorts, and no one will bat an eyelash. You can have a beer with Leslie in the same bar where your public officials and local celebrities hang out. You can paint your house pink and put sculptures on your lawn (in some neighborhoods, anyway). Hippies mingle with yuppies, hipsters, youngsters, boomers, tweeners, it’s all good. Weird never felt so right.

7. The Food Cart Craze. I love eating well. I love eating affordably. Our plethora of amazing mobile eateries allow us to have the best of both worlds – fast and affordable, but still gourmet, healthy (sometimes) and delicious. Especially where two or more are gathered into parks allows for food courts all over the city, where you can taste a bit from here, there, and everywhere.  It’s also an affordable way for a budding restaurateur to get his or her feet wet, see if there’s a market, and pursue their dream. I love that.

This is not a comprehensive list, of course. But today, on this gorgeous day, during this amazing month (SXSW, RISE, my birthday, the coming of Spring), these are what I think of when I think of my adopted home town of Austin, a place I have come to love and think of as my own. Feel free to contribute your thoughts and additions, and don’t worry about keeping it a secret, Austin is too good to resist sharing!

7 Tips to Meeting Money

So you need funding. And that’s a problem, because money can be hard to come by. Here are a few quick tips to getting out there and potentially meeting your funder.

1. Talk to Friends, Family & Fools. This is Stage One in any funding plan. If you can’t ask your friends and family for money, who can you ask? It’s also a good way to practice your pitch. Be careful about offering equity, though. If you plan to get outside investment down the line, you need to worry about dilution and other technicalities. Think about convertible debt or other options for paying back early investors with a reasonable return.

2. Consider the Credit Card. If you need a relatively small amount, think about the interest you pay on your credit card before taking a loan at a higher interest rate. This can be a painful thing to think about, but you as the Founder need to be “all in” before you can expect others to come in on your deal. Make sure you write yourself a note for any money you put into your company, with the expectation that you will be paid back along with other early lenders.

3. Consider Angels. Our own Central Texas Angel Network and others can provide earlier stage funding and smaller amounts, often with more participation and mentoring that comes with the money. It’s not necessarily easy to get, but can be a good place to start. It’s also relatively inexpensive and easy to apply.

4. Go to Pitch Events. Even if you aren’t ready to pitch yourself, go to these events and watch others pitch. Listen to the feedback and questions they get, to help you prepare your own eventual pitch. Mingle and meet funders – build relationships before you actually need the money. There are pitch events all over Austin, including several at RISE Global (next week!), Rice Alliance, Tech Ranch, Austin Entrepreneurs Network, SXSW Accelerator, Capitol Factory, and others. Keep an eye out and go when you can.

5. Attend Meet the Lender. The City of Austin puts on a Meet the Lender event every year. The next one is August 4, 2010. This event brings together funders who want to work with smaller companies, and have experience dealing with small businesses. This is only one of the great events our Small Business Development Program provides to small businesses. More info at www.ci.austin.tx.us/sbdp.

6. Network! Beyond pitch events, you never know where you might meet a funder at a networking event. Whether at SXSW or just regularly-scheduled year-round events, you can meet funders in your target area all over the place. If you want some ideas of events that are likely candidates, contact us directly. There are too many to list here.

7. Use Online Tools. AngelSoft is a tool used by funders to track deals, and you can sign up with either a free account (allowing others to see your deal) or a variety of paid options (allowing you to push your deal to targeted funders).

These are just a few quick tips to get you started. We are happy to give you more personalized suggestions, along with other assistance you may need. In addition, we have some LIMITED OPPORTUNITIES available during SXSW for companies in the INTERACTIVE AND MUSIC SPACE who are actively seeking funding or are close to that stage right now. Please contact us directly for more details.

7 Steps to Surviving and Thriving at SXSW

Ah, SXSW. The time of year when half the universe seems to descend on Austin for 10+ days of networking, education, merriment, and sleep deprivation. The most glorious – and exhausting – time of the year. Whether you are an official attendee or not, SXSW provides opportunities for you to grow your business and make connections. We’ve been doing this for awhile, so we’re providing some starter tips to help you make the most of your SXSW experience.

1. Get a badge. The best way to really get to see and do everything is to just break down and get a badge. Use your marketing budget, it will be money well-spent. The terrific panels, the badge-only parties, the trade show, the unmatched networking opportunities – these can only be enjoyed with a badge. If you have a little extra in your budget, upgrade to a Gold badge, and enjoy movies after the Interactive show is done. If you’re really flush, go for a Platinum – then you can work at Interactive, and play during Film & Music. And the truth is that networking goes on for the whole 10 days. Depending on your industry, you can take advantage of those hordes of people all week long. Also, keep in mind that panelists get a free badge. If you have associates putting on panels, some may still need individual speakers. Or next year, submit a panel of your own! It’s a great way to get a badge.

