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Tag: Business Ideas

  • Ask Co-Founder of Netflix Marc Randolph Anything: How to Watch | Entrepreneur

    Ask Co-Founder of Netflix Marc Randolph Anything: How to Watch | Entrepreneur

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    Marc Randolph, the co-founder of Netflix, joins us for another episode of Ask Marc, a live Q&A series about starting and growing your business. The event will begin on Tuesday, September 26th at 3:00 PM ET, streaming on our YouTube, LinkedIn and Twitter channels.

    Where can I watch Ask Marc?

    Watch and stream: YouTube, LinkedIn & Twitter

    You can watch on your phone, tablet or computer. Ask Marc will be shown in its entirety on YouTube, LinkedIn and Twitter

    What time does Ask Marc start?

    Date: September 26th
    Time: 3:00 PM ET

    The episode kicks off at 3:00pm ET.

    Why should I watch Ask Marc?

    Get free business advice directly from the co-founder of Netflix, Marc Randolph. Marc loves helping founders and small business owners, and this your free opportunity to ask him any of your questions about topics like:

    • Starting a business
    • Growing a business
    • Raising money
    • Building marketing campaigns
    • Best practices
    • Anything you want to know!

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    Entrepreneur Staff

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  • 4 Ways to Increase Efficiency Within Your Business | Entrepreneur

    4 Ways to Increase Efficiency Within Your Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    This story originally appeared on Under30CEO.com

    Operational efficiency is always important for a business. Everywhere you turn, there are threats to stability, from supply chain disruption to war in Europe to inflation in the US and even deflation in China.

    Efficient activity and productive operations haven’t been more important to successful business since the Great Recession started fifteen years ago. With that in mind, here are a few techniques and strategies you can use to improve operational efficiency in your company.

    1. Make communication a perpetual investment

    Optimization isn’t something reserved for search engine marketing or data and analytics. It also applies to more nuanced activities — like communication.

    Related: What Are The Safest Investment Options for Earning a Good Return Over Time? A Financial Expert Explains.

    It’s easy to set a vague standard of “prioritizing communication” at work. But the truth is, healthy communication isn’t a set-it-and-forget-it kind of activity. It requires ongoing investment, adjustment, and improvements.

    Forbes and Harvard Business Review Advisory Council Member Sharesz T. Wilkinson points out that communication is the “core activity” at work. It is the number one thing we all do. Wilkinson adds that despite its critical role, there is a significant skill gap between current employee communication skills and those required to unleash higher efficiency and, by extension, greater success.

    Both the need and lack of communication skills make it a key investment. Businesses that want to remain efficient must start by addressing this core activity. You can do this through perpetual upskilling and setting communication standards.

    You can also improve and consolidate your communication tools and channels. Using a platform can facilitate faster, clearer communication by seamlessly recording and sending videos and screenshots between coworkers. This reduces the number of unnecessary meetings, improving communication and enhancing productivity.

    2. Consolidate your tech

    Speaking of consolidation, the concept should be applied to much more than communication. Technology has been a godsend for businesses everywhere, but it is a two-edged sword.

    A quarter of the way into the 21st century, many companies that previously basked in the efficient power of cutting-edge tech solutions are now mired in an expensive and complex tech stack that keeps growing. The solution? Consolidation.

    While there are still plenty of companies leading the charge into new ideas and iterations of technology, a growing number of brands are focusing their software development on consolidation. Tools like Trello bring everyone’s workflow into a single platform, boosting productivity in the process. Slack helps communication take place in a single app.

    Related: 14 Proven Ways to Improve Your Communication Skills

    Investing in both targeted and comprehensive consolidation tools like these can have a dramatic effect on efficiency. It removes complex barriers and siloed information and helps teams tap into the true productive power of their technology.

    3. Try a SOC 2 audit

    A SOC 2 audit is a framework created by The American Institute of Certified Public Accountants (AICPA). The system focuses on managing client data in a trust-approved way and emphasizes things like data security, confidentiality, privacy, and integrity.

    While the focus of a SOC 2 Audit is often on data privacy and security, it is also a powerful way to improve efficiency. A thorough audit of your data management can improve the availability and processing of information within your organization.

    In addition, the security offered by the audit can help you avoid downtime or other time and resource-related costs that come with a security breach. By investing in up-to-date and strong data management practices, you can create a clean environment that keeps your company firing on all cylinders.

    4. Consider a 4-day work week

    Sometimes, the right thing to do is the most counter-intuitive option. In the case of looking for greater efficiency and productivity for a brand, a 4-day work week may be the solution.

    The efficiency angle actually isn’t too hard to grasp here. If everyone only works for four days a week, they will be able to come to work more rested and apply themselves more fully throughout their shorter work week.

    Surprisingly, studies have shown that a 4-day week isn’t just more efficient. It can also be more productive and improve overall job satisfaction and well-being.

    A shorter workweek enhances productivity by motivating and equipping employees to get more done in a smaller window of time. The end result, when observed for 18 months, was that workers could still get the same amount of work done in 33 hours as they originally had done in 38.

    This means more productivity in less time and with fewer resources and overhead. Translation: it’s efficient.

    Increasing efficiency within your business

    We are in an economic environment where businesses don’t have the luxury of making mistakes. Efficiency and productivity are no longer tools to excel. They’re required for survival.

    As you guide your business, remember to invest in efficiency — no matter what form it may take. Improve communication. Consolidate tech stacks. Audit data management. Embrace a shorter work week.

    If you can make these kinds of changes with confidence, you can pave the way for your company to survive the present and thrive in the future.

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    Kimberly Zhang

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  • How Do You Know If You Should Rebrand? Here’s Some Advice | Entrepreneur

    How Do You Know If You Should Rebrand? Here’s Some Advice | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Should you rebrand? On average, 74% of the S&P companies rebrand within the first seven years. Rebranding is a significant endeavor that can evoke a mix of emotions for companies. It involves many variables and can be both exciting and scary. There are a lot of questions my clients have on whether or not they even need to rebrand.

    At my company, Strategic Advisor Board (SAB), we help clients through opportunity analysis and strategic planning. Sometimes in the strategic plan, we advise the clients to rebrand. If our clients are the ones who bring up wanting to rebrand, we always ask them a few key questions first:

    1. Why do you want to rebrand now?
    2. Have your clients changed?
    3. Is your brand out of date?
    4. Is your growth potential being impacted?
    5. Is your brand no longer in line with your current clients’ needs and wants?
    6. Have you outgrown your brand?
    7. Is it difficult for your clients to tell your brand apart from your competitors?
    8. Has your services or business model changed?

    The first question holds significant importance. At times, businesses consider rebranding simply because it’s been a while since they did any changes to their image. But the why behind the rebrand is what gives way to your brand strategy.

    Related: Is Rebranding the Right Move for Your Company? Here’s How I Knew It Was Time

    When rebranding, what key areas do you need to focus on?

    Brand audits are crucial for aligning your brand identity with your new brand strategy. There are three types of rebranding: brand refresh, partial branding and full branding. A brand refresh will only change a few minor elements, usually within the visual side of things.

    This could include changing a few elements in a logo and or slightly modifying the brand color palette to keep it modern. A partial rebrand would include changing some elements but not others. A full rebrand would change all elements of the brand as if you were a brand-new company. Whichever route you decide to go down, keep in mind that a brand strategy has to do with your company’s positioning in the marketplace and there needs to be a goal in mind of why the strategy is being done in the first place. These are elements of your brand you could change to suit your strategy:

    Business name

    Rebranding can include changing your business name. Start with your brand name. Does your name still connect with your audience? If you’re trying to reach a new audience, does it connect with them? A good name is unique and uses clear, easy-to-remember words. Stay away from trendy words or slang since words can change meaning over time.

    Mission and vision statements

    Do they still align with your company’s focus? Remember, a good mission statement should include a company’s ethics, values, culture and goals and it should affect how your employees and stakeholders operate. It should be clear and concise and easy to understand the first time it’s read and keep it around 1-3 sentences long. Make sure you re-evaluate your values and see if they fit with your new image. A good vision statement should include looking into the future and explaining where the company is going. Also, it should be 1-2 sentences max.

    Related: How to Rebrand Without Losing Your Search Engine Rankings

    Logo design

    I’ve included typography and brand colors in this section as they’re all a part of the visual components of your brand. Brand colors can increase brand recognition by 80%. When most small business owners start creating their brands they’re not thinking about the psychology of colors and how they play on human emotions.

    There’s a whole world behind brand the psychology of color theory and if you look at certain industries you’ll notice there are some common themes in colors. For example, in the restaurant industry, red is used in order to create an appetite. So don’t underestimate the power of brand colors in your logos! A good logo will be simple, look good on all scales, whether it’s on a business card, website or billboard, and it will evoke a sense of feeling of what the brand’s personality is like. If you’ve noticed, in most of the mentioned categories of rebranding, a common theme is simplicity. It’s no wonder that 95% of the top 100 brands in the world only use one to two colors in their logos.

    Brand voice

    Your brand voice is the personality that comes out in all of your marketing and it must be consistent in all communication you have with your clients. From your online presence to the way your employees conduct themselves within their customer service roles.

    It’s important to stay consistent. I would argue this is one of the most important parts of your brand because it’s how you directly connect to your clients. So when you’re rebranding think about if your current voice reaches a demographic you want to continue reaching, or if you want to branch out to another demographic, will they resonate with your brand personality? Maybe your current demographic has connected well to your informal voice but in order to expand to another demographic you would be better off adding a bit of humor to the mix.

    Related: Does Your Company Need A Rebrand? Here’s Why, When and How You Should Do It.

    Tagline

    Taglines aren’t necessary for your brand but they do help in creating first impressions of what your business is all about. A good tagline is short, relevant and creative and it helps with your company’s brand identity and recognition in turn setting you apart from your competitors.

    There are a lot of great reasons to rebrand, just keep in mind that your rebrand should help drive brand loyalty and engagement, create excitement, increase revenue and have a clear purpose and strategy behind it. By updating either some or all of your branding through your business name, mission and vision statements, logo, voice and tagline, you’ll be able to reach new markets, stay modern and stand out from competitors.

