Tag: Business Plans

Every Business Owner Needs an Exit Plan — It’s Time You Develop Yours. | Entrepreneur
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Opinions expressed by Entrepreneur contributors are their own.
Have you considered how your successful business venture will end?

It might seem counterintuitive, but planning your business exit strategy from the start can significantly improve your entrepreneurial journey. When you set out on a road trip, you don’t drive around aimlessly — you have a destination in mind. Similarly, as an entrepreneur, having a clear end goal in mind guides your decisions and actions, leading to a more satisfying outcome for all stakeholders.

Let’s explore why looking at the end from the beginning is a strategy that pays off, how to consider various exit options and what steps to take in preparation for a fulfilling and profitable exit.

What is an exit strategy and why do you need one?

An exit strategy is like the GPS guiding your entrepreneurial journey. Often thought of as a way to end a business, its core purpose lies in propelling it closer to its long-term goals and facilitating a smooth transition into a new phase or venture.

Envisioning your exit isn’t just about business but also about harmonizing your professional aspirations with your broader life objectives. Whether it’s financial independence, travel or creative fulfillment, your strategy should mirror these objectives. Additionally, proactive exit planning attracts, builds credibility with, and encourages the loyalty of stakeholders (investors, partners and employees) who share your vision.

Even if an exit isn’t imminent, constructing your business with a future exit plan promotes a continuous drive to elevate operations and forecast potential exit valuations. Much like assessing a home’s value, getting an inspection, and making improvements before listing it for sale, an exit strategy applies similar principles to increase the value of your business. Gaining insights into its potential exit value provides a heightened market perspective, influencing your strategic choices and supporting your credibility.

Crafting your exit strategy, you also project what comes next: What’s your next venture? Where can you put your wealth to protect it and ensure growth? A well-thought-out exit plan carries you effortlessly to your next entrepreneurial or personal endeavor.

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

Exit options: Picking your path

In defining your exit strategy, you have various options to consider. There are as many unique paths as there are entrepreneurs; however, here are the typical high-level approaches:
- Selling outright: While not always the goal, selling might be strategically advantageous, especially if a business is declining. Exiting before financial troubles worsen can protect your investment and prevent further loss.
- Keeping it in the family: Passing the business to heirs can create a meaningful legacy. It’s important to ensure they are prepared to take on this responsibility and have the necessary skills or management support required to operate a business.
- Initial public offering (IPO): An IPO generates substantial funding and rapid visibility, advantageous for fast-growth firms.
- Mergers and acquisitions: These deals involve another entity purchasing either a majority or all of your company’s assets, driven by strategic and financial objectives.
- Private equity investment: This route involves private equity firms purchasing companies, granting capital inflows and specialized resources to maximize profits.
In my business practice, in which I’ve sold several well-established companies, I’ve learned another thing to consider: How your financing impacts your exit strategy. Self-funding gives you more control over your exit strategy and may encourage you to remain independent. In contrast, outside equity can come with investor expectations for specific ongoing or exit outcomes.

Before bringing in any partners or investors, consider how the additional stakes may influence your long-term objective. If you bring in capital partners, have an open discussion with them about what the possible exits could look like and what they can expect.

Related: How to Prepare a Company to Go Public in a Volatile Market

Preparing for the grand exit

As you move closer to operation exit, careful preparation is essential. You’ll need to ensure the approach you’re considering is feasible for your organization and business model, and that all stakeholders share the same vision.

Here are best practice steps to take:
- Retain expert council: Bring in legal, strategic and tax advisors to ensure you’re making informed decisions. Hiring a business broker can also prove invaluable in finding the right buyers or investors who align with your goals.
- Get your financials ready: Having organized financial records increases transparency and makes the due diligence process smoother for interested parties.
- Optimizing revenue and expenses: To maximize your exit valuation, focus on optimizing your revenues and managing expenses.
- Negotiate for the best terms: Effective negotiation ensures you get the best deal and your interests are protected. Aim for terms that align with your objectives and minimize economic risk.
- Vet your buyer/investors: Ensure that whoever acquires your business will maintain your vision and treat your team well.
- Determine post-acquisition management: Will you still be involved? What happens to your team? Clarify what the management structure will look like post-acquisition.
In 20-plus years of founding and operating successful businesses that naturally scale up and lead to profitable exits and observing the wins and failures of peers and competitors, I’ve distilled a crucial principle that applies to all businesses: Innovation fuels efficiency, growth, credibility, and operational sustainability. This applies even more to dynamic industries subject to significant social, technological, regulatory, and economic change.

