Entrepreneurs have a knack for seeing opportunities where others don’t. If you see 2010 as a good time to start a business despite the recession, then you may have an entrepreneurial perspective. Now you need to know if you have some of the other characteristics of successful entrepreneurs.
What helps entrepreneurs these days is that virtual business models put more emphasis on talent and less on administration and infrastructure. After all, e-commerce solutions can give you an instant storefront presence and credit card processing services can handle your receivables, and SEO can give you access to online customers with a minimal up front investment.
So now all you need is the right set of skills and characteristics. Consider whether you have the following ingredients of successful entrepreneurship:
1. Talent.
You should be able to identify at least one area of ability that makes you stand out from the crowd. This can be anything: technical expertise, sales skill, marketing insight, or logistical know-how. Since small businesses are talent-driven, you have to start out with the belief that you have the raw material with which to compete and succeed. It helps if your skills happen to be in areas with growing demand, such as health care or computer technology. If you have medical knowledge or a skill such as Web design, you may have a little wind at your back.
2. A new or different perspective.
“Me-too” businesses have a tough time making a mark, especially during a weak economy. Your business should be founded on the idea that there is a better way to do things. Ideally, you should have enough experience in your chosen industry to be familiar with the normal way business is done, and to have developed some unique insights as to how that can be improved. Being able to clearly articulate a differing perspective should be central to your business plan. In turn, it should also become the vision you communicate to everyone you hire, and the selling proposition you use to pitch potential customers.
3. A business network of connections and affiliations
Experience is valuable not only for knowing how other companies do things, but also for helping you form a business network that will get your new company up and running more quickly. Remember, people–especially business-to-business customers–can be reluctant to do business with a start-up. You should have some contacts who respect you enough personally to take a chance on your new business. Of course a network of contacts can also help you identify potential investors, suppliers, and talented employees. If you need to build your network think about joining a business community of interest.
4. A war chest.
Don’t start your business venture unless you have identified sufficient funding to not only get started, but to keep your business running through the inevitable lean months at the beginning. Many businesses are forced to go under just as they would be starting to gain some momentum, simply because they underestimated the amount of time it would take for profits to start rolling in. Funding can be from your own savings, outside investors, or loans. Of course, external sources of funding are harder to come by in a recession, but you can use techniques such as virtual offices to reduce the need for this type of funding.
5. Ability to take risk.
You should start any new business with a commitment to succeed, but an acceptance of the risk involved. Entrepreneurs are often people who are willing to trade a sure thing working for someone else for even a risky chance at running their own show.
6. An eye for complementary talent.
Once you start hiring people, you should think in terms of rounding out the team rather than looking for people just like yourself. It can be a mistake to have too many would-be leaders in one organization. If you have an independent and visionary outlook, you might do well to complement that with a strong administrator who can take care of the details.
7. Persistence.
Not only does it take a long time for a new business to gain traction, but entrepreneurs often don’t succeed on their first try. As long as you have confidence in the first two items on this list–your talent and your unique perspective on the business–you should be willing to keep trying.
Category: People & Relationships
It’s an unfortunate fact of life (and business). Out of the blue you get a nasty email from someone. Sometimes it’s about an article you’ve written. Sometimes it’s accompanied by a refund request. Sometimes it doesn’t seem like it’s tied to anything at all.
Or maybe you discover someone writing malicious things about you on a blog or a forum. Or maybe some other negative things suddenly start getting tweeted or posted to Facebook about you, your products or your business.
Stuff happens. As a business owner and entrepreneur, the more successful you become, the more you open yourself up to criticism, negative feedback or just plain being attacked.
As someone who is both a writer AND a business owner, I know all about what happens when you’re dealing with unwelcome criticism. (I write fiction so yes, I’ve dealt with my share of negative feedback.) But if this is something new for you, or even if it’s not new but you’re feeling like you’ve just been sucker-punched by something out of the blue, I thought I’d share a few insights to help you get through it.
1. Know you’re not alone.
We’ve ALL been there. And I mean exactly that. It doesn’t matter how small or big your business is, stuff like this is going to happen. So know that no matter what just happened to you, there are a lot of entrepreneurs and business owners out there who will both sympathize and emphasize.
2. See it for what it is.
All criticism is not created equally. Sometimes what someone is saying has absolutely nothing to do with you and everything to do with their own issues. Sometimes they have a legitimate complaint but the person is so unhappy with their own life they blow it completely out of portion because they just want to strike out at someone and you’re the one they picked.
And sometimes they have a legitimate beef AND they handled it fine, but you just didn’t want to hear it. An example of this is some of the criticism I’ve gotten from some of my stories. The people were thoughtful and absolutely right. And I hated them. (Until I got over myself and slunk back to the keyboard to make the edits.)
