Interview with Mike Ferrari, Co-Founder of SmartyPig

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While I was doing some research for my article “Frugality for College Students - 13 Ways To Save Money While In College” I asked my Twitter friends for some suggestions. One of the replies that popped up was from Mike Ferrari at SmartyPig.com suggesting his website as a way for students to save towards a goal of theirs whether it be for books, a spring break trip, a new camera, a trip, or whatever. So after taking a browse through the SmartyPig website, I decided to give it a shot and test out the system. Because the sign up process was so easy and the site is easy to navigate in it self, I thought it was a great idea. I got in contact with Mike again via Twitter to see if he would be interested in doing an interview for Dorm Room Biz. With that being said, the following is an interview we exchanged via multiple emails. I hope you enjoy!

Start off by telling us a little bit about your background - where you went to school, what you studied, etc.
I’m from Ohio, originally. Bowling Green and Dayton. I moved to Des Moines when I was 15. I went to DePauw University, in Greencastle, Indiana. Graduated in 1993 in Psychology and Business Administration. Went into advertising right after college.

What sparked your initial interest in entrepreneurship?
Always had a thing for coming up with business ideas. You know the routine. You come up with this great idea and ultimately end up talking yourself out of it. I became quite good at it. Drove my wife mad. But one day, almost four years ago, I had this idea that I found really hard to blow holes threw. That idea was and became what is known as SmartyPig.

Almost four years ago, my wife and I had our first child, Charlie. I remember thinking how important it was to start a college savings program for him. I remember starting his 529 plan a few weeks after he was born. We started putting a hundred dollars away each month. And after 5 or 6 months, I remember logging into the 529 site and seeing his savings build. And more importantly, remembering that feeling of “responsible saving”. It was like I hadn’t even missed the money. Automatically taken out of my checking each month. We just became accustomed to not having the money. Soon after I was in Phoenix playing golf with some old college buddies. I had just dropped them off at the airport and I went back to my hotel to kill a few hours before my flight back to Des Moines. I grabbed my computer looking for a site that would help me save up for other things in my life. I wanted to save up for a trip for my wife and I (some day) to go to Italy. A lofty goal I knew would take years to save for. And I also knew I wanted a new road bike next year. Was training for Ride The Rockies with some friends… So I just assumed there was a site out their that was all about “goal savings”. When I didn’t see it, I guess you could say I had my “light bulb” moment. Started drafting a business plan right then and there. It was all I thought about. Trying to shoot holes in the idea from every direction. I spent the next few months flushing out the idea and showed it to a friend of mine, Jon Gaskell. It wasn’t long before the two of us quit our jobs and became the co-founders of SmartyPig.

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Want to start a business? Consider opening a franchise!

In the current economic situation, many people are getting fired, loosing their jobs, and looking towards the opportunity to start their own business. But some of those people do not have any clue what kind of business they want to start, or even how to start one. Enter the opportunity to open a franchise. Franchise opportunities are all around you in your life, all you have to do is look around.

There are tons of different franchise available for you and your needs/interests. Whether it is a low cost franchise opportunityor something extreme and expensive. Every year Entrepreneur Magazine publishes their list of the Top 500 Franchises; this is a great place to look if you are interested in the opportunities out there and also to use as a quick guide about different businesses because it will tell you the market they are in, the start up costs, and more.

Here are the top 10 franchises from Entrepreneur Magazines list:

1. 7-Eleven
2. Subway
3. Dunkin’ Donuts
4. Pizza Hit
5. McDonald’s
6. Sonic Drive In
7. KFC Corp.
8. InterContinential Hotels Group
9. Domino’s Pizza
10. Re/Max

About.com also has some great information on franchises and a list of some of the most popular ones out there. There is another website, which hosts a list of the top 500 franchises and that can be found at the Franchise Buyers Network.

I am sure I do not need to explain the huge list of benefits of starting a franchise and the extra level that you can reach by doing so versus starting from scratch, but here are a few just in case.