2.       Find the free stuff. If you CAN’T buy a badge, don’t despair! There are plenty of free events going on. The first thing to do is check online for all of the parties that will admit you with an RSVP. RSVP to EVERYTHING (this goes for whether you have a badge or not) if you think you might want to go. Even with a badge, you may need to get an RSVP in early to be admitted. Keep track of online planners such as Plancast that can help you track official and unofficial events. Follow “in-the-know” folks on Twitter to get the intel during the event. Many companies have parties and launches, and most do not require a badge. You can even wander around and just see what’s going on around town – you’re bound to find something interesting to attend. For music lovers, there are a number of parties and multi-day events that just require you to RSVP and show up to stand in line and get a wristband. Keep alert for these announcements to get yours!

3. Take advantage of the hordes. Whatever your business, you can likely find something useful about thousands of people descended on Austin for Interactive, Film, and Music festivals and conferences. Get out there and market, sell, mingle, interact! Learn from people from all over the world, make connections and keep them after the event is over. Don’t just collect cards, make connections. Keep in touch with your new contacts, follow-up. Without follow-up, networking is just a waste of time.

4.       Use Social Media. Whatever the schedules say, there is always last-minute information out there, but it can be hard to find. Impromptu parties and events can pop up, or scheduled parties may cancel or fill up. If you follow the right people on social media outlets (Twitter, Facebook, etc.). Find the right people to follow, and check in frequently. Last year the Statesman published a list of “people to follow” during SXSW. I won’t provide a list here, but if you really aren’t sure, send us a message and we’ll give you some ideas. Also, keep an eye out for the apps out there that might help you with your schedule. SXSW had an official version last year, and we’re keeping an eye out for what may be released this year.

5.       Find a Veteran. Or 10. Nothing beats experience. Find a friend who’s been there before, and follow them around, get tips, pick their brains. If you don’t know anyone going, make some friends early. SXSW is a marathon, with many, many choices to make. You want to make the most of your experience, so talking with folks who’ve been there before can be extremely helpful.

6. Sign up for everything IN ADVANCE. As we mentioned earlier, some events require an RSVP to get in, even if you have a badge. Do your homework now and get signed up before it’s too late. This even goes for movies and bands – SXSW provides opportunities to get first-in-line privileges on a daily basis, so no matter what you’re doing, help maximize your chances of doing what you really want to be doing by preparing in advance. Scour the internet, from the SXSW official site to the official and unofficial party lists. Run a search on Twitter, ask your friends – find out what’s happening and sign up. Right now.

7.       Hydrate. Eat Right. Sleep. A sage man once told me: “SXSW is a marathon. You can drink all you can or stay up all night, but you can’t do both.” He was right. Sure, SXSW is fun, but beware all the free drinks and even the free food (a full week of nothing but Tex-Mex and barbecue can make for a pretty uncomfortable time).  Have a drink or two, but chances are you’re here to do some business.  Keep sharp, get some sleep, find a vegetable or two somewhere, and drink lots of WATER. You’ll feel better and get more accomplished. And get some sleep. It won’t be a lot, but at least 4-6 hours a night can make a world of difference. And think about your footwear carefully – you’ll be logging miles on your feet, so make sure you have good shoes well broken-in before SXSW starts. I promise, you will thank me for this tip later.

This is just a starter list. If you want some tips personalized to your situation, don’t hesitate to give us a call. We’re happy to make suggestions.  And if you’re looking for opportunities to showcase your interactive technology, let us know. We know of some opportunities out there.

Seven Things to Know about the Biotech Industry in Austin

Our emerging technology program is designed to attract, retain and grow companies and resources in the technology industries. One of our key industries is biotechnology. We have been fortunate to see a lot of growth in Bio in recent years, including medical devices, pharmaceuticals, and diagnostics. The science and technologies involved in bio are fascinating and important to our quality of life. We are excited to see continued growth and to work to propel the local bio industry to even greater heights in the future. In case you aren’t up-to-speed on Biotech in Austin, here are a few facts to get you started.

1.       The Milken Institute has called Austin one of the top 12 biotech and life science centers, noting that clustering innovative activity is imperative to the industry.

