5 Tips For Growing Your Startup At The Right Pace

Startups are often in a rush: bigger, better, faster. I see it all the time: businesses striving to scale, to accelerate the growth of their business as quickly as possible — consequences be damned! Scaling is certainly a goal for businesses at some point, but scaling as soon as possible isn’t the answer. Scaling will require your company to use more resources. If you’re not prepared, scaling too quickly can be dangerous — leading to failure instead of success.

If you haven’t yet found a viable business model that will allow you to acquire customers at a lower cost than the lifetime value of that customer, you simply are not ready to scale. But you can ready your company by focusing on your finances first. Consider the following suggestions to help you to refocus your company development in a thoughtful and calculated way:

Understand how growth will impact your cash burn. Your burn rate is simply how much capital you go through every month. Staying on top of your burn rate is essential all the time, and, perhaps, even more so when you’re considering scaling. When you scale, your cash burn will be amplified. Any issues you have with your working capital requirements will be magnified exponentially. So keep a close watch on your cash-flow statement and a tight rein on your expenses. Bootstrap as much as possible to keep your business lean.
Hire only as needed. When you scale, you will need to expand your staff to support your acceleration. But before you scale, it’s a good practice to get into the habit of only hiring when absolutely necessary. Hiring is a significant cost — not only payroll, but the costs of recruiting, training, retention, etc. To cut costs, outsource as much as possible, especially non-core functions like accounting, finance, and human resources.
Create milestones for your company. Identify target milestones, create a realistic timeline, and then manage your cash to those milestones. In some cases, this may mean that you need to raise the cash to match and support these milestones. If you’ve already raised cash or are bootstrapping, you’ll need to reduce your burn rate so you can achieve the milestone before your cash is gone. Once your milestones are set, don’t let them slip. Your main focus must be executing to these milestones.
Get systems in place. Before scaling, make sure you have a solid infrastructure for managing financial processes. How will you manage billing and invoicing on a larger scale? Or, the bigger potential headache of payment collection? If your customer base and earned revenue are still small, that’s when you need to find and establish successful systems and processes.
Plan for cash-flow positive. If you have revenue, create a plan to help you understand how and when you’ll be able to get cash-flow positive. Scaling requires an increase in cash flow. You need to be prepared to match this with earned revenue.

If you think you’re ready to scale, you may be right. But before you press on that gas pedal, ask yourself: are you sure you have a viable business model, your processes are repeatable, and the market is ready? Once you scale, you’ll be entrenched much more deeply in your processes and making changes will be much more difficult. So take these early days to establish your company model and processes, and gain an understanding of — and control over — your finances, before rushing to scale.

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.

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.

Now check out “The Case For Remote Work”

Image: YEC

Where Do You Go Offline To Connect With Other Entrepreneurs & Startups

YEC, Guest Post, Startup Tips, CoWorking, Entrepreneurs

Donna Harris, co-founder of 1776dc chatting with an entrepreneur (photo: NMI 2013)

Where do you go in your city/region (or online) to connect with other entrepreneurs and learn from them?

The following answers are provided by the Young Entrepreneur Council (YEC) (http://theyec.org), an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab (http://mystartuplab.com/), 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.

1. Co-working Spaces and Meetups

In Phoenix, we have an awesome coworking space downtown. Co+Hoots is full of entrepreneurs and creatives; they all are welcoming. Find a coworking or collaborative workspace, and entrepreneurs will be there! In my city, we also have startup incubators and local organizations that host events or meetups. Find these events via social media in your town. Ask around and join in!

– Kyle Clayton ( http://twitter.com/KyleClaytonGore ), Jackrabbit Janitorial ( http://www.JackrabbitJanitorial.com )

2. Mixergy

My investment in Mixergy’s premium membership has paid itself back 1 million times over. I have learned so much from the interviews, the classes and the discussions. I’ve gained an MBA-type network without the $200K tag. Andrew Warner, the owner of Mixergy, is great at getting guests who can contribute tangible advice to other entrepreneurs, regardless of what industry they are in.

– Derek Capo ( ), Next Step China ( http://www.nextstepchina.org )

3. Philly Startup Leaders

Philly Startup Leaders is a strong local organization that connects Philadelphia’s most successful tech innovators with aspiring entrepreneurs. PSL’s regular events allow for an environment that fosters collaboration and community education.

– Robert J. Moore ( https://twitter.com/robertjmoore ), RJMetrics ( http://www.rjmetrics.com )

4. User Groups

I prefer to attend user groups for different technology, rather than straight-up entrepreneurship meetings. You’re more likely to encounter different types of entrepreneurs when you’re looking at a purely technological point of view. You can also avoid some of the super-charged networkers who aren’t quite as useful to connect with.

– Thursday Bram ( http://www.twitter.com/thursdayb ), Hyper Modern Consulting ( http://www.hypermodernconsulting.com )

5. Meetup.com

Meetup.com lists all local meetings for like-minded entrepreneurs, and it presents a great opportunity to learn more, expand your network and build potentially valuable business relationships.

– Andrew Schrage ( https://twitter.com/moneycrashers ), Money Crashers Personal Finance ( http://www.moneycrashers.com )

6. Self-Hosted Events

In today’s connected world, there’s no reason you can’t show up in a city and host your own event. When I was in Phoenix, a place I’d never been, I found a few connections from Twitter, LinkedIn and Facebook and threw an impromptu happy hour. I asked each of them to bring a few interesting people along. Before I knew it, I was fully immersed in the Phoenix entrepreneurial community.

– Matt Wilson ( http://www.twitter.com/MattWilsontv ), Under30Experience

7. Local Organizations

Dyn is located in a great area. In Manchester, I can go to the ABI Innovation Hub, which hosts events, contests and a founders’ series. There are also groups like the NH High Tech Council, the Manchester Young Professionals Network and Stay Work Play that bring people together to share common experiences. We live in a global world, so it’s important to stay connected beyond your own backyard.

– Jeremy Hitchcock ( http://twitter.com/jhitchco ), Dyn ( http://dyn.com )

8. Our Young Entrepreneurs’ Group

I live in a small town, Roseburg, Ore., with 35K people, but we’re creating an entrepreneurial movement here from the ground up. Four years ago, the entrepreneurial culture was struggling. But a group of us are making things happen — one of them being the Young Entrepreneurs Society we started two years ago that’s 104 members strong. Our monthly meetups and book club are awesome.