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    Jason Miller

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  • How to Think Like an Investor When Preparing Your Pitch Deck | Entrepreneur

    How to Think Like an Investor When Preparing Your Pitch Deck | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Startups are no longer confined to their local markets for fundraising. In the last decade, global venture capital (VC) investment in the startup ecosystem surged from $347 billion in 2010 across 31,623 deals to $671 billion in 2021 across 38,644 deals.

    Startups are looking for more than just cold monetary transactions to fuel their growth and global exposure.

    Today, successful startup fundraising boils down to one single most important thing: the pitch deck. It’s still the golden ticket for startups to secure both local and global VC funding. However, there are strategic differences between these two.

    Related: Stop Giving Boring Presentations — Follow These 6 Presentations Hacks to Captivate Your Audience

    The differences between the investment strategies of local and global VC firms

    Local VC firms usually invest close to home, often within their own country. This is usually because they know their local market well, including its trends and regulatory nuances. Moreover, they often invest based on personal connections and grasp local culture and business habits well. This helps them pick and support startups that fit well in their region.

    Local VC firms typically invest in newer startups but in well-known markets. They’re also a bit more careful with their investments, building trust and checking everything before investing.

    As their name suggests, global VC firms invest all over the world. They’re open to investing in startups from different countries, giving them a wider view and spreading their risks. Usually, they have a mix of investments in different areas and industries. And they’re especially interested in new tech and business ideas that can change industries.

    They mostly invest in startups that have already shown some success and focus on newer markets. They’re willing to take more risks and generally quicker in making decisions. While they, too, check everything before investing, they are more likely to invest if they feel there is an excellent opportunity.

    So, it’s fair to say there are some basic differences in their investment perspectives. That’s why your pitch deck must be more than just a presentation for securing global VC funding and exposure.

    Let’s dig deeper into the stats.

    1. Techcrunch analyzed that VC investors are spending 24% less time evaluating pitch decks in 2022 than in 2021.
    2. According to Infobrandz’s recent research paper, global startup funding astonishingly crashed down from $42 billion in 2021 to $25 billion in 2022, 40.5% less than in 2021, as investors were looking for more risk-averse investment opportunities.
    3. A recent industry research report published by AstelVentures highlights that you have to capture investors’ attention in the first 30 seconds or first 2 to 3 slides of your pitch deck presentation else you risk losing them for the rest of the presentation.

    Factually, it’s getting tougher to win global investment, and your pitch deck can turn it around.

    Related: Here’s What’s Brewing in the Minds of Startup Investors

    Proven pitch deck trends

    Let’s now study the trends and understand the investors’ perspective here. After all, investors see hundreds, if not thousands, of pitch decks each year. So, finding what sets the successful ones apart is crucial so you can learn what investors look for and optimize your pitch deck accordingly.

    First, visual content plays an increasingly crucial role in a pitch deck. This is because it helps to simplify complex information, making it easier for investors to understand your business model, market opportunity, and growth strategy. A well-designed pitch deck can make a lasting impression, helping you stand out in a sea of startups. Investors also want to see that you’ve identified a significant problem and have a unique solution that is different and better than what’s currently available, as this directly affects your sales. Moreover, investors are looking for businesses that can scale over time. They want to see a large and growing market for your product or service to ensure long-term returns.

    Most importantly, they want to know how you will make money. This is a key question investors want answered to see a clear and viable business model that shows potential for high returns. But one key factor is as important as the numbers and aesthetics — a factor often missed in pitches. Yes, I’m talking about the human factor!

    Investors invest in people as much as they invest in their business ideas. They want to see a passionate, capable team with the skills and experience to execute the business plan. After all, it’s often the grit and determination of the team that makes all the difference when a business faces challenges in a volatile market.

    How to craft a pitch deck in 2023

    Now that we understand what investors are looking for, how do we craft a pitch deck that ticks all the boxes?

    Here are the essential elements of a Pitch Deck:

    1. Storytelling and design — A successful pitch deck tells a compelling story about your business idea and team. It uses visual content to engage the audience, create an emotional connection, and make the business idea come alive. The pitch deck’s design should be professional, clean, and on-brand.
    2. Data and validation — Investors want proof. Include data that validates your market opportunity, business model, and growth projections. This could be in the form of market research, customer testimonials, or key performance indicators that are presented aesthetically.
    3. Call to action — End your pitch deck with a catchy and convincing call to action. What do you want investors to do next? Whether scheduling a follow-up meeting or investing in your startup, make sure it’s clear and compelling.

    Understanding the investor’s perspective is key to crafting a successful pitch deck, as the future of global fundraising is likely to be even more interconnected and competitive. Further, startups that can adapt to the evolving funding landscape, leverage technology, and align to the multi-cultural nature of the business will be well-positioned to stand out in the international arena.

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    Vikas Agrawal

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  • 3 Ways to Start Your Startup On The Right Foot | Entrepreneur

    3 Ways to Start Your Startup On The Right Foot | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    This story originally appeared on Under30CEO.com

    You’ve got your great business idea, but how can you execute it? It’s easy to feel like passion and excitement are all you need to get a business off the ground. The rest will come together as you go along, right?

    Wrong. Unfortunately, inspiration and emotion do not make a successful business. The good news, though, is that if you’re willing to invest some time, effort, and resources, you can dramatically increase your chances of success.

    There are many easy-to-overlook factors that, when tended to properly, can give your startup a much higher chance of taking off. If you’re starting a business, here are three key areas to take into consideration as you prepare to get things up and running.

    Related: 2 Grammy-Nominated Musicians Share What They Consider the Greatest Assets to Any Startup

    1. Purposefully develop your leadership skills

    Focusing on your strengths is tempting as you look for ways to get a company off the ground. Maybe you’re good with money, have a creative eye, or a history in sales.

    These are all good things, but there’s one area that you have to be comfortable with more than anything else if you want your startup to get going on the right foot: leadership.

    One of the easiest business areas to underestimate is the demands and complexities of being an executive. CEOs and other members of the C-suite aren’t just responsible for making practical decisions in a startup. They also need to establish the heart and soul of your company.

    If you and your founding partners need help finding your footing as a founding team, take time to invest in developing your leadership skills. You can do this by finding mentors or reading books on leadership. You can also work with an executive coaching firm to guide you.

    If you’re launching a business, make cultivating leadership skills a priority.

    2. Keep your founding team lean

    As you look for ways to help your startup thrive, remember that you don’t want to inflate your staff with unnecessary hires. A lean, mean founding team is almost always the best recipe for success.

    As you consider hiring your initial staff members, don’t “follow your gut” or listen to third-party advice — and for goodness sake, don’t hire your family members or best friends because they need work.

    Related: This Startup Is Reinventing the Yellow School Bus. Here’s Its Playbook for Winning Over the Hardest Customers (Like Public Schools).

    Instead, invest in a thoughtful, targeted hiring process. Co-founder of Under30CEO, Matt Wilson, recommends a three-step system for choosing each member of your bootstrap staff. This includes:

    • A phone interview
    • An in-person interview
    • A group interview and reference check

    Wilson adds that once hired, you should still keep an eye on new employees. “One of the hardest lessons I’ve learned with regards to staffing is that things are not always as they seem during the interview,” he says, adding, “Behavior, work ethic and attitude can shift once a new employee clicks out of interview mode and into work mode.”

    The takeaway here? Build your team thoughtfully. Make each hire slowly and evaluate each team member as they settle in. Make sure everyone is buying into your startup culture, vision, and mission — and they’re contributing to your group efforts and pulling their own weight, too.

    3. Stay flexible and ready to adapt

    Finally, remember to stay flexible as your startup gets off the ground. This is commonly referred to as a “growth mindset.” Stanford psychologist Carol Dweck coined the phrase as a way to differentiate from a “fixed mindset” — that is, a stagnant belief that your abilities, talents, and intelligence are inherent and unchangeable.

    In comparison, a growth mindset believes humans can grow and adapt to feedback.

    Related: Do This Simple Exercise to Unlock Your Potential, Says the Psychologist Who Coined the Phrase ‘Growth Mindset’

    While this is excellent self-help advice, it also applies to a startup mindset. As you build your business, remember to stay resilient, flexible, and ready to adapt to whatever circumstances arise as you go along.

    Pivots have saved many companies in the past. Sometimes these happen within the scope of a business, such as Netflix shifting from DVDs to streaming. At other times, it is a full-blown deviation. That’s how Slack was born from a failed gaming company.

    Whatever your startup’s initial goals may be, don’t be afraid to adjust them as you go along in the name of chasing success.

    So there you have it. Develop your leadership skills. Keep your founding team lean. Stay flexible and adapt when necessary. If you can master those three elements, you can give your startup the best chance of starting on the right foot.

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    Kimberly Zhang

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  • Why Benefits Can Be More Attractive Than Higher Salaries | Entrepreneur

    Why Benefits Can Be More Attractive Than Higher Salaries | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the cutthroat business world, attracting and retaining the best talent is a perennial challenge. Many employers often gravitate towards offering higher salaries to lure potential candidates. However, there’s a compelling case to be made about the effectiveness of offering employee benefits over mere salary increments. One of the most persuasive arguments lies in the realm of tax benefits. Here’s a deep dive into why you might want to adjust your compensation strategy.

    1. Tax Advantages Take the Lead

    For businesses, employee benefits are tax-deductible. This can significantly reduce the company’s tax burden compared to increasing salaries, making it more economically feasible. Furthermore, many benefits provided to employees, such as health insurance, are often excluded from taxable income, offering employees a double advantage: receiving the benefit and reducing their taxable income simultaneously. Think about it this way. Everyone needs health insurance and to save for retirement. Both essential needs are tax-deductible to the employer and the employee. It is far more efficient to buy/receive through an employer than take a higher salary and pay for these two essential needs with after-tax money. And it is far more effective to provide these benefits than paying a higher salary which means paying higher FICA taxes at 7.65% and higher workers’ compensation costs.

    Related: Listen to Trent Bryson’s ‘Grit Rising’ Podcast for Entrepreneurs

    2. Holistic Employee Well-being

    Offering benefits like health, dental, and vision insurance signifies a company’s commitment to the holistic well-being of its employees. A workforce that feels cared for in all aspects of their lives is generally happier, healthier, and more engaged.

