Archive for the ‘Social Media’ Category
12/26/2009 | 8:28AM
I created my Twitter account (CFOwise) on December 26th, 2008. After one full year, this is what I have learned:
Twitter is like every other form of connecting with people (yes, I’m excluding all non-person driven Twitter accounts). Whether it be face-to-face, over-the-phone, through social networking, or via some other medium, connecting with people professionally and personally is about BUILDING RELATIONSHIPS. That’s it. No secrets or amazing revelations. But here are some thoughts on how Twitter has helped me to build more and better relationships during the last 12 months.
As my vision for my Twitter usage began to take shape, I found that there were some people with whom I wanted to connect that did not seem to feel the same way towards me. It did not take me long to realize that they had nothing against me, rather, they did not understand the need to create and foster relationships. They thought Twitter was a race to gain the most followers and that somehow that would be fulfilling. Let’s be honest…most of those people have gained thousands, if not tens of thousands, of followers only to find that they were getting a lot of noise, or tweets, but they really didn’t have anyone with whom they could connect and create anything of value. A lot of these folks have even written blog posts about how they have either unfollowed everyone to try and de-clutter their account and start building real relationships or they have started completely new Twitter accounts so they could start fresh with relationships, not numbers, as their focus.
Whether in business or in personal matters, just building relationships is highly ineffective. You end up knowing a lot of names but aren’t able to add much value to any of them. Building relationships of TRUST generates very effective relationships, the kinds of relationships we all want. Twitter is a tool; it is still up to each end-user to build the best kind of relationships. So, here is a brief list of the some of the key elements of building relationships of trust and how we can apply them to our relationships on Twitter.
Consistency- Be a regular, even if it is for a short time each day. Respond to your @replies and Direct Messages (not the sales-oriented and spammy ones).
Add Value – Do not just listen to the conversation. Jump into the fray and communicate. Add value to what others have to say. Say things that are valuable in the first place. Re-tweet the really good stuff you come across. Add value to the conversation.
Be Genuine and Real - There is no faster way to destroy trust than to fake it. Be yourself. If you do that, you will be happy with the relationships you have built. I sure am after my first year.
Stay Away from the Trash – Yes, there are certainly some undesirable Twitter accounts. Just block them and move on. Filter and flourish.
Help Others- Think about what others are trying to get out of Twitter and help them get it. If they want exposure, then help them with re-tweets and #followfridays and whatever else makes sense. This is an old concept, but it applies to Twitter just the same – help others get what they want and they will help you get what you want. Sounds a lot like building relationships, to me. If your only Twitter efforts are self-promoting, then you’re not going to attract many trust-based relationships.
Use the Tools- I love using Tweetdeck. The search tools help me stay on top of my keywords and accelerate my efforts to connect with the right kinds of people. There are many other applications and tools for making your Twitter experience successful. Find what works best for you.
In conclusion, let’s consider the many advertising and marketing initiatives we have seen on Twitter. Some have gone very well, and others have left a bad taste in our mouths. Just like any other broadcasting medium (by the way, all of their revenue models are built around marketing and advertising), the ones who are building relationships of trust are the ones we listen to and the ones from whom we buy. If that is true, then we need to try and be just like them.
12/21/2009 | 8:50AM
With 2009 coming to a close, we look ahead to what we can expect and should plan for in 2010. Here is my list of the top ten trends founders, CEOs, and entrepreneurs of start-up, emerging, and medium-sized businesses should consider as they prepare for the new year.
1. The recession will not end, regardless what anyone says - There are just too many issues that still need resolution before this economy can rebound, like the write-down of ALL of the bad assets on the books of the financial institutions. The fact that they are still not lending much to existing or new customers should be a sign that they know they still have a lot to lose before they can begin to gain again. In addition, the new business models that are emerging in this recession are leaner and meaner than we have seen in a long time, meaning they aren’t going to help unemployment any time soon. The effects of this recession could last quite a while.
[Author's Note:I realize I will take some heat for this prediction, but please know that I am only bearish on a macro-economic level. There are and will continue to be many businesses that grow and thrive through this time, and I applaud them all for it! If more businesses were like them I would be much more optimistic about an economic recovery.]