2.       BIO-TECH EMPLOYMENT BASE 2007 3rd Quarter

• High tech manufacturing – 35,255
• Health Services – 57,005
• High tech information & other IT – 29,615
• Engineering, R&D, & labs / testing – 19,342
• Total – 141,217

3.       Hanger Orthopedic Group Relocates HQ to Austin Hanger Orthopedic Group, Inc. (Hanger) recently announced plans to relocate its corporate headquarters to Austin, Texas. The relocation will result in the creation of 130 jobs for Central Texas increasing to a total of 250 jobs in the future. Hanger is the world’s premier provider of orthotic and prosthetic (O&P) services and products, offering the most advanced technology, clinically differentiated programs and unsurpassed customer service. This relocation is an example of the City of Austin’s efforts to target biotechnology companies.

4.       Biotech/healthcare investment as a percentage of overall venture capital investment in Austin was over 10% in 2010.  This was bolstered by early stage—Mirna Therapeutics’ $25.0 million investment.

5.       Here is a list of companies that have based on successful recruitment and expansion by the Greater Austin Chamber of Commerce and The City of Austin during a “down” economy.

New company announcements this year include:

• Hangar Orthopedic
• Owens & Minor (medical equipment manufacturer who took 80,000 square feet a Lincoln Vista)
• Pain Therapeutics
• Vermillion
• Pioneer Surgical – Spine Division
• Viral Genetics

Existing company expansions include:

• Inova Labs
• e-MDs
• Healthtronics
• St. Jude Medical

6.       In partnership with the City of Austin, the Austin Technology Incubator launched ATI-Bioscience to support early-stage companies and entrepreneurs developing life sciences technologies. Member companies include ventures focused on drug therapies, medical devices, diagnostics, research tools, and other related technologies.

7.       The Austin Chamber hosts BioAustin, a website dedicated to providing pertinent RESOURCE information to those in the life science industry — whether located in Austin or Central Texas or seeking to relocate or partner with one of our companies or institutions. The site is designed to give a brief description of resources with direct links to specific information. You can find more information at www.bioaustin.com.

We are excited about the future of Bio in Austin. If you’d like to learn more or make any connections in the industry, don’t hesitate to call on us! We’re always here to provide information, connections, and assistance.

7 Interesting Facts About the Austin Gaming Industry

We all know (I hope) that gaming is an important sector here in Austin. We have had innumerable gaming companies start, grow, exit, and thrive here. Our film industry provides an excellent overlap for gaming, as artists, musicians, developers, and programmers find work in both industries at one time or another. It also helps add to the “cool” factor which is so important to us here. Our gamers help keep us hip, cool, smart, and innovative. Many thanks to Jennifer Bullard with IGDA and the new Austin Game Incubator (profiled below) for helping with some of these terrific statistics and figures.

1. From 2005 to 2009, the entertainment software industry’s annual growth rate exceeded 10%. Over the same period, the entire U.S. economy grew at a less than 2%. Texas’ video game industry grew by 13.72% in 2009; nearly quadruple the state’s overall growth, and added $3 million to the state’s economy. Austin’s digital media sector accounts for nearly $200 million in annual economic activity and employs over 1,100 people at an average wage of nearly $70,000/year.

2. On average, every job that gets created in the local game industry ripples through the economy resulting in direct, indirect, and induced economic activity totaling $357,507/year. If one start-up game company fails that otherwise would have created 30 jobs, the local economy misses out on over $10 million in total annual economic activity.

3. Texas has the second largest concentration of game developers in the United States. (But number two tries harder, right?)

4. Gaming is a target industry for economic development in Austin. Along with our other digital media sectors, as well as film and music, we specifically target gaming companies and supportive industries for relocation and expansion efforts.

5. The City of Austin supports gaming through its support of the Austin Chamber, Austin Technology Incubator, Skillpoint Alliance, Digital Media Council, and other organizations that focus on support and promotion of the gaming and related industries. We are always looking for new ways to promote the industry, and are excited about initiatives like the Austin Game Incubator to further increase resources available to startups and entrepreneurs in the industry.

6. Call of Duty: Black Ops had more revenue in its opening day than the latest Harry Potter sold in the entire opening weekend. $360 in North America and the United Kingdom alone.

7. IBM’s cell chip, the heart of the Sony PlayStation III, was largely designed in Austin. The IBM Austin facility consistently ranks first of all IBM locations in number of patents generated.

7 Steps to Networking Success

We all network to some extent or another, and some of us are very good at it, some hate it, and some just aren’t sure how to use a network to actually improve business, rather than just take time away from running our business while we attend endless happy hours. While there are many experts out there, here are a few keys I’ve learned over a long, happy networking career.