1. Proven Business - Although it is still risky starting a franchise and launching a business, the risk is lowered because the the model has been proven successful previously. If it hadn’t, you wouldn’t be able to franchise it right? The corporation should be well aware of how to do business in the industry and market that you will be operating and should be able to help you out a lot when getting started.
2. Established Customer Base - Even if you are launching a franchise in a new territory, just having the brand name of your business known by people all around will be helpful in attracting new customers to your location. Perhaps they go to your franchise in another area whenever they visit or always wanted to see your franchise open in your location, now it is time to take advantage of those people! The brand awareness will provide trust, quality, and security to the customer.
3. Marketing - You as a smaller franchise operation will obviously benefit from any marketing efforts that the larger corporation puts out and does. If they run a marketing campaign for a new hamburger or sandwich, you better be sure to have it on your menu because customers will be wanting it. The franchisor can also help you put together your more local marketing plan and provide helpful guidance.
4. Exclusive Territory - Depending on the business you are going to operate, you may be able to have exclusive territory rights to an area which will mean you won’t have competition from within the franchise by another franchisee moving in down the street. This is harder to reach with restaurants (or the territory may be much smaller) but service businesses such as computer repairs or other home repair companies usually offer a good size territory.

Have you thought about opening a franchise? I know I had before. A few of the ones that I have looked at and investigated include: Cold Stone Cremery, Rita’s Water Ice, Five Guys, and Subway.

ProfessionalGFX Website Development Business Updates

Wrapping up projects seems to be the theme with my website design clients lately. I have been very close to finishing up two project this week and then there is an “oh one more thing” email…yet it is never just one more thing. So, knowing when to say “OK, enough is enough. No more revisions can be done at this point” is about where I am at. This is a hard spot to determine what is too much or too little but you need to determine that point, otherwise your clients will walk all over you.

So, right now, I am working on things for two clients. I am looking to wrap them up in the next week to two weeks and get paid. If I can do this, I will be happy! That will also allow for me to start slowly searching for new clients to work with and also try to get referrals from my current clients.

With that all being said, I have been looking up information on outsourcing design work to assistants in India, Canada, and other countries to free up my time with future clients. I have also been recommended the main different services out there that will convert your PSD files to valid code such as HTML, CSS, etc. This may be a good way to go too! I have also been talking with other bloggers and web developers out there such as Ellis Benus who has started using similar services and has had good results.

Besides, this, there is not a whole lot going on at this side of things. I just have not had as much time to focus on this venture as I would like because I know it is the one that can generate the most income for me in the least amount of time. My goal is reach $10,000 worth of income by the new year through web design related tasks (including designing, updating, hosting, etc). To reach this goal would prove the viability of the venture and also the opportunity to get out of the rat race and be on my own.

Technology based student business ideas for young entrepreneurs

Here at Dorm Room Biz, I post alot about different business ideas that students could start to make money while in college. Many of the ideas are offline business focused on service or product types of niches. However, as a student entrepreneur, there are also a HUGE amount of businesses that you could start online and based on the ever evolving technologies of today. Today, I bring you a list with some of these businesses. I know there are plent more that I am not thinking of, so please leave some comments if you have any other ideas.

Technology Based Student Business Ideas for Young Entrepreneurs

1. Blogging
2. Website Development and Design
3. Graphic Design
4. Desktop Publishing
5. Niche Content websites
6. Freelancer Article Writer for websites
7. Website copy writer
8. Affiliate Marketing
9. Search Engine Optimization
10. Pay Per Click Marketing
11. eCommerce websites
12. Product review website
13. Forums/message boards
14. Online tutoring

I know I am missing out on a bunch of ideas, so if you have some, leave some comments and I will expand the list to include them!

