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. 

Co-working Spaces for the Self-employed

With a rising popularity in self-employment and freelancing, co-working spaces have become a popular phenomenon that has been embraced by those who work independently, but crave a sense of community in response to working in relative isolation.

Co-working spaces are essentially communal open-space offices and are an affordable solution to having a working environment outside of your home that is not a private office. They are popular among freelancers, entrepreneurs, start-ups and independent contractors.  A simple Google search will show that there are a wide range of co-working opportunities in most major cities in North America.

Besides being an affordable alternative to a private office, a co-working environment can provide many other advantages.

Escaping Isolation

Working in a home or private office can leave one craving face-to-face interaction from others during the day – especially those who aren’t clients! Self-employment can be isolating when your day to day activities are individual ventures. Co-working spaces provide the opportunity to work independently while being surrounded by others. Taking regular coffee breaks or having engaging in some water cooler gossip can help break up the day, create new friendships, and give you a chance to clear your mind from the daily grind of self-employment.

Creating a Community

Those who work in co-working spaces generally have the same values and influences, as they are usually made up of entrepreneurs and freelancers who are working hard to develop and build their business.  As the co-working environment is usually an open concept, it aids in developing relationships and finding inspiration from those around you. As friendships form, the community will naturally rally around each other and help each other out, building a mutual bonding through independent work that one can’t experience when working alone.

Networking

With a sense of community in the co-working space, networking opportunities will naturally follow. It’s great to find contacts that may be able to help you out in the future and for you to offer your services as well. Looking for a copywriter? Chances are someone in your co-working space has a recommendation. It’s much easier to go with a trusted referral rather than searching online and hoping for the best. Surrounding yourself with like-minded individuals can help your business grow and can build some strong and lasting relationships.  

Top 10 Tech Investors To Follow On Twitter

Who are you following in Twitter? Once you collect you favorite celebrities, pundits and comedians, it might be time to focus on your business. 

There is a lot to learn from Twitter even in 140 characters. 

Here are the top 10 tech investors you should be following on Twitter.

Ashton Kutcher @aplusk

He's not just a TV star and master of the Punk'd prank, he's also a serious tech investor. As an "Angel Investor" Ashton will pick and choose who he wants to sink money into. He currently has over 14 million followers. It might be hard to get his attention in that crowd but you can certainly keep track of what he's up to.

Richard Branson @richardbranson

As founder of Virgin Airlines, Richard has redefined first class air travel. Thanks to his success he is open to new ventures through his Virgin Investments. He is the very definition of  a risk-taking entrepreneur.

Al Gore @algore

Got a new tech idea that is "green?" You might be able to rope in former Vice President Al Gore who has made a second career in promoting eco-friendly industries. His firm is Generation Investment Management and if you have an idea that is zero carbon footprint rated send him a tweet.

Mark Cuban @mcuban

Each week on "Shark Tank", Mark Cuban shows what an angel investor is all about. Folks with business ideas come to him, pitch their ideas and try to convince him to invest in their companies.  There have been many success stories to come out of the "tank" but that's not the only place he looks for possible investments.

Fred Wilson @fredwilson

His company, Union Square Ventures, is described as a "early stage venture capital firm." This means Fred likes to get in on the ground floor. IT is their primary focus and in the pasts 17 years Union Square Ventures has helped over 40 companies get up and running.

Om Malik @om

Om is a general partner at True Ventures, a Silicon Valley-based venture capital firm that has around $600 million in funds to play around with. According to Crunch Base, the firm "..maintains a strong founder community and offers innovative educational opportunities to its portfolio, helping entrepreneurs achieve higher levels of success and impact."

Chris Sacca  @sacca

His company, Lowercase Capital, not only offers funds for start-ups and late-stage companies but they also pride themselves on their advisory role. Chris is not someone who is just going to write a check and walk away.

Kevin Rose @kevinrose

Google isn't just a search engine. They've also got money to invest. Among the type of start-ups that Google Ventures invests in are Internet (obviously), software, hardware, clean-tech, bio-tech and health care. Their goal is to invest at least $100 million a year. Not too shabby.

Evan Williams @ev

The Obvious Corporation that Evan is a part of was founded in 2006. Since then it has dedicated itself in helping companies create new cutting edge technologies "which have the power to affect individuals, organizations and society." Since Obvious was behind the creation of Twitter, it stands to reason you should be following Evan.

