Startup Tips

3 Games To Help You Generate Business Ideas

Posted on Tuesday at 11:32

Generating a business idea takes creativity. Fortunately, we can exercise our creativity like a muscle. And it can even be fun. Try these three games to inspire new ideas. Who knows, it might lead to the next million-dollar startup!

1. Mix and Match

What two products could be brought together for the first time to create a new one? For example, take license plates and dry erase boards. People can custom their very own license plate! While this couldn’t work from a legal standpoint, you get the idea. Try some of your own.

2. Solve It

Begin by questioning everything around you and constantly asking yourself, how could things be better? Listen to complaints from friends and families and determine how you could fix these problems.

3. What If?

Let your mind wander and dream. What do you really wish were possible? What if you could snowboard uphill? What if you could monitor growth among children?

For more information on these simple brain games use to help exercise the creative model, click here.

Tags: business ideas, business planning, creativity, startup

5 Secrets to Sales

Posted on Thursday at 11:19

As a new startup, you will find yourself doing some form of sales around the clock. Selling investors or bank officers, selling potential strategic partners or key employees, selling customers and clients. Sales is king in the new economy. You success will be determined by your ability to generate revenue and sell, not just your products and services, but also yourself.

Here are five signs you’re well positioned to succeed at the art of selling:

1. Remember, you are in the people business.

Don’t make the mistake of getting so caught up in what you are selling that you forget to make meaningful connections.

2. Focus on the results, not the effort.

Don’t confuse results with efforts. Your success in selling is all about getting results. Therefore, you should evaluate your results and not your efforts. You don’t try to get an appointment, you either get it or you don’t.

3. Do the uncomfortable thing.

Don’t shy from the tough customers or the tough sales. You can’t bring the big deals home without getting into the deep waters where the big fish swim.

4. Wow the customer.

Sales is all about emotion. Constantly look for ways to inspire a customer’s emotional involvement and create the urgency to take ownership.

5. Ask for the sale

This may seem very simple, but most salespeople never ask for the sale. If you don’t ask, you will only sell to those who are going to buy regardless.

More details about these 5 tricks can be found here.

Tags: bank, Business, client, customer, investor, partner, sales, startup

3 Main Components of Financial Projections

Posted on Tuesday at 7:50

Successful entrepreneurs not only have visions in their minds, they also translate their abstract visions into concrete financial projections. Financial projections enable entrepreneurs to set targets for their goals, control costs and predict problems. Balance sheet, profit-loss statement, and cash flow statement are the 3 main parts of financial projections and should be included in any business plan:

Balance Sheet

It is a summary of the financial balance of a company. It looks at the company’s assets, liabilities, and equity. Assets are economic resources. They include tangible and intangible things that can be owned and controlled to produce value. Liability is defined as an obligation of an entity. To settle this obligation, an entity can transfer assets or provide services. Equity is the residual claim of investors in assets after all liabilities are paid. Assets, liabilities, and equity are listed on the balance sheet, and the difference between assets and liabilities is the company’s net worth. The balance sheet is a snapshot of a company’s financial condition, and it gives decision makers a solid understanding of the company’s resources and debts.

Profit-Loss Statement

It indicates how revenue, after charging against costs and tax, is transformed into profit. This projection vividly interprets the business’ entire operating process into financial figures. These projected figures might not largely match the company’s actual performance. But they, to a certain extent, give entrepreneurs a general idea of how profitable their businesses could be. The profit-loss statement helps entrepreneurs set goals for both short term and long term periods, and it also alerts entrepreneurs to potential costs that could incur.

Cash Flow Statement

It essentially indicates the flow of cash in and cash out of the company, and it has been a very useful tool to determine the business’ short term viability. Cash is the life blood of a business. Payroll and immediate expenses have to be paid in cash. Whatever scale a business entity is, it can go bankrupt if it runs out of cash. Therefore, the cash flow statement is crucial for a startup owner to judge the company’s financial health. It is also important for investors and lenders to judge the company’s potential return and its ability to repay. It as well tells how much startup capital the company will need.

Financial projections include balance sheet, profit-loss statement, and cash flow statement. They inform their readers the company’s financial condition. This information is crucial important and is in a professional business plan. Therefore, by having a business plan at hand, one can always examine his/her business’s financial health, and present investors or partners with valuable data.