2. Bootstrapping will be king!- Usually you will hear me say that cash is king. In 2010 the entrepreneurs that have learned to boot-strap will be king – because boot strapping is the best chance for cash generation. Many of their competitors have gone out of business or are in some sort of a death spiral. Those who made changes early and are continuing to adapt to the changing economic market are going to win. I hear lots of businesses take the mentality of: “If we can make it through the recession will be poised to do well.” That attitude is just not going to cut it. Survival cannot be the only goal – those that can figure out how to generate positive cash flow in the tough times are the ones that will win when things turn around.
3. Solving lots of customers’ needs will raise capital- If you are starting a business and your whole focus is on raising capital, you will not get any in 2010. If, on the other hand, your focus is on getting and satisfying customers with a great product or service, then you have a much better chance to get the money you need (if you even need it). Ben Peterson, a successful entrepreneur and angel investor, identified one of the major sources of this problem. He said that the focus in business schools and entrepreneurial education is on teaching how to raise money, not how to grow a successful company that is actually worthy of investment capital. Get to work, and the money will follow you if you can take care of lots of customers and your need for capital will really add value to your efforts to serve your target market.
4. Business Lending requirements will increase – It got a lot tougher to borrow money in 2009, and it will continue to become more difficult in terms of requirements and complexity. For example, a business just obtained a small $125,000 line of credit and the legal documents the bank sent to their customer were over 150-pages in length. Even though the mean credit score in the US is on the decline, banks have raised their requirements on business owner credit scores and they are mandating more collateral (as a secondary source of repayment) than before, especially if it is real estate.
5. The cloud will continue to gain a share of all things computer- We are seeing more and more companies abandon traditional software and convert their operations to the cloud. This is a great trend for entrepreneurs who can accomplish just as much as big businesses for a lot less expensive cloud-driven solutions. Here is just one example: 2 years ago almost every business used Outlook or some other computer-based email client for its employees. Today we are seeing some companies, especially those with entrepreneurs under the age of 40, switch to web-based and SaaS applications. Google Apps seems to be the most popular for now, but the point is clear - the practices of purchasing expensive software to load on each computer and servers to host all of the company’s data are becoming antiquated and cumbersome.
6. Social media overload will drive users to the best content sources and filters- Even status updates in LinkedIn are tough to keep up with anymore. The flow of information through social media tools has grown so dramatically that most feel like they are on overload and like it is impossible to keep up. While providers are trying to figure this out, we are all going to be driven to the sources of the best and most reliable content, especially if it allows us to filter it quickly and effectively.
7. Health insurance will continue towards high deductibles and consumer-driven care - I have long been an advocate for high deductible health insurance plans with HSAs or other medical savings accounts. Yet such plans represent such a stretch from traditional health insurance that adoption rates have been very low. It seems like employers and employees alike are warming up to this idea and the popularity of these plans will continue to increase.
8. Being big will become less advantageous to being small – Big will no longer necessarily be better. There are many reasons for this, but here are the main two – small and medium-sized companies are often more flexible and more hungry to satisfy their customers and big-company economies of scale are becoming less relevant. For example, with its use of remote, flexible, and contract workers, Jet Blue is able to do more for its customers than any of its larger rivals – and that is in a very capital-intensive business. Service businesses may find even greater advantages as compared to their larger competitors.
9. Focus on relationships will pay- Relationships have been and will always be the key to building a successful business – mainly because they help us establish trust. I’ve included this on my trend list because it seems like to some the practice of building trust is a lost and fallen art. Obtaining more followers on Twitter and increasing your pool of friends of FaceBook are only relevant if we build relationships in the process. We will see relationships and trust-building come back to the forefront of business as filtering tools allow us to connect with those who matter most and with whom we want to foster and strengthen our relationships.
10. Knowledge workers will take more contract and less full-time work - This recession is helping to accelerate our economy to more of a knowledge-based worker model. These knowledge workers are finding more benefits in contract and part-time work. Some appreciate the flexibility, while others feel their value-added to and sustainability in these roles are more secure and potentially more profitable. Our CFO services business is just one of many examples of this trend.
I would love to hear any thoughts, concerns, questions, modifications, additions, or deletions you have for this list and how 2010 will impact you and your business. All the best for a prosperous 2010!
09/29/2009 | 9:10PM
CFO WISE founder, Ken Kaufman, is to appear as a Guest on the SMB Radio Show & Podcast airing October 13 at 1:30pm EST
PLEASANT GROVE, Utah, Sept 30, 2009 – CFOwise founder, Ken Kaufman, will appear as a guest on the Small Biz Trends Radio Show and Podcast that will air on October 13, 2009 at 1:30pm EST. Ken will be intereviewed on the following topic: Unlocking the Cash and Profit Hidden in Your Financial Statements.
