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Archive for the ‘My Startup Success’ Category

Lemonade From Lemons: Turning Heartbreak Into a Business Opportunity

Posted on February 11th, 2011 by The BizFilings Team
Category: Business Inspiration, Launch My Business, My Startup Success, Start A Business, Work For Myself

While forming a company might not be the foremost thing on a person’s mind in the wake of a painful breakup, a recent guest column in the Wall Street Journal gives several examples of people who were able to turn tragedy into a working business.

One such successful entrepreneur, Joshua Opperman, returned home one day to find his fiancée and all her belongings absent, aside from the $10,000 engagement ring he had bought her, WSJ said. After the jeweler from whom he had purchased the ring offered him a fraction of that price, Opperman started website IdoIdont.com to provide a markup-free space for people to buy and sell jewelry.

Former TV news reporter Ellie Scarborough told the source she founded PinkKisses.com after being dumped just before Valentine’s Day 2009. The site offers gifts for women in the throes of a break-up, including a series of pick-me-up emails, remote makeovers and – naturally – chocolate.

Even the most unpleasant situations can sometimes have a silver lining, and success in one area of life can frequently help ease the pain of setbacks in another.

Did you start a business as a result of an unusual circumstance? Let us know – we’d love to hear your story.

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Cloud Computing Offers New Opportunities for Entrepreneurs

Posted on December 14th, 2010 by The BizFilings Team
Category: Business Inspiration, Form My Business, Launch My Business, My Startup Success, Small Business, Start A Business, Work For Myself

For the crafty and resourceful among us, even the most discouraging situation can be turned into an opportunity. As the national unemployment rate stubbornly hovers at 9.8 percent and a full-scale economic recovery still appears far off, many unemployed Americans have turned to forming a company as a means for getting back to work.

These so-called “accidental entrepreneurs” may have contributed to a large portion of entrepreneurial activity over the past few years. According to a November study by Microsoft, 50 percent of entrepreneurs cited the recession as a chief factor in motivating their decision to launch a new business.

What’s more, 75 percent of respondents claimed to be solo entrepreneurs, relying on technology to grow their ventures. The advent of cloud computing has made such enterprises even more viable.

Cloud computing services allow users access to technologies and software on a pay-as-you-go basis, freeing up expenses that would have otherwise been spent on costly servers and hosting platforms.

However, these services are somewhat of a double-edged sword as they tend to replace jobs. Still, as small businesses employ nearly 50 percent of the private U.S. workforce, entrepreneurship and small business development should be promoted as a top priority.

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Looking for Reasons to Start a Business?

Posted on November 16th, 2010 by Joey
Category: Launch My Business, My Startup Success, Small Business, Start A Business, Work For Myself

startupAre you looking for reasons to start your own company?

OnStartups.com gives you plenty of them. Jason Baptiste provides some great insight into starting your own business worth repeating:

  1. It’s a once-in-a-lifetime experience. As Baptiste puts it, “Doing this may be hell at times, but boy is it fun. It’s an adventure that you will remember for the rest of your life whether things go very well or things go poorly.” If you love adventures, starting a business may top them all.
  2. Control lies in your hands. An idea that’s been rolling around in your head for some time can actually be launched into something more concrete. How cool is that? As Baptiste points out, “There’s a good chance it’s something that will have an impact on a large number of people … millions of people around the world. That wasn’t something many could achieve, even 20 years ago.” Ain’t that the truth.
  3. Press and public relations are not impossible. In fact, drawing attention to your product and service can literally happen overnight. “Now a great product with a well-crafted story can blow up overnight and get the attention of mainstream media+the tech elite. Take a look at Chat Roulette. Though it’s not a shining example of a great business, it is a shining example of the attention that a company can get press overnight,” explains Baptiste.
  4. Capital is there if you need it.  Once you have launched your business, there is capital available to grow your business, especially when you form an LLC or other business entity. They may be perceived as a more legitimate business than a sole proprietorship or general partnership. And as Baptiste says, “The capital raising world is going through an interesting transitionary period. Since entrepreneurs need less to get to certain milestones, a new class of investors have sprung up, leading smaller and smaller deals.”

