Are you Ready to Quit Your Job and Start a Company?

So, you’ve got a great idea for a business that you’re eager to pull the trigger on. One potential obstacle: you’re working in a job now and unless you quit you can’t get your start-up going. What do you need to do before you quit your job and start a company? Think about these issues before taking the plunge:

1.      Money Coming in Versus Money Going Out

Only you know what you need to survive on in terms of income. Many new business owners often forgo a salary until their new venture is on stable footing. Can you survive without a steady paycheck? Don’t imagine what you’ll be making; be realistic about what you’re making now and what you can anticipate making two weeks after you’ve quit. The harsh reality is you’re probably going to take a salary hit in terms of reduced weekly take home pay. Can you survive with that?

2.      Business Plan Projections

What does your business plan say about generating income? If you don’t have a business plan, then you’re really not ready to quit your job! A properly prepared business plan will become your road map for success. If you have used realistic projections then you should be able to gauge when revenue will start rolling in. More importantly you should have a contingency plan ready to activate if those projections don’t hold up.

3.      Emergency Capital

Your contingency plan should include a kind of “rainy day fund.” This should be additional operating expenses you might require to keep your business running should you experience a downturn in the first couple of weeks or months. Quick example: You’re starting a business selling beach umbrellas but on opening day it begins to rain for two weeks straight. Will you have the money to pay your bills while you wait for the sun to shine?

4.      Family Support

You can never underestimate the need for family support when you open up a new business. You’re going to be asking for a lot of sacrifices from your family as you devote long hours to make sure your business is running properly. If they’re not as committed as you are to this start up then you’re going to have added stress which isn’t going to do anybody any good. This kind of support is critical when you are making the transition from one job to another. They last thing you want to ever say is, “Surprise: I quit my job!” Major decisions like that should be made in partnership with your family.

Measuring Your Social Media Campaign Success

Determining the success of a social media campaign comes down to an issue of metrics. The following are the top three metrics you should be looking at when gauging the success of your social media strategy.

Active participation: A quick snapshot of any social media campaign is to look at the number of users who are accessing your social media profiles. With Facebook, it would be the number of “likes.” With Twitter, it would be the number of retweets. However, these numbers aren’t the only ones you should be studying. Go deeper. The key to social media is engagement. For instance, Facebook provides its page administrators with a detailed analysis of  the percentage of comments generated and views. The other networks have metrics such as page views and mentions that can also indicate the kind of volume your company is attracting.  

Your bounce rate. Are your visitors arriving at your site from your social media profiles but leaving immediately? Take a look at the time spent on your website from your different traffic sources. If you find that visitors are spending less than a minute on your website, then maybe your landing page needs better copy. Or maybe you’re attracting the wrong audience.

Conversions: You want social media campaigns to convert, either into subscriptions, sales or any other items that you’re offering as part of your sales funnel.  If your sales increase after launching a successful social media campaign, then it worked. However, those numbers can also be used to determine the return on investment when it comes to expanding your reach. For instance, if you have a 5% increase in sales with a 10% increase in site traffic then it follows the more traffic, the more sales.

Not all of the metrics are simple to track and may require some advanced tools. It’s very important to take the time to have the right measurement and analytical tools in place before you start a social media campaign. Without the right tools, you won’t be able to determine if your campaigns were successful or an abysmal failure.

How do you measure your business' social media success?

Is Crowdfunding the Best Strategy for Your Startup?

In the last few months, there has been a new trend in startup investing that has gotten the attention of the VC world.  Taken from the idea of crowdsourcing - crowdfunding allows the smaller investor to get into investing into a potential startup by mitigating the risk with a group of people.

As Blake Coler-Dark mentions, crowdfunding is.. “The ability of many individuals to fund a specific project or individual.”

This is what makes crowdfunding so appealing to many people - it gives people the opportunity to fund a project that they really believe in, with minimal risk. This engages a much wider group of people, who want to be in the forefront of great ideas or projects but may only have $20 to contribute. Crowdfunding lets everyone get in on the fun of investing in a new project.