Always being open to (and embracing where appropriate) innovation in tech, business models, production/fulfillment methods, marketing, compliance and other areas of operations helps you thrive in a competitive landscape, demonstrates your resilience and potential longevity, and supports the interest and trust of stakeholders.

Diligence and advance planning ensures you’re taking the most strategic approach to transition into the next phase of your journey.

Related: 10 Mistakes I Made While Selling My First Startup (and How You Can Avoid Them)

Carving out your entrepreneurial legacy

As you navigate business ownership, be mindful that a successful journey involves more than focusing on the present. Working backward and planning your exit strategy from the start enables you to create a roadmap that aligns your business endeavors with your personal, organizational, and financial goals. Consider where your path will lead and plan your exit strategy accordingly. In doing so, you’ll enhance your chances of success and ensure your entrepreneurial legacy endures.
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Robert Finlay

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October 20, 2023
Every Entrepreneur Needs an Exit Strategy — Here’s Why | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

If you’re an entrepreneur, you likely spend plenty of time thinking about how to grow your business, especially if it’s relatively new. There’s more to consider than just expansion, though. Every entrepreneur should have an exit strategy. You need a plan to ensure you can exit your company when you want to retire or explore other business ventures. Here’s why and how to go about it.

You need business and financial goals

Setting goals for your company is essential for long-term growth and success. A critical part of strategic planning for your business is creating an exit strategy. If you begin with the end in mind, it will be easier to determine the milestones you need to achieve to stay on track. Whether you want to grow your business for many decades or you’d like to attract buyers and exit as soon as possible, the key to getting what you want is planning well in advance.

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

Your exit strategy should provide clarity

An exit strategy also gives you the clarity you need for the next career phase. When you define your next steps and what it will take to accomplish them, you are more likely to succeed with your plans. Additionally, you’ll have the peace of mind needed to take action rather than stalling because you aren’t sure how to get started.

Know who and when

It may not be possible for you to set a definite date for exiting your business when you first create your strategy, and you don’t know the name of the buyer or the person taking over for you. But you can begin with an approximate timeline for when you’d like to transfer control and a profile of the ideal buyer. As time progresses, you can make more accurate decisions regarding the timeline.

Related: Exit Strategy Through the Eyes of an Angel Investor

Keep income statements and balance sheets updated

Knowing what your business is worth is crucial to creating a solid exit strategy. Your income statements tell you a lot about the health of your business, and they’re going to tell the potential new owner a lot, too. It’s important to keep them updated and ready to go at all times. Not only does that help you better understand when the appropriate time is to exit the business, but it also gives you leverage when you negotiate with potential buyers or successors.

In addition to your income statements, you’ll also want a potential buyer to see the balance sheet. That shows them what kind of money is coming in and going out, all in one place.

Even though there’s a lot more to operating a business than money, cash flow is what matters when it comes down to it. Your exit strategy should include paying close attention to that cash flow to move on at the most reasonable time for your needs. There’s no reason to settle for less than you wanted to get for your company because you mistimed your exit.

Growth potential can entice buyers

Even if you are eager to exit your company, it’s important to time your departure in relation to its growth potential. Leaving prematurely could hinder your company’s growth. Depending on who is buying your company, they may want to buy your company on the condition that you are able to stick around for a few years before you leave for good. The opportunity for additional, even explosive, growth could encourage a substantial buyout in your favor.

Related: 4 Go-To Moves to Help Start Your Exit Strategy Now

Cash flow is key to it all

Understand your cash flow and move when the time is suitable for the best chance at protecting yourself and your future. The buyer of the company will want to see strong cash flow to the business, and you’ll want to exit the company while it’s still strong and healthy to get the most significant benefit.

The bottom line on exit strategy

The most important concept to focus on when considering an exit strategy is what you want and need from it. Yes, you want to exit the business at a time that encourages someone else to buy or take over, but your needs are also important. With careful planning, you can find a great balance between your plans and goals for the future and exiting your business at a time when its value appeals to others.

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Brady Frank

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October 18, 2023
6 Steps to Becoming a Recession-Proof CEO | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

The future economic forecast is looking unpredictable. You might be thinking, “What’s new?” The fact of the matter is that there is always uncertainty. 2008 caught millions of people off-guard in a matter of days. It isn’t about pulling back away from this uncertainty, though. It’s about heading towards it with armor on — your business’s economic armor — the kit you probably knew you needed but might not yet have.

