Founder Spotlight: Ryan Frankel CEO & Co-Founder VerbalizeIt

Ryan Frankel is the CEO and Co-Founder of VerbalizeIt, the company that delivers instant access to a global community of translators. Ryan received his MBA from The Wharton School of the University of Pennsylvania in 2012 and a Bachelors of Arts degree from Haverford College in 2006. Ryan is a 2012 TechStars alumnus, former private equity investor for Goldman Sachs and an endurance athletics enthusiast. Follow him @rvfrankel.

Who is your hero?

My dad, hands down.

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

Surround yourself with people who are smarter than you. If you find yourself at the top of the intelligence chain at your company, you’ve done something wrong. In creating a team of intelligent and driven individuals, encourage healthy debate. Disagreement is a good thing, and many times, it’s the best of things in plowing the right path forward. Encourage people to air their opinions and take a stance, even if it’s against the broader consensus.

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

The biggest mistake has been spreading myself and our team too thin by chasing after too many different opportunities. One of the best pieces of advice I have received is that the worst word in any entrepreneur’s vocabulary is “and.” As in, “We’re focused on X, and Y, and Z ….” Be laser focused and avoid becoming a mile wide and only an inch deep.

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

I scroll through all of my emails and pick the highest value emails to respond to first. It’s my own 80:20 rule and it helps me focus on the most important outcomes. I also don’t neglect or push back emails to family and friends. When I first launched my business, family and friends naturally took a back seat and I have since re-prioritized my time to make time for those who support me beyond by business.

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

There’s a fine line between (a) being so scrappy that you miss out on the right opportunities or are not able to hire the best talent and (b) being ineffective or inconsiderate with cash management. As a naturally scrappy person, I have found myself in situations where being pennywise and pound-foolish has detracted more value than it has saved me capital. I make a conscious effort to remain mindful of our cash position but cognizant of how my naturally scrappy personality can be an impediment to meeting business objectives.

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

Find someone who will absolutely rip your vision apart and engage them in a constructive debate. Even if 95 percent of their feedback is off base, you’re bound to find some real pearls of wisdom in there. Accelerate success and failure by pushing yourself outside of your preconceived notions of the right approach.

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

Success for me is encapsulated in both personal and professional achievements. Finding personal satisfaction and enjoyment in my work and ensuring that I’m enjoying the journey and not just focused on the destination is important to me. I know I have a penchant for being too focused on the end result. Professionally, setting and achieving specific goals for revenue, market share and brand awareness is how I evaluate when I’ve finally “succeeded.” I constantly revisit these goals and our relative progress.

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.

7 Easy Ways to Improve the Way Your Startup Works

At my last 9-to-5 job, every time I thought differently from my supervisors and managers about a problem we faced, I wrote down what bothered me and how I would do it differently given the opportunity. Before long, I had a huge spiral notebook filled with ideas. I realized that all these “negatives” were actually opportunities for better leadership. And I brought many of those ideas to the company I now co-own.

You can do the same. Whether you are working in an executive position, just striking out on the entrepreneurship path, or you have already started a business, consider the following seven ideas for taking your business (and company culture) to the next level:

Location. Location. Location! (Did I mention location?) You are paying rent already, or your bosses are, so make it money well-spent and get on a prime street with high traffic. Bright signs near a freeway let everyone know you are there. If you only need a small office suite, make sure you can have your name on a sign outside the building so you are getting the exposure.
Hire slowly; fire quickly. This is a big one for entrepreneurs and business owners. Let me repeat it: Hire slowly. Fire quickly. You might be in a rush to fill a vacant spot or add a new position, but it takes more time (and money, and stress) to train the wrong person and fix their mess than it does to hire the right person in the first place. A bad hire brings down the entire company. Their effect is felt by all employees. The phrase I use time and time again is: “You never miss someone after you have let them go. You only wish you had let them go sooner.”
Inspire, develop and lead by example. Your employees are vital to your success — and payroll is also the highest cost in a company. At Star Staffing, it is our employees that make us the reputable firm we are today. Inspire your employees to be the best, motivate them, and help them grow. Make sure to provide continuing education too. Whether you send them offsite to conferences and training seminars, or offer an internal learning website or trainer, it’s important for your team members to strengthen skills and gain industry knowledge. It is up to you to make sure that they are given the right tools and resources to do their job efficiently.
Have fun, but keep it real. If it moves, measure it. Track activities that lead to results. I’m a true believer that activities done correctly and continuously lead to results. For instance, in sales, it takes an average of eight times to break into a new client. You need to see that company or person eight times before you can even begin to think you have a chance. If you continuously see that client week by week, you should gain real traction, and that will lead to a potential new client. Another great reason to track everything is that you can see how your company operates overall: what’s working, what’s not working, and what’s needed when hiring (see #2).
Operate with integrity. You will be faced with challenges to your integrity and to your company’s integrity; do not let money or greed get in the way. Your reputation counts on it. At Star, we always operate with ethics and integrity. Even when it costs us, we tell our clients the truth — and that’s why we have high loyalty and retention rates.
Strive for excellence in everything you do. From answering phones to handling collections, every task can be improved to give your client that “WOW” feeling. How do your processes look? Are your clients hanging up the phone feeling like they just dealt with the most amazing company or the opposite? We try to make every client and employee feel appreciated, valued, and taken care of. It’s important to look at every operation of your company’s front line. Are you striving to be the best in every aspect, even the smallest of tasks?
Be different than your competitors. What sets you apart from your competitors? The answer is YOU, and your people. Embrace this, and take it all the way to the bank. The main reason I chose to leave a comfortable paycheck was to do things differently, and now that I am co-owner of Star Staffing, we continue to live that philosophy. We operate 24/7, and I visit clients on a regular basis as the main sales representative. That’s right — who better to sell than the owner of a company? Half my new clients had never met their prior staffing firms’ business owner — yet they deal with me on a daily basis, cell phone number and all. I heard a great quote recently from “Good to Great” by Jim Collins: “Put your best people on the biggest opportunities, not the biggest problems.” Too many owners and executives sit in an office all day submerged in paperwork. I spend my prime hours (9 a.m. – 3 p.m.) in front of clients and employees. After all, they’re people that make my company the industry leader it is today.

Nicole Smartt is the Vice President and co-owner of Star Staffing. She was recently awarded the Forty Under 40 award, recognizing business leaders under the age of 40. In addition, Nicole co-founded the Petaluma Young Professionals Network, an organization dedicated to helping young professionals strive in the business world. Nicole can be found on twitter; @StaffingqueenN.

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.