– Trevor Mauch ( http://www.twitter.com/tmauch ), Automize, LLC ( http://www.automizeit.com )

9. Silicon Prairie News

Silicon Prairie News is all about promoting, connecting and perpetuating entrepreneurship in the Midwest. Its Big Series of conferences is a great starting point for getting involved. And, of course, Silicon Prairie News’ website is worthwhile.

– Jake Stutzman ( http://twitter.com/jstutzman ), Elevate ( http://www.elevate.co )

10. A Speakeasy for Geeks

In Indianapolis, we launched The Speak Easy — a place for Indy-based entrepreneurs, startups and the folks who support them to work, play and collaborate. It’s essentially a clubhouse for entrepreneurs, designers and geeks. Bringing these folks together in a fun, productive work environment is the surest way to accelerate the development of high-growth startups.

– Kristian Andersen ( http://www.twitter.com/kristianindy ), KA+A ( www.kaplusa.com )

DC Mayor Vince Gray praised the YEC on Friday night at 1776, DC’s coworking,startup and entrepreneurial epicenter.

15 Interview Questions To Ask Your Next Startup Hire

Question: What’s one must-ask interview question for your first few startup hires?

Will You Make Copies?

“At startups, everyone needs to pitch in, including doing the occasional administrative task. By asking prospective hires if they will make copies, you can identify those who have the “do whatever it takes” attitude that will help your startup succeed.”

– Bhavin Parikh | CEO, Magoosh Test Prep

Past Experience Takes Precedence

“I would want to know, first and foremost, that the hire has had success in the startup environment before. It’s a unique culture that requires a certain mindset and approach.”

– Alexandra Levit | President and Founder, Inspiration at Work

Where’s Your Initiative?

“”Can you give me an example of when you demonstrated high initiative?” As a startup, you need people that will go above and beyond their role and produce amazing value for the company.”

– Jun Loayza | President, Ecommerce Rules

Completion Is Key

“How have you worked around resourcing and staffing limitations to accomplish a project? Startups are always trying to juggle multiple priorities and there’s never enough manpower to get stuff done. Asking about times where someone was able to come up with a project, idea, or initiative, and then oversee it to completion — despite obstacles — allows you to discover a lot.”

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

Find Out About the Formative Years

“I always ask candidates to tell me about a difficult or challenging event from their childhood that they feel has shaped them into who they are today. It gives me insight into who they think they are as a person, what motivates them, and how they deal with unexpected issues that may arise.”

– Vanessa Nornberg | President, Metal Mafia

One Word: Why?

“Why do you want to join a startup? Understanding one’s motivation for pursuing a job, particularly an entrepreneurial one, is critical. Make sure your first few hires are risk-tolerant entrepreneurs like yourself, and that your objectives are aligned. You want people who aren’t going to bail at the first bump in the road.”

– Michael Tolkin | CEO, Merchant Exchange

Stump Them With the Obvious

“Ask them if this a job or is it a career. The two are very different from each other, and can sum up the persons work mentality.”

– Jerry Piscitelli | Owner / Inventor, Portopong LLC

Do You Get Seasick?

“I would ask the following: “If we had news that the company may go belly up in two weeks, what would you do?” This question will test the person’s stomach for the swaying seas of a startup. If they respond by indicating an “increased” level commitment, then you have a winner. If they allude to retreating and “playing it safe” they may not have the necessary fervor.”

– Kent Healy | Founder and CEO, The Uncommon Lif

What’s Your Favorite Movie?

“Startup hires need to be almost as passionate as you are about your vision. By asking, “What is your favorite movie?” you can see how they can passionately express themselves. Don’t hire those who are as dead a a door knob when they answer this question.”

– Nancy T. Nguyen | President & CEO, Sweet T Salon

Identify Their Personality

“Ask simple questions to determine the character of the potential hire. Some startup hires cannot handle the startup mode, not because of education and past experience, but simply because their character does not fit the type of environment one would find in startups. One question to ask is, “Do you want to be in a startup, or do you want to appear to be a in a startup?” It’s an honest question.”

– George Mavromaras | Founder and President, Mavro Inc. | Praetor Global LLC.

Make It an RPG

“Ask plenty of role-playing questions — the interviewee will project their motivation for applying to the startup. You’ll also get a deeper understanding of them as an individual and what they can bring to the table.”

– Justin Beck | Co-Founder and CEO, PerBlue

What Happens When You’re Wrong?

“Ask for an instance of when they were dead wrong about something. How they respond is telling — do they have the ability to admit it, ask for help and move on, or do they try to fix it themselves? Are they willing to admit it happens often? That’s a sign of not being afraid to fail.”

– Susan Strayer LaMotte | Founder, exaqueo

All Roads Lead to Success

“The first few hires in a startup are crucial, so make sure they’re on-board with your company’s vision, first and foremost. Ask where they see themselves in relation to the company five years down the road. Make sure they envision the company’s destination the same way you do, even if they see the path a little differently.”

– Nick Friedman | President, College Hunks Hauling Junk and College Hunks Moving

Let’s Talk Numbers

“Ask them how much they want to earn. First, this question usually catches people off-guard, which helps you evaluate how quickly they can adapt. Second, it allows you to see how flexible they are, as well as how committed they are to the company’s growth.”

– Nicolas Gremion | CEO, Free-eBooks.net

Change Is Constant

“How comfortable are you with change, and how do you handle it? If you run a startup, you need people who are flexible enough to grow with you. If someone doesn’t handle transitions and change well, you need to know that before you invest in them.”

