Five Technology Must-Haves for Your Startup

Each year, nearly 20 percent of small businesses stop operating temporarily, and this interruption results in significant revenue loss for 68 percent of owners. Of those, 40 percent will never resume operations, Capstone Technologies reports. As a small business owner, it’s vital you invest in technology that you can rely on. Implement the latest tech solutions that will grow with your company, help you maximize your resources and facilitate a healthy and vibrant business for years to come.

Consult With a Tech Professional

If you can afford it, purchase a technology consultation from a professional who specializes in your field or type of business. Consultant fees are approximately $100 per hour and include an assessment of your company’s needs today and into the future. You can find a referral at Microsoft’s Small Business Specialist Program. Common small business technology decisions you would discuss with a consultant include:

Hardware processing speed and storage capacity
Analog and Internet-based telephone systems
Customer service and professional services software
An in-house server for website hosting and data storage or outsourced and cloud technology
Mobile phones and tablets
A business network
Wireless Internet service
Security software
Bring your own device (BYOD) consultation
Website design and Internet marketing technology

Internet Access

High-speed Internet service is the most reliable and cost-efficient online access model. Most systems are similar; however, some regions only offer a few options, and a consultant or review website will help you compare. A broadband service is the fastest and includes:

Fiber optic service (FiOS): the fastest, but has limited availability
Cable broadband: the next speediest option, but may operate more slowly during peak Internet times, because the connection is shared with other users in your area
DSL: relatively fast, but slower as the distance from the server increases

In a rural area, you may need to use satellite Internet such as Hughesnet Gen4, or a mobile wireless system such as Clear.

Computer Hardware

A basic computer needs approximately 4GB of memory, an 80GB hard drive and a 3GHZ processor. An 18-inch or larger monitor is an inexpensive upgrade that will help employees avoid tired and strained eyes.

Data Storage

Cloud technology for data storage can save your business a lot of trouble in the case of an emergency or server crash. It is safe, easily accessible and inexpensive. Most services allow you to limit access to files and come with sharing options that enable users to edit and replace files. It also tracks user activity for added security. Dropbox has a business version with low fees and graduated data capacity options.

Portable Digital Devices

Smartphones, tablets and laptops are prevalent in today’s business world. You may decide to save money and allow employees to use their own phone or other mobile device, but there are some potential legal ramifications, such as unlawful use with “sexting” and other forms of unsanctioned communication that your company could be liable for. If you do allow BYOD, make sure you establish a firm BYOD policy.

Website with Mobile Options

A high-quality website is a significant investment. It is probably the most important communications and ecommerce tool you have. Hire a professional website development team with a solid reputation. Ask them to explain the features you need and the latest design advancements, including responsive design (design that resizes the site for viewing on mobile devices). Mobile search is growing—Google reports that 67 percent of users search and make purchases from mobile devices.

A basic website can range from $5,000 to $10,000, while a responsive design website can range from $15,000 to $25,000. Responsive features cannot be added to a standard website later, but if you cannot afford a responsive site, you can purchase a mobile website that costs as little as $13 per month. A mobile site is a simplified version of your website with large buttons and fewer columns for the mobile user’s ease of use.

Jack Wilson manages multiple corporate design projects by day, while fitting in some part-time freelance writing by night.

5 Strategies for a Carbon-Neutral Startup

The fact that the business industry is trending towards actively incorporating more sustainable business practices is no secret. Consumer interest and the possibility of increased profit margins are demanding it. Making an effort to reduce harmful emissions, curb energy consumption, and eliminate waste has turned out to be excellent opportunities for small businesses to build customer loyalty and lower operating costs at the same time.

Start measuring. Start saving

One way to dramatically decrease the carbon footprint your business will develop over time is to get serious about your energy consumption from the start. One way to effectively maintain low operating costs is to effectively manage how much energy your business consumes regularly.

Fortunately there are energy monitoring systems available that provide in-depth tracking of how much electricity your home or office consumes daily and can provide you with actionable data, accessible from anywhere, that helps you make smart business decisions concerning your energy needs.

Cut costs by using less paper

If a typical office worker uses approximately 10,000 sheets of paper each year then going paperless will naturally help lower your operating costs and improve your environmental standing. So before you go out and purchase tons of paper or start printing invoices and customer data consider one of the many paperless options available that make retrieving, sharing ,and transferring files and information more convenient and also boosts employee productivity and the overall efficiency of your business in the process.

Is “work from anywhere” right for your business?

There is an increasing trend of companies that are promoting a “work from anywhere” culture in to their structure. With the help of technology, accomplishing work-related tasks from a mobile location is not just easy, it’s pretty commonplace. Employees can easily participate in video conference calls, respond to emails, and complete sales on the go. All of these options make it possible for savvy business owners to lower the expense of maintaining office space and at the same time allow more flexibility with employee schedules.

Take advantage of Software as a Service (SaaS)

Taking advantage of internet-based software and cloud applications can also greatly reduce the impact your startup has on the environment. For example, using Quickbooks online for your accounting needs and Adobe Creative Cloud for your design needs eliminates the need the need to purchase multiple software licenses in order to grow your business.

Many businesses are finding value in software as a service (SaaS) products, and not just because they can significantly reduce operating costs. Many small business owners are jumping on the bandwagon because these platforms can significantly reduce carbon footprints by all but eliminating IT support costs since hardware and software maintenance for your business applications is outsourced to the vendor.

Buy recycled and reuse often

Taking advantage of recycled office supplies is another highly effective way to launch a more sustainable business. Items like ink toner, cartridges, and most paper products can be recycled at no cost to you. Even outdated electronics can be recycled, regardless of brand or condition.

Because the materials used don’t have to be harvested or refined a second time adopting a policy of reusing items like binders, paper clips and bubble mailers and also purchasing office supplies made from recycled materials will definitely have an appreciative impact on your bottom line.

