Getting Acquainted With the Habits of Successful Entrepreneurs

Psychologists have proven, through continuous research, that behaviour can be learned through observation and mirroring. They also purport that it takes 21 days of consistency for an individual to make or break a habit. Why is this important to entrepreneurship? Well, your success as an entrepreneur can lie heavily on the monitoring, observing, and putting into action some of the habits, techniques and practices that are common among entrepreneurs and small business owners who have propelled their careers beyond the confines of “a single start up”. Many entrepreneurs credit their success to modeled behaviour and plans. Consequently, we have compiled a list of some of the habits of successful entrepreneurs to help steer you in the right direction and give you a head start on your return on investment.

Watch the company you keep.

If you want to attain entrepreneurial success, you should find yourself in the company of those who have gone before you and have excelled. You can learn a lot from people who are smarter than you. Don’t let their knowledge dissuade or intimidate you. They, too, once had a startup (in many cases, of humble beginnings). Once you’ve selected the individuals you want in your circle, refrain from suffocating yourself with business and business-related tasks and conversation. 

To elaborate, refrain from meeting these  “role models” in networking and business settings. Instead, spend time with them at sporting events, barbeques, or even light coffee. If you surround yourself with successful business owners beyond the context of business, you create the opportunity to learn how they live their lives on a day-to-day basis. Conclusively, if you intend on starting an accounting firm, make sure accountants make up a percentage of your “friends group”. 

Be intentional about your day-to-day routine.

Successful entrepreneurs rarely complain about lacking enough hours in the day. They recognize that everyone is allotted the same time and it is the use of that time that is transformative. If you are a morning person, wake up early to capitalize on your hours of productivity. That doesn’t mean waking up at 7 a.m. It means really taking advantage of the time you complete your best work. That may translate into a 4:00 a.m. call time. If you want to maximize your daily productivity potential, you must take your body’s cues seriously. Recognize that work is just as important as rest and when there’s an imbalance of these two things, you and your business are bound to suffer. Further, incorporate time for exercise, personal time, and quality time with family and friends. Once you’ve settled on your day-to-day routine, be consistent.

Make use of the short-list.

When you own a business, your to-do list is often eternal. The list itself might discourage you from completing any work at all. In other instances, it can be so demanding that you seldom complete tasks in a reasonable manner.  Successful entrepreneurs report condensing tasks to two to three priority items each day. As a result, in the likely event that you do not get through your entire list, your most important tasks are completed daily. This technique keeps you accountable, increases task completion, and provides an overall picture for your efficiency. Additionally, short-lists function as an evaluation tool on how to run and grow your business.

Aim high.

Finally, one of the most common emotional traits that persist among entrepreneurs is doubt. Will this work? What if I fail? Is this the right way? Will they buy it? Should I do this? The second-guessing disease is correlated with goal setting. The more you second-guess yourself, the smaller the goals. Successful entrepreneurs aim high, no matter how unsure they are. Why? Because starting a business is a risk and that’s where the magic happens in many instances. Will the outcome always be favourable? Probably not, but at least you can edit and go back to the drawing board when something does not work out.

It is better to aim high and land somewhere at the top than to aim low and hit the mark.

Start-Up Mistakes to Lookout For!

Let's face it, every entrepreneur's first start-up is a fish-out-of-water- experience; new territories usually are. One of the best ways to tackle the unfamiliarity of business ownership however is to learn from those who have gone before you. Most entrepreneurs have a laundry list of things they've had to do, and redo multiple times before getting things right. Fortunately, we've got our laundry list of mistakes you should avoid to make your startup success attainable.

A Saturated Market

One of the more challenging tasks of being an entrepreneur is knowing how to reason with yourself and be honest in those responses. This is particularly true at the conception stage of your startup. You come up with an idea for your business, you believe in it, and you start investing time, energy, and resources to make your vision materialize. Finally, when you launch, you realize that the market is too saturated and your attempt to transcend your peers failed. Just like that, your business dissolves. Unfortunately, this is a common mistake.

When you have an idea for a startup, it is imperative to implement a market research component that facilitates your place in the designated industry. If you haven't invented something it is more than likely the case that your business idea already exists. Know who your competitors are, how the market is performing, and whether it makes sense to invest in a business idea that has seen one too many launches.

Launching too quickly or too slowly

 

Having a new business can be exciting and that excitement can persuade you to place your product or service in the hands of consumers as fast as possible. Prematurely launching your business can kill it. There is nothing quite like introducing an ill-prepared product to a consumer. On the other hand, it is equally detrimental if you have a successful product and you are unable to keep up with the demand for it. Take some time and nurture your idea to control for foreseeable outcomes like these.

It is also possible to launch too slowly. Some startups require a large amount of preparation time. Research, testing, and funding are among the primary factors that can delay a launch. However, if you are taking too long to make your business accessible, perhaps it has no place in the market. Otherwise, you're hurting your business if you withhold something that is on demand and is necessary to your consumers. They may stop waiting. If you are slow to launch, there should be substantial reason.

Poor Investment Strategy

Every business wants to grow, but that growth is heavily predicated on how money is managed. Your business should be your investment manager's priority. Monitor the monetary flow and forecast of your startup to effectively regulate where you can make more money and where you should pull back a bit. Further, investments should yield growth and this should not be interpreted as investing solely in the interest of shareholders. Investments should also be made in favour of consumers; they make the business. “If you invest in your users, your investors will benefit regardless”.