To see Baptiste’s full list, visit www.OnStartups.com.

What would you personally add to this list as to why you started your business?

P.S. Did you know Global Entrepreneurship Week started yesterday? Join millions of people around the world to celebrate innovation, entrepreneurship and creativity. To learn more about this event, which runs through Nov. 21, view this video.

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Is Outsourcing the Right Choice for Your Small Business?

Posted on September 16th, 2010 by Joey
Category: Business Inspiration, Grow a Business, Marketing, My Startup Success, Promote My Business, Small Business, Start A Business

OutsourcingAre you thinking of signing on with the public relations agency that retains a lavish office smack in the middle of downtown or perhaps you are leaning toward having your logo created by a fancy 700-client graphic design firm?

Think again.

As small business owners, you may have already discovered that the public relations agency with the biggest conference room or pool table for that matter, doesn’t necessarily mean it has earned the most feathers in its cap.

In fact, I’m sure many of you may be turning to outsourcing as an economical means to rein in your public relations, communications, marketing and graphic design functions. Skilled and talented people are present all across the nation – not just limited to the colossal players on the coasts. Guaranteed you’ll even find these individuals in your own back yard.

Here are some reasons why outsourcing your marketing communications may work for your small business:

  1. Savings. Of course this will depend on the size of your company and the caliber of the task, but if you really take the time to audit how much you are saving compared to having a full-time person on staff, you’ll find the savings to be significant. And, you’ll discover in your research that many companies, like Madison, Wis. -based graphic design company,  Tingalls Dzyn, offer special discounts for startups on custom website design. Numerous options are listed on BizFilings’ Partner pages.
  2. Flexibility. You may not be able to justify hiring an additional employee for projects that ebb and flow sporadically. Outsourcing offers you the flexibility you need to get things done when they need to get done. Along the same vein, outsourcing also enables you to accommodate heavier workloads during busier times without the commitment of taking on another employee.

The downside to outsourcing your marketing communications is that you are placing part of your company in someone else’s hands. Trust is definitely a factor, and you’ll need to make sure the selected company can adapt to your growing needs.

If you do decide to outsource your marketing communcations, think about finding a provider through referrals, networking and online searches.

Do any of you have good or bad experiences with outsourcing that you’d like to share?

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The Youngest Entrepreneurs: Setting Kids up to Win

Posted on September 9th, 2010 by Matthew Toren
Category: Business Inspiration, Grow a Business, My Startup Success, Start A Business, Work For Myself

Matthew-TorenIt goes without saying that all parents love their children and want what’s best for them. We try to feed them nutritious foods, teach them right from wrong, hold their hands while crossing the street, and instill the importance of politeness and good character, all in hopes that they will grow up happy, healthy, and prosperous. There is one area many parents don’t consider though, and it’s an area that can contribute more to your child’s long-term happiness and well-being than many other life lessons. Teaching our children from an early age how to be successful as an entrepreneur can shape their lives in more meaningful ways than most would imagine.

First let’s be clear that we’re talking about much more than money here. Anyone who thinks money equals happiness needs to look at the headlines detailing the woes and dramas of wealthy celebrities and executives with drug problems, failed marriages and criminal records. Being truly successful really boils down to being happy, and as happiness is defined individually, success is also a personal definition. What entrepreneurial skills provide is the ability to achieve success, however you define it. Think that’s a bold claim?

What can entrepreneurship teach kids?

Think about the skills that are necessary to be successful as an entrepreneur. Let’s say that success to you is being able to devote your time and energy to a charitable cause. If you have learned what it takes to be a successful entrepreneur, you’ve learned how to effectively communicate with people, which will be useful in any endeavor. You’ve also learned how to lead people, so you can be a more useful part of your chosen charitable organization, perhaps managing volunteers or logistics.

Maybe to you success equates to having the very best of everything, being able to send your kids to the best schools and never worrying about your finances. Not only will entrepreneurial abilities allow you to accumulate wealth, being an effective business owner is also about managing your money well and preparing for unforeseen circumstances. So, you’ll be able to gain and protect your wealth with the skills you have.

