Where Do You Go For Quick Tech Advice?

Question: Your absolute favorite place to get business tech advice in a pinch? (e.g. Quora, Twitter, etc.) Why?

Hop Onto HubSpot

“When I need to learn about business tech in a hurry, the first place that I always look is HubSpot. They have a very complete knowledge base on all things related to Internet marketing. Their white papers and case studies are especially helpful because they give real-life examples of how companies can use different strategies in conjunction to move closer to their organizational goals.”

– Lawrence Watkins | Founder & CEO, Great Black Speakers

Read Feld Thoughts

“Brad Feld is the most consistently awesome source for tech startup advice. His blogs and books explain the details behind choosing co-founders, pitching investors, hiring early employees, compensating board members, and more. And his past and present leadership with top tech startups, accelerators, and venture capital firms lends huge credibility to his words.”

– Neil Thanedar | CEO, LabDoor

Keep the KISSmetrics Blog

“The KISSmetrics Blog is phenomenal at taking difficult technology and digital marketing techniques and breaking them down into step by step instructions. I love the no-nonsense approach they have to writing how-to, and also how they don’t feel any need to pack in a bunch of keywords so they pop up on Google News. They focus instead on writing truly useful content for tech businesses.”

– Seth Kravitz | CEO, Technori

Look at Your LinkedIn Network

“I have a very smart and diverse network, and within minutes of shooting off an inquiry, I’ll get at least a dozen fantastic responses. The best thing about this approach is that I know I can trust these answers because they are grounded in real expertise and experience.”

– Alexandra Levit | President and Founder, Inspiration at Work

Take It to Twitter

“I usually turn to Twitter when I’m looking for advice, since I have a vast network there. It’s especially helpful when I’m looking for suggestions of new websites and tools either for my company or for a client. I’ve found people on Twitter to be one of the most immediate sources of advice and often quite accurate in terms of what I’m searching for.”

– Heather Huhman | Founder & President, Come Recommended

Utilize Advisers and Partners

“Anytime we run into a “wall”, the first thing I do is pick up the phone to call business advisers and partner companies, like our distributors. We love Quora and other sites for generic answers, but advisers and partners have a much greater feel for the context in which the issue exists. Their intimate knowledge of our business allows us to quickly and creatively uncover the core of the problem.”

– Aaron Schwartz | Founder and CEO, Modify Watches

Try Zappos Insights

“Zappos launched a new site called Zappos Insights where entrepreneurs can tap into the Zappos team and a network of fellow entrepreneurs for support and insights. Whether it’s tech advice or culture issues, it’s awesome.”

– Luke Burgis | Director, ActivPrayer

Create an Email Group

“Rather than wasting time on Twitter, I send an email to a small group of people that have been helpful before. Some are friends, some are acquaintances, others are those who helped me develop my sites. But usually within 20 minutes, not only do I have an answer to my question, but I have some one to help implement it if need be. Consider using social media to find these contacts, and then get more focused.”

– Sean Ogle | Founder, Location 180, LLC

Use Community Groups

“Join Facebook and LinkedIn groups that have some solid tech experts in them. This way, you can reach out in an emergency to get some quick advice. You’re also building relationships at the same time.”

– John Hall | CEO, Influence & Co.

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

The 6 Skills That Made These Entrepreneurs Successful

I’m not sure if there are any other occupations out there that require as many skills and abilities as it takes to be an entrepreneur. If you’re a pilot, you need to be familiar with the operation of your aircraft – but you don’t have to source its parts, build it and then sell it to an airline in order to be successful. If you’re an engineer, you might draft plans – but then you pass your designs off to others to see them brought to reality.

That’s not to say that these fields aren’t important or challenging – just that they’re not as all-encompassing as entrepreneurship. When you’re a solo business owner, every aspect of your company’s operation falls on your shoulders. You’re a visionary, yes, but you’re also a project manager, team leader, administrative assistant, sales person and more, depending on what the day calls for.

Given how complex the work of an entrepreneur can be, I want to take the next two weeks to break down some of the skills that you must have to be successful in this type of business. And since I’m a sucker for case studies, I’ve paired each skill with an example from a great entrepreneur throughout history.

Hope you find them helpful when it comes to cultivating your own skill as a business owner!

Never Be Satisfied

The best entrepreneurs are never satisfied with what they’ve already achieved. They’re innovators through and through, which is why you won’t see them stop and rest on their laurels. Even if they experience what the rest of the people in the world would consider to be “success,” entrepreneurs are already scheming away over how much bigger and better their next projects will be.

Entrepreneur: Milton Hershey

You’re probably pretty familiar with the name “Hershey,” but what you might not know is that this entrepreneur didn’t get his start in chocolate. In fact, the young Milton Hershey first experienced success with the Lancaster Caramel Company, based off a unique recipe he developed throughout his apprenticeships. Though the company was successful, he saw a brighter future for chocolate and sold his caramel company for $1 million in 1900 (roughly $25 million in today’s dollars).

Hershey tasted success with his first company, but it wasn’t enough for him. Cultivate this same sense of never being satisfied if you want to make it to the top of your industry as well.

Be Ambitious

Entrepreneurs don’t change the world through small actions – they do it through ambitious projects that radically alter the status quo in their industries. Because of this, the “holy grail” of all entrepreneurs is a product or service that’s so disruptive that it changes the core way people view, interact with and label the world around them (just as we don’t “conduct internet searches,” but instead “Google” for answers on the internet).

Entrepreneur: Mark Zuckerberg

When it comes to ambition, is there anyone better to look towards than Facebook titan Mark Zuckerberg? Zuckerberg didn’t necessarily start out with the goal of changing the way social interactions occur on the internet, but once he realized the potential of his fledgling social network, his ambition took over – pushing the company forward to more than 1 billion registered users around the world in 2013.

When it comes to entrepreneurial ideas, don’t just think small – think global. Think big and shock the world with your outrageous ideas.

Be Fearless

If you want to succeed in business, you can’t let a little thing like fear stand in your way. Yes, running your own business can be scary at times, but if you let that fear overtake you and prevent your forward momentum, you don’t stand a chance at finding entrepreneurial success.

Entrepreneur: Sara Blakely

Sara Blakely is the founder of Spanx – the billion dollar women’s undergarment company that’s become a household name. When Blakely first came up with the idea for her flagship product, she knew nothing about garment manufacturing, nothing about the patent process and nothing about retail. But she didn’t let the fear of the unknown stop her. By researching and outsourcing tasks when necessary, Blakely’s product line took off, making her the youngest self-made female billionaire in history.

If you get scared, find a way around it. Fear, when left unchecked, can seriously impede your process and threatens to derail your business entirely if it isn’t managed.

