Category: Entrepreneurs

Only a bold, brave person chooses to become an entrepreneur. If you want to succeed in business, you’ll need to learn not only from the successes of others but also the mistakes, and the latter are often more instructive. Following are four common mistakes first-time entrepreneurs make.

Make Choices

Are you someone who struggles to decide what to have for dinner each night? If so, running a business likely isn’t for you. One of the crucial elements of entrepreneurship is the ability to make fast but informed decisions. Many people fear this kind of choice. Being wrong forces people into a stalemate called analysis paralysis — one of the most fatal errors for people in leadership positions.

If you’re unwilling to commit to one side of an argument, this confusion will filter down to your employees. They, too, will act indecisively. The inevitable outcome is that your business will suffer due to a lack of direction. People need leadership, and that will require you, the entrepreneur, to make hard choices.

Networking Matters

During the early days of your business, you must avail yourself of every potential business relationship. You might have heard that 90 percent of startups fail. One of the reasons is that companies fall victim to the burn rate of their cash flow. With a lack of ready clients, such failed enterprises spend all their money without any viable way of generating more.

How does an entrepreneur get more clients? They network. Through personal and professional connections, you can meet even more people, many of whom are potential customers, and you can begin to foster relationships with them. All of this seems rudimentary, yet a shocking number of new business owners fail to explore these avenues. The fear of rejection causes some people not to try. You must demonstrate more boldness than they exhibit and embrace the networking process.

Money Matters More

Unquestionably, the most difficult aspect of first-time entrepreneurship is learning how to handle cash flow. As noted above, you have a finite supply of money. You have to be careful to make it last long enough for you to earn more. Many startups struggle due to their lack of on-site accounting professionals. New business owners aren’t often skilled at bookkeeping, so they miscalculate their financial situations.

Fortunately, cloud accounting software can address these concerns. For example, Sage’s small business billing software makes transactions easy enough that you can know at a glance the status of your corporate bank account and other financial data. Such financial apps empower you with the ability to take complete control of your balance sheet, knowing precisely what your short- and long-term cash flow is. In short, products like Sage will make you a better entrepreneur.

Don’t Get Attached

Did you know that Pinterest was once a business app? It was a shopping program called Tote, and nobody cared. Then, founder Ben Silbermann accepted that the pinned board concept surpassed the original expectations for Tote as an app, so he pivoted.

Similarly, Android, now the dominating smartphone operating system, started with simpler goals. As originally intended, it was a cloud storage camera system complete with a revolutionary operating system. The catch was that its programmers built it to connect to computers, running much of its programming through them. Google recognized a better usage of the technology and purchased the company. The rest is smart device history.

What’s the point? Your original ideas for your company shouldn’t be finite. There’s an ebb and flow in business that is impossible to anticipate in advance. Plan your early strategies for the revenue you know your products can earn. As more opportunities become available, don’t ignore them in favor of your current revenue stream. Instead, explore their potential, keeping in mind that some of the most popular companies on the planet started out as entirely different enterprises.

When starting a new business, realize that plenty of cautionary tales exist. You should not be afraid of these mistakes but rather appreciate their value. Learn from the miscalculations above, and you’ll better position your business to succeed.

Article Contributed by Lisa Michaels

Starting a business is an exciting, yet stressful, experience. Businesses are formed in many ways, some of which are joint ventures. These business partnerships can occur for a number of reasons, including a lack of skill sets, poor connections within the industry or not enough financial resources. Many times, the people who form a business partnerships already have a personal relationship, such as a friendship. Although this can be rewarding, it can also be challenging at times. Businesses built between friends are most successful when emotions do not get in the way, which is done by keeping business practices as impersonal as possible.

This article will explain some of those challenges and how to avoid many of them by planning ahead through successful business practices and reasoning. First and foremost, it is essential to make all decisions with the company’s best interests in mind. This can be done by establishing ground rules so that when a problem arises, common issues and negative outcomes can be avoided.

Define Specific Roles Clearly

One of the good things about starting a business with a friend is that it allows you to know much about each other, which includes specific strengths as well as specific weaknesses. Because friends have a good rapport, these should be easy discussion points when forming a business. In many cases, these roles will often define themselves naturally as friends know what each other do best. Other cases might be more difficult, because many friends have not worked together before and may not know each other’s professional aptitude and skills. That is why it is crucial to have this conversation when forming the business.

