Growth Strategies

3 Gems of Lessons on Innovation from Steve Jobs

How was he able to turn 4 businesses into mega successes in 1 lifetime when most people can’t convert 1?

Innovation – the most overused word in the corporate world today. Ask managers what the organization needs most and they will say ‘innovation and creativity’. And they are right! But when it’s time to walk the talk… well, you know what follows as well as me.

The name that springs to mind most when ‘innovation’ is mentioned is Steve Jobs.

How was Steve Jobs able to accomplish so much in one lifetime? How was he able to turn 4 businesses into mega successes in 1 lifetime when most people can’t convert 1? Well, apart from being a brainiac (his IQ was claimed to be in the high 160s) he had an exalted perspective of things. Here are 3 gems of lessons which we can learn on innovation from him.

1. “INVEST IN PEOPLE, NOT PROCESSES.”

This was Steve Jobs’ number 1 mantra. He believed in hiring the best and most driven people; people who wanted to achieve more than personal success. Jobs “saw over the horizon” and hired inspired people who could turn his dreams into realities. But he was never for processes in innovation. “You cannot make a process to innovate”, he said. It simply defeats the purpose. So instead of making an innovation process, hire the right people (however long may take) and give them free rein.

2. “SET AN ARDUOUS GOAL FOR YOUR TEAM, AND BACK THEM TO ACHIEVE IT”

The Macintosh was about to be introduced to dealers. With less than a week to go for disk duplication, Steve wanted the software to be final and not the proposed ‘demo’ version. The production team did not believe it was possible. But Steve didn’t react with anger. Instead, he told them how great they were and how Apple was counting on them. He set an audacious goal and encouraged them to achieve it. 15 minutes before the Macintosh was introduced, his team met the deadline.

Push your people to achieve 5-10% improvement and they will just work longer hours. But demand a 25% improvement, back your team to achieve it and watch. You will initially hear outcries of rebellion, but then your team will implement innovative thinking and bring about radical improvement.

3. “LOOK BEYOND YOUR FIELD FOR INSPIRATION”

Ever wondered why desktop PCs are vertically assembled instead of horizontally? It was because Steve wanted the Macintosh not to occupy more space than a telephone directory. It called for innovative thinking on part of his production team who assembled the PC vertically, and the competition soon followed suit. Magsafe, the magnetic AC adapter that plugs an Apple laptop into a wall socket, was inspired by Japanese rice cookers being sold in Walmart. Laptop chargers drew inspiration from rice cookers! Can you believe it?

Noted author Edward de Bono writes: “Your mind creates patterns out of its surroundings. Once patterns are formed, it is possible to recognize and use them. These patterns then become firmly established in the mind.” To break free, expose yourself to varied fields. Attend seminars, meet different people and most importantly, keep an open mind. The results may not be visible immediately, but when you ‘connect the dots’, you will be glad.

3 lessons which are simple to comprehend but difficult to implement! I still have a long way to go in getting anywhere near Steve Jobs in applying these concepts. But in whatever small measures they have been implemented, they have provided phenomenal results, making me appear like a rock star! Imagine what we will become if these lessons become a part of our daily lives!

Do share your views and additional points on innovation in the comments section.

This article was originally published in bizztor.com

Image credit: qz.com

How successful people are more productive

Sharing Infographics with key things on “how successful people work less and get more work done”.

People who work as much as 70 hours (or more) per week actually get the same amount done as people who work 55 hours.

Sharing infographics with key things on “how successful people work less and get more work done”.

Image credit: www.lifehack.org

How to raise money for your startup?

Raising money is simple but not easy. This guide illustrates one way how to raise money for a startup, especially for first-time entrepreneurs.

Raising money is simple but not easy. This guide illustrates one way how to raise money for a startup, especially for first-time entrepreneurs. We have seen quite a few entrepreneurs go from nothing to a funded company. This infographic is a generalization of their experience. Let us know if you have any questions about it in the comments.

Few More Tips How To Raise Money

When it comes to funding, there is one thing that can increase your chance of getting funded astronomically – traction. Yet, founders often struggle to get traction and hope that investor money will help them get it. This problem can be solved if you start lean, test your product and and gather meaningful feedback from your customers.

Use that feedback to modify your product. After you get traction, you are certain to get interest from investors. How much traction? Compare yourself to your competitors at the moment they got funding and use that as a benchmark.

Preventing people from raising money successfully, the other myth is that you can raise money before you build anything. Even if you are not an engineer, you can build a prototype of your product. You can do it in WordPress, another content management system (CMS), you can learn to code the basics. If you do not go out of your way to build your own product, why should other people risk in joining you?

Finally, when you are going to raise money, have the investors feel good about what you are going to spend their money on – not marketing, not development, not business development, but scaling.

This post was written by Anna Vital and originally published in Funders And Founders.

Image credit: www.naeyc.org

How to write a Business Plan: A step-by-step template

Writing a business plan doesn’t have to be an intimidating task, but it does require foresight, honesty, and plenty of research. Here is an outline and some smart tips to help get you started.

Creating a business plan is the first and most crucial step to building a successful company.

A business plan is important because it communicates to everyone involved in the organization what the goals are, and how management plans to get there.

The parts that make up a business plan are straightforward. Here’s a step-by-step breakdown to get you started with your business plan, along with a few expert tips on how to attract investors.

1. Describe your startup

The first step is to simply describe the business you want to build. During the process, it’s important to be honest about the obstacles you’re likely to face.

Starbird suggests including a breakdown of the target market and customers. You should also be clear about the factors offering a competitive edge.

Be careful not to have any blinders on when it comes to your product or service. People spend a lot of time focusing on the features that make them unique without taking the time to translate that into a value proposition.

Do diligent research on what your market is, and how to communicate with customers accordingly. The most successful investors are looking for an idea that is going to have a clear and understandable market potential.

2. Have a thorough plan: Document all aspects of your company

As the founder, you need to be concerned about all parts of the plan. That means including any licensing agreements, or your location strategy, for example.

It’s especially important to know and understand your numbers. The number one reason firms go under is inadequate cash flow. If you don’t know what’s going on in that area, you’re going to be in big trouble.

3. Make sure the plan is modifiable for different audiences

Different sections of your business plan will be more important depending on your audience. Investors, for instance, will want to see your financial projections, whereas employees might be more concerned with the organizational structure of your company.

The SBA recommends that you project that status of your company for between three and five years into the future, though it’s a good idea to outline your annual goals, too. Keep in mind that the further ahead you look, the less accurate your conclusions are going to be.

A five-year horizon is fine, but a thorough business plan looks beyond that [up to 10 years], with the recognition that some of the forecasts would be of decreasing accuracy.

4. Include details to put you over the edge

When writing the market analysis, it’s a good idea to include any information about external growth trends, and why one company might have the market share. Pricing power – meaning how consumer demand would be affected if your company shifted its prices – is one detail that often gets excluded from business plans, but which can help put you over the edge.

It’s also important to keep your expectations realistic and honest: The biggest mistake entrepreneurs can make when writing a business plan is to be overly optimistic with sales and future cost estimates.

5. Remember why you care

Your business plan should reflect not only your financial goals, but also your values, and those of the community you’re working to build.

How entrepreneurs can avoid million-dollar mistakes

When joining or building a company, it is imperative that you understand the laws around equity.

When joining or building a company, it is imperative that you understand the laws around equity. As an employee, not understanding how stock options work may leave you with expensive tax bills for worthless stock. As a founder, doling out equity too liberally will leave you with a sliver of the company by the time you exit through an IPO or acquisition.

