Why Startups Need a Strong Vision

 Thanks to the GPS we never have to get lost again. All we need to do is plug an address into our phone or car’s navigation system and we can make it to our destination easily. We even get alternate routes to avoid heavy traffic!

Can you imagine going to some new destination in an unfamiliar part of town without directions? Now try to imagine a starting your business without any direction. You wouldn’t know what goals to aim for, when you reach your target or where you see your business in the coming years.

That’s not a good way to start any endeavour.

However, if you can create a well thought out vision for your business, you’ll be able to build upon and execute that vision towards success. Without it, you could quickly get lost.

Dream Big

A startup’s vision is your chance to dream big. The single store you’re opening today could become a major franchise down the road.

That is part of your vision. Will you know how to achieve that goal?

You will when you set forth a specific set of benchmarks to reach in the coming months and years. Your vision is as much about the future as it is about the day-to-day operation. Don’t hesitate to dream big.

Try this simple exercise: In five years, where do you see your company?

The answer to that question is what your vision is all about. Do you think you could achieve that goal without first understanding what it is?

Make the Commitment

The vision for your company isn’t just about those lofty ideas and grand schemes. There has to be a practical aspect to this as well. Your vision needs to have elements of a concrete plan included.

You don’t have to get into the nitty-gritty details of your operation, but you should know the answers to these questions:

·         When is it the right time to rent commercial space?

·         How do you measure the success of a marketing campaign?

·         What is your profit margin for each of your products or services?

·         How many employees do you need to hire and how much are they worth?

Those are tangible aspects of your vision that can be put into action once you make the commitment to do so. Just because you want to bake a cake for the very first time doesn’t mean you can unless you have a recipe to follow.  

Put It in Writing

When you craft a vision for your business you should always put it in writing.

This makes it real.

The best approach to creating a vision for your business is to imagine handing off what you’ve written to a total stranger. Could they follow your plan without asking any questions? That’s how thorough your vision should be.

It will give you the best chance at starting on the right foot. 

Ten Leadership Skills Every Entrepreneur Must Have

Being the boss means you’re the leader of your company. On many levels, the success or failure of your new startup will depend on your leadership skills. If you’ve started a business then it’s a safe bet you have some level of leadership abilities to tap into, but there is always room for improvement.

Consider these top 10 leadership skills that all business leaders must have to be successful in their businesses.

1.      Strong Mission Statement: Why did you start this business? It can’t just be about making money for yourself. Your mission statement defines the purpose of your company and will help inform every decision you and your team will make.

 

2.      Strong Vision: Unlike the specifics of the mission statement, the vision for your business paints the big picture. It tells your employees where you want to take your business and how your staff members can support you.

 

3.      Tangible Goals: As a leader you need to set the “bar” for your staff. You can do this by establishing goals foryour business. Whether its daily, weekly, monthly or quarterly sales figures, there should be a target to shoot for. You might have to adjust these goals to meet the practicalities of your business but without them you could find your company floundering without purpose.

 

4.      Strong Team: The major responsibility of a team leader is to actually pick that team. You need to strike a balance between the prospective employees resume, their interview and your own instincts to build that cohesive team. Just know that a good leader also knows when to make changes. If an employee isn’t working out, it’s better to sever the ties and move on than dwell on a mistake.

 

5.      Know-how: You need to present an image of competency to your employees, investors and customer base. This doesn’t mean you need a PhD in the particular business you are setting up, but all of those folks will be turning to you for answers. If you don’t have an immediate answer, don’t fake it. Take the time to get it right.

 

6.      Solid Communication: Building on the well written mission statement, vision and goals you need to keep those linesof communication open. Don’t just say, “My door is always open.” Seek out your staff to get their input. Challenge them to come up with solutions or new ideas by fostering a productive and open channel of communication. Be the model of how you want your employees to communicate with each other.

 

7.      Relate To Your Staff: This doesn’t mean becoming everybody’s friend. Although it might evolve to that you need to keep the boundary lines well drawn. However, that doesn’t mean you can’t find ways to relate to your staff and visa versa. The perfect example is with any company function that can involve families. The great “equalizer” among any group of people are the common bonds shared by families.

 

8.      Positive Attitude: “There are no problems; only solutions.” Projecting a positive attitude is infectious. Your staff will be looking for you to set the tone. Make it a positive one.