Take Risks

It’s not exactly revolutionary to say that entrepreneurs need to be risk takers. But the thing is, the best business people don’t just take risks for risk taking’s sake. Instead, they assess the situation and then take calculated risks that are designed to maximize their success while minimizing their overall exposure to unnecessary risk.

Entrepreneur: Mark Pincus

Before founding Zynga, the million dollar social gaming company, Mark Pincus took a major risk in walking away from a guaranteed funding source for his first company, Freeloader. Because the terms of the deal would have required Pincus to hire a CEO of his investor’s choosing, he opted to take a major risk and walk away from the deal – even though he had just a few months of cash left.

In the end, Pincus’s gamble was successful, as he was able to secure funding from another source and then sell off the company in order to provide startup funding for Zynga. It was a calculated risk, for sure, but a risk all the same – the exact model you should strive to emulate in your own business endeavors.

Follow Your Intuition

We all have a certain amount of in-born “gut instinct,” but only those entrepreneurs who choose to hone this sixth sense and rely on it to guide their business decisions will be truly successful.

Entrepreneur: Steve Jobs

Really, is there any better example of intuition at work in entrepreneurship than that of Steve Jobs? What’s fascinating about him isn’t the number of products he sold or the number of sales records he broke, but his seemingly-instinctive ability to develop concepts that consumers didn’t even realize they wanted yet. Before the launch of the iPad, the tablet market was stagnant. So much so that entering the field was a risky proposition. Yet somehow, Jobs reworked the concept to create the iPad, building an immediate fervor for a product that had no initial market interest.

Interestingly enough, Jobs recognized the role intuition played in his success. In an interview with Walter Isaacson published in the New York Times, Jobs attributes the development of his own powerful sense of intuition to time spent wandering around India at the age of 19:

“The people in the Indian countryside don’t use their intellect like we do,” he said. “They use their intuition instead … Intuition is a very powerful thing, more powerful than intellect, in my opinion. That’s had a big impact on my work.”

You don’t need to drop everything for an international sabbatical in order to develop your own intuition. Instead, take the time to listen to your inner voice and allow the information it gives you to find its way into your work every so often.

Know Your Vision

Finally, entrepreneurs have a way of taking what they see in the world and twisting it into the visions they have in their heads. They don’t accept reality as it is and work from there. Instead, they see reality and distort it in their minds – allowing them to cultivate visions and make breakthroughs that ordinary people could have never envisioned.

Entrepreneur: Bill Gates

One of the best examples of entrepreneurial vision is Bill Gates – the man who’s widely credited with both launching the personal computer revolution and with developing the world’s first piece of software (alongside business partner Paul Allen, of course) in 1974. At the time, “computers” as we know them now didn’t exist. Gates and Allen actually developed their code by borrowing time on the mainframe computers owned by educational institutions and large corporations.

To make the leap from this type of computing arrangement to the idea that PCs could be owned and operated by individual households around the world was truly an instance of vision at work.

Maybe your vision of the future won’t have the impact of the PC revolution, but that doesn’t mean that it won’t be important for you, your business and for the world. Learn to see what isn’t there yet. It’s a critical skill that all entrepreneurs must master in order to experience success.

Do you relate to any of these entrepreneurs in the way you’ve handled your own startup business challenges? If so, share your thoughts below.

This post originally appeared on the author’s blog.

Sujan Patel is the founder and CEO of Single Grain, one of the top Digital Marketing agencies in San Francisco, CA. With more than 10 years of Internet marketing experience, Sujan leads the digital marketing strategy for companies like Sales Force, Yahoo, Intuit and many other Fortune 500 caliber companies.

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

You Raised Some Capital! Now What?

Capital is precious—and must be treated as such. Below are three points companies should consider when allocating their funds in hopes of growing their businesses:

Hire Quality over Quantity

Many startups operate under the myth that their people should be paid a minimal amount, or even receive no salary for a period of time, in exchange for the larger payoff down the road. That may be fine for founders or executives that have other means to ride out the early days, but the reality is that most employees still need to “put food on their tables.”

It’s better to pay a smaller group of employees more money than to hire a larger number of folks on the cheap. That is, hire quality over quantity. Why? For starters, people who are paid less, even if they’ve bought into the startup opportunity, generally become dissatisfied sooner than later. Secondly, larger groups tend to work more slowly, bogged down by more meetings and lack of consensus.

While it sounds contradictory, smaller teams—especially top talent paid well—can deliver bigger results. Not only are they more motivated and productive, they also are forced to be more creative, they decide and act more quickly, and they build stronger bonds. All of this translates to a greater return on investment for the business over the long-term.

Keep Pitching the Company

When building a management team, many companies seek strong business development talent in one or more individuals. That’s fine, however in the early stages of startup, these leaders should remain focused on effectively pitching the company to raise more money—versus trying to drive sales.

After all, startup companies are typically small and not ready to take on tons of new business. Additional fundraising will enable a company to develop and market its product(s) sooner and then scale to handle increased business and revenue opportunities.

Investing in leaders with exceptional presentation and relationship-building skills is extremely valuable to a startup company, helping to succinctly get the desired message across to other potential stakeholders.

Launch Sooner than Later

A simple, reliable product today is better than a full-featured one tomorrow. Too many startup companies hold off launching their product(s) while trying to incorporate every last feature and functionality.

Not only does this delay time-to-market, but more complex products tend to have an increased number of “bugs” and support issues, which ultimately eats into existing capital more quickly.

Focus on a minimal number of features that will lead to the launch of a robust product sooner than later. And then use your remaining capital—not to mention revenue from the faster, successful initial release of your product—to incrementally add features and functionality.

While the above may seem obvious to most, many companies continue to take steps in the opposite direction when allocating their capital, only to find themselves struggling to stretch out their funds. The smartest, most successful startup companies tend to more efficiently manage their capital in these key areas.

Vijay Nadkarni is founder, president, and CEO of Mobiplex, Inc.

How To Animate Your Branding

Animation is a form of creative technology that is increasingly being used by businesses to increase their brand awareness and boost audience engagement levels.

There are various styles of animation, e.g. explainer, whiteboard, 2D, 3D, stop motion, motion graphics and so forth, which can be used to:

Promote products and services
Boost internal communications
Strengthen brand ethos

Animation and Branding

Seth Godin defines branding itself as “the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another. If the consumer (whether it’s a business, a buyer, a voter or a donor) doesn’t pay a premium, make a selection or spread the word, then no brand value exists for that consumer.”

If branding is all about making the consumer talk about your business, or a particular product/service belonging to your business, then your mission here is quite clear:-

You have to make your consumers talk about your business!

Branding is about spreading the word about your business as far and as wide as possible. This could be through any of the following:-

Customer reviews on e-commerce websites,
Discussions on social media platforms,
Video testimonials on youtube, or
Video conferences (e.g. google’s recent launch of hangouts on air for businesses)

So, how could animation help strengthen your branding in ways besides the more conventional the more commonly utilization of explainer videos?

