10 REASONS WHY EARLY-STAGE COMPANIES NEED MANAGEMENT CONSULTING

Smiling business people having a meeting in conference room

Management Consulting: Not Just for Established Businesses

Although entrepreneurs in start-up mode commonly think that management consulting is utilized only by businesses that have established themselves or grown to a significant size, the truth is that early-stage companies can benefit from management consulting a great deal. While I’m clearly an evangelist for business consulting services, having seen firsthand how they can turn things around for troubled companies and help new businesses get off the ground, I don’t think I’m too biased when I say that the start-up phase is one of the times when management consulting is most useful.

The purpose of management consulting is largely to offer advice. And who can really afford to turn down the advice of a seasoned professional? Certainly not entrepreneurs who are growing a business from scratch – even if they’re experts in their industry. There’s always value in having someone review your plans, offer second opinions on ideas and help identify areas for improvement.

So here are 10 reasons why early-stage companies especially can benefit from management consulting.

1. Management Consulting Helps You Keep up with Changes

Businesses, old and new alike, existing in an ever-changing landscape. What’s relevant, timely and appropriate one day can be tired, outdated and inefficient the next. A good business consultant stays abreast of fluctuations, from market instability to technological improvements to changes in standards or best practices, so entrepreneurs can stay focused on their primary goal: launching successfully.

2. Management Consulting Provides Honest, Unbiased Feedback

An entrepreneur will get glowing feedback about his idea from family, friends and even his professional networks. Before you know it, he starts thinking his concept is foolproof. But truly unbiased and actionable advice is hard to come by unless you harness management consulting to take a look at the big picture. You’ll get feedback not only about the concept behind your business, but about the details of execution, organization and other critical matters. At Shared CxO, we pride ourselves on having outsourced executives who offer completely honest advice without the personal agendas or blinders that entrepreneurs will encounter when seeking feedback from others.

3. Management Consulting Solves Problems

In my experience working with incubators and interacting with entrepreneurs daily in the busy start-up scene in San Francisco, I’ve seen plenty of entrepreneurs hit brick walls at critical moments in their business’s development. Whether the obstacle stems from a lack of planning, a lack of research, a lack of knowledge about a particular facet of business or something else, I’m positive that management consulting can help frustrated entrepreneurs solve problems. And the more experienced an executive is, and the more diverse his background, the quicker he can untangle even the most complicated issues facing early-stage companies. That’s why we’ve cherry picked only the most seasoned business veterans to work with our clients.

4. Management Consultants Love Forward Momentum

Management consultants simply love to see a company grow and achieve its goals. As such, an outsourced executive providing management consulting is incredibly motivated to help entrepreneurs overcome issues and move forward with their plans. They triumph when the start-up’s off the ground. And it’s easy to get caught up in this excitement. It’s one of the reasons I love working with early-stage companies!

5. Management Consulting Teaches Entrepreneurs Valuable Lessons

A good management consultant doesn’t just drop by, solve everybody’s problems and disappear. In management consulting an executive guides entrepreneurs through the process of finding solutions for the stumbling blocks they encounter. Entrepreneurs actually learn from the engagement, and become better equipped to handle issues in the future.

6. Management Consulting Helps Entrepreneurs Stay Focused and on Deadline

Because of the sheer amount of activities involved in starting a business, it’s easy for entrepreneurs to lose focus unless guided. Management consultants can keep entrepreneurs laser-focused on the tasks at hand. Management consulting also involves prioritizing activities so that entrepreneurs have a step-by-step walkthrough for what has to happen before the big launch. I’ve also seen entrepreneurs lose track of time or spend too much time on one particular aspect of business, at the expense of others. Business consultants can keep things running on time.

7. Management Consulting Involves Top-to-Bottom Analysis

Quality business consultants leave no stone unturned when analyzing an early-stage business – from the initial concept to the business plan, market research, company structure and organization, and post-launch next steps, management consulting examines everything holistically. Management consultants, as experienced executives, catch overlooked aspects of starting up a company. They’re a second pair of eyes and ears to watch things carefully.

8. Marketing Consulting Sets Companies up for Branding

One of the biggest challenges for start-ups is simply being discovered. Brand awareness comes with tremendous time and effort, and often financial investment. Part of management consulting is teaching you how to plan an initial marketing campaign that gives your brand a shot in the arm. You’ll learn the channels that will produce the biggest ROI and how to create a scalable, practical plan so that you don’t exceed budget or spend too much time on a potentially fruitless activity.

9. Trust is Implicit in Management Consulting

I completely understand the “play your cards close to your chest” attitude that some entrepreneurs adopt from the get-go. Nothing could be worse than investing time, effort and money in a unique business idea, only to find parts of the idea or the idea in whole stolen by someone with more resources to make it happen. But in management consulting, an outsourced executive honors privacy without question. Entrepreneurs don’t have to worry about details of their business plan leaked – everything is kept strictly confidential, which is not always the case if you appeal to peers or professional networks for advice.

10. Management Consulting Dots I’s and Crosses T’s

With a management consultant on board, you’re no longer solely responsible for everything. Management consulting involves quality assurance and identification of areas of improvement. While entrepreneurs still need to be vigilant, with an executive on their side to help make sure everything is complete, correct and ready for the next stage of growth, they can have peace of mind.

Ready for Management Consulting? Take a look at our CEO advisory and outsourcing services and browse our membership packages, or contact us to discuss your needs.

Why Entrepreneurs Need To Take Breaks

stevejobs

As an entrepreneur, it can be extremely difficult to take time out and re-calibrate.

Everything you are is focused on bringing your vision come to life, and making all of the stress, personal sacrifice and fatigue worthwhile.

But does it actually increase your chance of success to take a time out? Step back and make sure you’re making the right choices, and there isn’t a great opportunity staring you in the face. It is very easy to miss the obvious when you are buried in growing a company.

You must be willing to go over and above and push yourself more than the average person. No question. But what is rarely talked about are the physical and mental downsides of not taking breaks from your obsession.

Mental Downside Of Being Hyper-Focused

There is a never ending litany of people saying that the only way to be successful is to be focused, give it your all and it will all be worth it. I completely agree with this (and have lived it) but personally feel this needs to be further defined.

Studies show that optimal mental efficiency happens on 7.06 hours of sleep. There is significant decline with less than 6.47 hours or more than 8.03. Since you are making important decisions as a business owner, it is vital you operate at your peak mental ability as much as humanly possible.

Will this be possible all the time? Of course not. Just make sure you keep this reality in the back of your head. The last thing you want to do is make a dumb decision on a lack of sleep!