Although many of the carbon offsetting initiatives in use today undoubtedly require a financial investment upfront, they will nevertheless pay for themselves in a relatively short amount of time and increase the flexibility and productivity of your business along with it.

Zoe Maldonado is a blogger for TechBreach and enjoys writing about all things mobile and electronic and spending time with her very active twin boys.

How to Get Inspiration from Your Family

There was a time when people were born into occupations. Craftsmen spent long apprenticeships learning a trade, inside and out. Though times have changed, businesses born from family traditions are still thriving all over the world.

These businesses are special because they have roots. For my family, it was baseball. My dad took our love of baseball and turned it into J&B Baseball Cards. My dad was willing to invest his hard-earned money in something I was passionate about, and his example was instrumental in my decision to start my own business as an adult.

What You Have to Offer

If your family’s hobby, tradition, or “secret recipe” is something others find valuable and would pay for, it could lead to a profitable business. You’ve lived and breathed it your whole life, so you probably do it better than anyone else. Here are some examples of small family businesses I’ve seen that have the potential to be lucrative:

Homemade Goods: We had Amish neighbors who were amazing cooks, and they had a nice little side business selling their food to the public. Artisan goods are hot right now, and it’s easy to get involved with your local farmer’s market to sell jams, jellies, pies, etc.

Pet Services: We recently bought a puppy and have been learning how to train him by watching video tutorials. It’s a tough job, but if you love animals, you can run a side business training puppies, walking dogs, or even grooming pets.

Landscaping: My best friend learned the hard work required for a business from his father, and when he was 16, he fell in love with landscaping. Now, he’s one of the best landscape designers in the Midwest. If you know what grows well in your region and don’t mind hard work, landscaping can be a profitable family business.

Admittedly, these are more small businesses than global, scalable startups. But, with a little thought and innovation, it wouldn’t be hard to turn your family hobby into a global brand. It worked for Wal-Mart, Mattel, and Whole Foods.

Why It’s Viable

The key to viability is demand from others combined with the ability to provide a solution to a hungry market. There are two distinct advantages to creating a startup from a family tradition:

Experience: Research conducted by Anders Ericsson indicates it takes 10,000 hours of dedicated practice for someone to become an expert at something. When you start a business from a family tradition, especially if you’ve been immersed in it since childhood, you’ve dedicated the time necessary to learn and experience it deeply, and that puts you a step ahead of the competition.
Budget: Tight budgets are a reality for almost every startup. However, when you have the experience of a tradition, you can avoid major expenses, such as research on the trade itself. You already know the pitfalls to avoid and have likely determined the most cost-efficient materials or resources.

How to Get Started

The good news is that people want to buy local to support family businesses in their community. If you’re ready to try your hand at a tradition-born business, follow these three tips for success:

1. Start Small: Try to make your first dollar in the early stages, and don’t invest thousands in building something you’re not sure others want. Make your offering available to the public, make a small investment, and see where it goes.
2. Keep Quiet: It’s natural to want to tell people when you’re excited, but be careful about deluging people with your enthusiasm. Some people may try to discourage you, but it’s important to believe in yourself and your idea.
3. Have Fun: When you make something a business, you can lose sight of what you loved about it in the first place. Don’t forget to have fun. Involve your family in certain areas so they’re a special part of the business. I include my parents in stories and reports, and they love feeling like a part of our company’s success.

Starting a business is hard, but the more you pour yourself into something, the more likely it is you’ll commit to it and succeed. There will be challenges, but when you survive them, you and your business will emerge stronger. Carry a family tradition into your work, and you’ll truly see roots take hold.

Joe Barton is the founder of Barton Publishing and other websites that promote natural health through teaching people how to cure themselves using alternative home remedies (using simple grocery store items, herbs, vitamins, exercises, and more) instead of expensive and harmful prescription drugs.

How To Craft Your Startup’s Culture

Embarking on a startup is such an exciting experience simply because of the vast possibilities. Your ideas and goals will take on a variety of shapes and forms, and watching everything unfold is half the fun.

Still, while the excitement lies in the experience, it is still up to you to set the stage. When it comes to crafting your startup’s culture, being thoughtful, introspective and assertive will serve you, your customers, and your team well. Here’s how to take those first few steps.

Understand Your Vision

You cannot get what you want without first knowing what you want. While it may be hard to put your thoughts and feelings into words, you still have to try. For example, define what attitudes you want in employees i.e. thoughtful, informative, enthusiastic.

Define the experiences you want customers to have i.e. educating, fulfilling, comforting. Once you plot out your feelings in black and white you can start to build pathways to reaching those desired results.

Do Not Compromise Your Values

As the leader of a startup, there is no question that you will be living, eating, and breathing your work. Because of the inevitable black hole that people tend to fall into in order to get things off of the ground, be sure to keep your values as your guiding light.

Before you open for business, have a conversation with yourself that reaffirms your moral and ethical ideals. Business strategies, working relationships, and conflict resolutions are all going to require you to think on your feet. Be sure to draft a working plan on how you would like to deal with things (while defining your nonnegotiables) first so that in the heat of any moment, you will know in your heart what you want to do.

Match People and Personalities

Once you draft the ideal environment be sure to fill it with people who will excel in your unique climate. As time goes on, the people that work for you will end up being in closer contact with your customers than you yourself, so you need to ensure that they will carry out the desired plans and actions you’ve set in place.

While you do not have to match each other’s personalities, you certainly can’t clash and above all, every person on your team (including you) needs to carry out the attitude you’re going for in every decision, interaction and move made.

Praise and Celebrate

Crafting your culture will not mean much if you do not continue to instill it in real time. One positive way to do this is to reward people with incentives for carrying out the ideals of the business while making a successful X (sale, connection, discovery).