3 Questions to Reevaluate Your Startup’s Marketing Strategy

If you’re like me, you’re exhausted by boring marketing campaigns, up to your eyeballs in gimmick-laden slogans, and putting your direct mail straight in the paper shredder. I just received a car dealership promotion disguised as a W-2.

As consumers, we’re inundated by more than $465 billion a year in total ad spends. The amount of money companies are spending to make us feel badly about them is staggering. But the real question is, why do companies keep competing for attention using mediocre models when they could play by a very different set of rules?

Take T-Mobile — they successfully choreographed multiple flash mobs and captured them in videos that generated nearly 100 million YouTube hits and a 52 percent sales increase. Or the CDC’s Zombie Apocalypse blog, which generated 1.2 million new Twitter followers. Both of these examples required someone recognizing the value of taking a big marketing risk, thinking creatively, and ultimately, hitting the green light.

Though I’m no sports expert, I think of marketing like baseball. You want a steady stream of base hits to load the bases. That’s your traditional marketing. But then you want to bring up your big slugger and knock one of out of the park every once in a while, because people don’t talk about or remember the base hits. People talk about the risks that paid off (and the risks that didn’t!).

Like great baseball teams and their fans, you can create an exciting relationship between your brand and your customers if you’re willing to take a risk. Here are 3 questions to get you started:

1. What’s worth amplifying?

Zappos lives by 10 core values. The third and fourth are “Create Fun and a Little Weirdness” and “Be Adventurous, Creative, and Open-Minded.” To show customers how much they embrace those values, in 2012, Zappos founder Tony Hsieh launched his best-selling title “Delivering Happiness” as a comic book. Fun and a little weird? Creative and adventurous? YES!

The result: The comic has consistently rested in the top 5 best-selling books on Amazon under Customer Service and Retail. Every copy is like a foot soldier, heading out into the world to generate connections and dynamic conversation around the brand.

Conclusion: Your core values are worth amplifying.

Sir Ken Robinson, a world-renowned education and creativity expert, developed the most-viewed TED talk of all time: “Ken Robinson Says Schools Kill Creativity.” It has generated nearly 15 million views since 2006. In 2010, a new talk called “Changing Education Paradigms,” was launched in partnership with RSA Animate, who crafted an illustrated video of Ken’s talk that generated an additional 9.5 million views.

Conclusion: Your wisdom is worth amplifying.

Starting in 2009, T-Mobile began producing choreographed experiences as part of their “Life’s Worth Sharing” campaign to promote their mission of connecting people. They orchestrated:

A flash mob featuring 350 dancers at the Liverpool Street Station
An a capella singing arrangement that welcomed home travelers arriving at Heathrow Airport
13,500 people singing Hey Jude together in Trafalgar Square.

To date, the campaign has generated close to 100 million YouTube hits, countless major media placements and incredible increases in foot traffic, Internet searches (up 38 percent) and sales for T-Mobile (up 52 percent).

Conclusion: Your mission is worth amplifying.

2. What medium makes sense for your brand?

While the goal is to create a campaign that drives conversation and ultimately revenue, taking risks together is equally valuable to your culture. It’s an opportunity to generate camaraderie and include people in something that will be “fun” to create. So look to your staff and yourself and ask what would be a blast to work on. A few ideas include: a music album, a documentary film, an animated video, wall art, a fashion show, a staged play, and a flash mob.

If you have people on staff who loved comics as a kid, or wanted to be dancers, or wished they could be rock stars, now’s the time to tap into their dreams — while also delivering for your business.

3. How will you execute your campaign?

The best way to create and realize a BIG vision is to hire a producer, agency or in-house talent. Don’t risk looking amateurish or wasting time and money; other people have devoted their lives to this kind of work. So find them, test them, and if they impress you, get to work.

You want your new partner or producer to:

Guide you in creating your vision
Hire and manage the artistic staff
Oversee regular deliverables
Capture feedback from your team
Manage the project’s momentum
Navigate emotional and tangible obstacles in the creative process
Deliver a draft for testing
Revise based on feedback
Deliver a brilliant final product you’re all proud of

Yes, there’s a tremendous amount involved in taking a creative risk, but there are people available to help you. Partner your mission, your message and your worth with their artistic talent, and give yourself a chance to stand out amongst the clutter. Don’t settle for mediocre marketing that leaves a bad taste in people’s mouths.

Risk being brilliant instead.

Working in Los Angeles for a decade, Corey Michael Blake was the face and voice behind a dozen Fortune 500 and Fortune 100 brands as a commercial and voiceover actor (his work won Belding, Addy, Cannes, and London International Advertising awards), before working as a film producer and director, as an author and publisher, and now as the founder and President of storytelling company Round Table Companies (RTC).

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

Startup Tips: How To Know When To Move On

So, you know when you know. That is, you know when it’s time to move on to better things for your business, whether that means finding a stronger vendor, hiring a new employee (and letting go of the old one), or even firing a client (gulp!).

But often we hang on far too long out of fear, worry, and plain old procrastination. Today, I’ve got your back. Because there are three terrible reasons to avoid change and two great ones that you need to remember when it’s time to let go.

Excuse #1: “I don’t want to hurt someone.”

I get it – I’ve separated from five different assistants in various capacities over the life of my business and it’s hard to do every single time. You worry that you’re saying “you’re not good enough” or “I don’t like you anymore” to the people who have put time and energy to your business for months or even years.

It’s worse if the team members, vendors or clients have become friends in that timeframe (which they very well can be if you actually like your clients and colleagues!). You’re worried that this sends a message that you’re somehow above them, too big for your britches, or maybe you’re worried that you’ll been seen as having impossible standards.

Emotions aside, this is a business decision and the only one you should be concerned about hurting is your business. Because your business is the client here – it has needs and you’re the caretaker. If something or someone isn’t serving the business anymore it’s time to make a change. Period. How that makes them feel or the guilt you take on is a moot point because your business needs to come first.

Acknowledge those fears, but don’t let them hold you back.

Excuse #2: “Maybe it’ll get better.”

If you really believed that then you wouldn’t be entertaining the thought of making a change. Quite often the problems have been growing for months, slowly driving you crazy until you just know that it’s time for a change.

I get it. You don’t want to be a perfectionist entrepreneur that no one can get along with and who goes through assistants faster than the devil who wears Prada.

The compromise is a test. You simply state what you need — “Please give confirmation you’re working on this project” or “Please invoice me this week so I know how much time you’ve put in” — and if the other person does not reply within three days, you know it’s time to move on.