Well, there are several possibilities:-

Animated Infographics: When movement is added to static data, facts and figures, these are referred to as animated infographics.

Businesses are using animated infographics in increasing frequency, especially for sales presentations and highlighting the findings of research and development work.

The use of animated infographics is catching on because they can make it considerably easier for the audience to understand and remember the information that is being presented.

Animated Logos: When a logo is made to appear as if it was in motion, it becomes animated logo.

Including an animated logo could make a world of difference to your digital marketing collateral, such as websites, e-libraries online brochures, etc.

Animated logos are also great for impressing viewers in the intros of videos used for marketing and educational purposes and livening web pages and business presentations.

Animated Banner Advertisements: If you would like to improve the effectiveness of your online adverts, then you could consider making your banner advertisements animated.

The beauty of animated banner adverts is that they can convey more than one message at a time; similar to the way animated greeting cards work.

Animated YouTube Advertisements: If you are a YouTube user, you will be aware of the adverts that appear before a video starts to play.

Animation is being used in many of these adverts as it is great tool for producing videos that need to generate a high impact in a short space of time.

This is especially true for products that would be difficult to explain using more traditional live filming such as apps and software platforms.

Takeaway

Animation is a form of creative technology which can be used in a variety of different ways improve brand recognition and engagement levels, besides the more conventional explainer videos.

As the importance of both video and content marketing is growing, it may now be time for you to consider how you could start incorporating animation into your marketing strategy.

Dr Manroop Takhar is the founder of Qudos Animations, a leading animation studio that excels in producing outcome focused animations for businesses.

You can email him: info@qudos-animations.com, or circle him on Google Plus.

Do You Make These Networking Mistakes?

QUESTION: WHAT’S ONE COMMON NETWORKING MISTAKE OR TURNOFF THAT YOU SEE BUSINESS OWNERS MAKE?

GLOATING ABOUT THEIR PERSONAL WONDERLIFE

“We live in an era that affords many new entrepreneurs the opportunity to redefine work-life balance. But even though your life might be the most outlandish saga since Deep Space 9, talking about your personal life for a moment too long can morph “Hmmm…interesting guy,” into “This person is full of themselves.” Don’t over-emphasize personal stories when business is what brought you together.” – Kent Healy | Founder and CEO, The Uncommon Life

FOLLOWING UP TOO LATE

“When you meet someone in a networking environment, it is important to follow up by email within 24 hours or connect through Twitter or Facebook. We live in a fast-paced world, so if you meet someone for the first time and send an email four days later to say thanks and follow up, the timing of your note communicates, “The time I spent with you really wasn’t that important.’ Be quicker.”

– Erica Dhawan | CEO, Erica Dhawan, LLC

FORCING FOLLOWERS TO VERIFY HUMANITY

“If I send an email or direct message on Twitter and get back a verification link, I’m immediately turned off. Setting up barriers in networking doesn’t make sense when the point is to enable easier communication! Be personal, don’t act like a robot. Those who don’t have enough time should be outsourcing non-personal tasks more to make the time to connect without all the hoop-jumping.”

– Kelly Azevedo | Founder, She’s Got Systems

NOT LISTENING TO THE OTHER PERSON

“Sometimes we get so passionate when talking about our products, it seems as if no one else is in the room. That passion is great and people like to hear others who love their jobs. However, it is important not to dominate the entire conversation and allow the other person to share what is important to them. The more you listen, the higher likelihood of discovering a business problem you can solve.”

– Lawrence Watkins | Founder & CEO, Great Black Speakers

WANTREPRENUERS MISLABELING THEMSELVES

“You know who they are! The ones who are at these events looking for people to help them get started with their business, they’re still unclear about what exactly they do, or they don’t want to tell you their business idea because they haven’t started and they don’t want you stealing their millions. They’re immediately closed off to any type of relationship unless you can help them.”

– Angela Pan | Owner/Photographer, Angela B Pan Photography

LEADING WITH A BUSINESS CARD

“A big no-no at any networking event is walking up to an individual or group and chucking your card to everyone within seconds. It feels like you are desperately fishing for leads in the hopes that if your card touches enough hands, you might make a sale. It would be just as effective for these people to walk into the middle of the room, launch their cards into the air, and yell, “52 pickup!””

– Seth Kravitz | CEO, Technori

NOT SHOWING UP AT ALL

“As Woody Allen said, “80 percent of success is showing up.” Many business owners (including myself) can at times feel too busy to attend events, but that’s a mistake. It’s critical to get out of the office, bounce ideas off of other people, get fresh perspectives, and meet potential clients, vendors, and employees. None of that can happen if you don’t show up.”

– Phil Frost | Co-Founder and Managing Partner, Main Street ROI

ASKING TOO MUCH, TOO SOON

“A serious networking error is focusing too much on what you can get out of an interaction. If you meet somebody by asking for something from them, it’s a huge turn-off. However, if you offer up your services to help them achieve their goals without asking for anything in return, chances are they’ll offer to do the same, and they’ll enjoy working with you. Don’t bargain or trade, focus on giving.”

– Travis Steffen | Founder, WorkoutBOX

FORGETTING IT’S A MUTUALLY BENEFICIAL RELATIONSHIP

“Networking isn’t just about you – you should be thinking about how you can help the other person too. Why would this stranger want to help you if you’re only in the relationship for yourself? Think about how your skills and expertise might be useful to your networking contacts and give, give, give before asking for something in return.”

– Heather Huhman | Founder & President, Come Recommended

FAILING TO RESEARCH ATTENDEES

“Many events share attendee lists through Eventbrite or other sites. The biggest mistake one can make is not being thoughtful about who you target, and then not being prepared to speak with those folks. The more that you can make the conversation personal and thoughtful, the more likely you are to succeed when meeting new people. Take advantage of great resources like LinkedIn and prepare wisely!”

– Aaron Schwartz | Founder and CEO, Modify Watches

CONFUSING NETWORKING WITH SALES

“Too many business owners view networking as an opportunity to sell themselves or their company. Networking is about making connections that can lead to sales down the road. The biggest turnoff is when someone starts talking pricing and “What can we do for you?” at an event. Network, meet people and use the follow up as a way to set up a sales meeting. If you network properly, the sales will come.”

– Aron Schoenfeld | Founder & CEO, Do It In Person LLC

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

14 Things You Should Know About Finances Before Starting Up

QUESTION: NAME ONE THING YOU WISH YOU KNEW ABOUT MONEY AND FINANCES WHILE STARTING UP. DID IT LEAD TO A MISTAKE?

SAVE SOME FUNDS FOR LATER

“Getting money in the door is great, but high expenses can blindside you if you’re not putting money away for a rainy day. Having a buffer in the bank gives you confidence that you can keep the doors open long enough to get more cash into the business, and it also

helps reduce entrepreneur stress.”

