4 Reasons Choosing Startup Life Over College Is Totally Worth It

In 2011, I wrote a post called “Why I Didn’t Get A Real Job” that got a lot of attention. Admittedly, it was a childish reaction to a relative’s assertion that I needed to go get a “real job.” After a few months of full-time entrepreneurship that same summer, I thought I was finally experiencing the startup life. Twenty-four-hour hackathons, no set hours, no boss — “Oh yeah!” I’d say, “let’s disrupt stuff!”

Okay, maybe I wasn’t quite the walking stereotype of Sh*t Entrepreneurs Say, but you get the point.

In April 2012, however, I sat at a crossroads: continue to just scrape by or go all in on my startup Fetchnotes. After a lot of internal struggle, five of us decided to leave the University of Michigan, and our journey eventually led us to TechStars Boston’s Fall 2012 class. With that decision 9 months in the rear view mirror, I’ve had some time to reflect on what really happens when you leave school to start a company.

1. Most people will never quite get you or what you’re doing.

When I talk to people about what I’m doing, I usually get one of these responses:

“So, are you, like, the next Mark Zuckerberg or something?”
“So is TechStars, like, paying you to work on Fetchnotes for them?”
“How long do you plan to do this before you get a real job?”
“How long until you go back to Michigan?” (As if it’s some sort of semester abroad program.)

The fact of the matter is, no one understands until they’ve been in the trenches. And that’s okay. It’s actually part of what I like about not being in Silicon Valley. Even in Boston, with its thriving entrepreneurial communities, most people I meet think what I’m doing is interesting. Maybe it’s an ego thing, but it provides a small dose of happiness every day.

2. All time is not created equal.

As you shed your other non-entrepreneurial responsibilities (like class), each individual unit of your time becomes more valuable.

You’d think it would be the opposite — when you have less time to give each hour is more precious, and there are diminishing marginal returns on your productivity. But in practice, when you have no other distractions, you actually become more productive.

As we dedicated more time and intensity to our specialties, this could be seen across all functions of the business. I became a more effective hustler. Our engineers became more efficient coders. The chemistry that evolves from a small team marching together all day, every day, in lockstep toward the same vision holds incalculable value.

3. Emotions are magnified — both the good and the bad.

Inevitably, there will be some crisis that rocks your foundation so greatly that you don’t know how to respond — and entrepreneurs are such good salesmen that most people have no idea there’s anything wrong. With no finals or homework to distract us, we walk around with a smile masking the internal disposition of a zombie. No one likes to admit it, but we tend to be emotionally unavailable to the outside world when it comes to problems in our startups. Just like parents, we never want to hear that our baby is anything but a darling prodigy.

But then, there will be days of pure, unmitigated ecstasy. You get two large investor commits in the same day. You get introduced to people who basically invented the Internet as we know it. You have two-hour whiteboard sessions with people whose theories you’ve been studying from afar. The press raves about your new release. You scream “YES!” and high-five anyone in your vicinity without explanation. You dance in place.

These are the moments that turn the Startup Bug into Serial Entrepreneur’s Disease.

4. The journey will be worth it in more ways than you can imagine.

Many more qualified people than I have espoused the virtues of starting a company over pursuing a traditional university education. But what makes it worthwhile are all the little things that mean so much more because you’re experiencing a level of career satisfaction most people must wait years for, if they ever achieve it at all.

It’s John-the-building-security-guard finally remembering your name and no longer making you sign in after three months of seeing you every single day. It’s finding out how many other people in your network have started using your product without you saying a word. It’s regularly enjoying team dinners and signing the check.

And then, one day, you look around at that very table of team members and notice that, for once, no one is talking about work. We’re reminiscing about a crazy adventure from the night before, or planning a concert for next weekend, or poking fun at each other’s dating lives. For the first time, you grasp the fact that the bonds you’ve forged would not have been so tight had you not convinced your team to take a bet on you, and more importantly, on themselves.

It’s the moment you realize that what makes you unique isn’t the pursuit of success, wealth or power. It’s that your mission in life is about the pursuit itself, rather than what you’re pursuing.

Alex Schiff is the founder and chief executive officer of Fetchnotes, which makes productivity as simple as a tweet. Prior to Fetchnotes, Alex was the vice president of Benzinga and a student at the University of Michigan’s Ross School of Business.

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.

Three Lessons to Learn from Up-and-Coming Entrepreneurs

What makes so many up-and-coming entrepreneurs so wildly successful?

If you thought it was age, connections, or just some stroke of luck than think again because these modern entrepreneurs have something valuable to bring to the world even if it isn’t apparent to those outside of its understanding.

There is something about their work ethics, passion, and drive to explore the options that allows them to capitalize on trends, innovation, and markets long since dominated by dying companies.

1. Low barriers for action

Eyal Lichtmann sums up, quite perfectly, why agile entrepreneurs are able to make such a big impact:

“Find a niche. Go for it. Everybody has a dream, but only dreams plus action equals reality. There is no guarantee of success, but there is a guarantee of failure if you do not try … Dream big… then focus on the details.”

Traditional businesses are often govern by bureaucracy which places too many hurdles in the way of innovation and agility; smart entrepreneurs go with the flow, set out on big goals, and put in the time, energy, and resources to see a project to completion even if it hasn’t been analyzed to the 10^th degree by some “quality assurance” department.

2. A transparent, agile process

Eric Reis of the Lean Startup book/idea has two very important concepts about business that many traditional and overreaching businesses seem to miss the mark:

· Our goal is to learn as quickly as possible

· Don’t believe your own propaganda

Small and big businesses that were formed on the traditional approach such as outlining a detailed business plan, setting structure, and creating a tough product production process become bogged down with the ability to adapt their products based on customer feedback. Likewise, spikes of success can lead to having a false sense of security in the industry and market when in reality the product is already marching toward doom because it has been outclassed by an up-and-comer.

The thing you want to take away from this is that you must always pay attention to the customers and snap on a moment’s notice to make the changes that will keep them sealed to your brand.

3. Unity through creativity (not tyranny)

A boss should be a leader – not an individual that overly demands and controls every aspect of a project.

Businesses stagnant and waning in their industry, more often than not, are ruled by bosses that have an iron grip on their creative and talented team. The nit-picking and micro-management stifles creativity from those that are fully trained to complete a task – they were hired for their talent but the boss becomes their toughest hurdle.

The business that are doing great, agile things are the ones that allow for creativity thinking, flexibility in their work, encouragement from their peers and bosses, and give all the appropriate tools and resources to tackle an objective in the manner they see best fit.

Because these entrepreneurs act like leaders, rather than bosses, they are able to create and innovate in their industry where others fall flat.

Kelly Jane Brown is an aspiring writer, entrepreneur and student at UCLA.

13 Pieces of Startup Advice You Never Thought Of

Question: What’s your most unorthodox/funny/strange-but-good advice to other startup founders?