Your business’s armor is essential to its success. Sure, you can go through a few years without it, but you’re just counting on sheer luck here to get through. And just like you cover yourself from head to toe before you go into battle, your business needs to be covered back to front as well. If you haven’t experienced a downturn in business from economic collapse, you might have not ever really considered this. So, what does a recession-proof CEO look like? Let’s build your armor together.

Related: How to Recession-Proof Your Business

1. Your helmet: The financial deep dive

Starting off, let’s get your head covered. Walking around without knowing your finances is like heading into battle without a helmet.

Your financial books aren’t just for your accountants. They’re your reality check. Block out those critical three to five hours as the year draws to a close. Scrutinize every nook and cranny of your expenses. Which subscriptions are merely sapping resources without yielding returns? If multinational giants are meticulously trimming their operational fat, there’s a cue for you.

How to put your helmet on: This isn’t about shrinking your team size; it’s about eliminating redundancy. Optimization is the key. Analyze your subscriptions, third-party services, and extra expenses. I can guarantee there is an area right now that you can tighten up.

2. Your sword: The sacred 10% profit mantra

Next, you want to build your sword — something you have with you that you can use when in battle to fight back with.

Make the 10% profit mantra a non-negotiable. Every dollar that comes in, immediately set aside 10% as profit. Establishing a separate “Profit” account is a game-changer. This discipline reshapes your financial perspective. It makes you solve your financial needs using your 90% by getting creative and cutting the fat (step 1). But it also means you have a financial nest to use whenever you need it most. And this is your greatest weapon.

How to build your sword: Make a new business account called “Profit.” Have your accountant (or yourself if you handle your company’s finances) set aside 10% of the business income into this account on a designated basis (weekly/fortnightly). Watch it grow.

3. Your breastplate: Bolstering your reserves

Where could you be hit the hardest, you would want a lot of buffer to take the punch. This is where your financial breastplate comes in.

Revision your reserves. We’ve entered an era where the unexpected is the new norm. Those three-month reserves? They’re baseline. Challenge yourself. Can you push it to six months? Or why stop there? Aim for a year. By stashing away this nest egg and perhaps even parking it in high-yield savings accounts (some dole out a sweet 4-5%!), you’re not just cushioning your business but preparing it to soar post-crisis.

How to build your breastplate: Use your financial review (step 1) to see where you can add more from where you have removed unnecessary costs. Get critical. Ask your financial advisors for help here, they can probably see where you can cut in order to start gaining.

Related: Creating the 3-Bucket Cash Reserve System

4. Your shield: Minds over money

Your shield is your buffer, which will be able to take any hit. How do you create a solid business buffer? You strengthen your people and company.

You’ve tightened the purse strings. Excellent. But now, let’s allocate those savings wisely. Begin internally. Your team, their skills, their growth — these are intangible assets. Consider launching a leadership book club. How about monthly self-development workshops? The essence is to foster a culture of continuous learning. When you invest in their growth, the dividends they pay back in productivity and innovation are exponential.

How to build your shield: Send out a survey to your company on what they would like to see done for personal and professional development. Start there.

5. Your chainmail: The contrarian marketing strategy

Your armor is almost complete. Ready to get out and fight? Your chainmail will strengthen you.

In stormy economic weather, many companies instinctively pull down the shutters, drastically slashing their marketing budgets. I advocate the opposite. Instead of retracting, expand. While competitors dial back from 100% to 20%, I say we amplify our efforts, pushing it to 130%. Do what others are not doing — this is where you will see truly unique results.

How to build your chainmail: While buying patterns may change during downturns, buying itself doesn’t cease. Ensure your brand remains front and center, ready to cater to this discerning audience.

Related: How to Lead Effectively in Uncertain Times

6. Your plate armor: Embrace agility and innovation

Your final piece to your suit of armor is your plates. And what do plates do? Protect your whole body. Let’s see how to protect the body of your business.

Innovation is key. Economic downturns often signal a broader shift. The market dynamics are evolving. Traditional models might be upended. It’s the CEOs who keep their fingers on the pulse and who are willing to pivot, adapt and innovate that emerge not just unscathed but thriving.

How to build your plate armor: It’s leveraging new technologies, exploring untapped markets or simply reimagining a product. Remember: Agility isn’t just an advantage; it’s a necessity. Keep new. Keep fresh. And keep innovating your business. Don’t get complacent just because it has worked alright so far. Get stronger, and get better.