One of the more popular crowdfunding sites is Kickstarter. Kickstarter’s funding process is simple. You’ll be given an opportunity to pitch your business to the Kickstarter community and if the crowd likes what they see, they’ll start providing the funds.

Don’t get this wrong. This isn’t free money; these are considered investors according tax law who expect to be paid back. But it’s a good way to get capital fast, especially for startups who have not had success in the traditional financing route with bankers.

How is this a good strategy for your startup? Consider these potential benefits of crowdfunding:

You’ll Get Instant Validation of Your Business Idea

Setting your business up for crowdfunding investment means you’ve really got to put yourself out there. Think of this as a kind of audition for your company. If you’ve got a great idea whether that’s for a restaurant, a dog grooming business or cleaning service you’ll know right away if yours is a good idea for this investment community. If no one bites, it might be time to rethink your business idea.

You’ll Sharpen Your Marketing Strategy

Many crowdfunding sites allow you to post videos or photos as part of your business pitch. Just like you’ll be instantly told whether your overall idea works you’ll also have an instant response to your marketing campaign. Yes, your pitch isn’t the same thing as a television commercial but you’re still tossing out what you think is the best approach to selling your product. The amount of money you receive will tell you if your pitch worked or not.

You’ll Get Help

By tapping into crowdfunding you are basically taking on many new business “partners.” This doesn’t mean that all the investors are going to be chiming in with how you should be running your company but there could be a vast amount of knowledge that you can tap into besides the investment.

For instance, a restaurant owner who is looking to expand their business might find a former restaurant owner among the crowd who can offer sage advice. There could also be a contractor which might offer a good deal on the work. The bottom line is that you just don’t know who might be in your crowd that will be a help for your business.

You’ll Get Better Organized

Anytime you seek out investors for a business you have to be organized. Investors want to know their money will be put to good use. This means providing a business plan and opening up your books for inspection. If you’re not organized then you’re not going to attract any type of investor. Knowing you’re going up on “stage” will get you organized rather quickly.

How's Your Elevator Pitch?

Wouldn’t it be great if we could conduct all of our business in the time it takes to ride in an elevator from the top floor to the parking garage? Imagine how quicker decisions would be made.

Actually, that’s exactly the approach you should take when developing a pitch about your company to potential investors. Can you communicate what your company does in 60 seconds or less?

Here are some tips to help you develop a stronger “elevator pitch” that can help with your small business fundraising plans.

1)      Watch the Clock: Any pitch you make for your business should be concise and impactful. The goal would be to get the perfect description of your company, its benefits and future plans all down to a 30 to 60 second pitch. Remember the goal is to interest the potential investor about your company in 60 seconds. All you want is to hear are those three magic words: “Tell me more.”

2)      Offer a Solution: Your business should be built upon the premise of solving a problem. Whether selling a cleaning product or an accounting software program, you have identified a problem and most importantly you’ve created a viable solution to that problem. That’s what should be in your pitch: What is missing in the marketplace and how your business can fix that.

3)      Stay Genuine or Keep it Simple: By the time you get a face to face meeting with an investor they’ve heard plenty of pitches. This means they’ve heard all the “business speak.” You’re not going to impress anyone with buzz words. Tell the story of your company and its successes in plain English. You’ll get a lot further that way.

4)      Know Your Investor: While it is true that you never know who you might end up in an elevator with, chances are you’ll know who you’re pitching your business to. Do your homework so that you understand just who this investor is and what they are looking for. You might have to adjust your pitch to fit an investor but that shouldn’t be a problem once you’ve worked it all out in advance.

5)      Speak From the Heart: Yes, the bottom line is crucial but so is passion. An investor wants to know that you’re going to be working extremely hard with their money. Don’t be afraid to show them your passion and commitment; just don’t take it overboard.

6)      Have a Call To Action: If you sell the “idea” of your business then your investor will want to know what’s in it for them. Every pitch should end with a call to action. Even something as simple as “Can I send you a business plan?” should be followed up instantly with “And when would be the best time to reconnect?” Unless you get turned down in the room, you’ve got a door open.

It will be up to you if you can walk through or not!