Dorm Room Biz Podcast #2: Discussion about deciding how and when to expand your business feature Mike Michalowicz

It has been a week or so coming, but the second Dorm Room Biz podcast has arrived! I am sorry it took me so long to get it together! Today’s podcast is a great discussion with entrepreneur Mike Michalowicz of Obsidian Launch. We discuss the topic of deciding how and when to expand your business.

We mostly talk in terms relating to my eBay ventures, however, the information that we talk about and the tips from Mike can definitely apply to any business area or industry and no matter if your business is online or offline. We both hope that you guys will enjoy it and spark up some conversation.

If you have any questions, comments, or anything to say about the podcast (good, bad, whatever) PLEASE PLEASE PLEASE leave some comments! I’d love to hear them and look forward to being able to respond back to them!

*****Download the podcast here.*****

6 Tips for Effective Freelancing

Freelance writing can be a great to make some extra cash from your dorm room and you don’t have to be an English major. If you can string together some sentences and have a distinctive style then you can hock your wares in the blogosphere and make some cash. There are a few things I wish I knew before I started freelance writing but now that I’ve been doing it for a while I’m hear to bestow my tips upon you. Without further ado, here are six ways you can improve your freelancing skills:

1. Be ready to succeed. Don’t take on a freelance writing job without the confidence that you’re going to be a success. You’ve taken this plunge with the design of coming up with some much needed, extra cash. You’ll hear a lot of jokes from your friends and roommates, but try to block these out and stay committed because this is now your job.
2. Documentation is crucial. Make sure that your client signs a contract for the job that is expected to be filled. You’ll draft your ideas for a given assignment and run it by the client before you commit a ton of time on the project. This is important so you can make sure that the two of you are on the same page.
3. Suggest topics. The easiest way to make money is from repeat customers. The best thing you can do is suggest new writing topics to the clients that have showed interest in your past writing. They’ll already respect your talents and, in turn, you’ll have instant credibility. This will allow you to tap your creative juices.
4. This is a business. Never forget that this is a legitimate business and not just a hobby. Create a business plan and stick to it. This will make you feel more professional and will translate into your writing. This can only make you a more marketable freelancer.
5. Trust your instincts. If you feel like your client hasn’t expressed clearly what he or she is expecting from a project then you have to be proactive and clarify any nebulous information. Your client will ultimately appreciate your forthrightness as you’ll probably be on target with your concerns.
6. Receive half your payment up front. It’s important that you collect half your fee up front. This will show your client you mean business and once you’ve followed through on your end of the bargain, the client will complete the expected payment.

This is a guest article contributed by Heather Johnson, a freelance writer as well as a regular commentator on the topic of credit card review. Heather invites your questions, comments and freelancing job inquiries at heatherjohnson2323 at gmail dot com.

Are you Revoluminary?

When I came across Dorm Room Biz, I was encouraged to find other students trying to start businesses from their dorm rooms. I thought that by sharing my story on this blog, we could get a good conversation going and help folks make some money…

The Inspiration

On a dollar per hour basis, tutoring is about as lucrative a job as any for most college students. Simply look at tutoring gigs on Craigslist about a month before SATs, and you’ll see what I mean. Neurotically ambitious parents will pay through the roof to get their children into a good school or to get good grades. Play an instrument? Interviewed for competitive jobs? Speak a foreign language? People will pay you for music lessons, mock interviews or even for talking to someone in another language! So why isn’t everyone doing it?

That’s exactly what my friend Pete and I were thinking about a year ago. Landing a tutoring gig involved persistent advertising on classifieds boards and guerilla-esque networking to find friend-of-a-friend students. If I was lucky enough to get responses, I’d be asked for references (which I don’t have), asked to work odd hours (that conflict with school) and commute to the students’ homes (I don’t have a car). Somewhat of an archaic process, isn’t it?

Fast-forward to today, and check out the solution we’ve come up with on www.Revoluminary.com. We created a site that allows students to essentially start their own tutoring businesses without leaving their dorm rooms. Here’s how it works.

Getting Started

Go to Revoluminary, create a profile and list a class. It can be anything: math, language, mock interviews, traveling tips to your home city… anything goes!