    3. Loyalty and Retention Skyrocket

    A comprehensive benefits package can lead to reduced employee turnover. When workers feel they’re receiving long-term value from their employer, they’re less likely to jump ship, thus saving companies significant costs in hiring and training. This is especially true for employees who have dependents on their health insurance program.

    Related: 4 Critical HR Mistakes Companies Make That Hurt Their Growth

    4. Enhances Overall Job Satisfaction

    Benefits such as paid time off, professional development allowances, and wellness programs go a long way in ensuring employees are content and engaged, positively impacting their output and commitment.

    5. Financial Flexibility for Employees

    While high salaries can be enticing, they might not address some of the immediate concerns employees might have, like health costs or childcare. Benefits that cater to these concerns provide a form of financial relief and security. Additionally, newer benefit offerings like pet insurance and student debt relief cater to someone emotionally as well as financially.

    6. Positive Company Culture

    Cultivating a culture where employees feel valued often starts with the benefits package. Perks that promote work-life balance and well-being contribute to a more harmonious and productive work environment.

    Related: 6 Costly Mistakes CEOs Make Managing Business Insurance and How to Avoid Them

    7. Boosts Productivity

    Employees who don’t have to stress over healthcare costs or finding the next learning opportunity are more likely to be focused and efficient. This, in turn, drives the company’s growth. An example is financial wellness. If an employee continues to deal with the stresses of credit card debt, high interest rates on loans, and the feeling of never clawing their way out of financial troubles, they are more apt to sacrifice mental clarity for financial gain. Rushing off to a second job as a waiter instead of staying late on an important project is a prime example of this.

    8. Setting Your Company Apart

    In saturated job markets, what sets one company apart from another may not be the salary but the unique benefits they offer, making them a more attractive option for top talent.

    Benefits Have Team-Building Power

    While a competitive salary is undeniably crucial in the recruitment process, the long-term advantages of a robust benefits package, especially the tax incentives, cannot be understated. For the forward-thinking entrepreneur, this could be the game-changer in building a dedicated, satisfied, and high-performing team.

    For more information on setting up, improving upon, or benchmarking your own benefit programs, click here.

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    Trent Bryson

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  • 2 Grammy-Nominated Musicians Share What They Consider the Greatest Assets to Any Startup | Entrepreneur

    2 Grammy-Nominated Musicians Share What They Consider the Greatest Assets to Any Startup | Entrepreneur

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    We recently had an amazing conversation about the skincare brand Mother Science with the power couple behind it, Mike Einziger and Ann Marie Simpson-Einziger. They are both massively successful musicians — Mike is the lead guitarist of Incubus, and Ann Marie is a Grammy-nominated violinist — and they both have a deep passion for business. We sat down with the couple and picked their brains on how they could create a successful skincare business in a highly saturated market.

    Their insights can easily be applied to any startup or aspiring entrepreneur looking for the next big idea. So here are four business lessons we learned from the brilliant minds behind Mother Science that you can use to your advantage.

    1. Passion over everything

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    Entrepreneur Staff

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  • 5 Recession-Proof Businesses to Start in a Turbulent Economy | Entrepreneur

    5 Recession-Proof Businesses to Start in a Turbulent Economy | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Economic downturns are no joke. Recession throws a massive cog in the proverbial wheels of several established entrepreneurs as well as new startup owners. A recent study by Startup Genome found that a staggering 74% of startups saw their revenues plummet since the pandemic. Even more grim is how many of these (16%) were forced to lay off 80% of their workforce.

    No wonder, then, that companies are afraid to raise capital, or even start a business at all. Experts are warning about an impending global recession, so companies are apprehensive about scaling, hiring new talent and retaining the ones they have.

    However, not all startups struggle in times of recession and economic downturns. Some startups may, in fact, thrive during economic crises. As someone who has been in the VC industry for over a decade, sold several companies and launched an accelerator that helped over 200 entrepreneurs, I have learned that there is a crucial difference between startups that survive and succeed in a recession and those that struggle and fail. That difference is in the business model itself.

    As the CEO of Builderall, an all-in-one solution supporting over 20,000 small businesses worldwide, I have a bird’s eye view of the best-performing business models. Where other startups flounder, startups in our ecosystem continue to pull in more customers. In fact, we do not experience an economic downturn at all.

    If you are wondering whether to start your business, scale your startup or cut back operations, read on for the five recession-proof businesses I recommend during turbulent times:

    Related: 10 Businesses to Start That Can Weather Any Economy

    1. Service-based businesses

    Any time you provide a skilled service to your customers, whether online or offline, it’s a service-based business. For instance, a bookkeeping/accounting service or a digital marketing agency both provide services that require special knowledge and expertise. These companies are really crushing it today — and for more than one reason:

    • Their startup costs are low. Entrepreneurs can get started with a lower initial investment and fewer subsequent capital infusions.

    • They can operate with a minimal workforce. Companies can go fully remote with the advantage of tapping into low-cost talent markets, or they can go hybrid.

    • Faster turnover and revenue generation. Receiving payments from new clients and generating cash flow happen much more quickly.

    • Recurring payments keep the money flowing in. Service-based companies can benefit from employing subscription or retainer models. This guarantees two things: repeat customers and a continuous revenue stream in exchange for ongoing services.

    Customers are effectively fronting the cost, which reduces the necessity for venture capital or working capital. Then, three years later, they have built up a solid customer base of recurring revenue customers who simply keep paying on a monthly basis, and the money from those payments becomes your operating expenses.

    2. Influencer marketing

    You really can’t go wrong with being an influencer. It won’t be a stretch to say that influencers are ruling the digital world right now. Look at what Khaby Lame, Zach King, Addison Rae and Charli D’Amelio have achieved. During my years in business, I have closely followed the rise of several popular influencers, and I have found two common threads among all of them:

    One, all successful influencers work in a particular space or in a specific niche in which they are experts and know what they are talking about. And two, they are pure content creators, and their content resonates with their audiences, helping them attract more followers.

    Once you amass a substantial following on social media platforms such as Instagram, YouTube or TikTok — that’s when the magic begins. You leverage your online presence to engage with your audience and promote products or services, effectively becoming brand advocates for the companies you work with.

    3. Brand ambassadorship

    Being a brand ambassador is a close off-shoot of the influencer business. A brand ambassador has always been a cornerstone of successful marketing for several companies. Back in the day, when social media wasn’t a thing, only A-list celebrities or professional athletes and musicians would get top dollar for their endorsements.

    Like influencers, brand ambassadors also excel in specific niches. They position themselves as thought leaders or experts, and the association with them brings credibility to the brands they are endorsing. While influencer relationships are typically one-off arrangements, brand ambassadors generally work with the same brand for years and provide a deeper level of exposure and education for their audiences.

    Related: Scared of a Recession? Follow These 5 Tips For a Recession-Proof Business

    4. Online educators

    With upskilling and side hustling turning into major buzzwords, I have seen so many people asking, “What else I could do?” on social media platforms like Reddit and Twitter. Those who get laid off want to increase their skill set and willingly pay hundreds or even thousands for continuing specialized education rather than returning to college or seeking an advanced university degree. This is the major reason why online educators are making a killing by selling their courses online.

    People are learning all sorts of skills on e-learning platforms today. For example:

    How to turn sketches into finished digital artwork

    How to compose music

    How to create effective marketing funnels

    How to write screenplays

    Online educators are just normal people who are good at what they do. Becoming an online educator requires just taking the knowledge that they have, putting it into a course and selling it. They craft an exhaustive course structure and deliver courses that cover an extensive range of subjects, from practical skills to creative arts and everything in between. Platforms with user-friendly e-learning tools are making this easier than ever.

    Marketing, business, entrepreneurship, creative arts, coding and personal development are always popular with learners.

    5. Unique products

    Selling a unique product can be a tough nut to crack. But when a company achieves this feat, it can consider itself practically recession-proof. There are startups in the market that are selling a one-of-a-kind product to a narrow, but interesting, subset of consumers. It could be T-shirts, stickers, plush toys or anything else.

    And with the online platforms available today, it is so simple to launch an online shop, spread awareness and begin building a customer base. Paid ads are something that big companies use as they scale. But when you’re a small company, you can get creative and use Instagram reels and TikToks to drive audiences to your product. Try to create a niche product as opposed to trying to sell basic T-shirts to everybody, which is very difficult. Do something that’s very targeted to a specific niche. For instance, you can come out with a whole line of T-shirts for people who love unicorns.

    Related: 3 Key Strategies That Helped My Business Grow During a Recession

    At Builderall, we have not seen businesses negatively affected by the recession; if anything, it has been a positive catalyst for entrepreneurs. According to this recent survey by Gusto, 56% of individuals launched a business due to concern over inflation. The World Economic Forum reports that women entrepreneurs increased to 47% in 2022 up from 27% in 2019.

    So, while it may seem scary to try to launch or scale a company in today’s economy, with the right business model, now is the perfect time — and the future is bright.

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    Pedro Sostre

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  • 7 AI-Based Business Ideas That Could Make You Rich | Entrepreneur

    7 AI-Based Business Ideas That Could Make You Rich | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In today’s rapidly changing landscape, technology has seeped into nearly every aspect of our lives. One of the most influential technologies of the 21st century is Artificial intelligence (AI). It’s no surprise that AI is revolutionizing various sectors, including healthcare, transportation, entertainment, and more importantly, business.

    So, if you’re an entrepreneur with an eye for disruptive technologies, now is the right time to invest in an AI-based business. Here are seven AI-based business ideas that have the potential to make you rich.

    Related: What Every Entrepreneur Must Know About Artificial Intelligence

    1. Personalized health monitoring

    The healthcare industry is ripe for disruption, and AI has the potential to revolutionize the way we approach well-being and treatment. Imagine a wearable device that not only tracks basic health metrics but also predicts potential medical conditions before they become severe. By employing machine learning algorithms that analyze data on a person’s lifestyle, genetics and current health conditions, you could offer a subscription-based service that provides real-time health insights and early warnings.

    Revenue streams: Subscription fees, partnerships with healthcare providers, data analytics for medical research

    Challenges: Regulatory hurdles, data privacy concerns, high R&D costs

    2. AI-powered talent matching platform

    Recruitment is an expensive and time-consuming process for companies. You could develop an AI-powered platform that analyzes a plethora of factors — skills, experience, cultural fit and even nuances like work habits — to match job seekers with suitable employers. By continually learning from its matches, the AI could significantly increase placement accuracy over time, reducing employee turnover and recruitment costs.