Physical Downside Of Being Hyper-Focused

I really don’t need to even dive into this. We all know what happens when we work to much and exercise to little, but did you know that stress has a direct impact on your immune system and rate of metabolism?

The hormone cortisol is released as part of your “fight or flight” response to stress. While there are temporary benefits to this, in the long term there is a significant reduction in both your immune system and digestive track. This leads to greater risk of serious diseases in general, and the slow down of your metabilism has been linked to things like diabetes and intestinal blockage.

Another study shows that AGE DOESN’T MATTER in how the body reacts to stress!

Personal Downside Of Being Hyper-Focused

Beating back weight gain, overcoming illness and getting caught up on sleep can usually be accomplished when you’ve either failed miserably or reached the mountain top.

The bad decisions made in business and more importantly your personal life are not so easily vanquished.

Losing clients, friends, significant others, or relationships with your children have serious impact on your mental health. While you may be able to suppress these issues in the short term, they will catch up with you.

There was a study released last year showing that married business owners had a divorce rate of 82%. With a national average of just under 50%, this is to great a coincidence to ignore.

In short, you need to think long and hard about how much these relationships mean to you. Not only can they damage you emotionally in the long term, destruction of your personal life will make business success that much harder.

Taking Breaks Doesn’t Mean Losing Focus

Having experienced almost everything mentioned in this article personally, I want to say that this has not turned off my entrepreneurial fire in the slightest.

It has just made me take the occasional timeout, re-calibrate, make sure the decisions being make are good ones, spend time with my daughter, friends and build great relationships with clients.

If you do the same, it will make those late nights and short term sacrifices easier to deal with and make them more rewarding when you have people to share them with!

Accelerating Startup Innovation Through Crowdfunding

Crowdfunding concept

Everyday I get pitched a new idea.

Choosing which to get involved in as a mentor, investor or connector is becoming easier as my personal network grows (many thanks LinkedIn) but more importantly because the ability to mitigate risk and prove viability quickly is becoming easier.

This is not to say that raising capital is becoming easier. For those of you who read “Open Letter To Angel Investors & VCs” you will understand where I’m going with this article.

In short, let’s quickly discuss new opportunities available to shorten the window of time needed to get seed stage capital, minimum viable product, and secure beta clients.

Crowdfunding Seed Stage Capital

Let’s face reality. Crowdfunding is the future, and if the SEC will ever get out of the way and allow equity crowdfunding to the masses, our current recession would be over in no time. In the meantime, while the regulators argue about how we can spend our money, let’s talk about leveraging this option to both raise initial seed capital to get proof of concept.

Putting together a great campaign is a skill in itself. It requires creative thought, excellent planning, significant time spent on PR strategy and connection with social media influencers. If you are able to put these pieces together with a great product or service, then communicate it well to the target demographic, it is reasonable you can get enough funding to build your proof of concept.

In the end, it boils down to your social media influence and public relations. If those two are accounted for, your chances of success are reasonable.

In the meantime, don’t forget to put as many things in place prior to the end of the campaign you will need to build the MVP. Whether that be vendors, manufacturers or advisers.

Building Minimum Viable Product

Now let’s assume your crowdfunding campaign was a success.

In the age of 3D printing, access to manufacturing globally and web/mobile development advancements, it never ceases to amaze me how so many startup founders REFUSE to quickly build an MVP (minimum viable product) and get to market.

If your campaign is a success, you have a potential customer base built in by default. Not only can you leverage the buzz created, you also have the ability to communicate with these potential customers and get their feedback on what they would like to see. Instead of hiding everything from them until launch, just ask questions.

It is better to make modifications prior to launch, than wait for the bombardment of feedback when you are slammed with customer service, fulfillment and the other headaches which come with company growth. Making pivots is a blunt reality in business. It is better to account for them as early as possible.

Leveraging Beta Clients

Growing your business requires getting an initial client base, whether you call them beta clients, early adopters or just plain customers.

By going the way of crowdfunding and heavy engagement with your backers, you have the opportunity to build a loyal customer base full of brand ambassadors. Not only is this vital to growing the company in the short term, in context of raising additional capital, being able to showcase a rapidly growing customer base enables proving market viability to investors.

While many investors shy away from crowdfunded projects in the early stages, this position is rapidly shifting as acceptance of crowd based idea validation expands. If you are able to prove how many backers have turned into ongoing customers, you now have an extremely valuable weapon at your disposal.

Accelerating Traditional Capital Raise

Since it realistically takes 6+ months to raise seed stage capital for 99% of startups, it makes sense to spend that same amount of time planning out your crowdfunding campaign with the next step goals as outlined above.

Not only does this enable you to be further down the road prior to raising traditional capital, you also have a much stronger position in equity negotiations and might not even need it. Investors are looking for proof of concept, minimum viable product, initial customer base and growing revenue. All of these are signals of risk mitigation on their investment.

By strategically leveraging crowdfunding, you have the opportunity to both accelerate growth of your company and the time spent raising additional capital. When risk is lowered, you will be amazed at how quickly the doors can open up.

This is just a top level of things to think about when planning your entrepreneurial journey in today’s world of opportunity. I would appreciate your feedback and ideas you can share with others getting ready to make the leap!

WHY IS INTEGRATED MARKETING SO IMPORTANT?

Integrated_Advertising

In spite of the internet’s popularity, which really goes without saying you would think, there are still businesses relying on traditional media exclusively for marketing. At the same time, most businesses are using digital marketing in some way, but treat it like a separate entity.

No matter which medium is being used, it’s important to use both offline and online channels and create an integrated marketing campaign. Combining both mediums can increase the results of a marketing campaign for all kinds of businesses from startups, small businesses, to established companies.

How Prospects Follow Up With Businesses

There are several reasons why going with an integrated approach is so important. Prospects that come across ads through offline mediums such as magazines, newspapers, radio and TV often turn to the Internet to find more information about a business. This is especially the case for companies that favor branding campaigns more than direct response campaigns.

Surprisingly, the same thing applies to Internet businesses. Prospects try to see if an Internet business can be found offline, have phone numbers they can call, and have a real office location. This is to ensure that the business they are about to deal with isn’t some fly-by-night scammer that’s only interested in taking their money. This is one of the key reasons why it’s important to have a presence in both mediums.

Where Prospects Spend Their Time Looking Online

To be specific, people use the Internet to look up the reputation and reviews of businesses they’ve come across offline. Today, there are a large number of platforms to find information about businesses. There are search engines, review sites, social media sites, and community sites that can all be used to determine if it’s worth doing dealing with a business.