Tags: balance sheet, Business Plan, cash flow statement, entrepreneur, profit and loss statement, strat-up. projections, stratup

The Habits of Self-Made Billionaires (Infographic)

Posted on Thursday at 11:04

If becoming one of the world’s richest people were easy, we’d all be doing it. Unfortunately, that is not the case, becoming a self-made billionaire involves taking an enormous amount of risk. Of the 100 richest people according to data from the Bloomberg Billionaires Index, 36 were born to humble households and 18 have no college degree whatsoever. By taking risks, these individuals were able to build an empire.

As the infographic from Enrepreneur.com shows, these individuals invested during hard times, bought companies that were all but ruined, adopted early trends, some got lucky and for the majority, their successful venture was not their first business.

Tags: bilionaire, infographic, richest people, risk, startup, venture

Pitch Deck for Angels and VCs

Posted on Tuesday at 7:40

The single most important thing that the VC is going to be investing in is YOU! Your pitch deck presentation is simply a visual tool to help you deliver your message. It is paramount that the audience is solely drawn to you, and that your deck merely contains short bullet points, headlines and images that evoke an emotional connection or act as a summary of your presentation. You will want to develop a separate pitch deck that you will provide as a handout that includes much more information about the pitch. However, during the presentation itself, the deck needs to be bare bones and the information needs to come from you.

Here are some tips to consider as you work through your presentation deck:

The first slide should contain the company logo. At this point, you’ll provide a brief (1-2 sentence) overview of what the company does , how it does it and why it is important.
Next, introduce the management team and key players. Explain how their experience and skill-sets align with the company and where it is going.
The very next slide needs to clearly introduce who the market is and what the size of the market is. First and foremost, you target market needs to be focused. Second, it is important that you use outside validators to convince the audience that what you are telling them is true. Outside validators can include successful beta runs, size of companies in the same or a similar space, credible research firms, etc.
Once your audience has an overview of the company and understand who the market is, present the product or service. A simple image on the slide will do. It is up to you to explain the product in simple and succinct terminology that does not confuse or patronize the investor.
The next slide is about the business model. Explain how the company makes money and why this model was chosen if necessary.
Follow the business model slide with an overview of the competition. Investors want to see who the competitors are, their strengths and weaknesses, how you are positioned among them, and most importantly, how are you special. Be sure to include outside validators here as well, such as strategic relationships.
Discuss any barriers to entry that exist in the industry and how your company has or will overcome them. You may also want to mention any barriers that your company has or will put in place to deter any new entrants or copy-cats.
Provide a simple P&L on the next slide and discuss the key financial takeaways in your projections. Be sure that when you present the upside potential that you are not too low in your assessment but that what you present is believable as well.
Dedicate the following slide(s) to the capital amount that you are requesting, the use of proceeds and lastly, your valuation.
Conclude with your logo on the screen and wrap up the key points made above as quickly as possible.

You want your presentation to be like a rocket, building speed and momentum throughout its trajectory until it reaches its destination and ends with a climactic explosion. So to your presentation needs to continually build momentum, getting stronger and stronger throughout the presentation and ending on an extremely high note.

David Rose, entrepreneur turned investor, outlines all of this and more in his TED Talk.

Tags: capital, entrepreneur, entrepreneurship, perfect pitch, pitch, raising capital, startup pitch deck, VC, Venture Capital

Behavioral Targeting and What it Means to You

Posted on Thursday at 7:54

The internet is a constantly evolving mass of information that has only been around for a few decades, but is making a deeper and wider impact on global society each and every day. The concept of behavioral targeting is relatively new and is making an impact on each individual who uses the internet.

What is behavioral targeting you ask? Well, it all begins when targeting companies reach agreements with publishers and they put a specific piece of code into their website. As you browse the web, this site places a “cookie” on your browser. Now that the cookie is attached to your browser, the targeting is already under way. Data points are constantly being gathered as you navigate the world wide web taking note of the sites you are on, what you buy, as well as what you search for. As time goes on this data amasses itself and not only puts you in demographic categories but also takes note of your interests, preferences and hobbies.