 

9.      Provide Inspiration: Providing inspiration isn’t just about coming in early and leaving late. A leader will often remind his team what they are “fighting for.” That type of affirmation can help drive up productivity in any company.

 

10.  Roll Up Your Sleeves: Every once in awhile you should step out from behind your desk and get into the trenches with your staff. Let them see you’re working as hard as they are and you’ll build extremely high levels of loyalty.

Is An MBA Worth It For Entrepreneurs?

 

There is no denying that adding an MBA to your resume is an impressive accomplishment. It is definitely the kind of degree that can give you a leg up as you enter into the job market, but what if your goal is to be your own boss?

Do you need that MBA to become an entrepreneur? The records show a mixed result of successful entrepreneurs: some have an MBA and others don’t.

If you have both an idea for a business and catalogs for college you might want to consider the following factors before making your final decision.

The Risks

Investing in a startup business is going to take up a lot of your time and money. The same can be said for pursuing an MBA degree. On many levels it will be hard to accomplish both tasks simultaneously. With the MBA there will be extreme limitations on your time. To succeed with that degree you’ll want to give it your best effort without distraction. Are you ready to make a 2 to 4 year commitment of further studies?

If you do go down the path of the MBA, chances are you’ll forge a strong bond with many of your classmates. The pressure will be on to excel out in the real world as a majority of your fellow grads will be snagging those high paying corporate gigs. Would you be prepared to give those up to pursue your business startup? In other words, would your drive to becoming an entrepreneur wane over the ensuing years of your MBA studies? It’s perfectly natural but it’s a good argument for diving into your business first.

One thing you might not learn in an MBA program is probably the most important skillset you can develop, and that’s sales. It’s the ability to persuade investors or clients to come on board your startup. The only tried and true method of that is through trial and error. You’ve got to get out of the classroom to practice your pitch and find the cash.

The Rewards

On the other side of the coin, having an MBA can become a benefit, especially if you focus your degree program on the specific area of business you intend to pursue.

Depending on where you obtain your MBA, you could find yourself surrounded with future captains of industry. That’s an extremely valuable network that you can tap into. You’ll also be able to work out the details of your business plan in a kind of “laboratory” setting. Wouldn’t it be better to run several models of your business by a collective think tank of professors and business experts then going into the venture “blind”?

With the MBA you’ll also have a solid “fall back” position should your business plan come up short. It might be that added level of security could be your deciding factor.

Government Financing Programs for Canadian Environmental Businesses

“Going green” is not just for residents who recycle. Many companies are taking proactive steps to develop and implement environmentally friendly business practices. The Canadian Government is fostering this atmosphere by providing numerous resources to not only help a business go green but to provide limited financing for entrepreneurs who are getting into the environmental business.

The go-to site for any small business should be the Canada Business Network. There is a wide range of government-backed loan guarantee agencies designed to help a small business that might be having difficulty securing a loan from other creditors. Among the agencies are:

Canada Small Business Financing Program: This is a program that can help a business owner secure up to $500,000 from an accredited lending institution by offering a loan guarantee. These loans are meant for direct improvements to a business such as purchasing equipment or property for the company. For these loans a small business is defined as any company making less than $5 million a year.

Eco-Financing: This program applies to businesses operating in Quebec who are associated with the environmental industry such as acquiring carbon credits, research and development for greenhouse gas reduction or acquiring offset credits.

Export Guarantee Program: If your business will be involved in export related activities or foreign investments then you could find a benefit of a loan guarantee from this agency.

Canadian Agricultural Loans Act Program: This is a loan guaranteed program that assists farming businesses in securing credit. It applies to start-up farmers or for a farmer taking over an existing business with a maximum loan guarantee of up to $500,000 that can be applied towards land purchase and construction.

There are also many funding and incentive programs being offered to Canadian businesses who adopt “green” technologies or practices. These include rebates for installing solar energy panels, and helping agriculture business produce their own renewable energy sources.

Additional resources offered by the Canadian Business Network are for environmental technology verification. This allows businesses to get any environmental system they are using to be certified. That will help the business secure those loans which are geared towards eco-friendly businesses. In other words, you might have to prove you’re eco-friendly before getting the loan.

The Energy Management Information Systems Planning Manual helps business owners audit their company’s use of energy. Armed with this information, a business owner can make adjustments in their energy use that could save them money in power costs.

The FleetSmart program offers incentives and resources for companies who want to switch their transportation fleets over to more fuel efficient models. In some cases, companies are making a complete switch to electric cars with the help of these incentive programs.