You must have everything defined clearly before embarking on this professional venture. Strategy plays a big part in the designation of responsibilities. For example, the partner with great communication skills should assuredly be the CEO, or Chief Executive Officer, which would handle communication with other companies and clients. If the other partner is better with day-to-day operations, he or she should take the role as COO, or Chief Operating Officer. Once these roles have been designated, it is best to write them down so there is a guideline set in stone that cannot be changed. This will allow the business to be organized from the start. 

Always Keep the Communication Channels Open

In any business, especially one that is formed with a friend, it is important to keep the communication open and honest. Rules must be set in place to ensure business flows fluidly and successfully. Rules should include regular meetings with constructive discussions about the direction in which the business is moving.

Although the business was started because of a passion that you share, you will probably not see eye to eye on all decisions. For this reason, communication is crucial to the success of the business. For example, you both came up with this great idea, but have not yet figured out exactly how to set it into motion. Your visions might diverge, which is why you have to talk them through, resist the urge to impose your wills, and try to make a compromise. Ultimately, your idea must go through a testing phase, which may include product trials or surveys, to make sure it can be profitable as well as functional in the marketplace.

Talking through these crucial decisions at regularly scheduled times and coming to mutually agreeable terms will help strenghten your personal relationship and benefit your business.

Always Make the Business the Top Priority

When everything is coming up roses as far as business is concerned, it is easy to maintain a positive relationship with your business partner. Unfortunately, this is not so easy when the going gets tough. It is important to keep in mind that, once in a while, you will have to make difficult decisions that you will not like to make.

It is necessary to always put your business’s best interests first, and there is no place for big egos in a business partnership. For example, it is hard to give and take orders from friends, but it is part of a business partnership nevertheless. In order to avoid such situations where one of you seems to be bossing the other around, make sure to gather the entire team at a regular basis and discuss weekly accomplishments or issues, and set a plan of action for the following week. It can alleviate some of the stress related to the personal and business relationship struggle. Keeping this in mind will allow things to flow much more smoothly.

Make All Plans in Writing

In the unfortunate circumstance that the business does not work out or that the partnership splits, there must be written plans of how to handle these situations. It should include how assets are to be divided and what would happen in the case that one of the business partners leaves the company.

Consulting a lawyer to draw up the document is a good idea to ensure its legality. An attorney will also help you to cover all bases in the case of any unexpected situation. Planning ahead will alleviate much stress for future issues.

Value Your Personal Relationship

When people are friends, it is because they have common interests and goals. In a business developed by friends, these qualities are benefitcial for the company. It should promote positivity and strong morale within the workplace. It can also help to build a strong team and keep loyal employees around the brand. Remembering what brought you together will help in stressful business situations.

In conclusion, starting a business with a friend has both positive and negative attributes. It is never a good idea to enter into a partnership simply because it seems fun. If your friendship is strong, and you complement each other professionally, a business venture can be successful. But you must consider all the parameters before making a final decision.

About the Author

Lisa Michaels is a freelance writer, editor and a striving content marketing consultant from Portland. Being self-employed, she does her best to stay on top of the current trends in the business world. She spends her free time trying out new recipes or reading Scandinavian crime novels. 

Article Contributed by Daniel S. Williams

When I was younger I loved the Dr. Seuss stories—The Lorax, Green Eggs and Ham, all of them. Featuring colorful depictions alongside fictional storylines, I found them intriguing with a special “something” about the widely popular works. Though a pseudo-name, Dr. Seuss was a masterful teller of stories, a visionary of sorts from the treatment of environmental concerns to trying new things. The entrepreneurial ecosystem can learn much from the crafting of such powerful stories. As an entrepreneur, it is your responsibility to convey that vision, not unlike the storyteller genius himself, Dr. Seuss.