1. Target Your Networking Activities. First decide who it is you’re looking to meet. Very few of us need to just know anyone and everyone. Find out who goes to what events, and target those events first. If after a couple of times you find that you’re not meeting the kinds of people you need, move on to other events. If you want to find out more before you go, ask people you trust. Our team spends a lot of time at events, so feel free to ask us if you want a starting list of networking activities that will work for you.

2. Talk to New People. It’s easy to stand around and talk to your friends. While it’s important to maintain existing relationships, your primary goal is probably to meet NEW people. Make an effort to talk to some new people. Set a target number if that helps. If you’re extremely shy, try to leverage existing contacts to introduce you to new people. Ask someone you know or trust who you should meet in the room, and ask for an introduction. Most people will be happy to help.

3. Tell Your Story, But Don’t Sell on the Spot. Networking is about building relationships, not making instant sales. People are more likely to hire you/buy from you/work with you if they know and like you. So networking is about building and maintaining relationships more than anything else. Build the relationship, and the business will follow. That being said, be ready with your elevator pitch when someone asks what you do.

4. FOLLOW-UP. If you collect cards and do nothing with them, you’ve wasted whatever time and money you’ve spent networking. Networking is about building lasting relationships, and while you might do that by running into the same person 10 times at different happy hours, you should have some kind of formalized follow-up. Send an email, invite to lunch, ask for a coffee meeting, or send a note. It’s up to you how you follow-up and different methods are appropriate for different situations, but do something, or you’ve wasted your time.

5. Keep Networking Activities Reasonable and Manageable. It’s easy to go to hundreds of happy hours, and pretend that you’re getting work done. Unless you’re a lobbyist, networking isn’t your business. So make sure to check in and be honest about which events have the right networking targets for you, and not which has the free drinks or good appetizers. A free meal is fine, but that’s not what you’re there for (although I realize how much this may mean to a starving startup entrepreneur, really I do).

6. Evaluate Cost-Benefit for Events. Some events are free, some have minimal cost, and some are pricier. Do your own cost-benefit to figure out whether the money and time is well-spent. Some free events may not be worth the time you spend at them, and some of the pricier events may have such valuable information, education, or quality attendees that the cost makes sense. Clearly define your goals, and that cost comparison will be easier.

7. Have Fun. If you’re an introvert, networking might feel like torture.  But if you look miserable or terrified, no one will want to spend their time talking to you. If you’re having a great conversation, folks naturally want to join in. If you’re laughing and having a good time, it shows, and will attract folks to you. Everyone is there for the same reason (or at least similar reasons). Be someone that people want to talk to. It is easy if you are genuinely interested in what other people are up to…it’s just a matter of asking questions. Practice with your friends if you need to, or better yet, bring along a “wingman,” who can help get conversations started and help get you introduced to new people.

Bonus tip – do NOT forget your business cards. If you don’t have any, get some. There is no excuse for not having a card to give to someone who is interested in staying in touch with you. There are services to get cards printed free or cheap online, or you can even print them at home in small quantities. Never travel without business cards. And keep in mind – networking doesn’t stop after the happy hour. Your whole life is a networking exercise. Be the kind of person people want to get to know, build your contact base, maintain your relationships, and keep your ultimate sales or business goal in mind. Any house party, tailgate or picnic can lead to great contacts. Have your cards with you!

These are just a few starter tips – there are plenty of great experts in town who have books, classes and events designed to help you network. Our team is also here to help you set and meet your networking and business goals. Don’t hesitate to call on us, we’re here to help!

7 Things You Always Wanted to Know about Economic Development in Austin But Were Afraid to Ask

This month we’re taking a detour from business advice to talk about what it is we actually DO in our office. What is economic development? Why do we do it? How do we do it? Do we use our powers for good or evil? Should you love us or hate us? (We hope if you read this newsletter that you love us, but we’re open to discussion.) Because we may not guess all of your questions correctly, don’t forget that you can link to our BLOG version of this article to ask any questions we may have overlooked. We promise to answer all questions with candor. We have no secrets here. This article is a bit longer than usual, but we wanted to be sure we provided thorough information. Feel free to fast-forward down to our news sections and company profile below if it’s an overload of information for you!