Get a Vacuuming Robot

“When you’re in startup mode, you’re not thinking about cleaning. The downside is that your environment really affects your productivity, so having a clean home office is crucial. Consider hiring a cleaning service or getting a vacuuming robot to make sure that you’re working in the best conditions so you can produce your best work!”

– Nathalie Lussier | Creator, The Website Checkup To

Working Out Will Save You Time

“I’ve found I’m so much more efficient after I work out that I always gain productive time, not lose it. Seems counter-productive for many, but my startup founder friends who don’t exercise regularly find it harder to stay focused, tougher to be creative, difficult to maintain a good diet, and are just less happy in general.”

– Derek Flanzraich | CEO and Founder, Greatist

Clean Your Employees’ Mugs

“As a founder and leader of your startup, you want to demonstrate to your team that everyone has to play multiple roles within the company — and some roles will be cool, others not so much. On Monday mornings, I like to go around and ask team members whether they need their mugs cleaned. Sure, I like to clean, but also I like to demonstrate that I am not above playing the role of a dishwasher.”

– Eric Bahn | Co-Founder, Hustle Con Media

Make a Championship Belt

“Create fun ways to reward employees. I give my employees a championship belt to place on their desks when they do something exceptional for the company. You will be able to get top performance from your employees by showcasing unique rewards.”

– John Hall | CEO, Influence & Co.

Decorate Your Work Space

“Boring work spaces make boring and less productive employees. Finding decor that you can afford and will motivate your staff might be tricky, but it is a proven fact that work performance is enhanced when employees are inspired and energized by their surroundings. Inspiration comes in many forms, so make sure your decor is consistent with your business goals.”

– Erika London | Co-Founder, iAdventure.com

Get Barefoot in the Park

“Think about it: a person takes off his shoes when he gets home and gets comfortable, which is the exact atmosphere that helps early-stage startups succeed. Early employees need to feel at home at the office, and they need to bond with their teammates like family. Don’t allow shoes at the office, and employees will stay later in the night and build a closer bond with their teammates.”

– Jun Loayza | President, Ecommerce Rules

Work in Corporate America

“This may sound weird, but it’s true. It’s wise to learn and make your mistakes on somebody else’s watch before risking everything on your own. And if you don’t have the right business skill set to start, launching your own company is going to be an uphill battle.”

– Alexandra Levit | President and Founder, Inspiration at Work

Encourage Daily Siestas

“Approximately seven hours after waking in the morning, we experience an energy drop that prevents us from working effectively. This is the perfect time to have a post-lunch, 20-minute catnap; studies have shown that midday napping can significantly improve performance. Some employees might feel uncomfortable napping during the work day, so lead by example and take a nap every day.”

– Emerson Spartz | CEO and Founder, Spartz

Get Over Yourself!

“Get over the fact that you are going to turn off a lot of people while running your startup. That includes your family, friends, prospective investors, prospective customers, media, etc. Once you do that, a great majority of the weight you carry while trying to run your startup dissipates.”

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

Don’t Try to Boil The Ocean

” It’s a great visual analogy, and it perfectly encapsulates a major challenge for any startup founder. You’ve got to take the challenge on, one gulp at a time.”

– Brent Beshore | Owner/CEO, adventur.es

Give Time to Other Startups

“I’ve spent 10 hours a week over the past two years “advising” startups — formally or simply as a sounding board or beta tester. It’s great to have tunnel vision with your product, but supporting others has a few incredibly positive effects. You’ll meet very interesting and skilled people who can help you, and you’ll uncover clever ways to solve your own challenges.”

– Aaron Schwartz | Founder and CEO, Modify Watches

Take a Vacation

“Really, take one. When you leave your team to execute on their own, you’ll see where all the holes in your company are, and then you can work on patching them. You should be able to leave your company for a few weeks without them needing you.”

– Bhavin Parikh | CEO, Magoosh Test Prep

Don’t Live With Co-Founders

“Don’t live with your co-founders. When you’re part of a startup, you’re likely spending 15-20 hours a day with your co-founders. It’s inevitable that they will start to irritate you. If you have to spend your precious four hours of free time with them too, you can add their snoring problems to the mix!”

– Patrick Ambron | CEO, BrandYourself.com

At this national startup conference (that even you can afford) You’ll get great startup advice too!

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Been There, Done That: A How-To Guide from a Real-World Entrepreneur

Small businesses represent more than 99.7 percent of all employers in the United States. How do you get yours off the ground and running? While I was taking Indie Peace from concept to company, I learned a few things—some the hard way.

Great idea, maestro!

You’ve identified a niche and are poised to meet a need. You’re prepping to deliver a wonderful product into a market you hopefully know like the back of your hand. Feels good, doesn’t it? The tips may provide some lift to your business wings during your entrepreneurial flight and ensure sustainability along the way. Good luck!

1. Warm up your wings before you leave the nest—or crash like a rock.

There are thousands of risks in starting a new company. Reducing those risks as much as possible beforehand is vital. It’s an unknown road, yes, but without the unknown, we don’t really have an entrepreneurial adventure on our hands. Foresee the ups and downs of your journey; no one else will do it for you, and it will also help you feel less stressed as you navigate uncharted territory. The clever predictions you’ve forged from your upfront due diligence will serve you well.

Sustainability is the operative word here. Once you get going, don’t stop. Anyone can start a company, but few can sustain one. The key is seeing every possible outcome and determining the required pivot you must make along the way. Remember, this is a journey, not a destination. What do the first two years look like? What are the major milestones? Do you have all you need to meet your goals? Validate your revenue model for roadblocks. Create a journey map for your business that highlights the first major achievements.

2. Welcome the opportunity to punch holes in your business—from everyone.

Entrepreneurial wisdom can be found in the strangest of places, but be careful where you seek it. Great advice can carry the side effect of fear, so maintain your energy throughout and let nobody dampen your flame. Most times, good advice from friends or family is exuberantly given from a personal obligation to see that you don’t fall on your face. Don’t let them take the wind out of your sails.

The worthiest advice can be given from those with defeatist attitudes and the worst advice can sometimes come from those who are most qualified to give it. The least qualified can sometimes be the best for challenging your assumptions early on. They also bring an added layer of creativity, as they’re not informed on the traditional roadblocks in your industry.

Validate what you see as real threats and have a system for solving them. Punching holes in your business will serve you extremely well. Leverage all the minds around you to mitigate risk while putting your pride aside.

3. Form your board of advisors: The Specialists.

Once you get past the embryonic phases of your business concept, one of the quickest and easiest ways to sidestep landmines is to form a team of advisors, ideally consisting of successful entrepreneurs who have made the journey at least once, and leverage their expertise and experiences often. Believe it or not, most entrepreneurs love helping other businesses. They miss the startup phase and like to join in the conversations. Start with one or two people that you can call at anytime for advice. Ask family members and friends to refer you to people they know. Look for “specialists” with knowledge in a specific area, such as obtaining funding or taking a new product to market. You don’t need anything formal and your “board” never even has to have official meetings. In fact, my personal board of advisors has never gathered together to meet since we’ve been in business, but I know I can call on each one of them to advise within their specialty. They really enjoy it.