Tell your tale – As the entrepreneur you have the most intimate connection to your vision as you envision it. Embedded in any good story is a tale that engages and leaves one inspired, as many of the Dr. Seuss works often left me. Not every startup or idea takes off to become the next “unicorn” of the Valley. But every entrepreneur grows their idea chiefly as the byproduct of conveying a profound vision. Making some measurable impact. Often the best storytellers become so by being immensely acquainted with the tale—having told it over and over. Such iterative practice is what an entrepreneur performs—telling your vision to anyone who will listen to it, and hopefully partake in it too. How convincingly one tells the story makes a world of difference, with passion and drive often leading the way.

A professor of mine once said that entrepreneurs often have two distinct “categories” of traits: Rigor and vigor. This is the passion and drive fueling the tale as it unravels. It can either be a story that is uneventful and dull, or it can be one of intrigue and captivation.

Write the future chapters – As an entrepreneur, the story is far from being over. You have worked on the opening few chapters to set the stage for your idea, moved into the middle pages where you may have even developed the vision beyond pencil-and-paper, but there is the second half that remains. It is the most important part where you can craft the vision to incorporate customer feedback, adapt the initial prototypes through a great deal of iteration. Chris Sacca, billionaire entrepreneur and investor, once said on an episode of Shark Tank(on ABC Television) that “ideas are easy” and “execution is the hard part.”

Your ideas will change along the way, malleable to the feedback and inputs of countless individuals from angels, to mentors and advisors, to potential first customers. Regardless of this sometimes radical change the entrepreneur must be able to incorporate the adaptations along the journey into the revised vision. As each tweak is made a new chapter of the story is crafted. Only the story lacks a clearly-defined ending so long as you always seek to make an impact with your venture. There is not a limit to what your idea can be; the limit is how well an entrepreneur is able to define the vision. Each chapter will prove immensely valuable in teaching the entrepreneur something as well—one of the less emphasized benefits of growing your startup venture.

Go and start on your entrepreneurial tale. If you ever need guidance on the way, Dr. Seuss may shed some light on how to get there.

About the Author:

Daniel S. Williams is currently an Advanced-Standing senior at Boston College, majoring in Management with a concentration in Finance in the Carroll School of Management. He also is actively involved in serial entrepreneurial pursuits, including Sandbox SEF and Xperii.

Article Contributed by Paisley Hansen

There are important differences between entrepreneurs and wantrepreneurs that explain why some business people succeed against all odds, while most fail. It isn’t always easy to predict who will come out on top in the competitive world of business. Lenders, investors and prospective business associates considering a relationship with an entrepreneur should carefully evaluate possible liaisons based on the list below. The question to answer is whether the business owner is a committed and focused entrepreneur or a wantrepreneur destined to fail.

1. Entrepreneurs are passionate about their business and are willing to make it the top priority in their life, in sharp contrast to wantrepreneurs who may talk about their dream but are unable to focus on the business and give it the necessary attention required to succeed.

Sadly, family issues and other obligations must come second at certain stages of starting a new business. Not everyone can sacrifice other aspects of life in order to get a business off the ground in a competitive marketplace. Many of the most successful entrepreneurs are young and launch new ventures before starting a family.

2. Successful entrepreneurs make an ongoing commitment to learning.

While the urge to create a business surfaces in many people at some point during a lifetime, wantrepreneurs limit themselves by not recognizing the constantly evolving business landscape that demands that business people stay on top of trends and other developments.

3. There is no substitute for confidence when it is time to compete in the business world.

While entrepreneurs have a variety of dispositions and personalities, if they want to succeed and rise above wantrepreneur status, they must exude confidence to gain the respect and cooperation necessary to win over lenders, business partners and customers.

4. Entrepreneurs are risk-takers.

If a person is not willing to take calculated risks, then they are likely a wantrepreneur. There are financial risks and many other risks that face every entrepreneur. An entrepreneur must be willing to risk time, money, personal relationships and reputation, staking it all on the new business. This type of risk taking is not easy for everyone, and requires a commitment and confidence that are rare.

5. Entrepreneurs must learn early on that failure is part of the business equation and that it teaches important lessons.

Wantreppreneurs are easily deterred and view failure as a stopping point instead of an opportunity to improve and move forward.

6. Entrepreneurs who commit to networking have a distinct advantage over competitors unwilling to form important alliances.

