Posted May 16, 2013 by Ryan D. In topics: Startup

Synopsis:  When it comes to startups, people seem really concerned about matching what past companies have done. Does it matter? And what should you care about in order to transition your company into a thriving business?

Its a question that we would all love an answer to: What makes the ideal startup experience. What factors drive the most success? What will guarantee that your business makes it into Series B, C or beyond funding?

Theres no clear cut formula. After all, if there was, thered be far fewer business ideas failing to make it off the ground level. So what can you do to make sure your company stands above the rest? How can you position your organization, internally, so it has a chance to pull in the next multi-million dollar funding round ?

While theres no formula, certain factors do seem to weigh more heavily in the startups that turn into long-term businesses compared to those that flicker before closing. And these factors vary, depending on the size of company youre trying to build, the industry you work in and the talent you need. What, then, are some of the major points that matter the most when youre looking to grow your organization past that first hurdle, and transition into the larger successes that you dream about?

Here are 7 factors related to where and how you set up your business, to ensure you have the best chance to transition from a still growing company into one that lasts: Read more

Synopsis:  In a new survey, customers and vendors claim that value is one of the least important parts of the relationship. Is that true? Or is it just expected? Depends on how you define it.

Customers and clients are fickle. We all know that. One day they want one thing, the next another. Its our job to try and predict any such movements, which in turn will provide value to their purchase.

Yet, when the Rain Group recently polled customers to see what they really wanted from their purchase over another vendor, value was at the bottom of the list, at number 10, according to Inc.com. Some of the many traits that the sales consulting firm saw come before value was bringing new perspective and ideas, collaboration, listen to the customer and help the customer avoid pitfalls.

But is it really true that customers arent looking for value when theyre searching for products? I guess it depends on your definition of the term. If you define it as the cheapest option, then sure, its probably not going to be as high on the list as other attributes, since most customers understand in order to get the best results, you have to pay for it. If, however, you define value as providing quality service that brings improved results to the company or happiness to the customer, then maybe value isnt really sitting at the bottom of this list.

For instance, lets take a look at some of the options that came above value. First, bringing new perspective and ideas. Inc.com, said this about it:

If customers could diagnose their own problems and come up with workable solutions on their own, they would do so. The reason that theyre turning to you and your firm is that theyre stuck and need your help. Therefore, you must be able to bring something new to the table. Read more

Posted May 7, 2013 by Ryan D. In topics: Startup

Synopsis:  When in the early stages of a growing business, the question of whether you should have a partner will most certainly arise. Here are a few questions to ask yourself to see if a partner is right for you.

When it comes to dating, one is the loneliest of numbers, but can the same be said for when running a business? Having the independence to do what you want, when you want can give you the versatility your growing company needs. But, then again, having the expertise and help from a trusted partner can offer the boost you want for fast growth.

The number of companies that have started and blossomed with partners at the helm is just as long and as illustrious as those that went it alone. For every Google, which was started by Sergey Brin and Larry Page, theres an Amazon (Jeff Bezos). With Steve Jobs, Steve Wozniak and Ronald Wayne launching Apple, theres John Schnatter of Papa Johns. Sure, every company had early help, but when were talking about your company, should you share the responsibility with a partner or leave it on your plate as a sole proprietorship ?

The debate about whether its best to have a business partner or not really comes down to a few questions that you should ask yourself. Whats your answer to these? It will help you in deciding which way to go.

Are there serious skills that you lack, which you need in the industry? 

Whether its the ability to code, the understanding of supply chain or the intricacies of bargaining, do you lack certain abilities that your company will need to succeed? If the skill is difficult to outsource. and integral to your future success, then its time to look towards a potential partner that can round out the companys offerings.

Does Your Company Need Experience?

In certain fields, experience is everything. Read more

Posted May 6, 2013 by Ryan D. In topics: Startup

Synopsis:  While many business owners want mentors, quality confidants arent easy to find. Heres how to get the benefits of a mentor, even if you havent managed to find one, yet.

When youre in the middle of building a company, theres so much to do that it can get overwhelming. From ensuring marketing tactics are on schedule, to guaranteeing a quality product or great customer service, theres a whole mess of to-dos on your plate. And thats one reason many people entrepreneurs and non-entrepreneurs, alike suggest getting a mentor.

The appeal is obvious. With a mentor, you can throw ideas off someone who has your best interest at heart. They can help you organize whats important and what you should hold off until a later date, keeping you focused on your businesss growth. According to a recent study by Office Depot. four in ten business owners that were surveyed believed that having a mentor would boost profitability of their company.