These platforms allow businesses to appear where consumers are searching after they’ve been exposed to their offline marketing, but only if they jump on that opportunity. One of the best ways to integrate offline and online is to build a SEO campaign. Your business will show up in related search terms about your brand, products and services. This puts you in control of your reputation and allows you to stay competitive in your industry.Digital Marketing Opens Your Business Up to a Bigger Audience and Increases Sales

An integrated advertising effort can really open up your business to a bigger audience as well. A large portion of your market will spend more of their time online, so investing in online ads can only extend your reach. In fact, many businesses find online campaigns to be more cost effective if not just as effective than offline campaigns.

Using display advertising and retargeting via pay per click can help maximize the effectiveness of your offline campaigns. It will help continue the conversation from your offline efforts, exposing consumers to more of your marketing. This increases conversions and your ROI because consumers tend to go with businesses they are more familiar with, and also because consumers are more likely to buy after multiple engagements.

The Integrated Approach Is Ideal When Gaining Momentum Is the Goal

Businesses that are trying to create buzz about their business or any kind of viral campaign need to go with an integrated approach. In one example, the Athens tourism board used offline info points to get locals to share their viewpoint of their city while also getting tourists to spent time with locals. The whole case study can be read here.

This was followed up by an online social media campaign where local submitted photos of events, special locations and the architecture that could be found in Athens. This user generated content turned viral and soon thousands of submissions were being sent in. The result was user generated content being used to create buzz and market tourism for Athens.

Conclusion

Going with an integrated approach is necessary to stay competitive in today’s market. Both mediums complement each other in many ways. Whether you’re a digital agency or a business that strictly uses traditional media, it is worth the effort and investment in building a campaign that combines and takes advantage of both mediums.

6 Tips On Pitching Your Startup Idea To Angel Investors

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1. Put in sweat equity BEFORE you go after investors.

99% of investors have been in your shoes. Never forget that. They put in incredible time, effort and focus to become successful and now have the ability to help startups. If they don’t see themselves in you, the chances of them backing your company go down immensely.

2. Have real interaction with your target customers BEFORE you go pitch to investors.

So often startup founders get so tied up in their idea (and fear of it being stolen) all of their research is done in secret. No human interaction. Get out, talk to friends, co-workers and family. Call up people in your projected demographic and get their feedback on the idea. It’s amazing the insight and FREE feedback you will get that can help you answer questions from investors you never could have anticipated.

3. Do your homework and determine which investors are the right fit for your startup.

So many startup founders only focus on their pitch, not on who they are pitching to. Remember that you’re talking to a fellow human. While at the end of the day it may strictly come down to how good your idea is, most investors will tell you that it’s their faith in YOU as an entrepreneur that is the biggest factor.

4. Make sure to focus on the value proposition of your idea as a solution. Not just a how much money it can make.

No matter what your startup idea is, at the end of the day you have to appeal to investors as potential customers and paint a picture of how it solves a problem for the end user. If you are truly solving a problem, it then comes down to execution and marketing to gain success. If convince potential investors that your value proposition is realistic, they will pay attention to your valuation in much more detail.

5. Limit your pitch deck to 10 slides or less, have a short explainer video produced.

The investors get 30, 40, 50 ideas presented to them each month. Not to mention all of the companies they own and have invested in. Complex business plans and pitch decks often cause them to tune out of your presentation. Start your presentation with a well done video that explains your business and the value proposition. Then dive into your pitch deck. Video is a powerful way to gain attention, and also shows more dedication to your business idea than just a PowerPoint presentation.

6. Be prepared to fail over and over before you find an investor.

It’s amazing how many entrepreneurs become depressed after getting turned down on their first pitch and never do it again. Remember that gaining an investor is just like selling a potential customer. Not everyone will buy or believe in your product or service, so why would all investors? Make sure to walk in to your pitch confident that you will win investment capital. If you don’t…try try again.

7 Truths About All Self-Made Entrepreneurs

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Entrepreneurs are a rare breed. It takes a heterogeneous mix of confidence, risk tolerance, self-discipline, determination and competitiveness to start a business and see it through to success.

Entrepreneurs can come from myriad backgrounds and financial and personal support structures, but I most admire entrepreneurs who are self-made. They weren’t handed a business or a trust fund; they took an idea — or their talent for a trade or specialized profession — and set forth to build something. When you don’t come from money and don’t have a fallback plan, the risk, work ethos and single-mindedness needed to be a successful entrepreneur create a business-builder without equal.

That said, I’ve created a list of seven common themes that are true for every self-made entrepreneur.

1. There are only three things you need to start a business — a small amount of capital, a strong work ethic and persistence.

In a perfect world, it would be free to start a business. But it does cost money to file for an EIN and be recognized as a business entity on the state and federal level. You will also likely need capital for upfront infrastructure costs like Web development and accounting software. But aside from this, which should be fairly easily self-financed or put on a zero-interest 12 month credit card, all you really need is a serious dose of self-confidence and a never-say-die attitude. You will want to quit and you will feel like a failure. But success lies beyond these feelings of fear and anxiety. Always remember, failure only exists when you stop trying.

2. To be self-made means to rise from the ground floor. Even the most successful self-made entrepreneurs once walked in your shoes.

Every successful entrepreneur who ever lived started with nothing more than an idea. Remember this when you’re down and feel like the end is near. Use it as motivation to explore new ways of doing things, forge new partnerships or do something crazy. Self-made entrepreneurs are built to tolerate and withstand great risk. Hundreds if not thousands of people have already walked in your shoes. Channel this idea. Success lies ahead.

3. It’s very rare to be first-to-market at anything. We will all have competitors and few ideas are truly original.

“There are no original ideas. There are only original people.” -Barbara Grizutti Harrison

Everyone wants to be innovative — to come up with an idea that will change the world, disrupt an industry or set you apart as an “entrepreneurial genius.” But the truth is that few ideas a unique or new. Some of the most successful tech businesses, for example, are just iterative improvements on successful ventures that have come before.

Don’t get caught up market saturation or competition. No matter what you do in life, you will face stiff competition. Use your closest competition. Evaluate their strengths and weaknesses and improve your business positioning, brand message, and pricing and marketing strategy to get an edge.

At the end of the day, customers are a fickle bunch. If your business does it better, faster, cheaper or smarter than your rivals, you’re bound to find success.

4. Doubt will haunt you until you’ve reached “success.” Learn to get used to it.

Whether they let on or not, all entrepreneurs have high levels of anxiety about their business — even if they’re on the pathway to success. Running and building a business of any size in any industry requires a huge amount of responsibility and attention to detail. And things will go wrong. Frequently. You’ll second guess yourself (sometimes on a daily basis) and you’ll always fear you’re on the edge of failure. The sooner you accept this reality, the sooner you’ll learn to cope.