– Nathalie Lussier | Creator, Nathalie Lussier Media Inc.

PAY THOSE BILLS ON TIME!

“I started my business as a 22-year-old kid right out of undergrad. I didn’t understand the importance of keeping track of my bill payments, especially student loans. As a result, I routinely paid them late, hurting my credit score. This hindered me later on as I wanted to access capital to grow, but was not able to by traditional means. I recommend I Will Teach You to Be Rich by Ramit Sethi.”

– Lawrence Watkins | Founder & CEO, Great Black Speakers

LEARN QUICKBOOKS QUICKLY

“In my last startup I left the bookkeeping up to my partner because he claimed to have basic knowledge with QuickBooks software. Unfortunately, his lack of expertise created thousands of dollars in accounting bills (not to mention the wasted hours). If I had known more about the program, I could have cross-checked his work and corrected course. Bookkeeping is too important to overlook — learn it.”

– Kent Healy | Founder and CEO, The Uncommon Life

HIRE AN AWESOME ACCOUNTANT

“There are a lot of solid online solutions that try to replace having an accountant, but ultimately nothing’s better than the real deal — and the real deal can often be found for a great price, as long as you ask around the tech community for someone who fits the bill.”

– Derek Flanzraich | CEO and Founder, Greatist

PAY YOURSELF A MARKET RATE SALARY

“Entrepreneurs tend to undervalue and underpay what we do at our company. Unfortunately, this creates a fundamental flaw in all of our financial models, thus clouding our ability to make smart decisions from our numbers. Even if you can’t afford to pay out cash yet, have your accountant track it to give you a clear view on the company’s profitability and financial health.”

– W. Michael Hsu | Founder & CEO, DeepSky

UNDERSTAND HOW CASH FLOW WORKS

“A pile of account receivables is not the same thing as cash in the bank. Having learned this painful lesson many times early on in my startup days, I always stress to other startups to hold off on new hires or expansion plans until the cash is actually in the bank. It’s painful when you hire someone due to a big pending payment, only to have it delayed, and then telling them, “I can’t pay you.””

– Seth Kravitz | CEO, Technori

KEEP CONSISTENCY IN BILLING TERMS

“We have small and big partners, from local boutiques to the Major League Baseball Player’s Association. When we started Modify, we had stated payment terms, but were always flexible with partners. Ultimately, the lack of clear policies significantly impacted our business. Not only did we create more work through negotiations but we also lost track of receivables, which puts us at a risk with cash.”

– Aaron Schwartz | Founder and CEO, Modify Watches

INCLUDE AN INTEREST CLAUSE

“It’s important to include an interest clause in contracts so that a company knows they will face a penalty if they do not pay you on time. Otherwise, there are no repercussions to them sending you a late payment, since it is unlikely you’ll take legal means to go after them for it. If they know they’ll have to pay interest if they’re late, they have incentive to get you your payment on time.”

– Stephanie Kaplan | Co-Founder, CEO and Editor-in-Chief, Her Campus Media

THEORY AND PRACTICE AREN’T PARALLEL

“I majored in finance at NYU, worked as an investment banker on Wall Street for two years, then worked as an associate at a venture firm investing in startups. And when I started my own company, I didn’t know how to manage my money. The reality is this: my financial models were theory; cash flow is reality. We ran into some early problems by spending on ”future earnings” that didn’t yet exist.”

– Luke Burgis | Director, ActivPrayer

REMEMBER REGULATORY OBLIGATIONS

“If you’re not clear on your regulatory obligations, beware of missed deadlines, costly fines, and time wasted attempting to correct these issues. Startups are responsible for more than state and federal taxes; look into franchise fees to the state in which you are incorporated or established, state and local business licenses, 1099 filing, and 409A valuation for companies with employee options.”

– David Ehrenberg | Chief Financial Officer, Early Growth Financial Services

EXPANSION HAS HIDDEN COSTS

“I wish I’d known about all the additional costs that come with hiring employees. There are health and retirement benefits, taxes and many other miscellaneous expenses that totaled to an amount that was quite surprising. Learn about this early so you are able to calculate exactly how much new employees will cost.”

– John Hall | CEO, Influence & Co.

ALWAYS BUDGET AND PLAN

“Even if you have little resources and capital, it’s still important to have a plan and a budget. Your business plan can be basic — as little as a simple list of goals for your venture. Of course, you’ll need a more detailed plan if you’re soliciting investors. TheSmall Business Administration website offers a great basic business plan template.”

– Andrew Schrage | Co-Owner, Money Crashers Personal Finance

PROFIT AND LOSS AREN’T EVERYTHING

“I wish someone had told me that P&L isn’t the only indicator for the health of your business — looking at and managing your cash flow is at least a weekly activity. Just because you’ve got big contracts coming in doesn’t mean you’re safe. Iif you ever want funding, you have to be vigilant about managing your cash flow and keeping your daily account balances high.”

– Raoul Davis | CEO, Ascendant Group

GET ACQUAINTED WITH TAX DEDUCTIONS

“When starting up, I wish I better understood tax deductions. That’s the reason I worked with a tax attorney to build a definitive tax guide for entrepreneurs. Taxes are complicated and intimidating, but having the right tools makes it easier to keep track, to spend money wisely, to maximize deductions and to stay out of trouble with the taxman!”

– Nick Reese | CEO, Microbrand Media

How Pitching Is Like A First Date

sales pitch Pitching your startup is like going on a first date. Entrepreneurs should be confident without being cocky, approachable without seeming desperate, and passionate without being over the top. The goal is to build up enough intrigue to be asked on a second date (or a follow-up meeting) without scaring the listener off. But that’s no easy task.

Here are four common pitching turnoffs that are easy to make — and advice for avoiding each:

PUSHING RATHER THAN PULLING

Picture going on a first date with someone who immediately rattles off the reasons why you should marry them. Not only would it eliminate the thrill of the chase, but you’d wonder what’s wrong beneath the hood. However, if the same person were to casually mention the homemade meal he or she cooked for some old Harvard buddies the other night, they would earn some serious points in the ‘potential mate’ department. It’s a matter of creating intrigue rather than trying to force interest.

The same goes for a company pitch. If the audience feels that they’re being force-fed a value proposition that they can’t relate to, their walls will go up. However, by piquing the their curiosity in a less forward way — such as describing the excitement you felt in saving thousands of dollars for one of your client companies — the audience would be left wanting more. Present genuine accomplishments in a modest, matter-of-fact way, allowing the listeners to discover the value propositions that are most applicable to their own lives. They’ll appreciate your product a lot more if it is their idea to latch onto it.