    Revenue streams: Subscription fees from employers, premium features for job seekers, data insights for HR departments

    Challenges: Data accuracy, competition from traditional job boards and networking platforms, legal concerns over discrimination

    3. Customized e-learning experiences

    Traditional e-learning platforms offer a one-size-fits-all approach that doesn’t suit everyone. By leveraging AI algorithms that adapt to a student’s learning style, pace and strengths/weaknesses, you could create a more individualized learning experience. Your platform could serve students looking for K-12 tutoring, professionals seeking continued education or even hobbyists wanting to acquire a new skill.

    Revenue streams: Subscription fees, course purchase fees, partnerships with educational institutions

    Challenges: High-quality content creation, ensuring educational effectiveness, competition from established e-learning platforms.

    4. Sustainable energy management

    Sustainability is not just a buzzword — it’s a necessity. AI can play a critical role in managing energy consumption more efficiently. Whether it’s a smart grid that adapts to usage patterns or a home system that regulates energy consumption without human intervention, AI can offer solutions that are both eco-friendly and cost-effective.

    Revenue streams: Hardware sales, software subscriptions, partnerships with utility companies, government grants for sustainable initiatives

    Challenges: Infrastructure requirements, technological limitations, consumer adoption rates

    Related: The Future Founder’s Guide to Artificial Intelligence

    5. AI-driven content creation

    Content is king in the digital age, but creating quality content consistently is a labor-intensive task. An AI-based platform that can generate high-quality written, audio or visual content could be a game-changer. Such a platform could assist journalists, bloggers, marketers and even filmmakers.

    AI algorithms can not only generate content but can also optimize it for SEO, readability or audience engagement, providing an end-to-end solution for content creation.

    Revenue streams: Subscription fees, pay-per-content, licensing to marketing agencies

    Challenges: Maintaining content quality, handling the complexities of human language and creativity, copyright issues

    6. Smart agriculture

    The global population is growing, and with it, the demand for food. However, resources like land and water are finite. Smart agriculture solutions using AI can optimize yield by analyzing soil quality, weather conditions and crop health, among other variables.

    Imagine drones equipped with AI algorithms that can scan large agricultural fields, providing farmers with detailed reports on what actions to take. Your business could be at the forefront of making agriculture more sustainable and efficient.

    Revenue streams: Software licenses, data analytics, consultancy services

    Challenges: High initial costs, complexity of agriculture, adoption and usability

    7. Automated financial advising

    With more people becoming financially aware, there’s a growing demand for financial advisory services. AI can process huge datasets and generate actionable insights much quicker than a human advisor. An AI-based robo-advisory platform can offer personalized investment strategies, risk assessment and portfolio management, making it easier for people to manage their wealth. The financial sector is ripe for disruption, and an AI-based advisory service could be your ticket to untold riches.

    Revenue streams: Subscription fees, licensing technology, data monetization

    Challenges: Regulatory hurdles, customer trust, data security

    The possibilities are endless when it comes to leveraging AI in business. The key is to identify a problem that AI can solve better or more efficiently than existing solutions. Whether it’s healthcare, marketing, recruitment, finance, supply chain management, customer service or content creation, the potential for AI to revolutionize these fields is immense. Remember, the best time to invest in the future is now, and these seven business ideas are your stepping stones to achieving unparalleled financial success.

    Related: Exploring the Future of Artificial Intelligence — 8 Trends and Predictions for the Next Decade

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    Ashot Gabrelyanov

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  • Be Innovative, Not Just Creative — 2 Types of Innovation to Increase Your Profits | Entrepreneur

    Be Innovative, Not Just Creative — 2 Types of Innovation to Increase Your Profits | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Innovation is the source of critical differentiation in competitive markets. Unfortunately, innovation has become a buzzword for something that looks more like creativity in practice — or worse, incremental improvements. This conflation has had an undeniable detrimental effect on companies and consumers alike.

    Creativity is the generation of new ideas. While valuable, these concepts cannot always be marketed or commercialized. Instead of addressing true consumers’ met or unmet needs, they were generated based on technical know-how. Even when they can be commercialized, they don’t often drive revenue or profit growth as expected.

    On the other hand, innovation is driven by consumer needs and demands, especially unmet needs. Ultimately, innovation is the differentiator influencing consumer behavior, creating new revenue and increasing profit — all the makings of a market leader. Innovation is about transformation: achieving more with less, finding new ways of doing things and identifying ways to create new consumer demand. Especially in uncertain times, how do you significantly alter the playing field to your benefit?

    Two key types of innovation drive increased profits: new-to-the-world solutions and new-to-the-market solutions. For either method of innovation to be successful, executive leadership must build and foster a culture that relentlessly prioritizes listening to the targeted consumers it aims to serve. Innovation can happen only by harnessing the power of people — especially those with different ways of thinking.

    Related: 11 Innovation Strategies That Can Effectively Increase Your Businesses’ Growth

    1. New-to-the-world solutions

    New-to-the-world solutions are not existing products with incremental changes made; they are original in their approach to problem-solving and often create new categories that irrevocably change the market. New-to-the-world solutions require a deep understanding of consumers’ unmet needs and behaviors to accurately identify and address problems that consumers may not even realize they have. This means listening to what consumers don’t say and observing what they do. Based on this consumer understanding, technological know-how can make solutions.

    Consider the classic example of how Netflix reinvented itself during the Global Financial Crisis of 2008, surpassing Blockbuster to change the entire at-home entertainment landscape. The company saw consumer demand shrinking and found new ways to create more value for consumers via home delivery and streaming content directly to the consumers’ homes.

    Gone are the days of video cassettes, DVDs and Blu-ray disks — and better yet, consumers don’t need to drive to the stores to pick them up. While such a thing was unthinkable just 15 years ago, Netflix has since evolved into the streaming platform we all know and enjoy from our devices — a true innovative shift.

    Related: Want to Build a Faster Horse? Follow these 3 Innovation Strategies

    The rapid advancement of the internet also revolutionized traditional workplaces, including office supplies. As emails began to dominate modern professional communication, 3M’s Post-It notes were put in a somewhat sticky situation — and so 3M invented an innovative product that was even stickier. The Post-It Super Sticky notes could adhere to any vertical surface — including chairs, doors, computers, refrigerators, etc. This innovation addressed the needs of consumers who still preferred physical, visual reminders but found themselves using paper memos less frequently. The Post-it Super Sticky notes were made in vibrant colors, offering a convenient reminder that could be placed almost anywhere, ensuring that the product remained relevant and helpful even in the digital age.

    By contrast, Google failed to understand the true unmet needs of its consumers when the company first launched its “moonshot” Google Glass in 2014. Despite the “smart” glasses’ cutting-edge technology, the product was discontinued after just one year. Despite its live map imaging and hands-free web navigation, Google botched its assessment of the product’s marketability — opting for a “clunky” shape, overcomplicated features, and an overwrought price tag ($1,500).

    This is a classic example of a new-to-the-world product that myopically prioritized sleek, convenient bells and whistles over simplicity and accessibility. Google also failed to consider the desires and budgets of consumers properly. The product did not offer an authentic solution to make consumers’ lives easy and affordable.

    Related: Why Combining Company Culture with Strategy is Necessary for Lasting Business Success

    2. New-to-the-market solutions

    New-to-the-market solutions deliver an already-existing product to a region or market where it was not previously familiar or available. This does not require a fundamental change to the product itself but rather an integration into a new demographic of consumers — but not all products that succeed in one region are destined to succeed in another. Therefore, it’s crucial to take note of the ethnographic differences between markets and to develop a deep understanding of the cultures being marketed to.

    WD-40 is a prime example of a longtime staple of the American home that was popularized globally. Invented in San Diego in 1953, WD-40 was created for Convair to protect missiles from rust and corrosion and was later used more widely for its water-resistance and lubrication properties. The product was not introduced to Latin America until the 1960s, when it was presented as a valuable tool for people from all walks of life — including mechanics, cleaners, and individuals preparing for natural disasters.

    In addition to sponsorships of sporting events and festivals, the company was careful to market WD-40 to the Latin American audience through localized campaigns tailored to regional needs and interests. Lastly, the company established partnerships with local retailers and distributors to ensure the product’s accessibility. WD-40 was known for its versatility and reliability, but its affordability and universality propelled its successful sales in over 170 countries worldwide.

    Related: Great Minds Think Unalike — 3 Ways to Drive True Innovation Through Diversity

    Unlike WD-40, Bunnings — an Australian hardware and garden center chain — struck out in the UK market. While Bunnings was able to understand and cater to the needs of Australian homeowners, its leadership failed to consider the UK’s very different DIY habits, climate and competitive landscape.

    After overpaying for the UK-based home store chain Homebase, Bunnings made drastic changes to its logo, layout, and product mix without raising awareness around Bunnings’ brand in the UK. Bunnings also failed to invest in its UK presence properly, alienating potential consumers familiar with Homebase. Thus, Bunnings and its products failed to catch on with UK consumers, and in 2018, the brand was forced to sell Homebase at a loss of 1.7 billion Sterling pounds.

    The reality is that creativity alone will not create demand nor change consumer behavior. True innovation requires a combination of creativity, foresight and deep consumer understanding to deliver the right solutions for consumers’ unmet needs. Our current economy is actually primed for innovation — this troubled market is similar to what Netflix faced back in 2008, and company leaders would be wise to follow Netflix’s example.

    Now is the time when generational entrepreneurs launch their world-changing businesses, and real innovative ideas are born. For existing companies, large and small, it’s a time to double down on the core of who you are and what can be best offered to consumers to drive new demand.

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    Jack Truong

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  • Entrepreneur Magazine: Finding Motivation In The Face of Setbacks | Entrepreneur

    Entrepreneur Magazine: Finding Motivation In The Face of Setbacks | Entrepreneur

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    You’re trying to get somewhere. But you’re not there yet.

    That is frustrating. And worse, it’s embarrassing. You’ve worked hard. You’ve traveled far. And you think: I should be there by now — so why am I not?

    I feel this too, and I’ve concluded that it isn’t just about anxiety or impatience. It’s about something more fundamental: This is what happens when we are on a path, and what’s ahead is unseeable.