5. The first big milestones were equally challenging for all of your competitors.

Getting your first sale will be a big day. But there will be many days that pass as you ramp up your business and prepare to bring home the bacon. If you launch your business and have a slow start, worry not.

Very few businesses charge out of the gate at full speed. Growing a business can be a slow and painful process and you will need patience and persistence to weather your early setbacks. Remember, every great businessman had to start from somewhere. And for most, that somewhere was the same place you’re starting from now. 

6. The emotional and financial pressures you feel have been felt by every entrepreneur before you.

Just as you will have to get used to living with doubt and fear of failure, you will also need to adapt to the daily, weekly, and monthly financial pressures of being your own boss. As an entrepreneur, you have chosen to break away from the security of a bi-weekly paycheck for the chance at something more. Fortunately, you can find solace in the fact that every self-made man or woman who came before you had the same emotional and financial pressures bearing down on them. If they could do it, so can you.

7. In a fledgling business, learn to rely on no one but yourself for 90 percent of the work.

If you’re an independent-minded person, there is a good chance you’re used to doing most of the work yourself. As an entrepreneur, being a master-of-all-trades is in the first line of the job description. Working as part of a team is a valuable skill and one you’ll surely need as your business grows and you begin to scale, but in the early stages of every business you’ll need to rely on yourself for 90-100 percent of the work. While you’ll be burning the midnight oil most days of the week (and weekend), the satisfaction you will feel after finding success will be without equal.

This post originally appeared on the author’s LinkedIn column here.

Brendan Mangus is Principal Consultant at Colorwheel Media Consulting, a new breed of tech consultants specializing in helping early and mid-stage startups refine their product, define and grow their market and community and execute their outreach and go-to-market strategy. Prior to starting his consulting practice, he spent more than a decade providing marketing, branding and public relations counsel for a variety of clients.

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

Is Your Idea Really Worth Investing In?

Time Is Money

Do you have a great idea for improving your industry? For most people, inventing a new product is foreign territory. There are multiple steps (and costs!) involved in bringing an idea to life — like market research, product design and prototyping, patent and legal fees and marketing, just to name a few.

At Edison Nation Medical, we have worked with thousands of inventors and entrepreneurs over the past decade, and we’ve learned a lot about which ideas are viable and which are not, particularly from a financial point of view. We do know that innovation requires expertise and money.

The question is, how do you know if your idea is worth investing in? And, if it is worthy of investment, how much?

Calculating ROI

ROI is a performance measure used to evaluate the efficiency of an investment. To calculate ROI, the return or net profit derived from the investment is divided by the total resources that were invested (the initial investment plus any subsequent costs). The results are expressed as a percentage:

ROI = (Net Profit)/(Invested Resources) X 100

The primary advantage of an ROI calculation is its ability to quantify the benefits of investments and returns of varying size. For instance, if Jack and Cindy invest in two different products and Jack makes $50,000 in profits and Cindy makes $100,000 in profits, you might think that Cindy made a better investment.

But if Cindy’s costs were $80,000 and Jack’s were only $10,000, Cindy’s ROI is 25 percent and Jack’s is 400 percent, making Jack’s investment the better one. The absolute dollar value of profits generated is meaningless without considering the investment that was required to generate those profits.

Net Present Value (NPV) and Internal Rate of Return (IRR)

As informative as ROI may be, its greatest shortcoming is that it ignores the importance of “time value of money.” Consider two projects (“A” and “B”) that may require the same investment and eventually earn the same return; if the return for “A” occurs in just one year while the return for “B” is not realized until year five, the better investment is “A.”  Calculating the time value of money is especially important for new product introductions that typically entail a long developmental lead time and generate returns that vary year by year.

To do this, create an Excel spreadsheet and follow these steps:

  1. In the first year, show the total investment needed to launch your invention idea.  Enter this as a negative number to reflect your anticipated investment costs.
  2. In years one through five, you need to calculate your projected free cash flow (in other words, your anticipated profits after all expenses have been paid that year). If you have an income statement this will end at Net Income.
  3. From this Net Income, add back your Depreciation and Amortization. Subtract Capital Expenditures and increases in Net Working Capital (e.g. increases in year-over-year Current Assets minus Current Liabilities).

Net Income
+ Depreciation/Amortization
- Change in Working Capital
- Capital Expenditure
—————————-
= Free Cash Flow

Then calculate the following important ratios:

  • Net Present Value (NPV): This is the present value of a series of cash flows generated by an investment, minus the initial investment. NPV is calculated because of the important concept that money today is worth more than the same money tomorrow. The basic rule of thumb is that if a project is NPV positive, it should be accepted.
  • Internal Rate of Return (IRR): IRR calculations are commonly used to evaluate the desirability of investments or projects. The higher a project’s IRR, the more desirable it is. The easiest way to calculate IRR is to use the formula built into Excel. Simply type “=IRR” in an empty cell and follow the prompts to complete the formula. A simple way to think of IRR is that, over the next X years, your invention may have some years with losses (in particular, year one), some years with profits (if all goes as planned), and some years that break even. IRR is a bit like calculating the average profitability over all X years, with extra credit if the investment gets paid back sooner rather than later.
  • Payback: This measures the amount of time it takes a firm to recoup the initial costs of a project without taking into account the time value of money.

Going back to our earlier example, Cindy’s IRR on her $80k investment in the first five years turns out to be 13 percent with a payback in two years. This is not a bad outcome for a personal investment, and it beats the returns she might get on a money market fund, but it is not a “25 percent return” as the ROI suggests.

Likewise, Jack’s product idea is still a very attractive investment, assuming he can keep costs to $10K and generate the anticipated profits as quickly as expected. But for him to represent his invention idea as having a potential “400 percent return” would also be incorrect since his true rate of return is 209 percent. The NPVs for both investments in this case are positive, and thus should be pursued.

Innovation Is a Business Opportunity

Why is any of this important to an inventor? Adjusting the forecast model may give insight into how best to proceed in bringing a new product to market. If the initial investment can be minimized through a shared developmental program, a project’s IRR can actually improve – depending on changes to the project’s return and the timing of those returns.

In our experience, those who view their invention as a business opportunity (and keep their emotional attachment to their idea out of the equation) are the most successful. Calculating the fundamental financial metrics is a critical first step to ensuring that you are making smart business decisions grounded in real data. If your idea still looks financially viable, it may well warrant the investment of significant time and money. If not, you may want to start brainstorming your next big idea instead.

