After explosive devices detonated near the finish line of the Boston
Marathon on Monday, killing three and injuring 180 people, social media
sites including Twitter erupted -- but not always with trustworthy
information. Several top news organizations came under fire for
reporting information despite conflicting reports of what was unfolding.
For business owners who often share or comment on breaking news over
social media, it was easy to wind up sharing faulty information. And
some brands ran afoul of consumer rage when their marketing efforts --
many running on automated programs -- were issued amid the chaos.
The confusion continued as the week went on. By Thursday,
the FBI reprimanded users of sites like reddit for conducting their own
digital manhunt for the Boston bombers. Similarly, local Boston police
asked journalists on Friday to stop live-tweeting police actions and
scanner traffic in order to preserve the safety of officers and the
effectiveness of their manhunt.
Given the immediacy of how news is spread over social media, and the
potential for sharing incorrect information, business owners should
avoid sending scheduled marketing messages and commenting on
moment-by-moment updates during sensitive breaking news events. For
brands, a more effective use of social media could be to share links to
positive and constructive services. In this case, examples might have
included Google's Person Finder tool or EvidenceUpload.org, a way for people to send their photos and videos from the marathon directly to the FBI. -- PRDaily, ReadWrite, Daily Dot and Mashable
Twitter Music officially launches.
Twitter's much-rumored music service helps users discover new music that
was previously under their radar. "Most of Twitter Music feels like
just another Spotify, or just another Last.fm," writes the Wall Street
Journal's Matthew Lynley, noting that heavy music listeners probably
already have profiles on other music-discovery services, and may not
want to duplicate them. On the other hand, Lynley says, the emerging
artists section of Twitter "shows exactly how powerful Twitter's data
set can be at surfacing relevant music to even the most well-equipped
music fanatics." -- The Wall Street Journal
Medium acquires long-form publishing platform MATTER.
Publishing startup Medium has joined forces with MATTER, an innovative
platform for long-form journalism on science, technology and the future.
Launched last October by Twitter and Blogger co-founder Evan Williams,
Medium is an invite-only service that aims to be a new kind of home for
thoughtful reading and writing. MATTER raised $140,000 on Kickstarter
early last year to launch a site that promotes quality, in-depth
journalism through subscriptions and individual article sales.
"Experimenting with tweaks to the model and the way we distribute our
content will be a vital way of making MATTER robust in the long term,"
MATTER said in an announcement.
Twitter creates a new position: data editor.
Twitter has hired Simon Rogers away from British newspaper The Guardian
to be its first data editor. Rogers is a 15-year veteran of The Guardian
and editor of its Datablog,
which he created in 2009. "Twitter has become such an important element
in the way we work as journalists," Rogers said on his personal blog. "As data editor, I'll be helping to explain how this phenomenon works."
Gotcha! Social media popularity doesn't equal credibility.
Kevin Ashton, a manager at electronics firm Belkin and a former
entrepreneur, created a persuasive online identity for an imaginary
digital-culture guru named Santiago Swallow. The fake expert's online
presence included a website, a Wikipedia page and a seemingly verified
Twitter account with 80,000 followers. Ashton's explanation of how and
why he did it makes for a fascinating read. He used the experiment as a
springboard for outing self-proclaimed experts and bestselling authors
whose online followings are mostly fake.
Friday, April 19, 2013
Startup Wedding Planners Explore Niche Markets to Stand Out
Wedding planning is a popular entry point for aspiring solo entrepreneurs to break into the industry, since a planner doesn't need much more than some expertise, business cards and a website to get started
in this lucrative slice of the love industry. Weddings represent a $51
billion market in the U.S., and couples are investing more in wedding
planning services to make their special days unforgettable. Since 2009,
spending on planners has increased 47 percent, from an average of $995
per wedding to $1,466 in 2012, according to market-research firm the
Wedding Report.
With the number of wedding planners in the U.S. estimated at upwards of 20,000 by the Association of Bridal Consultants, some entrepreneurs are tapping niche markets to distinguish themselves in a crowded industry. Modern specialties range from day-of coordination for the bride-on-a-budget to exotic destinations and gay and lesbian weddings.