USING BUZZWORDS AND INDUSTRY JARGON

Buzzwords are like corny pick-up lines — they make the listener question the authenticity, credibility, and even sanity of the person pitching. Sure, you may have a ‘rockstar team’ that is going to ‘massively disrupt’ an industry with ‘game-changing technology,’ but using these clichéd words make you sound naïve. The listener immediately places you in a bucket with the 50 other ‘rockstar’ entrepreneurs that they’ve heard make the same ‘disruptive’ claims.

Keep the pitch genuine and crisp, using proof points, metrics, and anecdotes that the audience can grasp in a meaningful way. Similarly, steer clear of using too much industry jargon. Understanding a pitch shouldn’t require a dictionary or a biomedical degree. Speak in layman’s terms so that the audience is actually listening to the description and not trying to figure out what was just said.

PITCHING AROUND A POWERPOINT

Trust in a relationship is crucial, so another dating red flag is a person who sounds too scripted (ex: “I didn’t know beauty until I saw you.”). Similarly, relying on a PowerPoint too heavily can make the entrepreneur sound canned and insincere. The audience should feel like your pitch is unique and heartfelt, not like you’ve fed these lines to thousands of other listeners.

Though it’s tempting to build a PowerPoint at the same time as a pitch, trying to force the pitch to be visual right away compromises the story arc. Instead, start offline with 20 notecards. Use the first 10 to answer the basic questions: problem, solution, market opportunity/size, team, unique IP/technology, competition, distribution strategy, business model, financials, funding status, etc.

Fill the remaining 10 notecards with good company bragging points (aka “power cards”). Examples would be impressive metrics (4 out of 5 users tell a friend about the product), high-quality partnerships (three Fortune 500 companies agreed to beta test the platform), or powerful quotes from customers (“ABC company increased our ROI by 5X”). Then arrange, combine, and re-arrange these 20 notecards until they fit into a story arc that flows, using relevant ‘power cards’ during transitions. Memorize the key facts, but keep in mind that no one wants to date someone who is following a script word-for-word.

CRAFTING THE PITCH ALONE

It’s not a bad idea to get a second opinion on your outfit before a date. Likewise, a little guidance, encouragement and even tough love from your friends can be crucial for polishing your message. The perfect pitch isn’t created in a vacuum.

Since entrepreneurs are self-starters by nature, few accept the fact that they can’t create a pitch alone. In reality, however, you’re often too close to your own company to know how to pitch it.

During my three months in the TechStars accelerator, each company was challenged to pitch every Wednesday night to a room of 35-50 peers. When the buzzer rang (three to five minutes later), the person pitching would have to be completely silent and accept criticism with a smile. No excuses. The trick was to truly listen, say “thank you,” and accept whatever challenge was given for the following week. If someone suggested that you pitch without slides the following week, or to use a fake character as an example, you’d do it for your own benefit.

But you don’t need to join an accelerator to get peer feedback. Start a weekly Meetup group with other entrepreneurs in the area. Not only will this be good practice for investor meetings, but the variations will prevent the pitch from becoming too scripted.

At the end of the day, you make the final decision about what feels right for your pitch, but the process gives you needed perspective, confidence and practice. Just like dating, at the end of the day, your demeanor is more important than the words you use.

Heidi Allstop is the founder of Spill, a confidential site for young adults to “spill” about hardships and share life advice with one another. She launched the company as a psychology student at University of Wisconsin-Madison and spread it to 150 college campuses in 15 countries. A TechStars alum and the winner of the Global Social Venture Competition, Allstop is on a mission to bring empathy online.

Can Psychics’ Tricks Help Your Startup?

If you’ve never heard of it before, cold reading is the name of a technique used by many controversial ‘psychics’ and people claiming to be able to talk to the dead. The technique has nothing to do with supernatural abilities, but is rather a method psychics use to con their audience members into thinking they know more about them than they really do.

By using a number of psychological techniques and a lot of practice, these charlatans are able to convince anyone they meet that they must have some kind of psychic ability.

The canny founder out there is probably thinking that this sounds like a tool you could apply to your startup. Surely the ability to intuit lots of information about a person would enable you to be a better salesperson, to give better presentations, and to motivate your team more?

You’re right! Cold reading can be used effectively in business in a number of capacities.

How Cold Reading Works

The basic idea behind cold reading is simple. You talk quickly, make lots of statements, and pay careful attention to people’s body language. Then you can qualify your statements based on those reactions.

One of the methods used in cold reading is called ‘shotgunning.’ Here you make lots of quick statements that are generally quite vague and then look for responses from that person to decide which statements best describe them. Human nature works to your advantage here because the listener will only really remember the times that you got it right and will gloss over the times you got it wrong.

Another technique you can use is something called the ‘Barnum’ technique. Here you make statements that are generally true for everyone but that sound very intuitive and personal.

For example you might tell someone that they get nervous at extreme heights, that they keep lots of old photos of relatives, or that they sometimes feel insecure without really knowing why. These are universal experiences, but they sound intensely personal, and the listener will feel like you know them well.

In the ‘rainbow ruse’ you make a statement that can’t possibly be wrong because it actually describes two opposite situations. You might for instance say that someone is sometimes very angry but also very calm and placid. This is once again true of everyone and doesn’t really mean anything, but it’s not easy to completely deny.

When you combine the rainbow ruse and shotgunning, you can watch out for which statement the person reacts best to and start leaning your monologue in that direction. If they smile when you say ‘but also very calm and placid,’ you can then elaborate by saying, ‘In fact some of your friends would say you’re so laid back you’re horizontal!’ Naturally most people will believe the more positive statements about themselves

For a great example of cold reading, from someone who admits it’s just an act, check out Derren Brown. He also does a number of corporate events and has a brilliant live show.

How to Use it In Business

There are many ways this can apply to a business setting; you just need to use a little imagination.

Use these techniques in sales by suggesting that you know the person well and understand what they need.
Convince an investor that you’re the perfect company for their portfolio.
Insinuate that a project is coming along well, without lying!

Use these techniques well, practice them hard, and you can end up being able to tell everyone precisely what they want to hear.

Evan Thomas is a carefree and enthusiastic businessman. He enjoys writing about his experiences and sharing useful information through his articles. Visit www.incorporator.com.au for interesting tips.

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How To Hire A Programmer If You Can’t Code

I’m one of those founders who can do everything besides code. Marketing? A breeze. Accounting? Accounted for. Operations? Cake walk. Code? I’ll be right back!

Not being able to code has put a damper on my ability to hire the right programmer and further grow my businesses. I have hired three programmers who all seemed fantastic and brilliant during their interviews, but ultimately couldn’t deliver. I always blamed the programmers (it was their fault for misleading me about their true abilities). But then again, maybe the fact that I’ve had the same experience three times means that it had more to do with me than I would like to admit. As a founder, you need to be able to correctly assess the programmer you hire. But the question still remains, “How can I hire a programmer if I don’t have a programming background?”

For people who are code illiterate, I just might have unlocked the secret to hiring the best programmer available.