Ken Kaufman stated, ”Anita Campbell has turned Small Business Trends into one the foremost authorities on starting and running a business. It is an honor to be a guest on her weekly radio show.” In addition, Ken mentioned that listeners to the program will have an opportunity to visit the CFOwise website to receive a free industry report.
Staci Wood, the Operations Manager at Small Biz Trends described Ken with the following excerpt,”In addition to his role as Founder & CEO of CFOwise, a regional Chief Financial Officer (CFO) firm with over two centuries of senior-level executive experience, Ken Kaufman also currently serves as the part-time CFO for a dozen start-up, emerging, and medium-sized companies in many different industries. Ken will share the insights he has gained from helping entrepreneurs and small business owners use their monthly accurate and timely financial statements to drive cash flow and profitability to new levels.”
Click here to listen to the podcast
About CFOwise With over two centuries of senior-level executive experience, CFOwise is the premier provider of permanent part-time CFO services to start-up, emerging, and medium-sized companies in the United States. For more information, please visit: www.cfowise.com or contact Kim Waldron at 801-380-5615.
About Small Business Trends Small Business Trends is an award-winning comprehensive online publication for small business owners, entrepreneurs and the people who interact with them. They offer a variety of features to help you stay informed about the small business market.
09/2/2009 | 9:20AM
If you want to open up a can of worms, ask a group of internet marketers and CMO’s how to measure the ROI on social media investment and participation. There is and will continue to be a heated debate on this topic until we all realize one thing: Social Media is about branding, not advertising.
Traditional advertising defines a specific spend and generally has measurable results. A return on investment is easy to calculate. Building a brand requires a significant investment, but does not generate track-able results. The reason a person at the grocery store chooses Pepsi over Coke is a summation of a lifetime of branding messages (sometimes in overwhelming quantity). How do you measure that? It is very difficult, although there are many options for understanding the overall value of branding (referred to as goodwill for the accountant types).
We have the same problem with social media. Social media is about building a brand, with the cumulative efforts assisting to generate sales. But branding is less directly involved with the final transaction as traditional, measurable mediums. How much did the direct mail piece I receive influence my decision to call the home security company in comparison to the branding I have been exposed to for the last five years at sporting events, parades, etc? Hard to say, and even more difficult to quantify.
In its truest form, social media is a venue to add value to the the market in general in the form of free advice, expertise, networking, and communication. All of this leads to relationship building with a more targeted market that gravitates towards your content and brand. I am all for measuring ROI, but I also think there is often a lot more at play than a simple ROI calculation will capture.
Social media is here to stay (just watch this video), and businesses need to get involved. A great example of this is the professional services industry. The most effective methods for marketing in professional services have long been referrals and networking, but these survey results indicate that more of the networking efforts in the next 6-18 months will concentrate on social media (LinkedIn, FaceBook, etc.).
So, are you still itching to track the ROI of your social media? Consider a change of perspective from ROI to the overall value of your brand. Then you’ll be getting closer to overall value generation than transactionally-based (and often incorrect) attempts to attach an ROI to social media, or branding, activities.
Some may take issue with my business finance consultant background and wonder why I am not hard-nosed about tracking ROI on social media efforts. I believe it is my CFO career that actually gives me credibility to say that ROI on social media is not about ROI, but it is about building a brand. The brand of a firm should have legitimate and palatable value, and that is what I care about. Ultimately, the value of the brand becomes a long-term and often sustainable competitive advantage that commands premium pricing, better margins, and maximal cash flow!
03/11/2009 | 3:30AM
LinkedIn is the premier social media website to connect on a preofessional level with peers, co-workers, customers, suppliers, prospects, professionals, Part-Time CFO’s and more. A common issue I hear from those on it is that they don’t see the value of it. I usually figure they just aren’t using it very effectively, because I have had a fairly rewarding experience with the it.
In the spirit of understanding how to most effectively use LinkedIn, I have found several well-written articles on the subjects below. Please find links to those articles along with my brief commentary below. If you have any other suggestions, please let me know.