The ability to gather this information on every individual using the internet allows companies to target specific segments of the population and thereby achieve a higher rate of interaction when marketing online. This may seem like a very costly way to advertise on the surface but the rate of interaction that you get from this method may prove to be extremely cost effective in the long run.

There are overreaching effects outside of the obvious marketing and advertising impacts that this technology can have for start-up companies trying to reach new customers. A whole new level of personalization is on the horizon. Jeff Hirsch, president and CEO of AudienceScience says that “10 years from now we will all look back and laugh that we ever had to type something into Google to find what we were looking for.” The algorithms that are being developed for this level of personalization are extremely complex and are now able to grasp a human’s depth and therefore avoid inundating you with Nike ad’s just because you were on ESPN.com. These newer and constantly evolving algorithms are breaking down website content that you view and these targeting techniques are viewing people as multi-dimensional beings.

The fact that these data points are constantly being compiled means that advances in this concept will come quick. If you are a startup company it would be wise to research this field and determine the best ways for your firm to use it to your advantage. When it comes to technology it doesn’t take long to get left behind so stay on the cutting edge with this one because its benefits to start-ups and entrepreneurs are limitless.

Tags: behavioral targeting, Business, data, market research, online marketing, personalization, start-up, startup

The Executive Summary

Posted on Tuesday at 7:45

While the Executive Summary will be the first thing that people who are reading your business plan will see, it should be the last thing that you write. You are selling your concept to an outsider, possible future investor or a partner, who does not know anything about your business yet. The Executive Summary should be the “elevator pitch” of your business plan that gets investors to take a deeper look in your business plan.

The length of your Executive Summary should be no more than 1-3 pages long, short enough to keep the attention and long enough to cover the subject. When writing the Executive Summary Pascal’s famous words should come to mind: “I apologize that this is so long – I lacked the time to make it short.”

The Executive Summary should include the basic elements from each section of your business plan; essentially, it is a clear summary of your business, marketing, operations and financial plans.

First, summarize your business’ product or service: define the general idea of your product as well as the industry in which you will operate, underline the value of the product that you deliver to the customer (Value Proposition), identify the opportunities for you to deliver this value and explain why you think that you can do it better than your competitors.
Second, summarize marketing: list distinctive features of your product/service, target your potential market, and present your competitive analyses (or competitive landscape). Define your key sales and marketing strategies.
Third, summarize operations: Present your management team with a brief overview of their functions in your business. Note the key relationships that are expected to affect your business.
Lastly, summarize you financials. Present a short outline of your financial projections and requirements. Explain why you will need financial input and how your business will use it.

Remember that your Executive Summary would be the first convincing “pitch” to your future investors. Usually a quick glance may determine whether a potential investor will finance you or whether he/she will not even consider reading the rest of your business plan. Write your Executive Summary in a language and terminology that is easy to understand, persuasive and convincing.

In conclusion, those first pages of your business plan are critical, so make them count.

Tags: Business, Business Plan, elevator pitch, executive summary, investor, pitch, start-up, startup

I Have a Great Idea, What’s Next

Posted on Tuesday at 12:00

You have a great idea and want to start a business, so now what? One step I like to recommend to new entrepreneurs is that you start with a self assessment. The idea is for you to learn more about yourself, your personal and financial goals and how committed you are to getting your business off the ground and successful. Once you have completed an assessment, read through it again to see if your passion, business idea and personal and financial goals align with one another.

If you determine that your goals and business idea align, you now need to make the distinction between that great idea and a great business business. An idea is usually a product or service that will be sold to a particular group of people. A business is the vehicle, strategy, and system around the idea that makes it profitable. This includes strategies for how to produce the product or service, how to distribute it, how to market it, and how to turn all of that into a profit.

Take the time to answer the following questions to develop a clear concept of your business:

What business do you want to start?
What product/service do you plan to sell?
Who will buy your product/service?
Why will they choose your business?
When will customers buy your product/service?
How will customers know about your company?
What will you charge customers for your product/service?
What you are going to do different?
How is your business going to stand out and succeed?

Once you have answered these questions and have a clear direction of your idea and business concept it is time to write a business plan. A business plan will set the foundation for your company, and then it will be time to launch.