4. Find your tribe.

Find the local, entrepreneurial tribes on the same journey as you and get involved. Attend all the events and discover the ones for you. Try entrepreneur.Meetup.com, Cofounderslab.com, LinkedIn entrepreneurial groups, and spend some time on Google searching for entrepreneur societies and small business groups in your city. If you cannot find anything, create your own. The university or college near your city will probably have an entrepreneur institute on campus. Contact the director and see how you can get involved.

Co-working facilities are my favorite places to connect locally. They cater to entrepreneurs and host mixers and business pitch nights to share ideas and contacts, and are great places to meet all types of local mavens; I met my developer at one. The most important thing is to be involved; after that, the possibilities will present themselves.

If your tribe is not present locally, find them digitally. Ask your social network to make recommendations.

5. Consider a doing well by doing good business model.

Many times, sadly, businesses are formed purely for making as much money as possible. Consider ways your company can give back versus take away; a business that assists in the collective cure versus the disease. Embed something you care about into your product or service. Don’t simply form a business to make something as cheaply as possible and sell it as expensively as possible. Create a product or service that will make you smile when you go to sleep at night. This will sustain you in your business and be the primary source of your passion.

This also makes it easy for you to grab people’s attentions and elevate their eagerness to help. New businesses usually cannot afford a lot of public relations (PR) and marketing. Here’s the great gift to building a business of purpose: people want to help the “good guys”—especially in the digital sphere. Enhance your original idea accordingly. What do you care about? How can you and your business give back? For instance, in Indie Peace’s case, we support organic farming practices in the U.S. by only buying organic cotton grown on U.S. soil. All of our garments are exclusively made from organic cotton, so we eliminate herbicides, pesticides, defoliants, and fungicides from our environment and water systems. One shirt purchased versus non-organic eliminates 4oz. of pesticide use. Perhaps there’s a way you can give a percentage of sales to a charity you love.

Unless you’re creating a new market or disrupting one, you must find a way to separate your company from the “noise.” Enhance it with a social or environmental impact model. Be the small business you would like to see more of in the world. This may be tougher in the beginning, but in the long run it will generate more positive PR and social media buzz. Entrepreneur Magazine ran a two-page spread on Indie Peace—free PR I likely wouldn’t have received without our environmental mission.

6. Sell the idea that your business is great in 30 seconds.

Nail down a succinct description of your business that you can communicate in 30 seconds or less. Know it by heart. Whether you’re taking to an investor, an advisor, or a random person at a football game, it’s essential that you describe your business consistently and effectively. This also helps sharpen the way you describe your company to press, video, social media, etc. You’ll use it more than you know, so really know your company and its reason to exist.

7. Create a business plan that you actually use.

Unless you need capital, you don’t really have to have a formal business plan. Business plans tend to be stagnant documents that are read once and then forgotten. Instead, create a living “planning document” that is continually updated and revised as needed, with next steps and actionable line items that can be instantly assigned as tasks to be performed. Keep a good two-page executive summary on your company that you constantly update and are able to send out to those who express interest. Find a cloud solution that allows you to store your business work in a central location and assign out tasks with ease to others working with you. This makes it easily accessible to anyone on your team and more apt to evolve with your business. It’s great for instantly adding new team members to the conversation as well.

8. If you need capital, multiply whatever you think you need by two, and then assume you won’t get it.

Raising capital may be the biggest challenge for businesses. It was definitely the hardest thing I’ve ever done in my business. Many entrepreneurs don’t want to ask for the amount of capital they really need because they don’t want to scare off potential investors, but then end up underfunded and unable to sustain the business. It also signals to the investor that you don’t know the industry and the operational requirements for your company. Break the real number out and try to raise it in tiers.

Make 100 percent sure that if you miss an investment round, you can still keep your company in business. Funding is a moving target; it usually won’t happen when you think it will. It’s vital to have strong insulation by assuming you won’t raise the capital at the intended time. There is no way to put a timeframe on when investment will occur, but you do know when your own money will run out. When you estimate the month you need to secure the next round of working capital, add another 8 months to that and find a way to keep things moving until then. See where you can cut some up-front costs to add this investment padding.

Start with a short list of where you can go to raise the first round of capital you need—friends, family, bank, etc. Learn the art of crowdfunding. Learn all the platforms (Kiva.org, Kickstarter.com, indiegogo.com, Fundable.com, Peerbackers.com). The recent Jumpstart Our Business Startups (JOBS) Act encourages funding of small businesses by making it easier to raise money from many small investors instead of a few large ones. It can help you bridge the gap in funding for things like prototypes before you get to larger investors. What happens on crowdfunding sites is also valuable for validating whether or not your concept really has wings. When you’re ready to approach larger investors, divide whatever you think your business is worth by 1.3. Entrepreneurs are notorious for overvaluing their companies. This keeps you on a level with what the investors will be thinking.

9. Compete in business competitions.

Search online for new business competitions; they’re easier to win than you think. I won two of them for Indie Peace and it helped us in a multitude of ways. Always keep this on your shortlist of funding options. There are usually fewer entrants than you might expect, and if you are coming in with an environmental or social impact model, your odds increase. Moreover, these competitions provide great marketing and PR.

10. Weatherproof your business.

Set up your business to function even if there is an economic downturn, or if you do not secure investment at the intended time. Have backup suppliers. We have Indie Peace to the point now where we don’t need investors, but when we first started out, our business model relied heavily on investment rounds being achieved. This put us in dire straits when the economy tanked a few years ago. Investors were hard to find, boutiques were going bankrupt, banks were frozen, and suppliers were in the danger zone as well. Determine what your initial needs are and then take all of them off the table and figure out how the business works on the alternatives you’ve selected.

11. Develop a multi-channel strategy. Pick the right megaphones.

Take advantage of multiple online channels for promoting your business, but pick the right ones. Get to know all of them: Facebook, Twitter, LinkedIn, Google+, Tumblr, Instagram, Pinterest, Stumbleupon, etc. There are endless choices and new ones appearing every day. Find a company similar to yours on each channel and study the moves they make. There are thousands of megaphones out there—let your voice be heard, but spend time in the right places as a lot of time wasting can occur here. As with anything, measure your effectiveness. What does success look like for you on these platforms?

12. Automate you and all there is to do. Focus on the important stuff.

Take advantage of the small business productivity applications available in the cloud—they’re some of the best things to happen to solo entrepreneurs. They’ll help you automate basics such as accounting, invoicing, file sharing, and tasks management. Plus, most of them have pay-as-you-go programs that grow with your business and keep costs manageable. Plus, the less time you spend on tasks, the more time you can devote to learning how to develop your business. You know all of the things you have to do. Find a comprehensive cloud solution that lets you get more of them done in less time with fewer headaches, and as your business grows you can easily plug in new team members. An all-in-one cloud solution helps you run lean, mean, and organized.