Now the third option doesn’t happen too often (unless you’re a fiction writer) but the first two do. You just have to see it for what it is. If there’s something buried in the anger and name-calling you can use to improve your products, services or business, by all means use it. But know the rest of it has absolutely nothing to do with you and everything to do with them.
(And you’ll know when the criticism is right. Trust me. Your gut will tell you.)
3. Be kind to yourself.
When these things happen, it can hurt. And that’s okay. Call a friend. Or better yet, your mother (if you can). Write about it in your journal. Take a walk. Don’t bury your feelings, let yourself feel bad and then let it go. Don’t tell yourself it doesn’t matter and let it fester inside you, deal with it. Get it out of you. And then let it go.
4. Let someone else deal with these things.
Whenever possible, have someone else in your business be a filter for stuff like this. Let other people take care of refund requests or just read the nasty emails and they can decide if there’s a legitimate complaint buried in there or not. Protect yourself, there’s no need for you to see everything or deal with everything. Yes you’ll have to step in if something big happens, but let other people take care of the small stuff. The small stuff is what wears you down anyway. Save yourself for the big things and don’t worry about the rest.
My 95-year-old grandfather is quite a character. Yep, he’s still going strong, takes 2 pills a month (yes, you read that right, a month) but he always makes sure he gets his gin in every day. (Forget yogurt, the key to living a long and health life is definitely the gin.) He’s also a very successful businessman.
One of the things he taught me is you should always ask. What’s the worst that will happen? They’ll say no and you’ll be no worse off than you are now.
Now, while I subscribe to that and DO ask, I’ve realized there’s a bit of an unspoken rule here. Yes, I think asking and negotiating is part of business and life. So why do some questions put my teeth on edge and others don’t? Where’s the line?
I’ve been thinking about this and that’s when it hit me. The questions that bug me, that cause my defensives to go up, are the ones that imply a lack of respect for me.
Let me illustrate with a story. At a Dan Kennedy event a few years ago, Gene Simmons was speaking. He opened it up for questions and this guy with what appeared to be a relatively new business stood up. In the course of the conversation with Gene, he said “Well, I know you see the potential of what I’m doing, but I can’t pay you to help me market it. Would you be willing to take it on for a percentage of the business?”
Instantly groans filled the room. The would-be business owner turned around and said “It doesn’t hurt to ask, does it?”
Now on one hand he’s right. If Gene said no (which he did) he’s no worse off than he was before he asked.
On the other hand, I would argue that he IS worse off because he just lost the respect of a chunk of the people in the room (and probably Gene as well).
Why? Because that’s a question that implies a lack of respect for both Gene and himself.
What this would-be business owner is saying is this: “I don’t believe enough in my business to take out a loan or do what it takes to hire you. Nor do I really believe that YOU can do what you say to make me a success.”
Because if he believed either of those, he WOULD find the money because he would know he would get a huge return on his investment.
Now, there are limits here. A smart business person would figure out what he or she should expect to gross from their business, and then would know how much to invest to get that. So, for instance, let’s say the potential of the business is $100,000 a year. It wouldn’t make any sense at all to invest $250,000 to get $100,000. (Unless the $250,000 is a one-time thing and you were pretty convinced you would continue to make $100,000 every year, at which point by year 3 you’d start making pure profit.) Now, would it make sense to invest $10,000 to make $100,000? I’d say so.
In addition to that, the moment anyone says “I know you see the potential in this” they’ve lost me. If they have to TELL me that because it’s not so obvious I can see it for myself, we have a problem on our hands.
So, while I do believe in Grandpa’s adage which is “it doesn’t hurt to ask” I also believe that BEFORE you ask, make sure what you’re asking isn’t implying a lack of respect.
Article Contributed by Heather Dorso from TRUSTe
Web sites are increasingly asking consumers to allow access to their address books to send invitations to their friends on the consumer’s behalf. A common technique to increase the site subscriptions, and benefits for the user by bringing their friends into the service.
A recent article in the New York Times highlights the complexities of implementing an address book import feature. Done well, such a mechanism provides clear notice to consumers to ensure that they understand what will happen to the addresses in their address book, so the consumer has a meaningful opportunity to consent. Implemented poorly, it can leave consumers distressed and even mortified to find their personal and professional contacts getting messages demanding to know why they aren’t on the latest social networking site.
In TRUSTe’s experience of certifying the online privacy practices of thousands of web sites, the use of address book contacts import features is rising. Here are some general “best practices” recommendations for helping web sites make their “Contacts import” features live up to consumer expectations.
1. Ability to Skip using the Import Contacts feature
If you invite consumers to let you import their email address books, make sure they can opt out or skip that step. Make the Skip option equally prominent compared to the Submit button, so the consumer is provided a clear choice around using the feature.