– Brent Beshore | Owner/CEO, AdVentures

7 Key Elements Of A Successful Crowdfunding Campaign

Crowdfunding can be an effective tool for accomplishing your startup goals. Whether you’re looking to jumpstart your marketing efforts, expand your customer base, or reach out to friends and family for funding, crowdfunding provides a platform to rally support around you and your company. Having worked with hundreds of entrepreneurs who have conducted successful fundraisers, we have distilled seven key strategies for launching a successful crowdfund:

Tell your story. As the old adage goes: facts tell, stories sell. When it comes to eliciting customer engagement, a campaign with a good story is an unparalleled strategy. Did you experience some kind of obstacle on your path to entrepreneurship? Did a major life event influence your career choice or business decisions? Tell your story in your crowdfunding pitch to make a connection with backers and encourage engagement.If you don’t have a personal story to share with your audience, share facts and highlights about your startup, product or vision instead. Describe the problem (and severity of the problem) your product will solve, or discuss the vision for your startup. Keep your tone and messaging personal to make backers feel closely connected to you and your project.
Provide value for value. Crowdfunding campaigns hinge on reciprocity. If your startup offers fantastic products, rewards or opportunities, you’ve created a huge incentive for backers to pledge to your campaign. When choosing your reward tiers, reflect on whether the incentives would appeal to you if you were the consumer; ask friends, family members and business acquaintances for their honest opinions as well.
Introduce scarcity. A basic law of economics dictates that scarce supply inherently creates greater demand. Create greater demand for your startup by limiting one or more of the higher level rewards to just a few — this will inflate demand for those rewards and result in higher pledge amounts for your crowdfunding campaign!
Create a marketing event. People love to feel like they are part of something bigger than themselves. Try to build a feeling of excitement and rally others around your crowdfunding campaign by tying the launch to a large, well known event. You can connect your product to a holiday, sporting event, or season to increase the momentum surrounding your launch. You can leverage the emotional connection surrounding these events to get people excited about your product and engage them in discussions.This is especially useful for connecting with backers through social channels, capitalizing on trending topics and popular hashtags to get more eyes on your fundraise!
Highlight examples of social proof. Going back to the human desire to feel like a part of something bigger than themselves, most people don’t want to be the first or only supporter of a crowdfunding campaign — they want to see other influential advocates joining in. Do you have someone notable as an adviser, backer or endorser of your startup? Share your list of partners and patrons to give confidence to new backers and let them know that they won’t be the only one at your party.
Build credibility and legitimacy. Many backers will believe it when they see it. In other words, they require some kind of evidence that your startup is legitimate and picking up steam before deciding to back your crowdfunding campaign. Show your backers what they’ll be supporting in detail — how it works, how you came up with the idea, and even pictures or videos if you have a prototype. Remember that you will likely never meet your backers, so the more proof you can provide that your startup is legitimate the better.
Interact with your supporters. Don’t leave your backers in the dark for weeks after they’ve supported your project. Interact with your audience through frequent updates, thank-you emails or social media outreach, and responses to their questions and feedback.You can build anticipation and increase engagement in many ways. Post updates counting down to a big surprise regarding your project, conduct a product giveaway, or even host a contest involving your crowdfunding campaign. The opportunities here are endless and can be tailored for your specific startup.When interacting with your backers, always encourage an open dialogue and engagement. In general, people would rather talk than listen. Treat your updates and outreach as a conversation rather than a one-sided message.

Eric Corl is the Co-Founder and President of the crowdfunding site Fundable.com. Eric has been on the founding team of three successful startups including Fundable, IdeaBuyer and Startups.Co, all of which have focused on getting early-stage startups to market quickly and effectively. He is also a partner at Virtucon Ventures, an early stage incubator that brings new ideas to market.

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.

Now that you’ve got that down check out 12 Tips For Crowdfunding Your New Startup

Deciding Between An LLC Or S Corporation: 6 Key Differences

When starting a business (or growing a business from a sole proprietorship), the limited liability company (LLC) and the S corporation are the go-to entities for small business owners. Both entities provide liability protection (which prevents business creditors and those with a judgment against you from accessing your personal assets) and act as a pass through, which means that all income from LLCs and S-corps are treated as income of the individual owners. However, there are various differences between the LLC and S-corp.

Instead of randomly choosing one or the other, here are some of the differences that may affect which one you choose for your business:

Corporate Formalities: LLCs generally do not have to maintain corporate requirements, even though its good practice to maintain separate company records. In some states, LLC owners are required to file a simple biennial statement with the Secretary of State, but that’s about it. S-corps, on the other hand, are required to maintain corporate formalities in order to keep their liability protection. S-corps must keep meeting minutes, a board of directors, officers, separate business accounts and appropriate records for all of their business transactions.
Allocating Income: This issue only comes up when there are several owners of the business or when additional owners will be added in the future. LLC owners may allocate the business income to its member disproportionately. That means that two owners may split the income 60-40 instead of 50-50. This may be important in situations where each owner contributes to the business differently — for example, where one owner is putting up startup capital and the other is putting in sweat equity. S-corps do not have this flexibility. Owners of an S-corp (also known as shareholders) are required to split the income equally among all of the owners.
Filing Taxes: LLCs with one owner do not have to file separate tax returns for the business. They can typically add a Schedule C to their personal taxes and be done with it. LLCs with more than one owner do have to file separate tax returns, but have the flexibility to file as a partnership or a corporation. S-corps must file information returns every year and their owners have to add a Schedule E to their personal taxes. However, a big tax benefit that S-corps provide is that with the Subchapter S election, you have the option to pay self-employment tax (approximately 15 percent) on only your reasonable salary as the owner, rather than on the entire net revenue of the business. This can result in big tax savings and is a big incentive to go S-corp rather than LLC for some.
Startup and Operation Costs: Maintaining corporate formalities and filing additional tax returns may increase the costs of running an S-corp. However, in several states the filing fees to create an LLC are substantially more than the fees to create an S-corp. In some states, such as New York, LLC owners are required to publish the name of the LLC in two newspapers which can easily cost well over $1,000. Its important to be aware of the filing requirements and associated costs in your state.
Restrictions on Type of Owners: In most states, LLCs may be owned by individuals, corporations, other LLCs and foreign entities. S-corps are not so flexible. S-corp shareholders must be individuals (not partnerships or corporations) who are U.S. citizens or permanent residents. Additionally, an S-corp can have a maximum of 100 shareholders. Certain types of businesses may not be LLCs or S-corps, including banks and insurance companies.
Psychological Effects and Public Perception: People who may be important to your business’ development can have strong opinions about the different business entities. I have heard from bankers and venture capitalists that they are not fond of LLCs and prefer to invest in corporations. I also know lawyers who think the LLC is the best thing since sliced bread. I think that corporations, with all their formalities, can influence the way you treat your business and the level of professionalism that you maintain. Additionally, public perception of an LLC versus an S-corp may be different. Incorporating may show customers, banks and other potential investors that you are serious about growing your business and that you intend to be around for a long time.

