We all have friends and family who offer to help us in our businesses. Unfortunately, we don't take advantage of these valuable offers in a way that really helps our business. To do it right, think about a specific need you have that is small and focused but that can help you.
Raising money can be a full-time job and takes years of experience to understand how it works. There are many individuals sometimes called brokers, that spend their lives helping companies raise the capital they need. Generally these third parties earn their keep by receiving a percentage of the amount that they raise - usually 5 to 10%. So when does it make sense to use a third party like a broker raise money?
Companies use the word "accountability" but it is hard to know how to put that in place in the fast moving environment of an entrepreneurial venture. In many cases, the leader or founder of the company tries to drive accountability by talking directly to someone about a goal, activity or deliverable. And while that should work in many cases, often times in a one on one an individual may not respond. So what can you do?
When we are talking to investors, we are passionate about our product or service. While this is a good thing, it causes us to use language that can be a turnoff to investors. If you are describing how your customers view your product or service, and you respond, "our customer LOVES our tracking software", it strains your credibility.
What sets one sales effort apart from another? If we all have competition, how do we earn the right to advance in the sales process. Every good sales professional will respond to customer requests for more information about your product or service quickly and thoroughly. But there are very few salespeople that will provide customer proactively provide customers with valuable information. In other words, provide "more than they ask, before they ask."
Question of the Day from Austin, Texas: my brain feels tired - how do i deal with that on a day-to-day basis. We share some of the tools and techniques to make your brain a little more rested and a lot more productive.
Raising money can be a full-time job and takes years of experience to understand how it works. There are many individuals sometimes called brokers, that spend their lives helping companies raise the capital they need. Generally these third parties earn their keep by receiving a percentage of the amount that they raise - usually 5 to 10%. So when does it make sense to use a third party like a broker raise money?
This is a tough one. People that know you and believe in you are often very willing to give you money to pursue your business. They often don't put you through the rigors of due diligence the way an independent third party does. So in this sense they are a common source of capital for early-stage companies. But there is a catch. Because you have a personal relationship with these individuals, the nature of your relationship is not simply as an investor. Often times they will have higher expectations of you and you may have higher expectations of yourself because of that personal relationship.
One of an entrepreneur's most challenging dilemmas is how much money to raise. It has far-reaching implications, not the least of which is how much ownership in your company you're going to give away. While there is no magic answer to this question, here is a simple guideline that might help you in your fundraising efforts.
You will walk into two investor meetings. One right after another. They might even be in the same building. One investor will tell you that your idea is not different enough. The other investor will tell you that your idea is too different. Remember, when you are creating something unique, it by definition means that it hasn't been done before. So there will be those that are uncomfortable with the path that you're taking. Remember, no-one needed more coffee when Starbucks was born.
Question of the Day - Portland, Maine: what does it mean to focus in the midst of the entrepreneurial chaos? We share our thoughts on the different ways that you focus your energy and efforts.
Many of us entrepreneurs have vision – we see the future so clearly in front of our eyes. Others think execution – how will I move forward on an idea from point A to point B. Both are skills that entrepreneurs spend a lifetime developing. To succeed in this day and age, a business needs both to be successful. This does not mean that you have to do both – what it means is that the business needs to do both to be successful.
Question of the Day from San Francisco, California: it seems like that for every sales opportunity, we find ourselves creating a new document to use in the process. We discuss the importance of creating a repeatable and consistently used sales process and tools to improve your chances of sales success.
Many of us entrepreneurs often struggle with the idea of selling – of trying to convince potential customers to purchase their product or service. It’s not that they don’t believe in our product or service, it’s just that we feel like washing their mouth out when they thinking about “being a salesperson.”
Question of the Day from Nashville, Tennessee: which is more important, product or positioning the product? We provide the answers and why positioning is more important than product in this hyper competitive day and age.
Experienced sales professionals understand that objections – when customers tell you how your product or service is not meeting their needs – is not a negative but rather a positive. When a potential customer shares their objections, it gives you an opportunity to address those gaps to see if you have a chance for success. While sometimes these objections are hard to overcome, in many cases sales objections provide the roadmap for closing a deal. A customer is saying, “if you can address these gaps, we may be able to move forward.
Question of the Day from Seattle, Washington: my business is growing and that is good but how do I manage all the different things I need to do to stay focused. We discuss a series of skills to prioritize work and manage your day more effectively.
Entrepreneurs pride themselves on being able to handle multiple issues at the same time. But is this something we should be proud or something to change. Doesn’t a well-run organization of any kind know what its priorities are and then allocated its scarce resources to those priorities. Put another way - doesn’t every organization - whether it be a one man show or a Fortune 50 company – have more to do than it has time?
Question of the Day from St. Louis, Missouri: I am about to make my first hire - how do i make sure i don't make a mistake. We discuss the skills you develop to improve your chances of making the right hire.
When you first have that “aha” moment when you feel as you have discovered something, it feels like oxygen – like we need it to even breath. We become focused and obsessed. But during that process of seeing ourselves ringing the bell of the New York Stock Exchange, we also lose our objectivity. It is hard for us to be honest with ourselves about whether our idea is viable, or is only viable it we act upon it a certain way.
It sounds odd to say “time management tips for entrepreneurs.” Time management tips for entrepreneurs is certainly an oxymoron. In fact, if a non-entrepreneur said, I have some time management tips for entrepreneurs, we would likely think to ourselves, “they don’t get it.” After all, we all wish we could create the 28 hour day. Getting the most of your day is a skill – and one of those skills that makes you a better entrepreneur. Every day can feel like the day is managing us instead of us managing our day. It’s a little bit of perspective, a little bit of time management and a little bit of discipline. The real solution is not the entrepreneur that comes up with a 28 hour day. It is improving our skills at managing our time and energy.
They say nothing in life is free - except for the entrepreneur who is willing to think outside the box. In this day and age, there are many money saving alternatives to traditional ways of doing the things we need to do to run your business. One of the ways we can use that skill we all have - to think of things from a different perspective - is to take advantage of free opportunities.
It's tax time. Each entrepreneur and small business owner strives to get to the point where your company is making money. Phrases like “positive cash flow” or “break even” are music to the entrepreneur. When we get to that point, what goes hand in hand with making money is paying taxes on that income. But as an old Northwestern law school professor used to say, “Taxable income is better than no income.” Every entrepreneur should be so lucky.
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