Maybe you’ve read “When do you know it’s time to fire?” and you’re wondering if you’re actually going to fire someone over not responding to an email. These small tests are just confirmation that the problem exists. You don’t need to explain why you came to this decision.

Listen: the reasons that you end an agreement are your own. Simply state that the relationship has ended and move on. You don’t need to give a reason, explanation or justification for your decision. See above: the only thing to be concerned about is the health of the business.

Excuse #3: “I don’t want to get bad-mouthed.”

Here’s the thing that mature adults recognize: there are two or more sides to every story. If a client relationship ends or an assistant leaves, it doesn’t mean that someone is at fault, wrong or even bad at their job. It means that needs change, availability shifts, and not everyone meshes.

Imagine if we felt this way about personal relationships: “What do you mean you’re not still friends with those kids from kindergarten? What are you, defective?” or “Since you didn’t marry the first person you ever dated clearly you’re unreliable and not trustworthy.”

People change, needs change and businesses grow – no one has to be ‘at fault’ when a relationship ends.

I know it’s a very real fear that the person who has your Twitter ID, Facebook page profile and platform is going to stand up and shout out how horrible you were. So instead of firing by avoidance or just ending the contract without a conversation (this goes both ways too), actually have a conversation. Thank the other person or agency for their support and share your decision to move on without inviting a negotiation, debate or argument.

Most of the time, both parties will understand it’s for the best.

Okay — are your excuses for not moving on out of the way yet? Because there are two great reasons why you need to let go:

Reason #1: You can’t go higher if you don’t let go.

Imagine a trapeze artist who just keeps swinging and swinging, never to make the leap to the next bar.

Is it scary? Yep. It is necessary? Yep.

In the very basic sense, you can’t fully commit to a new team member when an old one is still hanging around, not doing their job well. While there may be a little overlap, you need to let go of the people and practices that are keeping you from reaching where you want to go.

Reason #2: Your business is a unit and weak links will break the whole.

In college, I was on a large debate squad that had 20-30 teams producing evidence. If just one team didn’t complete their assignment, the whole squad was weaker. If the quality wasn’t there, then we were all going to fail. We worked together and mentored the younger students, knowing that we could only be as strong as the weakest link.

Your business operates the same way.

If the copywriter doesn’t show up, then your campaign is going to suffer. When the technical VA doesn’t check all the links, sales will suffer. When you don’t show up fully prepared because you’re frustrated or distracted, then the content isn’t as good as it could be. At every turn, you have the ability to turn your business into a well-oiled machine, with working systems and caring team members who are there to serve the client. Weaknesses can’t be coddled for long or your business will suffer in reputation, sales, continuity and trust.

Remember, the business is the top priority – not the feelings of the team member who isn’t well suited for the position, or the company you hired years ago that is no longer serving you well or the client who isn’t a good match for your model. When you serve the business first, you’ll recognize that sometimes it’s just time to let go.

Be honest and answer this question: “What relationship do you need to move on from in your business?”

This post originally appeared on the author’s blog.

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.

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.

Photo: Mayflower

5 Investment Mistakes Even Smart People Make

If you’re so smart, why aren’t you rich?

A lot of smart people ask themselves that question, especially as they struggle to keep up with the bills and worry about an inadequately funded retirement. In my work consulting with entrepreneurs, I commonly find that they spend so much time juggling the competing demands of their business that they take little time to analyze their personal saving, spending, and investing behaviors. And yet giving attention to these areas is vital if one hopes to achieve long-term financial success.

Here are some common mistakes that can derail even the smartest individuals:

The Status Chase: You’ve worked hard, earned your degree and paid your dues. Now you want to show the world how far you’ve come. But the massive house, the new car every two years, and custom-made suits might keep you from building your nest egg. Instead of seeking status through material possessions, pursue excellence in your field or seek to free yourself from status concerns. Ultimately, it’s more satisfying and better for your bottom line. Warren Buffett lives in a very modest house and is hardly known as a snappy dresser and no one seems to hold it against him.
Overconfidence: More than once, financial journalists have highlighted that some of the smartest people in the world have the worst performing portfolios; doctors are a classic example of this. This could be because smart people are used to being able to figure out the system and use it their advantage. They’re not used to playing in a game like the financial markets, where so much of the action is due to chance — and where an inability to admit mistakes is your worst enemy.
Target Marketing: Some unscrupulous financial services firms target professionals, hoping to manage their cash, sell them complicated financial products, and make an unfair amount of money from them. In such cases, their victims would be better off managing their money themselves, or selecting a financial advisor more carefully.
Insufficient Time: Investments require a bit of attention now and then. When you’re busy all the time, it’s easy to ignore things for years on end, to your detriment. It’s better to hire help than to simply ignore everything, but even hiring someone requires that you take the time to research your choice.
The Expert Trap: Investing isn’t like neurosurgery. Investment managers with very impressive credentials often do just as badly — or worse — than those with more modest backgrounds. Because so much of market success depends on being able to buck the trend, exercise self-control and stay calm. The performance of a Harvard MBA may not be as good as that of a no-name university, newly minted graduate. Bright and accomplished people tend to rate others according to a scale of academic and personal credentials that may be largely irrelevant when it comes to managing money. One thing is certain, though: The people with the fanciest credentials will have the highest fees, whether their results justify it or not.

In short, smart people can do better with their nest eggs if they avoid overconfidence and stop seeking to buy status. They should choose their investment advisors carefully and not rely solely on impressive credentials.

Robert Sofia is a best-selling author, award winning public speaker, and financial industry thought leader. He has developed marketing strategies for Fortune 500® companies, personally coaches hundreds of financial advisers nationwide, and is the COO and co-founder of Platinum Advisor Strategies.

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.