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    Jason Feifer

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  • The Ridiculously Easy Guide to Internal Customer Service Training | Entrepreneur

    The Ridiculously Easy Guide to Internal Customer Service Training | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Are you gearing up to launch an internal customer service initiative? Well, you’ve come to the right place. I’m happy to equip you with insights that can catapult your initiative into success if you choose to do it on a DIY basis.

    Before we dive into the details, let’s take a breather and understand the similarities and differences between internal and external customer service. While their essence should be the same, their surface manifestations differ.

    Both types of customer service, at their heart, have the same goal: to create and sustain comfort, positive feelings, and, of course, results. However, there are a few notable places where the way you provide service should diverge.

    Related: 8 Initiatives to Make Your Customers Loyal Advocates

    Here are some differences between internal customer service and external customer service (when they’re done right):

    • Jargon and shared language: Every industry, as well as almost every company, has its own set of terminologies, a sort of coded language that outsiders (at least if they’re not also in your industry) might find hard to decipher. With your internal customers — your colleagues in different departments or your own — you can use this jargon and language shortcuts freely, confident in their understanding and without fear of alienating them with phrases, terms, and abbreviations that may be foreign to them.
    • Level of formality: With internal customers (colleagues), you are free to adopt a casual tone, skipping the formalities you would use with someone who is outside of your company. In fact, the formalities essential for external customers may be unnecessary (or even sound a little silly) when you’re interacting with colleagues.
    • Transparency with company information: This one is obvious. You must protect your company’s private matters when working with external customers. With an internal customer, such data may be essential, or at least helpful, in completing their work.
    • The amount of abuse you should be willing to take: Okay, this is a big one and not a very pleasant one to ponder. When working with an external customer, if they are rude, they may be a rude person all the time, or they may be “just” venting this one time and will return to being themselves the next time you encounter them. Either way, because external customers pay for our company’s success, you may need to put up with it. With an internal customer, if they behave badly, you may want to call them on it or even alert a superior, particularly if you have clear internal (company) behavioral guidelines. Of course, in some company cultures, this may be a career suicide move, so you should still proceed with caution.

    Related: 5 Shocking Customer Service Mistakes You’re Making Every Day (And How to Fix Them Right Now)

    Armed with this understanding, let’s dig into the bedrock principles of internal customer service. Here are eight essentials to build into your internal customer service training — and, if all goes well, your internal customer service culture.

    1. Every service interaction unfolds in three stages: the warm welcome, service or product delivery and fond farewell. Far too often, we ignore stages one and three and focus all our effort on the middle one, what we consider the actual work. But the pleasantries at the beginning and the end of any customer service interaction are key, considering how human memory emphasizes beginnings and endings in how it later reviews an event.
    2. Mental reframing can be a game-changer. Start viewing tasks in your inbox as requests from valued customers instead of just “those folks in the other department.” — You’ll observe a boost in your own efficiency and enthusiasm.
    3. As with external customers, internal customers desire recognition. They want their colleagues to see them, not just think of someone who fills up their inbox.
    4. Address both the spoken and unspoken needs and desires of your co-workers. When they communicate with you, listen for the undertones that can give you clues to their emotional (and practical) desires, even if they’ve never verbalized them to you.
    5. Emphasize the principle of lateral service: stepping out of your comfort zone to help colleagues during staff shortages. This fosters a more resilient company culture.
    6. Respect should be a given. Bullying, regardless of its source, should be nipped in the bud. (Whether this is realistic depends on your company culture, level within your company, and other internal factors.)
    7. Consideration (kindness, really) should be at the base of everything we do.
    8. Language is potent. Steer clear of phrases that belittle or devalue your colleagues (“Like I told you previously,” “You’re not my only priority, you know,” and so forth.) And remember, “please” and “thank you” pack a positive, if quiet, punch. Use them liberally.

    Related: 4 Investments Brands Should Make to Upgrade Their Customer Service

    What format should be used for internal customer service training?

    When it comes to internal customer service training, there are a few formats to consider. One option is customer service eLearning-based training, which offers the advantage of being asynchronous (can be used at any time and at any pace) and long-lasting (has value in the future as well as present). With eLearning, employees can access the training material at their own pace regardless of their shift or schedule, and it can be used by future employees and as a central part of your future onboarding process.

    Live customer service training is another effective route to take, whether conducted in person or through remote video. This allows for real-time interaction and immediate feedback. To enhance the effectiveness of live training, it can be beneficial to supplement it with physical collateral, such as handouts or reference materials. These aids can help reinforce the essential points and ensure that everyone is on the same page — literally!

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    Micah Solomon

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  • 3 Essential Factors Your Startup Should Consider If You Want It to Bloom | Entrepreneur

    3 Essential Factors Your Startup Should Consider If You Want It to Bloom | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Venture capital funding has always been a complex and highly competitive landscape where startups and established businesses alike vie fiercely for investor attention and financial backing. And in recent times, this state of things has only grown progressively worse.

    Over the past two years, global markets have observed a continuous fall in venture capital funding. In Q1 2023, the figure reached $76 billion, less than half the amount recorded in 2022 ($162 billion). Funding into the fintech sector amounted to just $23 billion in the first half of 2023. At the same time, the number of funding rounds dropped by 64% compared to the same period in 2022.

    The investor sentiment is waning, and to survive in this grim climate, startups must be capable of rapidly adapting to changes and possess a sensible MVP capable of attracting investors and customers alike. These are the foundation upon which a business is built and from which it can improve based on evolving customer needs and emerging market trends.

    Let’s look at how companies can adapt their operations in a challenging environment where investors are becoming more cautious and their funding scarcer.

    Adapt your startup to the realities of the BANI world

    Before we get into the detailed recommendations on what parts of your business you should focus on when seeking investment opportunities, I believe it important to point your attention to a more overarching matter. Namely, the modern-day business landscape in which companies find themselves operating.

    In today’s rapidly changing global environment, any startup founder must know the BANI world and understand its nuances and rules. BANI stands for “Brittle, Anxious, Non-Linear, and Incomprehensible,” representing the key characteristics of the current business environment.

    Today’s world is prone to sudden disruptions and shocks that can significantly impact businesses and their activities. As such, leaders must learn to anticipate potential risks and build resilience within their organizations. To maintain an efficient business in times of uncertainty and volatility, leaders need to monitor market dynamics constantly, understand the ongoing trends and adapt their strategies accordingly.

    In short, understanding the modern realities is essential for heads of startups to successfully steer their companies towards growth and secure investments from stakeholders who value adaptability and foresight. It is particularly important for startup founders, as such businesses already tend to start their journeys in a financially vulnerable position. Failing to acknowledge the aspects of the BANI world may leave them ill-prepared to face disruptions, competition, market shifts and other threats.

    By taking care to keep an eye on these complexities, on the other hand, founders can make more informed decisions and adjust their business strategies accordingly. This can build their organizations more resiliently and attract investments by showcasing their ability to thrive in a rapidly changing and challenging environment.

    Now that we have cleared up the BANI world issue, let’s take a closer look at the actions that startup founders can take when fundraising. Based on personal experience, I recommend focusing on three main aspects of your business when you’re planning to engage with promising investors.

    Related: How to Adapt in a Rapidly Changing Economy

    1. Grow your revenue rather than your turnover

    When the market is going through a boom, investors tend to look at how rapidly a company can grow and capture its share in the market. But in today’s business landscape, it is more important for them to understand that a company can endure and survive in harsh circumstances. And survive for a long time, at that. If you have the capacity to be profitable on top of that, then all the better for you.

    Make sure to demonstrate this fact openly and proudly, as it would make a lot of sense for investors to invest in you to drive this success further and get their share of the profit from it.

    Related: We Can’t Rely on Venture Capital Funding to Build a Just and Thriving Entrepreneurial Economy. Here’s What to Do Instead

    2. Pay attention to your company’s data and analytics

    Showcase figures that would indicate to investors that your business is viable and that they can invest in it safely. In my own company, for example, we demonstrated how much we managed to reduce costs while boosting revenue simultaneously. Things like that give investors the information that you can operate effectively, which worked to great effect for us.

    3. Show that you can make responsible financial decisions

    If investors are to put their money into your startup, it would put their minds at ease to know that you can invest said money competently and precisely. More specifically, under the current market conditions, pouring funds into things that yield a quick result is necessary. You are required to be able to adapt to market trends and make quick decisions that provide quantifiable outcomes.

    Fundamentally, the most important thing is to demonstrate a set of skills and tools that would indicate to investors that your business can maintain itself regardless of the outside conditions in a market filled with uncertainty.

    Related: How to Think Outside the Box and Craft a Values-Aligned Investment Offering

    Data-driven decisions give businesses the power to grow

    By staying updated on industry developments, customer preferences and the competitive landscape, businesses can identify opportunities and adapt their strategies to stay ahead of the curve. This requires strategic thinking, flexible problem-solving skills and a willingness to take calculated risks. It falls to the company leadership to monitor performance and make informed decisions that would enable their business to maintain a level of success attractive to investors.

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    Greg Waisman

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  • How to Design and Produce Products from Scratch | Entrepreneur

    How to Design and Produce Products from Scratch | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Creating a successful product from scratch is the stuff that entrepreneurial dreams are made of, but it’s a journey that’s equal parts challenging and thrilling. From identifying a consumer pain point to delivering a refined product onto the market, the process requires dedication, innovation and meticulous planning.

    I’ve traveled this road time and time again with my cat brand tuft + paw, creating everything from an award-winning litter box to a mid-century modern cat tree. In this article, I’ll take you through the steps I’ve followed to bring our designs to life and build a thriving ecommerce company.

    Related: A 3-Step Process for Creating Great Products Every Time

    1. Identify a need/problem

    The foundation of any successful product lies in addressing a specific customer need or solving a problem. Start by conducting market research in your industry to identify gaps and common issues with existing products or services. Talk to potential customers, conduct surveys, and analyze industry trends to understand the pain points of your target audience. The more clearly you define the problem, the more focused your product development process will be.

    2. Conceptualize your idea

    Once you’ve identified a need, it’s time to unleash your creativity. Brainstorm designs, materials and features that can fulfill the identified need effectively. Don’t be shy at this stage — innovation always looks crazy at first. If an idea is good, it will survive to the later stages of the development process. Pay special attention to the uniqueness of your product and how it will stand out from the competition.