For many, success includes raising a family and spending plenty of quality time with loved ones. While a common perception of an entrepreneur is that of a workaholic, the truth is, truly effective entrepreneurs have learned to balance their lives so that they can spend time doing what’s most important to them. In fact, as an entrepreneur, chances are very good that you’ll be able to spend a lot more time with family and friends than someone who is working for someone else, especially in a management position.

So you see, from being able to properly manage your time and money, to knowing how to effectively communicate and get along with people, strong entrepreneurial skills equate to a more successful life, whatever your goals.

The bottom line

While your children are young, you won’t know how they are going to define success for themselves as they get older. In fact, that definition is likely to change at least once as they grow in maturity and knowledge. But one thing is clear: If you teach kids about entrepreneurship from an early age, they will be better equipped to handle many of life’s challenges and attain their version of success.

About the author

Matthew Toren, along with his brother Adam Toren, is co-founder of YoungEntrepreneur.com and co-author of Kidpreneurs, a book aimed at providing children with tools and strategies they can use to gain valuable experience in starting, managing and growing a successful business venture.

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Running a Home-Based Business: 3 Common Challenges and Tips for Success

Posted on August 26th, 2010 by Adam Toren
Category: Form My Business, Grow a Business, Home Business, My Startup Success, Small Business, Start A Business, Work For Myself

Adam-TorenTo most people, working from home sounds great. In fact it’s the dream of many nine-to-fivers and nearly every 7:00 a.m. commuter – which is probably why a Google search for “work from home business” yields 979 million page results. Who wouldn’t want the freedom to set your own hours, stay in your jammies all day, spend time with the kids, take a break whenever you want, even get a snack (or a beer) when the feeling strikes? Sounds divine, doesn’t it?

News flash: This is the description of a sick day, not a work day.

For the serious entrepreneur, working from home does have its benefits, and it has its pitfalls as well. Like anything in business, it takes dedication and planning to make working from home a success. Here are three common issues the work-from-home entrepreneur faces, and some tips to help overcome them:

1. Loneliness. While we entrepreneurs are typically independent types, we also tend to be “people people.” We thrive on human interaction, especially with other like-minded adults. So when we suddenly find ourselves home alone much of the time, it can be a challenge. Even those little pleasantries at an office job – “Hey Frank, how are Bonnie and the kids?”; “Hi Sally. Love the new hairdo.” – really do mean something to us. A 2007 study by researchers at the University of Michigan even showed that just 10 minutes of small talk improved study participants’ cognitive abilities. It seems human interaction is not only a preference for most of us, it’s actually necessary for us to be at our best. Success Tip: One great way to overcome isolation and loneliness is to participate in online forums. While it’s not face-to-face contact, you’ll be interacting with adults who are interested in similar subjects, and you just might form some valuable relationships. Depending on your business, relating with other entrepreneurs in person might also come from visiting clients. If not, be sure to attend plenty of networking events. You’ll not only fulfill your need for human conversation, you’re likely to pick up some business leads and great advice, too. Check out Meetup.com to find networking events in your area.

2. Others’ Perceptions. Tell someone who’s never done it that you work from home, and you might be surprised at what he or she thinks that means. (See sick day vs. work day example above.) For the most part, who cares what others think, right? Right – except that people (including your own family) sometimes think that because you work from home you have all the time in the world. Time to run errands for them; time to volunteer to head up committees; time to coach Little League; and time to chat for hours about whatever is on their mind at the moment. Success Tip: When you start working from home, make it clear to everyone you know (family, friends, etc.) exactly what that means. Let them know the hours you will be working, and make your expectations clear about how you plan to manage your time. Don’t be afraid to explain to someone making demands on your time that you take your business seriously and don’t have much more “extra” time than someone who commutes daily. If you’re still having trouble with this, use caller ID to avoid all but business calls during your set work hours.