Facing a recession is as much a test of your mettle as a leader as it is of your business’s robustness. It’s a clarion call to think deeper, act smarter and lead with a vision. With the battle armor we have built for your business together, you can think, act and lead AHEAD of time. You have now taken back your control in the face of uncertainty. You’re bulletproof. Economic downturn? Ha! More like “Bring it on, world!” You’ve got this.

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Mikey Lucas

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October 9, 2023
Want More Customers? Use This Simple 5-Step Process to Create an Irresistible Pitch | Entrepreneur

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Q: I have a great idea for a service, but how do I know if people want it? – Shana, Tucson, AZ

If you want to create an irresistible offer, you can’t start with your solution. You must start with other people’s problems — and those problems must be big enough that they’ll pay to solve them.

How do you know what they’ll pay for? Ask them!

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Terry Rice

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October 7, 2023
Why Starting From The Bottom Is An Asset — Not a Liability | Entrepreneur
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I decided to attend business school out of desperation. One year after graduating from undergrad, I still didn’t have a “real” job and was struggling to define myself.

I saw attending business school as a chance to establish not just a career, but an identity. Unfortunately, I was also flat broke. I couldn’t afford any fancy test prep programs or a tutor who would help me develop the skills needed to ace the GMAT, a standardized test you take when applying to business school.

Instead, I rented a book from the library. There was literally only one book to help me prepare for the GMAT and Google wasn’t really a thing back then. So, I did the best I could with what I had.

Looking back, I believe one reason I did well on the test was that my resources were so limited. I didn’t have the luxury of choosing which route I would take to prepare for the test, there was only one, so I had to make it work.

Fortunately, I did well enough on the GMAT and was accepted into the University at Buffalo MBA program. Months later I’d be surprised to learn that I did better on the GMAT than many of my classmates who spent thousands of dollars on test prep services.

That was the first time I realized the advantage that comes with having limited resources. You know you don’t have much, so you find a way to make it work.

My buddy Darrell Vesterfelt shares a similar mindset, even though our experiences are different. He grew up in a trailer home and didn’t have any real role models in regard to chasing his dreams or living up to his potential.

But instead of giving up, Darrell forged his own path. And as you’ll learn, that path led him to found several multi-million dollar companies including School of Traditional Skills and Good People Digital. He’s also one of the most intelligent, thoughtful and altruistic people I know, so I know you’re going to learn a lot from him by listening to our recent interview on the Launch Your Business podcast.

I’ve shared a few of my key takeaways below.

Your disadvantages can become an advantage

Darrell said something that piqued my interest: Often, what people think it takes to be successful is different from the reality of what it actually takes to be successful. He calls this the “myth of success.”

“The bottom line thing that it takes to be successful is this ability to just not quit and give up. What you have to overcome is actually what sets you up for success.”

The benefits of coming from less-than-ideal circumstances? You have all the soft skills you need to push forward and figure things out. Darrell said that when you’ve overcome something in your past, you have “the ability to understand resilience, the ability to understand the stick-with-it mentality, the ability to understand that you have to make something work when you don’t have all of the answers — or when you don’t have all of the things that you need, or you don’t have the know-how. There’s a lot of advantages that I’ve gained coming from a place of not knowing.”

Unhappiness is a guidepost

Darrell said that for some reason, he was never happy about that status quo. There was an expectation that he – like many of his peers – would graduate from high school, learn a trade, and then work that trade until his body started breaking down in his forties or fifties.

“I think there’s something to be said about being unhappy,” Darrell said. “And I don’t think people will actually change until they realize that they are not where they want to be. They don’t have what they want. And that pain has to become bigger than the pain of change.”

Darrell uses discomfort as a catalyst for change by asking what the discomfort wants to teach him. What is there to learn? Sitting in the discomfort while determined to learn from it will take you much farther than quick fixes that bring temporary ease – but no long-term change.

What to do when you feel like quitting

Despite having built his resilience over the years, Darrell said that he feels like quitting and going back to a normal 9-to-5 on a regular basis. He said that the big surprise here is that this is normal and we should look for the lessons in it.

“I think there’s a myth of leadership where we feel like we don’t know what we’re doing,” Darrell explained. “We feel like we’re struggling. We feel like we want to give up, and we think we’re the only one. And the reality is, everybody feels that way on some level.”

Here are the two ways Darell says you can stay on track, even in the face of uncertainty that makes you want to throw in the towel.

First, know your core values and have a firm grasp of your vision.