Bobby Grajewski is President of Edison Nation Medical, a healthcare product and medical device incubator and online community for people that are passionate about healthcare innovation. Prior to joining Edison Nation Medical, Grajewski, a serial entrepreneur, co-founded two online companies (Heritage Handcrafted and eCollectors) and spent 5 years in venture capital and private equity both in the middle market and at larger LBO firms. 

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

Is BYOD Leaving Your Company Wide Open to Security Breaches?

bring your own device

For most companies, the days of giving every employee a company BlackBerry are over. Nowadays, most people would rather work on a device of their choosing, usually an Android smartphone or an iPhone.

This new BYOD culture has its advantages. Namely, it saves the company money on tech (about $1,300 per mobile user), it saves time negotiating and managing bulk contracts, and in many cases, it means the company only pays for a portion of the user’s phone plan. Employees who bring their own devices to work also tend to be happier and more productive, saving about 81 minutes of time per week.

But with these advantages also come new security headaches. BYOD means you’re entrusting your company’s data to your employees and their devices. And with all the recent data breaches that have compromised millions of customers’ personal data, your company can’t afford to take any chances with its devices.

Say Goodbye to One-Size-Fits-All Data Security

BYOD doesn’t just apply to your employees’ phones. Many companies are also allowing their employees to use their own tablets and laptops for work. This means there’s a much broader range of devices and brands that IT has to worry about.

While Active Directory security will cover the majority of Windows laptops and BlackBerry Enterprise Servers will still be useful for a few tactile keyboard–loving phone users, these leave out other brands your employees might be using, most notably Apple.

The Big Apple Security Myth

There is a myth about Apple products that has persisted for over a decade: that Apple products are inherently more secure than Windows products. The typical argument is that, while Windows is fighting new viruses every day, Apple computers have seen almost no viruses since their inception.

While this is true, it’s not because Apple computers are more secure, but rather because Apple holds a smaller share of the PC market. Macs comprise only about 5 percent of the global market share of personal computers. Hackers usually go after the bigger target, which for years has been Windows.

What this means for companies is that employees who own Apple devices are just as vulnerable as everyone else and should be subject to similar security measures. It’s not just viruses that you need to worry about, though.

In 2011, Horizon Blue Cross Blue Shield potentially compromised the information of nearly 840,000 customers when two MacBook Pros were stolen. Phishing expeditions, device theft, and user error are just as likely to leave you vulnerable as a virus.

The Cost of Securing Employees’ Personal Devices

While the cost of purchasing devices may go down with a BYOD policy, it can be intimidating to consider the cost of securing all these new devices. For instance, Apple provides excellent encryption for individual computers with its FileVault 2, but managing it on a company-wide level is not as easy.

However, along with the increase in BYOD comes an uptick in cloud-based security management solutions. You no longer have to spend upwards of $30,000 deploying an in-house security solution. There are options that make it possible to manage data encryption for less than $100 per user per year.

Allowing employees to bring their own devices can still be a money saver, but your company needs to rethink how it’s handling data security. Big data breaches are constantly in the news these days, which means security is top of mind for your customers. Implementing an airtight business-wide security solution instills confidence in your customers when entrusting your company with their personal information. And when handled correctly, good security might actually make you money in the long run.

Tim Maliyil is the CEO and Data Security Architect for AlertBoot. AlertBoot protects customers from data breaches that damage their credibility, reputation, and business. The company’s managed full disk encryption, email encryption services, and mobile security services deploy within minutes to customers’ PCs, smartphones, and tablets, providing tremendous insight, visibility, and control.

Three Key Hiring Lessons for Growing Startups

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Recently, my startup Speek closed our Series A funding round. It was a lot of hard work, and I am incredibly proud of our team for making it through with our sanity (mostly) intact.

But now it’s time to add to that team. We’ll be leveraging our Series A capital to bring two or three new people on board every month. This means that my thoughts have returned to hiring, and I must say, I feel a lot better about the prospect than I used to.

When we first started building our company, I was relatively new to the hiring process, and it was daunting. This time, however, I feel a little more seasoned, and am actually looking forward to putting what we learned a couple of years ago into practice. Here are some tips about hiring that we learned along the way.

Clearly Define Your Goals

What are you looking to get out of each new hire? Before getting started building a pipeline of qualified candidates, write down some traits that you are looking for. This also gives you an opportunity to reflect upon your company culture (both where it is today and what you would like it to be going forward). Each new hire will have an impact on this culture, so you want to think hard about what you want that impact to be.

Make Sure Diversity Is a Priority

Diversity is an active good in and of itself. It will lend resiliency to your company, limit groupthink and help contribute different perspectives every step of the way. This is not touchy-feely; this is Darwinian. Hiring a diverse team will give your startup a little evolutionary edge known as “hybrid vigor.”

Know Where to Look

When we started building Speek, we wasted a lot of time posting to job boards and trying to leverage our social networks. This was almost entirely unhelpful. Instead, here are some places where we did find great talent:

  • AngelList. AngelList’s “Recruiting” feature allows you to filter users by status, role, location and keywords. I met the highest caliber of talent here and highly recommend it.
  • LinkedIn Recruiter Lite. This is actually the successor to the service we used (LinkedIn Executive). For $99/month, you can reach anyone on LinkedIn (not just in your extended network). You also get additional search parameters, as well as 25 InMail credits a month to reach out to hot prospects.
  • Events and meetups. Getting out into the world and actually, you know, meeting people, is still a great way to find great hires. We found a couple of good developers this way.

I wish we had known all of the above before we began our initial hiring process, but I’m definitely glad we know now.

What would you add to this list?

Danny Boice is the Co-Founder & President of Speek.  Speek lets users do conference calls with a simple link (speek.com/YourName) rather than using phone numbers and PINs.  Danny attended Harvard, is a Forbes columnist, Adjunct Professor at Georgetown and was recently named a Tech Titan by Washingtonian Magazine. You can find Danny on Twitter @DannyBoice or LinkedIn here

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

10 Thoughts Every Startup Founder Secretly Has at Least Once

digital illustration of a female worker with thought bubble

One of our earliest team members, who left to start his own company, sent us an email recently. I’ll paraphrase here, but the gist of it was that despite his being one of the first people to join the team at Ampush, nothing could have prepared him for starting his own company from the ground up.

I’m not surprised. Startup founders are often portrayed as “living the dream”: Young, bright, usually C-level executives of their companies, working on “cool stuff;” running “The Show.” It must seem like an incredibly attractive career option. You don’t have to work up the corporate ladder at BigCo, or even be employed by the startup itself. But reality looks a little different. While there are great articles that give advice for working at a startup and that outline the startup social contract, very few give an open and honest view of what it’s actually like to be a founder/startup executive. (Though Quora offers some solid opinions.)