3. Staying Productive. At a regular job, where you work for someone else, you would probably never take a nap at work, no matter what the night before looked like. Of course, taking a nap without losing your job probably isn’t an option. “Brick and mortar” entrepreneurs who go to their store every day are self-employed and don’t have a boss to answer to, but they need to open at a certain time and might have customers and employees counting on them to show up and stay productive all day. Working from home though, having to be accountable only to yourself for how you spend your time, can be a test for many. For the home-based entrepreneur, it’s likely no one will know if you sleep until noon or catch the last round of the U.S. Open on TV instead of working on your marketing plan. Success Tip: If you’re not as productive at home as you think you should be, don’t feel bad. This is a very common concern, and no one is suggesting that you’re lazy or that you can’t hack it. You just need concrete goals and a plan to achieve them. Focusing on the reasons you’re in business for yourself in the first place can help you stay on track. Try breaking your long- and medium-term targets down to daily goals where possible. This will give you something to shoot for every day and help you keep your focus. And if you’re having trouble getting your work day started, set an early morning business meeting with a client or colleague as often as possible. You’ll be up and ready more easily, knowing you have someone expecting you. (And don’t worry – you can always TIVO the Open!)

About the author

Adam Toren is co-founder of YoungEntrepreneur.com, one of the largest and fastest growing small business social networking forums for entrepreneurs, and a “must visit” resource for start-up CEOs, founders, aspiring entrepreneurs, mentors and investors worldwide, reaching an audience that very few can match.

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There is Still Time to Enter These Contests for Small Businesses

Posted on August 25th, 2010 by Joey
Category: Business Inspiration, Form My Business, Grow a Business, Marketing, My Startup Success, Promote My Business, Small Business, Start A Business

AwardThere are still some fabulous prizes and free public relations opportunities available for all of you out there who are already in business or are contemplating the idea of starting a business.

Here’s a cool one passed along to me by Barbara Weltman, respected corporate speaker, contributing editor, author and advocate for small business owners. The DailyCandy Contest is rewarding three of its contest’s winners with $10,000, a trip to NYC, a write-up by DailyCandy editors and a day at DailyCandy Academy. Wow! PR and cash all in one prize! The deadline is Sept. 6. All you have to do is tell your business’ story. An entry form and more details are available at DailyCandy’s Start Small Go Big Contest.

Check out these contests as well - provided by Small Business Trends:

  • The Stevie Awards for Women in Business. All women business owners, entrepreneurs and executives are eligible to run worldwide. Request an entry kit by clicking here. Enter by Aug. 31.
  • 2010 Leading Moms in Business. Startup Nation ranks the top 200 mompreneurs across America as chosen by popular vote. Enter by Aug. 31 by visiting the Startup Nation’s website.
  • Vistaprint Make an Impression Contest. Share your stories on how you charm your customers with Vistaprint and enter to win a customized marketing campaign – courtesy of their in-house creative experts as well as a $600 gift certificate to HP. The prize package is valued at $10,000! Enter by Sept. 4. Just visit Vistaprint’s Make an Impression Contest website to enter.
  • New Ideas Contest. Attention all of you individuals out there who are just bursting with innovative ideas. This contest is designed especially for you. The grand prize winner will take home $5,000 of seed money for his or her business idea, a scholarship to a FastTrac entrepreneurial training program, tickets to attend the Small Business Innovation Summit and Expo AND a Dream Team of Mentors to help bring your idea to fruition. Enter by Sept. 20. And the best part? All they want is the idea – no business plans, no prototype – just the idea. Enter the New Ideas SC Contest here.

Have you won any contests for small business owners? Tell us about it!

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Does Formation Location Matter to Your Business? Ask LeBron James

Posted on July 9th, 2010 by John L. Duoba
Category: My Startup Success, Small Business, Start A Business, Taxes

lebronjamesLet’s say you have a sure-fire idea for a business. It is guaranteed to work. You have everything lined up, and you can see it will be profitable right away and over time. It is not a matter of will you have success, but how much and how will you manage it? But first, you must decide where to launch the business, and how local factors may impact it.

Of course, I’m talking about NBA basketball star LeBron James’ decision to leave Cleveland for Miami. (What else could it be?)