2. Messages Sent on Behalf of the Consumer
If you send messages to the consumer’s contacts, place “on behalf of” in the From line. This will alert recipients that the message is not actually from the consumer’s e-mail address. Offer consumers a preview of the message to be sent that includes header and body text.
3. Use of the Contact Information Supplied
Notify consumers at the Point of Collection and in your Privacy Statement about how you will use the imported contact information. Explicitly state whether you will be sending a one-time invite or a reminder email in addition to the original invite.TRUSTe also recommends stating that the imported contact information will not be used for other purposes beyond sending the requested invite or reminder messages.
4. Requesting Login Information for Other Accounts
When asking consumers to supply login information they use for other services such as an email account to import their address book, provide clear and conspicuous notice about how your site will use this information. This will help avoid surprising users who think they are choosing the same login information to register with your own site.
5. Additional Checks if Providing Incentives to Import Contact Information
If you are providing an incentive, such as a contest entry or rewards points, for consumers to import contacts, additional CAN SPAM requirements may apply. Be sure to provide an opt-out from receiving additional email messages. Additionally, some recipients ask for a global opt-out mechanism if they want to receive no further such e-mailed invites through the web site’s servers, regardless of who subsequently imports the recipient’s address as part of their Contacts. A site should make sure they have a way to block further such invites to e-mail recipients upon request, even if resulting from actions by the user’s contacts.
The guidelines above should help ensure that consumers get an opportunity to provide informed consent. Address book import can be a powerful feature to help a site expand its reach and can make use of the site much more convenient for the user, provided the feature is implemented carefully and respects the consumer’s consent.
About TRUSTe
TRUSTe Privacy Seals help consumers click with confidence by guiding them to trustworthy Web sites. More than 2,400 Web sites rely on TRUSTe industry best practices to help them make the right decisions about privacy and protecting confidential user information. Half of the top fifty Web sites are certified including Yahoo, AOL, Microsoft, Disney, eBay, Intuit, and Facebook. Independent research shows that when a TRUSTe web seal is present, visitors are more likely to share personal information, register at higher rates and spend more money. To learn more about internet privacy services for SMBs, visit http://www.truste.com/privacy_seals_and_services/small_medium_business_privacy/index.html
I’ve been thinking about the topic of this article for a while. It’s lately becoming more and more evident to me that social media is seductive- both in a business sense, and a personal one. On a business level, social media is seductive because it represents a way to create new relationships and fill our business pipeline. Done right, social media can be the last lead generation strategy you’ll ever need. (Not that I’d recommend this, it’s always wise to have multiple marketing channels to best stabilize your business.)
The personal element is the one I want to focus on here, because it’s this element that isn’t talked about very much. Social media is seductive- and it’s easy to be seduced. What this means is that you can be pretty much anyone you want to be within the social media space- and you can present yourself as more outgoing, charming, vivacious, or even attractive than you are in real life (especially if you use a picture of someone who is much hotter than you.)
We all have a desire to be liked and admired and respected, and social media gives us a way to do this. In some ways, everyone wants to be a social media rockstar, to benefit from the accolades, recognition and adulation that comes from everyone loving you. (Or at least seeming to.)
The problem with this, as with any kind of online (and potentially one-sided) relationship is that no matter how scintillating or fantastic you are within social media, you are, at the end of the day, still a real person with real assets and real liabilities.
Social media connections and online relationships have a place in your life, but should never substitute for real life/offline connections with people who have a chance to spend time with you, know you, and hang out with you- not just worship an image of you.
The other challenge in terms of balancing social media with real life relationships is that in social media, you can always find someone to talk to on Twitter, and you’ll be able to find people who agree with everything you say. Your personal popularity can be at an all time high online, but this doesn’t automatically translate into a golden life offline.
In fact, your real life relationships may suffer from too much social media popularity. I was speaking with a client earlier today who has recently joined Twitter. She has been spending a lot of time learning the system and has been tweeting very often. She has made some powerful connections and constantly feels drawn to tweet multiple times per day- even when she has agreed to spend time with her husband. Any lull in their conversation sees her picking up her Iphone and updating her Twitter status. It’s lately been causing some strain in her marriage because technology is, at times, more powerful and more consuming than her real life relationships.
With the constant stimulation and 24/7/365 access we can have to social media networks, it becomes more important that we create some kind of balance in our use of the social media sites. The psychology of social media is such that we do desire connections. We just need to make sure that the lure of our online connections doesn’t overshadow our interest in our offline ones.
Dr. Rachna Jain is Chief Social Marketer at The Mindshare Corporation. Rachna works with speakers, consultants, authors, and small business owners to develop and execute effective social media marketing strategies. Her proprietary persuasive social media process (sm) focuses on building influence, credibility and visibility online. This translates into greater recognition, increased website traffic, faster lead generation, a shorter sales cycle, and more opportunity for her expert clientele. She blogs regularly at The Mindshare Blog