Turn Your Brainstorm Into A Business

When 35 year-old Edwin Land was strolling through the streets of Santa Fe, N.M. with his three-year old daughter Jennifer, the child asked him why it took so long to develop a photograph. At first, Land dismissed the question with a wave of the hand but then came to realize that Jennifer had handed him a brainstorm waiting to be turned into a business--which he did with a flourish. Forever, Land would be known as the creator of instant photography and the founder of Polaroid.

We all have ideas, brainstorms, that pass through our minds only to drift away into the ether. In many cases, it's not because they weren't worthy -- perhaps extraordinary and even disruptive -- but instead because we didn't take hold of them and shape them into a business. Instead we may work away at jobs that provide little rewards and even fewer opportunities to break out, change the world, build personal wealth.

The ideas do not have to be Polaroid/Facebook/Amazon big. They can start off as little gems with unlimited potential. It's best to forget about the scale of the idea at the outset and to focus on giving the brainstorm tangible form.... a life of its own. For a stillborn idea is not only a lonely burst of energy, but worse, the loss of what might have been.

Everyone has ideas waiting to be leveraged into businesses. And almost everyone has roadblocks that stop us from launching them. But it may be time to tackle the challenges and test the waters. If you want to give it a run, consider the following steps:

*If you're not sure your idea will pan out in the marketplace, join the party. No one ever really knows as long as it remains "an idea." Commit to giving it a life.

*If you're afraid of quitting your job at this point, don't. Start the venture part time, see what the market says, and then decide your next steps.

*The need for seed capital may be an issue but don't let it stop you. Scale back the scope of your trial balloon, prove it can fly and the money will find you.

*Risk is a reality you may not be used to. If you work for someone else, they are rolling the dice. If the chance of losing anything is far too great for you to contemplate, stay focused on your job. But accept the fact that chances are good you'll never be an entrepreneur.

And that someone else will likely bring your brainstorm to market.

Potentially Dangerous Decisions to Avoid When Starting a Business

You’re ready to launch a business and anxious to get things under way.

Keep these things top of mind to steer clear of the roadblocks and pitfalls and making decisions that could create more problems than solutions.

1. Picking a partner who isn’t going to work out.

After starting a business, you'll find some people will want to join your party. Sometimes this can be a good thing. Other times, it won't be so much so.

In addition to considering the facts about a potential partner's background and expertise, rely on your gut instinct about whether someone is a good fit. As much as you might want things to work, sometimes you will have a nagging feeling that it won't. Go with that.

2. Taking startup capital when it's not needed.

Sure it’s a confidence booster that someone believes in you and has offered to invest in your company. But when your company starts to do well and you realize that you didn’t need the startup funds you received, you won't be happy knowing that someone else owns 25 percent of the business.

3. Staying at the original job.

You can’t do two things at the same time. Once you know for sure that you’re ready to take the leap and go out on your own, sever ties with your employer so you can devote 100 percent of your time to your business. If you’re not fully invested in it, the startup won't be able to take off the way you need it to.  

4. Hiring family and friends.

Your sister-in-law is really good with numbers. Your college roommate is really smart. And both need jobs. But do they have the requisite skills needed for the business? You may figure they're sufficiently smart and motivated enough to figure things out, but don't take that risk. If they have actual experience and expertise related to your product, that's one thing. If they don't, take a pass.

5. Buying a lot of equipment and supplies.

Sure it's fun to have a reason to buy the very latest electronics or the most up-to-date equipment. But seriously consider if it's needed or if you can make do with the existing computers and skip the completely decorated and supplied office. Hold off on purchasing to see what you'll really need on a day-to-day basis.

So start your business. But go in with your eyes open about what makes sense and what does not. Making solid decisions from the outset will create a strong foundation for your business that will be easy to build on and help it succeed.

3 signs you’re NOT an entrepreneur, yet

Keep calm and Hire yourself...

It seems that everyone is trying to become an entrepreneur these days, and we support that movement. In fact, we believe that the changing economic landscape will require people to become more entrepreneurial.