STEP 1: CONSULT PROGRAMMER FRIENDS

The first thing I did was reach out to friends who are programmers for other companies or who currently lead a team of programmers. One friend of mine, Ravi Patel, was generous enough to sit down with me and explain the hiring process he uses. I was able to get a better sense of how to approach first-round interviews, ask key questions, and judge responses. This was a great way to get my feet wet before the interview process started.

STEP 2: ASK THE RIGHT QUESTIONS

If you ask the wrong questions in an interview, you have no clear way to accurately measure the programmers’ ability. To avoid this, here are some questions to guide you:

“Tell me a little about yourself and your background.” I like to get to know the person, to learn how they first started programming, and hear some of the things they have built. While they share their stories, try to see if you can picture yourself and your team working with them on a daily basis.
“What hours do you prefer working? During what times are you most efficient?” This question helps me get a sense of how the programmer works. I personally need a programmer to be available during 9-to-5 hours, mainly to help our staff with any problems they might have. However, I don’t mind if they work whenever they are most productive.
“What are your current time commitments?” It’s important to know what else they are currently working on to see if they can truly commit. Only hire programmers who can commit to your company 110 percent.
“Do you see yourself as a project manager, a developer, or both?” This question can be a little tricky to answer. I want a project manager who can help me design new features and interfaces. I want a developer who can follow exact directions so they can build what we need. I prefer hiring programmers who can do both.
“How would you manage a team of programmers?” The key things to look for here are leadership skills and whether they can lead by example. I don’t want a programmer to take the back seat once they have a team to manage. They shouldn’t be afraid of getting their hands dirty.
“How you would fix these issues?” This is a make-it-or-break-it question. Provide a few examples of problems you’ve encountered in the past. Present them with the exact same problems to see how they would fix them. Their answers should be similar to the solutions you used, or better. If they can’t give a concise answer, that’s usually a good indicator that they are not the right person for the job.
“I need this done over the next couple of weeks. What steps will you take to finish them on time?” Present them with a few things that need completing urgently and a few things that need doing over the next few weeks. Listen to how they plan to finish each thing and ask them for an approximate time frame.
“What would you do to ensure that our servers are up 100% of the time?” If our servers crash, we lose money, our clients lose money, and most importantly, we lose clients. If the programmer I’m looking to hire has some database and server knowledge, they need to explain to me how we can maintain 100 % uptime and what flags we can implement to give us alerts on any impending server crashes.
“If I need something that you have never done before, how would you approach it?” I ask this question to see how they approach situations that they have typically never been presented with before. Usually, I look for how they would research a solution and if they are the type of person who enjoys a challenge.
“Here is what I expect from you.” Let the applicant know from the outset what you expect from them. Tell them how much commitment you expect: if you want them to be available during weekends, if they need to be available at odd times in case of big issues, what they are expected to build, etc.

STEP 3: BRING IN THE EXPERTS

These questions give me a better sense of who the top three or so programmers are. After I select my top candidates, I ask the same friends to help me interview them for the second round. During this stage, we ask more technical questions to better expose the talents of the finalists. If you don’t have any friends who can help, try contacting a nearby programmer through LinkedIn as a consultant. After you receive feedback from an expert, you should be in a good position to pick the right candidate for your team.

As a friend once told me, a decent programmer you get along with is much better than a brilliant programmer you can’t stand. The decent programmer can always learn through experience and research, whereas the brilliant programmer probably can’t change his personality enough to suit.

Shahzil (Shaz) Amin is the founder and CEO of Blue Track Media, a performance-based online advertising company that specializes in customer acquisition through multiple digital channels. His first company was formed after high school and his latest one, Plugged Inc., focuses on selling and manufacturing headphones. He’s always looking meet new people and learn from their experiences. His hobbies include playing sports, eating wings, and laughing.

3 Best Practices For Startup Hiring

hiring It’s really hard to teach someone how to hire, how to manage, and how to lead. Like many things, it’s usually best to learn on the job, practice, and improve after making a lot of mistakes along the way. The problem is, as a startup, you can’t afford to make a lot of mistakes when hiring. You also can’t afford to wait too long to hire when the business is scaling quickly.

I thought I’d share my top three best practices when making a first hire (and in some cases, any hire). As a caveat, this is coming from a first-time entrepreneur, who has never directly hired anyone in the past, and generally believes in the goodness of man/woman.

For a senior hire, hire someone with experience. For a junior hire, hire the smartest person you can find. If you’re lucky, find someone who has smarts and experience. Our first hire was someone who actually had retail/online/consumer experience. This is something that I have had for exactly 2.5 years (since the company was founded). My co-founder and I knew what we were good at, but also knew our weaknesses. It was critical for us to find a person that could bring all the industry expertise and knowledge we could no longer fake. Our first intern (and eventual hire) was someone with exactly zero work experience. She was willing to work in whatever role we needed her for that particular day. She is also very smart. Although her role has changed over time, she was exactly the utility player every startup needs.
Take your time. Every single person we have eventually hired, including our first employee, has gone through a trial period with us before joining full time. This is not always possible, especially for a hyper-growth company. The point is that you want to take your time with your first critical hires. The people who don’t agree or understand this philosophy are people you don’t want to hire. People truly passionate about a company in its early stages and truly passionate about filling a role for that company will be patient and understand the reason for a “trial period.” It’s not because you think they are mediocre or not the best possible candidate. It’s because when people believe in something, they’re willing to fight for it. That goes both ways, and is important to understand.
Fit is as important if not more important than anything else. Startups equal tight quarters, big personalities, too much to do, and too little time. If you have a virus in the mix, it can be devastating to a startup’s success — whether it’s a bad case of the chicken pox or a bad teammate. Find people you like to work with, because you are going to be spending more time with them than your girlfriends, boyfriends, wives, husbands, friends, and so on. Everyone does not have to be identical or like the same things. That can be a problem as well. Instead, they should fit together like a jigsaw puzzle — as complementary sides that work as a whole.

Side note: I have no clue if chicken pox is caused by a virus, but I thought it had a nice ring to it and I will check Wikipedia shortly.

The theme here is to hire with caution. New hires (and especially your first hire) can make or break your company. It should not be taken lightly. Building a team is one of the most important things you can do as a founder. If you’re good at it, it might be all you do one day. If you have the slightest sense that your first key employees are not going to get the job done or do not have the fortitude to survive a startup environment, cut your ties and fire fast. Personal relationships are the most important things I have in my life. But as a founder, I understand that I am running a business. It is bigger than myself. I have investors, customers, vendors, and suppliers to worry about. If something is not working out, fire, rinse, repeat, and build until you get it right.

This post originally appeared on The Huffington Post.