According to some published reports, one of the factors used by Miami Heat management to lure James (besides his two big-star free-agent friends) was the fact that Florida has no state income tax, while Ohio has a 6 percent rate. James could have secured a bigger contract had he stayed in Cleveland, but apparently he and his team did the math – just like any small business owner must do when launching a new enterprise.

Sure, as it should be, the primary considerations were the organization, the co-workers, the path for professional growth (championships!), ancillary opportunities for new revenue (endorsements!), etc. – which sound pretty typical for a startup company. But the cost, tax and regulatory environments are other factors to be considered, because of the impact to the bottom line.

James is likely to  earn $100 million in endorsements and $100 million in basketball salary over the next five years. Half of the salary will be earned in Florida (with no state income tax) and half will be earned at road games in other NBA cities (subject to local and state income taxes). The endorsement money will all be earned in Florida.

So with $150 million in earnings for his new startup business venture located in Miami, James will pocket an extra $9 million in tax savings by leaving Ohio. This doesn’t even consider the enhanced future endorsement opportunities for moving to a more high-profile market (and the further tax savings).

The same principles hold true for any small business owner. Let’s take the annual owners’ salary down to a fraction, say $200,000. The difference in state income tax rates results in $12,000 a year in extra money. Depending on the house, that money could go a long way toward covering a new mortgage after the move. Or it could be the difference between profit or loss, keeping or letting an employee go. After all, the margins in small business are not quite as forgivable as in LeBron James’s world.

An illustration of this impact also can be found at Business Owner’s Toolkit, where an infographic lists the best and worst states for starting a new business, based on a number of local factors, including state income tax. As it turns out, Florida is in the top five.

We’re not recommending this be the deciding factor in starting a business - there are too many other influences that are more important. But it’s hard to ignore.

Just ask LeBron James.

About the author

John L. Duoba is publisher/managing editor of the small business resource Business Owner’s Toolkit and is eagerly awaiting any maximum contract offer from any state, regardless of tax rates.

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Entrepreneurship in a Double-Dip Recessionary Environment

Posted on July 1st, 2010 by Kevin Flood
Category: Angel Investors, Financial Services, Finding Money to Start a Business, My Startup Success, Start A Business, Work For Myself

standoutMany entrepreneurs and companies are now mumbling about the prospect of a double-dip recession. I am not absolutely sure we are receding back to the late ‘08 and ‘09 economy or if we are experiencing the “new normal economic reality.” Certainly, the stock market got way ahead of itself in terms of valuation, the European debt crisis made us aware that Europe was worse off than the U.S. and has curbed our enthusiasm for risk and investment, jobs are not being created at a rate that equals the new people coming into the job market and “under employment” is now a way of life with people taking jobs below their skill level and their pre-recession salaries, companies are maintaining profitability at the expense of hiring and real customer growth, the gulf oil spill is bringing us all down.

What we appear to be experiencing is a new normal economic reality where growth, salaries, jobs, opportunity and available investment capital will be in short supply. So how does an entrepreneur succeed in an environment like this? Is there a way to take advantage and to thrive in this new economic reality?

I wrote a blog entitled, “Managing Startups in a Recession” (http://big.ly/ddrecession) in late ‘08. I went back and read and re-read this blog to see if I had any new insights and if things had changed. Certainly the points I addressed are still valid, and I suggest you take a look at this blog. However, the last year and a half have given us some new hard evidence on how to survive and flourish in this brave new world.

Entrepreneurs-By-Necessity - This is a new phrase being coined in the San Francisco Bay area acknowledging the fact that there is little job growth and the actual amount of money being paid to employees (especially if you consider the hours salaried employees are putting in) is significantly less than what was being paid prior to the recession. This means that an individual’s only choice may be to start his or her own business if he or she wants to actually make money and have an opportunity to achieve personal wealth. So expect to see more entrepreneurship and not less over the coming years. Ironically, this trend will create its own opportunities for entrepreneurs. For example, there are special entrepreneur office sharing facilities popping up all over San Francisco catering to these entrepreneurs.