No Target Audience

It's unfortunate that some startups fail due to the lack of a clear and definitive consumer. Knowing who you are selling your product to is instrumental in startup success. A designated target audience helps drive marketing and promotion strategies, product development, and sale projection. When you have a target audience you are aware of exactly where to find your market and how to control it and be competitive. On the other hand, failure to determine a specific group to which to market your product can result in financial loss and over-investment.

A Divided Team

Lastly, if your team does not share your vision, you are doing a disservice to your business. Hire like-minded people who share your values, but differ in creativity and skill; this will diversify and enhance your business potential.

Starting a business can be intimidating, but minimizing your mistakes can make the ride a little less bumpy and a little more successful. 

Minding Your Business with a Business Plan

“By recording your dreams and goals on paper, you set in motion the process of becoming the person you most want to be." Mark Victor Hansen could not have spoken truer words. The idea of writing down thoughts, goals, and dreams, is a transcendental one. In fact this very practice has materialized to a standard requirement in the world of business, formally known as a business plan. It is the vital blueprint for any startup and entrepreneurs are recognizing just how drastic business can change positively, with written foundations. So why are business plans so important?

Vision

If you were traveling somewhere you’ve never been before, would you go without a map? Probably not, so why would you embark on a business venture, where the risk is far greater, without having a blueprint? Your business plan functions as a map—your big picture. Before you start any business your only tool is your idea. As you begin to think about it more and more, ideas develop and a plan emerges. You start to consider factors like your target audience, market research, funding, staff/ employees, business registration, and the list goes on, but they still just classify as ideas in your head.

Documenting this information is what keeps your vision alive. It is your way of stepping outside of yourself to allow your vision to materialize. Further, organizing your ideas by formulating them in a business plan helps you build effectively and remove information that may be detrimental to your business as a whole. This inherent editing and buffering allows you to keep your vision in mind; the more you work on the plan, the realer your entrepreneurship becomes. Simply put, creating your business plan takes you from a dreamer to a doer.

Accountability

Your ability to transition from the phase of a dreamer to a doer often determines how serious you are about your startup. Creating a business plan requires work and research and this investigative nature of the process keeps you accountable in more ways than one. Firstly, your business plan makes you accountable for your own actions. When you make a plan and write it down you are more likely to follow through on that plan than if you had simply stored it away in your mind. Your business plan is your personal correctional officer, ensuring that you are working towards the fulfillment of your startup. 

Secondly, a business plan keeps you accountable to your potential investors, sponsors, and banks (when you apply for a business loan).  At some point you will realize that your startup is less about you and more about what service you are capable of bringing to the table. Investors and those alike, want to ensure that you are worth the investment: a) is there a market for your idea b) is it lucrative, and c) how big is the return on investment. Additionally, they want to be able to trust you and your abilities. In most cases, the primary source of endorsement is a well-orchestrated and thought-out business plan.

To Answer the Question: Should you really be starting a business?

A common mistake entrepreneurs make is underestimating how much work actually goes into starting and running a business. A business plan is one of the primary tools to weed out the weak from the strong, the able from the disabled, and the determined from the desolate. As mentioned above, your business plan is where the evolution of your idea takes place. As you comb through each category of the plan and consider your place in the entrepreneurial world, things can become overwhelming. It is at this point that you must reason with yourself. Consider whether this is a journey you should embark on now or, alternatively, if you would benefit by waiting a while. 

You might also reflect on whether you should partner with someone or work individually. How much time would you have to invest daily, especially if you’re pursuing a startup while working a full time job? At the very least, your business plan is your platform for evaluation; don’t take it lightly.

We’ve shared some of the most fundamental reasons for using a business plan for your startup and we encourage you to consider them before your next venture.  If you’ve been working on a business plan tell us why it’s an important starting point for you!

Mentorship: The Secret Weapon to Becoming a Successful Entrepreneur

 At the forefront of every entrepreneurial venture are two certainties: the conception of an idea and the desire for seamless execution. Everything else is a mere combination of fear, inexperience, ignorance, and zeal.  Although this disposition can be unforgiving, it is a part of the courageous discourse of entrepreneurship that every entrepreneur encounters and often overcomes. For example, entrepreneurship is theoretically equivalent to preparing for war; you know you want to fight, the foreseeable outcome is winning, but executing that victory is jumbled in your lack of experience as a fighter, the fear that it may kill you, and jumping head first into a situation with inadequate preparation. Fortunately, proactive and preventative resources exist to minimize the risk of failure when taking on the battle of business. More specifically, mentorship is a key weapon capable of optimizing success in the realm of entrepreneurship.  

Mentorship, although commonly undermined and underestimated, places you in a position of observation (and in some instances, participation), allowing you to become more familiar with the craft or career of your choosing. Consider this: having a single conversation with an individual who has soldiered through the trenches of entrepreneurship can spark myriad ideas and transform the way you approach your own business. Imagine then, what magnitude a series of conversations throughout your journey can yield when you answer the call into the world of start-ups. In fact, don’t just imagine; having a mentor should be attached to any business idea that you intend to pursue, so much so, that the idea should be impossible to fulfill without one. 