13. FLY FLY FLY.

There’s much work to be done and you must ultimately decide the point where concept must meet tactical execution. It’s go time or not. The odds are either in your favor or not. What are odds really, other than the direct correlation between your own entrepreneurial due diligence and ability to create alternatives around the roadblocks? Thank God for entrepreneurs and their relentless ability to adapt. You’ll drive on through the night and that’s what slaps the odds in the face.

14. Do the work.

Be a business even when no one is watching, because success and character are built when no one is watching. With no one breathing over your shoulder checking in for status reports, distraction is everywhere. Act like you go to work by setting your own hours and sticking to them. Dedicate work times and let no one or nothing affect them. Know each day what you are going to accomplish and actually accomplish it. Have a dedicated workspace away from your “outside work hours” spaces. As an entrepreneur, you are taking success into your own hands. Staying organized and on-task is vital. Be careful to watch your effect on the business. Sometimes the business owner is the biggest problem.

15. Unplug and unwind.

I still struggle with this today. Establish time for yourself unrelated to your business. You’ll find that some of the best new ideas and inspirations pop up when you’re not working. Remember to keep your head up and enjoy life along the way. You only have one life to live – live it well.

Lawton Ursrey is the CEO and Founder of Indie Peace, an environmentally responsible apparel company, and Product Marketing Manager of Sage One, a simple, online accounting application for small businesses.

Is Your Unpaid Internship Program a Good Idea? 6 Legal Considerations

According to the Bureau of Labor Statistics, the unemployment rate is especially high among college students and recent graduates. For those unable to find paid work, an unpaid internship might seem like a useful way to gain valuable experience, recommendations and even future job placement. Likewise, for cash-strapped startups, the idea of getting labor without having to trade liquidity or valuable equity can be too appealing to ignore.

However, there are some very serious legal considerations every for-profit company — including startups — must be aware of before attempting to hire unpaid interns.

Under federal law, every employee in America is entitled to a minimum wage, additional compensation for overtime and certain other benefits. The employer must also consider worker’s compensation, discrimination laws, employee benefits, state labor laws and unemployment insurance coverage. In order for these requirements to not apply, the employment relationship must fall under applicable legal exemptions.

In the case of Walling v. Portland Terminal Co., the United States Supreme Court held that one such exemption to the federal requirements exists for people who work for their personal advantage rather than that of their employer. Such a person may be considered a trainee instead of an employee for purposes of federal law. In this seminal court case, the Supreme Court looked to six factors in deciding whether a work program was for the intern’s own educational benefit or the advantage of their employer.

Here are the six factors considered by the Court:

The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment.
The internship experience is for the benefit of the intern.
The intern does not displace regular employees, but works under close supervision of existing staff.
The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded.
The intern is not necessarily entitled to a job at the conclusion of the internship.
The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

The DOL has taken the position that for the exemption to apply, all of the factors listed above must be met. While some of the above requirements may be covered by an effective agreement, those that are subjective create a substantial burden on a company looking to hire interns to create a substantive program that meets these criteria.

The key takeaways for anyone looking to hire unpaid interns is that you need an appreciation for the nebulous area of the law you are entering, understand the difficulty of complying with the Department of Labor’s specifications, and finally, ensure you do all you can to be in compliance with the law.

Peter I. Minton is the founder and President of Minton Law Group, P.C. His practice focuses on the representation of startups and emerging businesses in business transactions, capital raising, corporate governance and general corporate matters. Prior to founding the Minton Law Group, P.C., Peter attended the University of Pennsylvania and Georgetown University Law Center. Upon graduation, he began his practice in the mergers & acquisitions department of a large New York City law firm where he represented private equity and hedge fund clients in a diverse range of transactions. He is a admitted to the New York bar.

5 Ways Your Startup Should Be Using Video

I started “producing” my own videos when I was 8 years old. From the time my sister and I were deemed old enough to hold the family camera without breaking it, we were hooked on the wonders of video. Back then, polished videos were still a luxury. I never would have guessed that consumer-level cameras would soon fit in my pocket, or that video would become such a powerful piece of my own business.

I recently got together with my friend and fellow entrepreneur, Ariane Fisher, co-founder of the crowdsourced, cloud-based Storymix Media, to brainstorm a few of our favorite ways to use video to save time, pump up marketing and improve business practices:

Use video to train new staff. Most of our staff works remotely, so we don’t always have the luxury of sitting down with new team members to walk them through training. Instead, we use Camtasia, a screen recording software, to record ourselves walking through our processes step-by-step. When new team members start, we have a dozen videos that they can watch. These videos don’t have to be perfect and polished, as long as you can get your point across.
Use quick video tutorials to help clients understand complex topics. Most of our clients have hectic schedules, so we often use Camtasia to record short screen recordings in place of web conferencing. We simply send them links to private videos that walk them through specific concepts, and they can watch the videos on their own schedules. “Video tutorials are a great way to provide value to your existing clients,” says Fisher. “At Storymix, we use video tutorials to help clients get creative with our product and use it in ways they hadn’t considered.”
Use video to bring testimonials to life. A written testimonial is a powerful marketing tool, but a video testimonial is even more credible. “Testimonial videos seem more authentic to prospective clients than written reviews,” says Fisher. “They don’t have to be daunting or intrusive; they can be filmed in the comfort of your client’s home using their webcam. You can schedule a phone call with them after delivering your product or completing your service. Talk with them for a few minutes about what they enjoyed most. Then ask them to hit record on their webcam and keep speaking with them in an interview style.”
Create a short value proposition video for your website. Your value proposition is your promise to potential customers. Use a video on your website to quickly and clearly explain the benefits of what you’re offering. As Fisher puts it, “Explainer videos are super hot and a quick way to explain your value props to prospective clients. You can hire high-end professional services, or even go the DIY route and create your own explainer video using your existing footage and a voiceover with a USB mic.” Check out an example from her company on YouTube.
Use video to make yourself more visible in search engines. YouTube is the second-largest search engine in the world. “Google owns YouTube and places higher value on inbound links from their own platform,” says Fisher.

Whether you’re using video to communicate among your own team members or to complement your marketing, the most important thing is that you set aside time to jump in and start experimenting with it. Video is becoming a powerful part of modern business—if you’re not using it, you’re missing out on endless opportunities.

Allie Siarto is the co-founder of Loudpixel, a social analytics company focused on social media monitoring, insights, measurement and infographics. She also runs a project called Entretrip, a co-traveling experience for location independent entrepreneurs, and a digital marketing innovation podcast called The Apt Marketer.

3 Startup Lessons From an NFL Coach

With the 2013-14 NFL season kicking into full gear, and as I settle into my Sunday ritual, I’m reminded of why my hero, head coach Pete Carroll of the Seattle Seahawks, is just that — a hero.

Since he took the reins in Seattle in 2010, Pete’s taken a below-average team and turned out a Superbowl contender. His leadership style can be applied to a startup and to leading a company. There is a lot to like:

“Do it better than it has ever been done before”: Pete inspires his team and his program to “do it better” than ever before. He believes this mantra at his core. I know I can certainly do a better job of evaluating, optimizing, and maximizing every area of production in my business.