Here's a look at how three wedding planners have built thriving businesses in niche markets.
The Day-Of Coordinator
Helena Parker, Divine Events by Helena
San Diego
Helena Parker caters to brides who don't want to spend thousands of dollars for a wedding planner but still need help. Clients hire her to deal with vendors in the final two weeks leading up to the wedding and manage the flow of events on the day, which typically requires about 20 hours of work. Unlike a full-service planner, she isn't involved in early-stage planning and doesn't help choose colors, flowers, food or music.
Parker's day-of rates start at $850 and increase depending on how much the couple needs coordinated in advance. Full-service planners charge an average of $3,500.
Related: Creating a Blueprint for Your Brand Strategy
A former bookkeeper and financial analyst, Parker started Divine Events in 2009. While planning her own wedding, she met a group of other brides-to-be and wound up attending some of their weddings as a guest or a quasi-coordinator. She became something of an expert on planning the celebrations, and because she wanted to spend time with her child, opted for day-of coordinating instead of the traditional full-service.
"Every wedding planner I know in San Diego is trying to talk people into full-service planning," Parker says, but she has been successful sticking to her lower-cost niche. After only four years in the business, she's planning an average of 17 weddings a year, thanks to positive word of mouth and Yelp reviews.
The Same-Sex Wedding Expert
Bernadette Coveney Smith, 14 Stories
Boston and New York
Bernadette Coveney Smith capitalized early on the same-sex marriage movement. When the Massachusetts Supreme Judicial Court ruled in 2003 that same-sex couples had the right to marry, she quit her job at a Boston nonprofit organization and launched her same-sex wedding planning agency, 14 Stories.
"I was 27 and idealistic, had done event planning for nonprofits, and I knew I had the skill set," she says. "I wanted to be a wedding planner and an advocate and pave the way."
It was a smart a bet. In 2008, Massachusetts legalized gay marriage in the state for all nonresidents as well, even if their home state didn't recognize it. The next year, Coveney Smith's business skyrocketed. She handled 56 weddings, up from 22 the year before, and revenue reached six figures. When New York began allowing same-sex marriage in 2011, she opened up shop there as well.
Related: The Secret to a Strong Branding Message? Focus.
Couples from other states and countries where same-sex marriage is prohibited book "elopement packages" in New York for $3,500 to $12,500 and in Massachusetts for $800 to $2,300, which include assistance in obtaining a marriage license. Coveney Smith has also positioned 14 Stories as uniquely equipped to manage the special challenges that same-sex couples face. "Straight couples seldom have to worry about family acceptance or discrimination [by vendors servicing their weddings]," she says. "Yet this is a very real concern for same-sex couples."
The Destination Wedding Planner
Alison Hotchkiss, Alison Event Planning & Design
San Francisco and New York
In 2003, when Alison Hotchkiss started planning weddings in exotic locales, the term "destination wedding" wasn't yet part of the lingo, and only three other U.S. planners specialized in lavish locations.
Today Hotchkiss handles 18 to 24 weddings a year, has four full-time staff members, six contractors and two offices, with a third opening soon in Zurich, Switzerland. It's proven to be a lucrative specialty. She charges a flat fee that ranges from $20,000 to $50,000 depending on the scope of the work.
Hotchkiss had long worked in corporate event planning and the travel industry. After helping plan friends' weddings in Lake Tahoe, Hawaii and Costa Rica, she began specializing in destination weddings. Rates are typically higher, but destination planning is also more demanding, since time-zone differences and language barriers often complicate logistics.
"You have to roll with the punches and be malleable," Hotchkiss says. A strike in Mexico could disrupt transportation, for example, or generators might provide the only electricity in a rural town. She says identifying top-notch vendors in foreign countries and maintaining good relationships with them are key to pulling off successful destination events.
With the number of wedding planners in the U.S. estimated at upwards of 20,000 by the Association of Bridal Consultants, some entrepreneurs are tapping niche markets to distinguish themselves in a crowded industry. Modern specialties range from day-of coordination for the bride-on-a-budget to exotic destinations and gay and lesbian weddings.