The benefit of being a protégé to a professional who can enlighten you far outweighs the cost of seeking the right mentor (it can be an intimidating and daunting process finding the right person who is willing to work with you as much as you are willing to work with them). In a 2003 study conducted by Jackson et al., it was reported that mentoring relationships are key to developing productive careers and yield personal satisfaction for both the mentor and the protégé. The ability to have someone who can critique your ideas, give you constructive criticism, and encourage you along the way can eliminate potential setbacks that derive from error. This is not to say that you won’t make mistakes, because you will. However, there is a safety net the works both proactively and retroactively to activate damage control. “Mentors provide a safe, secure culture in which protégés can develop ideas/innovations, ensuring that they receive the recognition their efforts deserve”.

Once you’ve come to terms with the necessity of a mentor/mentee relationship for any startup or entrepreneurial endeavor, “the search” must commence. The search is simply finding someone who is adequate enough to lead you and humble enough to be challenged. Equally important is your connection—how well your personality gels—with the professional. Research suggests that mentor relationships are best formed in unprofessional environments.  Perhaps find common interests and build on those first. Finally, seek someone that can contribute effectively to the circle of inspiration; you inspire him and he inspires you. Mentors gravitate towards rising stars, so show why you deserve to be among and even transcend them.

Entrepreneurship will never be easy, but if you’re prepared you can handle whatever it throws in your direction. Look at it this way: You would never show up to war without your weapon and expect a victory, let alone an easy one, so don’t show up for business without the right tools expecting success to fall in your lap.

Why many tech startups are cheering a broken Liberal campaign promise

On March 22, Prime Minister Trudeau’s Liberal government unveiled its first federal budget since capturing a parliamentary majority in the 2015 election. Among the components of the budget that have attracted attention in the press are the fiscal stimulus measures, infrastructure investments, and a deficit projection of close to $30 billion. But the budget is also notable because of something it does not contain: changes to the taxation of stock options.

In general, Canadians who are likelier to receive compensation in the form of stock options tend to be at the high end of the earnings scale. Large firms often reward their executives with stock options in lieu of salary, partly because stock option gains benefit from preferential tax treatment, and partly because ownership of claims on their own company’s stock provides a material incentive for corporate executives to optimize that stock’s performance.

The Liberals’ original proposal was to place a cap of $100,000 per year on gains from exercised stock options that can qualify for a tax deduction. (Under the current rules, only half of gains from cashing in stock options are subject to taxation, and there is no cap.)

Why didn’t the government follow through on its pledge? And what are some of the implications of this non-change?

Startup compensation a concern

“As I was out on pre-budget consultations I heard from many small firms and innovators that they use stock options as a legitimate form of compensation for their employees, so we decided not to put that in the budget,” said Finance Minister Bill Morneau. Indeed, startups typically do not enjoy the kind of cash flow that large, profitable, established firms generate. Thus, it is common for startups, particularly in the tech sector, to try to lure talent away from major players by offering stock options as compensation. This practice has allowed some startups to attract highly skilled personnel who might otherwise have accepted a more immediately lucrative position at a reputable, old-guard company.

The Liberals were not the only federal political party to float a proposal for altering the preferential tax treatment accorded stock options in the run-up to last year’s election. Thomas Mulcair’s New Democrats actually went a step further, advocating wholesale elimination of the special deduction. But tech entrepreneurs pushed back; Hootsuite Media founder Ryan Holmes even predicted that the NDP plan would “kill the Canadian startup ecosystem.”

At a time when Canada’s economy is experiencing lacklustre growth and job creation, many leading politicians understandably don’t want to be seen as undermining one of the country’s most vibrant growth industries. Moreover, the Liberals have marketed themselves as a party that plans to green the economy through technology and innovation; a policy change to the detriment of the tech startup sector would seem out of step with that brand image.

The downside: loss of federal revenue

Of course, incumbents in many industries would be delighted to receive special subsidies, protections, and preferential tax treatment, and can mount convincing arguments in their own favour. Every policy yields costs and benefits, and it’s the task of policymakers to weigh these in order to identify the most socially beneficial option.

Preferential treatment for stock options imposes a cost on Canadian taxpayers by undercutting the amount of revenue that makes its way into federal coffers. In turn, this compromises the government’s ability to offer public services and invest in infrastructural upgrades and innovation—all of which can lower the cost of doing business and boost productivity—without increasing the deficit. Even relatively conservative tax specialists, like Jack Mintz of the University of Calgary, have argued that the status quo around stock option taxation is inefficient, and unfairly favours employees who receive stock options as compensation.

Trudeau and Morneau broke their promise because they have calculated that the status quo delivers more benefits for startups than costs for Canadians who don’t hold stock options. For now at least, a lot of tech startups will breathe a sigh of relief.

How to Make Your Startup Attractive to Angel Investors

Angel investment is one of the most common capital sources for both startups and relatively new companies looking to expand. But drawing high-net worth individuals toward an early-stage enterprise or business proposal requires well placed effort. First of all, angel investors can’t fund something unless they know it exists, which means you’ll need to focus on getting the word out in the right circles. Second, they’re unlikely to bet on a venture unless it offers a substantial return. So a sound business plan and credible growth and revenue strategies are key.

However, according to research by Shai Bernstein (Stanford Graduate School of Business), Arthur Korteweg (University of Southern California Marshall School of Business), and Kevin Laws (Chief Operating Officer of AngelList), arguably the most important factor is the quality of the personnel that the candidate organization has assembled.

Exceptional founders, and a reputable team.