7 Ways to Have Character (and Show It) on LinkedIn – Good tips on how to be and active, not a passive, user.
30 Do’s and Don’ts for Using LinkedIn – Practical advice on managing your profile and using LinkedIn and a communication tool
Use LinkedIn Effectively – The beginning of this article gives some good basics, and then the end of the article lists 5 powerful ways to use LinkedIn, including researching your competition and getting information on prospects.
5 Ways to Use LinkedIn Groups Effectively – Good advice on the Groups functionality
4 Ways to Use LinkedIn to Build Your Business – Some repetition from the other articles, but the perpsective is very valuable.
03/4/2009 | 3:34AM
I have met some great CFOs on Twitter. Some are full-time with one company, and others are consulting or part-time CFOs for small and medium-sized businesses. Here is the list of who I have met so far. Please feel free to let me know who I have missed. Thanks.
@BradLJones – Partner with CFOwise, the premier CFO firm for start-up, emerging, and medium-sized businesses
@RickGallagher - Part-time CFO, Board member for several non-profits
@startupcfo - Helps fund, grow and sell tech startups. Currently CFO at Tungle (5th VC-backed company). Also, he has a great social network you should visit called Your Startup CFO
@virtualcfo - A CPA and entrepreneur who has always had one foot in tech.
@wongrichard – CFO advisor ethically driven to improving profitability through better decisions by designing KPI’s & by developing better business processes and financing.
@corpfincafe – CorpFin Advisors, LLC. Driven by increasing corporate performance w/ L/T sustainable initiatives. Focus areas include Manfctrng, Retail, & Apparel.
@LynnKehler - President and CEO of Westone Laboratories. Vistage CEO group member.
@Philanthropic – David Chamberlain Founder ∞ Exquisite Safaris Philanthropic Travel ∞
@CFOwise (Ken Kaufman) - Founder & CEO at CFOwise
@CFOCIO – I am the CFO/CIO of LaBreche; a brand communications firm. My Passions: Finance, Tech, Interactive and Social Media.
@JDavids – Internet Industry Veteran since 1995 as CEO, COO and CFO
@clintburdett – Pro bono CFO of a 501-C-3, the San Diego Lions Welfare Foundation with $5.5m in corpus. Strategy Formulation Consultant – Senior Executive Coach.
@johnmccarthy – Consultant providing restructuring and interim CFO/COO/CEO services, currently at Etsy, husband, papa, not necessarily in that order.
@sarunasr – financial officer at aviation co., M&A, windsurfer, karateka (goju), golf newbie, social media fan, born in Lithuania
@greggwitt – Performing financial consulting for small businesses and startups. Formerly titled “CFO”.
@jemoore – Forensic and Managerial Accountant
@CFOServices – Founder of CFO Services, which provides corporate finance and private equity services to a diverse client base, incl. outdoor industry and inv. banking
@Biznibber – Part Time CFO for Nibipedia and other startups.
@jbarbar – CFO
@RogueCFO – Maverick Startup Consultant & Rogue CFO
@Lanekirir – Wahoo Studios/NinjaBee Financial Exec
@jmcclunn - Enterprise 2.0 CFO at SelectMinds, previous success with tech company from napkin to NASDAQ. Board member of several tech start ups.
@YourOwnCFO – Connect Your Ideas to an Improved Bottom Line..Your own Part-time CFO at a Fraction of the Cost!
@msfackrell – Virtual CFO
@TomDrainville - Providing part-time CFO services to business owners and CEOs.
@BaltimoreCFO – All your CFO needs.
@OnlineCFO – Experienced Financial Exec available part time or on a project basis
@Twithusiast – CFO
@Paulnisbet – Avid flyfisherman, rookie golfer, love UM Grizzly and Steeler football, and my girlfriend too- not in that order! CFO at Vann’s, Inc.
@BenParamore – A forward–thinking, strategic financial leader with an operations perspective and strong relationship–building capabilities driving value creation.
@CFO_NOW - I am passionate about building affordable, world class finance and accounting functions for smaller companies.
@The Social CFO – Are you a social media active CFO or aspiring CFO? Follow to collaborate, learn and share the power of social media networks in finance, accounting and treasury
@BusinessEase – Accountant and business adviser specialising in helping owner operators to get an easier life!
@finstoryteller – I help organizations tell their story through numbers
@CFOAlexSink – Official Twitter Account for Florida CFO Alex Sink – Maintained by the Press Office.
@martykoenig - Former corporate business leader, now entrepreneur, CEO, CFO and CXO, business growth expert, technology guru, blogger, social media coach, and geek.