But of course, becoming an entrepreneur is in no way as easy as they make it seem on television. Entrepreneurs share certain characteristics that set them apart from those who work as part of larger organizations. Whether or not they’re born like that or become that way over the course of their lives is another topic, although I believe it is primarily the latter.

After more than a decade of being an entrepreneur and meeting some of the best in the business, I have a strong idea as to what makes us tick. More importantly, I can quickly spot tendencies in people that let me know that they are not ready to be an entrepreneur.

You are probably not ready to be an entrepreneur if:

#1 You can’t stand the thought of someone not liking you

Creating and running a business is about pushing boundaries and challenging the status quo. It also requires quick thinking and decisive action on a daily, if not hourly basis. Every waking moment of your life revolves around making the best possible choices for the company. Somewhere along this path you are going to face choices that will make someone unhappy. If the discontent or disapproval of others makes you uncomfortable, you might want to rethink starting your own business.

#2 You look forward to the end of the day

Nothing tells me someone is not really an entrepreneur faster than the following comments” I can’t wait for Friday” or “I can’t wait for this day to end.” The concept of a workday and “time off” means very different things to an employee versus and entrepreneur. If you ask any of the great entrepreneurs out there, they will tell you that the day never really ends and that they wish that there was actually more time in the day to work on their businesses.

#3 You place blame anywhere but the person in the mirror

A simple way to spot someone that might be fooling themselves into thinking they are an entrepreneur is hearing them place blame anywhere but themselves. The blame game often permeates in large organizations and corporate America. But, all it does within a startup is create dissent in the ranks. The truth is that as an entrepreneur, everything is your fault. You built it, you profit from the end result, you run the show and you make the decisions. Placing blame on anyone but yourself is a losing battle.

—

Good leaders generally avoid all the tendencies on this list. They don’t need to be liked, they don’t check out until the job is done, and they truly embrace accountability. If you’re honest with yourself and these characteristics don’t apply to you, you will have a bright future as an entrepreneur. If not, don’t worry, anyone can get there it just takes time and hard work.

7 Risks Every Entrepreneur Must Take

Risk-taking is almost synonymous with entrepreneurship. To start and support your own business, you’ll have to put your career, personal finances and even your mental health at stake.

For most, the prospect of making your own decisions and being in charge of your own destiny is worth it. But if you’re going to be successful as an entrepreneur, you have to be prepared for the risks and challenges that come with it.

The following are seven risks that every entrepreneur must take, from ideation to ongoing development:

1. Abandoning the steady paycheck.

Before you venture into the world of business ownership, you’ll first have to say goodbye to your current job, and in some cases, your career. Some people have the luxury of a backup plan -- an option to resume your career in case things don’t go well in your independent business.

But for most starting entrepreneurs, the choice is a risky plunge. There’s no guarantee of your personal income, especially in the first few months and years of your company’s existence, and you’ll probably be too busy to secure or sustain an alternative line of income.

2. Sacrificing personal capital.

Some entrepreneurs are able to start their ventures relying solely on external funding. That usually means a collection of angel investor contributions, government grants and loans, and results from crowdfunding campaigns. But many entrepreneurs also have to dive into their own bank accounts and personal savings to get things started.

You may not need to completely liquidate your nest egg, but you will have to front at least some personal money -- and that means abandoning, or at least diminishing, your safety net.

3. Relying on cash flow.

Even if you have a line of credit, securing a regular cash flow is difficult and stressful. You can position yourself for a profitable year, but still struggle with the day-to-day necessities if your revenue doesn’t match or exceed your costs in a timely manner.

Bills can add up quickly, and if you don’t have enough revenue to support your outgoing cash flow, you could run short of money for paychecks or be forced to dip into emergency funds. Be prepared to address it daily, or at least weekly.

4. Estimating popular interest.

No matter how much research you do or how many tests you complete, you’ll never be able to estimate popular interest in your business with perfect accuracy. People are somewhat unpredictable, which could put a giant hole in your otherwise sound plans.

Even when all the data appears to be in your favor, there’s a chance you’re overestimating the interest in your company, and if your projections are off, your entire financial model could implode.