The Absence Of Institutional Capital - The absence of working capital provided by institutions or even Angel Investors is going to continue. There is not going to be much capital available for early stage startups requiring startups to self fund their companies. This has a number of repercussions that we will discuss later in the blog. The basic take-away from this is – do not expect an institutional investor to come along on a white horse with working capital. If an investor does, it will most likely come at a time when you actually do not need the cash. Also, watch out for the percentage equity that investors want to take and the time expectation for cash-out. They will have a short time horizon for making money.

If I Do Not Have Money To Fund My Company What Do I Do? – I have stated this before in previous blogs, and I will state it again. Look for investments from another business that can take advantage of what you are doing or making. I funded my first startup like this. In fact, I received three tranches of funding from three separate companies and finally sold my company to one of them. Forget about Angel and institutional investors. Find a company(s) that can take advantage of what you’re doing and see if they will invest.

A Long Runway - It is going to take you a lot longer than you would like before your company gets going and eventually becomes profitable. Little working capital translates into little resource to build and market your product and service. Be prepared for a very long road from a business and personal perspective.

Economic Pain Points Are Opportunities – This new economy is going to be painful for individuals and companies; forcing them to look at many ways to save on expenses and hire people temporarily. People are constantly going to be looking for jobs and opportunities, and companies will be laying off and firing people at will. Believe it or not, this situation creates opportunity. These are great areas for entrepreneurs to focus on. For instance, the current job board systems fall short in providing individual jobseekers with little feedback on how many people looked at their resumes, what kind of companies and people looked at it, and what they did or did not like about it.There is no scoring system based on skills and backgrounds and what scoring combinations are having the most success. This is just one simple example of an opportunity. There are many more areas where entrepreneurs can make a real difference.

Too Many Ideas Not Enough Execution – Entrepreneurs are very creative. However, sometimes they put too much emphasis on ideas and not enough on what it takes to execute on these ideas. Building a business around an idea is difficult. Pick your battles and focus on easy problems to solve. This will get you to market faster and keep the expenses down.

Don’t Hesitate Too Long To Change The Approach – If it is not working, fix it or move on. Do not spend too much time with a broken business model, service or product. I have seen many entrepreneurs stuck in this no-man’s land. There is no time and money for this anymore; move on.

Keep It Really Simple – New businesses these days have to be really simple without capital or time traps that require an abundance of full-time resources to launch and retain. Your first launch should be an extremely simple business model, easy to understand and low cost to maintain and grow.

Conclusion - The recession economy is here to stay and is now the new economic reality. Embrace it, and take advantage of the new opportunities that it creates. Forget about institutional investing. For now you are going to have to go it alone or hook it up with another company that sees value in what you are doing. This is actually a good thing because you will be lean and mean, and partnered with a company that understands you, your product and your market.

About the Author

Kevin Flood is an entrepreneur who has started a number of companies resulting in the IPO and sale of many of these companies. He has built and worked with companies on several continents and in several different industries. Kevin frequently blogs about startups on his blog – kevinflood.blogspot.com.

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The “Upside” of the Recession?

Posted on October 2nd, 2009 by Heather
Category: Business Inspiration, Launch My Business, My Startup Success, Work For Myself

Really? Is it possible that there is an upside to this recession?

For many entrepreneurs, that’s exactly the case. The start up costs for opening a business right now are the lowest they have been in years. Take for instance Wendy Buckley. I just read a great story about her here.

A lot of people are very worried about job security right now, and some rightly so. But after reading this, it really does show that opportunities abound for entrepreneurs even in this kind of economical environment.

Take special note of Buckley’s observation about the availability of contractors and vendors right now. Talk about a great time to be able to negotiate killer prices! As a small start up, there are many, many companies out there that want your business and are more than willing to cut a pretty nice deal to get it.

There may be opportunities to actually buy property for your business instead of leasing – thus potentially gaining an additional asset right off the bat. This usually takes years in a more robust economic situation.

And it’s relatively easy and inexpensive to incorporate a business online these days too. That way you will be protecting your personal assets in case something does happen. With all the other free business tools and resources you can find on the internet, Wendy just might be on to something.

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