These are just some of the various factors to be considered when selecting a business entity. I highly recommend a consultation with both an accountant and a lawyer to determine which entity will fit your business best.

This article was originally featured in YFS Magazine.

Rachel Rodgers is a business lawyer for women and/or young entrepreneurs. She runs her practice, Rachel Rodgers Law Office, entirely online. In addition to practicing law, Rachel blogs about virtual law offices and teaches a popular workshop for women lawyers who want to practice law online through her website, Her Virtual Law Office.

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Disclaimer: This article is a resource guide for educational and informational purposes only and should not take the place of hiring an attorney. No information in this article constitues legal advice or creates an attorney-client relationship between the author and the reader.

Image: YEC

This Twin Cities startup takes photo tagging to a new level.

13 Powerful SEO Tools For Startups

Question: Which SEO tools have been most helpful to your business?

SEOMoz for Everything

“SEOMoz’s suite of products has essentially provided us the value of our own personal SEO consultant. We use their tools track keyword rankings, rate on-page optimization, and track links to our site. They also regularly post great tips on their blog and have a Q and A section. By using their tools, we’ve increased our monthly search traffic 10x in the last year.”

– Bhavin Parikh | CEO, Magoosh Test Prep

Raving About Raven Tools

“I love Raven Tools. It is one of the key reasons why my company’s website ranks either first or second for most keywords related to our niche. Their research analysis and link-building tools allow me to find untapped niches and capitalize on them through effective organization for outreach.”

– Lawrence Watkins | Founder & CEO, Great Black Speakers

Install SEO for Chrome

“SEO for Chrome is the go-to tool that I use. It allows me to easily see Page Rank, backlinks, estimated traffic, and even conduct keyword research for a website, all through my Chrome browser. It’s very important to get backlinks for SEO; I use this Chrome app to determine where I will invest my time to develop links back to my site.”

– Jun Loayza | President, Ecommerce Rules

Scribe for Content

“Scribe is a great tool for SEO-ifying content. We run all of our blog posts through it to make sure that they’re not only educational, but will all be found in the search engines. Right now, we receive more than half of our traffic from relevant Google searches.”

– Laura Roeder | Founder, LKR Social Media

Can’t Go Wrong With Google

“SEO is all about content and links, but equally important are the keywords you choose to target. Don’t assume what your users are searching for. Instead, use Google’s free Keyword Tool to determine monthly search volume for keywords in your industry. Once armed with this data, create content and obtain links targeting these keywords and watch your SEO traffic soar.”

– Warren Jolly | Co-founder, Affiliate Marketing

Two Birds With One Stone

“YouTube has helped me rank high on certain Google keywords. Not only is it the second highest search engine ever, but it also helps my audience see me and my photography in a more personal setting.”

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

Join the Fight With Market Samurai

“Ever since I started doing SEO years ago, Market Samurai has been the backbone of my keyword research and analysis process. It is much easier to use than Google’s Keyword Tool and less expensive than other products on the market.”

– Sean Ogle | Founder, Location 180, LLC

Open Up Open Site Explorer

“Information is key in improving your SEO efforts; if you don’t know where your inbound links are coming from and what keywords are providing the biggest boost to your search efforts, you can’t work to improve them. Open Site Explorer lets us check which inbound links are giving us the best SEO benefits, perform competitive research, and check backlinks and anchor text almost effortlessly.”

– Lauren Fairbanks | Partner, Stunt & Gimmick’s

Go Real-Time on Rank Checker

“I’ve been using Rank Checker, the simple browser plugin for over three years now and haven’t had a need for much else. It’s free and you can download and set it up in a few minutes. You can create multiple website profiles that you want to track keyword SERPs for. It’s super simple and it gives you the most up-to-date results each time you run it. You can also schedule it to run automatically.”

– Matthew Ackerson | Founder, Saber Blast

Wordtracker Cuts Out Extra Work

“When it comes to researching which keywords are the most searched for, and how much competition they have, Wordtracker is the way to go. You can find out how many clicks you’d likely get if you got to the front page of Google, and whether it’s worth targeting this keyword or not.”

– Nathalie Lussier | Creator, The Website Checkup Tool

Add Platinum SEO to WordPress

“Many of my sites run on WordPress so I use WordPress plugins on them. The best one of these plugins for SEO is definitely Platinum SEO.”

– Ben Lang | Founder, Mapped In Israel

Site Strength Indicator Delivers Results

“Site Strength Indicator from SearchEngineNews has been incredibly helpful, as it provides a very detailed breakdown of the most important SEO factors and how your site rates for them”

– Nicolas Gremion | CEO, Free-eBooks.net

Forget SEO and Hit the Books

“The best SEO tool I’ve ever encountered is The Purple Cow, a book by Seth Godin. This book makes the case that investing your resources into developing an amazing and viral product is better than any marketing or SEO campaigns. Instead of gaming SEO, focus on building a product that goes viral.”

– Eric Bahn | Founder, Beat The GMAT

Now read: 4 Startup Lessons You Won’t Learn In Business School

Image: TopSEOPicks.com

Can You Really Make Money Doing What You Love?

Recently, author Daniel DiPiazza wrote “An Open Letter to Frustrated 20 Somethings” on Under30CEO.com. It blew up. Daniel’s premise: If it were up to him, why would he make a “job” or “work” the center of his life? When someone asks him “what he does”, why should he have to respond and narrowly define himself by the skills he uses to make money?

I’d spend my life traveling, learning languages, practicing martial arts, reading, programming, eating good food and (eventually) raising smart, open-eyed children.

Touché Daniel, and I agree: there is a better way. Now let me break it down for those on a quest to “do what you love” from someone who’s been through all the ups and downs already.

How We Did It

I graduated from Bryant University having built what the Collegiate Entrepreneurs’ Organization named the best chapter in the world, four out of five years. I was leading a team of 150 smart, young, innovative, passionate people. No way I was getting a “real” job after that.

So upon graduation, I pass up job offers galore to “start my empire” from my mom’s basement outside of Poughkeepsie. Pitching VCs, writing business plans, sending money to India for web development — and still without a clue about how to actually make money from my lawnchair. I call Jared O’Toole to drink some beers on the front porch and we realize there have to be lots of other young people trying to start businesses just like us. We co-found Under30CEO.com.