If you want people to adopt your culture as their working lifestyle, incorporate some feel good emotions by finding your own way to celebrate successes. Celebrations all too often get overlooked in businesses, but those moments of pause and praise can give people a chance to really root in. Define what is worth celebrating in your special world (birthdays, holidays, milestone accomplishments) and make the effort to connect as a team through those festivities.

Keep in mind that your culture is the air in your startup’s lungs. Values and beliefs need to be reiterated day in and day out by means of communication and living by example.

About the author: Kelly Gregorio writes about topics that affect small businesses and entrepreneurs while working at Advantage Capital Funds, a merchant cash advance provider. You can read her daily business blog here.

8 Tips for Successfully Pitching an Investor

Question: What’s your TOP recommendation for an entrepreneur pitching an investor, based on your own success — OR failure?

Share Your Big Vision, Not a Product Tour

“It’s a rookie error for an entrepreneur to pitch an investor with the equivalent of a product tour. Investors are usually more interested in the big picture — your vision for your business, why they’ll be a good match, and how your company will return their money handsomely. If your slide deck or in-person presentation seems to linger too long on touring your site or demonstrating your product, it may convey that you don’t have a sense of the larger mission. Spend less time on the nitty-gritty upfront; rather, capture the investor’s interest with your passion for the bigger picture. Once the investor has a sense of that, s/he can always ask you for a deep-dive into the product tour. And if they do, it likely means you’ve piqued their interest.”

– Doreen Bloch | CEO / Founder, Poshly Inc.

Find the True Believers

“Investors will mostly say no. And contrary to what many entrepreneurs may think, it’s not your job to convince them why they’re wrong but, instead, to find investors that think you’re right. I’ve found that’s the hardest part, really — spending time speaking with investors who aren’t convinced can be a huge waste when, at the end of the day, they aren’t likely to invest in something they’re not sure of to begin with. That’s their job. Not heeding this has been my biggest mistake so far in fundraising and pitching — and eaten up time I could have been searching for true believers and advocates instead.”

– Derek Flanzraich | CEO and Founder, Greatist

Win the Battle at the Beginning

“When pitching to an investor, you’ve got to win the battle ahead of time. I think doing PR and branding work for your company in advance is important. Make sure that when someone Googles you, they see great results. Make sure you’ve built a relationship with one of the partners at the firm. The deal should already be close to being done before you pitch; the “partner meeting” is suppose to be a formality that allows the other partners to feel good about the deal and ask their questions. If you are talking to an individual investor make sure you have milestones that align with your financial projections. Anytime I’ve been able to inform an investor exactly how we plan to produce the projected revenue concisely and clearly, we’ve gotten the deal done.”

– Raoul Davis | CEO, Ascendent Group

Know What an Investor Fears

“The biggest thing an investor fears isn’t what you think it is. Investing in something that fails isn’t an investor’s biggest concern. The thing an investor truly fears most is missing out on something big. The surest way to land an investor is to convince her that your project is a big opportunity not to be missed out on. The best proof of your opportunity is social proof, specifically by having other respected investors on board. Once you find one eager investor, the rest are easy.”

– Corbett Barr | Founder, Insanely Useful Media

Be Cocky to Seal the Deal

“My team and I are super nice people. We originally walked into investor meetings with a huge smile on our faces and a perfectly practiced pitch. Unfortunately, we found out that nice guys finish last. It wasn’t until we changed our approach that we finally closed our million-dollar round. Instead of being friendly and nice, we acted cocky and brash, as if the investor was lucky to be meeting with us. Of course, we were still very respectful, but we stayed away from thanking them for the meeting or sounding too eager for their money. We successfully closed investor pitches when we mentally decided that we are the prize and that the investor needs to impress us in order to take the money.”

– Jun Loayza | President, Ecommerce Rules

Communicate Your Milestones to Build Confidence

“Potential investors want to know where their money is going and what their investment will help you to accomplish. Perhaps most importantly, they want some assurance that you will wisely use their money to hit milestones that will, in the future, allow you to raise additional money. Instill your would-be investors with confidence by clearly connecting the dots between their investment and your business goals. Create a compelling narrative that shows that you will be able to accomplish X, Y, and Z with their money — which will most certainly guarantee future investments.”

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

Do All Your Homework

“The golden rule for meeting with investors is doing your homework. There are two things you absolutely need to know: which industries they invest in and what prior investments they’ve made. This is really the bare minimum; it’s also nice to know a bit about their personal and professional background: where they went to school, what they’ve been posting about on their blog, and what outside interests they have. These things will help target the conversation and demonstrate that you’re a professional and have done your research. You need to show these people that you’re a capable and reliable recipient of their money, and solid preparation will help you jump out of the starting gate in good style.”

– John Harthorne | Founder and CEO, MassChallenge

Do NOT Talk Valuation

“Talking valuation during a pitch is shortsighted for an early-stage investor pitch, and just one of many components that will be discussed at a later stage of the investor discussion. Instead, focus on the team and the technology (you should actually show it to them). Clearly explain the stages of your startup and the reasons why you are requesting a certain dollar figure. Keep the dollar figure on target to a run-rate to achieve your goals through that stage.”

– Carmen Benitez | Co-Founder and Managing Director, Fetch Plus

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.

Startup Tips: How To Do Well By Doing Good

What do you think of when you hear “doing well by doing good” – that it’s a cliché? How about “impact businesses” – sexy? Or what about: “for-benefit companies” – confused yet?

No matter what you call it, many young women today want to align with an organization that is changing the world somehow. But most of us are not quite ready to give up our salary or live in a shared apartment at 32 in order to join a nonprofit we believe in.

But what if there’s a third option?

I attended a United Nations high school (UWCSEA), where the idea of compromise wasn’t discussed much. We were taught that, in any given situation, a solution that works for both parties (or countries, or disputed areas) can be created. Yes, the magical intersection in the Venn diagram is real!