    Once you’ve settled on a concept, find an industrial designer to create mockups that visualize your ideas and transform them into tangible designs. I’ve had success using online platforms like Upwork which provide access to a pool of talented industrial designers. It often takes time to find the right person, but once you do, they’ll be able to help you refine the design and meet your aesthetic and functional requirements.

    3. Validate your product concept

    Before diving deep into the production process, it’s absolutely essential to validate your product concept. As long as your product doesn’t involve some sacred intellectual property, share your idea with potential customers. Consider offering pre-sales, even if it’s to friends and family, as this can serve as a strong indicator of demand. If there is a positive response and interest from potential customers, you can proceed with confidence. It’s understandable that some entrepreneurs may be hesitant to reveal their ideas, but receiving feedback and gauging interest early on can save you valuable time and resources in the long run.

    Related: How to Take Your Product From Idea to Reality

    4. Find a manufacturer

    After validating your concept, the next critical step in the production journey is finding the right manufacturer. Websites like Alibaba offer a vast array of manufacturers, but you’ll have to exercise due diligence to separate the strong contenders from the weak. Start by tracking down manufacturers who make a product similar to your design, then narrow the field based on their track records, customer reviews and pricing.

    Order samples from potential manufacturers to verify the quality of their products. Evaluate the samples carefully, considering aspects like materials, workmanship and functionality. Once you have chosen a suitable manufacturer, clearly communicate your modifications and specifications to customize the product according to your vision.

    5. Exercise patience and expect multiple iterations

    Producing a high-quality product always requires several iterations and adjustments. Be patient throughout the process because, barring a miracle, it almost always takes considerable time to achieve the desired outcome. Expect at least three months for each new product iteration, from refining the design to receiving the final sample. Maintain open communication with the manufacturer, sharing photos, drawings and detailed explanations of the desired changes. Clear communication will help minimize misunderstandings and ensure the manufacturer accurately implements your vision.

    6. Put your product into the wild and solicit feedback

    Before finalizing the product for mass production, put it out into the wild to gather valuable feedback from potential customers. Offer prototypes or limited editions to selected individuals or groups, and encourage them to provide honest feedback. This step allows you to gain insights into how customers perceive your product, identify any shortcomings and make final improvements. Even the most thoroughly conceived product may have unexpected flaws or specific use cases where it doesn’t perform as expected. There’s simply no substitute for in situ testing.

    Related: 3 Simple Product Development Lessons All Entrepreneurs Should Remember

    I know from experience that designing and producing products from scratch can be an incredibly rewarding experience as an entrepreneur. It’s no cakewalk, but if you follow the general steps outlined here, you’ll be well-equipped to take any product from dream to reality.

    It all starts with identifying a need, but every step along the way requires your utmost attention — from conceptualizing the idea to finding the right manufacturer to gathering feedback from prototype testers. As long as the pain point you’ve identified is true and solvable, your persistence will pay off. Stay dedicated to your goal, be open to learning, and embrace the evolution of your product as it takes shape.

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    Jackson Cunningham

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  • 3 Practical Ways AI Can Work for You | Entrepreneur

    3 Practical Ways AI Can Work for You | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The parabolic growth of accessible AI tools has intriguing implications for businesses. Analysts imagine that generative AI, for example, will have a massive impact on productivity across multiple business functions. Many organizations are scanning the horizon for a long-term AI-fueled transformation, eager to make the most of bullish CAGR projections. And while leaders mustn’t lose sight of long-term goals, staring out too far into the future may be overwhelming — distracting, even.

    Rather than redesign their business’ entire approach just to meet AI somewhere along the horizon, leaders can instead take a more practical route and ask how AI can improve their current strategy. Can AI accelerate current tactics? Can it help teams do things better? Can it help organizations reach their goals with less overhead? The answer, especially regarding product, customer success and internal processes, is overwhelmingly “yes.”

    Related: The Robots Are Coming — But They Can’t Outsmart Us When It Comes To This Particular Skill.

    Product teams can let AI do the legwork for them

    AI’s impact on product development begins with the nitty gritty. Generative AI tools like ChatGPT can help teams with everything from documentation to marketing briefs and website content. My team has leveraged AI for these very purposes, letting AI rewrite code into additional languages once we create the initial sample code. Humans are still an essential part of the process, but AI helps provide a kickstart.

    Tech companies have taken AI a step further, embedding it into their products. AI represents both a tremendous opportunity and a threat for security solutions providers. Bad actors have new tool sets that enable them to create more sophisticated attacks faster and more intelligently. Cyber product teams use the same tools to defend against emerging threats and offer in-product help to ensure their customers are more productive, better informed and ultimately satisfied with the experience.

    Non-tech companies should be thinking about the experience around their products, and, indeed, many are. Car manufacturers use AI to enhance their collision-detection systems. Healthcare solutions providers embed AI in their diagnostics and imaging products. Nike uses AI to power its product personalization efforts.

    AI helps customer teams create responsive, tailored experiences

    Customer-experience chatbots have been around for a long time, but concerns about data privacy, unnatural language and unhelpful results have kept them from becoming ubiquitous. Recent advancements have helped fine-tune chatbots such that they can answer questions more efficiently and accurately than a support desk person. AI-enhanced chatbots have helped transform these experiences from feeling like an impersonal human replacement to a better and more responsible customer experience, yet some consumers are still wary. Most will use chatbots, provided there is always an option to transfer to a live agent.

    Chatbots aren’t the only way organizations can infuse their customer experience with AI. Many companies effectively employ powerful data analytics, feeding valuable purchase and customer data into algorithms that help create ever-evolving seamless, personalized omnichannel experiences – think about how Spotify recommends new songs based on listeners’ history and allows them to switch from one device to the next easily.

    AI allows everyone to escape process mundanity

    For both product and customer experience teams, much of the AI magic happens behind the scenes. Chances are those teams are also using intelligent tools to automate workflows and speed up processes so that people can do their jobs more effectively. Teams for nearly any business function can use AI to do everything from creating images for a slide presentation to drafting website content and writing documentation.

    Leaders interested in process-focused AI can begin by asking, “How can AI help deliver a product or service more effectively?” and “What are we spending time on that AI could/should be doing?” By leaning into existing tools, such as those that Microsoft, Google and OpenAI provide, organizations can simplify mundane tasks involved in creating documents, spreadsheets and slide decks to free up their workforce for more creative and mission-critical work.

    Related: Automation Is Becoming a Business Imperative: Don’t Wait Until It’s Too Late

    AI: the ultimate means to achieving business goals

    On my product management team, we’re exploring all facets of our roles and asking ourselves how AI can help us spend more time analyzing information instead of gathering and summarizing it. This approach has been a tremendous shortcut for some components of our research and is a helpful way to think about AI as it relates to our company’s trajectory. When we ask how AI can help us fulfill our goals, we stay focused rather than become distracted navigating to some nebulous AI-enabled future along the horizon.

    Making AI work for us — not the other way around — is also a useful reminder that modern intelligent tools aren’t here to replace employees. In fact, a human in the loop is critical, regardless of AI’s application. Product teams must validate AI’s documentation; customer experience teams need to review modeling output for errors and continue to interact with customers when the time comes.

    The next time you make a decision about AI, remember that it is just a practical means to achieving business goals and not the end goal in and of itself.

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    Jason Oeltjen

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  • 7 Critical Pieces of Business Advice for Entrepreneurs | Entrepreneur

    7 Critical Pieces of Business Advice for Entrepreneurs | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Going out on your own as an entrepreneur can feel both intimidating and exhilarating at the same time. Though you may have the skills and experience to get started, knowing the responsibility relies solely upon you may not feel like the same security as working a regular 9-5 job. However, a sense of freedom and accomplishment makes the risk feel worth it.

    Every person who’s decided to take the leap and forge their path has felt a bit of uncertainty at some point along the way. After all, several unknown variables exist, but learning to forge ahead builds resilience.

    When embarking on an entrepreneurial endeavor, it’s important to go at the pace and in the direction that feels right for you, but here are a few pieces of general advice as you start your journey.

    Related: 9 Lessons to Learn From Being in the Entrepreneurial Trenches

    1. Commit to the process

    As an entrepreneur, you wear all the hats. You are the boss, the operations, the accountant, the cheerleader, and so on. Therefore, it’s up to you to champion your brand and adapt as needed.

    Even when times get rocky (and they will), you must dig in and believe in your business.

    No one will care as much about it as you are, so be discerning when deciding who you work with and bring on board to help reach your goals. Remember, it’s a marathon, not a sprint, so not everything may happen as quickly as you’d like. Have patience in the process.

    2. Get organized

    Having big ideas is the exciting part, but the reality is you have to get things organized to execute well. Take advantage of project management tools and programs for invoicing, scheduling and online branding and promotions.

    Ensure your focus on business growth isn’t taking away from delivering a quality product or service. There must be an excellent balance to maintain your clients and entice new ones to come aboard. Getting organized takes more time initially but will save you invaluable time and money once your business is up and running.

    3. Be confident in your rates

    Setting rates is one of the most challenging things for entrepreneurs, mainly because they’re unsure what they should be. Research your industry averages and factor in your expertise, experience and skills to come up with a rate you’re comfortable with.

    However, don’t sell yourself short. Not everyone may be a good business fit for you, and vice-versa. Focus on building quality client relationships rather than worrying too much about quantity.

    Related: Confidence Will Make All the Difference to Your Hustle

    4. Seek the support of others

    Every business has competition, but every industry has plenty of room for anyone wanting to succeed. Reach out to the support of other entrepreneurs through networking and social events or even online. Sharing stories of struggles and tips for taking your business to the next level can motivate you during the lulls.

    It allows you to be part of a community even as you’re running a business solo. Plus, camaraderie can help you feel less alone when you’re unsure of the next step.

    Related: 6 Principles From the Navy SEAL Code That Will Make Your Team Stronger

    5. Channel gratitude

    The frustrations of being an entrepreneur can lead down a slippery slope of feeling sorry for yourself. Some days, it’s going to feel like nothing is going right. Other days, you may compare yourself to others in your field and wonder why their success is coming more quickly. In these moments, wanting to quit can feel all too easy. Don’t.