Stock options 101

Typically, when you get hired at a large firm you are given access to an HR department that explains your 401k package options. You may even receive a workshop to help you learn about the various investment strategies and mutual fund options. This is not always the case when working for a startup.

Perhaps you’ve heard stories about employees who did not understand their options and ended up with a sizable tax bill for stock that was worth a fraction of the intended price. When it comes to stock options, timing and taxation are everything.

When you receive stock options, your shares will vest over a set time schedule. This is called your vesting schedule. The shares that are vested are available to you and those that are not vested are considered restricted shares. The company has the right to buy restricted shares back from you since you didn’t earn them.

At any time you can exercise your options to convert them into shares, yielding a mix of both common shares and restricted shares. Entrepreneurs exercise early to benefit from the small variance between the strike price and the current market price. This is why timing is important. You will be taxed at conversion, so convert when with the lowest possible tax event.

Exercise if you believe the stock will appreciate in value. Be certain to research your company’s industry to understand positioning. Is this company Uber or Sidecar? Facebook or MySpace? Exercising shares of worthless stock will leave you with a net loss. Do your homework to understand the company’s outlook.

Taxation and the IRS

Of course, there is always paperwork. You must understand the proper documents – Section 83 (b) election — that are filed in each event to remain in compliance.

Section 83(b) election is a letter you send to the IRS letting them know you’d like to be taxed on your equity, even shares of restricted stock, on the date the equity was granted to you rather than on the date the equity vests. Failing to file this one document will cause taxation at the vesting date, not the grant date.

Tip: Always consult an attorney when you receive equity or stock options. Your specific taxation will vary based on your country of origin.

Equity as an infinite currency

Another common mistake that founders make is giving away too much equity and to the wrong people. It’s a common misperception that equity is free and limitless. Actually, all shares have value and limits.

When deciding whom to give equity and stock options, ask yourself this question: Is there value creation and duration? In other words, is this person creating value and for a long period of time?

Example: A branding team creates a logo and graphics during a two-week period. This type of service should be paid in cash.

Example: A developer signs on to build your prototype and your future platform. This type of service should be paid in equity.

Whether you’re a founder or early employee, your equity and stock options should be handled with care. Treat them like gold. In some scenarios, they are worth more than gold.

This article was originally published in Entrepreneur.com

Image credit: encrop.net

When is the best time to raise money for your startup?

Before you read this, you should be aware that I am an entrepreneur who has never raised money from VCs. Two of my three companies were bought while we were still closely held. In the third, we were unable to raise money and eventually got acquired before we could raise institutional money. Therefore, if you are looking for advice on how and when to raise money from VCs, I am less qualified than hundreds, perhaps thousands of entrepreneurs who have raised funds from VCs in India.

That said, there were times in my entrepreneurial career when I asked my mentors when is the best time to raise money. Some said that the best time is when you do not need it, and that made a lot of sense at the time. On the other hand, some said I should not raise money unless I needed it, and that made sense as well. However, some of the people who gave me the first advice were the same as the ones who gave me the second advice. And both times, they made sense. There are times I have said the former to an entrepreneur seeking my advice and the latter to another entrepreneur, or to the same one at a different time.

How can two exactly opposite things make sense? Welcome to the world of entrepreneurship. Here’s how!
We are currently in a time when actively raising money is going to be perceived as a sign of weakness. Liquidity is low, markets are volatile, there is a backlash of the hyper-funding of 2014-15, the pendulum is swinging the other way and the momentum is in the opposite direction. It is taking longer to raise money and you have to part with a larger portion of your company for the same money as the same time last year. Trends suggest it might get worse. If you know money is not as cheap anymore, why would you expose yourself to that environment unless you absolutely need the money? And if it is true that you do, investors would obviously have leverage over you and are likely to dictate terms. Therefore, do not raise money unless you really need it. If you need it, force yourself to come up with a plan in which you don’t. And if you still need it, be prepared to dilute.

When markets were up, up and away in 2014-15, there was a lot of new money and liquidity floating around. Tech companies were getting listed, stocks were flying, and money from entrepreneurs and investors was flowing back into the ecosystem. Investments were chasing entrepreneurs. Money was chasing ideas. Lesser so now. It is more likely that investors over-allocated last year and are waiting to sell off some shares at the right price, than investors who are still chasing deals with a fear of missing out on the next big thing. If you are one of the rare startups that is on fire right now and you are being called upon by multiple investors competing to invest in you, it might be worth raising money at your own terms. Because if you do, it would be a bigger competitive advantage than the same time last year. Besides, today’s non-event of raising money quickly would mean you are over-achieving the target and saving time and effort of a planned event in the future. Therefore, raise money when you do not need it.

Hopefully, this context helps understand how two exactly opposite things can both make sense.

Most entrepreneurs reading this would fall into neither category above. Most startups will neither be desperate to raise money nor will they have a bidding war escalating in their parking lot. Then what should their fundraising strategy be? For what it’s worth, my answer is don’t raise money right now. Build your product, build your team, build your user base, build you revenue pipeline, build whatever it is that is most important to your startup right now.

Last year was about putting your mouth where the money was. This is the year of putting your money where your mouth is.

Author: Kashyap Deorah

Kashyap Deorah is the author of recently released book – The Golden Tap, the inside story of hyper-funded Indian startups. Kashyap is a serial entrepreneur who has spent the last 15 years in India and Silicon Valley. During this time he has started and sold three companies. He is an angel investor in over 20 companies in India and Silicon Valley. Deorah founded Chalo, a payments app which was acquired by OpenTable in 2013. Prior to that he founded Chaupaati, a phone commerce marketplace, sold to Future Group in 2010.

The 3 worst negotiation mistakes young entrepreneurs make, and how to avoid them

Here are the top three reasons you’re failing as a negotiator, and how to overcome them.

When you’re an entrepreneur, almost everything is a negotiation. You negotiate with everyone from clients to partners and even employees sometimes. Negotiation is a fundamental part of the entrepreneurial experience. Unfortunately, many entrepreneurs fall victim to mistakes that make them incredibly poor negotiators.

Fortunately, it’s never too late to identify these mistakes and change direction. Here are the top three reasons you’re failing as a negotiator, and how to overcome them.

You’re greedy

Nothing can derail a negotiation more quickly than greed. If one party pushes for too much or is too aggressive, the relationships between those involved grows sour, and the negotiation can go south. There’s no such thing as “not personal, strictly business.” All business is personal, and emotions run high. It’s only natural for people to overestimate the value of their product, position, or contribution in a negotiation. It takes a special skill to recognize greedy behavior and stop it before it gets out of control.

This style of negotiation can be difficult to master, because no matter how hard you try, emotions inevitably influence your actions. The temptation to squeeze a partner for a better deal, or emerge “victorious” in the negotiation can be strong, and it takes a solid sense of self-awareness and humility to resist.

You don’t understand the type of negotiation you’re conducting

There are two types of negotiations that leaders encounter on a frequent basis. The first is what described as the asset negotiation, which is generally a one-time event resulting in clear winners and losers. A good example of this type of negotiation is the sale of an asset like a piece of equipment. In this situation, the seller wants to maximize the price paid at all costs and doesn’t really care about the long-term implications of the deal. After all, once the deal is done you generally won’t have to work with the buyer again. The negotiators are incentivized to view the situation as a zero-sum game where someone wins and someone loses, which naturally leads to a more aggressive exchange.

The second type of negotiation – when both parties involved have to maintain a working relationship long after the negotiation ends — is more complex and thus, involves a more sophisticated approach. It’s important to remember that intangibles, such as trust, respect and admiration have tremendous value in business and must be factored into the negotiation strategy and defended at all costs.