I thought I’d share my own view. Below is a list of 10 things a startup founder often thinks, but will rarely admit out loud:

  1. “I don’t know the answer.” The entrepreneurial process is by definition one of making it up as we go. It’s important for startup founders and even employees to accept that we don’t (and won’t) know the answer often. Instead, we have to focus on how to get answers, either by experimenting on our own or by cultivating a strong network — and then relying on this network for advice.
  2. “Our company is going under.” Whether or not it’s true, this is a thought that probably flashes through every founder’s head. Because founders know their business so intimately, they can point blindfolded to the three potential things in the market that would run their business into the ground. Founders who succeed are the ones with the personality and drive to do whatever it takes to keep their company alive.
  3. “I’m doing more work than you know.” Whatever work you see a founder doing, they’re actually doing five times as much behind the scenes. Until a company is several hundred people strong, all the other jobs that have to get done go to the founders. This includes but is not limited to: a potential acquisition; a threatened lawsuit; settling a dispute between two VPs; and any other task we can’t delegate, but have to complete.
  4. “I sometimes wish I had a boss.” Decision fatigue is real and when we are the ultimate authorities, most decisions trickle up to us. Founders can’t look up one level and get the answer. Our decision is there for every client, employee, and partner to analyze, criticize and doubt.
  5. “I do take it personally.” We try not to, but we do. Whether you’re an employee who chose to work at our startup, a partner or a client – if you’re unhappy, it makes us unhappy. We started our company because we believed there was a better way. If someone at any level of the company is unhappy, we take it personally and want to do everything we can to fix it. Really.
  6. “I hate office politics.” Founders generally prefer to concentrate on designing and building products or developing a pitch for a big client. What we don’t enjoy is breaking up arguments, dealing with he says/she says scenarios or negotiating someone’s job title. We just want to lead and continue to make the company successful.
  7. “I miss the early days.” The workplace dynamic changes very fast when a company goes from five to 15 to 50. Admittedly, we find ourselves nostalgic for the days of familial camaraderie, knowing everyone’s story, and being able to move quickly. At the same time, we as founders are ambitious and want the company to grow –  but we try our best to maintain that intimate feeling as we scale.
  8. “I’m struggling with work-life balance. A lot.” Yes, we have this issue in spades. While we do live for our company, we also know it can kill us. We don’t go to the gym enough, we eat horribly, and we don’t spend enough time with loved ones. Entrepreneurship can be a very selfish thing. We need to learn to manage our time better and to unplug to make entrepreneurship more sustainable.
  9. “I sometimes question the sacrifice I made.” This one is a big taboo. How can we ask other people to work crazy hours to build this company when we ourselves ask the question, “Is it worth it?” But founders are humans too. When we are working 100-hour weeks, investing all our money, and sometimes hitting walls, we will question what we are doing in the first place.
  10. “I’m not living the dream, I’m living in a dream.” As our company gets traction and starts to scale, sometimes it doesn’t feel quite “real.” It’s exciting but also surreal!  This explains why we may have unrealistic expectations or why we don’t always appreciate the gravity of our words or decisions for the rest of the company. Oftentimes what we’re working on does not feel like a reality – it still feels like a dream.

Jesse Pujji (@jspujji) is the CEO and Co-Founder of Ampush (@ampush), an advertising technology company that helps advertisers achieve measurable business results on mobile-first native platforms such as Facebook and Twitter. Ampush is a top Facebook Ads Strategic Preferred Marketing Developer (sPMD) powering fully-managed solutions for brands and direct response advertisers across travel, e-commerce, financial services, entertainment, and CPG.

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

Perfecting Your Startup’s Operations Stack

startup COO

For the non-techies among us, the word “stack” is commonly used when describing website infrastructure. It encompasses components like the Linux distribution, server, background job processor, web framework and javascript framework. A “full-stack developer” is someone who is at least familiar with the entire set of tools. That is, he or she can dive into any part of the stack and fix things.

Modern startup office operations demand a similar agility from the COO or office manager. Most companies rely on a series of interdependent services that independently don’t do much, but together support a large and complex enterprise. Since we raised our Series A financing last June, I’ve had to become a full-stack ops officer, putting together 14 interdependent systems over two years and troubleshooting along the way.

I want to explain how our ops stack evolved and the rationale behind our choices, so that anyone in charge of opening or running a startup office can start creating a framework for their own ‘stack’:

First — the Money

Although not every startup makes money, they all spend it. The easiest headache to avoid is the tax reporting one. Open a bank account for your business. If you don’t have a tax ID for your company yet, then open a separate personal account. Make sure that all expenses flow through that account. Every ATM withdrawal, credit card payment, debit card purchase, and check should be tied to that account.

Related services are payroll and accounting. Don’t skimp on either; if you do, I promise you will regret it.

When it comes to money, my philosophy has been to hire professionals. Check references, read reviews, and then purchase these services. Although $100/hr may seem high for bookkeeping, the cost of not doing this is even higher. We went with:

  • Silicon Valley Bank. Nice team, favored by our investors, and with a wealth of connections and other services as you grow. Although smaller than Wells Fargo, Chase, or Bank of America, they feel startup-friendly and built for small business.
  • ADP. The other headache to avoid is payroll. There are some really interesting payroll startups coming out like ZenPayroll but limitations in the banks they can deposit into and the states they work in led us to the market leader.
  • Ravix Group. Like I said, buy accounting help. Even if you aced finance, put that prowess into analyzing the statements that a credentialed accountant will run for you each month. Ravix Group was a referral to us, and we use them for both accounting and HR support.
  • Braintree. When it comes to collecting credit card payments, don’t mess around. Braintree was recently bought by PayPal and I see that as a strength. Braintree is going to be around for a long time, and they’ll provide two things PayPal is not known for: easy API integrations and phenomenal customer support.
  • Bill.com. Every company and contractor we pay gets routed through Bill.com for two reasons. First, they pay by check and wire, making it easy for our vendors to be paid quickly. Second, they keep a copy of the original invoice so we always have a record of what each amount was for. Granted, it takes a little bit of time to get used to this and if you don’t use it correctly, these features are moot, but I love it. The Quickbooks integration is great too.
  • Expensify. For employee expenses, there’s nothing easier. We don’t couple reimbursements with payroll, so we can run reimbursements as quickly as we get them. Like Bill.com, Expensify tags every expense with a receipt and saves it for us, reducing our paperwork and saving the paper trail. Plus, they have a terrific iOS app, allowing employees to build expense reports on the go.

Second — the Office

My cofounder and I followed the Silicon Valley lore of working from coffee shops (we preferred Peet’s over Starbucks) before we had an office. Once we could rent an office, though, we always found it on Craigslist.