So can you. Once a year, make sure to break down every aspect of operations — from your cleaning service to board meetings. Evaluate how you can do better than anyone has before.

“Be different”: The Seahawks leadership has specifically looked for players with unique skills and traits. They then put them in a position where they can take full advantage of their strengths and minimize their weaknesses. Through this process, the Seahawks have acquired a collection of players that others didn’t value as highly. These players were able to fit together to perform at a very high level.

With the market for technical talent as competitive as it is, part of the challenge for a successful startup and technology company is to think outside of the box. Who are the right types of people and what skills should you look to hire for? With a specific salary amount available, it is critical to use dollars to achieve maximum output. What are the people and skills that are undervalued but can add tremendous value when put together?

“Compete”: Competition is about setting up an environment where people are driven to perform to their maximum ability. Doing this while retaining team camaraderie and spirit is difficult. I believe Pete has done an excellent job of communicating the purpose of internal competition – to make each player better. Grading games and practice tape, comparing players, and completing detailed evaluations naturally creates a meritocracy. Pete believes that if there is an available player who will improve the team, it is his responsibility to make a change in order to make the team as competitive as possible.

The takeaway: Set up an environment that requires everyone to up their game each day. Use data and transparency to show your employees how they are performing, and be very clear that it is your responsibility to use the limited number of positions and expenses to make the best company it can be.

And with that … Go Seahawks!

Matt Ehrlichman is the CEO of Porch, where you can get inspired by the best home projects your neighbors have completed, see what any home project will cost, and find the best service professional your neighbors and friends recommend. Previous to Porch, Matt was a founder and CEO of Thriva (acquired by Active Network) and Chief Strategy Officer of Active Network (2011 IPO). Matt lives in Seattle, WA.

YEC founder Scott Gerber keynoting at this huge startup conference for startups “everywhere else”

Startup Tips: How Your Wardrobe Impacts Your Work

For women leaders, business can be a minefield of personal image challenges. Experts estimate that up to 95 percent of our communication is nonverbal, so even as women achieve more prominent platforms, the majority of what we communicate is still through external visual clues. This creates the very real challenge of authentically aligning the messages we speak to our outer appearance.

The appearance of a job or political candidate, business partner or clients impacts our opinions, whether we acknowledge it or not. While we still have strides to make in gender equality, many women are discovering that their outward appearance may have unintended consequences.

Appearance Still Impacts Influence

In an ideal world, all leaders would be evaluated by their effectiveness and character. However, seemingly innocent choices impact the influence of powerful women leaders across many fields. For the female executive, it’s an added layer to be considered in developing an authentic leadership style — the fact is, as a professional woman, wearing inappropriate attire can undermine your authority.

Just look at the political field, where the power and perception of women is still heavily influenced by their outward appearance. Margaret Stuntz-Tresky’s thesis “Clothing Makes the Candidate?” posits that “media coverage that underscores traditional sex roles or highlights women’s gender or appearance may well contribute to and exacerbate these inherent hurdles to power.”

Stuntz-Tresky compiled decades of research to exhibit that “studies in a variety of fields and settings have demonstrated that clothing has a significant influence on perceptions of trustworthiness, expertise, knowledge, intelligence, success and more — all the makings of source credibility.”

Dressing to Impress — and Establish Credibility

The way we dress goes beyond fashion to what The Style Concierge Sybil Henry calls “personal style” — i.e., the way we dress to represent our authentic selves, so we can attract those who appreciate who we are internally.

The challenge is to be taken seriously so that your message is heard and you don’t lose that sense of personal authenticity.

As Henry notes, when you work with a business, “you sign on the dotted line to represent their brand and need to find a way to be authentic within those constraints. Choosing a company is no different than choosing a mate — you have to find a match in values and culture so you can authentically align yourself with the company values.”

Whether we like it or not, every career and industry has a uniform that signals credibility. That uniform varies widely for doctors, artists, bankers, and fashion models, of course — what signals credibility for a runway model would undermine the credibility of a brain surgeon.

How to Balance Authenticity and Personal Style

When working with women executive or entrepreneurs, Henry helps identify her client’s authentic self — and find a credible way to express that, comfortably and confidently.

Corporate Image Coach Sarah Hathorn advises women to allow their professional images to speak on their behalf — and beware of wardrobe choices that undermine her brand. A few key pointers:

Choose clothes that reflect leadership traits — e.g. don’t wear a 10-year-old suit if you’re a young, forward-thinking leader.
Being comfortable in your position doesn’t mean yoga pants and tank tops. Women can be most comfortable by choosing professional clothes in the right fit for their body. For an executive, a well-tailored jacket allows for individualization and comfort — without completely ignoring the industry uniform.
Details matter. If you’re a leader who encourages and embraces creativity, pay special attention to the details of your personal style — wearing the same “uniform” of black pants and blouse every day doesn’t communicate adventure, risk or creative style.

The image we chose can either support or negate our carefully crafted brand, along with the messages and the content we’re striving to bring to the forefront of the conversation.

Embodying your authentic brand is a process, but it sends a powerful statement and commands respect. In the end, it’s not about conformity or mimicry, but identifying your authentic self and wearing it, inside and out, with confidence.

Kelly Azevedo is the founder of She’s Got Systems, a custom coaching program that leads clients to get support, documenting and dominating in their fields. She has worked in startup, successful six-figure and million-dollar online businesses, helping owners create the systems to serve their needs.

You can see YEC founder Scott Gerber speak at this huge national startup conference.

Startup Tips: 13 Money Saving Tricks Nobody Ever Talks About

Question: What’s ONE thing I can do to save my business money right now that nobody ever talks about?

Forget Information Products

“This is an area not many people talk about because a lot of businesses make their money by selling these items. The problem is that too many entrepreneurs buy into eBooks, courses, group coaching programs, etc., but they don’t spend any time implementing. Stop spending your money on information and instead, save it, or spend it on talent that will help catapult your business forward.”

– Erin Blaskie | CEO, Erin Blaskie, Digital Strategist

Shared Gym Memberships

“I’m a huge believer that splurging on gym memberships saves on employee productivity big time. But don’t buy individual memberships; instead, negotiate with a nearby gym to buy just a few memberships you can share with people on the team (as long as only one person per membership goes at once). They”ll typically be cool with that, and you’ll potentially save a ton.”

– Derek Flanzraich | CEO and Founder, Greatist

Audit Your Subscriptions

“Look through your credit card statements for automatic rebills, and make sure all the services you’re paying for are actually being used. In the past we’ve uncovered a mobile phone account that no one had used for six months, a website optimization service that was overbilling us, and a CRM that we had switched away from months prior. For services that you do use, contact and ask for discounts.”

– Matt Mickiewicz | Co-Founder, Flippa and 99designs

Fit It in the Right Box!