You gamble with things you can’t afford to lose

When you play hardball with another party, you must always recognize that they can simply walk away. This can be tricky when it comes to strategic relationships, because there’s often significant cost and pain associated with a potential dissolution. However, there is a point in most negotiations where the pain of dissolution is preferable to an inequitable outcome. If a relationship is truly central to your success as an organization, you must temper your desire to play hardball or risk losing everything.

When it comes to negotiation, entrepreneurs are often their own worst enemies. Ego-driven mistakes take their toll and make the process more painful than it has to be. Remember that successful negotiations require three things. First, there is simply no room for greedy behavior in successful negotiations. Second, both parties must recognize the nature of the the negotiation itself—if you have to work together going forward, the negotiation cannot be a zero-sum game. And finally, maintaining perspective on what you are and aren’t willing to part with in the negotiation is invaluable. All too often people get too comfortable in a relationship and overplay their hand in negotiations. When this happens, they run the risk of losing everything, and that is the worst outcome of all.

This article was originally published in Forbes

Image credit: www.kbic.com

Entrepreneurs: Fight procrastination and do the stuff right now

For some of us, procrastination isn’t an occasional kind of thing. It locks us in a vise grip and comes to define the way we approach everything.

“Never leave that till tomorrow which you can do today,” said Benjamin Franklin.

Pretty good advice, especially considering it comes from a guy who was an absolute whiz at productivity (Franklin was somehow an author, printer, politician, postmaster, scientist, inventor, civic activist, statesman and diplomat).

Recognizing the wisdom in the aphorism, however, won’t stop most of us from putting off the “no-more-delaying-ever” regiment until tomorrow. (Which isn’t always so terrible: We’re not robots, after all, and leaving a project unfinished so we can hit the beach every once in a while keeps us human.)

But, for some of us, procrastination isn’t an occasional kind of thing. Instead, it locks us in a vise grip and comes to define the way we approach everything. If you’re like this, you know the exhausting ritual well: voluntarily delay a necessary task until the panic about meeting a deadline finally outweighs inaction. Not only can it send you into an unhealthy and crippling shame-spiral, it’s also one giant productivity killer.

Why are some of us more susceptible than others? Like most personality traits, a recent study published in Psychological Science finds, it has a lot to do with our genes.

Researchers at the University of Colorado at Boulder surveyed 181 pairs of identical twins and 166 pairs of fraternal twins about their work habits. Compared to fraternal twin pairs, identical twins reported stronger behavioral similarities regarding their ability to set and meet goals as well as their tendency to act impulsively. Based on this, the researchers concluded that procrastination is, at least in part, heritable and has a strong genetic overlap with impulsivity.

Impulsivity probably had an evolutionary advantage, Daniel Gustavson, the study’s lead author, says. For our ancestors – struggling to survive in a dangerous world, fast and decisive decision making was more important than long-term planning. Procrastination either evolved at the same time as impulsivity, or “evolved as a byproduct of it,” he says (when we’re impulsive, we become distracted from — and thereby put off — long-term goals). Unfortunately, circa now, where both goal management and the ability to delay gratification is rewarded, these two intertwined genetic traits hurt rather than harm.

But before you start blaming your penchant for leaving everything to the last minute on mom and dad, remember: most of our personality traits are, at least in part, heritable. The last thing the Gustavson wants is for people to read about his study and conclude: Welp, guess that means I’ll never change. “When people see big genetic influences on a trait, they often think they can’t do anything about it,” he says. “And that’s not true. Just because something is heritable doesn’t mean it can’t be changed.”

Tim Pychyl, a psychology professor at Carleton University in Ontario, Canada, and the author of ‘Solving the Procrastination Puzzle’, agrees.

The way he sees it, our limbic system (the ancient, reptilian part of our brain which just wants to feel good now) is in constant battle with the prefrontal cortex (a section that developed later in our evolution, responsible for executive functions and impulse control). Inevitably, the limbic system sometimes wins out. “It’s human nature to procrastinate,” he says. “You have to realize that you’ll screw up sometimes but you can change if you really want to.”

For all of us wrestling with genes that scream, “delay, delay, delay,” Pychyl shares a few strategies to help the prefrontal cortex emerge victorious.

Understand the true definition of procrastination.
This is super important. There are many forms of delay that are beneficial – life, of course, is a constant succession of tradeoffs. Often, you need to hold off on a project because something more pressing has come up. That’s not called procrastination, though. That’s called making an informed decision.
Procrastination on the other hand, says Pychyl, is never positive. “Anyone who thinks it has an upside is messing with the definition.”

Some of us may develop a warped, protective relationship with our tendency to procrastinate (see tip No. 2), but while there are many reasons why we do it, “none of them are healthy,” Pychyl says. “There’s no virtue in it.”

Stop making excuses.

This is closely related to Pychyl’s previous point. Procrastination is a voluntary delay of a beneficial intended act, and therefore causes uncomfortable dissonance, which we attempt to ease with a string of excuses.
The most common: I work better under pressure. “That’s nonsense!” Pychyl says.

“Everyone makes more mistakes under pressure – that’s been shown again and again. What you’re really saying is ‘the only thing that can motivate me to work is a huge amount of time pressure’…and there’s certain pathos in that.”

While procrastination can cause individuals to hyper focus, it’s simply because their backs are against the wall. The same amount of attention to detail – flow, as Pychyl calls it – is possible even when you aren’t under a time crunch. Learning how to voluntarily achieve a flow state requires time and effort but it’s the secret to productivity. Procrastinators, he says, need to realize that it is possible to concentrate without the motivation of deadline-induced panic. It just takes practice.

Minimize distractions and set strict deadlines.

If you have every distraction available at the push of a button, you’re more likely to check Facebook, check your emails, and suddenly three hours have gone by. Distractions, of course, decrease productivity for everyone, but for the chronic procrastinator, they’re real time-suckers. It’s better to eliminate as many of them as possible (be that blocking Facebook, deleting Solitaire off your desktop, whatever you have to do).

In addition, set a strict schedule for yourself. “Autonomy is good for non-procrastinators, put procrastinators need short, concrete deadlines,” Pychyl says. For managers dealing with procrastinating employees, Pychyl recommends having them articulate their goals in concrete terms. Specific details – rather than a vague “I’m working on X project – helps hold procrastinators accountable. Have them make implementation intentions rather than goal intentions” he recommends.

Don’t let your inner 6-year-old dictate your actions.

“I don’t know where we learn this, but somehow we internalize the notion that our motivational state has to match the task at hand,” says Pychyl. “We don’t feel like doing something, and we think that’s a reason!”
He calls this logic 6-year-old thinking. In reality, “For many of important tasks, if not most of them, getting started has nothing to do with how we feel.”

Still, we often dismiss the notion of getting started today with the perpetually hopeful “I’ll feel more like it tomorrow.” We almost never do, though, and so the task gets pushed off again. Why, then, do we persist in maintaining the delusion that a repellent task will be magically rendered less aversive in a mere 24 hours?

We tend to predict our future feelings based on present feelings, Pychyl explains. (Think about shopping for groceries on an empty stomach versus after you’ve just eaten a huge meal – most likely, your cart will be more crowded, even though rationally you know the week ahead requires the same amount of food). “When you decide to procrastinate, you relieve some stress which makes you feel good. So when you predict how you’re going to feel tomorrow, you base your prediction on your current mood.”

In addition, brain scans have shown that we tend to think about our future self as we would think about a stranger (known as temporal discounting), which explains why we often overestimate our ability/desire to accomplish an unappealing but necessary task three weeks from now.