Bottom line: whether you want to make your business more eco-friendly or want to start an environmental related business from the ground up, the government of Canada is a terrific place to start.

Small Business Financing - It's All About Who You Know

Believe it or not there are plenty of folks out there looking to invest in a small business. Your challenge is to get your business plan in front of them. Easier said than done, right? Actually, if you apply yourself you’ll find that it’s quite easy to build a network of potential investors. First, make sure you have a rock solid business plan ready to go. It makes no sense to seek out investors unless you’re ready to pitch. You might get only one shot and you have to be ready. Here are some tips for building up a network of investors.

1)      Go Online

There is a huge social network waiting for you to explore that is only a few mouse clicks away. LinkedIn is the most obvious choice to start your campaign to connect with potential investors. Here you’ll have a chance to build up a professional profile and find other business professionals who might be able to help. A connection you make on a site like LinkedIn might not be in a position to write you a check but they could connect you to someone who can.

2)      Try Crowdfunding sites

Beyond the direct networking possibilities of social media, there is another burgeoning source of investors you could find online and that would be with group funding. A site like Kickstarter is bringing together pools of small investors who are willing to share their funds with a business that looks promising. Once again, you have to be ready to fire up your business machine and answer any question in a competent matter.

3)      Ask your family and friends

It’s amazing the amount of help we can get from our family and friends if we just ask. You might have a favorite aunt or uncle who is willing to take a shot at investing in your business. As long as you treat them as you would any other potential investment then there is no reason not to present them with a business plan. Just as your online network could help you bridge the gap to meeting potential investors, you might have a friend who works for a company or has their own relationship with a potential investor. Throw a friendly dinner party and make your pitch. Keep it honest and sincere and you’ll reap the benefits.

4)      Network at events

This is a no-brainer. There are plenty of tradeshows geared for entrepreneurs to help them connect with investors. Seek them out but don’t stop at the tradeshow. Follow the money. This means going to places where the “money” would hang out: a country club, museum opening, first night at the opera, polo pony matches… wherever you might think that serious minded business professionals would gather you should try to infiltrate. This doesn’t mean barging in with your stack of business plans ready to hang out. Go make some new friends and see where that takes you.

Predicting Accurate Sales Revenue for your Business Plan

 

Your business plan is your calling card. This is how you’ll be judged by potential investors and lending institutions. It has to be expertly prepared and you need to be able to stand by every projection.

The key word there is “projection.” For all practical purposes, you’re making an estimate as to how your business will perform. In the real world, those numbers can go up and down.

Predicting accurate sales revenues could make all the difference with your potential investor. Those numbers have to be realistic and rock solid. Here are the steps to take for making accurate sales predictions.

 

Step 1: Expenses

You’ll need to put together the list of fixed and variable expenses. These will include all the items you know you’ll be paying out for on a regular basis such as office rent, equipment rent, payroll, electric, phone and inventory (if applicable). You should also factor in the budget for marketing campaigns. It proves you’re being realistic about your business expenditures.

Step 2: Income

Here is where you’ll be doing the bulwark of your predicting. How can you estimate revenue when you haven’t sold your product or service yet? One approach would be to analyze the competition. What kind of business have they done in the past several quarters? If they are a public company you can find that information easily.

You might also have experience from a previous job that can provide projected sales figures. Your local Small Business Administration or Chamber of Commerce might also be able to help you.  

You should also analyze your own market. This is easier with a brick and mortar type of store than with an ecommerce business. Think of your business as a zone that attracts potential customers. What would be the average amount of customers who would visit your store or site each day? Of that number, what percentage would make actual purchases? Of that number, how much would they spend? This is how you shape projections. You should always strive to be conservative with those estimates so as not to over inflate your company’s value.

Step 3: Do the Calculations

Here the math is simple: You subtract your expenses from your sales projections. That is your profit margin and it’s the number your investors will be most interested in.

Whatever set of numbers you put into your plan you’ll need to make sure you’ve got backups for them. This can actually be explained as part of your business plan but it’s a guarantee you’ll be asked at some point, “How did you come by these figures?” You want to make sure you have a responsible answer.