With no revenue in sight, it’s now the dead of winter, and Poughkeepsie is getting depressing. Then the global financial crisis hits, and we’re really screwed. My mom comes to me shortly after Christmas to tell me that we will be losing our house. The home I grew up in.

Lesson 1: At least be able to tell your mom how your business plans to make money.

Suddenly, I question those $65k+ salaries I turned down. But it’s time to hustle. I accept the first job I can find on Craigslist, a position for a driver, and show up at 6 a.m. Wheeling and dealing can’t be so bad, I think to myself. It’ll be my mobile office…

Wrong. I show up and am given the keys to a dump truck. With an 18-foot trailer. I guess it’s time to learn to drive a dump truck.

I get us to the job site, where I’m quickly informed that the crew of laborers I’m driving around aren’t going to appreciate it if I sit in the truck. Time to dig ditches 12 hours a day for the next six months.

Lesson 2: When you put your back against the wall, you make things happen.

Sure, I could have let go my entrepreneurial dreams and gotten a cushy desk job. But instead, I put myself in the most uncomfortable situation possible. Digging ditches with guys who could work me under the table, and then going home to moonlight Under30CEO until 2 a.m., was absolutely miserable. I was making $15/hour, living in a tiny apartment with my mom. I love you, Mom, but that’s not exactly what I thought my “empire” would entail.

But these early days are what make or break most entrepreneurs. If you can get through this part and still believe in what you’re doing, you can survive.

Lesson 3: Test everything.

We try everything we can think of on Under30CEO.com. We don’t talk about it much today, but Under30CEO was once a Ustream show, then a Ning Network, a Meetup, and a membership site; we’ve offered daily deals, affiliate offers, consulted startups, hosted workshops on social media, done dealflow for VCs — you name it, we’ve tested it.

It’s the smartest thing we’ve ever done. Make little tests, and if they make money, run with them. If not, see ya later!

Lesson 4: You don’t test stuff very long when you’re broke.

While throwing stuff against the wall and seeing what sticks is great, when you’re bootstrapping on a ditch-digger’s wage, you don’t have the money or the patience to test things for very long. You’re trying to get cash-flow positive as fast as possible. Any of the business models listed above are solid ideas and could be turned into million-dollar businesses. Looking back at it, it was probably our biggest curse too. We were looking to get hit the jackpot, and we were quick to give up. Young and impatient? Yes… But also smart. Here’s why:

Lesson 5: Never do anything you are going to hate.

Call me a pretentious, formerly-frustrated 20-something, but we always stuck to our core value of doing something we loved. We loved being in the business of inspiring young entrepreneurs. Many of those other business models were not that, and we knew we would eventually grow to hate them. We listened to our gut, and as corny as it sounds, we followed our dream.

But don’t think for a moment that it was easy.

Guts, grit, determination, yeah, all of that, and then some. Following your dream is much harder than anyone will ever tell you. But is it worth it? Absolutely.

Now we’re officially spinning off a new company, based on something we’re even more insanely passionate and excited about: A travel company for ambitious young professionals. The best part? I got to spend seven months around the world, working from this very laptop, plotting world domination.

No wait, ACTUALLY, the best part is that this travel company is designed to be the launching pad for young people who want to see the world, and go out and do big things. This isn’t a course and there is no curriculum. We simply curate experiences in places like Costa Rica and Nicaragua with other amazing people and inspire the creative environment to let you guys figure out your next big moves.

To return to the “open letter” that inspired this post, yes Daniel, you’re spot on. It is possible to make money doing what you love. It’s just not easy. But when it helps other people figure out their dreams? Then it’s game on.

A version of this post originally appeared on the author’s website.

Matt Wilson is the Co-founder of Under30CEO and Adventurer in Residence at Under30Experiences. To win a free trip to Costa Rica from Under30Experiences, sign up to win today.

Check out the 12 Hardest Questions Venture Capitalists Will Ask You.

6 Ways To Cultivate Creativity In Your Company

The startup scene today is an overcrowded space where companies are constantly vying for talent. But hiring talented people is only the first step in cultivating an innovative and creative environment. Building a workplace where there is a constant exchange of ideas involves finding the right formula for your company and culture.

You can’t force creativity, but the right setting will put your team in the right frame of mind to find imaginative solutions. Here are six ideas to help cultivate creativity in your company:

1. Be easygoing.

A relaxed and flexible work environment increases your team’s productivity by letting ideas flow. Encourage an atmosphere where the boss is more likely to make you a coffee than expect you to make them one.

Let go of the traditional 9-5 work week and have team members come in to work when they are rested and at their best. Not everyone is an early bird, and that’s good! Embrace your employees’ natural rhythm — they’ll show up to work fresh and ready to go.

2. Hire for culture.

Look for team members who understand your vision and align with your culture. Having a team that shares one vision and works together helps the organization run smoothly. This doesn’t mean only hiring people who always agree with you, though. Encourage different perspectives — it will help your company stay ahead of the curve.

3. Bring on people who love what they do.

Hire people that are passionate about their work. You want people at your company who really care; people who are excited to go to work everyday because they believe in the product. Adding people that want to improve your product will be the most beneficial for your company.

Point #2 goes hand-in-hand with this one. It’s far more pleasant to work alongside interesting, friendly, and driven people working towards the same goals.

4. Encourage diversity.

Put together a team with different backgrounds, passions, and capabilities. Having a group with a diverse set of ideas and problem-solving approaches helps push your product forward. Embrace and celebrate your team members’ individuality — out-of-the-box ideas and problem-solving approaches help push your product forward.

5. Incorporate sprints

The hustle and bustle of daily office life can wreak havoc on your concentration: emails, phones, meetings — the distractions are endless. That’s where a “sprint,” a set amount of time in which your team works to finish a project, can be the solution.

Startups develop quickly in the early stages because everyday interruptions are at a minimum. When your company has started to grow into individual teams, having them work in a remote location surrounded by nature is a great way to center your focus and take up a project from start to finish.

6. Take ample time off.

Communicate how important taking vacation is. Our brains are constantly on and connected, taking time off for some R&R is crucial for a healthy work/life balance. Wore-down workaholics don’t produce the highest quality content, you want your employees to be fresh and excited to be at work. Convey to your employees how important time off is — and make it non-negotiable.