Create the Work-Life Balance That’s Right for You

As a time coach, I talk to people who want to live a more balanced life on a daily basis—including startup founders. It can be a struggle, but my real-world experience has uncovered that founders can achieve work-life balance IF all five of the following conditions are met:

You Want It: Not everyone wants traditional work-life balance, typically meaning that you have enough time for basic self-care like sleep, exercise and nutrition and a connection with key people like friends and family members. Instead, as a time coach, I focus on trying to help entrepreneurs achieve their definition of work-life brilliance – meaning your time investment aligns with your priorities. However, I can’t bring about lasting behavioral change if you don’t intrinsically want it.
You Believe It: To have true work-life balance, you need to not only believe it’s possible in a theoretical sense, but also believe it’s possible personally for you. In my experience, this belief comes from a combination of seeing an entrepreneur whom you relate to experiencing work-life balance and/or starting to attempt it yourself and witnessing positive results. Without a sense of hope, it’s nearly impossible to stick it out through the uncomfortable process of breaking old habits and forming new ones. To make it through this difficult withdrawal stage, you need to have faith that the changes will really pay off in the end.
You Value It: We have a limited amount of time each day, and how we invest it determines what kind of life we create. Work-life balance comes at a professional cost for most people, but especially for founders. The choice to invest in activities outside of work may mean that you can’t start certain types of businesses, take on specific categories of funding, work with particular clients, or expand at as rapid a pace. For those who highly value life outside of work, these macro-level decisions that give them the opportunity to live a balanced life are worth the potential cost and risk to their business.
You Know How: Many people want, believe in, and value work-life balance, but they just don’t know how to change. If you’ve always seen startup founders work crazy hours, you don’t have good role models to show you how to behave in a balanced manner. And it’s hard to know how to think and act differently if you’ve always operated in one way. As the quote often attributed to Einstein goes: “The definition of insanity is doing the same thing over and over again and expecting different results.”
You Can: After working with clients around the world with many different personality types, including some with ADD/ADHD, I believe that almost anyone who meets the above four criteria can see improvement in their work-life balance. But for people who thrive in high-pressure environments, achieving traditional work-life balance and moving their company forward effectively may or may not be possible to the same extent as others.

For individuals who fit this profile, the best strategy is to clarify action-based priorities in key areas. This includes things like seven hours of sleep a night, working out five days a week, or having family dinner six days a week. Then you need to focus on making these priorities into routines that allow them to consistently invest their time in these core areas while still keeping up a fairly high level of intensity in your work during the remaining hours.

Work-life balance is possible for founders who meet the above five criteria, but for those who don’t, it’s not.

Elizabeth Grace Saunders is the founder and CEO of Real Life E®, a time coaching and training company, and the author of “The 3 Secrets to Effective Time Investment: How to Achieve More Success With Less Stress.”

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.

5 Reasons To Startup In College

The catchphrase “you only live once” or YOLO is the modern-day version of “carpe diem,” and it usually involves doing wild and risky recreational activities. But an increasing number of college students have taken YOLO to the next level by doing something their parents may find even more unsettling — turning down cushy corporate jobs and internships, and starting their own companies instead.

For what it’s worth, I believe these graduates are jumping into entrepreneurship at exactly the right time. For one, most college students don’t (yet) have families to feed or mortgages to pay. And although they may not have much money either, that means they have very little to lose. Plus, college students are used to keeping their costs of living low — Easy Mac, anyone?

Personally, I couldn’t have started PerBlue without the resources college provided. It’s where I found my future employees, and it’s where I could make mistakes without much risk. For PerBlue, college was like a startup petri dish — sheltered from the toils of the “real world” — where smart people and crazy ideas ran rampant (and still do).

Here are some of the lessons I learned from starting up in college and how you can apply them to your own dorm room startups:

Hire your friends. Find co-founders and future employees within your group of college friends; they will be your most loyal and hardworking employees. In PerBlue’s case, my friends were the ones willing to skip class for two weeks straight prior to launch, and work for sweat equity during the early days to get the company off the ground. Starting out with a very passionate team establishes a strong culture that will be extremely valuable as you grow your employee base. The people you surround yourself with will both teach and help you along the way.
Use (free) campus resources, including mentors. Resources vary from campus to campus, but college is a great place to find free legal and financial advice, clinics and networking opportunities, every day of the week. If you’re starting a Web business, keep an eye out for Startup Weekend, 3 Day Startup and other hackathon-style events held on campus. Chat with your advisor or stop into the business school to get connected with entrepreneurial resources. And don’t be afraid to seek out and talk to students outside of your major — those studying engineering, business and other subjects can provide new perspectives and insights for your startup. In college, my mentors were both professors and other college entrepreneurs. Today, they are my board members and leaders of hugely successful companies.
Parlay your startup skills into other companies (or a “real” job). The experience you gain as a young entrepreneur, whether your startup grows or stalls, will be invaluable later on. Many leaders of successful businesses didn’t major in, or even study, business. But they had the passion and the ability to execute their ideas, rewiring their brain to start thinking and learning from a business perspective along the way — invaluable leadership skills in any job. For example, while I double majored in Computer Science and Computer Engineering, I’ve only coded a few lines in the past two years. Instead, I’ve transitioned to leading the PerBlue team and steering the vision for our products and business. Soon you’ll stop worrying and start strategizing instead. Get in this frame of mind by practicing negotiation, pitching your startup to friends, or even budgeting and balancing your finances — whatever it takes to get your brain focused on becoming a great leader.
Make mistakes early and often. Starting a business will allow you to wear many hats and pick up many new skills you otherwise wouldn’t be exposed to. You will probably stumble a little at one (or more) of these roles, but that’s where delegation and hiring great people plays into the equation. No matter what happens, know that you’ll still be learning more by spending a year working on a startup than you ever would working at an entry-level position in a big company. And even if you fail epically, failure is often the best teacher. You will be that much smarter when you set off on your next project.
Save the job offer for later. The experience of being a college entrepreneur is priceless. Maybe you’ve already been offered an attractive internship or full-time opportunity — some kind of nice, cushy job at a large, established corporation. Well, I challenge you to turn that offer down. Bootstrapping and building a startup is an exciting and sometimes rocky road. Yes, there will be long nights and weekends spent working, a steady diet of Ramen and Red Bulls, and times of absolute burnout. (To this day, the thought of pizza from the restaurant below our first office at 2 a.m. brings back a wave a nostalgia.) As hard and tiring as those days were, I miss them. No matter how difficult or exhausting the work is, it will be worth absolutely every minute. You always have the option go back and work a “real” job later!

Now is the perfect time to take the risk and start practicing the skills it takes to be an entrepreneur — or a leader. I think it’s a clear win-win for those brave enough to venture outside of their comfort zone. What are you going to do today that will enable you to take the leap and start your own company? After all, YOLO!

Justin Beck is the Co-Founder and CEO of PerBlue, a mobile and social gaming company in Madison, WI. PerBlue is best known for its flagship product, Parallel Kingdom. The popular location-based massively multiplayer role playing game for mobile and web platforms has over one million players worldwide. Founded in 2008, PerBlue is now home to 40 full-time software developers, artists, and business specialists.

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.

Madison is getting a new startup epicenter called Starting Block, read about it here.

13 Startup Ideas We Left On The Table (For Now)

Question: In another life, what startup would you have founded?