The biggest myth that procrastinators need to dissolve if they want to break the delay cycle? “I’ll do it tomorrow,” says Pychyl. “Once you realize that this is an avoidant coping strategy, you’re on your way.”

Image Credit: incolors.club

Three predictors of startup success

You may think that you are absolutely prepared to launch your startup, but the truth is that you are not.

Entrepreneurship is a path of constant learning and many startup founders learn the hard way that their expectations have almost nothing to do with the reality. You may think that you are absolutely prepared to launch your startup, but the truth is that you are not. First time entrepreneurs may know a lot, but the true teacher of business is the experience.

During his TEDxLSE Talk, Tak Lo, who has angel invested, founded and mentored over 50 early stage startups, shared with the audience the top three predictors of startup success. Find out what are these three predictors from the video below and don’t hesitate to share your thoughts on the subject in the comment section.

Image credit: katielendel.com

This is why you need a co-founder for your startup

There are many things that you should consider before you launch your startup, but choosing should or should not embrace the idea of starting with a co-founder (in some cases even co-founders) is one of the essential decisions you must take.

As we like to check the examples set by successful companies and the choices their founders made, we see that there is no just one way to success, but there are certain similarities. Take a look at the tech giants like Microsoft, Apple, Oracle, Google, Facebook, Twitter – all of them started with two+ co-founders. It seems that co-founders are important, especially when we talk about venture funded tech startups.

We will talk about why it is good decision to have a co-founder for your startup and here we will have a look over some interesting aspects on the matter.

Same goals

The co-founders have the same interests and as they share everything related to their startup, they will share also the work load and will achieve better time-management performance. You share the same goals with the co-founder and this is what makes you stronger when it comes to achieving the set goals.

Two is better than one

Definitely two heads think better than one and this is great advantage because as a startup owner you need to take important decisions very fast, to monitor your business in every level of its existence and at the same time to work on the improvement of the business.

Trust

Any type of partnership is built on trust. The co-founders of the startup have the same interest in making the company successful. It is important to know that there is someone to watch your back and to share the fascinating, but otherwise lonely experience of the entrepreneurship. In a business world, ruled by sharks, it is good to know that there are people you can fully trust.

Team building

Your co-founder and you are the foundation of one stable team and your connection will be the example for all your startup employees. We all know that venture capitalists invest in strong, professional and serious teams. With the right co-founder you are one step closer to winning funding for your business.

Support

The pressure can be unbearable and the stress often takes control over the positive mindset of entrepreneurs. To achieve better balance and concentration in the workplace, having a co-founder is the most secure way to find your focus back and to get back on track.

Choosing to go solo or with a co-founder is a personal decision of the entrepreneur and depends on different factors – from personal qualities to the essence of the industry.

This article was originally published in startupist.com

Image credit: www.businessinsider.com.au

7 ways to build a successful startup revenue model

A well thought out and credible revenue model connects the dots for potential investors.

Developing a revenue model for your business is perhaps the best step way to get and keep your startup financially healthy. A well thought out and credible revenue model connects the dots for potential investors.

How do you go about creating a solid revenue model? First, you need to figure out what revenues you can expect to generate. Even if you’re still at the pre-revenue stage, you should build a financial model that includes your revenue estimates. Financial forecasting can be done in one of two ways: projecting your numbers from the top-down or building your projections from the bottom-up.

Top-down forecasting definitely won’t generate realistic figures, but is still important to show investors when you are raising money. Top down forecasting starts with estimating total market size and then gauging the size of your target niche within that market. From there, you estimate the share you will capture at a ballpark figure for your revenue potential.

The better approach is to do a bottom-up projection. To do this, first decide which indicators will have the greatest impact on your revenue over the next year or so. Next, figure out how much you need to spend to reach your revenue and development targets and what your key revenue drivers are. This will give you a sense of how fast you can scale incorporating levels of staffing and upcoming milestones.

Here are the seven key considerations for creating an effective model:

1. Find the right fit for startup and expertise.

You may have a strong technology model with business-savvy engineers on staff. You may also know what research and development stage you are in and where you are heading. Use that knowledge to determine which revenue model works best for you.

Your revenue projections might need to be linear or exponential depending on your type of business. You might need to build to scale to prove your revenue model or first create a smaller model to reduce capital risk and then scale. The best model is the one that supports your development efforts.

2. Create a framework for expressing value

What differentiates your products and services from the competition? Your revenue model should communicate your unique value proposition. For instance, offering a distinctive service that people will sign up for is a unique a selling point.

3. Build a revenue model that helps you find the right investors.

You can strengthen your pitch by making development choices that show investors that you are worth investing in. Be strategic: focus your attention on finding investors who are a good cultural fit and will be in it for the long haul. Pick investors who have the patience to wait in order to realize long-term returns.

4. Limit projections to a reasonable timeframe.

Investors will ask you when they can expect their investment to start paying off. They will want to know what your short and long-term milestones are. They will also want to know when you expect to become cash flow positive.

It’s tempting to project revenues many years out, but much like the weather: go too far out and your predictions become unreliable. Keep your projections to a 12 to 24 month timeframe.

5. Your revenue model is not static.

Over time, your model is likely to change even if your general approach remains the same. And the choice of model is up to you. As a service-based company, for instance, you could offer subscriptions or on a one to one basis. Don’t paint yourself into a corner by sticking to just one setup. If the model no longer reflects your business realities, adjust it and update your forecast accordingly.

6. Determine the critical variables that drive your business.

The variables that matter most for your company will change along with the stage of your business. But regardless of stage, look for the variables that most impact your revenue. Make sure that you define discrete variables so you can address them individually. Assess the inputs and research baseline values for each variable so you can track performance over time. A great way to isolate variables and view how each affect revenue is to chart them out on a sensitivity graph. This will show how changes affect them and resulting impact on your revenue.

7. Mitigate for variables.

Risk management starts with identifying and understanding your key risk factors so you can address them. Don’t try to sweep things under the rug — investors will discover your secrets anyway. Mitigating for variables increases transparency, builds confidence, and enhances understanding — both for you and for your investors.

There are lots of options when it comes to revenue models. But not choosing isn’t one of them. It’s a precondition for startup success.

Image credit: www.bothsidesofthetable.com

10 Motivation strategies for entrepreneurs

We asked around 75 entrepreneurs how they get their motivation back. Here are some of the most popular techniques.

Motivation is elusive. Some days we’re pounding the keyboard, brainstorming ideas, and jabbering on the phone well past dinner; others, we look at the clock only to discover that lunch is still two hours and four minutes away. Especially during the holiday season, it’s hard to stay motivated.

We asked around 75 entrepreneurs how they get their motivation back. Here are some of the most popular techniques.

1. Take a Break

Taking a break is an obvious fix, but effective. It clears your mind and can even increase your creativity: exposing yourself to new ideas can help you be more creative in your own field. And, of course, some people claim to have their best ideas in the shower, or when they’re not actively thinking about work.

In fact, the Pomodoro technique for productivity and time management revolves around breaks, which punctuate 25-minute intervals of focused work. The idea is that your thinking is elevated by short rests. Working nonstop, however, can bog down the brain:

“When I’m not feeling motivated I just stop working. Personally I can’t get anything done well if I’m feeling ‘out of it,’ says Well.io founder and CEO Arin Sarkissian. “I’ll go hang out with friends, play a game, meet up with other founders, etc. Anything but work – sometimes you just need a break.”

One common way to spend that break is exercising. “I go for a run, but everybody has their own tricks. I have a friend that used to do underground fight clubs. He is one of the most talented designers I know, and a complete wacko,” says BJ Fleming, a content specialist at Grubwithus.