How to be a Guest Speaker to Promote your Business

One of the most effective ways of getting the word out about your business is to talk about your business. That doesn’t necessarily mean stopping strangers on the street and passing out business cards (although that can work!). You should find ways to become a guest speaker. While you might not command those huge keynote speaker fees, you could volunteer to give a talk to local community groups or at trade show conferences. Those event planners are always looking to broaden their agendas and you’d be providing them a great service. Here are five terrific tips to help you become an amazing guest speaker to promote your business.

Get the Facts

 Know your audience. You should develop a kind of “stump speech” which is basically the same speech that can be delivered to any audience. However, that doesn’t mean you can tailor make that speech to fit a particular group. What you might be presenting to a group of senior citizens is different than to a group of high school seniors, even if it’s the same product. You should also know exactly how much time you’re allotted for your speech and when you’ll be “going on.” Additionally, if you require any special equipment like a projector or extension cord it’s always best to bring that yourself. Don’t count on the facility to have what you need.

Write Your Own Intro

Since you’re going to be introduced it will be best if you can position your biography and theme of your speech. Writing your own introduction can certainly be done with humility. It’s also a great relief to your host since they won’t have to worry about getting that information wrong.

Have Take-aways

It would be extremely beneficial if you can put something into the hand of everyone listening to your speech. Whether it’s a brochure, menu of services or even a refrigerator magnet, giving the attendees something with your company name and contact will be invaluable in terms of creating new customers. If you have something to sell immediately, like a book or other promotional items, make sure you clear it with the event planner in advance. Also find out if there will be other speakers selling stuff. You don’t want to be the only one selling.

Engage Your Audience

The best approach to giving a speech is to make it more like a conversation. Yes, you’ll be doing most of the talking but you don’t want to get stuck reading from a written speech or slides on a power point presentation. One of the most effective ways of engaging an audience is to ask them questions. You don’t always need to hear the answer but you’re getting them to think about your presentation by turning it on their own lives. That will make what you have to say resonate with the crowd.

Stick Around

Don’t just talk and run. If you have time in your presentation to open up the floor for questions, that will be terrific. Often attendees might prefer to pull you aside after the speech to ask questions. Stick around to meet the folks and find out more about them. Who knows? You might even be asked to give your speech somewhere else! 

How to use LinkedIn to get New Clients

 

While everyone is busy posting pictures of their pets and catching up with friends over on Facebook, serious minded business professionals are turning to LinkedIn as a way of staying connected with associates. They are also discovering the benefits of utilizing LinkedIn to expand their own customer/client base. There was a time when dedicated salesmen would have to “work the phones” to generate new leads. Today’s internet savvy sales force knows how to work the social media networks. Here are some tips to help you use LinkedIn to get new clients.

1)      Share the News

The worst thing that a potential new client or even a long time business associate should ask is, “What have you been up to lately?” If that happens then it’s clear you’re not using LinkedIn to its fullest extent. Whenever your business has a new product or venture you should post the details on LinkedIn. You can also send industry news that is relevant to your network or contacts. You can boost that announcement by adding a follow up direct message to your contacts asking for the time to catch up through a call or email.   

2)      Make the Connections

After you’ve established your own social circle of professional contacts on LinkedIn it’s time to go exploring. Spend some time every day reviewing who your contacts are connected to. Perhaps someone you once worked with are friends with a CEO you’d like to get in front of. Armed with this information you can ask for an introduction or use that connection as your “conversation starter” with the new contact. Either way, you’re expanding your reach which is what LinkedIn is all about.

3)      Track Down Former Co-Workers

Over in Facebook everyone is digging up old acquaintances from as far back as kindergarten. You should be doing the same thing on LinkedIn but keep it focused on business. Take a trip down memory lane and go looking for former business associates or fellow college grads. Where are they working today? Would that be a valuable connection to make?

4)      Ask for Introductions

Making a connection is easy but what if you want to gain access to a company where you have no network? You’re essentially making an old fashioned “cold call” reaching out to that company. Your network is the best bet to be introduced to someone within a company. Find out who knows who and ask for an introduction. The best thing about LinkedIn is that it allows you to see who is connected to whom.  This doesn’t mean you make a contact and then go for the hard sale. Let that relationship build. (See hint #1!)

5)      Join the Groups

Every member of the LinkedIn community has the opportunity to join groups built around common interests. Here is where the community really comes to life through ongoing discussions. Those groups could all contain potential clients. Get involved but keep it professional. The best way to connect with strangers is to create your own LinkedIn group. Revolve the group around a particular industry/category and invite your peers to connect and share. 