This bit of advice, granted, could be very San Francisco-specific. So I’ll speak generally: the best deals are the ones you find on message boards and through your network. Often, and I’ve seen this many times, the best office (with the most light, friendliest landlord, and best location) is also the cheapest.

Other major decisions you’ll need to make are office furniture, supplies, and food.

We went with:

  • IKEA. Obviously. But we loved this pine Ingo desk. It’s only $69 and looks much better than the typical Ikea office furniture. That’s why they don’t put it in the office category. Instead, it’s in the kitchen section. For employees who want a standing desk, I found an easy way to make a standing desk riser for under $50 using Ikea wooden legs and their cheapest table top. No matter how you slice it, Ikea is still the winner for lightweight, easily-assembled startup office furniture.
  • Amazon Prime. The $80/year we pay for Amazon Prime is brilliant. Often, deliveries for everything from computer monitors to toilet paper arrives the next day. I can no longer imagine spending my time shopping in a real office supply store.
  • Safeway.com. The one thing we can’t get on Amazon is food (although I understand that may change soon). Rather than make runs to the grocery store, we have the store come to us. We love Safeway.com for remembering what we ordered last time and filling our cart with it. We keep a whiteboard in the pantry so employees can tell us what else they’d like. With almost no exceptions, we’ll order it, and Safeway comes to our door to deliver.

Third — Your IT

At your startup, you probably don’t have an IT guy (or gal) to troubleshoot problems for you. If you’re at all like me, you’ve had to learn hardware and Internet networking on the job. Here’s some more advice: again, don’t go cheap. The few hundred bucks you might save on lower powered, less flexible web hardware will be lost after the first bug. And when it goes down, it’s not just you affected, it’s the whole office. That’s an office full of people that can’t work, and piles of money are burned with every second of downtime.

Here’s our office IT stack:

  • Webpass. We started with Sonic.net (again, specific to SF Bay Area) and pay about $100/mo for 20 mbs DSL speeds and 2 landlines. We’re going to keep Sonic for our landlines and as backup Internet, but the office is going to run on Webpass, a direct ethernet service that uses radio signals from a receiver on the roof to get asynchronous (read: same speeds up and down) Internet to the office. It’s a significant installation fee but the monthly costs are on par with any other business Internet service, and it will scale with our business.
  • Meraki. Apple AirPorts are cool, and were great for our first small office. But then we discovered Meraki, and it was all over. The control over your network, combined with the ability to create multiple wireless SSIDs (including one for guests!) and throttle them so you don’t get squatters is a very helpful service. The cost, relative to what your rent probably will be, is negligible. Get the best routing hardware for your office.
  • Google Apps for Business. Here’s a great solution that doesn’t break the bank. At $60 per user per year, it’s an unbelievable deal for the quality of service Google provides. All of your email, calendaring, chat, and document storage for that low, low rate. If Google Drive existed when we first got started on Dropbox, we’d probably have avoided the next point.
  • Dropbox for Business. I love Dropbox because it’s so easy, but with SkyDrive, Google Drive, and Box all right there too, there are many good solutions to choose from. One thing you don’t need to do is spend tens of thousands of dollars on Microsoft Sharepoint and a fancy VPN. Share with your employees the beauty of modern self-syncing file storage systems. Dropbox for Business is inexpensive and makes it easy to manage your users.
  • Apple. My mom couldn’t believe that we buy everyone a new MacBook when they start. The engineers get 15″ Retina MacBooks, and everyone else gets 11″ or 13″ Airs. These are company property, not gifts, but who wouldn’t like to start their day with a new MacBook? We do this because 99 percent of their day-to-day Scripted experience is on a computer. The few hundred bucks more we spend on Macs than comparable Dell or HP laptopss are negligible in the long run and make our staff happy. Also, always buy Apple Care. You’ll at least break even, promise.

These are the 14 solutions in the Scripted headquarters office stack. Just like an engineer, COOs and office or operations managers need to be well-versed in today’s SaaS solution landscape to continually improve and optimize the office experience for their employees.

So, what’s in your ops stack?

Ryan Buckley is Co-founder and Chief Operating Officer of Scripted.com. Ryan holds an MBA from the MIT Sloan School of Management and an MPP from the Harvard Kennedy School of Government. Still and always a Cal Bear, Ryan graduated from UC Berkeley with degrees in economics and environmental sciences. He likes to dabble in PHP, Python, Ruby, Quickbooks, and whatever else needs to be done at Scripted HQ.

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

How to Get More Done During Your Summer Travels

Pretty young female passenger at the airport (shallow DOF; color

Question: How do you stay productive and get work done while traveling?

Practice the 4-Hour-Work-Week Mentality

“The most important thing to consider when traveling is the need to have a team who can take care of tasks that you won’t be able to be on top of 100 percent due to flights, meetings, etc. Plug in for a few hours a day to focus on tasks that only you can do. Also, practice the “traveling” schedule a month before so you can see potential issues and train employees to avoid any issues. “

Derek Capo, Next Step China

Set Up a Dedicated Time

“There’s nothing you can’t do while traveling if you have a laptop, iPod and smart phone. Try to set up a certain time during your days of travel to really focus on MUST-DO priority tasks.”

Pablo Palatnik, ShadesDaddy.com

Focus

“Airplanes are one of my most productive work environments. Prep in advance so you can work on big projects that require large amounts of time and focus. And don’t buy the Wi-Fi! Keep yourself cut off from the world to avoid distractions.”

Robert J. Moore, RJMetrics

Capitalize on Quiet Time

“I’ve found that some of my best, most focused work happens when I’m on a plane. There’s something magical that happens when you can focus on tasks without the distraction of fast Internet. I try to prepare some projects for every plane ride that can be done offline, such as writing.”

Patrick Conley, Automation Heroes

Sync Emails Offline

“I fly almost every week and have found it very productive to sync all my emails offline. I type more thoughtful responses on the plane or train when there aren’t other distractions. I also keep a second battery for my phone if I’m using it for emails (versus my laptop). To stay connected when traveling, I also keep a wireless connection card to get online anywhere at anytime. “

Shradha Agrwal, ContextMedia

Plan for Technical Difficulties

“Virtual working is fantastic and can be a seamless experience for you, your team and your customers. But there is nothing worse than being abroad without the proper working communication technologies. Before heading out for travel, run through your inventory and assess your needs. MiFi devices may be a good investment. And if you’re traveling internationally, stock up on the proper converters.”

Doreen Bloch, Poshly Inc.