There are plenty of roadblocks your team will have to overcome to breakthrough in your industry; the company’s work environment shouldn’t be one of them. Reimagine what “work” should look like, and you’ll be surprised at the impact it will have on your team’s energy and creativity. The best takeaway for your employees? They won’t be boxed in by rigid rules and can focus on building the next game-changing feature instead.

What’s your favorite way of breaking the mold?

Christian Springub started his first business at the age of 12 buying and reselling kinder suprise collectible toys at flea markets. Three years later he switched to creating websites for small business in his hometown with Fridtjof. Christian moved to San Francisco in 2011 to build Jimdo in the USA.

Startup Tips: How To Mine Your Customer List For Sales Gold

As a business owner, your biggest potential gold mines are often closer than you think — it’s just a matter of knowing where to look. By going beyond what’s worked in the past and being open to new strategies, you’ll be surprised by how many untapped profit centers are just within your reach.

Uncover Hidden Gold Mines

You already have one major profit source at your fingertips — your customer list. Tap into this often overlooked gold mine by implementing the following strategies:

Reengage lost customers. Most of your customers, clients, or patients don’t stop doing business with you because they’re dissatisfied; more often than not, life gets in the way. In my business, we created a three-step strategy for regaining them (our Customer Re-Engagement Strategy™). This tactic generated over 100 percent increase in sales in less than five days. How? We simply created an email for our client’s list of existing customers, expressed our gratitude for past business, and expressed concern for having not heard from them in a while. We then made a time-limited, preferred customer offer and followed up on that.
Upsell and cross-sell. If customers are offered a complementary product, service, or add-on during the time of purchase, they would happily invest in it. For example, our team helped a client recognize the potential to offer a free, one-month trial for ongoing service and support. Approximately 65 percent of people who purchased the original product agreed to the trial, which added tens of thousands of dollars in additional profits in the subsequent months.
Tag team. Some of the biggest companies in the world owe their success to joint venture partnerships. Look for opportunities to leverage the trust and goodwill you’ve created with your customers, reach out to a company that offers a complementary product, and make that product available to your customers for a share of the profits. When I owned a real estate development company, we did something most of our other competitors were not doing — we struck deals with related businesses to provide “preferential pricing” to our clients. Pairing up with furniture suppliers, security companies, and other related industries resulted in one of the largest profit margins in the industry.

Fix the Leaks

Most entrepreneurs believe the only way to grow a business is by acquiring new customers. Meanwhile, their existing customers are being ignored.

The truth is that your competitors are working every day to win over the hearts of your customers. People want to feel valued, special, and appreciated — if you’re not communicating this to your prospects, they’ll find someone who does. By taking time to engage in an ongoing dialogue with your prospects, offering them valued information, and providing them with incentives to return, you’ll see a better, more consistent flow of income.

Convey Your Value

Choose advertising and lead generation opportunities that make sense for your business, and position your product or service as the obvious choice in your market. In addition, ask for references from your happiest customers. Simply asking for — and rewarding — referrals will engage current customers and instill confidence in new ones.

When it comes to increasing profit centers, the outcome is dependent upon your approach and strategic thinking. Continue to pursue new strategies, seek fresh ways to engage current customers, and capitalize on opportunities to increase the perceived value of your products.

Because when you do strike gold, everyone wins: You’ll experience reduced business costs and increased profits through more efficient operations, and your customers will get exactly the experience they were looking for.

Charles Gaudet’s controversial marketing insight has earned him the title of “The Entrepreneur’s Marketing Champion” by both his clients and Insiders’ for his ability to help them out-compete, out-market and out-earn their competition. As the founder of PredictableProfits.com, he’s an expert at helping entrepreneurs radically improve their profits through a series of effective marketing strategies.

Now check out 5 Tips For Young Entrepreneurs Who Want To Be Taken Seriously

12 Tips For Crowdfunding Your New Startup

Choose an Entrepreneur Facing Platform

“Spend some time researching successful projects. You’ll notice that there are core elements of a successful campaign: compelling rewards, a powerful story, and out of the gate support from friends and family. At Fundable, we coach our clients through best practices, and provide them with resources to increase their chance of success. Every entrepreneur should look for that type of support.”

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

Read the Fine Print

“Read the fine print of what the future ramifications of fundraising are for your business after taking on crowdfunding. Walk through the different scenarios for future funding and analyze whether crowdfunding your first round will be a turnoff for other potential investors.”

– Abby Ross | Co-Founder & VP Operations, ThinkCERCA

Solve a Problem, Don’t Create One

“When it comes to crowdfunding, the best and most successful ideas come from entrepreneurs that are trying to solve a problem, not create one. If you have a product that will solve a problem that everyone has, you’ll have a good chance of succeeding with your crowdfunding efforts.”

– Derek Johnson | CEO/Founder, Tatango

Understand the Downsides

“Crowdfunding is not a panacea for first-time entrepreneurs. While it can reduce the regulatory burdens of initial capital raising, it comes with downsides. You need to ask yourself whether you want to deal with information requests from 100 shareholders, trying to convince a seed or VC to join that quagmire or the potential of losing your friends’ and families’ savings. ”

– Peter Minton | Founder & President, Minton Law Group, P.C.

Build Momentum First

“Crowdfunding campaigns can become “stale” over time, much like a house that has been on the real estate market for a while loses luster. Make sure to launch your campaign after having folks commit to participate, and then try to schedule a dripfeed of interesting news throughout your campaign. Show momentum — everyone wants to back a winner!”

– Aaron Schwartz | Founder and CEO, Modify Watches

Tap Into the Power of Video

“If you’re looking to crowdfund a new idea I’m going to assume you’ve done your research and have determined it’s a good route to take. Many crowdfunding success stories have said a great video was key to their success. A study by Econsultancy said people are 97% more likely to buy your product after watching a video of it. That’s huge!”

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

Develop a Network of Influencers

“Crowdfunding websites are simply funding platforms. That means you can’t rely on them to market and find funders for your venture. You’ll need to do your own marketing and develop critical mass to get your project funded. Increase your chances of getting crowdfunded by developing a strong network with plenty of influencers.”