More plainly put, we learned that you can always create a win-win situation to benefit both sides. For companies and startups today, making a profit and serving others are the two big circles — and that sliver in between, for the millennial generation in particular, is the sweet spot, aka “conscious capitalism.”

The line between the two worlds of do-gooders and money-makers is blurring. Companies are finding ways to make both goals definable and attainable. In fact, to stay competitive in today’s environment, you need to help people and serve society. Few businesses can stay competitive if their product or service is not providing value, solving an issue or making a real impact.

Whether in education, energy or health care, entrepreneurs are finding models to make their solution not just viable, but also financially sustainable. Rather than expending their best resources on fundraising and selling to donors, these entrepreneurs are focusing on building a product.

How we found our overlap

ContextMedia began seven years ago, in a dorm room kitchen one Friday night. The mission at hand, if we so chose to accept, was to educate patients living with a chronic conditions on how to live healthier lives via diet and exercise management. We envisioned them learning how to do this through engaging media provided during their office visit.

Three 19-year-old dreamers pooled their savings to buy TVs and DVD players, ripping content online, in order to provide a beta product to physician practices. The doctors loved the product and recognized true benefit to their patients and practice, but had no dollars to pay for it. Did we give up?

No. While we could have gone the 501(c)(3) route and actually drafted some grant applications, we didn’t want to go to sleep worrying each day about running out of money (which is the same reason we didn’t take external capital) instead of executing our vision. So we had to find someone else who also saw value in patients learning to live healthier: insurance companies? Or how about another industry whose mission is to help people live a healthier life – pharmaceutical and device companies?

3 tips for finding — and funding — your big idea

Self-funding an idea that does good AND makes money is possible if you know where to look (and what you want to achieve).

Here are 3 ways to get started:

Identify what drives you in life. What problem speaks to you? For me, it was education — and the powerful freedom of choice that comes with knowledge.
Identify your ideas, skills and resources for providing a solution. More specifically, ask, “What else do I need to do this well?” I had a passion for the power of media communication, but I knew I didn’t have sales or technology expertise. I taught myself a little bit but also surrounded myself with people more talented than me.
Identify a financially sustainable way to execute your solution. Is it direct sales, channel partnerships, sponsorships, ad networks, etc.? If you’re not sure, list the stakeholders who may find value in your offering — and evaluate their ability to pay. As our story illustrates, the best revenue model for your company is not necessarily the most obvious one. Your checks may never arrive from the end user — but that doesn’t mean you can’t create win-win situations where some other company is willing to pay for the utilization of your product or service. You just need to find them.

Perhaps the most exciting news about the increasingly blurred line between doing well and doing good is that young women in their 20s and 30s don’t need to hit that big career brake when they decide it’s time to have a family or pursue something more impactful.

Instead, we can establish and run well-funded enterprises of our own, with a good team and a great model — all while giving us the freedom to choose our working hours, values and goals.

Shradha Agarwal is the Chief Strategy Officer and Co-Founder of ContextMedia, a leading media technology company that educates and informs consumers as they make critical decisions about their health. Shradha was named to Crain’s Chicago Business 40 Under 40 list, and she was the Stevies’ 2012 Female Entrepreneur of the Year. You can connect with her on LinkedIn, Google+, and Twitter.

See YEC founder Scott Gerber at this huge startup conference next week.

13 Ways to Best Prepare Your Team in a Business Crisis

Question: How do you prepare your team ahead of time for a business crisis?

Keep a Positive Mindset

“If something is going wrong, the employees are going to sense it so you should be upfront about the problem to an extent. However, once the problem is mentioned, positive attitudes must replace negative thoughts around the office so moral is not lost. To help this, go for a quick win — whether it be a small account or just an achievement. Change something for the positive.”

– Ken Sundheim | CEO, KAS Placement

Tell Them Before They Find Out

“There’s nothing worse than hearing bad news about the company you work for from an outside source. Always be proactive and communicate what’s to come. You never know, the solution to your problem could come from an unexpected member of your team. Often, your employees have detailed insights into their area of the business that you can’t see as the CEO.”

– Laura Roeder | Founder, LKR Social Media

Overcommunicate Always

“Overcommunication has become a core value of ours — and it starts from the top (or, in our inverted organizational hierarchy, the bottom). I tell our employees everything, share with them what’s ahead, and what I think we’re going to need to do to prepare for it. Then I ask for their help to craft the best response, so they know they’re truly a part of the solution.”

– Derek Flanzraich | CEO and Founder, Greatist

Think It Through Completely

“The biggest thing we teach our clients is to think through what would happen in each type of crisis. Be incredibly specific about who would have the authority to make decisions on behalf of the company and, if possible, have content for social media prepared and vetted by your legal team. Crises are chaotic, so having a clear plan written down and distributed to your team is key.”

– Kade Dworkin | Founder and Chief Crisis Officer, Red Alert Social Media

Hold Your Values Close

“In the midst of any crises, big or small, it’s easy to lose sight of values and focus on survival. Build a culture that reveres and relies on values to guide decisions so they will be ingrained in the way you operate.”

– Kelly Azevedo | Founder, She’s Got Systems

Be Realistic, Really

“Only months after TalentEgg launched, the economy began to crumble. Our business involves helping employers leverage our website to hire students and grads, and many meetings started and ended with the dreaded phrase: “hiring freeze.” I promptly set up a company meeting and outlined our strategy for the next several months. I got buy in from the team and we weathered the storm together.”

– Lauren Friese | Founder, TalentEgg

Train for Crisis Mode

“Startups are going to have crises now and again. Make sure that your team members are aware of what is required of them during a crisis. Do they need to be in the office longer? Are there specific communication protocols you have in place to communicate with customers? Are there a set of resources people need to access when it is crunch time? Make sure your team is aware of these things.”