Set Your Goals

“If your goals are set and your priorities are in line, you should have no problem getting work done while traveling. Everyone always asks how I am productive from exotic locations like Bali, Costa Rica and Nicaragua when I could be surfing. The answer is simple: I need to hit my goals to continue the lifestyle I choose, and if you constantly remind yourself of those, you will simply not slack off.”

Matt Wilson, Under30Experiences

Look Into Coworking Spaces

“Whenever I’m traveling, I contact a local coworking space about working out of the location while I’m in town. Having a place to go helps ensure I actually focus on work and gives me a place that’s conducive to working (which hotel rooms rarely are).”

Thursday Bram, Hyper Modern Consulting

Work on the Plane

“I like to write blog posts/do long-term roadmap thinking on the plane. There is something about trying to do work on a plane — your work either turns out incredible or you fall asleep. They are both good outcomes. “

Jordan Fliegel, CoachUp

Group Tasks by Location

“When I travel, I try to group to-do items in the “Getting Things Done” fashion. For instance, I’ll have a list of items I can do on a train or plane, issues to think about while I’m waiting in lines and projects to work on when I have a larger gap in my schedule. By being ultra clear on what I can do when, I’m quite productive. “

Elizabeth Saunders, Real Life E®

5 Steps for Giving Your Mobile App Exposure on a Global Scale

Flags Of Countries Around The World

Transcreation:  The process of adapting a message from one language to another, while maintaining its intent, style, tone and context.

If you’re a mobile app developer or have a business with a mobile application, you’ve likely already put hundreds of hours into building, testing, and launching your app(s). With all of that time and energy invested into your application, why aren’t you translating your application in order to maximize your global exposure?

We are in the midst of a mobile app explosion. Here’s a look at what the research firm Gartner is projecting in the mobile app market:

Table 1. Mobile App Store Downloads, Worldwide, 2010-2016 (Millions of Downloads)

2012 2013 2014 2015 2016 2017
Free Downloads 57,331 92,876 127,704 167,054 211,313 253,914
Paid-for Downloads 6,654 9,186 11,105 12,574 13,488 14,778
Total Downloads 63,985 102,062 138,809 179,628 224,801 268,692
Free Downloads % 89.6 91.0 92.0 93.0 94.0 94.5

Source: Gartner (September 2013)

When drilling down past this global data and looking at specific countries, more nuanced trends emerge. App Annie reports that Japan has surpassed the U.S. as the number-one country in app-generated revenue. Simultaneously, the BRICS—Brazil, Russia, India, and China—made formidable gains in app downloads, setting the stage for strong future revenue growth in multiple languages.

At the end of last year, Google Play announced translation services for Android developers.  Here are three highlights from Google:

  1. Zombie Ragdoll combined app translation with local marketing campaigns. In doing so, they found that 80 percent of their installs came from non-English-language users.
  2. Dating app SayHi Chat expanded into 13 additional languages and saw 120 percent install growth in localized markets and improved user reviews of the professionally translated UI.
  3. The developer of card game G4A Indian Rummy saw a 300 percent increase with user engagement in localized apps.

When parsing through the global data and looking at these three examples, it becomes clear if you’re only distributing your app in one language, you are missing out on a large portion of potential consumers. Here’s how to take your app global and ensure that your hard work is getting the respect and recognition it deserves.

1. Set Clear Goals

Before you dive into the world of translation, figure out what your goals overall are. Mobile app developers generally want four things:

  1. More downloads
  2. Better app store rankings
  3. More revenue
  4. Continued user engagement

There are hundreds of ways to get to these goals, of course. Translating and localizing an app is only one of them, but it’s an increasingly important one. Once you’ve weighted how important each of these categories are — i.e. we’re only focused on downloads or we’re predominantly focused on revenue — you’ll be ready to start setting clear consumer targets and build strategies to have consumers find you.

2. Set the Strategy

If localization is on your goal list, the next step is to set a clear strategy in terms of target market. Ask yourself these questions:

  • What markets do we want to enter?
  • What languages are needed?
  • What content within our app will be translated?
  • Who will handle the actual translation?

Certain apps fit into certain markets better than others. The Wall Street Journal reported that China was the largest market for Fotopedia, a company that makes photo travel magazine apps — representing 20 percent of visits (compared to just 14 percent from the U.S.). Just three years before, China was their 10th biggest market. Today they operate in 10 languages, including simplified Chinese.

3. Get Found

By the end of 2014, ITU predicts there will be nearly 3 billion Internet users worldwide. Between English, Spanish, and Chinese, you’ve covered more than 50 percent of the global online population. Add in 10 more of the world’s most popular languages and you’ll have 90 percent of the world’s online spending power covered.

To boost your chances of tapping into these growing online markets, consider appeasing search engines and app stores by taking these four steps:

  1. Generating quality content that is culturally sensitive
  2. Utilizing relevant key words in the local language
  3. Gaining positive reviews that are relevant to the app store reviewers
  4. Listing all relevant languages and app features

Once you’ve found your consumers and they’ve found you, you’ll need to have your app translated and localized to ensure you maximize user engagement and don’t lose users.

4. Streamline Your Translation

Updating any app can be challenging. Updating a multilingual app can be an even larger challenge — one that requires adaptability and integration. When transcreating app experiences for our clients, we focus on three things: the strings and remove the executable code, the context of their app, and delivering clear instructions to the translator — nobody is a mind reader.

We did this for Baby Chords, an app that arranges notes so that music is very easy to play. By helping them expand into more than 10 languages, Baby Chords is now gaining customers from all corners of the globe.

5. Don’t Settle

Whether you decide to translate your app internally, through a translation agency, through crowdsourcing translation platforms, or through machine translation, you’ll need to revisit your initial goals and determine the level of quality you’re looking for — and how much you’re willing to pay.

Remember that app localization is just the tip of the iceberg. When you’re selecting a translation provider, be sure that they can help you translate other modes of communication — confirmation emails, fulfillment for in-app purchases, translation of newsletters, localization of websites, etc. — or at the very least advise you on how to navigate ensuing language barriers, so that you can truly capture the attention of the users you’ve been missing out on thus far.

I’ve written about transcreation and translation pricing in the past, and would interested to hear your thoughts on these two topics as they relate to mobile app translation. Feel free to email me directly at ryan.frankel@verbalizeit.com or leave a comment below.

Ryan Frankel is the CEO of VerbalizeIt, the company that connects businesses and travelers directly to a 19,000-person translator community to deliver real-time quality translation. He is considered an expert on global communication and international customer engagement. Ryan is also a Wharton MBA alumnus, former private equity investor for Goldman Sachs and an endurance athletics enthusiast. You can reach him via email at ryan.frankel@verbalizeit.com.

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.