Raaja Nemani is Co-Founder and CEO of BucketFeet, a Chicago-based e-commerce company that creates artist-designed footwear. Raaja’s international travels—which include a trek through the Himalayas and a dive with great white sharks—inspired him to launch BucketFeet with co-founder Aaron Firestein in 2011, as a platform to celebrate artists from all over the world. Now selling in over 10 countries, Bucketfeet has built an artist network of 1,000 artists from over 30 countries. Raaja injects his love of design and global community into BucketFeet’s mission, which aims to find a different artist to design every pair of shoes and provide consumers original footwear that stands out and tells a story.

Top 10 Fundraising Fails (Infographic)

There are a lot of startups these days. With the explosion of accelerators, more and more companies secure seed funding, which helps them build out their products and business models. After that initial small investment is done, though, it’s time to raise the real money.

We all know this song and dance: raising capital is hard. It’s hard no matter who you are or what your company is doing. (Well, okay. If Mark Zuckerberg ever wanted to start another company, he probably wouldn’t hurt for investors.)

For most of us, though, raising funds is hard work. So, it’s probably a good idea for founders not to make rookie mistakes that will hurt their chances even more. How does the rookie founder avoid rookie mistakes, you ask?

The Founder Institute, an early stage accelerator, developed this infographic to outline some of those mistakes. The number 10 mistake is failing to use charts and graphs in your presentation. While this seems like such an unimportant detail, the rise of–well–infographics shows us that visually displaying data is important. In the case of investors, who may be unfamiliar with your industry, these charts and graphs can help them easily grasp your points.

Another mistake is not connecting the financials to your story. This happens a lot in demo day presentations. A founder is humming right along, drawing the audience in with a compelling story. Then, boom, out of nowhere they’re talking money. Weaving that information into your story is crucial to keeping everyone engaged.

The number one rookie fundraising mistake? Projecting $1 billion in revenue for year 5. Founders throw out big numbers like this because they think investors like to hear it. Investors do like big numbers, but they also prefer projections to be somewhat realistic. To put it in perspective, eight years after founding Twitter has yet to reach $1 billion in revenue. Facebook did it in 6 years. Google did it in 5 years, but if you’re the next Google, fundraising shouldn’t be too difficult anyway.

Check out the infographic for the whole top 10 fundraising fails:

12 Tips For Pitching The Press

QUESTION: NAME ONE TIP FOR PITCHING A MEDIA OUTLET ON AN ENTREPRENEURIAL VENTURE.

PITCH THE STORY TOO

“Journalists love to tell a story, so pitch them your startup story rather than just telling them about what your product is. Make it colorful and interesting so they can easily see how this would translate into a compelling piece for them to write.”

– Stephanie Kaplan | Co-Founder, CEO and Editor-in-Chief, Her Campus Media

TIE IN A HOT TREND

“The best thing to do when pitching media is to tie in your current pitch idea with a topic that is already hot in the media. Media outlets want to get the most viewership possible, so they like to ride popular stories as long as they can. This tactic especially works when you can tie a celebrity into your story – my most popular post was “5 things LeBron James can teach us about entrepreneurship.””

– Lawrence Watkins | Founder & CEO, Great Black Speakers

INCORPORATE THE NUMBERS

“Business is a lot of numbers, so including numbers (revenue, profit, employees, etc.) is always helpful for a pitch. When we pitch Back to the Roots, we always mention the impact we have on coffee waste by saying “on track to divert 3.6 million pounds.” When quantifying the story, the pitch, idea, and the significance become clear for the journalist. It’s easy for them to skim over in a hurry.”

– Alejandro Velez | Co-Founder, Back to the Roots

HELP THEM HELP YOU

“When pitching to a media outlet, try to find something relevant in your business that the outlet is passionate about or they may have been discussed in the past. Helping them create new content — with a little sprinkle of your own business — will help establish a relationship and help open doors for future/better opportunities.”

– Angela Pan | Owner/Photographer, Angela B Pan Photography

DO RESEARCH, BE PERSONAL

“Working in media has taught me the importance of personalization. A few targeted pitches to the right people, using their names and addressing how your product/service fits within their specific outlet will get you much further than a mass pitch sent to every email address you can get your hands on.”

– Alexis Wolfer | Founder/CEO, The Beauty Bean

BECOME AN AUTHORITY

“Some of the best-received content that we’ve had published has been in response to changes in our industry and hot topics in the news. A good way to secure a media placement is to reference a current event, trend, or statistic that affects your business and detailing how your company is developing or changing as a result.”

– Eric Corl | President + Co-Founder, Fundable LLC

FACTS TELL, STORIES SELL

“The media exists to tell compelling stories, not to provide free advertising for a business. Think of your business as a TV series and create multiple story arcs. Do you have a quirky startup story? Are you piggybacking on or revolutionizing a trend? Make a list of 10 or 15 story angles for your venture, then match each one to its most appropriate media target.”

– Melissa Cassera | President and CEO, Cassera Communications

THEY’RE PEOPLE TOO!

“Sometimes, people forget they’re pitching a real person, not just a “media outlet.” This journalist is a person, with tight deadlines, frustrations, and an overflowing inbox, just like the rest of us. Follow that journalist on Twitter: What time does he usually publish stories? Why would he care about your business or story? You want to be a convenience, not just another spam email.”

– Alexander Torrenegra | Co-founder, VoiceBunny

HAVE CELEBRITIES USE YOUR PRODUCTS

“Nothing has made pitching to media outlets easier for me than being able to say that influential celebrities support our work — particularly if the celeb is willing to go on record for a quick quote or interview. Media outlets want to know that their article, if published online, will collect good traffic, and they know that celebs drive this traffic better than anyone else in the world.”

– Shaun King | Founder & CEO, HopeMob

BE FRIENDS ALREADY!

“Nothing works better for pitching a media outlet than already having a pre-existing relationship with an editor or writer there. So don’t wait for a reason, make some friends for friendship’s sake!”

– Derek Flanzraich | CEO and Founder, Greatist

DO SOMETHING CRAZY

“You read about it all the time: someone puts themselves on the line with some kind of stunt, and everyone starts talking about it. What is something that you can do that would have the press all over you and want to talk to you about? Be creative and don’t hold back — and you will get your PR.”

– Louis Lautman | Founder, Supreme Outsourcing

KEEP IT SHORT

“Don’t send a long email. Journalists are pressed for time and have little to no patience. Keep it short and to the point to boost your chance for being successful in the pitch.”

– Ben Lang | Founder, Mapped In Israel

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11 Ways Mentors Are Essential To Your Success

QUESTION: WHAT IMPORTANCE WOULD YOU PLACE ON HAVING A MENTOR IN BUSINESS AND IN LIFE?

FOLLOW THE PARALLEL PATH

“Having a business and life mentor is not only important, it’s essential. Entrepreneurs are very close to our business and a mentor is someone who can see things from a distant and different perspective. A key to success is surrounding yourself with people who are further along the life and career path than you are; just remember to choose mentors who are going in a direction you aspire to go.”