Tags: after the business idea, Business Idea, Business Plan, How to, next steps, Pre Launch, Pre-Launch Actions, starting a business

Most Common Mistakes When Writing a Business Plan

Posted on Thursday at 12:00

If you are reading this blog, it is likely because you have written or you are in the process or writing your business plan and you want to know if it is up to snuff! We’ve compiled the 7 most common mistakes that we have encountered in the hundreds of business plans that we have reviewed. Now, be honest, are any of those mistakes part of your business plan?

1. Bad Spelling – It sounds obvious, but you would be surprised how often people forget to run spell-check on their business plans.

2. Lack of Research – This phase of writing the business plan usually takes the longest. But, it is important that you do not take shortcuts. Conducting the proper research and learning about your industry, your target markets and your competitors are paramount to creating a successful business, business model and business plan. With the information that you learn from your research, you will be able to develop successful sales and marketing strategies, pricing strategies, distribution strategies, product/service features to incorporate, etc.

3. Overoptimistic Thinking – Don’t fall in the trap of developing unrealistic projections because you are that confident in your product/service. Every product/service has competition; every company needs to establish a presence in the market; and every company needs to test and tweak its product/service and sales/marketing strategies to find the right mix. Furthermore, do not neglect your research. Use the statistics surrounding the size of the industry, the size of your market and your competitors market share to make realistic financial projections.

4. Lack of Evidence – This goes hand in hand with lack of research. Many business plans assert that the market is attractive or that there are no direct competitors currently on the market. These claims need to be proven with evidence. What makes the market attractive? If there aren’t any direct competitors, which companies will you most closely compete with?

5. Disorganized Logic – Many business plans present objections or accomplishments that the business will achieve. However, they are not supported with clear logic that shows how these objectives or accomplishments will be achieved.

6. Unclear Format – In many cases, problems with disorganized logic can be as simple as the format in which the statement is made. Use graphs, charts, images, infographics, bullets, prose, etc appropriately.

7. Jargon Language – If you are operating in an industry that is rich with industry-specific jargon, do not assume that your reader understands the jargon. Be sure to provide definitions and to complete spell out abbreviations.

Tags: Business Plan, common business plan mistakes, How to, mistakes, writing a business plan

Social Media for Startups

Posted on Tuesday at 12:00

The global social media frenzy continues to gain momentum each and every day. The impact that social media popularity has had on the business world is immense. Most startups and existing companies can no longer justify staying away from the trend because the benefits are too many. We will discuss these benefits and provide some strategies on how to get the most out of your social media endeavors.

Now that internet access is commonplace in almost every corner of the world, your customers are closer to you than ever before. In the past, businesses had to employ many different techniques to get the attention of the general public. Strategies like direct mail marketing and door to door canvassing of target neighborhoods. These techniques were often very costly and difficult to analyze the results of, and are no longer relevant. Currently, with the average American Facebook user currently spending six hours per month browsing the network, your customers are actively looking for what they are interested in and passionate about, and you have a great opportunity to reach out to them.

Because it is the most popular social network, we will use Facebook as an example of how to employ social media strategies to gain momentum for your startup. You have already set up your Facebook page for your business and are starting to attract fans of your page. Your goal now is to be able to engage the people who “like” your page and get them to interact with you on a consistent basis.

The first way to do this is to humanize your venture. This can be done simply by updating your pictures regularly. Add new albums, take pictures with your satisfied customers and showcase them to the rest of your fans. If you host an event, be sure to upload pictures from the event so that your fans see that you are real people, not just a company with no face.

Another great way to bolster positive interaction on your Facebook page is to have a sense of humor. People enjoy laughter, this is as inherent as the existence of gravity. If you make people laugh, they will associate happiness and joy with your business, and that is a connection that any business owner would love to have.

A very good way to get your fans involved with your page to pose questions directly to them. Asking questions that will stimulate your fans and create a reaction amongst each other over responses is a great way to increase overall participation on your page.

Social Media strategies are all about creating a buzz and a brand identity for your business. Remember that you should never be using social media just for the sake of it. You need to develop clear goals that you hope to achieve through the implementation of your strategies, and these goals should tie into your business plan. Social Media is an extremely potent tool to growing and developing your business, so harness that power and use it wisely, and your customers as well as your bottom line will thank you for doing so.

Tags: branding, Build your Website, Business Idea, Business Plan, customer engagement, facebook, fan pages, How to, Social Media, social media for small business

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