Food Startups Sound Delicious

“In fact, I almost did start this business, but I changed course. This would have been a service of meal planning, making shopping lists, buying the food you need and delivering it to your door. I think a lot of busy people who want to eat healthy but don’t have time to sit down and write a menu plan for the week would dig it.”

– Nathalie Lussier | Creator, The Website Checkup Tool

Electric Cars Are the Future

“With fuel prices soaring and health/environmental concerns continuing to plague the US automotive industry, I think there’s a terrific opportunity for someone to create a sexy, affordable electric vehicle. Equally important, there must be a charging network in reach of nearly everyone. With built-in WiFi and a Siri-like assistant, this car would make traffic seem more like a treat!”

– Michael Tolkin | CEO, Merchant Exchange

Exploit the Ultimate Combo

“Two of my favorite things in this world are beer and ice cream. I’ve always fantasized about opening up a beer and ice cream shop or restaurant. The other day, I walked by a shop near me in San Francisco that sells only beer and hummus. Those guys are living my dream!”

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

Moon Tourism, Right?

“A flicker of my childhood dream to be an astronaut still burns in my heart. If I was born perhaps a few decades into the future, after the space tourism industry grows with players like Virgin Galactic, I could see myself planning incredible excursions to the moon. Whether it’s for a team-building adventure or vacation, a trip to the moon would be unforgettable.”

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

Spartan Races Win!

“When we get real with ourselves, running a software company isn’t what I dreamed I’d be doing when I was a kid. Sitting behind a desk and computer sounded boring. Don’t get me wrong, its a lot of fun, we have a great team and customers, but the ultimate job is what you’d be doing for work every day if you didn’t have to worry about money at all. Spartan Races would be mine!”

– Trevor Mauch | Founder, Carrot

Real Estate Is Really Great

“This is a tough question; I couldn’t imagine doing anything else. Perhaps I would have been involved in a real estate investment firm or another type of business in the finance sector, as it’s always been an interest of mine.”

– Jordan Guernsey | CEO, Molding Box

Food Trucks Drive Success

“I’d open a Peruvian/Japanese fusion truck with my cousin from Peru here in San Francisco. We’d get the recipes from my grandma that already makes amazing Peruvian and Japanese food. My cousin and I would cook the food while my girlfriend took the orders. I’d start now if I had the time!”

– Jun Loayza | President, Ecommerce Rules

Media Platforms Make Waves

“I’ve always loved the media industry, so I probably would have launched a publication of some kind — which likely would have been a lovely failure! Talking to a large audience is the best way to start a real conversation, and having a platform to lead a discussion has always appealed to me.”

– Brent Beshore | Owner/CEO, adventur.es

Spinning Still Makes People Happy

“If I weren’t a photographer, I’d definitely look into the world of deejaying. I think it’s so amazing how music can lift people’s spirit. Just seeing them enjoy what I’m doing and dancing would be indescribable.”

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

Coworking Daycare Space

“Being an entrepreneur who works 15+ hours a day and who also has a 19-month old daughter, I definitely have thought about the idea of starting a coworking space that had attached daycare services. Entrepreneurs need dedicated work time, possible private office space for phone calls or meetings, but you might not want to leave your kids for 15+ hours a day!”

– Erin Blaskie | CEO, Erin Blaskie, Digital Strategist

Share Alike With a Bike

“Thanks to services such as Zipcar and City Car Share, I’ve haven’t owned a car for the past 4 years. I’d love to build on the idea of shared transportation and create a bike sharing service. We’d place pods all over the city and riders could pick up a bike at any pod and return to any other pod. This would be convenient for both locals and tourists — and a great way to stay fit!”

– Bhavin Parikh | CEO, Magoosh Test Prep

Run Away with Rosetta Stone

“As a linguist, I would have loved to have launched Rosetta Stone. Then I would try and learn all the languages and travel to every country in the world!”

– Nancy T. Nguyen | Founder/Sweet Sylist, Sweet T Salon

Starting Up and Serving Tea

“The dream that fell by the wayside is a tea startup. Years ago, I was very close to embarking on a journey called “60 Teas in 60 days.” It was going to be a web series that brought the audience along as I traveled through Asia — tasting tea, interviewing tea masters and exploring tea plantations. After the initial push, the goal was to create different tea blends and a weekly tea tasting show.”

– Nick Reese | CEO, Elite Health Blends

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

14 Mistakes To Avoid When Pitching Investors

Question: What’s one dumb mistake entrepreneurs should avoid, at all costs, during their first couple of pitches to investors?

Smelling of Desperation

“When you pitch to an investor, don’t sound desperate. People like to invest and be connected to winning projects. If you come off as though this investment is the only way for your business to move forward, it seems needy and is unattractive to many investors, and can sets you up to be taken advantage of. You’ll end up giving away more equity then you should.”

– Raoul Davis | CEO, Ascendant Group

Thinking Only About Money

“When pitching an investor, you’re not just pitching your great idea. A relationship with an investor goes beyond the ROI and it’s important to focus on selling yourself as well as your business plan.”

– Raul Pla | CEO and Founder, SimpleWifi and UseABoat

Going In Unprepared

“Just because you have an idea and you think you need help does not mean you’re ready to raise money. Even if you get an investor interested, nothing will bring the conversation to a screeching halt quite like not knowing how much you want to raise and what you’ll do with it. The questions are core to justifying the investment and showing you’re prepared to lead an institutionally-funded business.”

– Jason Evanish | co-founder, Greenhorn Connect

Introducing the NDA

“Ideas are cheap. Chances are you’ll be laughed out of the meeting if you ask investors to sign an NDA. More important, anyone willing to sign an NDA in a first meeting is probably not sophisticated or serious enough for you to be considering as an investor.”

– Michael Tolkin | CEO, Merchant Exchange

What’s a Negotiation?

“It’s rare that an investor will, straight out of the gate, give you everything you ever wanted. You need to know what you can do with different levels of investment, and have an idea of what situations are bad enough to walk away from the table. A pitch to an investor is the start of a negotiation and you should treat it as such.”

– Thursday Bram | Consultant, Hyper Modern Consulting

Being Too Pushy

“The investors are already there to hear your pitch because they see something in you and your company. Those that push their product or idea too much cause most investors to immediately shut down and not hear the rest of the pitch. Be cool and confident, but not like a used car salesman. You only have one chance to make a first impression, and don’t blow it doing this simple thing.”

– Ashley Bodi | co-founder, Business Beware

Eagerly Meeting First

“Many entrepreneurs make the mistake of meeting with their best investor prospects first, yet their pitch only gets better with time. You will achieve your greatest odds by saving the best for last. Note reoccurring questions and concerns after each pitch, and revise your materials accordingly. By the time you get to the big guys, you will be confident and convincing enough to close the deal.”