– Christine Hassler | Founder, Twenty Something, Twenty Everything

YOUR PROBLEMS AREN’T NEW

“The best thing for me about having a great mentor is that I always have someone to remind me that my challenges are not new. At our lowest points, we are susceptible to think that no one has every been through our pains. Mentors are there to help us snap out of it and stay focused on achieving business and personal success. Also, hearing how the mentor handled situations acts as a guide for me.”

– Lawrence Watkins | Founder & CEO, Great Black Speakers

A PIECE OF PERSPECTIVE

“A mentor is so valuable for giving you the much needed perspective that we tend to lose in life and business. By reminding us how far we’ve come and that these challenges can be overcome, mentors can boost confidence, redirect our paths and help celebrate big wins.”

– Kelly Azevedo | Founder, She’s Got Systems

IT’S AN INVALUABLE INVESTMENT

“My mentors have provided me with more guidance, strategies, insight and connections than all other resources I’ve been exposed to combined. Finding the right mentor who is truly interested in your success and your goals is one of the most powerful things you’ll ever do as an entrepreneur.”

– Travis Steffen | Founder, WorkoutBOX

TAKE THE ULTIMATE SHORTCUT

“Experience may be the best teacher, but your mentor’s experience is the best teacher of all. That’s because getting the right mentor is like taking the ultimate shortcut. You can learn from their mistakes without repeating them yourself, and you can model your actions based on their successful formula.”

– Pete Kennedy | Co-Founder and Managing Partner, Main Street ROI

LEARN FROM OTHERS’ MISTAKES

“Having trusted mentors for your business and life allow you to learn from others’ mistakes instead of having to learn them on your own. Some mistakes are unavoidable (if only because we’re all too stubborn to learn from others sometimes!) but even a few avoided mistakes will save time, money and sanity.”

– Alexis Wolfer | Founder/CEO, The Beauty Bean

MENTORS AREN’T BUSINESS ADVISERS

“Every startup has formal and informal advisers, whether they’re professors, investors, partners, family or friends. As an entrepreneur, you will often have to make choices that are good for the business, but possibly bad for you. Most advisers focus on the company. It is critical that you find a personal mentor that has your best interests — not those of the company’s — in mind.”

– Aaron Schwartz | Founder and CEO, Modify Watches

ACCELERATE YOUR LEARNING CURVE

“By running a business while in college, having a mentor has taught me way more than any of my professors have ever. Granted, I didn’t pay much attention in class when I should, but there’s nothing that beats real world advice, perspective, and networks. All in all — get a mentor!”

– Kenny Nguyen | Founder/CEO, Big Fish Presentations

POSITIVELY BIASED POINT OF VIEW

“Someone who offers actionable advice and has a positively biased point of view, who really believes in you, is invaluable. Turning to a mentor often means the difference between giving up and moving forward. I don’t know if I could have achieved success without my mentors to challenge me, push me, and help me keep my eye on the ball.”

– Nick Reese | CEO, Microbrand Media

FIND YOUR OWN GANDALF!

“What would the LOTR hobbits have done without him? Think of yourself no differently. Those with wisdom in this world don’t have it to keep for themselves but to share with others, and all are grateful to do so. On this journey of entrepreneurship and this journey of life, the stakes are too high not to have someone to help guide our steps. Mentor: absolutely necessary. Long white beard: optional!”

– Luke Burgis | Director, ActivPrayer

WORK/LIFE GUIDANCE WORKS

“Find a mentor who has balanced life with business. Work/life balance is extremely important, and if a mentor can help you take a step back and look at the big picture, it can be one of the most valuable assets in life.”

– John Hall | CEO, Influence & Co.

5 Legal Steps Founders Should Take Right Now

Every founder’s dream is to see their company grow. But taking a business to the next level often requires seeking outside investment. To ensure that a company is prepared to receive investment, and to make use of the opportunities and challenges that growth creates, there are a number of crucial, yet often overlooked, legal steps to take. Here are five of them.

Chose the right legal entity.

The corporate structure you chose determines your company’s taxation, allocation of profits and losses, record-keeping requirements, and general structure. When incorporating your company you have several options. The most common include an LLC, S Corporation and C Corporation and your choice should depend on your goals and objectives. While your entity can be changed down the road, you can avoid this by working in close consultation with your lawyer and accountant from the get go. If you plan on seeking investment soon after starting your business, establishing a C Corporation at the outset may be the best option.

Put a founder’s agreement in place to guide internal affairs.

If you’re starting your company with another person or group of people, a founder’s agreement is absolutely essential. A founder’s agreement creates the framework of your partnership and governs the internal affairs of your company’s operations. Your agreement should outline the duties of the founders, key decision-making processes, as well as how disputes and unforeseen circumstances will be handled; however, before you go forward with these have an attorney from a law firm such as Legalzoom review the document before signing the agreement to ensure that everything is in order.

There are bound to be bumps in the road as your business grows, so it’s best to have a comprehensive document in place from the beginning that will govern how decisions will be made.

Have a good non-disclosure agreement.

Non-disclosure agreements (“NDA”) are critical to establish in any business relationship where confidential information may be shared. People who have access to your company’s confidential information must have defined standards about how they can use and access this information. Ensure the obligations of confidentiality extend beyond the term of the NDA, as this information is essential to the integrity of your business.

Protect your company’s “IP”.

The core of your business is your intellectual property or “IP.” As such, you must legally protect your property by filing the proper trademark, copyright or patent applications. This ensures that you have recourse to protect it, if infringement occurs. But not only should you be keeping these traditional protections in place; you need to ensure that you are contractually maintaining ownership rights over any intellectual property being created for your company by any outside contractors. These protections help you maintain the core of your business.

Make sure your documents are in order.

Anyone looking to invest in your company will conduct extensive due diligence. This will include looking over your company’s books and reviewing your corporate documents, agreements and contracts. They will want to know you have appropriate licenses, permits and reports, and that you are adhering to all existing contracts with employees and service providers. This will show potential investors that you are professional and free of potential legal obstacles.

Having your legal house in order ensures that your company is ready to take advantage of investment, to grow, and to handle the challenges that will arise. Think ahead and imagine where you want your company to be, and then make sure that you’re prepared to get there.

DISCLAIMER The content in this article is for informational purposes only and does not constitute legal advice. Readers should contact a qualified attorney to obtain advice with respect to any particular issue or problem.

Tricia Meyer is managing attorney of Meyer Law, a forward-thinking boutique law firm providing top-notch legal services to clients ranging from startups to mid-sized companies to large corporations in a variety of industries including technology, telecom, financial services, real estate, advertising, marketing, social media and healthcare. Learn more at MeyerLawGroup.com and follow us on Twitter @Tricia_Meyer or@Meyer_Law

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