You can also take a walk, watch a movie, or plan a mini-vacation. BestBuzz founder and CEO Carrie Layne rents a pontoon boat and reads a book in the middle of a lake, or heads to the casino for some poker. “You most likely work seven days a week, so don’t feel guilty about running off on a Tuesday afternoon,” she says.

And Fundable founder Wil Schroter turns to good old video games:

“I come home, tell my wife how I’m feeling, sit down at my computer, and play video games for three to four days straight without a break. My wife just puts food next to my left hand and leaves me alone until I reset. Is that weird? Yes. But boy it works every time.”

2. Think about Your Customers

One big difference between online businesses and brick-and-mortar stores is the customer interaction, and it affects motivation. While small business owners might see smiles and happy faces all day, entrepreneurs are (more often than not) staring at their computer screens.

But customers and users are so critical to a startup – they are the ones who benefit from what you create, and they keep you in business. So, many entrepreneurs turn their thoughts to their customers to get back their motivation. “When I lack motivation, I go straight to my store locator on my website! I remind myself of how many great companies believe in us and it fuels me to move forward and continue to grow the business!” says Christy Cook, the founder of TeachMy.

If you want something more tangible, take a look at customer reviews and feedback – or create a short survey to gather some. Anita Malik, CEO of BrideRush, even keeps a “kudos board” on the wall that includes reviews from brides and vendors. “It energizes our small team on slow or frustrating days,” she says.

3. Think about Your Team

If you forget why you’re doing this, your co-founders and employees might help remind you. Like your customers, they’re also benefitting from your work: they get exciting jobs and the chance to create something new.

As Julia Hartz, president and cofounder of Eventbrite, says, seeing the enthusiasm of your team can give you a boost. “It’s hard to lose motivation when I go into the office every day and see 200 Britelings. I spend a lot of time focused on supporting our Eventbrite culture, and that serves as a constant source of motivation for me.”

Remember, these are people who have chosen to follow you and your dreams – and if you don’t stay motivated and give it your all, you will be letting them down.

Also read: 65 of the best Time-Management tips that will work for you

“As a leader, motivation is essential because having it or lacking it is infectious,” says Christian Gurney, the CEO of Torsion Mobile. “I think of the team and how I am responsible to them to make each day worthwhile and rewarding.”

4. Get Social

Talking to other entrepreneurs can be reassuring when you’re feeling down. In particular, it helps you realize that the ups and downs of startup life are perfectly normal. “I typically grab a meal or cup of coffee with other entrepreneurs,” says Jacqueline Jensen, cofounder and COO of Ticket Cake. “It’s refreshing to hear I’m not alone in the mountain-and-valley terrain entrepreneurs tackle each day. After some time with the community, I usually discover I’m ready to dive back in.”

For Brent Coker of Webreep, this is one good reason to mentor young entrepreneurs – their bright attitude is infectious and untempered by the harsh realities of failure. “Intense passion is contagious – unfortunately it gets diminished as you get older,” he says.

5. Get organized

If motivation is the drive to accomplish something, obviously we can’t feel motivated to do things we think are impossible. So when work starts to feel impossible, you can lose your motivation. To get it back, get organized and convince yourself that you can do it.

“I make a list. Sounds simplistic, but it works every time,” says Malik of BrideRush. “I usually get unmotivated when I feel overwhelmed, which is nearly daily when running a startup! The simple ritual of making a list in order of priority gets my brain moving again. I feel like I’m on top of it all rather than drowning in the details.”

6. Do something new

A lack of motivation can also come from a feeling of boredom, and shaking up your routine may be just the ticket.

“Entrepreneurism is a drug,” says Craig Negoescu, CEO of NAKA Media. “When things get routine, or safe, or tedious, you begin to slip. So you need to challenge yourself, get out of your comfort zone, and do something new with your business. To paraphrase a most interesting man, ‘Stay risky, my friends.’ The adrenaline of a new challenge will wake you up, energize you, give you a victory or a failure to learn from. And it’s cheaper than coffee!”

Also read: 20 Must watch movies for all Aspiring Entrepreneurs

7. Take responsibility

Many people are drawn to entrepreneurship because of the independence. When motivation wanes, remembering that everything is on your shoulders – your actions will determine the success or failure of your startup – can be a motivator. Deadlines and penalities can motivate, after all, even though they are negative incentives.

“The greatest thing that keeps me motivated and focused as an entrepreneur is that no one is paying the bills for me. Being the one in my company that is responsible for sales, it’s up to me to keep the company growing,” says Brian Bosscher of Condo Control Central.

To light the fire even quicker, take a look at a few of your metrics. “The typical motivation is looking at your fixed cost compared to revenue coming in. That’s the quickest slap in the face for motivation,” says Joel Gross, founder and CEO of Coalition Technologies.

Adds Rohan Hall, founder and CEO of Cool Mojito, “I look at my bank account.”

8. Count your blessings

“On my desk, I keep a picture of the old, drab cubicle I used to report to every day at my corporate job. Whenever I’m feeling unmotivated, I look at that picture and then look around me and see the vibrant and fun workspace I’ve created. It brings a smile to my face every time!” says Dale Burgham, owner of Revo Exotic Wood Guitar Straps.

According to Gallup, only 30 percent of Americans were engaged by their work during the first half of 2012. That means 70 percent of people spent their days bored, unchallenged, uninspired, watching the clock until 5 pm strikes. If you’re an entrepreneur, you’re probably not in that category – so consider yourself lucky.

“When I start to feel unmotivated I think back to my last ‘normal’ job and how much I hated it,” says Tech Cocktail contributor Danny Boice, cofounder and CTO of Speek. “It was a 9-5 corporate hell working for a large bureaucracy where posturing and politics mattered more than actual results. It was absolutely brutal and I really don’t think I could ever go back to a role like that. That’s not living.

“I make it a point to feel gratitude about the fact that I can do what I absolutely love with my life and there are very few people that can say that. It sounds trite but I really do force myself to stop and smell the roses. I know when I look back on this very point in my life it will be right up there with the birth of my kids in terms of happiness.”

9. Rediscover your inspiration

This is really the root. To get motivated, you need to remember why you were ever motivated in the first place: why you’re doing what you’re doing. Maybe you want to change the world, maybe add a little fun, maybe make people happy for 5 minutes per day – whatever.

“I try to go back to the beginning of my project. There was a reason why I started: passion, motivation, determination. I go back to the starting days of my business and rekindle my motivation in my company,” says 19-year-old Jeet Banerjee.

But inspiration can come from other places, too: quotes, the life stories of Steve Jobs or Thomas Jefferson, the Eminem song “Lose Yourself” (as one entrepreneur said), or a movie like Jiro Dreams of Sushi. Or, of course, your family:

“When I feel unmotivated, I close my eyes and think about (a) how hard my immigrant family worked to enable me to pursue my dreams,” says Sparkology founder Alex Furmansky.

10. Suck it up

If all else fails, a few entrepreneurs said, just suck it up. That basically means: tell yourself that being unmotivated isn’t an option. You chose this career, you choose this startup, and you’re the only one who can keep it going.

“Get tough. It’s important to remember that every minute of every day counts and you own your attitude and effort. There is always a solution to the problem. Staying motivated requires tremendous perseverance and creativity, but that’s what separates those who make it and those who don’t,” says David Rush, co-founder and CEO of Evzdrop.

You may also like: Why Following Your Own Dreams Is Not Selfishness

This article was originally published in Tech Co

Image credit: www.youtube.com

If you are looking for social media marketing or digital marketing service for your business or startup, email us contact@ourownstartup.com. You can also view all our services here.

65 of the best time-management tips that will work for you

Most important keys to personal and professional success lies in how you spend your time. Here are the best ways you can manage your time effectively.