Bernstein, Korteweg, and Laws’s analysis indicates that the presence of visionary founders and reputable staff on a startup’s team is a big draw for angel investors. The data further suggest that experienced angels are likelier than inexperienced ones to emphasize the importance of the people factor. Angels with a lot of investing background are also likelier to take a chance on a promising startup or fledgling enterprise than are newcomers to the profession, who may prefer to “play it safe” by betting on companies that already have some traction.

Seek out promising angels, and do research on them.

Many angels specialize in a particular industry or niche, and it’s a good idea to seek out individuals whose areas of interest or specialization accord with your own, particularly if your proposal is esoteric or technical. Find out what sort of endeavours those investors have funded in the past. You can even attempt to contact previous beneficiaries of the angels you’ve identified as prospective funders of your project, to ascertain what worked in the past and what those angels tend to look for.

A strong pitch.

If you’ve ever watched a full episode of the American network television program Shark Tank—or its Canadian counterpart, Dragons’ Den—you may already have a good idea of how to distinguish a high-quality funding pitch from a lousy one. If angel investors invite you to pitch to them, you need to be ready.

Aim for a duration of around ten minutes—enough time to cover all the essential information without rambling or rushing. If your presentation is in digital format and consists of slides, anticipate spending around one minute on each slide. However, make sure you also have an analog Plan B in case of technical difficulties, which have a nasty habit of cropping up unexpectedly right at the moment of truth.

Unconventional ideas can be powerful in the business world, but in the context of a funding pitch, a pair of conventions are worth observing. One is appropriate attire—you should strive to portray yourself as a consummate business professional and/or choose an outfit that’s suited to your line of work. Another is the hook—you should begin the pitch in a way that piques the investors’ interest. Present them with a problem or dilemma they can relate to, and offer them an innovative solution.

 Answer the following questions in your pitch:

•  What have you and your team accomplished so far?

•  What does your target market/demographic look like?

•  Who are your competitors?

•  What is your strategy for both marketing to customers and delivering your product or service to them?

•  How do you generate revenue?

•  What do you anticipate your revenue stream would look like over the next five years if you met your funding goals? Is your assessment realistic?

•  How much money do you need from the investors to whom you’re pitching?

•  What is your endgame? Do you plan to eventually take your business public, sell to an established firm, or something else? (Angel investors like to know how they will recover their investment.)

Finally, rehearse your pitch until you know it like the back of your hand. Run it by a trusted friend—if s/he would invest in your business or proposal, there’s a good chance that an angel would too.

The Employee-centric vs. Client-centric Debate

The early days of any new business venture represent an enormous challenge and transitioning from business plan to profitability involves a number of important steps and a great deal of investment. Laying the proper foundation for your business is essential to securing the long-term future for your company so having an insight into where you are going to focus your early investment will help shape what eventually defines your business. There are two major schools of thought here: the employee-centric approach and the client-centric approach. Both have their merits and which works for your business will come down to an analysis of which approach is most likely to make your company stronger in the long run based on the resources and capital that you have available.

Employee-centric Approach

Greatest investment: Capital

Best Marketing Feature: Cutting Edge

Clientele: High End

The idea behind the employee-centric approach is to create an environment where the people you hire have the best tools at their disposal so that they enjoy coming to work. The concept is that if the employee is happy they will be better able to service clients who will be happy in turn. In order to provide your employees with such an environment usually requires investing a lot of capital up front. This is the one drawback to this approach as, by having a high startup cost, you have immediately positioned your company to operate at a certain price point depending on the market for your service or product. You have reduced your potential pool of clients down to those that can afford to pay for your service or product, and you are now trusting that you will be able to market your company in such a way that attracts a high end clientele.

You will benefit from being able to provide your clients with the very latest technology in whatever you are offering, and reminding them through advertising and marketing campaigns that your company is on the cutting edge of the industry is essential to making your company viable. Investing big in your company through an employee-centric approach means going big the whole way. The investment is bigger so operating costs will be higher and, in order to turn some kind of profit, you will likely be asking your clients to pay more for your product or service than some of your competitors. By making such a demand of your clients, it is imperative that you consistently deliver the goods because the moment a client realizes that they can get the same quality product or service for cheaper, it’s their right to jump ship.

Client-centric Approach

Greatest Investment: Time

Best Marketing Feature: Value

Clientele: Anyone

In contrast to the employee-centric approach there is the client-centric approach which places a greater emphasis on customer relations and attempting do a lot with very little. Ever heard of someone building their business from the ground up? Well, that’s the idea here. In the client-centric approach there is a minimal amount invested in capital and, instead, a great amount of time invested in an effort to provide the client with what they are looking for and keeping them happy. Every customer is precious as they represent the lifeblood of the company and one dissatisfied customer could be the ruin of your business. A poor night’s sleep is justifiable if it gets the project delivered on time and on budget.

Although expectations might have to be tempered with limited resources available, the advantage here is that because your costs are lower you are able to attract clients who might be looking for the best rate in the market. This, in turn, easily becomes the strategy behind how to market your company to prospective clients. By offering the most competitive rates you attract clients with smaller budgets, but you can in turn offer your service or product to a wealthier clientele by being able to offer them value, thereby effectively opening your business to a wider pool of prospective clients.