– Lucas Sommer | Founder CEO, Audimated

Warning: It Happens

“Make sure everyone on the team realizes that shit happens. It just does. No matter how much you plan or safeguard, at some point, you’ll have a mess on your hands. In those times, the most damage is created by panic and stress. Handle the mess with grace, know it will pass, and the team will be just fine. Or it won’t and you were screwed, anyway – but you handle it the same way.”

– Brent Beshore | Owner/CEO, adventur.es

Timing Is Essential

“Proper timing is essential. You don’t want to cry wolf too early and cause a potential panic, but you want to allow your team sufficient time to plan and adjust. If you can stick to the facts and get the brainstorming ball rolling with a few suggestions of your own, you can help your team begin to immediately focus on solutions.”

– Nicolas Gremion | CEO, Free-eBooks.net

Time to Lead by Example

“Transparency is key to surviving a company crisis, but it is not enough. Leaders need to put in the legwork before they bring the team together. Showing up with a proposal for how to handle the crisis will settle the rest of the organization, while providing a framework upon which the rest of the team can build. Convening your team when there is a crisis with your hands-up is not sufficient.”

– Aaron Schwartz | Founder and CEO, Modify Watches

Avoid the Blame Game

“As much as possible, avoid focusing on who is to blame. This strategy will simply lead to guilt, frustration, anger and defensiveness. Instead, focus on solutions to address the current situations and opportunities to prevent similar crises in the future.”

– Elizabeth Saunders | Founder & CEO, Real Life E®

Appoint a Spokesperson

“In a crisis situation, you’re not just contending with internal struggles — your phone is often ringing off the hook with reporters looking for a comment on what’s happened. Have one dedicated spokesperson within your company who is media-trained and well adept at delivering messages to manage these situations and forward all outside calls/emails to them.”

– Melissa Cassera | President and CEO, Cassera Communications

Anticipate With Backup Plan

“We brainstorm all the possible things that could go wrong in all areas of the business. From there, we start creating back-up plans. It’s much easier to think of solutions when you aren’t panicked.”

– Patrick Ambron | CEO, BrandYourself.com

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.

What Investors Really Want to Know

Venture capitalists (VCs) make you work hard for their money by inundating you with question after question about your fundraising process, your company goals, your founding team, among other things. Many of these questions will seem reasonable. Some will seem ridiculous.

But no matter the question, you must have an answer. And your answers better be good.

Behind all of this interrogation, there is one key underlying question: what makes you different? Regardless of the variation on the theme, your potential VC is really asking why your business — as compared to others vying for their money — is worth their investment.

If you’re ready to join the ranks of funded entrepreneurs, you need to be prepared to answer this key question. How?

Begin with a thorough competitive analysis

You need to be able to paint the big picture in broad strokes, providing a comprehensive overview of the competitive market, including potential risks, success factors, and barriers to entry.

Build your value proposition

What is your unique value proposition — and how can you prove it? Identify your customers (or potential customers) and their needs. What pain point are you addressing and what’s your proposed solution?

Once you’ve done your competitive analysis and built your value proposition, you’re ready to make the case for what makes you different, weaving your unique selling points throughout your entire pitch. Make sure to consider the following when crafting your response:

Offering. Specifically, what product or service are you providing that nobody else does? Even if there are many competitors with a similar offering, how can you distinguish yours? Is it a difference of perspective? Cost? Ease of use? Target the little (or big) things that prove the uniqueness of your offering. There needs to be a hook somewhere; find it and use it.
Approach. What makes your business model or marketing strategy stand out? Detail your market penetration potential, including potential sales and distribution channels. You want to show that you have a plan for making money, a plan that is adapted for your particular company — a plan that will work (even where others may have failed).
Technology. If it’s your state-of-the-art technology that makes you different, push this point. Be prepared to show off the technology that is the engine powering your business. Note that if it’s your technology that makes you stand out, you also need to be prepared to discuss future tech developments to show your competitive advantage won’t be lost somewhere down the road, post investment.
Team. Sometimes it’s the people at a startup who make it stand. If this is your company strength, sell it. Who are your key players? What were their previous successes? As any successful serial entrepreneur can tell you, an all-star team (or even a team with one lone shining star) can be a powerfully effective selling point.

It really all boils down to what makes you special. VCs meet so many entrepreneurs; they are the audience for an endless litany of pitches. Unfortunately, this means VCs are often bored and somewhat jaded. They are looking for a spark, for the magic. And they won’t dig to find it. That’s not their job.

It’s your responsibility to bring to the forefront what makes you stand out. Ultimately, you want to thoroughly convince the VC, that, if they take the leap of faith to invest in you, you are going to execute on your vision in a way that you—and only you—are in the unique position to execute on.

David Ehrenberg is the founder and CEO of Early Growth Financial Services, a financial services firm providing a complete suite of financial services to companies at every stage of the development process. He’s a financial expert and startup mentor, whose passion is helping businesses focus on what they do best. Follow David @EarlyGrowthFS.

A Startup Guide to Energy Efficiency

The best time to start thinking about energy efficiency and cost saving for your startup is as soon as you start detailing your business plan. Build energy saving steps into your plan early, and start saving money on day one. If you wait until the business is moving down a path of wasting energy, you’ll spend a lot more time and money getting back onto a cleaner path.

Begin creating energy-efficient policies and procedures so your staff will know you are serious about saving energy. Reinforce and reward energy-saving behaviors. It’s easier starting this way than trying to change the company culture later.

This also gives you an opportunity to think about your energy usage plan. If you’re in an energy-deregulated state, choose an energy provider that meets your preferences. If you consider yourself a “green” company, this is the chance to associate your business with one of the renewable energy resources available in your area.