“Many product companies I have talked to always tell me some added costs come from having to buy a shipping box on-top of their retail box. A little tip we learned was make it fit inside a USPS flat rate box or UPS box. These materials are free from both suppliers, and if you manage your relationship with the driver, they even drop them off to you, saving your company a ton on packaging costs.”

– Jerry Piscitelli | Owner / Inventor, Portopong LLC

Look at Legal Expenses

“Businesses often have legal needs that can cause large, unexpected legal bills. Ask your attorney for flat project rates to allow you to better budget your legal expenses. If an attorney will not provide a flat rate, they might be willing to agree to a cap on the project, which also can help you prevent surprise legal bills.”

– Doug Bend | Founder/Small Business & Startup Attorney, Bend Law Group, PC

Ask for Tax Guidance

“The earlier in the year that you can sit down with your CPA and look for opportunities to better manage what you’re going to owe the IRS, the more likely that your CPA will be able to help you find some strategies to minimize your tax bill. From retirement accounts to going green, there are a lot of tax strategies out there and it’s worth going over all of them with a tax professional.”

– Thursday Bram | Consultant, Hyper Modern Consulting

Negotiate Absolutely Everything

“Prices for B2B products and services are almost always negotiable. Aggregated savings over time can amount to a real enduring competitive advantage if competitive negotiation becomes part your company culture. Make it a policy never to sign off on anything until you and your team have hustled out every last penny.”

– Christopher Kelly | Co-Founder, Principal, Convene

Try Out Outsourcing

“Outsourcing oversees things such as web design, SEO, and in some cases, content writing can greatly reduce your overhead. Firms such as Supreme Outsourcing http://www.supremeoutsourcing.com, Guru and oDesk help you find work from around the globe. If you reduce cost in these areas, you can then hire more full-time people in your own country so there is nothing unpatriotic about it.”

– Raoul Davis | CEO, Ascendant Group

Use Communal Space

“Take advantage of communal office space where the rent is subsidized and the culture is lively. Shared space is a great way to immediately reduce your cash burn, and interact with many other entrepreneurs in a fun and creative setting.”

– Michael Tolkin | CEO, Merchant Exchange

Utilize Interns Wisely

“There are millions of college students and recent grads willing to work for little or no money in return for experience. Never underestimate the value of the experience you can offer. Compared to working at a large, boring corporation, many students will opt for the fun, small business. Once you have an intern (or four), you’ll start realizing how much of what you do can be delegated.”

– Emerson Spartz | CEO and Founder, Spartz

Outsource Key Infrastructure

“Many small businesses see the value of outsourcing for specific tasks (such as web design or content). But outsourcing key infrastructure positions is an even more effective way to save money. Starting out, it’s almost inevitable that you’ll face an internal skills gap. Outsourcing key functions such as finance, legal, and HR can help you keep your internal resources focused on your business.”

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

Refuse Some Business

“”Are you mad?” Nope. Simply stated: you need the focus. Stop looking for that quick fix and start connecting to your ideal client! You need to think long and hard about who that is. They are the ones that can extract the most value by using your service or product and will come back to you time and time again. All others are a waste of effort, as you bend over backwards for them just that once.”

– Carissa Reiniger | Founder and CEO, Silver Lining Ltd.

Review and Analyze

“Review invoices and statements from the past three months. As you go through them, ask yourself the following questions: Do we really need this? Are we paying too much? Can we get a better deal? How can I avoid these costs in the future? By analyzing every dollar, you’ll find areas where you are wasting money by overpaying or using services you don’t need.”

– Christian Springub | CEO and co-founder, Jimdo

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.

4 Tech Investments Your Startup Should Splurge On Early

No matter how you slice it, launching a startup is a major expense. It can be tempting to cut corners by paying less for certain business necessities. But don’t go too crazy with the budget blade, especially when it comes to technology and your website’s infrastructure. Experience shows that companies that invest in good technology from the outset find a bigger payoff.

The challenge, then, becomes knowing exactly where to invest. Here are some basics:

A Great Website

Your website conveys who you are, what you do, and what makes your company different from the rest. It doesn’t need to be overly flashy — some of the most effective messaging is simple and streamlined.

Your website should have an attractive job application page that outlines your company’s mission. Great employees want to be part of something bigger — a company with a vision — so this page will be one of your greatest assets in attracting A-level talent.

A Reliable Hosting Provider

Choose a larger service provider early on when deciding on a site host. I recommend skipping a VPS (virtual private server) altogether and going straight to cloud hosting, like Amazon’s EC2 CloudStack. On a VPS, if one of the other sites on that server is experiencing a lot of traffic, your site becomes slow or unresponsive. Cloud server hosting is incredibly scalable and can save you headaches down the road.

Email Deliverability

Larger companies pay for email deliverability. An ordinary email system will often send relevant messages to the spam filter. It simply can’t distinguish what should and shouldn’t be tossed out. If you pay for a deliverability service, you are effectively paying a small amount per email (around a cent) to ensure you don’t miss out on important communication.

An Efficient, Scalable CRM

Finally, if you foresee your business having a large number of clients, then you need a powerful CRM (customer relationship manager) from the get-go. Staying on top of your business relationships quickly becomes a challenge with the addition of just a few clients. A basic CRM keeps track of your relationships with clients, prospects and anyone else with whom you do business.

Excel and QuickBooks are too simplistic, too quickly overwhelmed and they don’t scale easily. Google Drive might seem like another option, but it can soon become chaotic and time-consuming. Sometimes, the best option is a custom CRM tailored it to fit your needs, both present and future. If you decide to go with a commercially available CRM program, make sure it is designed to be scalable so it can accommodate your company’s needs as it grows.

The Benefits

Investing early on in great technology can improve your company’s growth in two ways:

It ensures that you can handle increases in demand. Investing in reliable technology, capable of handling spikes, means significant growth won’t stretch your organization.
It will allow you to entertain the idea of large partnerships that can grow your company by multiples. If you’ve got a reliable tech base, then you’ll be in good shape to handle considerable expansion.

Scout Out Technology

A commitment to investing in great technology is one step — then, you have to actually find the best technology for your needs. Here are a few ways to get started:

Do your research. An item’s cost does not guarantee its efficiency. Sometimes, market leaders really do have the best offerings at the lowest cost, but it’s also worthwhile to check out smaller tech companies. What the smaller outfits lack in bells and whistles, they often make up for with a higher level of service, which can prove invaluable.
Ask around. To find the right tech fit, talk to fast-growing tech companies to see what they use. These companies have higher standards than Fortune 500 companies, which tend to be out of touch and use highly complex programs supported by a huge, in-house technology workforce.
Compare offers. Before committing to a technology, obtain multiple bids and demos to ensure you’ve found the right fit at a reasonable price.

Invest in the proper technology infrastructure now to avoid wasting large amounts of time and money later on. You will be set for rapid future growth — and very few headaches.