Ways to Save On Startup Legal Fees

If you're starting up a business there will come a time when a good lawyer will be your best friend. However, that doesn't mean you need to utilize their bill-by-the-minute services for every legal decision you make. There are ways to avoid legal fees. Consider these options:

Go Boilerplate

If you've ever signed a renter's agreement for an apartment you were probably using a boilerplate contract. This is a template agreement already drawn up by a lawyer and is readily accepted by both sides. You might find that many of business contracts can use boilerplates that are available for free on many online legal resources sites. These contracts can include:

• Commercial building lease agreements
• Employee contracts
• Vendor agreements
• Non-disclosure agreements

Just because you're using a boilerplate contract doesn't mean you can't put in your own terms, dates and names. That's what these contracts were created for. Here's a dirty little secret: You know that expensive lawyer you hire to write up your contracts? They use the same boilerplates. You didn't think they wrote every word of a new contract did you?

Ask For a Fixed Fee

Much like the boilerplate contracts, there are also boilerplate services. Filing for a trademark or setting up a corporation are pretty much routine. The only changes that are made are the names in each of the contracts.

Does this mean you should be paying a lawyer by the hour to get those papers in order?

Not at all.

Ask around and see if you can find a lawyer to handle those kind of for a fixed fee. That means whether it takes them two or 20 hours it will only cost you one price

.

You could also offer stock options in exchange for legal services. The caution with that is giving away too much for the kind of "simple work" mentioned above. Your new investors might not be happy about that.

And, if you want to avoid hiring a lawyer for basic corporate services, consider using a document filing service (like CorporationCentre.ca!) to submit your paperwork at a much smaller fee than a lawyer may charge.

Part-Time Lawyer

You might find that after your initial start-up filings you don't need a lawyer all that much. However, you're now stuck paying a hefty monthly retainer to a law firm. Not a wise move.

Instead, look for a firm that can provide you with a part-time attorney. This is someone you can talk to once a week for a reduced fee. Save up your questions and make that weekly meeting count. You can also look into legal insurance. You pay a small premium in exchange for getting a lawyer only when you need them. That's a lot less than the big retainer fee.

If you should ever come across a complicated issue with taxes or find yourself being sued then you don't want to turn that into a DIY legal matter. Get a good lawyer on your side. For everything else, look for flexible options from your legal firm.

Tips for Small Business Owners and Startup Founders

Having a terrific idea for a business is only the beginning. Getting that idea from the "drawing board" to production is going to be a long and challenging journey.

The good news is that there are many resources and experienced folks standing by to help in your endeavor. The moment you embrace the simple fact that you’re not on your own, the better off you'll be. Here are some other helpful tips for small business owners and startup founders:

Bank Working Capital

You're going to need money for your startup. There's no way around that. Beyond lining up investors to back your business plan, you also should have some capital in the bank. This might not necessarily be for your business, but for your personal expenses. There will come a time in the initial phase of your start up when you're transitioning from a salaried position to entrepreneur. In other words, you're not going to have a steady paycheck, but you still need to pay the bills. A good starting point would be to have savings for at least four to six months of personal expenses. A decent size savings account will also let you float loans to your company to cover a wide range of expenses.

Start Small but Aim Big

Every great business owner has a story about humble beginnings. This is when a handful of employees worked together in "low rent" conditions to get things going. Although you know how big you'd like your business to become, it is not going to start out that way. Start small, working out of a space that won't cost you a lot of money. Your current home, apartment or parent's garage is as good a place as any. You also don't want to hire staff unless you've got a lot of work for them to do and all of that work should be generating income. The goal is to ramp up towards success.

Keep Records of Everything

No matter what, where or how you spend money for your business, there should be a receipt for that. You want to make sure you're keeping clean records of all of your expenditures and income. At the same time you also want to protect you personal assets. This is why it is important to incorporate your business and begin to run all your expenses through that entity. It's not a lot of money to set up a corporation and it will certainly pay for itself many times over.

Get a Plan of Action

You need a business plan. This can be a multi-page document or a graphic laden power point presentation. Either way it will become your road map towards success. That doesn't mean you have to strictly adhere to that business plan. You're going to make adjustments all along the way. However, with a well thought out business plan you'll be able to appreciate the trajectory of your business. That is also something your investors are going to embrace.

Some Startup Business Ideas For 2013

Where is the next great startup business idea coming from? It might already be out there waiting to be plucked off the internet and put into practical use. Always remember that in business there isn't really just "one thing."

Consider your own neighborhood. How many dry cleaners are there? How many nail salons? How many restaurants?

Businesses offering the same goods and services can coexist. What makes your business successful is how you innovate and market. Since more and more folks are turning to smartphones and tablets for daily use, you could find a sweet spot developing a product or website to fit the needs of all those potential users. If you're looking for an idea for a startup business consider these hot concepts:

Neighborhood Social Networks

Yes, everyone is on Facebook but that doesn't mean everyone is "connected" in real world terms. When it comes to social networking, staying local could be a big benefit. Developing a social hub for various communities could turn into a broader venture. Just keep it in the community.

Social Network Address Book

Speaking of social networks, there doesn't seem to be a decent address book that works across several platforms. Yes, every Smartphone has a version of an address book but supposed you want to organize all your online social contacts in separate categories? Where is the app for that?

The Next Great App

There is always room for a new great app. What about a digital business card or a digital customer loyalty card? If there was a way to scan those types of items and share them with other Smartphone users it could be a big plus to many businesses and reps.