Guy Kawasaki @GuyKawasaki

When you consider that Apple was started in a garage, it makes sense for this venture capital firm to be so named. Since setting up shop in 2005, Guy has lead his company through many important vestments covering a wide range of tech start-ups. 

Lessons Learned From Pitching Venture Capitalists

 

Raising money is as much a part of business as the goal of making money. As the old adage goes, “You’ve got to spend money to make money.” There’s an even older adage which posits, “Never use your own money.” One of the most popular sources of funds – especially for startups - is venture capitalists (VC), those who provide money in exchange for large ownership stakes.
 

Due to their popularity, VCs are extremely busy and hear thousands of pitches in a month. Out of that many, they invest in only in handful, hoping for a very lucrative exit in a short amount of time. To pitch a VC for financing requires the founders of a startup to not only be well versed in their own companies, but also do extremely detailed research on their potential investors. Not doing your research will make the difference in getting funded millions of dollars or being delegated to the black hole of has-beens. The following tips are some valuable lessons to learn about pitching VC’s and getting your startup funded.  

            Do Your Homework

Every venture capitalist you’ll be pitching to has their own distinct personality. You need to get as much background information on that potential investor as possible. Don’t just Google them but ask around – especially other investors. Do they have a short attention span? Would they prefer to see the bottom line numbers first and then the “sizzle?” What other successful businesses have they invested in? Why did they make those investments? In many ways, you’ll be giving the same basic pitch to every venture capitalist but if you can adjust to their investment criterias and individual personalities you’ll be ahead of the game.

Be Smart With Your PowerPoint

One of the most popular (and easy to use) skills for any business owner to have is the use of the PowerPoint presentation. This is not something you should be slapping together the night before the big pitch. Instead, it’s something you should be developing since the inception of your business plan. An effective PowerPoint presentation can’t stand alone. You’ll still need to “narrate” to fill in the gaps from your bullet points but you shouldn’t become top heavy with data. If you can make your point with a strong visual then go for it. Before building your PowerPoint, go online and view other presentations. Take note of what you like and “borrow” the idea.

Have a Thick Skin

Every entrepreneur walks into a VC pitch with dreams of walking back out with a check. That’s not going to happen. What will happen is you’ll be grilled aboutyour business. This is a good thing. The more you can engage that investor the better off you’ll be. Make sure you listen clearly to any question and think through the answer before blurting out something you think they want to hear. You’re not going to get the same reaction twice. Don’t let that throw you. Remain confident in your proposal and if they don’t bite move on to the next investor.

 Pitch the Facts

It’s great that you have conviction about your business idea but you can’t let that passion become pie-in-the-sky thinking. Over-valuing your company is the quickest way to turn off an investor. If you’ve got grand assumptions to make about business projections you better back it up with more than sweeping generalities. Just because the dog food industry is a multi-billion dollar business doesn’t mean your brand of dog food is guaranteed success. Sell your passion but back it up with the facts.

 

Advantages of Co-working Space for Startups

Where should you develop your startup company? Should it be in a traditional office? In a loft or garage? Or at home? The choices are numerous.

We all require the social interactions and energy that an office can bring us, however many start-ups simply don't have the budget to rent out office space. But there is another option.

With an eye on their wallets, many startups are turning to co-working spaces to develop their companies.  These offices allow freelance contractors, micro-businesses and startups to share an office, with fully functioning conference rooms, photocopiers, and most importantly access to other entrepreneurs and peers.

For contractors and startups, co-working can provide a great opportunity to work with peers, develop a support network, have office space to show off during sales meetings, and all without the cost of a more expensive lease.

Here are some advantages to a co-working space for your startup:

1. Saving your money.

It can be costly to rent an office for a new startup – especially if you’re bootstrapping. You not only have to account for the rent but all the utilities and extras that you will need as well.  This can take a large bite out of your company’s budget. 

 Co-working office spaces reduce your need to sign an expensive lease or buy office equipment, such as photocopiers and fax machines, as they are shared at a fraction of the price.  Rent is cheaper too, as you will be sharing the cost between all of your co-workers.

 2. Networking, collaborating, and making friends.

The most praised benefit of a co-working space is the ability to network and build strong relationships with the people you work alongside. You will learn about your co-workers’ background and skills, sharing business experiences and even new ideas. 

Working with other entrepreneurs and freelancers will put you in proximity with individuals who could help your business. You could meet new clients, prospective investors, or you could even meet your next partner.  