Every day, each of us has 24 hours to spend. Some of us make better use of that resource than others. Learning to manage time and spend it wisely is among the most significant things you can do to build personal and professional success.

Here are 65 of the best ways to manage your time:

1. Know yourself.

First and foremost, you have to know who you are. You can’t structure your time effectively if you don’t understand your own dreams, strengths, challenges, and priorities.

2. Create an action.

When you plan to do something, create an action plan and give it all your focus.

3. Construct a system.

Whether it’s electronic or paper-based, centered on tasks or goals or events, something you purchase or develop on your own, find a system that works for you.

4. Focus on your goals.

If you have goals but you tend to get distracted, start by focusing on what you need to achieve and what it will take to make it happen.

5. Understand your patterns.

Maybe you get a burst of energy in the mornings, hit your stride after working out at lunchtime, or think best in the late-night quiet.

6. Structure your time.

Focus your energy on doing your most important activities when you’re most productive. Save routine chores for low-energy times.

7. Do the hard things first.

Difficult tasks require more discipline. If you commit to doing the hardest things first, you will end up doing them with greater consistency. There are tools like eisenhower matrix app that can help you priortize your tasks.

8. Lace it with passion.

Passion will move you beyond your limits and your shortcomings.

9. Create optimal deadlines.

It’s crucial to create deadlines for yourself to help you achieve your goals. Think through what you want to accomplish and make your deadlines challenging but realistic.

10. Overcome procrastination.

Procrastination is the top enemy of achievement, standing in the way of countless worthwhile goals. Get serious about becoming a person who gets things done.

Also read: 7 Sleep Habits of Successful Entrepreneurs

11. Overcome fear.

Fear, is False Evidence Appearing Real. Don’t let what is false keep you from getting things done. Convert it instead to Face Everything And Recover.

12. If it’s important, put it on a schedule.

It’s the best way to keep yourself on track.

13. Prioritize your to-do list.

You can’t do everything, so learn to prioritize the important and let go of the rest.

14. Don’t obsess over unimportant details.

Trying to make sure that every detail is exactly as you want it to be will bog you down.

15. Choose your battles.

You win some, you lose some. Pick what is most important to hold on to and be willing to let go of the rest.

16. Stay motivated.

Learn what keeps you motivated and inspire yourself daily.

17. Maintain momentum.

Learn what it means to stay in motion no matter what comes your way. Momentum is key.

18. Stop worrying.

Don’t waste time worrying about things that may not even happen. Focus instead on what you know and how you are going to be successful.

19. Manage your stress.

Stress management is life management. Whether it’s exercise, meditation, prayer, family time, or social life, find what destresses you and schedule it regularly.

20. Stop multitasking.

If you think you are being efficient by multitasking think again. Focus what you are doing, get it done and move on to the next thing.

21. Initiate a routine.

Routines increase productivity by making it easier to identify shortcuts and efficiencies.

22. Take notes.

Save time by taking good notes, electronically or on paper. Develop a system to flag things you need to remember or act on.

23. Have an accountability partner.

Communicate your schedule and goals with each other and meet regularly to keep each other accountable.

24. Think positively.

Where your attention goes, so goes your emotional energy. Don’t think about what might go wrong, think about what could go right.

25. Delegate tasks.

You may be able to do anything, but no one can do everything.

26. Pay people to do things which would cost you time.

For everything you don’t like to do, there is someone you can hire who will enjoy doing it well.

27. Take breaks.

Being busy doesn’t make you productive. Take a break to reset your energy.

28. Act now.

If you read an e-mail, respond immediately. If you open a letter, act on it or throw it away. If you need to speak to someone pick up the phone. There is great power in now.

29. Time yourself.

If you tend to get distracted or procrastinate, time yourself. Set a timer for 25-minute intervals and commit to work without stopping or distraction in each block.

30. Turn off notifications.

Every notification you get on your computer or phone is an interruption that diverts your attention from your work. They’re almost impossible to ignore, so turn them off.

31. Manage distraction.

Silence everything that distracts you so you can fully focus and be as productive as you can be.

32. Eliminate time wasters.

If there are things that you do that completely waste your time and are not productive, eliminate them.

33. Create an email system.

Use a system when you check your email. Once in the morning, once at lunch time and again in the evening. Being attached to your email and responding to messages all day interferes with your productivity.

34. Limit social media.

Unless you are using social media to grow your business, limit the amount of time you spend on such sites as Facebook and Twitter.

35. Value your time.

When someone asks for a block of your time, be clear on boundaries. Show others that you value your time and they will be more respectful of it.

36. Don’t start projects you don’t plan on finishing.

Don’t start a side project before you’ve learned what’s involved and identified the amount of time that it will take to be successful.

37. Take small steps.

All big things start with taking small steps. Breaking a big project down into smaller steps makes it achievable and easy to accomplish.

38. Plan for the unexpected.

Build some flexible time into your schedule so when the unexpected happens–which it will–you won’t be thrown off.

39. Leverage technology.

Make use of apps that can help you be productive. My recent article on 75 apps for the busy professional is a good place to start your research.

40. Be concise in your communication.

When you make a request, be clear and concise in your communication to make sure you get what.

Also read: 8 Things Entrepreneurial People Do Differently

41. Build proficiency.

Learn how to be more proficient in your daily tasks, because the better you get at them, the less time they’ll take.

42. Back it up.

Make sure all your files are backed up onto external hard drive. Anyone who has learned this lesson the hard way wouldn’t wish it on anyone.

43. Manage your meetings.

Poorly run meetings are time wasters. Show your respect for all parties by managing your meetings in a productive way.

44. Don’t stop everything.

If someone says it’s important, make sure it’s important before you drop what you’re doing.

45. Learn to do less.

Make a point of learning how to work efficiently. Can you learn a new skill? Can you ask someone to help?

46. Find a mentor.

Find someone you can learn from who has done it before so you can waste less time trying to figure it all out.

47. Solve a problem.

Be proactive and address problems while they are small and manageable rather than putting them off to deal with later.

48. Get into a flow.

When you get into a flow state, things get done in less time and the work goes easier.

49. Study best practices.

Learn from what others have done before and learn to do them yourself.

50. Know your limits.

When something is out of your expertise or skill set. find some help to get it done.

51. Stop obsessing over perfection.

Learn to work at your highest level of performance without obsessing and backtracking .

52. Refine the way you make decisions.

Establish a decision making process that allows you to accurately and authentically make good decisions.

53. Avoid putting off decisions.

When you have a decision to make, make it. Otherwise it will take up too much bandwidth in your mind.

54. Don’t keep revisiting the past.

If something didn’t work in the past, don’t keep revisiting it. Learn to move on and forward.

55. Have a nightly ritual.

Get everything ready for the next day by having a nightly ritual.

56. Do things that make you feel good.

Do the things that make you feel good, and you’ll also become more productive.

57. Reward yourself.

When you complete a set of tasks, give yourself a reward.

58. Take time to recharge.

A constant state of stress and overwork slows you down. Make sure you schedule time to refresh and recharge your batteries.

59. Learn to say no.

Saying yes to everyone is saying no to yourself. Know your priorities and your limitations and don’t commit to anything that doesn’t align with them.

60. Take pride in what you do.

Take pride in how far you have come, and have faith in how far you can still go.

61. Manage your energy.

Manage your energy, not your time. No car goes anywhere without fuel.

62. Get enough sleep.

Sleep is the foundational element that ties our health together. When you sleep enough, you have more energy and happiness.

63. Never renegotiate the time you spend with your loved ones.

Family time is off limits.