– Christopher Kelly | Co-Founder, Principal, Convene

Taking Criticism Personally

“Most investors are direct and are going to ask you the tough questions. That’s a good thing; it means they’re thinking about your idea. Don’t take feedback our tough questions personally or as personal attacks. Answer directly and if you don’t know, say so. Don’t make something up.”

– Nathan Lustig | cofounder, Entrustet

Putting Down Your Passion

“You need more than passion to convince investors. You need a well thought-out business plan and a great product. Even with that, though, don’t be afraid to let your passion show through. It’ll carry you through the entrepreneurial journey, and investors know that, so don’t try to be all business by hiding that enthusiasm. Display it. It’s an advantage, not a weakness.”

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

Leaving Without the Q&A

“Allowing time for questions will naturally create the need to have a concise and focused presentation, while also allowing the investors to partially guide the pitch. No matter how organized a pitch is, it may fail to answer certain questions your audience has. Planning for Q&A time allows your pitch to be clear to someone unfamiliar with your line of work.”

– John Harthorne | Founder and CEO, MassChallenge

Promising Too Much

“Don’t overpromise; go in with what you know, not what you think you can do. Investors will lose faith in you – that is, if they don’t see through you right away.”

– Jordan Guernsey | CEO, Molding Box

Too Diligent About Disruption

“Entrepreneurs often work on ideas in areas they’re passionate about, and along with that can come a sense of religion about changing the way a certain industry works. Disruption is certainly an ideal outcome for a new business, and investors are looking for disruptive ideas, but an entrepreneur that cares more about that disruption than building a sustainable business can often lose sight of the immediate decisions that must be made, even if they steer you away from your original vision.”

– Derek Shanahan | Marketing, Playerize

Don’t Make Projections, Make Plans

“Don’t put a freaking hockey stick graph in the presentation and expect everyone in the room to “ooh” and “ahh.” Projections are guesses that rarely come true. What’s more impressive is your plan to get there. Investors know that your strategy means a lot more than your pretty pictures.”

– Brent Beshore | Owner/CEO, adventur.es

Rushing the Pitch

“As nervous as you might be, try to calm down and speak from the heart. Memorization is often the biggest crutch during a presentation. Nerves get the best of us, and we try to rush through the words just to get it over with. Studies have shown that speaking more slowly not only allows the listeners to register what you’re saying, but it also makes you sound more confident and knowledgeable.”

– Logan Lenz | Founder / President, Endagon

This startup conference was designed for even bootstrapped founders.

6 Reasons To Say “I Do” To A Fellow Entrepreneur

I’m an entrepreneur and I married an entrepreneur. No, I’m not crazy. OK, I am a little crazy, but more on that later.

I run an advertising agency called Rocket XL and my wife, Ro Cysne, is the co-founder of Jil Ro clothing. Like any relationship, it’s not always a bed of roses. Our busy startup lives caused us to change the date of our wedding four times, and forget whose turn it was to pick up our son at preschool seven times (and counting).

But there are some big advantages to marrying one of your own, if you’re daring enough to take the leap. Namely:

Being crazy together. It’s no secret that all entrepreneurs need to be a bit cracked in the head; otherwise, why would we start our own businesses when 50 percent fail in the first year? Shortly after Ro and I finally tied the not, after years of delaying, we once again had to postpone something else – our honeymoon to Mexico. I had a big client pitch that was scheduled at the last minute, and I didn’t want to have one foot in Mexico and one foot in Los Angeles, so we pushed off our honeymoon until the following year. Running her own startup, Ro understands the unpredictability of my schedule. But the craziest part is that rescheduling the honeymoon was her idea!
Networking. Aside from always having a much-needed companion on my arm at networking events (which I hate attending more than root canal conventions), we both benefit from the connections that we meet everyday in the startup world. This year alone we’ve introduced each other to accountants, painters, Web designers, and even a hip doctor.
Piggybacking. Being an entrepreneur means being scrappy and trying to leverage what’s at our fingertips. So naturally, Ro and I always take advantage of each other’s businesses. Take the time last summer, when Ro was shooting her fall clothing collection in a Hollywood photo studio. My son Luke and I arrived mid-shoot while Ro’s models were being prepped for their next outfit. We seized the opportunity, and grabbed the photographer for an impromptu family holiday greeting card. And even better for Luke, he shared a dressing room with the models, who couldn’t stop kissing him (he’ll thank me later).
Short commutes. We’re two of the lucky few that get to choose our office locations, so of course we chose two spots 10 minutes from our house. That means more valuable home time and less time spent in the car. Living in Los Angeles, it also helps that we don’t get home with sore fists from punching the steering wheel in road rage while stuck in traffic on the 405.
Motivation. As an entrepreneur, things get hard. They get hard a lot. And by ”a lot” I mean every day. Who better to keep you from jumping off the nearest building and throwing in the towel than a fellow future tycoon who can empathize with your situation? Last week, when I came home whining about a difficult situation at the office, Ro helped me see the bigger picture by recounting a story of a similar situation with her company and how she got through it. Then I believe her choice words were something along the lines of, “Suck it up, honey.”
A built-in writing buddy. And the best reason of all? Ro gave me the idea for this article and helped me write it. Now time to get Luke started on that lemonade stand of his…

Anson Sowby is a digital brand marketer with a proven track record of launching successful products and companies for over 14 years. He’s led global teams within the Brand and Agency functions of numerous Fortune 500 companies marketing their products in traditional and social media including Toyota/Lexus, Samsung, HBO, Activision, Sony, Old Spice, Dove, PepsiCo, The NHL, NASCAR, and The United Nations.

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.

Is Your Crazy New Startup Idea A Home Run Or A Dud?

Four years ago, I started a company based on the notion of wearing T-shirts for living, IWearYourShirt.com. More recently, I set up an auction for a business to buy the rights to my last name, BuyMyLastName.com.

Needless to say, I come up with a lot of crazy ideas. In my car, in the shower, heck, even in my sleep. All of them get written down somewhere, and I revisit them at a later date when I’m not mobile, wet, or unconscious. After taking a second glance at my list of ideas, about 95 percent of them are complete and total garbage. The other 5 percent have a small shot at becoming something worth acting on. How do I know the difference? I ask myself five simple questions first.

Whether it’s your next big business or a unique marketing campaign, when that next ambitious idea hits, ask yourself these five questions — and if the answer is yes to all five, well, roll up your sleeves and make it happen!