A New Kind of Craigslist

So far, Craigslist has cornered the market when it comes to internet classifieds. Is there a better version? Perhaps something that isn't so cluttered? Maybe one that focuses more on trade than personals? Worth thinking about.

Group Shopping

Many fans of shopping like to do so with friends. What if you could go online shopping with your BFF? That could be a huge game changer for a smart ecommerce site.

Photo Sharing

There are many popular photo-sharing sites like Pinterest, Tumblr and Flickr. Is there room for more? When you think about the amount of pictures being shared today then the answer is "yes." The hook would be to come up with that tool or "cool factor" that the other sites are lacking.

If you've started up a new business this year, let us know. We'd be happy to share the good news! 

Crazy Business Ideas That Worked

There is no telling where the inspiration for the next great idea will come from. You could dream up a new invention or think about a perfect solution for a problem in your life. Wherever that idea comes from don't be discouraged if anyone thinks it’s crazy. All it takes is that one great crazy idea to launch a career and fill up a bank account.

Here are some examples of crazy ideas that turned into serious cash:

The Million-Dollar Homepage

How many times have you thought, "if only I had a nickel for every (fill in the blank)?" Alex Tew took that concept and turned it into an advertising bonanza. He set up a webpage which was a kind of virtual click-through billboard. There were 1,000,000 available pixels on the page that he was selling for $1 a pop. It took him just over a year to reach his target goal. The billboard is still up and drawing new visitors every day. Not bad for a crazy idea.

Doggles

If there is one thing folks love to do it is pamper their pets. When Roni Di Lullo noticed her dog squinting up at bright sunlight she thought he might benefit from the same item she used: sunglasses. All it took was a little product development experimentation and Doggles were born. So was another million-dollar business.

Pooperscooper

Speaking of dogs, there is always a daily cleanup that occurs when you've got a pup around the house. Well, it's supposed to be a daily cleanup. In some cases, folks let their dogs do their "business" in the backyard and hope that it will somehow disappear. It won't. That's good news for Matthew Osborn who created a company that offers full service dog poo removal services. That local homegrown business turned into a national franchise which is now the largest pet waste removal company in America.

Lasermonks

Throughout history, monks have been known for their studious nature. It seems as though every monastery has their own cottage industry used to raise money for the poor and for the upkeep of the brothers. Back in 2002, Father Bernard McCoy was shopping around for cheap printer ink and decided to make his own from recycled cartridges. Thus it was that Lasermonks was born. From first year earnings of $2,000 the company has gone on to make over $4 million annually. Not bad for some reused ink.

So what is your crazy idea? Maybe it's not that crazy after all.  

Lessons for the Entrepreneur

As the old adage goes, "Those who can, do; and those who can't, teach."

This isn't a slam against your professor but, when it comes to business, nothing beats real life experience. There is a lot you can learn by diving into an entrepreneurship that you could never get from a classroom. 

Consider these lessons:

You Are Your Schedule

Show of hands: who has ditched a college class? Everybody, right? It's hard to imagine getting through four years of business school without sleeping in at least once a semester. Out in the real world you won't have that luxury. You'll learn very fast that your work schedule is what will dictate your potential for success. This might mean taking a meeting on a Saturday morning or working into the wee hours to get a project done. You don't have a lot of options because running a business doesn't mean you can get a "do over" test or hand in a paper late.

Say Goodbye to Down Time

There's a reason why Spring Break is so vital to college students: It's an official break. A week without worrying about tests or papers or classes. In your business you can take a vacation, but chances are during that first year of the startup you'll be putting in some serious work hours and vacations will be on hold. This doesn't mean you'll be working around the clock (not all the time at least) but you'll come to value that time you can take off a lot more.

Keep Your Eyes on the Prize

A typical college semester could be filled with a variety of classes. Yes, they're all going for the same degree but you'll be multitasking up a storm as you juggle multiple classes, homework, projects and tests. For your business you'll benefit from those multitasking skills you developed but you'll also learn the value of laser-like focus. Always keep the big goal front and center and learn to delegate.

Go Beyond the Books

As a business major you'll be required to take some basic accounting courses. The key word here is "basic." In your business, you'll be getting a crash course in whole new level of accounting with regard to taxes, payroll, insurance and shelters not to mention maximizing profits and adjusting for losses. That's a lot of numbers to keep track of and no, you won't be graded on a curve.

Business Relationships Trump Frat Buddies

College is a time for fun. It's the first change students have to live on their own and make decisions. Usually that means a lot of parties. Once you've graduated, you'll need to start building business relationships. Some of your fellow classmates might be a benefit in terms of networking connections but it's vital to strike out on your own and create forge new friendships with people who can help your company.

If you're in college now, embrace the good times because it's an upwards climb from here on out! 

Investors Have Given You Money For Your Business. What's Next?

After working diligently on your business plan and targeting potential investors, you’ve managed to snag some much-needed capital.

Good work. Now what?

Essentially, you have to live up to the promise of your pitch and deliver the goods. How you involve your investors in the early phase of your startup will set the tone for the rest of your relationship.

The goal is to make sure you can remain on solid ground with the money people. This will help improve your relationships throughout the business community and open up the possibility to return to those investors for expansion down the road. Before you get there, consider these proactive steps for involving your investors:

Set a board meeting calendar. By setting a board-meeting calendar you're letting your investors know that you're serious about the business and about getting their input. You should actually set the schedule for the entire year. You might have to rearrange some future meetings but at least your calendar will be a start for this process.