Start a List by Starting Simple

A startup has enough things to think about, so they should start simple when it comes to energy management. Start with the lights in your office.

Take advantage of the natural light coming in through the windows. Keep the lights off throughout the day if there is enough natural light for people to do their work. Change the light bulbs in the office to energy-efficient compact fluorescent lamps (CFLs). Where you need more lighting or spot lighting, use halogen lights or LED clusters.

Install motion sensors where it makes sense in the office. Areas such as restrooms benefit from motion sensors, so the lights aren’t on for long periods when there are no people present. Get your office lighting on a schedule. Make sure the lights are off during evenings, weekends, and holidays when people aren’t there.

Be on Schedule

Depending on the type of business you have, a startup schedule can be very important. Food Service Equipment and Supplies suggest a food service business can save a lot on energy costs by creating a schedule of when to turn on cooking surfaces. A broiler that is only used at lunch and dinner doesn’t need to be turned on at breakfast. Put the kitchen on a schedule on opening day, so the staff gets accustomed to the procedures.

Track the Temperature

Monitor the HVAC system and thermostat. Again, the environment only needs to be comfortable when people are present. If you open windows to allow fresh air in, adjust the thermostat so you don’t lose energy dollars out the windows.

Make sure doors and windows seal properly when closed. Doors should have automatic closures on them. Your HVAC expenses could be some of your highest costs. Be sure to fine-tune your heating and cooling schedule so you’re not wasting money.

Be Well-Equipped

The U.S. Small Business Administration recommends using equipment with the Energy Star rating. To receive this rating, products must prove they can operate 10-15 percent more efficiently than the non-rated devices.

Plug desktops, monitors and printers into power strips so they can be turned off while not being used. Minimize printer and copier use. The startup phase is a good time to try to be a “paperless” office.

Peggy Smith

Peggy is a sustainability specialist from Arizona who writes about solar energy and green living.

Rookie Mistakes Startups Make All Too Often

When an entrepreneur is preparing to launch his first business venture, he works hard to avoid making critical mistakes. But there have been plenty of instances where business rookies made blunders that almost cost them their financial futures. If you are a business rookie, then you can smooth out your startup by learning from the mistakes of others.

Not Delivering on Promises

Image via Flickr by hz536n/George Thomas

Business rookies think that making big promises is the best way to get people interested in a new business venture. But if you do not deliver on those promises, then it could cost you dearly. In 1958, Ford marketed the Edsel as the “futuristic automobile of the future.” The anticipation was so heavy that people waited weeks just to see the new design. When it was finally released, the Edsel did not deliver on any of the marketing hype that preceded it, and it cost Ford money and severely damaged the company’s reputation.

Not Scouting the Competition

In the 1970’s, Betamax and VHS were competing to see which would be the home video format of choice. Sony was pushing the Betamax, but the bulky Betamax machines and limited tape recording time were no match for JVC’s VHS format. Sony made the mistake of not doing a comprehensive analysis of the competition before releasing its product. It is a mistake that too many rookie business owners make, and it can stop their business cold.

Not Incorporating

When you incorporate your business, it becomes its own legal entity and offers you protection from legal action. If you are not incorporated, then a customer could sue your company, and you could lose your home, your car and everything else. If you are incorporated, then you have a level of protection against legal action that can help to protect your personal assets from exposure.

Not Getting Good Money Advice

New business owners have a lot on their minds, and they need to focus on their business to make good decisions. To try to save money, rookie business owners will often neglect getting financial advice from experts because they think it is too expensive. The truth is that good financial advice can pay for itself. You can follow Fisher Investments on Twitter @FisherInvestUK to get good money advice that you can use.

Not Making Wise Decisions

The DeLorean Motor Company started building luxury cars in 1980, and their cars quickly became sought after status symbols. In 1983, founder John DeLorean was recorded telling a government informant that he thought a suitcase full of cocaine was “as good as gold,” and everything changed. It was later revealed that entrapment charges against the officers conducting the investigation allowed DeLorean to go free, but the damage was done. As a business rookie, you need to always think about your business, and make the right decisions for your company and your own future.

A business rookie is always learning important business lessons that should help him become a better business professional. But it is always a good idea to try to avoid making the big rookie mistakes that could cost you the business you have built, and everything you own.

What Do You Do With Your “Aha” Moment?

Eureka! Bingo! Aha.

The “aha moment:” the very second you know that what’s in your head makes sense. Sometimes this “aha moment” means more, though. Your aha moment is that idea that makes your eyes light up and your “free time” turn into daydreaming and/or planning sessions.

Everyone has ideas, but not everyone has an “aha” moment. But, those that do have some pretty special stories.

Though I didn’t know it the first time we shook hands, Brandon Twitty, Founder and President of Dead Inventory Management System (DIMS), is a Marine. “Tatted up” a bit, he gives the impression of a Dwayne Johnson, The Rock, mixed with a young Rocky Balboa at first glance.

“In my eyes, there are two types of ‘aha moments,’” he says. “One is, ‘yeah, I’ve got an idea, and yeah, it’s going to work.’ The other is, ‘I don’t care about anything; I don’t want another job, and this is what I want to do.’”

Most people would still consider the United States to be the wealthiest country in the world. There’s another thing that Americans are usually famous for too: waste. Witnessing firsthand this now commonplace aspect of American life, Twitty saw the opportunity lying in front of him (and all of the other employees of his former company, for that matter) quite literally being thrown in the trash.

What exactly happened, though? He explains, saying, “I was there on a Saturday, and I saw all these guys walking and wheeling away big boxes of [automation parts]. I’m an automation engineer, and I can write programs for automation lines. I knew how to program these machines. But these guys were coming back with nothing, and I knew that the only thing down there was the dumpster. ‘What did you do with all that stuff?’ I asked them. They said they threw it away. So I went and got it and sold it. That was valuable stuff.”