1. What do you all do, anyway, other than bring in Californians and make traffic worse on I-35 and Mopac?  Our office, Economic Growth & Redevelopment Services, includes multiple divisions, including Small Business Development, Cultural Arts/Art in Public Places, Mueller, Redevelopment/Downtown/Special Projects, Music, and our division, Economic Development (ED). ED is responsible for bringing jobs and investment into Austin. We do that through attracting new companies and helping existing companies to grow. Of our recent attraction deals, more than 80% of jobs have been filled by Austin area residents. We also work to improve the infrastructure and services that companies need to succeed, such as financial resources, professional services, workforce, education, and so on.
2. What are incentives, and why are they used? Aren’t these just corporate handouts?  Incentives provide a way for locations that might otherwise have a hard time attracting development to level the playing field. What that means is that Austin may have some great assets to attract a company, but a more remote location would not, so providing some financial incentive can help them to attract companies they otherwise could not. Unfortunately, this changes the game so that sometimes everyone has to put some incentive on the table just to be considered. But a great location like Austin has to provide less than another less-attractive location. Here in Austin, our incentives are all pay-for-performance. This means they have to create the jobs and make the investments BEFORE they get the agreed-upon amount in increments throughout the duration of the deal period (often 10 years). That means that if they don’t do what they say they will do, they don’t get the incentive. Another unique thing about incentives in Texas is that a company has to have an offer from a locality before they qualify for state-level incentives (it’s more of a deal-closing fund, in theory). In other states this can be different.
3. What about small businesses, why don’t they get incentives? Our incentives are structured generally as a percentage of new incremental property taxes paid as a result of a relocation and/or expansion. Since small businesses often have little or no property tax increase (which is what we base incentives on), 50% of the property taxes would not be of any significance. We generally use incentives for deals that will create a large number of jobs and a large investment, to get the most return for the investment. What we provide instead for small businesses is The Small Business Development Program (SBDP), which is an entire program devoted to small business success. The SBDP provides business counselors, low-cost and no-cost classes, software and access to programs in the Business Solutions Center, and much more. Our Emerging Technology Program also provides consulting services, and additionally provides “matchmaking” and “cheerleading” – we will help make connections you need and help promote you to the extent we can do so without interfering in local competition.
4. What kind of businesses do you target? Can any business get an incentive? We have target industries which are aligned with the Austin Chamber of Commerce, Austin Technology Incubator, and the current climate of industry in Austin and throughout the country. We currently focus on Clean Energy, Digital Media, Wireless Communications, and Biotechnology/Medical Devices. We will consider companies in other industries, but they will get extra points for being in a targeted industry. When I refer to points, we run all companies through a matrix designed to determine how they will fit into our local economy. What kind of jobs will they provide? How much will they pay? What are their benefits? Will they source locally? Will they fill a hole in our local economy? Will they put undue hardship on existing companies? We also do a thorough fiscal impact analysis to determine the bottom-line impact on our community, positive and negative. We never provide more in an incentive than a company will provide to our overall economy.
5. How does Austin compare to other cities? In general, we provide fewer and smaller incentives than our competitor cities. Many cities provide up-front cash, which we do not do. Many will provide far more than the immediate economic benefit a company will create, which we do not do. Some cities will give away property and buildings, and even significant contributions to payroll and operations. We always perform a cost-benefit analysis, and then make sure that we don’t give back more than we will make in economic benefit. We maintain comparisons to peer cities on our website, and the number and size of incentives we give in Austin is consistently lower than our Texas peers. We may lose some relocations because of our conservative policies, but we prefer to remain selective, and only make the deals that make the most sense for all concerned.
6. Who makes the decisions about economic development in Austin? As in many things, we serve at the pleasure of the Austin City Council. They set our goals for business targets, and adopt the matrix we use to evaluate projects. They must approve all economic incentive packages. In addition, the citizens of Austin have a voice.  Our department posts information on all deals in advance of Council meetings, providing time for review and public comment before Council meets to decide on incentive packages. You are always welcome to come and let us know your thoughts. Online commenting is also available during the comment period.
7. What can you do for me? In addition to business counseling and awesome resources in the Small Business Solutions Center, the Emerging Technologies team is here to provide consulting, matchmaking, and cheerleading for you. We can help you make connections, and connect you to the resources you need. We can also help promote, like in this very newsletter! We also have a Business Retention and Enhancement low-interest loan available to companies locating in certain downtown areas, and we are always working to create programs that benefit all of our companies. If you have suggestions for services or programs that would benefit you, help us to make our program stronger by letting us know!

Since I can’t read your minds (although I hope I’m a pretty good guesser), you may have questions I did not intuit here. Please feel free to read my blog version HERE and ask any additional questions you may have, or make comments. I’m happy to have a candid discussion and get all of your questions answered.