    Allow yourself time to feel and reflect, but switch those feelings to gratitude for everything you have and the promise of where you are heading. There will be bad days, but when you change your perspective, you can turn things around for the better.

    6. Stay true to yourself

    Being an entrepreneur is a test of your integrity. With so many different challenges and new situations coming your way simultaneously, it can be easy to lose sight of your goals. While stepping out on your own is an emergence from your comfort zone, you want to do so as your authentic self.

    There will be shortcuts you find along the way; just make sure they align with how you want to do business. It’s essential to pause and check in with your strategies, your partnerships, and your path to ensure it is still true to you. Otherwise, you may reach a place of burnout or breakdown because you’re misaligned.

    Related: Understanding Entrepreneurial Burnout (And How To Deal With It)

    7. Celebrate the wins

    Life as an entrepreneur is busy. There are weeks when it’s hard to track what day it is. However, as chaotic as your schedule gets, take time to celebrate the big and small wins and plan rewards.

    A reward can be as small as treating yourself to lunch or as big as acquiring new office space to help grow your brand. Whatever marks the effort feels valuable to you, do it. Acknowledging your accomplishments along the way will motivate you to keep going, improving, and growing. And more than that, you deserve it.

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    Kelly Hyman

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  • The 3 Tiers of Customer Service (and How to Get to the Top) | Entrepreneur

    The 3 Tiers of Customer Service (and How to Get to the Top) | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The way I see it, your decision to read this article already puts you ahead in the customer service game. Here’s my logic: There are literally billions of human beings out there who, unlike you, will never read an article or book on the subject of customer service improvement because the subject isn’t of interest to them, and they don’t understand the power that customer service improvement can bring.

    Because of your demonstrated interest in the subject, I’m going to assume that you’re already providing “pretty good, much of the time” customer service. You’re already getting quite a few things right — at least on most days and in most customer interactions. So, take a moment to pat yourself on the back. (But don’t strain your neck.)

    If I’m right about this, it means that you’ve already learned the value of customer service from the moments when you have gotten it right, and you’re now inspired to take these successes even further. You’re ready to elevate and polish your relationships with customers to a sufficient level to build the customer connections (and business results) you’ve always hoped to achieve.

    In other words, you’re ready to get out of the middle of the pack — what I call Rung 2 of the Customer Service Level Ladder — and ascend to the top rung, Rung 3.

    When you’ve only reached the middle rung of customer service, while you may be judged more-or-less satisfactory by your customers, you’re not yet loved (or even probably remembered) for the quality of customer service you provide.

    Related: Yes, the Rich Are Different — Here Are 5 Customer Service Secrets I Learned While Working With Wealthy Clients

    The problem of providing “pretty good, much of the time” customer service

    Being on the second rung loads better than languishing at the bottom on Rung 1 (unacceptable service). Still, it will never inspire the engagement, passion and loyalty you need from customers to grow your business.

    The problem is that a merely satisfied (Rung 2) customer will still have a wandering eye. And how can you blame them? If your more-or-less-decent customer service is no better and no worse than what your competitors can also supply, where’s the value to a customer limiting themselves to only one supplier — you?

    What do merely satisfied customers look like? Picture them like this: Although they harbor positive feelings towards your business, they haven’t yet ascended to becoming a devoted advocate for your brand. Unlike a genuinely loyal customer, merely satisfied customers maintain (frustratingly) open minds and remain willing to explore alternatives to your business in the vast marketplace.

    Related: 5 Reasons Why Your Business Is Losing Customers

    A merely satisfied customer is like a free agent, always ready to be enticed by competitors

    In other words, here’s what you need to remember: A merely satisfied customer belongs to the marketplace. A loyal customer belongs to you.

    This is why it’s so important to elevate your organization’s performance to Rung 3, the level of iconic customer service, where customers now consider you their only possible supplier—a category of one—and start going out of their way to sing your praises and share the word about the extraordinary level of customer service you provide.

    Once you’re viewed this way in the marketplace, you’ll be able to use your new, elevated status to grow your company reputation and to reliably and repeatably grow your bottom line.

    Moving your organization up the customer service ladder: The art of anticipatory customer service

    If customer service were a game of hockey…that would be super weird, wouldn’t it?

    But let’s say for a minute that it is, in which case the highest level of customer service, anticipatory customer service, is like being one step ahead of the puck, giving customers what they want before they even know they want it, and anticipating their needs, desires, and questions even before they express them. It’s one step beyond generic reactive customer service: simply fulfilling a request when asked, and it’s the key to creating unforgettable experiences—and memories of your business—for your customers.

    Customers often don’t ask for what they need because they don’t realize they could benefit from something your product or service offers. (Or even know that you offer it.) Or, sometimes, they’re too shy to speak up or “don’t want to be a bother.” (I promise: this last phenomenon isn’t as rare as you think!)

    That’s why anticipatory customer service is so powerful. You’re actively seeking out unexpressed needs and going above and beyond to meet them, as well as unasked questions and answering them. When you uncover and take care of those unspoken needs and wishes, you create a whole new reality for your company. In this reality, delighted customers become loyal advocates, spreading the word about your exceptional service.

    This level of mind-reading service, where customer needs are met before they can even utter a request, is the ultimate secret to winning customer loyalty. And guess what? You can train and inspire your employees to get there—and transform your relationship with customers (and your business results!)

    You may have some doubts

    Now, I get it: you have some doubts. You’re probably wondering if your employees could become Jedi masters of customer anticipation. Hold onto your hats because I assure you they can and will. This will, however, require you to:

    1. Embrace the anticipatory mindset
    2. Promote this mindset throughout your company
    3. Support the anticipatory customer service approach with targeted, meaningful customer service training.
    4. Build, over time, a culture of anticipation through the power of “positive peer pressure,” an environment where employees know that the way things are done around here is to do more than the minimum in a way that is meaningful to our customers, rather than merely complying when asked to do so.

    You also might be doubtful for another reason. You’re wondering if you can afford to provide such an extravagant standard of service. And yes, it doesn’t come for free. But creating mind-blowing service systems is a brilliant investment for any business. The rewards in terms of customer loyalty are worth every penny of your investment and then some. Once you commit to elevating your game and embracing the power of anticipatory customer service, get ready to score big and watch your business grow and prosper like never before.

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    Micah Solomon

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  • How to Use Human Psychology to Crush Your Sales Goals | Entrepreneur

    How to Use Human Psychology to Crush Your Sales Goals | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Although the marketing world has been changing drastically over the years, some things have stayed the same. I’m talking about human psychology. There are tried and true tactics that win every time based on how we behave and what signals our subconscious behavior and emotional triggers.

    According to McKinsey & Co., 80% of consumers want retailers to personalize their experiences — so when you use sales psychology, your audience will believe you understand them and their needs. Knowing sales psychology can also help you predict when your clients are going to buy, which in turn can lead to you being more prepared with inventory and/or employees to gain more sales.

    Related: 6 Psychology-Based Tips to Boost Your Sales

    Start with clearly defined goals

    The first step may seem obvious, but before you start selling, it’s important to make sure you have clearly defined sales goals. At my business, we start by creating sales goals every quarter and making sure we meet those goals on a daily, weekly and monthly basis.

    At my company, we make sure our sales team records all of their calls so we can go through and see what they need to work on. We conduct a weekly sales training call with all of our closers, go through calls they recorded throughout the week and analyze what needs to improve — whether that’s making sure they’re asking prospects the correct questions, using an assertive and supportive tone of voice, building rapport or making prospects feel comfortable and understood.

    If the client thinks you don’t understand their problem first and foremost, they won’t feel confident in your company being the solution they need.

    Understand the unconscious mind

    Did you know that 95% of purchase decision-making takes place in the unconscious mind? If you want to learn how to access the unconscious mind — and your customers’ emotions — focus on these key areas:

    The psychology of color

    Colors evoke different types of emotions so it’s a great way to use it in your branding and marketing. There are usually many different feelings associated with each color, but here are a few to get you started:

    • Brands that choose purple usually portray luxury and feelings of sophistication.
    • Blue evokes feelings of calmness and trustworthiness. That’s why a lot of doctors’ offices and spas will be painted blue.
    • Orange creates feelings of warmth and showcases creativity and adventure. It’s also vibrant and can be well suited to attracting younger crowds.
    • Restaurants that want to evoke feelings of hunger and excitement may want to use the color red.
    • Brands that want to come across as confident and sophisticated can opt for the color black.

    My company’s logo is a mix of blue, red and white. As an American company, we purposefully chose these colors to mimic the feelings that come from the pride Americans have for our flag. Red isn’t just used to evoke feelings of hunger, it’s also used to signify power and fearlessness, which is what we stand for.

    A quick note of precaution on the psychology of color: Each color can also portray a negative emotion along with a positive one. For example, red is great for evoking feelings of hunger, but it can also evoke anger.

    Related: 6 Ways You Can Leverage Consumer Psychology to Drive More Sales

    The psychology of pricing

    I believe that the psychology behind numbers is one of the most powerful tactics you can use. An MIT study shows surprising results regarding the number nine. You may have even done this powerful trick yourself. In fact, it’s so powerful that the MIT study indicated when it came to a dress in a women’s catalog, the experiment tried three different prices $34, $39 and $44. You would think people would have bought the dress the most when it was $34, but changing the price from $34 and $44 didn’t change demand at all, however, changing it to $39 increased demand by a third.

    The psychology of scarcity

    People want what they can’t have, and there are various ways you can leverage this psychology of scarcity. I recommend using flash sales as a quick cash flow increase and to keep your customers on their toes. You can do this through email marketing, ads or social media. On your website, you could also try showing how many items are left in stock. There’s more FOMO (fear of missing out) if there are only four items left versus 100.

    The psychology of social proof

    People want to follow what other people are doing. You might think they just “want to be popular,” but the need comes from wanting to feel like we belong and are well-liked. It’s a basic human need, and as such, we look toward what others are doing when we’re confused. A 2022 study by TINT showed that 75% of customers search for social proof, including reviews and testimonials, before making a purchase — so make sure you use everything from user-generated content on social media to video and written testimonials.