@mikehartCXO – C-Suite executive, Board Member, public/private, growth, biotech, tech, SEC/IPO experience, outdoor enthusiast, sports fan, basketball coach, Kauai fan
@SmallBizCPA – A CPA specializing in Virtual CFO, Accounting, Tax Planning & Accounting Services for Start-Ups and Small Businesses.
@rpototsky – CPA, CFO, Consultant
@FrankMullens - Marketing Innovations’ CFO / COO where I encourage the persistent evolution of corporate strategy to seize market opportunities and grow profits. What’s next?
@skenney1384 – CFO of Nuwell Companies (Medical Services)
@MikeCampbellCPA – Mike Campbell is a husband, father, CPA and CFO of a fast-growth small business. I love running, reading, and blogging..
@kenjikuramoto – Recovering CPA, Co-Founder of AcuityCFO, Wake Forest Grad, advocate of all things entrepreneurial
@NorwoodDavis – Husband, Dad, Harley Rider, Scout Leader & CFO at 12Stone
@HospitalityCFO – Libre Management CFO;concepts include Cuba Libre Restaurant & Rum Bar, 32 Degrees, Vino Noir, Max and Me Catering
@Amit_CFO – Irreverent Technology CFO of Firescope – revolutionary software provider of BSM, ITiL, and CMDB- enjoys building people who build great companies…
@Judwhidden – Part Time CFO/Controller working with small companies. MBA, Certified QuickBooks ProAdvisor.
Here are some folks that aren’t CFOs, but they are a big part of the CFO industry:
@thomsinger – business author/speaker and business development director at vcfo
@cfocoach – Personal Brand Strategist and Career Coach for CFOs who want to Repackage … Position …
Please leave me a comment of additional CFOs on Twitter we should add to the list. We are continually adding names as we find more.
02/20/2009 | 3:47AM
As I approach the one year anniversary of my first CFO blog post, here are a few of the things I have learned along the way.
FIRST LESSON: You have to start somewhere. I had no idea what I was doing, but I knew I had something to say. So I just started blogging. It wasn’t easy, and I often felt inadequate, but I did it anyway. Just by going through the process of preparing blogs I feel like my thoughts are more organized and I have been able to capture some of the solutions we deliver our clients in bite-sized “gems.”
SECOND LESSON: Just because you write a blog does not mean anyone will read it. For some reason I thought that people would start finding my blog and be so overwhelming enlightened by its content that they would come back every day. Not only has that not happened, but I have also realized that there are very few places on the web that I visit regularly. I only go back regularly for excellent content. No pressure, but I now, very humbly, admit that I cannot produce that kind of content every day. But I know my content helps some and adds value to many of my professional and personal relationships, so I keep doing it. I hope I’m getting better.
THIRD LESSON:It is OK to market your blog in appropriate mediums. I let people know about my blog posts through Twitter and Facebook, although that is not my only activity on those platforms. I spend most of my time connecting with people and building relationships – which creates an environment that is very approving of mild self-promotion. I have also registered my blog with other catalogs and social networking sites like Technorati and BlogCatalog. And I am starting to see some regular traffic.
FOURTH LESSON:Comments are good, not bad. You should allow people to comment on your blog posts and be open to their input and suggestions. It may be scary to put yourself out on the internet in the form of a blog post so anyone can comment on your writings. For the most part commenters are kind and they usually have some good insight to add to your thoughts. Be humble, and you will learn a lot from their comments.
This post was inspired by the following video of Seth Godin and Tom Peters. The topic is blogging. It is short and powerful – I recommend you watch it: WHY SHOULD I BLOG?
01/17/2009 | 2:32PM
When used correctly, Twitter can help entrepreneurs. Here is a great example: TWITTER HELPS 1-YEAR OLD COMPANY FIND CUSTOMERS.
Twitter, as with most social media tools, can either be a tremendous waste of time and resources, or it can be an effective, value-added activity for your business. Twitter is not THE answer. It is part of a solution called social media, and social media can be a powerful tool for helping entrepreneurs grow their businesses.
I have learned during my brief experience on Twitter (created an account under the name CFOwise – you can follow me at http://twitter.com/cfowise - the day after Christmas) some of the ways Twitter can add value. For example, I try to write in this blog everyday, and as soon as I post this blog it will show up on Twitter. All of my updates on Twitter flow right into FaceBook. With over 300 friends in FaceBook and over 1,000 followers on Twitter, I am allowed to exponentially increase my blog’s exposure. For our overall marketing strategy, this will have far-reaching effects for our company. And we have barely scratched the surface of this powerful tool.