But do you need one? If youre interested, theres a number of resources available to help you find or use a mentor. If, however, youre one of the millions of us without a mentor  what should you do until you find one? Theres a number of ways to get around this barrier and by doing so, who knows, you might accidentally stumble onto a mentor.  Read more

Synopsis:  A growing trend in business is to share company financials and employee pay. Is this a good idea? And what should you keep in mind, if youre considering taking this step?

How much information is too much information? This can often come up in employee interactions, as one crosses the line. Of course, many companies have handbooks the size of a fist to explain how and how not to act. But what about your policy with being transparent about your financials? Or even more touchy, your policy for providing employee pay information to the rest of the office?

Its an issue that has become more pronounced in the past couple of years, as more data suggests that a transparent office works more smoothly. Two researchers at Tel Aviv University found that secrecy actually hurt employee morale. They concluded in organizations that keep pay secret, employees often felt that they were undervalued compared to their peers. And the demotivating impact was worse the more productive an employee was.

But many companies are not quite ready to throw the sheet off of their financials to any employee that walks through the door. How do you balance the need for transparency and the ability to keep some information close to the vest in order to be able to maneuver and manage the company effectively? It depends on who you ask.

First, lets discuss financials. Discussions around these can vary from how much the company made last year, how much growth you hope to have in the next few years, how clients are reacting to a change in the organization, how much of the bottom line goes into various departments, and on and on and on. Sharing some of this information is important, since you want your employees to know whats happening in the company, offering recognition for successes or quelling any fears around failures. But it can get uncomfortable, if for say, you share too much information, and the employees feel undervalued.

Posted May 1, 2013 by Ryan D. In topics: Startup

Synopsis:  For a young, growing business, the decision to find investors will dramatically impact the future of the company. Below we lay out some pros and cons to bootstrapping the early days instead.

For a young business, one of the tougher decisions early in its run will be how to grow. Is it better to bring in investors, raising capital and using it to invest in the company? Or would the company run better by bootstrapping the growth, keeping it tempered and controlled, while you reinvest in the business as profits come in?

While theres no right or wrong answer to this question it really depends on the company and the type of product or service you sell it will certainly shape your ability to grow quickly and how you run the organization. And its a decision you will have to make early on in the life of the company, especially if you plan to take on investors.

ReadWriteWeb talked to a few startup owners about why they chose to bootstrap their company. Heres one of the answers from Nanxi Liu of Enplug that really stood out. She said:

Contrary to what you might think, being in bootstrap mode actually makes pivoting easier. With a lean operation, the costs for dropping ideas and moving in a new direction are minor, whereas the sunk costs that come with pivoting with money can be nerve-wracking. The biggest drawback is the loss of opportunity for rapid growth. There can be instances where hitting your niche hard and fast is crucial to establishing yourself in your market. A cash infusion at the right time can be what saves your company from the startup graveyard.

But theres a number of other pros and cons to bootstrapping the company from the onset. Below Ive talked about a few of them. Hopefully, they will give you insight into how you can grow in the second stage or third or fifth stage of your company: Read more

Synopsis:  This summer, nearly $2 billion in government contracts will be open for pitching from small businesses. Heres what you need to know, in order to win your piece of the pie.

One thing business owners are always on the look-out for is the next opportunity. And one place to look may just be the federal government. In the next couple of months, Washington will be offering nearly $2 billion in contracts targeted to small businesses.

According to The Washington Post. opportunities range from IT services to geospatial capabilities (not sure what that means) and professional services, primarily for the Department of Defense. One Air Force contract the piece outlined will be offering $600 million for various needs and solicitation will begin in May. Another Army contract will have $474 million earmarked for small business owners, and will also solicit in May.

Thats a lot of money on the table. And the great thing about federal contracts is that they offer some stability, which is sometimes lacking in the private sector. Plus, the government has specifically designed these for businesses of certain sizes, so you can see where your company fits, and start bidding. But how do you go about winning a contract? After all, it can cost some money to attempt such a win. Yet, the payoff can be worth it, as 47% of small businesses that contract with the government reach $1 million in revenue, while only 5% of small businesses overall manage that level of success, according to American Express Open Forum research .

