Kidzforce and My Paper Route


This weekend, we introduced publicly, Kidzforce, a new opportunity for young and ambitious kids to learn the skills necessary to help them become future business leaders, and make a few bucks along the way.  I personally am excited about this program because aside from mowing neighbors' lawns or babysitting, there are very few programs these days that provide real life job experience.  Of course, we still have programs such as  the Boy Scouts and Girl Scouts, which provide valuable life lessons to prepare young children for the real world, but nothing that provides the depth of field for entrepreneurship.  I had such an opportunity as a kid, and looking back, it taught me the single most important lesson I've learned in my professional career.
My first entrepreneurial experience was delivering newspapers while in middle school.  Prior to this, I was nothing more than a naïve and insecure 12 year old who loved my Commodore 64 and playing D&D (Dungeons and Dragons, for you less geeky-types).  My good friend and D&D cohort lived a few blocks away and had a paper route of his own.  One summer, he offered me a job as his replacement while he was away on vacation.  Riding bikes in the blistering hot Arizona summer did not sound at all appealing, but when he told me about all the money he earned (for a 12 year old, ANY additional change for the arcade was appealing), my interest was immediately peaked and I accepted.  I “invested” in an old bike from a garage sale that was ugly, mustard-color and for girls, but had huge baskets on the back and front and was cheap.  As a kid that regularly played D&D, function over form was my only criteria.

The first few weeks were great.  I had to arrive at the paper drop location at a certain time, unwrap bundles of papers and rubber band each individually.  I then stuffed my bike as full as possible and peddled around my neighborhood cheerily tossing papers onto driveways.  Pretty simple.  And, the cash was good (for that period), and relieving my reliance on my allowance for arcade money was liberating!  When my buddy returned, I had to relinquish the duties, but another route a few blocks away became available shortly after, so I immediately secured it.

As my delivery experience continued, I began learning valuable lessons which, although I didn't realize it at the time, I would take with me and use even today!

  • I learned about responsibility, as being late to the drop location assured I received the dirtiest and most damaged papers.  
  • I learned “accounts receivable management”, because if I didn’t stay on top of each home to pay weekly, I didn’t get paid.  I often had to be relentless, and I still remember the first home to which I stopped delivery due to non-payment.
  • I learned how to sell and be persuasive (“imagine the time you save by having the paper delivered right to your doorstep!”), because the more houses I had, the more money I made.  
  • I learned how to market my services better by adding a “porch” service fee (translation: you tip me big, I drop it off at your doorstep) for anyone who wanted a paper dropped on the porch instead of on the driveway.  As well, I often punished non-tippers with a paper in the bushes … I had incredible aim, especially on Tuesdays.   
  • I learned how to expand my business, by negotiating available routes around mine, eventually securing the route that included my own home.  At one point, I had four routes, which covered about 20 neighborhood blocks.  Because of the reach of my patrol, I was also able to move the neighborhood drop location directly to my driveway!
  • As I expanded, I quickly learned how to subcontract and often paid my little brother from time to time to deliver Wednesdays papers (coupon and ad day, which made the papers too large for my bike) to the homes on my block.  I also negotiated with a 16 year old neighbor named Blake, who had a route near mine and drove a suburban.  He would drive me around on Sunday mornings after delivering his newspapers.  
  • It taught me money management.  The better I managed my bills and income, the more money I had.
  • Lastly, it taught me responsibility.  I know I've mentioned this before, but it's the single most important lesson I take from my paper route days.  Failure to deliver a clean, dry and complete newspaper was never an option, and I had to work hard to keep my very sought after job.
All in all, it was a wonderful experience and, looking back, taught me so many lessons I still use today in business.  Today, youth have very few of these opportunities to experience and enjoy the benefits of entrepreneurship.  Of course, we all recognize the new and growing threats to younger generations, but with the right oversight and guidance, young boys and girls should have the opportunity to learn about real-life business and commerce at an early age.  Paper routes, as I experienced them, may no longer be a reality, but I look forward to mentoring ambitious future business leaders of America through the Flipoutz KidzForce Program.  Stay tuned, as one of our Kidzforce stars may eventually become the next Fortune 500 star!

Tweeter Than Wine

I am a supporter and advocate of technology, especially when it makes my life simple, but I am also typically a late adopter.  I still use my iPhone 3G, which replaced a Motorola Razor I used for a number of years.  I typically hold onto Mac computer until the hard drive falls out ... then I refurbish it.  So, it is no surprise that it took me some time to warm up to twitter.

At first, I was somewhat turned off by the idea of a service that seemed to be focused on providing users updates on celebrity hair appointments and lunch dates, or Shakespeare in 144 characters.  Really, who has that much time and, for that matter, inclination?  I certainly didn't, and as I stocked my Facebook account up with friends from overseas and high school pals, I was more interested in catching up on their lives and families.