4 Mistakes That New Bloggers Make When Starting a Blog

With the changes that Google has recently implemented to their search algorithm, content marketing has become the newest buzz word. Instead of driving traffic using Search Engine Optimization (SEO) tactics, websites that post a lot of great content on their website are becoming more successful in getting higher rankings.  Having a blog on your website has become one of the best tactics any marketer can use to stand out from the crowd and also attract the attention of search engines.

 Much like a Twitter or Facebook account, a blog is another way to reach out to a vast global audience. Blogs can also lend great support for a business not only to direct new customers to a web store but also provide great content to keep loyal customers coming back for more.

However, just because it is easy to set up a blog doesn’t mean every blog will be a success. Here are some common mistakes that new bloggers make and you should avoid:

Copying Content

There is an abundance of resources available all across the internet to support your blog but that doesn’t mean you should just be cutting and pasting a bunch of articles. You should always strive to have original content.

That doesn’t mean you can’t be inspired by an article or video to write a post. In fact, you can even use that post as link on your site. Many search engines want to provide their users with quality content, and they check if the information that you provide isn’t a duplicate from another site. If you’re running a business blog and don’t fancy yourself  good at writing, there are plenty of talented writers who can help create 100% original content for your blog.

Diving In Without Research

To get the most out of a blog you need to do a little research. From a technical standpoint you could literally start a blog within seconds by registering a name on one of the easy blog sites like Wordpress or BlogSpot. Then what?   Find out how a blog works in terms of links, pings, tools and how to drive traffic. You should also be looking for the various blog networks that you can plug your blog into. This will help you spread the good news of your blogging efforts.

Cluttered Layout

A blog is not a scrapbook. Yet, some new bloggers try to crowd as much of the “whiz bang” features onto their blog as possible. Take it slow. Just as you should be researching where your blog should live, you should also research the various templates you have at your disposal for layout options.

Start with what appeals to you. Is it easy to find what you’re looking for on a site? Can you quickly access archive material? Is the font pleasing to view? What’s great about blogs is that the layout designer will also get credit. Look for that credit at the bottom of your favorite blog and use that for a reference for your own blog.

Boring Headlines

A blog is the sum of all its posts. Those posts begin with a strong headline. Consider every time you pick up a magazine or newspaper: Isn’t it the headline which first grabs your attention? That’s what you should aim for with your own blog posts. Asking questions is always a good way to pull a reader into a blog. Keep it simple but make it original.

Are Canadian Courts Adapting with New Technologies?

The cornerstone of any free society is a thriving court system which takes the approach to justice very seriously. For a court system to truly serve its constituents it has to keep up with the technology and the Canadian legal system is no exception.

Fortunately, the modern technological advances that have been woven into the Canadian courts have proven to not only be cost effective but also to serve the greater good.

I see you!

There is a practical aspect of adapting technology to court use and that has to do with geography. Beyond our vibrant urban cities, Canada is a vast land of abundant resources and environments. The current population stands at 30 million + but we are scattered all across the Canadian landscape. As such, it’s not uncommon for a judge to be issuing rulings 1,500 miles from the main courthouse. This is where video conferencing has made a huge difference in terms of expediting court cases.

With video conferencing, a judge can review, cross examine and make a ruling on an applicant who might be several miles away. By adapting video conferencing there is also a great reduction in the need for prisoner escort costs. In some cases, a video conference is a benefit when a hardened criminal can remain incarcerated without the chance of getting contraband passed to them outside the confines of the jail. This is definitely a case where swift justice can prevail.

Shuffling papers…

Another positive use of technology is with case management, especially the large amounts of paperwork to manage. New software and systems have been created that allow documents to be created, edited and stored virtually on secure servers. It allows court clerks instant access to case files and removes redundant data entry.

As with the video conferencing, upgrading to a case-management system for certain court documents is a cost saver not only on paper but also physical storage space. The caution is to insure that these documents are secure. Safeguards need to be put into place to make sure only designated court personnel would have access to these types of records. By the same token, these files have to be properly updated to insure that an innocent party has their record expunged.