3. Creative collaboration and problem solving.

You will be working side-by-side with a broad group of entrepreneurs in the office. If you ever have a challenging problem that you can’t solve, you can easily have a conversation with someone who may have faced the same issue.

You can discuss your ideas with others who have different skillsets and possibly can provide you with an alternative view. The combination of different experiences, approaches and personalities often provide new ideas and solutions that you simply couldn't have come up with on your own.   

How To Find Your Next Great Business Idea

One of the biggest struggles that potential entrepreneurs face is trying to understand what kind of business that they should start. For many, the process in finding an idea can be long and challenging, even harder than writing a business plan! Deciding on what opportunity to pursue is dependent on variables such as:

·     If there is a “pain” that you can solve and if people are willing to pay for the solution;

·         How much money you have;

·         Whether you want to sell products or be a service-oriented business;

·         Whether you want to build a lifestyle small business or a million-dollar conglomerate.

 Here are some tips for a fast and successful search in identifying different business opportunities.

Find a solution

By keeping your eyes (and ears!) open, you will stumble upon opportunities to solve problems that may lead you to the perfect idea. Ask yourself - what pains or frustrations do people experience in their daily lives? Are there any challenges that people are complaining about? If there are, work on finding the solution as every problem is an opportunity for you to solve.

Carry a small notebook with you and note down anything you hear or see in regards to people’s frustrations. When you have filled out a page or two, try to find a solution to them. Are there companies that are solving those needs well? If not, how can you do it? What would be the ideal situation in solving that problem? And finally, can it be profitable?

Remember, if the “pain” is perceived as big and causes a lot of time and money to be wasted, people are willing to pay more to get it solved quickly.

Use your passion and knowledge

Another area you can draw ideas from is within yourself. What are your strengths, skills, knowledge and experience that you have which can be of benefit to others? What are the things that you naturally share with your friends that they turn to you for? Is there a challenge that you’ve successfully overcome?

Take for example, if you’ve successfully lost weight using natural methods after trying different kinds of therapies and diets, do you think millions of people would benefit from your experience? Of course! We often take what we know for granted and don’t realize how valuable our knowledge can be if shared with others. Don’t forget there are so many people you can help with your knowledge.

Set yourself apart! How can you do things differently?

There has always been a misconception that to be an entrepreneur, you must start a business that is very innovative and not found elsewhere. Business ideas need not to be very different or entirely unique to be successful. Innovation in a new business can be creating a new technique, process or even a brand.  You can target a new market or try a new marketing channel that may give you an edge over your competitors.

Analyze various companies that are in your chosen industry. Do their brands look and feel the same? Take a look at how good they are at delivering value to their customers and see if you can provide it more efficiently or better. 

Take advantage of changing trends

Pay attention to any changes that you notice in your industry or target markets and try to spot trends you can turn into new businesses. The first companies to identify an emerging trend and execute quickly often become the market leader in their industry.    

A great example is Facebook. Although they weren’t the first on the market, they were innovative and took advantage of trends to make it easy for people to communicate with each other. Facebook grew from a small site in Harvard to being the most visited website after Google. Because of Facebook, social media has become a game changer for a lot of companies and startups have sprouted that specifically target the new industry. By keeping your finger on the pulse of your target market, you will be able to foresee trends and take advantage of them long before they appear.

Regardless of what your goals are for your business, keep in mind that even if you have a million-dollar idea, it means nothing without proper execution. Create a business plan and test your idea to see how it stands in the market.  So, go discover lucrative business idea and start working on it – it’s a package and shouldn’t be sold separately.

Are Trade Shows Necessary for Your Small Business?

A successful business can’t form in a vacuum.

In other words, for a business to thrive and survive it has to get out into the world and “strut its stuff.” Nowhere is this more important than with startups and small businesses.

However, tough economic times have many businesses reviewing how their marketing dollars are being spent. As business owners seek more ways to increase ROI, activities that generate a higher return are kept whereas ones that don’t provide any traction are on the chopping block.

A trade show is considered to be an expensive necessity for many industries, but for a small business like yours, is it worth it?

Regardless of the industry you’re in, it’s a pretty safe bet there will be some kind of trade show occurring within the next several months. Whether you’re going as an observer or as an active participant with a booth, your trade show experience can become a major boost for your business.

Here are some of the focused benefits you’ll get from participating in a trade show.

Finding leads

You’ve got a product to sell. You know who your end customer should be. However, there are some very important middle men you’ll need to find before your product ends up with all those valuable customers. These would be the distributors and other partners that could benefit from having your product as part of their catalog.