Then, this past year, I became involved with Flipoutz, a company who had an appearance on ABC's Shark Tank in April.  I was told to tune into the "shark's" twitter feeds and start "twittering" to show my support.  So, I created my twitter account (@petergasca) and settled in on my couch for the show, cautiously optimistic.  It turned out to be quite fun, listening to (or reading, as is the case) the thoughts and feedback, often scorching and humorous, of the show's celebrity investors.  I even had a brief one-to-one conversation ... or twittersation? ... with one of them.  It was so exciting ... I digress.

While fun and all, I still didn't see any application aside from consuming what little spare time I had to be enthralled with the lives of people I had no real inclination to meet.  As I became more familiar with twitter, however, I soon discovered its many uses.  It was great to follow the feeds of my favorite and influential public figures, as well as respected industry leaders.  I found the "List" function, and now follow all of the latest headlines from the numerous media sources I check daily.  I get to link my blog with my website with my twitter with my linkedin account ... and so on.  It's quite fascinating.

Then came the business applications.  We discovered how useful twitter could be with sharing news about our companies.  More important, I have also discovered how essential it is to maintain a followed twitter account.  Tools like Radian6, Meltwater Press and Vocus are making the mining of a seemingly infinite amount of online information easy and applicable.  Even personal "dashboards", such as Hootsuite make it easy for me to see all of my personal activity in on spot.  Regardless of how you slice it, twitter is here to stay, and while it has done little to curve my A.D.D. or my inclination to procrastination, it has made getting, managing and applying information much easier.

Being a late adopter has proven useful in the past.  I was late in adopting Seinfeld in the 90's and Family Guy this decade, but in each case, it wasn't difficult to catch up.  With technology, however, late adoption could mean missing out entirely on a trend.  At least now, with my twitter account, I can find out what those trends are the minute they happen!

Thank you to Kim Vandenbroucke of Brainy Chick Inc, whose article in Global Toy News was influential in helping me come to grips with my twitter addiction ... or twitterdiction?  It's nice to know that I am not the only one out there ... as if that were ever really true.

What I Learned From Steve Jobs


This week, we lost one of the true visionaries of our time, Steve Jobs, the founder of Apple.  Steve's story is impressive when you consider that he set out on his quest to create and develop the most loved technology company in his early 20's, and succeeded beyond anybody's wildest expectations.  He had a dream.  He had a vision.  And he had the wherewithal, drive, and persistence to make it happen.
I learned many things from Steve.  I learned to have vision, not just five or ten years into the future, but a lifelong vision for the direction I see my life.  And, not just in business, but personally as well.  What type of person do I want to be?  How will I live my life?  How do I want to be remembered?

In business, Steve was clearly one of the most respected product and marketing people in generations.  I still hold many of his business philosophies close.  His company is a model of innovation and efficiency and drive.  The people of Apple are not only great business men and women, they are luminaries, artists, poets.  Steve was never afraid to surround himself with people who filled the gaps.  His style, his philosophies, and his goals were always lofty, but it attracted and excited people.
Of course, there are those who say that Steve was a difficult person to get along with, and that he was a poor manager of people.  Malcom Gladwell, in his book Outliers: The Story of Success, makes the argument that Steve was the product of really good timing, from his birth place (California) to his birth year (entering the dawn of the computing era).  Mr. Gladwell does contend, however, as I would, that Steve was also the product of hard work, dedication and unwavering ambition.  Regardless of how you size up his methods or his timing, his body of work is remarkable.

Toward the end of his life, when Steve's mortality was tested, he stated elegantly in his Stanford Commencement Speech to the 2005 graduating class, "Don't live somebody else's life".  He certainly did not, and we should not either.  I strive to live my own life to the fullest of my ability, regardless of timing or surroundings or even luck.  This is what I learned from Steve Jobs.

Thank you Steve, for all you gave us.  Rest in peace.

TRU or False?

Is Toys-R-Us looking for a new model?  I was reading a blog post recently from one of the most respected toy insiders in the industry, Richard Gottlieb (Toys R Us and Neil Friedman: What it really meant!), and it got me thinking ... 

Allow me to summarize: 
Niel Friedman accepted the position of US Division President for Toys R Us (TRU) in April 2011.  Previously, Mr. Friedman had been President of Mattel brands, a product company, and considered by some as the top product person in the industry.  So why hire a product guy as the president of a major retail chain?  Richard postulated that the move was to utilize Mr. Friedman's expertise in the manufacturing, which could be leveraged with TRU's new Shenzen sourcing office.  Could this mean a move to become a full-fledged manufacturer? This month, that forethought was all but confirmed.  Jerry Storch, TRU Chairman and CEO commented publicly that Mr. Friedman was assuming not only the position of president, but also "head of product development".  His official bio also includes descriptions such as "merchandising, global sourcing, merchandise planning and allocation".
Also, reports have confirmed that TRU is expanding its exclusive toy offerings "dramatically", as well as increasing the number of store-branded items.  A 44-page direct mailing is planned this week that will promote over 350 new products exclusively through TRU or by TRU.
This is significant.  It can only mean that TRU is indeed turning its sights to become a full-fledged manufacturer and retailer.  This is how TRU plans on competing, or surviving, as a brick-and-mortar retail store ... by offering mostly (and arguably, ONLY) exclusive and private label products.  In other words, products you can only buy at TRU!  This is exciting for TRU ... but not so much for small toy companies like our own.  We have already had to struggle to meet the demanding guidelines and milestones for TRU stores, and this strategy only suggests that it is going to get even tougher to find space on their shelves for our products. 