Efficiency is the key

During the actual trial, technology can play a role when it comes to evidence presentation. A power point presentation is easy to compile and understand. It’s also helpful when it comes to reviewing that evidence if it is kept on a single file as opposed to scattered over dozens of charts and placards. Many courts have upgraded old transcript recording to new digital recording methods. Once again technology proves to streamline a process while reducing costs.

Clearly, the Canadian courts are putting technology to work. The question then becomes how dominant will that technology become and will there be safeguards to protect privacy?  Ironically, the answer to that will be decided by the courts.

5 Entrepreneur Blogs You Should Follow

Becoming an entrepreneur means you are entering into a new club of like-minded business professionals all with a common goal in mind - success. Although competition might be fierce in some circles, overall the majority of working entrepreneurs are happy to share their knowledge. Here are the top five entrepreneur blogs based on survey conducted by the Wall Street Journal.

Get Elastic: This is a blog dedicated to all things e-commerce. Started by Elastic Path Software, a technology company that provides online brands with ecommerce software solutions, the blog was created to showcase their expertise. However, you won’t see Elastic Path pushing their products in the blog. Any start up business can benefit from the vast amount of content detailing aspects of digital commerce, social media, web design and conversion optimization. If you’re unfamiliar with any of those categories, you’ll quickly become educated on Get Elastic.  Most interesting article : 9 freemium mistakes to avoid.

Seth Godin’s Blog:  Don’t be dismayed by the simple title - this blog is all substance. Seth was the founder of Yoyodyne which was an interactive direct-marketing company that Yahoo scooped up back in 1998. Seth has been in the entrepreneurial business ever since as a bestselling author and insightful speaker. With 183,000 Twitter followers who read his daily tweets, he is considered one of the most innovative minds in marketing. Although his blog posts aren’t long, they are poignant and have great insights into the world of consumer marketing. One of our favorite blog post is Understanding Stuck. Among some of this book titles are “Meatball Sundae: Is Your Marketing Out of Sync,” “Small is the New Big,” and “Purple Cow”.

WorkHappy.net: In the dynamic world of online business, it’s hard for a startup business to stay ahead of the curve. Thankfully, WorkHappy.net is standing by to provide readers with all the valuable tools any entrepreneur will need to help make their business a success. The title of this blog says it all - Killer resources for entrepreneurs. The founder, Carson McComas, has been involved in the online marketing world since 1998, having started and marketed various websites and he shares his expertise of how you can make an online business successful.  Most interesting article that we like: Bootstrappers, this is the golden age of the internet frankenstartup.  Clearly, there is a lot to learn from blog writer Carson McComas.

Drew’s Marketing Minute: If the success of a business is built on a strong marketing campaign then you could greatly benefit from following Drew’s Marketing Minute. Drew McLellan has 25 plus years as marketing veteran and as his bio states, “…he lives for creating aha moments for his clients, clients’ customers, peers and audiences across the land.” It’s worth checking in with a blog like this at least once a day to catch up on the latest marketing trends and to become inspired. A blog post that we like: What you can learn from a small town.

Blog Maverick: It’s rare to get access to a successful entrepreneur because they are so busy with their next venture. However, it’s not the case with Mark Cuban – one of the most outspoken entrepreneurs in the US. Mark started from extremely humble beginnings and has grown an empire that includes a NBA basketball team, entertainment companies and business investments through the popular TV series Shark Tank.  With every post on Mark’s blog, readers are encouraged to join in on the conversation.  Most interesting post: Facebook IPO , post mortem killer but not for the reasons you think  

Facebook's IPO Lawsuit: What Went Wrong?

In many ways, the Facebook IPO can be looked at as the perfect storm of how not to launch a public company. Leading up to the stock sale, media outlets were breathlessly hyping how much money founder Mark Zuckerberg and his team would be making. Nearly every news program was offering tips on how the small investor would have to wait in line to buy their handful of shares and be a part of this “history-changing IPO.”

Then reality hit and Facebook fizzled. What went wrong?

Right out of the gate there were problems. The U.S. stock market rings its opening bell at 9:30 a.m. The IPOs usually start trading about an hour later. However, Nasdaq informed everyone that Facebook trading wouldn’t start until 11:00 a.m. It actually didn’t start until 11:30.