5. Trusting a key employee.

When you first start a business, you won’t have a full team of employees working for you. Instead, you’ll probably have a small, tight-knit group of people working tirelessly together in an effort to get things up and running. You’ll have to put an overwhelming amount of trust in them, especially if they have special skills that are hard to find and are willing to start work at a lower salary than the industry standard.

For example, if you hire a single, experienced lead developer to work on your product over the course of a few months, you’ll need to have absolute trust in their ability to get the job done on time. Otherwise, your timeline (and your product) could be fatally compromised.

6. Betting on a crucial deadline.

Startups are, by nature, forced into strict timelines for their product launches and milestone goals. Their finances are fragile, and their investors are eager to start seeing the wheels turning. As a result, most entrepreneurs are forced to make multiple goals contingent on a handful of deadlines, and those deadlines become absolutely critical.

Be prepared to stay up at night worrying about your ability to hit those deadlines, and coming up with contingencies if you cannot.

7. Donating personal time (and health).

Entrepreneurship takes a toll on the average person. You’ll spend countless hours doing work to make your company successful, and your remaining hours worrying about what you have or have not done thus far. You will lose sleep, you will miss out on personal time, and you will experience much more stress than usual.

The rewards of entrepreneurship often outweigh these personal risks, but you have to be prepared to live this type of lifestyle.

Risks shouldn’t steer you away from pursuing entrepreneurship. Instead, see them for what they are: necessary obstacles on a greater path. There’s no way to avoid the risks you’ll face as an entrepreneur, but by recognizing them, you can prepare for and mitigate them.

Smart Ways to Reduce Startup Stress

In an interview for a Managerial Position.
HR-so sLy, how do you handle stress at work?
sLy-nah! I don't get stressed =)

To be successful in the startup world requires an unrelenting amount of determination, persistence and trust. More than anything, though, it takes resilience to deal with the stress that seems to perpetually grow and not show any sign of slowing down.

Of the myriad strategies to execute and the relationships to develop as an entrepreneur, the stress associated with everything necessary for success can be unrelenting. Just when you thought you were “good,” 10 more to-dos get thrown onto your list. Here are six smart ways to reduce the startup stress:

1. Get rid of the to-do list.

Checklists have an unwelcoming way of growing and growing and growing. For me, the more unchecked boxes that appear in my little green notebook, the heavier the weight that bears upon my shoulders.

To-do lists create an illusion of productivity and priority. What was at the top of your list today may be thrown to the wayside tomorrow. Instead, try this: write an “I did” list that keeps track of your productivity. This way, you’re motivated to add to the list as opposed to feeling disheartened if you don’t.

2. Release your inner writer.

A 2005 study on the emotional and physical health benefits of writing included two groups of people. The first group was tasked with writing about stressful life events while their counterpart was instructed to write about more neutral topics. The results: writing three to five times for 15 to 20 minutes over a four-month time frame positively impacted their overall health.

3. Forget the goals. Focus on process.

I know. Hearing the word “process” makes those unshaven hairs on the back of your neck stick up because the last thing anybody needs is more rules. However, the reality is that the learning lessons and “fruit” of learning occur along the journey of attaining a goal, not in achieving it.

If you’ve ever played on a team then you know that consistency is what yields a win -- the daily grind of showing up and applying what you learned. It’s not so much the “plays” you learn but the habit of learning that becomes the winning process.

4. Fail fast.

While learning from successes can certainly reinforce what’s “right,” it doesn’t “fill the void” of what can be improved. An oversight, a slippage in judgment, a minimal effort or an unsuccessful attempt are the best takeaways from failure because they build your knowledge base.

Success or failure is only determined by where you stop. The faster you iterate through the cycle of create, innovate, reiterate (i.e. learn), the sooner you can apply those lessons towards the next great idea. One caveat: be sure not to disregard being deliberate or thorough for being hasty.

5. Burn it off.

It has been said before and I’ll say it again: exercise is one of the best stress reliefs out there. Rigorous activity for just 20 minutes, three times a week has been shown to reverse the symptoms of depression caused by stress. Remember, it’s not the goal that’s important but rather the process, or routine, to follow that’s the moneymaker.