Obtaining a small business contract, however, is much different than a regular contract. Besides preparing for the massive amount of paperwork that you will need to sign and file, heres what you need to know in order to obtain that lucrative government partnership: Read more

Posted April 29, 2013 by Ryan D. In topics: Startup

Synopsis:  Over the weekend, director Zach Braff joined the legions of successful crowdfunders. How can your business follow in his footsteps? We discuss below.

Sometimes, in order to find funds for your next project or product release, you need to turn to the community. Director and actor Zach Braff made headlines this weekend, doing just that as he raised $2 million in just three days for his next film using the community fundraising site Kickstarter.

And more and more companies are trying to pull off similar feats as Braff just accomplished. And in doing so, they turn to these community funding sites, to market the idea or potential product, in hopes that the community will immediately catch on to the business owners vision. Sometimes it works as companies raised $2.7 billion in 2012 on crowdfunding sites. Still, often it doesnt. Plus, you need to be aware of new rules going into place by the SEC. that will impact crowdfunding moving forward.

But besides the red-tape, what makes a successful fundraising experience, especially if you lack the name recognition of a Braff? Well, its tricky and its new, but there are a few ways to make sure you stick out among the crowd.

• Have A Clear Goal:  You must already have a strong vision of what the product or idea will look like in its finished form. Being able to show what it will do, how exactly it will accomplish what you want it to do, and why its useful will encourage interest. And if you have a video of a prototype, that helps even more
• Tell Your Story:  Theres an important aspect of those businesses that managed to reach their goal and those that didnt, and thats how well they told their story. Those companies that highlighted where they came from, and how they came up with the product, simply do better. Thats because people connect with the company. then they connect with the idea. That will drive more fundraising Read more

Posted April 25, 2013 by Ryan D. In topics: Startup

Synopsis:  Encouraging employees to stay and grow within the organization can be one of the best long-term growth drivers for a business. How do you do so? Here are some lessons found from Dominos Pizzas talent retention tactics.

One of the great ways for businesses to grow is by encouraging employees to build on the work that the entrepreneur or business owner first created. Sometimes, this growth is driven by franchising while other times it means building a new office in a new location, helmed by a long-time employee. But that encouragement of opportunity is what builds and strengthens the company culture. lighting the fire for growth.

CNNMoney.com showcased just how a company can do this through a behemoth, Dominos Pizza. The piece focused on Rob Cookston (appropriate), who at 19-years old started working as a delivery boy in Virginia. He enjoyed the job, and a few months later learned that you could actually make a good living as a manger of stores, so he signed up for the management training course the company offered. After going through training, he spent five years managing various locations. But he wanted to run his own, so he borrowed money from his parents, and launched his first Dominos Pizza franchise. Fast forward nearly 20 years and he has owned, at one point, 32 Dominos Pizzas across New York, Connecticut and Long Island. Not bad.

The writer, Emily Jane Cox, goes on and adds:

Hes been able to pay it forward, too: Seven of his own deliverymen have gone on to become store managers.

Dominos taught me everything about hard work and what it takes to run a business, he said. I believe if you can make it at Dominos, you can make it anywhere.

Thats the type of dedication from employees that you want to create within your own business. How did Dominos do this, while still encouraging growth? Its simple, they made sure there were ways that those motivated and talented enough, could grow within the organization. In fact, the company says that 90% of the franchises are owned by former pizza deliverers or entry-level workers. Heres some of the ways they have cultivated this dedication to the brand: Read more

Posted April 24, 2013 by Ryan D. In topics: Startup

Synopsis:  Customer service can become a real problem once your customer base starts expanding. How do you handle all the questions without causing your business to come to a halt?

One of the strongest advantages that a new business has is its ability to connect directly with customers. That personal service is what helps you stand out as you gain new business. But as you grow, you will inevitably need to create structures that will allow your company to deal with customer service in a hands-off way at times.

This doesnt mean you should abandon customer service, of course. Instead, you will need to find ways that for those customers that can help themselves, they will have a way to do so. This will relieve some stress from other areas of your business. especially if youre having to put all hands on deck in order to deal with customer questions.

How do you walk that line, though, from providing amazing customer service to letting go of some of the controls? Its difficult, but using your website and technology, you can still offer those that need the help with the winning service your customers expect, while allowing those that can answer questions themselves the means to do so.

• FAQ —  After you have been running your business for a few months or years, you will find that a number of customers ask similar questions. Keep track of these questions, so you can develop a full and informative Frequently Asked Questions section on your site. The more informative it is, the fewer questions people will need face-to-face or phone-to-phone contact with your company, in order to find an answer. Read more