Have an investor dinner. Before the first official board meeting, you might want to think about having an informal gathering over dinner for all of your investors and board members. This is a great opportunity for everyone to get to know each other. Then when you head into those board meetings you can dispense with the small talk and introductions and get right down to business.

Plan an offsite meeting. This should be a full-day affair. You can break up the day with some recreation like playing golf at a hotel but most of the time you'll be in conference to discuss all the matters pertaining to the company and the direction it is headed. You should save this marathon meeting for the third or fourth meeting of the year. During this meeting you can also have members of your staff come by to make reports or presentations about the growth of the company and problem areas to work through.

Schedule one-on-one meetings. Hopefully your board of investors will be frank and honest at all of the company meetings. However, there might be a huge benefit from maintaining these relationships outside of the boardroom. The occasional one-on-one lunch or dinner meeting is the perfect opportunity to keep those lines of communication open and uncover any "hidden agenda" issues.

Stay out in front of bad news. It's not all going to be "rainbows and unicorns." You'll have some dark days ahead. When trouble happens don't try to bury it in a company report. Get out in front of the bad news and let your investors know you're in top of things. No matter how bad it might be they would rather hear it from you then from Twitter!

Overall you want your investors to feel that are a vital part of your company's success. That's not a stretch. All you have to do is honor their commitment with honest communication. 

Success Is All About Attitude

Can the success of your business really come down to a matter of a positive attitude? According to many professionals the answer is an unequivocal yes!

Call it optimism. Call it enthusiasm. Call it "glass half-full."

Whatever you call it, having a positive attitude is also extremely infectious. This kind of attitude can have an impact on your customers and your staff. Who do you want to work with? Who do you want to do business with? How can you have a positive attitude? Consider these insights:

You Create Your Attitude

Believe it or not, the power to cultivate a positive attitude rests within you. No matter what might come your way, you have the opportunity to frame your reaction. Think about opening presents on your birthday. You could say, "That's not what I really wanted." Or "It's about time you got me a present." Or you could say, "I'm really touched that you thought about me." Here's a hint: the last option is framing that event with a positive attitude. The next time a crisis happens at work, no matter how big or small, stop before you react and figure out what would be the positive approach to that situation. By doing that you're taking charge of your attitude.

Focus on the Positive

What do you surround yourself with as you start your day? Is it the local news full of disasters? Is it websites with divisive commentary? Take a break from the negative and choose to focus on the positive. Even something as simple as a daily affirmation calendar can put you into a good mood. If all else fails, spend time watching cartoons with the kids. You can't really get angry if SpongeBob is starting your day.

Shut Down the Complainers

Do you know someone who can suck the energy out of a room with their negative attitude? Clearly, those folks need to read this blog post! Short of that, you might want to try and avoid those negative persons. At the very least you should only take them in small doses. As a manager is it your responsibility to stop that negativity before it can spread like a disease through the rest of your staff.

Choose The Right Words

What is your first response when someone asks, "How are you doing?" Is it, "I'm hanging in there" or a "meh?" That's not a positive response. Next time somebody asks them them, "Outstanding" and mean it! Yes, it can be as simple as flipping a switch. Change your attitude and watch your business change for the better. 

5 Steps to Hiring Inexperienced Candidates

There is a first time for everything. That includes hiring someone to do a job.

If you're lucky, you can find an employee who is well versed with whatever type of task you want them to perform. However, there is often the opportunity to hire an exceptional employee who doesn't have any experience related to your business.

But is it crazy to hire someone without experience?

You might discover that training a new employee from "the ground up" is the best way to get what you want out of that worker. In other words, they're not going to be approaching the job with any bad habits or preconceptions. They are a blank slate. And that can certainly work to your advantage.

Here are five steps to consider when hiring an employee without relevant experience:

Spell out what is expected.

Depending on the job, there might be a training manual or "to do list" approach to the job. This should spell out specifically what is required of that employee. If you need to, create a guide for an employee. It's always better to travel with a map as opposed to just a destination.

Enhance the skillsets.

There is a reason that you're considering hiring a person without experience. They've impressed you with their attitude, prior successes and possibly related skillsets. It has often been said that a good sales person can sell anything. Just because you're selling cars, but are hiring a top vacuum cleaner sales person, doesn't mean you won't come out on top. Play to that person's strengths and build on that.

Consider their complete resume.

Someone without a lot of experience on their resume could have other areas where they have excelled. These unique experiences can indicate how they'll perform on your team. For instance, a person who has spent a lot of time doing charity work could be a natural fit for customer service. Someone who was in the military will understand how to follow orders and have discipline. When it comes to resumes, go deep!

Put them to the test.

Captain Kirk was famous for reprogramming a "no-win" scenario test. He got a commendation for original thinking. You should try to find a way to put your prospective hire to the same kind of test. This doesn't mean building a starship simulator, but you can probably come up with a challenging test to see how they might problem solve. The best result would have them asking for help instead of trying to do something on their own and failing.

Put them on probation.

You're taking a risk by hiring a new employee without experience. They should know that up front. There is nothing wrong with putting that employee on a probationary period. Just don't make it a double-secret probation. They should know they are being watched and their job is on the line. 

Finding Suppliers in China

If you're making a product for sale, then the specific cost of manufacturing of that product will make all the difference to your bottom line. It's no secret that Chinese manufacturing can deliver a wide variety of products are very competitive rates.