6. Exercise your entrepreneurial chivalry.

Attitude is contagious. Random acts of kindness help brighten anybody’s day. The person on the receiving end will be pleasantly surprised that you went out of your way and in return, you'll feel positive from helping another.

On the one hand, stress is no fun as it eats away at your purpose. On the other hand, though, it serves as a fuel towards that same ambition. Manage your stress and you manage your entrepreneurial impact.

(...by the way after the interview, I was Hired)

The Joker Entrepreneur

I have always been a fan of Batman but moving from the corporate world to entrepreneurship.
I had a change of heart.

Bruce Wayne was born a Billionaire... I was not...Joker was a joke but he did made a mark in Gotham.

When creating a new business, be The Joker from Batman. With a bit of dark comedy, I believe we can take some quick lessons around the mindset of an entrepreneur.

1. "Do I really look like a guy with a plan? You know what I am? I’m a dog chasing cars. I wouldn’t know what to do with one if I caught it. You know, I just… do things."

Be the entrepreneur without restrictions, be the entrepreneur chasing untenable goals.

Being an entrepreneur is the chance to create something new, something that will be a complete failure or a complete success, without any middle ground. So do not restrain yourself to tried out models, to tried out formulas, but more important, do not restrain yourself to a goal!

You do not know what is going to happen, so be open-minded.

2. "If you’re good at something, never do it for free."

Sometimes is not about the money...When you are good at something, please do share your skill, talent and experience, but you have to keep in mind, why you are doing so and if is the best investment.

Every help you provide can be seen as an investment. You can help someone that one day will help you back. You can be helping as we speak a new company to grow, and one day they will hire you.

Be always available, but be smart to whom!

3. "Now, our operation is small, but there’s a lot of potential for “aggressive” expansion. So, which one of you fine gentlemen would like to join our team? Oh, there’s only one spot open right now, so we’re gonna have…Tryouts. Make it fast."

Supply and demand are two forces present in our everyday decisions. When you have a project, you may at some point control one of those two forces (but never both together).

It is essential to learn how to regulate each one of those forces to be successful.

4. "This city deserves a better class of criminal. And I’m gonna give it to them."

Believe yourself and your team!

*-*

I really appreciate that you are taking the time to read this post.

Any comments, experiences, advice or rants, are welcomed!

Facts About Entrepreneurs That May Surprise You!

Age doesn’t matter:

The average and median age of company founders when they started their current companies was 40. In fact, people between 55 and 64 have the highest rate of entrepreneurship in America. That means it’s never too late to follow your dreams and start a business.

Education Matters:

Turns out, 95.1 percent of respondents had earned bachelor’s degrees, and 47 percent had advanced degrees.

You can have a relationship:

Just over 69 percent of respondents indicated they were married when they launched their first business. You may find your significant other is your biggest fan and your main source of emotional support.

You can have kids:

59.7 percent of people indicated they had at least one child when they launched their first business, and 43.5 percent had two or more children. At least where kids are concerned, are always ready to give you a hug when you need it most.

Keep trying:

The majority of the entrepreneurs are serial entrepreneurs owning, on average 2.3 businesses. So keep trying. The only time you truly fail is when you give up and refuse to try again.

Passion is Important... And So is Building Wealth:

74.8 percent of respondents indicated the desire to build wealth as an important motivation in becoming an entrepreneur. So feel free to change the world–and in the process change your financial picture as well. There’s nothing wrong with trying to do both.

Most Entrepreneurs are Born Entrepreneurs:

Only 4.5 of entrepreneurs said the inability to find traditional employment was an important factor in starting a business. Entrepreneurship isn’t the last option for most people– it’s the first.

Working For Someone Else Builds a Solid Foundation:

The majority of entrepreneurs have worked as employees at other companies for more than six years before launching their own companies. What they learned was invaluable– both in terms of what to do and in terms of what not to do.

Parents Still Dream of Big Things for Their Children:

Entrepreneurs are usually better educated than their parents. Play it forward by working hard to set your children up for even greater success than you achieve.

But That Doesn't Mean Entrepreneurs Follow Their Parent's Paths

Entrepreneurship doesn’t always run in the family. 51.9 percent of entrepreneurs were the first in their families to launch a business.