It is a good move for TRU ... for now.  Exclusive products provide a competitive advantage over competitors (namely, Walmart) and positions their online offerings to avoid price shoppers (like myself).  Ultimately, however, it will require a tremendous amount of overhead to keep up.   Product development is tough enough, but trying to control the entire value chain from sourcing to retail is tedious to say the least.  Anyone who has dealt with TRU knows it is already a massive corporation, far bigger than Walmart with a quarter of the stores.  As well, this strategy will squeeze out the small inventors, who may prefer to NOT brand a product with a TRU private label just to get it on their shelves, reducing the number of innovative and hot products available.

And it doesn't solve the long-term problem.  The internet is going to make toys, as well as many other non-essential items, a commodity.  Online shopping will continue to eat aggressively away at the brick-and-mortar revenues, eventually proving them to be obsolete.  And, while TRU will have a great, exclusive catalog of products stocking their shelves, they will have a void of customers who prefer to just listen to a friend's recommendation, buy it online and save the time.  Maybe Mr. Friedman sees the writing on the wall and is planning a complete transition in the future from retailer to product company??  Only time will tell.

R.I.P. Strip Malls

An interesting thing happened as I drove to the store recently.  Shopping centers are changing.  I know, a revelation, right?  But then I read an interesting article, Walmart-Your Friendly Neighborhood Grocer, and it got me thinking.
Excerpts:
When you think Walmart, you generally think big and you don’t generally think groceries, but its Neighborhood Market stores may change that.
"Chicago opened its third Walmart this week, but this is a Neighborhood Market store, according to the Chicago Sun-Times. At about 27,000 square feet, the downtown store is a fraction of a regular-sized Walmart, which can be as large as 150,000 square feet.  And while groceries are typically 1/3 of the product sold at a Walmart, it takes up ¾ of the Market.
Walmart has been opening Neighborhood Markets since 1998 and now has 155 nationwide, but they are about to go into a boom time, with the company planning to have 300 of them by 2013.  Walmart also runs the even smaller Walmart Express stores nationwide, which are usually about 10,000 square feet.”
It is an interesting thing to consider ... strip malls and shopping centers will cease to exist as we know them within the next few years, possibly altogether. There you go ... it's been said. The elephant is out of the room. 

It's not a revolutionary thought to say that the internet, with it's wealth of information, infinite customer reviews, and countless avenues for price comparing, has completely reshaped the way we shop. The debate about how a brick-and-mortar store competes, however, is changing. The debate should now be how a brick-and-mortar store survives. I personally believe they won't, and while a scary thought, it should be at the heart of business strategies for future entrepreneurs. 

Walmart sees the writing on the all. The move to create smaller "Neighborhood Markets" for the necessities, groceries and the like, demonstrates that they are moving away from the superstore model featuring items such as household furnishings, clothes, toys, etc, all things you can purchase easily online. In a similar article (Walmart-The Next Tech Giant?), Walmart has assembled a team, dubbed @WalmartLabs, focused solely on their website presence, setting Amazon in their crosshairs, further moving away from the superstore model.

Excerpts:
"Amazon.com has been deemed the next disturber of the technology space. But as the e-commerce leader launches its own tablet device and beefs up its digital content, another retail behemoth is quietly making moves to become the next tech giant.
Tucked in the heart of Silicon Valley, Wal-Mart has assembled a team of 70 developers, computer engineers and researchers — dubbed @WalmartLabs — in an aggressive attempt to position itself at the forefront of social and mobile commerce. 
Born from the $300 million acquisition of Kosmix in May, @WalmartLabs is being led by two Amazon veterans, Venky Harinarayan and Anand Rajaranan.  The duo's comparison shopping site, Junglee, which was acquired by Amazon in 1998 for $250 million, has been credited for the success of Amazon's third-party marketplace. Harinarayan and Rajaranan are also the brains behind, a crowdsourcing Internet marketplace."
It's a winning strategy, and as someone who recently pieced together an entire baby room from Walmart.com (because every item we found in local baby stores was 20% less expensive online), I can attest to the huge price advantage they already hold.

I understand there will be nay-sayers who just can't let go of the concept of a physical store. Indeed, not all stores will disappear, but just look at strip malls and shopping centers today ... filled with stores that offer food, clothes, dry cleaning, veterinary care, and services that require a visit. I would even argue that clothing is going to go online ... following the Zappos model of success someday.

The next generation of shoppers are connected and mobile, and they don't necessarily put the same emphasis on privacy as us old folk do. They are incredibly tech savvy and more mature than previous generations.  They do and will continue to value 2 hours of their time over the experience of shopping at a store, possible several, to find an item they can Google from their smart phone. That's just they way it's going to be.  Shopping centers are going away ... now, it's been said twice.