I asked him if the company had a problem with what he was doing, to which he responded with a nonchalant, “No, they don’t care. They do it every four months.”

After asking around the company a bit, he was able to hit the nail on the head. The reason his and other companies around the world throw perfectly good, usable products away: it’s a hassle. Companies could list the products on eBay, but it took too much time. They could keep the inventory in a corner and try to sell it later on, but it takes up dollars and space in the warehouse. Nothing was easy, and nobody wanted to take the time to do it.

Boom. Cue “aha” moment number one.

Twitty programmed a scanner to scan all the extra items in the warehouse companies wanted to sell. “You scanned the item, the scanner took that information and pulled all of the necessary data from the web, and it created a listing for that item. It basically created a full eBay listing in three to five seconds.”

For any of you who have ever tried making any money off of eBay, you know it’s impossible to list items that quickly and that efficiently. Now imagine doing an entire warehouse full of items. I’ll take the scanner.

The second “aha” moment came more like a slowly-realized epiphany.

When Twitty was asked why he thought he could get away with this, his answer was simple.

“I’m a Marine; I’ve been through hell and back. Then I was working 80 hours a week – every week – and I didn’t go home until I got the machine I was working on up and running again. If we had orders to fill before the end of the year, I was there on Christmas Eve…The work wasn’t worth the pay. I knew that I could do all of this stuff by myself,” he said. So he did. Aha.

“As an entrepreneur, you realize you can’t do it all by yourself. So it’s important to have a good team to back up your ‘aha’ moment, and I think I’ve got a good team,” Twitty finished.

(Note: Since then, DIMS has now moved to a cloud-based system for their own online marketplace: www.manufacturersinventory.com.) DIMS was founded in 2011 and is headquartered in St. Louis, MO, where they became part of the Spring 2013 class of the St. Louis-based Capitol Innovators accelerator program. Check out www.deadinventorymanagement.com for more information or follow them on Twitter (@DIMSystem and @mfrinv).

Tyler Sondag is a startup connoisseur with a hand in anything and everything you could imagine. Hailing from the ever-developing Northwest Mississippi, an alum of Saint Louis University and currently a transplant to St. Louis, Missouri, one of his main missions in life is to get and keep young people engaged in the entrepreneurial ecosystem.

Easy Ways To Save On Electronics As A Startup

Starting your own business is a risky venture. Technology is everything in this day and age, and getting the right equipment for your office is expensive. Here are some easy ways to save on electronics for your startup.

Bring Your Own Device

Image via Flickr by DennisCallahan

Incorporating a BYOD policy is a wise idea. With a BYOD policy, employees will use their own phones as work phones. This will save you a ton of money because you won’t have to buy phones, activate them, and sign them up for data plans. With the BlackBerry 10 OS, people can separate their phone profiles into personal and professional sides, so you won’t get confused with apps and information on either side. You can also use mobile management software so you can keep all of your employees in sync.

Another area where you’ll save money by having a BYOD policy is with office phones. If you’ve got a BYOD policy, you have employees with cell phones — there’s simply no need for an office phone. By not having an office phone, you’ll save hundreds, if not thousands.

Buy Used

Most retailers offer used or refurbished electronics at deep discounts. Take advantage of these deals. They’re under warranty and guaranteed to be as good as new. Check discount stores and online sites such as Craigslist for used furniture. On Craigslist, you’ll often run across people that are just parting with their furniture because they’re moving, so you’ll be able to strike up a good deal.

Search for Deals

Image via Flickr by analogkid281

If you have to have an item and can’t find it used, you’re going to have to search for deals. Sites such as RetailMeNot, Groupon, and CouponShack host deals from around the web, so before you buy anything from any website, check with these sites first. You may end up with free shipping for a percentage off!

Another way to look for deals is with Google Alerts. With Google Alerts, you can have Google send you an alert whenever a product drops in price. This is perfect if you’re waiting for an item to go a few dollars lower before dropping the money on it.

Move to the Cloud

Cloud computing isn’t really anything new, but its popularity is soaring. By moving your servers to the cloud, you’ll save your company thousands of dollars annually. The up-time with a service such as Amazon is likely going to be much better than your current provider, and you can use Amazon for storing data and backing up files. This is ideal for employees that want to work out of the office as they can simply log in, download the files, contribute, and upload it again for the next person to work on. With cloud storage, there’s no need for a centralized office!

If you don’t know what you’re doing, you’ll quickly sink a ton of money into your startup and it’ll fail before it even gets a chance to start.

Have you tried some of these tips? What other tips did you use?

DJ Miller, a graduate student at the University of Tampa. He’s an avid gadget geek and spends most of his time reading or writing. He is a huge fantasy sports fan and even runs his own blog for fantasy help.

Why Niche Conferences Provide the Best ROI for Startups

It’s easy to assume bigger is always better — especially when you’re a small business trying to grow. When it comes to choosing a conference to attend, though, it’s not size that matters as much as niche.

By choosing conferences that have the most industry-specific content and the greatest networking opportunities for your business — as well as making a deliberate effort to meet people before, during, and after the events — you can maximize the ROI of each conference you attend, even if it’s not a monster like TED.

Large vs. Niche Conferences

Huge conferences try to appeal to a diverse pool of potential attendees, casting very large nets and offering a wide range of topics. This is great for a conference trying to sell tickets, but not for small business owners in need of specific, applicable content.

Small business owners with limited budgets need content and opportunities that meet the exact needs of their businesses to make an event worthwhile. Many niche conferences offer great educational panels and workshops for a lower ticket price than some of the big-name conferences, and it’s often easier to connect afterward with speakers.