64. Enjoy your time.

Leave room for fun and play.

65. Become the best manager.

Don’t just learn how to manage your time, learn how to manage your actions, projects, distractions, attention and habits. Because either you manage your time or time will manage you.

Also read: Why Following Your Own Dreams Is Not Selfishness

This article was originally published in Inc.com

Image credit: www.youtube.com

7 Sleep habits of successful entrepreneurs

Follow these seven sleep habits and dream your way to business success.

We all know lack of sleep is harmful to our health — sleep affects mood, increases risk of psychiatric disorders and depression, cardiovascular disease and lowers immune system health. Yet the stress of running a company and long working hours means entrepreneurs often find themselves functioning on little sleep.

Evanston, Ill.-based sleep expert Dr. Lisa Shives says getting seven to eight hours of sleep a night is a critical component of entrepreneurs’ business success. “Sleep affects our executive function; the area of the brain responsible for decision making, creative thinking, memory and reaction time,” says Shives.

Follow these seven sleep habits and dream your way to business success:

1. Avoid alcohol before bedtime.

While alcohol may help you fall asleep, it will affect the quality of your slumber. “Sleep is lighter, you have less REM (the deepest stage of sleep),” says Shives. Alcohol can also wake you up in the middle of the night. “Many people wake up after about four hours, because that’s how long it takes to metabolize alcohol, then they have trouble getting back to sleep,” says Shives. Although studies have shown a glass of wine at dinner can have positive effects on cardiovascular health, Shives says to avoid drinking any alcohol within three hours before bedtime.

2. Turn off electronics before bedtime.

Shives recommends shutting off gadgets an hour before bedtime. “The light that’s emitted [from the screens] slips your neurotransmitters into an awake position,” says Shives. Our gadgets also force our brains to stay active when they really need relaxation time to distress before bedtime. Shives recommends using the hour before bed to do something relaxing and enjoyable like reading a book or having a chat with your partner.

3. Write your worries away.

If you find yourself lying in bed stressing about the events of the day, Shives recommends keeping a worry journal to write down the issues that are bothering you. For those who find their heads swimming with to-do-lists, Shives says putting the list on paper rather than thinking about it can help to clear your head and shut off your mind before bedtime.

4. Create the perfect sleep ambiance.

The optimal sleep environment is one that’s cool, dark and quiet. “Part of becoming drowsy in the evening is that your core body temperature starts to drop,” says Shives. Eliminate noise and light distractions by charging smartphones outside the bedroom door to avoid the glow, the ding and the temptation to get up and check on something.

Also read: 12 Ways To Avoid Startup Mistakes

5. Exercise.

Exercise promotes healthy sleep patterns by releasing serotonin and dopamine. These are the same neurotransmitters that are important for regulating our 24-hour sleep-wake cycle, known as the circadian rhythm.

6. Avoid sugary snacks before bedtime.

If you have a hankering for a snack, Shives recommends grabbing a bite containing protein and fat such as yogurt rather than one containing starch or sugar. “[Protein and fat] have very low glycemic levels which means they will give a steady release of energy throughout the night,” says Shives. Simple carbs or sugary snacks give you a quick burst of energy, followed by a crash which can disturb the quality of your sleep.

7. Wake up to the light.

The morning is just as important to your sleep habits as the evening. Getting sunlight when you wake up re-sets your body’s circadian rhythm, helping to ensure you’re more tired at night. Enjoy your morning coffee sitting next to a large window is a great way to start your day right.

Also read: 8 Things Entrepreneurial People Do Differently

This article was originally published in Entrepreneur.com

12 Ways to avoid startup mistakes

Mistakes and entrepreneurship go together. But thankfully, some mistakes can be prevented. Here are some smart ways to avoid stupid mistakes.

If you want to spark a lively discussion among a group of entrepreneurs, all you need to do is make a simple request:

“Tell me about your mistakes.”

Every single entrepreneur has made mistakes, is making mistakes, and will make mistakes.

Mistakes and entrepreneurship go together. But thankfully, some mistakes can be prevented. Here are some smart ways to avoid stupid mistakes.

Get a mentor who’s done it before.

Your most valuable asset isn’t your killer idea or innovative software. Your most valuable asset is a mentor or group of mentors who can tell you what to do or what not to do.

Mentors have a been-there-done-that perspective on startup life that will keep you from making hundreds of mistakes.

Also read: 20 Must watch movies for all Aspiring Entrepreneurs

When possible, use systems, not people, to get tasks done.

Systems are easier to manage than people. It’s easy to make quick-and-foolish hiring decisions. Instead of hiring a person to do a simple task, use SaaS or a tool that can accomplish the same thing.

Raise money with caution.

Many entrepreneurs think that the only way to get a business off the ground is to raise money through traditional startup funding.

Raising money is a full-time job. It takes thick skin and hardheaded persistence. Don’t let this discourage you, but take time to consider whether or not you need funding. If you do need funding, then determine the ideal time to seek funding.

It’s a mistake to rush into funding without counting the cost.

Create a rock-solid business plan.

Your startup will quickly descend into mass chaos unless you have a strong business plan. Your business plan will be like a map, keeping you on course, and protecting your startup from disaster. Give your business plan the time and attention it deserves.

Also read: Five critical questions your Business Plan should answer

Get legal help.

One of the most damaging things that can happen to your startup is to get embroiled in legal battles. I learned the hard way that lawsuits — even if you’re completely innocent — are time-consuming, expensive, and draining.

As early as possible, find expert legal counsel, and pay whatever fees are necessary to keep your business, assets, ideas, and organization in full legal compliance.

Stay away from negativity.

Entrepreneurs must stay away from negative influences. What kind of negative influences? You’ll discover haters who want you to fail and will criticize you. You may even have family members who discourage your ambition and try to slow you down.

You can’t cut everyone out of your life, but you can choose to ignore these negative forces. Sometimes, all it takes is a polite request: “I am pursuing something that is important to me, and I ask you not to make disparaging comments about it. Thank you.”

Test the market, but don’t overtest.

Testing the market is always a good idea. Don’t spend too much time and money on testing your business idea, though. As long as things look safe, take the plunge, launch the business, create the product. Basically, take action.

I’ve watched would-be startups spend tens of thousands of dollars on market research and product viability. Then, in the middle of yet another round of market research, some other startup rushes out a similar product. The slow-and-steady company failed to create fast enough and was beat out of the market by the startup that hustled.

Don’t skimp on the right tools.

You’ll be surprised at the number of things you need to buy when starting a business. I’m not just talking about staplers and sticky notes. I’m talking about systems, servers, email automation, marketing SaaS, subscriptions, software, and other tools.

These can get very expensive. Is this money wasted? Not at all. Purchasing the right analytics or SEO tools, for example, can not only save you thousands of dollars, but can make you thousands of dollars, too.

Don’t buy an office until you’re ready.

Offices are overrated. You probably don’t even need one. With a computer and WiFi, most startups and their teams are in business.

An office space usually requires a lease, a contract, furniture, decorations, etc. You run the risk of spending more time and effort on your office space than is necessary.

Rethink your “need” for an office, and you can save yourself some serious headaches.

Don’t hire expensive people.

If someone is really expensive to hire, it doesn’t mean that they are good. It means that they are expensive. That’s it.

Why would someone be so expensive to hire? One common reason is that they are hedging their bets against the failure of the startup. If they think that the startup might fail, then they will negotiate.

Pivot.

To “pivot” is to make a massive business change in a short amount of time.

How massive? Shifting your market. Changing your product. Reinventing your approach.

Nearly every startup has to pivot if they wish to succeed. Be on the lookout for those critical pivot moments.