– Benjamin Leis | Founder, Sweat EquiTees

Build Your Own Platform Instead

“Follow Lockitron and App.net’s path. They built their own platform to crowdfund, and it worked — so now they don’t have to share a percentage. Lockitron even recently opensourced the code to do so. Check it out here: http://selfstarter.us.”

– Ben Lang | Founder, Mapped In Israel

If You Almost-Build It, They May (Still) Come!

“For physical products, I think crowdfunding presents a unique opportunity to test a market before spending on inventory. That alone is a great reason to build a campaign to sell something that you’re fairly sure the market will love. That said, get as far into the design/build process as possible, so potential customers know you’re serious, and so you identify challenges/costs early.”

– Derek Shanahan | Marketing, Playerize

Plan Your Next Move

“It’s important to have clear plans for how you will use the funds you raise and how you will sustain your success. Be sure that the funds you raise can serve to launch a profitable venture.”

– Lisa Nicole Bell | Founder/CEO, Inspired Life Media Group

Only Raise What You Need

“Despite the big numbers that often grab headlines, most companies don’t need millions of dollars to build a minimum viable prototype (MVP). Spend as little as possible to validate your business idea and then you can attract more capital on better terms. ”

– Robert J. Moore | Co-Founder and CEO, RJMetrics

My Advice? Don’t!

“Your ability to raise money on crowdfunding sites is not correlated in any way to your ability to run a business. If you need outside financing, force yourself to raise money from professional investors — have the door slammed on you a few times! Crowdfunding is “safe,” but a first-time entrepreneur needs to experience hardship, and understand what experienced investors look for in a business.”

– Sunil Rajaraman | CEO/Co-Founder, Scripted.com

So what’s this Everywhereelse.co The Startup Conference?

Startup Tips: 6 Tips For Negotiating Effectively

The word “negotiating” often brings to mind hard-nosed business people in suits stubbornly bidding over the details of a deal. It’s assumed that if one person “wins” the war, someone has to lose. Not so. Business has evolved past the point of needing to be a tug of war between ego-driven people who refuse to lose. Here are six tips for negotiating effectively:

1. People should always come before profits.

Relationships are the currency of influence and success in business. No matter how badly you want the deal or a certain outcome, do not use, manipulate, insult, or demean people to get it. Not only does it create bad energy that will come back to you, it also sets you up to be found out and have people walk away from the deal unhappy. While you can’t control anyone’s opinion of you, you can do everything you can to operate in integrity and treat other people with respect. This is the first and most important rule of negotiating.

2. Know who’s on the other side of the table.

I can’t tell you how many times I’ve sat down to negotiate a deal and had people make all kinds of wild assumptions about me, my company, and my partners. A lack of research on your part says that you either don’t care enough to prepare properly or you’re an amateur who isn’t savvy enough to research the other side.

Take the time to understand who you’re negotiating with – what makes them tick, what that might want in the deal, why they might want what they want, what’s urgent versus important for them. As with sales, the more prepared you are, the more effective you’ll be.

3. Know what you need, want, and would like to have.

Before you arrive at the negotiating table, know what you absolutely cannot compromise and what you’re willing to concede. This prevents the temptation to get caught up in emotions and the desire to reach a conclusion. Even when it’s uncomfortable, it’s important to keep your objectives in the front of your mind and advocate for them.

4. Create leverage.

In many cases, you have advantages in a negotiation that are not obvious to you or the other party. To fully maximize your opportunity, it’s important to think about what advantages you have that make your proposal more desirable for the other party. It could be a strategic partner that the other party wants to work with or it could be a future promise that you could easily fulfill. Keep 2-3 leverage points handy and use them if negotiations begin to stall or go south.

5. Give something meaningful.

The best way to start a negotiation is with a meaningful gift. In his classic book, Influence, Robert Cialdini explains the concept of reciprocation, which says that when we give something to someone, they feel indebted and want to create balance by returning the favor or gift. The reason to give is not to get something in return. The purpose is to set the tone for the negotiation.

If you’re a genuinely kind and generous person, you’ll want to do things that create goodwill. The gift could be something as big as courtside tickets to a sporting event or something as simple as a Starbucks gift card for $10. The gift is less important than the proper motivation and follow-through.

6. Close quickly and gracefully.

If you’re a fan of the ABC television show “Shark Tank”, then you’ve probably witnessed people talking themselves out of deals by not knowing when to stop talking. Going back to point 3, identify a point that’s satisfactory and immediately close. Don’t linger or talk out of nervous energy. Simply state the terms, seek confirmation, and then discuss next steps. Don’t give the other party the chance to change their mind and spend time waffling over inconsequential details. Be clear, be firm, and be progressive.

– – –

Want more advice? Check out Influence by Robert Cialdini and Getting Past No by William Ury – both books are fantastic primers on negotiating and personal selling.

What negotiating strategies do YOU use?

This post originally appeared on the author’s blog.

Lisa Nicole Bell is equal parts artist, businesswoman and motivator. Lisa is the Founder and CEO of Inspired Life Media Group where she and her team meld art, social change, and commerce to create economically viable media properties.

Startup Founder Spotlight: Thomas Kjeldgaard, CEO & Founder, Splashpost

Thomas Kjeldgaard is an online entrepreneur who co-founded Pagemodo, which was acquired by Webs in 2011. Since then, he founded and is the CEO of SplashPost, a tool that helps Facebook Pages turn ‘likes’ into sales. Thomas is publicly known for his conference lectures and addiction to designing UI and UX.

Who is your hero?

Steve Jobs.

What’s the single best piece of business advice that helped shape who you are as an entrepreneur today, and why?

Develop something that you can sell over and over again. Create a business that is not dependent on you!

What’s the biggest mistake you ever made in your business, and what did you learn from it that others can learn from too?

Holding back with marketing. Marketing starts day one. As soon the idea is on the table the marketing process starts — not when the product is ready!

What do you do during the first hour of your business day and why?

First, I get an overview of the day and handle any crucial user issues. Customer service is crucial to success and many businesses don’t realize that.

What’s your best financial or cash-flow related tip for entrepreneurs just getting started?

Develop something scalable based on a recurring subscription model. This puts money in your pocket each month = cash flow.

Quick: What’s ONE thing you recommend ALL aspiring or current entrepreneurs do right now to take their biz to the next level?

Focus. Track everything in your business to know where you make money and what costs you money. Understanding your users and customers is crucial for success.