Suppose you’ve come up with the greatest flavour of popcorn. Wouldn’t you want to go to the trade show where all the movie theatre executives will be hanging out?

A trade show is the most efficient method where you’ll find your leads all in one place.

The freebies

It’s one thing to describe your product or service on your website and quite another to be able to provide an actual demonstration or sample. Participating in a trade show lets you put your product into the hands of decision makers who can be placing orders the next day.

Yes, it’s a major investment to give away samples but it’s an investment that can pay back in very positive ways.

Build your brand

A business is built on its brand.

Just like the adage – if a tree falls in the forest, but, if no one is there to hear it, does it make a sound?

If no one is aware of your company then it can’t gain a foothold. A trade show will be plastered with banners, bags, T-shirts and other give-aways that have all kinds of company brands imprinted on them. Get into that game and you’ll be able to spread your name in front of the people that matter.  

Scope out your competitors

You’ve got competition. Yes, you like to think that your product is truly unique and the only one needed by the consumer.

The harsh truth is you will always have competitors. Guess where they’ll be?

At a trade show.

This is a perfect opportunity for you to check out the competition. You’re not spying as much as seeing what they’re offering and how your product is different. Who knows? Seeing what the competition is up to might inspire you to make some beneficial changes to your business.

The press

Trade shows are covered by the media. Depending on the show and industry, that media could truly be global. This is a wonderful chance for you to get some very positive exposure. Seek out the media reps and offer them a demonstration/sample.

Don’t wait for them to come to you!

15 Great Guerilla Marketing Ideas for Startups

The term ‘guerilla filmmaking’ refers to creating a film or video with the barest of resources. That same principle applies to guerilla marketing. This is where a small business can latch onto a simple idea to get the word out about their goods or services. Startups benefit the most from a positive guerilla marketing campaign because of their potential to generate a “big splash” without huge marketing dollars. Here are 15 great guerilla marketing ideas for startups:

1) Put Themes to Work: Anything from special sales to in-store displays can attract more attention when you apply a theme to the event. While the seasons and holidays are good starting point, don’t be afraid to think outside of the box like a “Christmas in July Sale.”

2) Reward Loyal Customers: Handing out a discount coupon to loyal customers will not only generate more of their business but will help get the word out to other potential customers.

3) Start a Blog with Unique Content: If you’re in business, you need a website and that website has to be refreshed with great content. Start a blog and give visitors something new to read or comment on every day.

4) Go with a Viral Video: If you can find a way to get the word out about your product with a video that can go viral you’ll be in a strong position to capitalize on that. Try hiring a young team of college film students and make it funny.

5) Pass out Swag: Sure you can print your company logo on a pen and pass those out but that’s also a bit of a cliché. Today, you can print your logo on just about anything. What can your customers really benefit from? Cup cozies? Cupcakes? Remember you want to create a buzz.

6) Build up your Twitter Network: Encourage customers to follow your company on twitter then use that network to advertise special sales or deals.

7) Switch out your Phone Message: Forget the boring, “We’re not here right now”, swap it out for something fun like, “We’re unpacking product for our next sale.” Make it personal.

8) Ask for Testimonials: If you’ve got happy customers ask them to share their experiences on your website or Facebook page (yes, get one of those too!). New customers like reading positive reviews.

9) Improve Customer Relations: Offer your employees incentives for the most positive customer reviews. When you create a great experience for customers they will keep coming back.

10) Sponsor an Amateur Sports Team: You can’t ask for better community relations than sponsoring a local sports team or two. Just make sure you get your company logo on all the team uniforms.

11) Support a Local Cause: Another way to make a positive impact in the community is to sponsor a local cause. Keep your giving in the neighborhood where you’re customers will see the efforts directly.

12) Use Texts: As with other forms of social media networking, text messages are a great way to remind your customers of special sales or a pick up appointment.

13) Flyers: A slick looking flyer is a great way to generate business. Make sure you have a coupon on the flyer to track their effectiveness and give the person a reason to hold onto that.

14) Make it Personal: If you can find a way to tell your family business story through a local newspaper profile or video then you’ll reach a lot more potential customers by relating to their own struggles.

15) Create a Publicity Stunt: Don’t go too overboard, but even having someone dress up in a chicken outfit to pass out coupons in front of your store can draw attention. It would be especially funny if your store had nothing to do with chickens!