Fail fast.

Let’s just face it. Your startup might fail.

And that’s okay. It’s better to fail quickly than for your dream to die a slow and painful death. Fail fast, fail forward, and just get past it.

The best thing that you can do for your entrepreneurial success is to get the failure over with and move on to the next big thing.

Also read: How to Stay Motivated After a Startup Failure

Conclusion

No matter what, you’re going to make mistakes. You can get all the mentoring in the world, read all the articles on Forbes, and study as many startups as you want, but you’re never going to avoid mistakes.

Mistakes are often the best teachers. Instead of trying to avoid mistakes all the time, be eager for risk and ready to learn.

One mistake made is one hundred mistakes prevented, so go ahead and make a few.

What mistakes have you made in your startup?

Also read: 10 Reasons why Entrepreneurship is awesome

Bootstrap Mentality: Key ingredient for startup success

Bootstrap mentality keeps the organization focused on being frugal, innovative and agile. Here are some suggestions on how to maintain a bootstrap mentality while running your organization.

Bootstrap was term coined from the computer lingo ‘booting’ which means starting a computer or starting a chain of processes which eventually starts up the operating system. In the startup world, bootstrapping essentially means funding your own venture and not being too dependent on external sources.

Let’s face it, to have a bootstrapped startup you need grit and total faith and conviction in your product, something a lot of new startup’s find it difficult to conjure. While most startups believe that only funding guarantees success, we beg to differ. Bootstrap mentality is critical for a startup to succeed, irrespective of whether it has raised funds or not. Bootstrap mentality keeps the organization focused on being frugal, innovative and agile. Here are some suggestions on how to maintain a bootstrap mentality while running your organization:

Hiring: Hiring is the key element in any startup and every success story is as good as its team. They say that to make an effective presentation, ask the question ‘Why?’ / ‘So What’ to each slide and if you get a convincing answer, then you are doing good. Ask the same question while hiring someone and if the answer is in lieu with your vision and larger good of the company in a prudent manner, then that’s a good hire. Going on a hiring spree on receiving funding will ensure that you burn before you earn. Last but not the least, if you come across a ‘proven team’, then that’s just a rabbit out of a hat and you can believe us blindly. Proven teams are highly overrated and irrespective of who says what, they may not be right fit for a bootstrapped company. A young team which proves itself is where you should bet your money.

Spend Wisely: Put need first, want later – Most startups on receiving funding go berserk with huge spends on office infrastructure, hiring, system upgrades, software’s and all kinds of fancy things. Some even spend on creating apps and elaborate marketing campaigns. This is the sure shot way of burn out before you start making any money. So, question all expenses and never incur it unless you have found out a way to balance it with the money you make. Remember that it is better to be a successful business than to be a popular sink-ship.

Another pro-tip – Keep everything short – small up-front capital requirement, short sales cycles, short payment terms and recurring revenue cycles.

Barters and Associations: Barters from age-old days have been pivotal to successful business deals and if you could compensate a cost with barter, then nothing beat sit. It is a win-win situation where there is no physical money spent and a mutually benefiting association is formed. These could actually extend your customer base if you use it wisely. Use it abundantly and wherever possible.

Experiment: To be a bootstrapped company, put on your lab clothes, lab goggles, burn gloves and experiment. Don’t be afraid to think out of the box, try different things, get out of the herd mentality. You would burn your fingers, but a few tests and trials and you would shine. Similarly, to the way, we at Vista Rooms went ahead and created our mobile app on Instagram, no need to worry about downloads, or upgrades or coding. We could do it because we experimented, so keep experimenting to see what works for you.

Stretch Your Team: The optimal number of hands between a bootstrapped company and the customer is Zero. They say that God invented e-commerce to sell directly and reap greater margins, use it well. Stretch your team to don different hats be it marketing, operations or sales. The marketing guy can always look at operations when required, or the sales team could help in marketing initiatives. The lesser the number of people between you and the customer the better. This would ensure your team size is optimal.

Product first, sales later: Most startups do the reverse of this. The focus on sales and upscaling is so high that the product never gets a chance for betterment, till the time it becomes an absolute necessity. By then a competitor would have gained ground and whatever product enhancements you do may not save you. Focus on bettering the product and delighting the customer and rest assured your marketing budgets could reduce down. Genuine customers would always go for better products, no matter the cost. More marketing will not always bring you customers, there has to be a constant focus on understanding customer needs and action on feedback.

Funding is never guaranteed: Successful startup ventures follow this as a quote from the Bible. They would focus on being able to sustain without any funding and manage their overheads in a manner that they are able to manage with little or no funding. They have made up their minds that they will not need funding and work towards that goal. Most bootstrapped companies would worry on expanding business or bettering their product, instead of running behind wooing investors.

Red Pill or Blue Pill: Taking a leaflet from Apple’s ex-chief evangelist Guy Kawasaki’s blog, the Red pill or the Blue Pill dilemma sources from Neo’s quandary in the movie The Matrix, where he is given a choice to either accept reality or be in deep dream space. Bootstrappers take the red pill everyday with pride and go deep into the rabbit hole to see how deep it goes.

We encourage you to have a bootstrap mentality, irrespective of whether you have raised a large amount of funding or not. Make your team focused on being frugal and innovative and take the red pill daily.

5 Brilliant ways to stand out in a competitive crowd

What’s different about increasing our competitiveness compared to other skill building activities is that it isn’t another “to do” list item. Instead, sharpening your edge requires a more fundamental change in how you work.

By nature, we all compete. Some more than others, for sure. Yet, what we all share is the challenge of working among dozens (if not hundreds) of other talented, ambitious people with similar skills.

We compete internally with our peers angling for limited leadership positions, externally with similar companies fighting to win the same clients, and within ourselves as we aim to do our best work. Standing out in the crowd is essential to our success. It’s can also help increase your willpower.

Shift to a “can do” mindset.

Empowering yourself requires a deliberate change in how we’ve been trained to think. You can’t ask for permission to make a difference in your work and life. Know that you have all the latitude you need right now. Today.

Ask better questions.

“When do you want this by?” might be important, but the only impression you’re leaving is that you’re a diligent project manager. Critical, of course–but not all you’re going to need to lead. Instead, get used to asking tougher questions. How will this impact our current clients? How does this change our marketing strategy for new clients? Do we have the right resources or training? Do we have enough staff with the right skills? Have we evaluated other options? What are our competitors doing? It helps to research the answers to some of these in advance and be prepared to offer your own thoughts.

Get creative in measuring results.

Many of our business and program impacts are really tough to measure. Sure, sales are up or down is an important indicator, but there are a lot of others. Those with the inquisitiveness to dive into available data or to gather information to help measure something in different, insightful ways are hugely valuable.

Make connections.

Connecting people makes everyone feel good, and it’s perceived to be generous – even though it typically costs more than a few minutes of drafting an e-mail introduction and setting two people you know on their merry way. To do this effectively, you have to actually understand what people you know do and potentially have to offer. I see this insight as the critical advantage highly networked people have over those with smaller or less diverse circles.

Be more of yourself.

It’s often said and I’ll say it again here. Bringing more of yourself to each task is probably the most important differentiator. This means knowing yourself, your viewpoints, strengths, and passions well-enough to let them shape and add color to your work.

Whether you’re aiming for a promotion or trying to win the next big client, increasing your competitiveness requires a change in your mindset. That mindset shift empowers you to start working at the next level immediately as opposed to waiting for someone else to put the pieces in place for you. Making this shift triggers the behaviors, contributions, and ultimately the results that get noticed and make you stand out in the crowd.

This article was originally published in inc.com

Image Credit: www.factorysites.net