Based on the assumption that no person can go it alone and expect to achieve greatness,

entrepreneurs recognize the importance of networking in order to form crucial alliances and partnerships to leverage outside resources for business success. Wantrepreneurs often make the mistake of trying to do it all alone, which is a recipe for failure.

7. Money management skills are key for juggling cash flow and prioritizing how to spend the limited cash available.

One of the main reasons cited for business failures is running out of money or cash flow problems. Things like office furniture can add up if you don’t shop smart and cheap. Unfortunately, it only takes one financial misstep to put an aspiring entrepreneur out of business. A wantrepreneur underestimates the importance of each financial decision and is likely to employ poor judgment when making financial decisions, while an entrepreneur carefully weighs all of his options at every turn before making strategic choices designed to best leverage limited resources.

8. Being adaptable to changing market conditions and technological advancements ensures that an entrepreneur remains relevant and survives for the long-term.

A wantrepreneur is reluctant to anticipate and respond to change. Being flexible allows entrepreneurs to take advantage of changes and gain market share from wantrpreneurs who refuse to keep their eyes and ears wide open, alert for shifts in the market.

9. An entrepreneur can effectively promote and communicate his business interests to buyers.

A wantrepreneur understand his business but often fails to clearly explain how the business will solve the customer’s problem.

10. Entrepreneurs are determined to beat the odds and win at all costs.

Wantrepreneurs make excuses for challenges instead of successfully navigating obstacles to finally overcome them. This distinction between an entrepreneur and wantrepreneur is one of the most critical.

Article Contributed by Cameron Johnson

As a startup owner, you’re used to working hard. Long hours, late nights, and no social life is the norm. It’s part of the life you choose when working to get a company off the ground, but it shouldn’t last forever; after all, once the business starts going, you should be able to ease off the gas and breathe a sigh of relief.

Unfortunately, that’s not always the case. In the process of finding success, many startup owners burnout and lose all motivation to keep going. It’s a common problem when there is no work-life balance, but combating it isn’t easy. Here are a few ways you can fight burnout.

1. Find your passion once more.

Doing work you enjoy doesn’t feel like work. It’s only when the work becomes drudgery that you begin to think of it as work. While almost all jobs will have tedious, boring tasks that sap your energy, a huge part of the way you feel is your mindset. Even if you don’t enjoy the specific work you’re doing, take pride in doing the best you can no matter where you are.

If you’re feeling so burned out that you can’t imagine ever finding passion in your work once more, look for opportunities to vary things up. Is there a way you could do something new that would make work more interesting? Even if it means relegating some of the day-to-day tasks to an assistant, this can be a helpful way of combating burnout.

2. Sell your business.

Maybe the burnout you feel is because your interests have shifted. If you no longer want to run your business or want to start another one, why not sell the one you currently own? Depending on the company, it may be worth a very substantial amount.

A startup called Elastica faced a similar situation. After growing for several years, they were acquired by Blue Coat for $280 million. Not bad for a three year old company. If you want to sell your business, take the time to make sure it’s in tip-top shape. Look for as many bidders as possible, since the competition will drive up the ultimate cost of your company. It’s also a good idea to seek out the advice of an investment banker or broker, particularly when that much money will be changing hands.

3. Rebalance your life.

If you’ve lost your passion for what you do, try to find the right work-life balance once more. While it may seem strange, schedule in time for yourself and your family. Doing so will ensure you spend time with those close to you and spend time relaxing. During these scheduled times, put away your phone and computer. To properly combat burnout, you have to leave your work at work. Don’t bring it home with you. Spend some time exercising and getting the blood pumping. Enough time away from the desk, and you’ll feel your energy and passion returning.

Fighting burnout is easier in theory than in practice. It takes actual work to fight the effects of work. While it may seem like an oxymoron, learning how to combat burnout — or better yet, avoid burning out — will allow you to maintain your enthusiasm and passion over a much longer period of time. It’s vital to the success of your company that you focus your energies where they’re needed most. If you’re able to relegate some of the work to an assistant and give yourself some breathing room, do so.

About the author:

Cameron Johnson is a business consultant and entrepreneur. Over the course of his career he has conducted case studies on both social media optimization and non-profit marketing. Cameron has also had the opportunity to speak at international business conferences and was recently recognized as one of the world’s top 100 advertising experts to follow on social media.