Here's a look at how three wedding planners have built thriving businesses in niche markets.
Helena Parker is like a wedding conductor on the big day but doesn't manage planning from the beginning.
image credit: Melissa McClure
Helena Parker, Divine Events by Helena
San Diego
Helena Parker caters to brides who don't want to spend thousands of dollars for a wedding planner but still need help. Clients hire her to deal with vendors in the final two weeks leading up to the wedding and manage the flow of events on the day, which typically requires about 20 hours of work. Unlike a full-service planner, she isn't involved in early-stage planning and doesn't help choose colors, flowers, food or music.
Parker's day-of rates start at $850 and increase depending on how much the couple needs coordinated in advance. Full-service planners charge an average of $3,500.
Related: Creating a Blueprint for Your Brand Strategy
A former bookkeeper and financial analyst, Parker started Divine Events in 2009. While planning her own wedding, she met a group of other brides-to-be and wound up attending some of their weddings as a guest or a quasi-coordinator. She became something of an expert on planning the celebrations, and because she wanted to spend time with her child, opted for day-of coordinating instead of the traditional full-service.
"Every wedding planner I know in San Diego is trying to talk people into full-service planning," Parker says, but she has been successful sticking to her lower-cost niche. After only four years in the business, she's planning an average of 17 weddings a year, thanks to positive word of mouth and Yelp reviews.
Bernadette Coveney Smith has expanded her gay wedding planning business to include courses on how to service the LGBT niche.
image credit: Antonio Del Valle
Bernadette Coveney Smith, 14 Stories
Boston and New York
Bernadette Coveney Smith capitalized early on the same-sex marriage movement. When the Massachusetts Supreme Judicial Court ruled in 2003 that same-sex couples had the right to marry, she quit her job at a Boston nonprofit organization and launched her same-sex wedding planning agency, 14 Stories.
"I was 27 and idealistic, had done event planning for nonprofits, and I knew I had the skill set," she says. "I wanted to be a wedding planner and an advocate and pave the way."
It was a smart a bet. In 2008, Massachusetts legalized gay marriage in the state for all nonresidents as well, even if their home state didn't recognize it. The next year, Coveney Smith's business skyrocketed. She handled 56 weddings, up from 22 the year before, and revenue reached six figures. When New York began allowing same-sex marriage in 2011, she opened up shop there as well.
Related: The Secret to a Strong Branding Message? Focus.
Couples from other states and countries where same-sex marriage is prohibited book "elopement packages" in New York for $3,500 to $12,500 and in Massachusetts for $800 to $2,300, which include assistance in obtaining a marriage license. Coveney Smith has also positioned 14 Stories as uniquely equipped to manage the special challenges that same-sex couples face. "Straight couples seldom have to worry about family acceptance or discrimination [by vendors servicing their weddings]," she says. "Yet this is a very real concern for same-sex couples."
Alison Hotchkiss (left) plans weddings on ranches, in Europe or in tropical destinations like Tulum, Mexico.
image credit: Mel Barlow
Alison Hotchkiss, Alison Event Planning & Design
San Francisco and New York
In 2003, when Alison Hotchkiss started planning weddings in exotic locales, the term "destination wedding" wasn't yet part of the lingo, and only three other U.S. planners specialized in lavish locations.
Today Hotchkiss handles 18 to 24 weddings a year, has four full-time staff members, six contractors and two offices, with a third opening soon in Zurich, Switzerland. It's proven to be a lucrative specialty. She charges a flat fee that ranges from $20,000 to $50,000 depending on the scope of the work.
Hotchkiss had long worked in corporate event planning and the travel industry. After helping plan friends' weddings in Lake Tahoe, Hawaii and Costa Rica, she began specializing in destination weddings. Rates are typically higher, but destination planning is also more demanding, since time-zone differences and language barriers often complicate logistics.
"You have to roll with the punches and be malleable," Hotchkiss says. A strike in Mexico could disrupt transportation, for example, or generators might provide the only electricity in a rural town. She says identifying top-notch vendors in foreign countries and maintaining good relationships with them are key to pulling off successful destination events.