If this is your first foray into the world of outsourcing manufacturing to China, you need a smart approach. Sourcing from China comes with its own set of challenges that need to be overcome. Here's how to not make it a problem.

Determine Your Needs

 

Sure, you know what you want to make but in China there are different approaches to each manufacturing contract. Basically there are big corporations that will take on the job or farm it out to a 3^rd party vendor. As a small business owner, you might want to seek out the smaller family owned business for the startup. This type of company will probably be in a better position to provide you with direct access and support. You will avoid the markup when a larger manufacturer subcontracts out your job.

Research All Angles

Before you book your first flight to China, you'll want to do a lot of research. Build up a database of potential manufacturers by searching trade directories, chamber of commerce listings in China, Export Development Corporations or business associations. This can happen when you research comparable products to yours online. You'll start seeing some of the same company names popping up. Clearly these are the dependable factories. They should be your first stop.

Pick Your Top 15 Suppliers

Once you've put a list together, start making calls or sending out emails to set up relationships. You'll want to find out all the costs associated in hiring this company from raw materials to transportation. Make a list of questions that you'll be asking of all of your suppliers and then you'll be able to narrow down the list to your top 15. These you might want to visit in person to make sure they can handle the job. It's going to take time to find the best fit for your company's needs but you're better off exhausting all the possibilities before firing up the assembly lines. Do not put your entire manufacturing assembly line on one company. Spread the work between two or three companies depending on your volume of work.

Get a Local Guide

If you are traveling to China you'll definitely want to find a local business representative to help show you around. Hopefully, this will be someone who comes highly recommended and who you've set up arrangements with before landing. The best guides are usually the government trade representatives between your country and China. You don't want to ask around at the airport for a guide!

Keeping Your Startup Passion Alive

Do you hate getting out of bed for work each day?

We've all been there.

But what if that job you're dreading is one of your own creation? You might have started your own business with plenty of passion but that doesn't mean that passion can't diminish especially when all the "headaches" of running a business rear up.

Here's how to continue to keep your passion alive for your startup:

Don't settle for failure.

Just because you've "lost that loving feeling" for your business doesn't mean you can't get it back. Failure is not an option. That should become your new mantra. Simply put, the work needs to go on because you've invested so much in building up your company already. If you're on your own, then take a day off doing something you love to reinvigorate yourself. If you've got a staff then it's even more important for you to "snap out of it!" Those folks are depending on your leadership. Don't let them or yourself down.

Ask for help.  

In the business world and in life we could all benefit from an objective perspective. A business coach or a mentor would be a sensible investment to help you get back on track and fire up your passion. This is someone who can hold you accountable with regard to your goals. They'll also be able to provide motivation and the necessary "kick in the pants" when needed.  Setting up a weekly phone call can get you back on track.

Reaffirm your goals.

Do you remember why you started your business in the first place? Was it to retire at the age of 40 with a million dollars in the bank? Was it to have a company you can share with your family? Was it simply to be your own boss? Whatever those initial reasons were for your startup you need to get back in touch with them. Maybe a properly placed photo to remind you of what you're fighting for will do the trick. Even the greatest ideas for a business will meet with obstacles. When you commit yourself to your goals then jumping over those obstacles shouldn't be a burden.

Reset your priorities.

It's amazing what a simple to-do list can do for resetting your priorities. Write out all the things that need to be accomplished around your business. Then set a specific deadline for the completion of those items. As you move down the list and accomplish the tasks, scratch them off the list and celebrate. This will help you focus on your business and, in a roundabout way, reignite your passion.  

4 Tips for Startup Founders

The best business advice often comes from those entrepreneurs who have "been there and done that." Here are 4 tips for startup founders from startup founders:

Don't rush your product to market.

"It’s natural to be in a hurry to get product out the door, but take a breath first and really gauge where you are. Slow down when it comes to key decisions, said Dan Belcher, co-founder of Boston-based Stackdriver. Sometimes doing things too early is just as bad than doing them too late.

Do all the jobs first.

Think of this as the "Undercover Boss" paradigm. On that popular reality show, a CEO puts on a disguise and goes down to join the workers to get their perspective on things. Perhaps you should give this a try. "Founders should do every role first before hiring someone to take it over. This helps me understand who I’m hiring, what they should be good at, what they should be doing and how to measure their success,” said David Mytton, founder of Server Density which is a London-based provider of server monitoring services.

Be smart with your hiring.

This is solid advice because hiring before there is a demand for your product is a good way to run through all your working capital. That doesn't mean you shouldn't always be on the prowl for new talent. “You should always be interviewing and always be hiring regardless of your headcount plan,” says Stackdriver co-founder Izzy Azeri. “It’s so hard to find good people and the founder is always the best recruiter.”

Brace yourself for failure.

This doesn't mean you should expect that your company is going to go under but there will be times when things aren't going to work out like that should. That applies to whether you're selling shoes or developing mobile phone apps. Dan Foody is the co-founder of Cloze. They have created an app merges a user’s mail and social media messages. "Apple restricts developers to at most 100 beta test devices for any app. In today’s world that’s not nearly a large enough audience to refine an app (especially a consumer-focused one),” Foody said. “You need hundreds to thousands of beta testers. How can you avoid this pitfall? Build a web app first so you can learn the hard lessons up front with a wide audience without being restricted by platform and store limitations.”