Tips for Finding Seed Funding, Starting With a Close Look at Your Pocket

"I may not be Superman, but I am SUPER!"

When starting up a business the "start up fund" in most cases is the HUGE road blocks among entrepreneurs. Here's a couple of tips to help out.

1. Do it yourself

The sooner you involve investors in the life of your venture, the bigger their control and ownership share per peso. If you truly believe in the venture, check your own pockets first before seeking outside funding. One of the best moves you can make as a startup founder is provide the seed funding yourself. If you have savings, credit cards, a mortgage-worthy house, a classic comic book collection, or other valuable assets, you should consider it. Doing so will prove to yourself that you truly believe in your venture, give you credibility in the eyes of future investors and leave you in full control of the venture.

2. Friends, family and you

For seed level funding, I feel it is fine to approach close friends and family, as long as you are willing to invest cash yourself. If you are not willing to put up your own money, it means you are not ready. So get back to refining the idea and don’t ask anyone for funding until you are willing to mortgage your own house.   

3. Don’t expect an investor to pay for yesterday

I have never seen an investor willing to reimburse founders for the number of hours they spent at the workbench perfecting their idea. To investors, past efforts don’t count, only results. It doesn’t matter how much blood, sweat, tears, time and money you’ve put into your idea, your startup’s worth is established by the investor’s belief in you and your idea. So make sure you have something of value to offer before you ask for funding.   

4. You need a paycheck

Investors want to see that you are deeply committed to your own idea but that doesn’t mean you should work for free. The best way to impress your investors is to fully dedicate yourself to adding value to the startup – that is your job. You should not be distracted trying to figure out how to pay your mortgage. The investor’s job is to provide funding. Let them do that.

5. Do your math homework

My definition of seed funding is enough financial support to keep you going for three to six months, so you are ready for the next step. The “next step” could be anything from having a refined prototype to attract future investors, to putting a viable product on the market and starting the revenue stream. Do the math before you ask anyone for money. You need to be as accurate and complete in your estimates as possible.

6. Don’t over seed

Some folks feel there is no such thing as “too much money,”but I believe many startups become overwhelmed if they attract a landslide of cash. Take only what you really need. That will keep you focused and minimize your obligation to others.  

7. Customers are always right

A source of funds, even better than your own wallet, is from customers buying your product or service. You may not have your own final product line yet, but you may be able to be a reseller of related products in your target market. This will allow you to generate revenue, get your name out in the market place and gain a much better knowledge of your customer.  

Don't sell an early version of your own product unless you are absolutely sure you can deliver quality. Reputations, especially bad ones, rise quickly and stick like glue.  

Another caution. Don’t use customer preorders to fund the startup. Besides the fact that you could get into legal trouble if you fail to deliver, your initial customers are likely to be important to you for years to come, so you need to make sure they are happy with your project and your company.

8. Don’t fool with fools

To raise seed funding, the old saying is to go to friends, family and fools. But I recommend only close friends and family and stay clear of the fools. You might convince a naïve person to invest in a half-baked idea, but even if you have the best of intentions, it is just not ethical. And who wants to deal with a fool anyway?   

9. Investor or lender?

At the seed level, you are better off taking a loan than asking for an investment. Let’s face it, if you get money from family or friends, they are probably just trying to help you out and not really interested in being investors. If it is a small enough amount of money, you’ll be able to pay them back over time even if the venture fails.If the venture succeeds, you can pay them back quickly and you have not given up any stake in the company. Everybody wins.

10. All Peso's are green

It doesn’t matter if the funding you put in the company is your own last dollar or funds from the richest person on Earth. You need to treat every peso with the same care. This is your fiduciary obligation, not just a technique to show potential investors you are frugal.

11. Try crowdfunding now

If your idea is good, you are skilled at making clever videos and you have the energy and connections to wage a strong social media campaign, you can raise serious money through crowdfunding. Don’t think your idea is too small to get the proper attention.

I suggest crowdfunding with some urgency as I worry that government regulations will soon put such sites out of business.  I hope I am wrong.