Your Personal Brand - Managing Your Online Reputation

A strong and well defined online presence can certainly move the “needle” when it comes to determining the success of a company. In many ways, your company brand is an extension of your own personal reputation – especially if you own a consultancy. For all the good resources and opportunities that the internet provides it can also be a place where negative reviews can have a lasting impact. Can you control what is said about your brand online? Here are some helpful hints about managing your online reputation.

Google Yourself

The only way to know what is being said about your company is to dive into a Google search. However, the occasional search won’t be enough to fortify your interests. Set up a Google Alert which can send you daily updates about any topic you create. This is a perfect way of staying on topic of mentions in blogs, articles or websites. Take advantage of Google Alerts, a free notification service by Google that tracks any keyword online and notifies you anytime there is an article related to that keyword.

Optimize Your Brand

Just because someone types your brand name into a search engine doesn’t automatically guarantee a positive result. What might appear at the top of a search engine ranking could be a negative reviewed from a disgruntled customer. When you consider that a recent study found that 89% of click throughs occur from the first page of a Google search, then you can see the importance of optimizing those results towards more positive trending. Search Engine Optimization or SEO is an area you should focus on for your online marketing campaign. The key is tracing back the links to your business from negative sources and improving the positive responses. There are many resources that can help you improve your rankings. It’s another proactive approach that should be at the top of your to-do list.

Make Social Media Your Friend

Anyone with a passing glance at the internet will no doubt come across some of the dozens of prominent social media networks. These areas are quickly becoming the “hot spots” where internet users spend most of their time online. You need to develop a strong presence for your brand on these sites as well. Facebook, Twitter, LinkedIn and Pinterest are all viable places where you can develop positive brand reputation.

Offer Quality Content

No matter what type of product or service you are selling online there is an opportunity to build out your brand by providing quality content for online users. An informative article or blog posts that relates to your brand which has been properly optimized can be picked up by search engines and draw traffic back to your site. That can only happen if you make an effort to create engaging content. If you feel that your writing skills are lacking, there are plenty of talented writers who can help deliver the kind of fresh content your website needs for strong SEO.

Finally, try to maintain a positive impact offline as well. A negative news story about your company can push all the hard work right off the first page rankings. By staying active in your local community, you can create positive buzz in on the local news front.

What Is The Biggest Threat To Your Creativity?

 

The biggest threat to your creativity could be staring you right in the face. The mere fact that you might be researching this topic means you’re stuck! It might be that the creative block hindering your productivity could come down to your attitude. If you consider the very act of “being creative” as a chore or something you dread, then you’re setting up a pattern of self-defeat before you even begin. That’s not being productive or creative. Here are some other things to consider that will help spark your creative flow:

Change Your Perspective

Try sitting in your guest chair for an hour while doing your work. Swap out the photos or art work hanging on your wall. Sometimes changing perspective can be enough to spark a creative idea. Even the smallest change can make a difference. If you have the chance to grab your laptop and head outdoors to the nearest java joint, go for it. There’s no telling what you might run into or meet up with that could help you rethink a problem and come up with a creative solution.

Change Your Chair

If you’re spending eight hours in an uncomfortable chair it’s no wonder you can’t be creative. Constantly adjusting your posture to find the perfect position is a distraction. That distraction can set off a chain reaction. If your chair is uncomfortable then it’s too hot or too cold in the office. Your shoes are too tight. You don’t like what you’re wearing. It goes on and on. Stop those kinds of distractions in their track and start by being comfortable in your chair. By the same token, don’t always sit in the same chair during conference room meetings. Mix it up and see what happens.

Change Your Office Space

There might be an unused area in your office that would make a great “think tank.” Bring in a couple of comfy sofas and chairs and let this be a break space that gives you and your coworkers a chance to get out and move around. This could also be a great place to share idea and get feedback.

Take a Break

We’re not talking about going for a cup of coffee or slice of birthday cake. Instead, think of ways to take an inspiration break. Is there a piece of music that always puts you in a good frame of mind? Is there a favorite writer who always gets you thinking? Load up some quotes or your favorite book in your iPad. Then schedule time to put your work aside and look from inspiration from those sources.

Write Everything Down

The only bad idea is no idea. You sometimes have to get through the dozen clunkers before finding that gem. That’s why when you’re brainstorming you should write everything down. Doesn’t matter if it’s a pad, a dry erase board or even a digital recorder - get it on record for future consideration.