Venture Capital Funding Slows in the First Quarter
Venture capital investment dollars declined 12 percent in the first
quarter of 2013 from the previous quarter, and the number of completed
deals slid 15 percent, according to a report released today by
PricewaterhouseCoopers and the National Venture Capital Association.
Venture capitalists invested a total of $5.9 billion in 863 deals in the first quarter, compared with $6.7 billion in 1,013 deals in the fourth quarter of 2012.
The decline is consistent with industry expectations. For the past several years, the venture capital industry has been raising less capital than it invests, accounting for some of the slowdown. Less money is also being funneled into traditionally capital-intensive sectors such as clean tech and life sciences, especially in first-time deals. What's more, the majority of deals are taking place in the capital-efficient IT sector where funding round amounts are lower, according to the report.
During the first quarter, software companies received more VC funding than other sectors, accounting for $2.3 billion, or nearly 40 percent, and 329 of the deals. The increase in funding in the software space is "very pleasantly surprising" given the drop-off in funding overall, says Tracy Lefteroff, a global managing partner of the U.S. venture capital practice at PricewaterhouseCoopers. This is the fourth consecutive quarter of more than $2 billion invested in the sector.
Related: Venture Capital's Big Boys Getting Bigger
Unlike software, several sectors tracked in the report saw notable investment declines. The life sciences sector, which includes biotech and medical device businesses, fell 28 percent in dollars and 23 percent in deals. The clean tech sector, which includes alternative energy and conservation companies, declined 35 percent in dollars and 13 percent in deals from the prior quarter.
While overall venture capital investing has declined, it's not necessarily a harbinger of bad news for startups. There's still plenty of angel capital around, and historically less than 1 percent of U.S. companies have raised capital from VCs, according to the Ewing Marion Kauffman Foundation, a Kansas City, Mo.-based organization that seeks to advance education and entrepreneurship.
"You're seeing more and more angels stepping up to the plate on a percentage basis compared with venture capitalists," says Lefteroff.
Concrete data for angel investing tends to be harder to come by, given the private nature of many of the deals. According to the Halo Report, a national survey of angel group investment activity, angel investing remained stable in 2012, compared with prior years.
Venture capitalists invested a total of $5.9 billion in 863 deals in the first quarter, compared with $6.7 billion in 1,013 deals in the fourth quarter of 2012.
The decline is consistent with industry expectations. For the past several years, the venture capital industry has been raising less capital than it invests, accounting for some of the slowdown. Less money is also being funneled into traditionally capital-intensive sectors such as clean tech and life sciences, especially in first-time deals. What's more, the majority of deals are taking place in the capital-efficient IT sector where funding round amounts are lower, according to the report.
During the first quarter, software companies received more VC funding than other sectors, accounting for $2.3 billion, or nearly 40 percent, and 329 of the deals. The increase in funding in the software space is "very pleasantly surprising" given the drop-off in funding overall, says Tracy Lefteroff, a global managing partner of the U.S. venture capital practice at PricewaterhouseCoopers. This is the fourth consecutive quarter of more than $2 billion invested in the sector.
Related: Venture Capital's Big Boys Getting Bigger
Unlike software, several sectors tracked in the report saw notable investment declines. The life sciences sector, which includes biotech and medical device businesses, fell 28 percent in dollars and 23 percent in deals. The clean tech sector, which includes alternative energy and conservation companies, declined 35 percent in dollars and 13 percent in deals from the prior quarter.
While overall venture capital investing has declined, it's not necessarily a harbinger of bad news for startups. There's still plenty of angel capital around, and historically less than 1 percent of U.S. companies have raised capital from VCs, according to the Ewing Marion Kauffman Foundation, a Kansas City, Mo.-based organization that seeks to advance education and entrepreneurship.
"You're seeing more and more angels stepping up to the plate on a percentage basis compared with venture capitalists," says Lefteroff.
Concrete data for angel investing tends to be harder to come by, given the private nature of many of the deals. According to the Halo Report, a national survey of angel group investment activity, angel investing remained stable in 2012, compared with prior years.
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