    Related: 5 Psychological Reasons ‘Social Proof’ Beats Everything Else in Marketing

    Focus on why people buy

    There are many factors why people buy, including but not limited to money, status, security, popularity and transformation. At my company, we focus on business growth and transformation, so our ad campaigns specifically revolve around making sure feelings of success, security and power are evoked.

    You should be evoking emotions throughout the entire client journey, from your ad to the purchase and even after you close the sale. This is where a lot of businesses fall off on the client journey, but even after your product is bought, there are still many ways to evoke feelings and make sure you receive a positive client testimonial/review or a referral. Checking up on your clients will make them feel like you care.

    In order to win at selling, at the end of the day you need to focus on selling a lifestyle, not just a product based on features. By defining your sales goals, learning about customers’ emotions and needs and accessing the unconscious mind through pricing, colors, scarcity and social proof, you will be able to leverage sales psychology.

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    Jason Miller

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  • 4 Companies Followed This Secret Formula. Now They’re Valued at $50 Million or More. | Entrepreneur

    4 Companies Followed This Secret Formula. Now They’re Valued at $50 Million or More. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    My 20 years in the Entrepreneurs’ Organization have provided me with a front-row seat to significant business creation and operational strategy. Of the hundreds of entrepreneurs I know, four Portland, Oregon-based leaders hit home runs and exited at company valuations of $50 million or more: the founders of Ruby Receptionists, Survey Monkey, Jive Software and DW Fritz Automation.

    Because I knew those companies very well, I wondered whether they all took similar actions to create that level of success. What did they have in common? Is there a formula other founders could follow to hit similar financial home runs?

    The answer is a resounding “yes.” The four founders who sold their companies for more than $50 million each did these four things:

    1. Created significant value for customers in a distinct way within their niche.
    2. Developed super-clear branding around their unique product.
    3. Created extremely robust company cultures.
    4. Timed their exits precisely to maximize company value.

    Each company created significant “enterprise value” — value inherent in the way it did business and its future earning potential. Aside from hard assets like cash or real estate, millions of dollars of value existed in their business models and operational expertise. As a result, serious buyers recognized that fact and paid generously for it. That is a rare distinction among small businesses.

    So how do you create a business with such obvious enterprise value that big buyers will pay millions for it?

    Replicate the following four “million-dollar ideas.” If you are able to implement even one successfully, by itself, it will create over $1 million in sales value for your company.

    Related: Are You Sitting on Top of a Million-Dollar Idea?

    1. Deliver a ton of value customers can’t readily get elsewhere

    I saw billionaire, James Williamson, interviewed on his private jet on YouTube. When asked how he became that rich, he didn’t hesitate: “Find a niche. Crush it. Deliver more value than anyone else.”

    All four companies identified a unique product or service that customers both needed and valued. Or, they delivered a more standard product with a tweak or in a way not readily available elsewhere.

    Here’s the key: Whatever your differentiators, your offering must be unique in three ways or more. Not just one or two — at least three.

    If your primary product is not totally distinct and unattainable elsewhere — like a restaurant or electrical contractor — you can develop your three uniques. Maybe it’s a better product, lower price, different delivery method, more intuitive interface, unusual spin, friendlier service or a more personalized, memorable brand. It must be essentially better than everything else and also distinct in (at least) three ways.

    Each of the four company product offerings was truly differentiated, and the company knew in what way — and pushed harder for further differentiation all day, every day.

    2. Develop crystal clear branding around your specific differentiation

    These companies knew what they were offering. They saw customers piling up and recognized why. Their marketing was clear about what they offered that others did not.

    Maybe more importantly, they knew what they were not — and each was most definitely not everything to everyone. Only certain customers were right for them, so they focused on those and forgot the rest, even if the rest was a considerable number. That is to say, they served a specific market segment and did it better than anyone else but left the rest of the market to others.

    Related: Beyond Logos and Colors — How to Create a Compelling Brand Identity

    3. Create a super strong culture focused on customer success

    These companies created cultures you could feel when you walked into their offices, like a personality unto itself. You knew it was something special and different. The people were happy, motivated and focused on driving the company forward.

    Each company’s core values were extremely focused. In all cases, half of the values concerned the customer and what the company was doing to benefit that customer. Things like “practice wowism” or “find a better way,” not just generic values like “trust.”

    Each team member was hired because they matched those values. All were clear on what the company was, where it was going and how they could help it get there. They personified the strategy of rowing in the same direction. In a fundamental sense, they were a “cult” focused on creating unique value for customers and success for each other and the company. Their energy level approached frenetic.

    4. Time your exit precisely to maximize sale value

    My observation on business exits: Timing makes all the difference. A company that can barely sell on contract for $1 million at one point in the cycle could garner $10 million all cash at another. At times, specific business types are hot and highly sought after; at other times, they’re not. There can also be a long time between peaks in the cycle. Because of that, timing the cycle — and, therefore, demand — is probably more important than your personal timing and plan. The two seldom line up perfectly. These four owners struck while the iron was hot.

    In all four cases, the companies sold to an entity that wanted to take the business to a higher level. One interesting note: Because of that, both historic actual profitability and cash flow were basically irrelevant. What the buyer thought they could do with the company in the future mattered most. They sold on what is known as “pro forma” value.

    Angel investors, private equity or venture capital groups bought three of the four companies. In all cases, when one group showed interest in buying them, the company solicited other groups (often through a broker). That generally increased the first buyer’s interest and ultimately enabled the entrepreneur to exit at a 30% to 100% higher price than if they had worked solely with the first buyer. The buyers then took the companies to new heights, either by going public or selling to a larger strategic buyer. One of the four companies sold directly to a larger strategic buyer.

    Even in their exits, the four shared significant commonalities.

    Related: When Should Business Owners Start Developing an Exit Plan? Here’s What You Need to Know.

    Devise the perfect setup to catch lightning in a bottle

    When I connected the dots between these four companies, it almost felt like being struck by lightning. I could not believe how common their trajectory was and, more importantly, how they got there. These four caught lightning in a bottle — and while some luck is always necessary, you can’t deny that their playbooks were quite similar and well-executed.

    If your company can implement any (or all) of these ideas to their fullest potential, you will create millions of dollars in enterprise value.

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    Barry Raber

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  • How to Prioritize Mental Health in the Workplace | Entrepreneur

    How to Prioritize Mental Health in the Workplace | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    How much do you consider mental health in your overall well-being? Many business owners sacrifice their own emotional stability and personal satisfaction for what they believe to be the greater good of the organizations they run. Or they are too lost in all the noise of operating and growing a company even to consider self-care. But there is no rulebook out there that states business owners can’t have a thriving business and a healthy mind. It is all about positive psychology.

    Positive psychology is the scientific study of human flourishing. It focuses on factors like hope, happiness and optimism. Positive psychology is a proactive approach to mental health, not unlike wellness, which is to physical health. We often see a doctor when we feel sick or experience the onset of a disease, which is a reactive approach to physical health.

    A more proactive approach is to adopt the kind of healthy lifestyle choices that reduce our chances of getting sick in the first place. The same thing applies to mental health. We might see a therapist if we are in the throes of a mental health crisis, but it would surely be preferable to take a proactive approach to avoid a psychological emergency in the first place.

    Dr. Martin Seligman is an American psychologist and leading researcher widely considered the “father of positive psychology.” Seligman coined the term PERMA, an acronym that represents what he asserts are the five essential elements of mental health: Positive Emotions, Engagement, Relationships, Meaning and Accomplishment. The concept of PERMA is intriguing, specifically as it relates to the business owner’s emotional journey and mental health.

    Applying the concepts of PERMA to ourselves as business leaders is a great step in the right direction. Then, fostering opportunities to advance the PERMA ideology throughout your organization can dramatically enhance your company culture. I mean, who doesn’t want a team of emotionally healthy, mentally prosperous and happy people working for them?

    Let’s consider the facets of PERMA and how business owners can apply them to foster positive psychology throughout their organizations.

    Related: 5 Reasons We Should Make Our Health a Priority Over Our Business

    P — Positive emotions

    Not to be confused with happiness, positive emotions include personal feelings of love, joy and hope, among others. Seligman posits that our thoughts and actions improve when we cultivate and integrate positive emotions into our lives.

    First, focus on creating a culture of gratitude to help infuse positive emotions in your business. Recognize and celebrate achievements. Encourage your team to find joy in the work they do and in their interactions with others.

    Related: How Positivity Makes You Healthy and Successful

    E — Engagement

    Engagement is our ability to achieve a desirable state of flow in which we ditch our self-consciousness and allow ourselves to be absorbed in something we enjoy. It is about being substantively present in the moment rather than focusing on the mental baggage of the past or anxiety for the future.

    In your leadership role, provide employees growth and career development opportunities that encourage mastery, such as mentorship programs or advanced skills workshops. Implement ways to instill active involvement, autonomy and personal decision-making in the roles of every employee.

    R – Relationships

    We all know that deep, meaningful relationships with others are vital to our well-being. Seligman says that humans are inherently social creatures who thrive on feeling valued and supported by others. These social interactions may also stave off cognitive decline and physical health issues.

    As a business owner, be an active listener, reinforcing the importance of strong interpersonal relationships throughout your organization. Create opportunities for team bonding and collaboration.

    Related: How to Build a Positive Relationship With Your Boss and Colleagues

    M – Meaning

    Having meaning in our lives adds purpose and value to our actions. It is that connection with something bigger than ourselves. A sense of meaning might come from the business one runs, the causes one supports or one’s spiritual beliefs. Meaning increases personal satisfaction in our daily lives.

    Ensure your company mission and vision are meaningful to your team. Create in-house opportunities for employees to contribute to the causes they care about. Let your people know how important they are to the success of your business.

    Related: 3 Ways to Help Employees Combat Burnout and Create More Balance

    A – Accomplishment

    Being successful at the things we do can dramatically enhance our mental well-being. Accomplishment refers to the final product and the orchestration, mastery and self-motivation that propels a person to achieve great things.

    To support a culture of accomplishment in your business, set clear and attainable SMART goals for employees, departments and the organization. Celebrate big achievements, as well as little wins along the way. Understand that setbacks are often catalysts for growth, so provide constructive feedback when employees fall short of expectations.

    Proactively incorporating positive psychology and infusing the tenets of PERMA throughout your business can lead to a healthier, happier and more meaningful existence for you and your entire team.

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    Jason Zickerman

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