Toilet Paper Ads -- Brilliant or Full of ...?

To those who enjoy the bliss of the bathroom, an enjoyable read is just as important as a roll of bathroom tissue. And it is these two staples that seem to have inspired the creation of Star Toilet Paper: a startup that produces toilet paper with advertisements.

Since its founding in 2011, Star Toilet Paper has attracted a range of advertisers -- from restaurants to pet stores -- and received plenty of press (including a recent story in a New York Times blog). The toilet paper is free for merchants who use it in their bathrooms,  and the ads contain QR codes that customers can scan with their smartphones to receive digital coupons. But the company -- founded by brothers Jordan and Bryan Silverman -- hasn't generated much revenue over the past three years, according to The Times.

I suppose the reason is obvious: toilet paper is used to clean ourselves after going to the bathroom. No matter how clean a roll of toilet paper is, we associate it with its primary purpose. That's not to say that toilet paper ads don't spark conversation. At The Blue Note Grill in Durham, N.C., customers using the restrooms prefer the paper coupons over the the digital. “The toilet paper is a great gimmick for the restaurant,” the owner, Bill Whittington, told The Times. “On a busy night, we’ll see customers come out of the bathroom with a foot and a half of toilet paper, and everyone at the table will be looking at it."

The question is: what do they do with the toilet paper afterward? If they don't use it for a free dessert, I don't want to know. 

When is a Crowd Too Big to Handle?

There are two aspects of crowdsourcing websites that are very appealing. To individuals, these sites provide the chance to share ideas and see the results, something we often don't get to experience in a world that's often unfair. For entrepreneurs, the crowds offer the opportunity to hire fewer employees, and create a customer base that feels a sense of ownership and personal pride in the company.  But is crowdsourcing always the right approach?

It shouldn't take a crowd to figure that out. Virtual crowds are great for market research and spreading the word about a new product or service, especially among the younger generation. But when they get too large, they are not always effective. Big teams can take longer to make decisions, whether they are made unanimously or by majority. And sometimes because of the size, the ideas of some of the smartest teammates are drowned out by the crowd, leading to bad results. The question of how the optimal team size has been studied by experts for quite some time, and of course, there are different opinions (check out this article from Knowledge@Wharton). But it's a question that we must continue to ask, as the crowdsourcing industry gets more crowded every day.

The Big Idea? Or The Next Best Thing?

Image courtesy of [hinnamsaisuy]/FreeDigitalPhotos.net

During an industry event I attended in June, I had the pleasure of meeting a successful entrepreneur who had some advice for those looking to start their own companies: pick a business that already makes money.

On the one hand, that makes sense. After all, startups aren't just about having fun and being the boss; they are businesses and need to make money to survive. But on the other hand, the most innovative companies are developing groundbreaking products or services through new and untested business models. No matter how strong the business plan or how reputable the investors, these entrepreneurs can only hope that enough people will be interested in what their companies offer.

The best approach to entrepreneurship is somewhere in the middle between trailblazing and the tried and true. Unfortunately, many entrepreneurs today seem to be adopting only the latter approach -- taking successful companies and copying or building off them. Have you seen how many companies today offer cloud-computing solutions, e-commerce portals, and social communities for everyone from artists to physicians? I'm not sure how long a great idea lasts these days, or whether anyone remembers a name, but in the end a startup will only defeat its competition if it has the right marketing and communication plan. The questions that these entrepreneurs, copycats and pivot artists have to ask are all the same: Who are our potential customers? How should I reach them? And what makes our company better than the rest? The answers to these questions are not easy, but they are the key to making money, being a boss, and calling yourself a successful entrepreneur.

Inventing Company Names

The Wall Street Journal had an interesting story about the challenges of naming startups when the availability of domain names drops everyday. Many entrepreneurs, searching for short URLs, have used their to imagination to invent their company names, such as Kaggle, Mibblio, and Zaarly.

The creative names are part of the mentality of today's entrepreneurs, who are breaking all the rules as they follow their dreams. In a sense, that's what the startup is all about: creating not just a business but a home that expresses who you are. Entrepreneurs today want casual offices with ping-pong tables and free food and drinks. They want employees to love what they do, and share in the company's success. Most of all, they don't want to be bound by the established norms. They are ready to be part of a new world, where anyone with a dream, a strong work ethic, and access to cheap programmers overseas, can become a successful CEO.

So to all those doubters, beware: my company, www.dhfmanfrauec.ly is launching soon.