Advertise yourself

Make sure you list your credentials and set an attractive hourly price. Send invitations using our “Send to a Friend” button. Put together a YouTube commercial and embed it on the site (see mine for an embarrassing example). Add our widget on your Facebook page so your friends can see which classes you’re teaching. The more your do to get the word out, the more students you’ll get.

Build a Reputation

Make sure your tutoring sessions are high-quality and memorable. Test your webcam and microphone ahead of time. Use the shared whiteboard, video-feed and instant message tools wisely and your students will be impressed. To enhance your class, create a relevant file (slide presentation, spreadsheet, etc..) and upload it into your class ahead of time. Finally, encourage your students to provide feedback after the class. The higher your ratings, the more future students you’ll get!

Thanks a lot, Chris, for letting me guest-post. I look forward to hearing everyone’s feedback and to seeing you all on Revoluminary!

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The Very First Dorm Room Biz Podcast! It is finally here!

This has been a long time coming that is for sure! I mentioned that I wanted to start doing a podcast a long time ago, but now it has finally come true. I just interviewed Paul Scheiter through Skype about his company, Hedgehog Leatherworks, as well as about student entrepreneurship and more.

Please take a listen to the podcast and let me know what you think! I look forward to putting more of these together and hopefully I will be releasing the next one next week or so. I am looking for any feedback that you may be able to provide on the podcast – about the content or the way it is put together (quality of the recording, ways to improve it, etc). So PLEASE leave some comments!

Here are a couple notes to go along with the podcast.

• Total run time: Just over 28 minutes
• Paul’s company: Hedgehog Leatherworks
• I make mention of my website TheGearHouse where this podcast is also going to be posted; the website is at http://www.thegearhouse.com.
• For the interview, we chatted through Skype (http://www.skype.com)
• To record the interview, I used Call Burner (http://www.callburner.com)
• For editing the recording and putting the podcast together, I used Audacity (http://www.audacity.com)

Download the Podcast Here.

Did some yard sale shopping for eBay Last Weekend

Last weekend I set out early on Saturday morning to hit a couple yard sales in the area and see if I couldn’t find some good buys to be put up on eBay or Amazon. Well, I didn’t have much luck. I only picked up a few books, a game, and a few beanie babies. So, I am hoping the few items that I did get will at least bring me in some money to put more gas in my Jeep.

When I go to yard sales or thrift stores to search for eBay or Amazon items, I usually focus more on books and DVDs. My reasoning for this is because I know I can sell them and I know that if they are not “worth it as a single item” they could be sold in a lot of similar items (a lot of dvds or a lot of books on the same topic).

But I am curious if you guys ever head out to the yard sales and see what you may be able to find? Withing planning for a wedding and also moving in with my Fiance soon, I have been thinking about them more lately as a great way to find deals on things we will need like furniture.

Anyway, just a quick post today about yard sales. Our community is having one this coming weekend and I am going to set up to try to unload some left of products from Valentine’s Day as well as some other stuff for my parents!

Met with an accountant yesterday; here are some of my thoughts!

Sunday I blogged that I was going to be meeting with an accountant and listed a few questions that I was going to ask him to dive deeper into the realms of setting up a business entity, such as an LLC or a C corp. The basis for the meeting was because with the amount of money that I had been bringing in recently from ebay and my website development business, there was some money that was not being reported as income and instead was just being deposited and not being accounted for. So there were some worries about the possibility of getting audited or having different problems with paying state taxes.

So, I wanted to learn more about my options, discuss my ventures, and see what may be the best idea for me as an entrepreneur. Now, before I go any further, I want to STRESS that this is advice that was given to ME and is specific to my case. That being said, it is always best to get your own advice from a certified professional such as an accountant or lawyer or both! So, with that, I am going to just talk about some of my different options, the answers to some of the questions that I asked, and what the future holds for how I do business. Read more »