In that first wave, close to 80 million shares were being bought and sold in a matter of seconds. And in that same blink of an eye, traders were complaining that their orders weren’t being properly processed. In some cases, they were getting shares at a higher price.

The NASDAQ would blame all of those errors on a technical glitch but it left a bitter taste for most traders. But even all that sloppiness isn’t why some newly-minted Facebook shareholders are suing the social media giant. They claim the fix was in.

As reported by Reuters, the lead underwriter for the IPO, Morgan Stanley, was provided with some pertinent information regarding the true nature of Facebook’s financials. Namely, they weren’t so hot. Coming upon the heels of GM backing out of a $10 million Facebook advertising campaign, this report apparently let the big players in on a dirty little secret - when it comes to generating dividends base on profits Facebook might just turn out the be the Emperor with no clothes. Suddenly that $100 billion valuation wasn’t looking so accurate.

Reuters went on to report that a few hours after Morgan Stanley got the news it was apparently shared with Goldman Sachs, JP Morgan and Bank of America. They all reduced their earnings outlook. When those numbers were publicized, the stock price took a hit and kept on sinking. The disgruntled shareholders claim this was a classic case of insider trading and they were the ones left holding onto a stock that dropped like a brick.

Naturally, the big brokers claim they are innocent of any wrongdoing. Are they right? At what point does it become insider trading?

 Were the people jumping on the Facebook bandwagon misinformed intentionally or did they merely buy into the hype only to be smacked by reality? Obviously, this will be an issue addressed by the courts. Meanwhile, the stock is still trading. Zuckerberg still became a billionaire (on paper), got married and went on a honeymoon.

And Facebook still has millions and millions of users. In the grand scheme of things, not much has really changed for those users.

Everyone is just waiting for the next move.

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!

Closing the Sale - Sales Tips for Small Businesses

It would be nice if your business could always “corner the market” on whatever product or service you are providing. Unfortunately, the very nature of business dictates that you’re going to have competition. Instead of taking a passive approach to your business, you need to be proactive and make sure you and your sales force are an effective team. Even a small business can benefit from a smart sales strategy. One popular sales adage is the ABCs of selling: Always Be Closing. That’s a nice sentiment but it will take some work to get there. Here are a few helpful hints that can help your small business close the sale.

Avoid the Hard Sell

Despite what you might think about being an aggressive sales agent, that person on the other end of the line doesn’t really appreciate the hard sell. Just tell it like it is: let your potential client know what you’re offering in simple terms and how it can ultimately help their business. Go for the pleasant conversation versus the unrelenting pitch.

Keep Your Ears Open

You might have perfected your pitch and could even be reading from a script of helpful talking points (not a bad idea) but you also have to be fully engaged in the sales call so that you can recognize when your customer might be on the verge of closing. This can happen if they start asking questions about things like delivery time or shipping costs. Even something as simple as positive affirmation from them about what you’re saying can be a good indication. Make sure you respond to these comments in a positive way.

Ask Questions

The best way to understand a customer’s needs is through asking a lot of questions about their company. Learn about what they do, ask them about the challenges they’re having. Find out what problems they need to solve immediately. The goal is to keep them fully engaged and that can only happen if you are asking them to respond to you. Listen to their answers. Delve deeply. By asking questions, your prospects open up and will give you various opportunities for you to find solutions.

Make Them a Special Deal

Everyone likes a bargain. If you can offer a special deal to a customer it could make all the deference between closing the sale and getting a firm “no thanks.” This doesn’t mean you have to give away free stuff but there is probably a lot of “wiggle room” when it comes to processing fees, shipping costs etc. If you are making a special offer, make sure they know it’s just this one time.

Be Specific

As you zero in on the final moments of your pitch, you want to make sure you lay out the deal in very specific terms. This means providing your customer a direct “how many”, “how much” and “when will it arrive” statement.

When you’ve closed the sale, don’t pop the champagne cork right away but instead take a moment to recognize what worked and what didn’t. Then use that knowledge on your next call: ABC!