What’s your definition of success? How will you know when you’ve finally “succeeded” in your business?

When users tell you they are happy with your product, you know you are making a positive difference in their life. They will then be happy to pay you — and if you’re lucky, you make a nice exit from your company and cash in on that.

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 is everywhereelse.co The Startup Conference?

Founder Spotlight: Miguel Ramirez, CEO Soccerly.com

Miguel Ramirez is a serial entrepreneur who co-founded mediotiempo.com, the largest sports site in Mexico and one of the most relevant Internet success stories in Latin America. The company was acquired in 2010 by Time Warner. Today, Miguel is co-founder and CEO of soccerly.com, which was launched in January 2013 with the ambitious plan of becoming “the online destination for soccer fans in the U.S.” Miguel is also a partner at kiwilimon.com, a leading food/community site. Follow him @mrlombana.

Who is your hero?

My grandpa.

What’s the single best piece of business advice that helped shape who you are as an entrepreneur today, and why?

It is important to be humble. Always remember the day you started and where you come from; no matter how successful you become, it is important to have both feet on the ground and keep on working hard at all times. Successes and failures are just life episodes and should not change the way you act.

Also, being a good listener is a must — be close to your team and think of them as family, not employees.

What’s the biggest mistake you ever made in your business, and what did you learn from it that others can learn from too?

One of the biggest mistakes I remember making is when my partners and I decided to sell our stake in a company because at that point, we did not have the necessary time to devote to it; even though we did consider several options, I guess we were not wise enough to make the best decision. At the end, it not only cost us money but also a good opportunity for the future that we regret today.

We should have asked for advice from other people (mentors, family, etc.) — that might have had helped us to act in a different way, but unfortunately we didn’t. But every learning experience is valuable, and without mistakes there are no successes.

What do you do during the first hour of your business day and why?

I check my agenda and my “to dos” to set the best road map for the day. I like to be well-organized and do as many things as possible every day, as the following day is always loaded with new stuff and more unexpected things. It is essential to have an organized way to work in order to achieve tasks and objectives.

Define your priorities and never leave for tomorrow what you could do today.

What’s your best financial or cash-flow related tip for entrepreneurs just getting started?

Resources are always scarce, and it is always easier spending than saving. Focus only on those things that will bring you to the next level and cut unnecessary expenditures — even if they’re minimal, they could hurt you in the long run. The best of you is always there, within you, so use your brain first and then your wallet.

Quick: What’s ONE thing you recommend ALL aspiring or current entrepreneurs do right now to take their biz to the next level?

Work only with the right partners. Take whatever time you need to be 100 percent convinced of the partners you are bringing to a venture; work only with people that add value, balance and commitment.

What’s your definition of success? How will you know when you’ve finally “succeeded” in your business?

Success is not only about money. It’s about achieving personal goals, fulfilling society’s needs, generating employment for lots of people, making users happy and seeing others using your product; when most of these “achievements” are done, you will be happy and can toast your success.

Beware the ill planned innovative rollout.

4 Startup Lessons You Won’t Learn In Business School

My co-founder and I both attended Wharton as undergrads, where we “concentrated” in entrepreneurship (in addition to finance, accounting, legal studies and philosophy). We wrote multiple business plans, negotiated the details of term sheets and collaborated on teams vying for theoretical capital within the confines of a semester.

While the skills learned no doubt gave us perspective and provided a structure for entrepreneurial thinking, after two-plus years of living a startup, it’s become apparent to me that studying entrepreneurship was just as abstract — if not more so! — than my studies in philosophy, especially with respect to starting and building a bootstrapped company.

The lessons outlined below may not be as sexy as term sheet negotiation and capital raising, but they are core to the success of a resource-constrained startup — and make a world of difference between success and failure:

1. Learn how to sell, quickly.

You need to be profitable from day one, and consequently, you need to think about what you’re building as a sustainably profitable venture with a real business model. You do have investors, but they’re your clients, and they’re not giving you money because of an impressive management team, large addressable market, previous accomplishments, or world-scale strategy.

They care only about your ability to address their specific needs in a better way than the current solution. Can you fix their problem? They don’t care about anyone else’s.

2. Learn how to build relationships.

You may be without financial or strategic advisors, but no one understands the problem that you’re trying to solve better than the customers you’re courting. Your first set of customers will effectively become your advisors and most valuable advocates, providing deeper insight into the issues you’re trying to solve and giving you a better grasp of customer needs.

Your first 10, 50 and 100 clients will define your brand and help you shape your business, so make sure you listen to them vs. trying to expand too rapidly. Better insight and understanding of your customers in the beginning is key to setting your business in the right direction.

3. Learn how to engage client referrals and leverage the media.

You may not have the budget for marketing programs, but even if you do, there’s nothing better than a referral from a satisfied customer. Word-of-mouth marketing from current customers creates a trusted network that results in a supportive, invested client ecosystem.

With regards to PR, take the opportunity to engage writers directly with your story. It means a lot to a writer when they receive a custom note from a founder instead of a templated message from a PR firm or marketing rep.

4. Understand the scope of what you’re embarking on — and the significance of determination and perseverance.

This is where our traditional entrepreneurship curriculum failed most fundamentally. Successful entrepreneurship rarely happens within the confines of a year, let alone a single semester, and our half-hearted attempts at starting businesses every semester (only to let them die at winter and summer breaks) reinforced a misleading expectation: that success can be validated quickly.

Building a successful company takes time and patience, two assets that you can’t raise from any venture capitalist. Yes, capital can help you hire and attract resources, but in the early stages of a startup, doing all the work yourself will provide you with perspective on the full scope of what you’re building.

Being in control of your own destiny also uniquely allows you to go at your own pace. While you obviously need to be aware of market pressures, without the pressure from outside investors, you can take the time to better lay the foundation of your business — a foundation that, one day, might support an empire.

Zach Yungst is the Co-founder of Cater2.me, a company founded in late 2010 focused on revamping the corporate catering industry. Zach grew up in Sarasota, Florida and graduated with degrees in Finance and Philosophy from Wharton / The University of Pennsylvania. Post graduation, Zach worked in investment banking at Morgan Stanley in New York and in private equity for TPG in San Francisco.

Quick tip, this can be a fundraising deal breaker.