Does my idea solve a problem? What’s that saying, “Necessity is the mother of invention?” Ideas that are born out of needs come complete with a built-in demand. It’s harder to sell someone something they don’t need. In the case of BuyMyLastName.com, I knew that marketing — especially online — was becoming so congested that businesses were having trouble finding ad space that makes them stand out from the crowd. By offering such a unique venue for them to do so, it fulfilled a need for them to maintain an element of surprise and creativity. Does your idea do the same?
Is this an idea I can execute? The worst thing you can do is get your heart — and any investment money — set on an idea that you simply can’t pull off in the end. Give yourself the time to really think through how this idea is going to work. Do you have the resources? Do you have the time or the budget to make it successful? Challenge yourself to ask the hard questions, and get specific.
Is this idea something people will talk about or share? The best ideas are ones that market themselves. You want to pour your effort into something that’s going to make people talk or something that’s going to “turn heads” virtually. If your idea has that surprising element or share factor built in, it is much more likely to be successful. Word of mouth is king!
Does this idea have a shelf life? Maybe it seems like a good idea today, but is it something that will be a good idea in six months or five years? Think hard about where your market is now and where you think it’s headed. Does your idea still solve a problem down the road or will it still be shareable? For example, you know that technology will probably only get more and more advanced as time progresses. Knowing this, does this make your idea more valuable in the future, or less valuable? Put your idea in the context of some of those future external market conditions or internal business conditions and then evaluate it.
Is the value of this idea worth the investment? Crazy ideas can be crazy smart — or a crazy waste of everyone’s time, depending on the idea. If you’ve already answered yes to the previous questions, sit down and ask yourself if the outcome is going to be worth the input. Will your idea bring enough value to the end user that you have to make it happen? Some may say that selling my last name is a gimmick, but I truly believe that it has the potential to be a huge stage for the right company and I feel strongly about the value it can bring them. Do you feel as strongly as I do?

I can’t say that every idea I’ve ever tried has been successful, but I can say that I don’t regret pursuing a single one. I’m the guy that will always believe in crazy ideas.

You can’t guarantee a new business idea will work, but you can make sure it has every chance possible to be a home run.

Jason Sadler, Official T-Shirt Wearer at IWearYourShirt, hasn’t always been wearing T-shirts for a living, but has always been creative. Fox Business has called him the “Entrepreneur of the Century.”

The Young Entrepreneur Council (YEC) is an invite-only nonprofit 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.

Jason Sadler Image

13 Tips For Expanding Your Startup Into A New Region

Question: What advice would you give a CEO launching or expanding in a brand new region? (one tip)

Lead With Media

“I have the honor of doing CEO branding for several CEO’s, and I would advise a CEO to lead with media. Hire a public relations professional that can immediately get you on local TV, newspapers or radio, as this will add to your credibility locally and put you on fertile ground.”

– Raoul Davis | CEO, Ascendant Group

Are Your Legal Bases Covered?

“Check with your attorney to make sure you are not triggering any additional legal requirements. For example, many cities and states require a company to register if they are “doing business” in the jurisdiction. You need to notify your legal counsel so you can determine whether your new business activities trigger any additional legal requirements.”

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

Add a Local on Your Team

“Unless you have lived in the region you’re launching in for years, you need someone local who knows both the area and the culture. Even regional cultures can be different than what you’re used to, and you want a launch to go smoothly. Even bringing in a consultant can help dramatically.”

– Thursday Bram | Consultant, Hyper Modern Consulting

Research the Region

“I would recommend doing research on the region and on the culture of the region. I would also recommend doing market research on the area. Become knowledgeable about the type of consumers you will encounter and their buying habits, as well as what works from a marketing/advertising/public relations standpoint.”

– Zach Cutler | Founder and CEO, Cutler Group

Draft a Local Strategy

“Go in with a strategy if you’re in a new region. If you have a client or group of clients in the area, then have them take you around and show you who they interact with. Join them – they have a local view into the community.”

– Jordan Guernsey | CEO, Molding Box

Market Makers Make Good Friends

“Make friends with the market makers — the people who know and influence everyone. They set the tone for a product or service and can make or break your business. Make fans of them, and they’ll do much of the work for you.”

– Brent Beshore | Owner/CEO, Adventur.es

Join Startup America!

“The best all-around resource for startup founders is Startup America. Sign up online (s.co), connect to startups in your new region, and attend local Startup America events. It just works — I met my top mentors and co-founders this way.”

– Neil Thanedar | CEO, LabDoor

Build Your Personal Brand

“As a leader, you need to build your personal brand so you can effectively launch your new business. You will need new relationships, partnerships and clients to build your company. A solid brand will attract more of these than anything else.”

– John Hall | CEO, Influence & Co.

Speak at Local Events

“Early on, find a conference or event you can speak at to create fans, customers, and a following of your product or service. Seeing someone out-of-state coming to speak about their expertise bolsters credibility at events.”

– Kenny Nguyen | Founder/CEO, Big Fish Presentations

Go on a Listening Tour

“Too often, an upstart company enters a new region with too much bravado. You’re entering somebody else’s community, so get to know the people — key business leaders, industry reps, and potential customers in the region. Don’t go in trying to sell, but work on listening. Set a tone that shows how you want to become part of their community. Build the relationships and the money will follow.”

– Michael Margolis | President, Get Storied

Call In the Experts

“Expanding to a new region is never as simple as “Take what we did before and repeat.” Find experts in the region who can help you translate your product to the new environment. The smartest move is to find those who know the local customer sentiment, regulatory environment, real estate market, and have insights into the local talent pool.”

– Aaron Schwartz | Founder and CEO, Modify Watches

Keep Uncompromising Focus

“Stick to your core competency and do what you do best. It’s usually a mistake to vary your formula for success when moving into a new market. Build your brand on what you’re known for, using the killer skills that made you successful to begin with.”

– Nick Reese | CEO, Elite Health Blends

Be Prepared to Test

“After making sure your new regional website is catered toward your new demographic, it’s important to quickly figure out what works for you in that particular market. Split-testing is priceless, since there can be culture and/or language differences that you and your team don’t completely comprehend first-hand. Move things around, try different language tones, swap out images, etc.”

– Logan Lenz | Founder / President, Endagon

Check out this awesome post by Neil Thanedar “Do you want to build a startup or a small business?”

Image: Earth

11 Methods For Dealing With Problem Employees In Your Startup

Question: What’s your #1 tip for dealing with problem employees gently — so the whole team doesn’t suffer as a result?

