Home / Small Business
Wednesday, July 16, 2008
Reaping What You Sew
Christina Scotti
FOXBusiness
FOXBUSINESS.COM PROFILES ENTREPRENEURS AGE 35 AND YOUNGER
Have you ever sat staring into space waiting for that big idea? That's what 28-year-old Robert Kalin was doing when lighting struck and he came up with the concept for Etsy, an online marketplace for handmade goods.
The idea was a natural for the son of a carpenter--crafting things that were useful. Today, Kalin heads a $27 million privately held company that in three years has established itself as one of the fastest-growing online purveyors of handmade goods. In the process, Etsy has attracted more than 100,000 sellers who that have opened shops on the site: From England to Australia to South America, craftsmen are online selling everything from origami to hammocks to pottery to crochet. With categories like "Geekery"--that include a Nintendo Super Mario coaster and a zombie bunny finger puppet--it seems as though Kalin wants to establish a group for everyone on his site.
"There is a story behind [these handmade goods],” says Kalin. “It's kind of like when you go to somebody's house and they're showing you around and there are a couple of things that have stories behind them." Those are the things that are meaningful--and at the end of the day, it's about the person who made it and then about the person who bought it”
To learn more about Kalin's story, check out “The Art of Online Crafts” and scroll down for the Six Shooter Q&A…
THE SIX SHOOTER
1. Where were you the moment you decided your business plan?
Sitting on an orange chair facing an open window. It was a warm Brooklyn night and the lights were off. I had a vision, not a business plan.
2. What was the one thing you didn't know that you had to bluff your way through?
There's more than one thing and I wouldn't call it bluffing. It's learning as you go, even if you're making up the knowledge. For example, I was interviewed by AdWeek on the future of advertising.
3. What one life lesson did you learn that helped you build your business?
Lots of people overlook success because it's dressed up in overalls and looks like work. I think Edison said that. I've had to do everything from scrubbing toilets to media interviews.
4. Who is your role model or inspiration?
I admire people who work hard and use skill to elevate their work to an art. This could be someone who builds communities (Sean Meenan), tables (David Ellison), poesies (Wallace Stevens), or bicycle frames (David Tesch).
5. What do you wish you had more of: time or money?
Time. Money is a commodity.
6. What is the one word your employees your employees would use to describe you and why?
Compulsive.
Want to know who's next? Check back every other week to see more Young Guns... If you know a Young Gun e-mail us at youngguns@foxbusiness.com.
| PODCAST | VIDEO |
|
Download
Podcast |
Video Archive |
SmartMoney's Small Business Site
- Is a Book the New Business Card?
Wed, 01 Jul - Selling Michael Jackson
Mon, 29 Jun - Stand Out: From Old Light Bulbs, a New Idea
Mon, 29 Jun - Innovative Ways to Reel in Cash
Wed, 24 Jun
FOX Translator
No data currently available.
No data currently available.
Think telemarketer. Except, it's much worse because you can't avoid this call. Instead, when you get one, it's time to pay up, because the bet you placed with borrowed money is eating itself.
Buying stocks on margin is risky because you're essentially "playing" with someone else's money. If the shares you purchased tank, your losses will likely be more than if you had bought the shares with your own cash. This is why the New York Stock Exchange and the Nasdaq impose certain restrictions on the practice.
Initially, you¿re only allowed to borrow half of the money from your broker when buying on margin. You set up a margin account and from then on must keep a maintenance balance of at least 25% of the market value of your stocks.
If the market value of your investment falls below this minimum, you're required to make up the difference by either depositing money into your account or selling some of the stock. If your broker notifies you that you've dipped below this minimum, it's called a margin call.
If you fail to adjust your account accordingly, the broker is authorized to sell shares in your account to make up the difference. The broker can even sell other stock in your margin account to make up for the loss that selling the shares didn't cover.
As an example, say you buy $8,000 in stocks of any given company. You borrow the maximum $4,000 from your broker and pay the rest yourself. Now, if and when the total value of these shares changes, you must make sure you maintain at least $2,000 (25%) in equity. In other words, if the total value were to drop below $6,000, you¿d be in trouble since you only put in $4,000 of your own money to begin with.