Chuck Cohn is the Founder and CEO of Varsity Tutors, a leading national tutoring and test prep company with operations in 25 cities, 2,000 tutors and 80 employees. Prior to Varsity Tutors, Chuck was a venture capitalist with Ascension Health Ventures, a $550 million venture capital firm. Prior to that role, Chuck worked as an investment banker in the Energy & Power Investment Banking Group of Wachovia/Wells Fargo.

The Pros and Cons of Starting A Startup With A Buddy

I’ve built five companies in my startup career, four of which I started with close friends. It’s quite common to build a company with a close friend: you get together, think of a cool idea, and decide to get started. Why not, right? While it can be extremely fun to start up with someone you’re close to, it’s not without disadvantages.

So before you and your friend get started, take the time to analyze the good, the bad, and the ugly side of starting a company with a friend.

The Good

You have a friend in the trenches. Entrepreneurship can be lonely. My friends who work 9-5 during the day tend to party hard at night. I can’t keep up with that lifestyle as a 24/7 entrepreneur. When we do hang out, I just want to talk about ways to improve my startup — whereas they want to talk about anything but work. That’s why it’s so fun to start up with a friend. You have someone you can confide in and relate to, at times when not everyone understands.
Your friendship sets the tone for culture. Good company culture keeps morale high, attracts top talent, and keeps employees loyal. My co-founder and I often conduct interviews together so that the prospect sees our dynamic interactions and feels how fun it is to work on our team. Because we’re friends, we don’t hesitate to throw a get-together at my place or a poker night at my co-founder’s place.
You understand each other’s strengths and weaknesses. It was easy for my friend and I to assign roles and responsibilities, because we knew each other so well. He was emotionally stable, organized, and focused on the big picture, so it made sense for him to be CEO. I was the hustler with the do-whatever-it-takes attitude, so it made sense for me to lead the CMO position.

The Bad

You have similar networks. Friends usually hang out with the same people and will thus have the same network. This is bad because startups can succeed or fail based on who you know and what introductions you can get. My co-founder and I make a strong effort to go to events (he goes to investor-related events while I go to client-related events) in order to expand our networks.
It’s difficult to take orders from a friend. People are accustomed to taking orders from their boss — not their friends. This can become very unpleasant, especially if you’re not communicating tasks in the way that your co-founder likes to receive them. To keep my co-founder and I accountable, every week we get together with the whole team and report our accomplishments and issues. This eliminates the need to give orders throughout the week.
It’s easy to take advantage of the friendship. Because my co-founder is my friend, he feels shy about pressuring me to work harder, which can become a vicious cycle: I slack because I feel comfortable around my friend and my friend doesn’t pressure me to work harder because he doesn’t want to mess up the friendship.
You don’t want to hurt each other’s feelings. There’s no easy way to do it, but if your co-founder is slacking or missing milestones, then you have to call him out. A founding team that is brutally honest with each other and that can respect feedback has a much greater chance at success.

The Ugly

The stress of failure is compounded by your friendship. Startups are full of stress, failures, and demoralizing moments. In a previous company, my co-founder failed to raise funding within the given timeframe. It was a very tense time because cash was extremely low and the company would fail if we didn’t raise capital immediately. Similarly, I’ve had moments when I’ve gone through a dry spell closing deals. It’s hard to console a friend when your business’ future is at risk.
Failed businesses can lead to broken friendships, and vice-versa. I have seen several failed startups lead to broken friendships. Many times, the founders blame each other for the failure. In other cases, problems that start as personal can end up affecting — or even destroying — the business side. My failed startups with friends have actually led to stronger friendships; it’s all about the level of respect you have for each other. But if you don’t communicate this from the start, it can easily go the other way.

5 Questions to Ask Before Starting Up With a Friend

Would I do this again? Absolutely — though I always proceed with caution. Here’s what I look for in a friend before I ask him to join my team:

Do we have complementary skills?
Do we have different networks?
Do I trust and respect his work ethic?
Do I trust and respect his decision-making abilities?
Does he have previous startup experience?

Don’t start a company with a friend just because you think it’ll be fun to work together. Start a company because you believe in what you’re doing — and because you each bring a unique skill set and network to the table, improving your chance of success.

Jun Loayza is the Chief Marketing Officer of VoiceBunny and Voice123. He is also an accomplished lifestyle entrepreneur and the creator of the Drop Ship Domination System. In his entrepreneurial experience, Jun has sold 2 internet companies, raised over $1 Million in Angel funding, and lead social media technology campaigns for Sephora, Whole Foods Market, Levi’s, LG, and Activision.

8 Simple Split-Testing Tools For Your Startup To Try

Question: What’s your favorite split-testing tool and why?

Visual Website Optimizer

“I’ve used Visual Website Optimizer for many clients and it works really well. They have a fantastic and easy-to-use interface and it does the job. It’s not the cheapest solution, but it’s worth it when a small increase in conversion equals a significant amount of revenue for your company.”

– AJ Kumar | Co-Founder, Single Grain

Google Analytics Content Experiments

“The new Google Analytics comes with Content Experiments built in, and this feature allows you to split test different pages on your site. You can split test headlines and bits of code, and it shows you the clear winner over time. It’s free, and integrated with Google Analytics — what’s not to love?”

– Nathalie Lussier | Creator, The Website Checkup Tool

On to Optimizely

“Optimizely is one of the most intuitive and easy-to-use tools on the market, allowing even non-technical folks in your company to easily create and run experiments using a WYSIWYG interface. Best of all, you can test-drive the tool free of charge from their website without even creating an account.”

– Matt Mickiewicz | Co-Founder, Flippa and 99designs

Settle Into Unbounce

“I love Unbounce because it makes it dead simple to create quality landing pages and to easily test variations. Unbounce’s drag-and-drop setup makes it to where I can create a quality landing page in under an hour. It also provides solid analytics about which version of my page converts the best. One of the best things is they have an awesome blog and support center that answers my questions.”

– Lawrence Watkins | Founder & CEO, Great Black Speakers

Test Out Convert

“Convert has really enhanced its product offering recently. I’m enjoying their new user experience very much. Their reporting is very easy-to-use as well. As someone that has tried out many split-testing tools, I suggest everyone gives Convert a test drive to see what they think of it.”

– Logan Lenz | Founder / President, Endagon

KISSmetrics All the Way!

“KISSmetrics doesn’t just provide simple A/B testing. They also provide you with insights on which you can take action. Everything is real time, so you can do an A/B test in short-order without having to wait for a massive report.”

– Aaron Schwartz | Founder and CEO, Modify Watches

Install Hello Bar

“This isn’t a fancy tool and it can really only be used to split test on a small scale and works for specific applications but I’ve loved using Hello Bar to split test two offers on our website to see which gets the most clicks and conversions. For us, it’s a simple way to tell if people like one eBook over another or one webinar over another. They have a free account option as well!”

– Erin Blaskie | CEO, Erin Blaskie, Digital Strategist

HiConversion Works

“HiConversion is dead simple to use and offers real-time ROI, which makes it stand out from the other offerings we researched.”