Another advantage niche conferences have over larger, broader conferences like TED is the type of people they attract. The attendees of smaller conferences tend to be CEOs, presidents, or business owners. Having a pool of decision-makers to mingle with makes niche events networking goldmines.

How to Capitalize on Your Conference

To ensure a conference experience is a valuable one, there are steps a business owner should take before, during, and after:

Before

By doing your homework on each conference’s speaker lineup and event itinerary before you buy tickets, you can get a detailed view of the exact topics covered. Make sure the content, workshops, and speakers connect with the type of business you are and touch on the issues that are important to you.

Investigate the reputation of the organization hosting the conference. A lot of conferences look and sound attractive, but they turn out to be big pitchfests. Make sure the conference you’re attending is committed to providing you with useful material — not just providing its speakers an opportunity to sell their products and services.
Seek out social proof by talking to those who attended the year before. If the conference is new, research the speakers to make sure they’re knowledgeable.

During

With the proper approach, each session can provide value. Just keep asking one question: How does this apply to me/my business?

Listen to the questions others ask. There might be a way to apply the answers given to your own business. Don’t hesitate to connect with someone who asked an interesting question later on, either; sometimes, the most valuable insights emerge from discussions sparked in panels.
Take notes in the moment. I keep a single sheet of paper in the front of my notebook to log my “biggest takeaways.” These are the ideas I want to tackle right away once I get home, but I might lose track of them if I don’t write them down on the spot.
Stay socially active. It’s common for conferences to boast having the coolest parties and networking opportunities, but no amount of “cool” can automate the networking process. You still have to put yourself out there to make connections.

After

The day you get back is crucial. While it’s tempting to dive right in to answering your backlog of emails, right after the conference is when you’re the most motivated to take action on anything you picked up.

Pull out your “biggest takeaways,” and use them to lead a brainstorming session with your team. Decide which ideas are the best for your business, as well as how you’ll implement them.
If you don’t have a team, take out your calendar and designate a time to focus on each idea on your “biggest takeaways” list. This can keep you from losing the momentum and motivation you gained from the conference.

Although big-name conferences may hold a lot of appeal, it’s important to remember that great things come in small packages when you’re deciding where to put your hard-earned money. Look for niche events where you can really connect — you’ll get more than you ever bargained for.

Lena Requist established herself as a powerful force in business before joining ONTRAPORT as COO in 2009. The organization’s own event, Ontrapalooza, is later this fall, Lena has a passion for helping female entrepreneurs and is the founder of a virtual Women in Business group, where empowered women can share their strengths, struggles, and triumphs with each other. Connect with Lena on Google+ or Twitter.

Speaking of conferences, do you have your ticket for Everywhere Else Tennessee?

Startup Tips: 5 Tips to Make Your Inbox More Manageable

If you’re like me (or me a month ago), your inbox seems to be like a cancer that is growing faster than you can possibly lop it off. A day out of the office, or a morning of back-to-back meetings, leaves you to return to an unread email count in the hundreds. Just keeping up with your inbox could easily be your full-time job, except for the fact that it wouldn’t cross a single thing off your to-do list.

Tired of wasting time, sacrificing productivity, and putting up with inane subject lines because of email clutter? Here are five simple ways to declutter your inbox.

Set up Priority Inbox. If you use Gmail, you may be missing out on an amazing feature called Priority Inbox. I was initially hesitant to try it because I was worried I would somehow lose emails with it, but it has actually helped my productivity more than anything else I’ve done. Priority Inbox puts new emails in two different places within your inbox — one for ones it considers important, and another for ones it considers unimportant, based on the sender and subject line. Now, even though I might have 90+ new emails when I come into the office in the morning, I can immediately see the 12 that need my immediate attention, rather than getting lost in a sea of daily deal offers and cat slideshows until lunch.
Create filters. Many email providers allow you to set up filters for certain types of emails. You can use these filters to do lots of things: apply a certain label to an email, delete it, send it immediately to a certain folder and more. For the emails that aren’t urgent, set up filters so that they to skip your inbox and go straight into a certain folder for later. Then, once a day, go into that folder and see what’s new. I use this for internship applications I receive, emails from the shopping websites I subscribe to and emails sent to a former employee who no longer works with us.
Use Boomerang. Boomerang is a free plug-in for Firefox and Chrome with Gmail that allows you to do things like schedule an email to send in the future, bring an email back to your inbox at a certain time (like your flight itinerary the day before your trip) or return an email back to your inbox if you have not received a reply to it after X days. Rather than leaving an email in your inbox just to remind yourself to follow up on it or have it to easily access for later, use Boomerang to clear it out for now and have it come back when you actually need it.
Unsubscribe from 90 percent of the lists you’re on. While you probably just delete most of these unwanted emails every day, they clog your inbox, waste your time checking them off and then pushing delete, and make it hard for you to see the emails that actually matter. For a span of about a week or so, every time you get an email you do not want to receive (the ones from your mom don’t count!), take the time to open it, scroll down, and figure out how to unsubscribe from the list. It will require a little more time upfront but it will pay off in the long run when the number of emails you receive on a daily basis goes way, way down. You can also use a service like the Swizzle to help you unsubscribe from lists all at once or opt to receive daily digests from certain lists instead of individual emails.
Use your calendar rather than your inbox. People often leave emails in their inbox to remind them to do something — to make a call, start a project, or to follow up with someone. Instead of taking up valuable inbox space with emails you have already read, schedule these to-dos in your calendar to remind yourself that way. If you’ve been meaning to call to make an appointment somewhere but the place doesn’t open until Tuesday, create an event in your calendar for Tuesday at 10:00 a.m. as a reminder, rather than leaving the related email in your inbox (which you might not even see on Tuesday anyway).

Stephanie Kaplan is the co-founder, CEO & Editor-in-Chief of Her Campus Media, the #1 online community for college women and marketing platform for companies looking to reach the college market.