Focus on Actions

“When you need to deal with a problem employee, be prepared to reference the original description for that position or project, and frame the talk around actions. ‘You need to stop doing this, and start doing this,’ is easier to communicate than blame or lectures. ‘You’re screwing this up’ or ‘Why can’t you get the numbers you promised?’ will just put the employee on the defensive.”

– Kelly Azevedo | Founder, She’s Got Systems

The First Clean Kill Awakens the Herd

“If you have a problem employee at a startup, you should get rid of them. A small company has to function as one cohesive team, and even one troublesome employee will slow everything down. A mentor once told me, “The first clean kill awakens the herd.” What that means is that your whole team will actually be relieved if you get rid of the problem that likely has been bothering them as much as you.”

– Jason Evanish | co-founder, Greenhorn Connect

The Apple Doesn’t Fall Far From the Tree

“Deal with the whole tree, not just the bad apple. The best piece of advice I ever heard on this was that you should identify the problem employee and observe them for a week. See who they associate with and who they have their “water cooler” talks with. Generally, a bad apple is not isolated but part of a bad group. Deal with the group collectively and address any issues as a whole and don’t be afraid to fire a few people at once.”

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

Show Some Respect

“Although they are causing problems, take them off to the side and talk with them about the issues. Don’t involve everyone because as always, that person may not realize you’re actually talking about them. Doing so face-to-face and not embarrassing them in front of others is always the best way to go. Put yourself in their place — wouldn’t you rather have someone approach you one-on-one?”

– Ashley Bodi | co-founder, Business Beware

Provide the Right Incentives

“I think one must provide incentives to perform better and lots of positive reinforcement. Problem employees should not be reprimanded publicly, but in private. One should make it clear that good work will be amply rewarded.”

– Zach Cutler | Founder and CEO, Cutler Group

Transparency Goes a Long Way

“Be as honest and transparent as you can. People want to know why; just know that some people don’t work out. If you try to hide that fact, it will backfire and your people won’t trust you anymore.”

– Jordan Guernsey | CEO, Molding Box

Keep Your Cool

“Don’t blow your lid in front of the entire office. Rather, have a side conversation in which you outline the issues and your expectation in a constructive, yet firm, manner. People who are humiliated start to resent you, not work harder for you.”

– Nicolas Gremion | CEO, Free-eBooks.net

Get Rid of Dead Weight

“Fire them. You don’t have time for bullshit. Your team certainly doesn’t have time for bullshit. If employees become a problem, that means they’re not a long-term fit. The first moment you realize that, let them go. Carrying dead weight eventually hurts your entire staff and can endanger your relationships with your superstars.”

– Brent Beshore | Owner/CEO, Adventur.es

Identify the Problem, Explain the Solution

“Don’t jump to conclusions. Very often we think we know what the problem is, but we don’t, and sometimes the employees don’t know what the root problem is as well. A co-working issue could be the result of a procedural problem. Whatever the case may be, you need to identify the real problem. Once you can identify the issue you can determine solutions. Figure out a solution that is going to create positive change, and then envision with the employee on how the workplace and the employee will benefit as a result.”

– Benjamin Leis | Founder, Sweat EquiTees

Give Them a Second Chance

“Address the situation individually first. Be transparent about the problem, but let your employee know how he can do better, and encourage him. If things don’t get better, then fire fast. The last thing you want is a problem employee in the office.”

– John Hall | CEO, Influence & Co.

Give Them Clear Consequences

“Managers should quickly address any issues one employee might be causing to avoid affecting the whole team. They should also provide consequences to follow through with if the problems continue or escalate. Putting the conversation in writing can also help to avoid future problems and make sure everything is clear. Finally, fire fast and hire slow.”

– Heather Huhman | Founder & President, Come Recommended

Bad Apple Image: Rich’s Management Blog

Do You Want to Build a Startup — Or a Small Business?

A couple months ago, I officially left my rapidly growing, profitable small business to launch a tech startup with a huge vision and zero salaries. Why did I do this? For me, it came down to the huge differences between a small business and a startup.

First off, the biggest difference between these two company types is in their top objectives. Small businesses are driven by profitability and stable long-term value, while startups are focused on top-end revenue and growth potential. Steve Blank’s three-minute definition provides great insight.

Earlier this year, I also got the opportunity to meet Mark Cuban, Kevin Plank, and Scott Case, who asked me a classic question with a special motive: “What do you want out of your life in five years?” I knew how Cuban and Plank had made eight-figure companies in their twenties, so I said, “Thirty million dollars,” thinking it would impress them. Instead, Plank said, “That’s a terrible goal!”

That remains the best piece of business advice I have ever gotten. Instead of focusing on great products and huge customer bases, I was too focused on dollar amounts — a small-business mentality instead of a startup mentality. I spent the rest of the weekend working with Case on new business models and products, and left these meetings with a grand new business idea.

My startup journey led me to launch LabDoor. LabDoor provides report cards for your medicine cabinet. Products are graded based on safety, efficacy, and price. Behind the scenes, technical experts analyze top FDA, clinical and independent lab data that informs the product safety apps. Building this startup has been the perfect opportunity to continue my obsession with science, while greatly expanding the amount of people that will benefit from this research.

To be clear, there is nothing wrong with starting your entrepreneurial career with a small business. Building a solid financial base will help create a longer personal financial runway for future startup ventures. Also, establishing a successful small business can build credibility and networks through the business community that will be hugely valuable when launching a startup that requires outside angel and VC investments. But while you do that, be careful not to get too comfortable with a steady paycheck.

How do you decide which one is for you? First, ask yourself, what is my tolerance for risk? And what is my tolerance for failure? Because no matter where you are in your life, it is a great exercise to stop everything and visualize your absolute top-end potential. It’s the kind of brainstorming you did as a kid, when you imagined being the President or, even better, an astronaut.

Then, start by deciding the biggest problem in the world that you want to solve. Develop your ideal solution to this problem, and then invite your trusted friends and family to poke holes in it. Iterate until you’ve got an awesome idea. If you can build a great team around your awesome solution, now you can stretch one foot into the world of startups.

Finally, determine your top objective. Is your long-term goal to build a nest egg or make a dent in the universe?

What do you really want out of your life in five years?

Neil Thanedar is the founder and CEO of LabDoor, a mobile health startup providing consumer-focused product safety ratings. At 24, Neil is the visionary and scientific mind behind a company seeking to replace the FDA and Big Pharma as our top sources of safety information about pharmaceuticals, supplements, and cosmetics.

Check out our interview with Neil Thanedar here.