With all of the adding of followers and following that happens on Twitter, not everything is relevant or value-added to the objectives of the entrepreneur. Many have described Twitter like a virtual social event where we briefly connect with lots of different people with varying interests. Ultimately we gravitate towards those who interest us, and this is the logical conclusion for how Twitter works. If you are interesting and create content to which people gravitate, then this tool will add value to your business. This value is free and can offer financial help for small businesses through fre marketing.
01/3/2009 | 6:33PM
Everyone is declaring gloom and doom in 2009. But social networking is exploding.
LinkedIn is planning for significant growth in 2009, as are all of the other major social networking companies. In this article from the USA TODAY, they profile LinkedIn along with its departing and new CEO. They have made a profitable LinkedIn very financial successful and have a sound business model in place.
The most interesting elelment of this, I think, is that it appears that this recession will create more opportunities for social networking sites like LinkedIn. More people have more time on their hands and are trying to use the social networking medium to create their next opportunities, whether that be full-time employment, CFO employment, starting a business, or just networking.
It seems that the timing is right and the opportunities are ripe for this industry. Since LinkedIn seems to have the most powerful business model, I think they are positioned to be the finanical leader of all things that are social networking. I would predict that we will probably see several other start-ups in the professional side of of social networking, but it will be hard to catch the leader. Entrepreneurs, business owners, and CEOs need to look seriously at how they can implement social networking into their overall marketing and operational strategies. Those who don’t could be left behind.
Here is my LinkedIn Profile: Ken’s LinkedIn Profile
Here is my Facebook Profile: Ken’s Facebook Profile
03/11/2008 | 2:33AM
At CFOwise, we have decided to start a blog for two reasons: We hope the content we write will, in some way, add value to our clients and to start-up, emerging, and medium-sized businesses around the world, and Experts in Internet marketing have told us that by publishing this content on the web, the opportunity for our influence as CFO consultants in the capacity of part-time CFO jobs in our market space to grow will be enhanced. Hopefully it is fitting that we try to define the value that blogging can bring in our first blog.
So, here it goes (please note that our comments on blogging refer only to professional content used for commercial purposes): Blogging helps position you and your firm as an expert in your field of expertise. It is like a newsletter, but is typically more informal, allows others to make comments, and is often more frequent than a monthly newsletter. For those who are interested, it could give them reason to come back and visit you often. In essence, you can establish a faithful and even an extremely loyal following who are hungry for your content.
I’ll share a personal example: A good friend of mine has fought a horrible disease for the last several years of his life. He grew weary of continually repeating the updates on his condition to the dozens of people who cared about him and his family. There were those that cared about him that purposefully kept themselves in the dark on his situation just to avoid him expending his energy re-telling his story dozens of times. He began keeping a blog in which he gave updates. Interestingly, his absolutely hilarious sense of humor came through perfectly on his blog, and everyone was able to remain a part of his life without overwhelming him. He still updates his blog and my wife and I visit it often – we have become very loyal followers. In fact, if he forgets to update the blog for a week or two, we are disappointed and become anxious to hear how he is doing. That example has many applications to business. With a small effort, a business can reach a large audience through blogging. If you need to reach people on the web, you can optimize your blog based on your Search Engine Optimization (SEO) strategy. I have been told that the more content you have, the more likely you are to be picked up in keyword searches on the major search engines. If you want to accomplish this, then I definitely recommend you meet with an expert in this field and receive their assistance.
How do you determine the value that blogging can bring to your firm? Let’s suppose someone in your organization spends 2 hours per week on your blog, or about 100 hours per year, representing about 5% of a person’s time with a regular 40 hour work week. Assuming the person writing your blog receives annual compensation, including payroll burden and benefits, of $75,000, you are committing almost $4,000 towards this activity. Using the perception that the compensation is a sunk cost with no opportunity cost, we can conclude that you should make the commitment to blog so long as it will add at least $13,000 ($4,000 desired gross profit divided by assumed 30% gross margin) in new business (either from new or existing customers). Starting the blog is easy. Committing to and delivering the content regularly is usually the hardest part. If you make the commitment, blogging will certainly increase the value of your brand, and you will probably be able to justify the expense by the business it stimulates.