– Josh Weiss | Founder and President, Bluegala

9 Ways Co-Working Can Help Your Business Grow

Question: Share your best anecdote/lesson from co-working and how it helped your business or brand grow.

New Clients All Around

“I work regularly at coworking spaces. I routinely land new clients through a quick chat, especially since in a coworking space, I can immediately show the person sitting next to me exactly what I’m working on.”

– Thursday Bram | Consultant, Hyper Modern Consulting

Word Gets Out

“I belong to a community of entrepreneurs that work together and play together, and I started serving a couple of clients. Word started getting around the community that my service was good, and more and more people started using my service. This is a great strategy for those whose clients would be in a co-working environment.”

– Louis Lautman | Founder, Supreme Outsourcing

New Talent in Your Space

“If you’re in a space with other talented individuals, it’s the perfect opportunity to scout for new talent for your own business. We’ve hired some of our most talented employees just because they were working in the same proximity to our company in a co-working environment. Without being in a co-working environment, we would have never had met those future employees.”

– Derek Johnson | CEO/Founder, Tatango

Creative Problem Solving

“Co-working spaces bring together diverse businesses. Be open about your difficulties and support other companies with theirs to uncover clever solutions to your challenges. We’re a consumer products company and struggled initially with building our subscription program. We finally talked to a co-located company with deep tech expertise and were able to crack the issue over a weekend!”

– Aaron Schwartz | Founder and CEO, Modify Watches

Support for Each Other’s Business

“At 1871, a new co-working space in Chicago, I have the opportunity to work around awesome startups everyday. In my immediate area, I work with two very different startups, but we find ways to support each other’s businesses. Whether it’s through signing up for services, going to launch parties or promotion through social media, we have worked together to expand our businesses.”

– Mike McGee | Co-Founder, The Starter League

Co-Workers as Brand Ambassadors

“One of the things we do at my co-working space is “pitch meet-ups” where everyone has a chance to give an update on what they’re working on. I always use this time to let my co-workers know what they can tell others about my business, and having so many ambassadors for my brand has helped the word spread like wildfire. I act as an ambassador to their businesses too. Give love, get love!”

– Natalie MacNeil | Emmy Award Winning Media Entrepreneur, She Takes on the World

Quick User Feedback

“Co-working can be great for quickly getting feedback on design and product plans. When co-working, I’m often asked for feedback on projects, and once you get to talking, it’s a great way to get feedback on your own activities—from design to product roadmap, co-working space can be great for fast feedback from those who are external to your project, but close by.”

– Doreen Bloch | CEO / Founder, Poshly Inc.

Spontaneous Collaboration

“The thing you really get with a co-working space is those spontaneous chats and “bump ins” you have with other entrepreneurs that lead places you’d never be able to go if you were working by yourself in isolation. When I started our entrepreneur co-workspace, The Loft, that was a big reason people joined. To be around entrepreneurs, to have random conversations and brainstorming. Awesome benefit.”

– Trevor Mauch | Founder, Carrot

Accountability Audience

“Our company was born out of co-working space and has been growing inside of one for the past 11 months. One unexpected benefit I love about co-working is the accountability. There is a communal sense of showing up from work, getting stuff done, and motivating each other to do so. It fosters the work hard, play hard attitude.”

– John Meyer | Founder/CEO, Lemon.ly

YEC founder Scott Gerber to keynote on Tuesday October 1st at this huge startup conference for startups everywhere else

How to Turn Your Business Failures Into Future Success Stories

My first startup experience was working for a tech company that made mobile applications for sports fans. I worked nights and weekends in an entry-level position with the founding team while finishing up my college degree. For aspiring young entrepreneurs like myself, a business school education is valuable, but it is no substitute for working in real, live startup environments. I knew I had to have both, so I sought out entrepreneurial experiences every chance I had.

Now that I’ve finished school and launched two startups of my own, I’m beginning to reflect on the lessons I learned outside the classroom, especially in that first startup job — and how they came to influence my decisions as a startup founder, four years later.

Timing Does Matter

I absolutely loved that first team’s product concept, which aimed to improve the in-stadium experience at sporting events by providing live statistics, video replays, and even concessions orders to a mobile device. The in-stadium atmosphere is great for fans, but teams are fighting to increase ticket sales against the free and convenient experience of watching games at home.

I knew that bringing some of those comforts to your stadium seat could be valuable for both fans and teams. But after working on the product launch team for a season, I was in a unique position to project the long-term viability of both the product and the overall company. Unfortunately, the view wasn’t promising: it always felt like the company was too early for its time.

We initially loaned out iTouch devices at the venues, since not enough people had smartphones at the time. This iPhone/iPad sales chart shows the market growth in these categories from under $5 billion in sales in January 2008, when I started at the company, to close to $100 billion now.

Failure Is Not the End

We had difficulty gaining traction. Whether it was the market, the timing, or the business model, I didn’t see much of the company after I left in mid-2008. Four years later, new companies are having success in that market, including FanVision, owned by the namesake of my alma mater at the University of Michigan.

Meanwhile, the founding team has gone on to do other great things, which led me to research what drives serial entrepreneurs. It’s a common theme in Silicon Valley and elsewhere, but is it really true that startup failure breeds future success?

Harvard researchers Gompers, Kovner, Lerner, and Scharfstein argue the answer is yes, but barely: They found that a successful serial entrepreneur has a “30 percent chance of succeeding in his next venture. By contrast, first-time entrepreneurs have only an 18 percent chance of succeeding and entrepreneurs who previously failed have a 20 percent chance of succeeding.”

Lessons Learned

Clearly, past success is a better indicator of future success. Employees, investors, and customers are all drawn to big-name entrepreneurs. Nevertheless, my college experience working with a failed startup greatly shaped my future successes at both Avomeen and LabDoor. Specifically, they taught me:

Customers come first. I loved that first company’s focus on customers. They only had a few full-time employees at the time, so they did a great job of leveraging associates like me to be at every sporting event interacting with customers. I followed their lead at Avomeen, where we constantly requested feedback from our clients, especially when launching new services.
Analyze — and capitalize — on market trends. My early exposure to mobile development and its user growth informs our work at LabDoor, allowing us to time the launch of our product safety applications (November 2012) at a key inflection point in the market. Mobile health users are expected to double in 2012, and we plan to immediately capitalize on that growth.

I loved the experiences at my first startup, and will be eternally grateful to my bosses there for giving me my first shot in the tech startup world. I didn’t work there long and definitely never made any money in stock options, but it was a transformative experience that I still use when running my current startups — and one I’d recommend to any entrepreneurial-minded student weighing entry-level work vs. a startup gig.

Neil Thanedar is CEO & Founder of LabDoor, a digital health startup that uses science to tell consumers what’s really inside dietary supplements. Before LabDoor, Neil founded Avomeen Analytical Services, an FDA-registered product safety laboratory, and also worked on emerging mobile sports and medical device products. He owns degrees in Cellular & Molecular Biology and Business Administration from the University of Michigan.