Second, have relationships with people who will hold you accountable to that vision. Honest relationships with folks who will call you out are hard to come by – but they’re worth their weight in gold.

What’s next?

Ready to learn more from Darrell?
- Visit his website
- Follow him LinkedIn
- And of course, listen to the full interview below
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Terry Rice

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October 6, 2023
Target’s 8 Foot Jack-O-Lantern Decoration Goes Viral on TikTok | Entrepreneur

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Step aside, Jack-o-Lantern. There’s a new pumpkin in town, and his name… is Lewis.

The 8-foot Halloween decoration went viral on TikTok after users started posting videos of him on the showroom floor of Target.

At first glance, the pumpkin-faced ghoul looks like any other spooky lawn toy. But press his “talk” button, and he will eventually utter the catchphrase that has set the internet on fire.

“I am not a jack-o’-lantern,” he says. “My name is Lewis.”

@imshannonduh I dont know who voiced this halloween decoration at Target but i hope they got paid a lot of money to do it #halloween #halloweendecor #target #targethalloween #spookyseason ♬ original sound – shan ?

At press time, #mynameislewis had over 20 million views on TikTok, with users raving about how much they loved Lewis-o-Lantern.

“He’s so dreamy and cute,” wrote Lucybug.

“I keep randomly saying Lewis around my house,” Abbeney K commented.

Says Brynn, “I work at Target and Lewis is the highlight of my day.”

Even 90s alt-rock band The Smashing Pumpkins got in on the Lewis love, renaming themselves The Lewis Pumpkins in a video.

@thesmashingpumpkins

Live laugh love lewis

♬ Mayonaise – 2011 Remaster – Smashing Pumpkins

Related: The Dallas Cowboys’ Owner May Be Fined for His Halloween Costume. Was It Demeaning?

Who is Lewis?

Lewis isn’t technically branded as Lewis. Target’s website lists him as an “8′ Light and Sound Pumpkin Halloween Ghoul,” wearing what appears to be a Grim Reaper robe with a hoodie and a tattered shirt. The decoration is manufactured by Hyde & EEK! Boutique, a distributor of Halloween items since 2008. The price tag is a frightening $180.

But don’t expect to be greeted by Lewis at your local Target anytime soon. At press time, Lewis was listed as completely “out of stock” on Target’s website.

Origin story

According to Know Your Meme, Lewis was first discovered on September 27th by TikToker @imshannonduh, whose real name is Shannon Murphy.

Over six days, the video received roughly 2 million plays and 531,300 likes.

Interviewed by NBC News about why she thinks the Lewis video caught on, Murphy said, “He’s Halloween’s Paddington Bear.”

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Jonathan Small

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October 4, 2023
10 Expert Principles For Designing Better CSAT Surveys | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

As a customer service consultant and customer service transformation expert, I’ve felt like cringing a few times (or more than a few!) when my client companies send out customer satisfaction (CSAT) surveys that are less accurate and customer-friendly than I’d want them to be.

This is risky for any business, so I work with them immediately to make the needed improvements.

Sending out poorly designed surveys can try the nerves of even your most loyal customers, mislead you with spurious results and waste the time of everyone involved — those who send it out and those who receive it. When designed and deployed correctly, however, surveys can reveal essential insights into how customers view their experience with your company and allow customers to vent!I encourage you to spend a few minutes with me learning the do’s and don’ts of designing and deploying customer surveys.

Related: How to Measure Your Customers’ Happiness Score (and Why That Matters)

1. Every survey question should be clearly worded and easy to answer

It shouldn’t require your customer to do math or think too much about the inner workings of your company. Avoid anything like, “Compare this interaction with interactions you’ve had at similar departments at other fintech companies in our broadly competitive cohort.” Also, don’t ask questions you don’t care about and already know you’re not going to act on. (This seems obvious, but it happens all the time.)

2. Don’t ask your customers to grade you on a scale of 1–10

When you request their opinions on a scale of 1-10 (or 0-10), you’re confounding your customers at best. Why? You’re essentially asking your customers to determine the difference between a “six” and an “eight” or a similar nuanced gradation when choosing how to rank you. Provide your customer with no more than approximately five choices. (Why do I say approximately five? Well, I’d go with five, but I confess that there is an argument to be made for making it four or six: If you choose an even number like this, you take away an easy midpoint response, thus perhaps getting more reasoned answers.)

Related: 4 Ways to Use Customer Feedback for Business Innovation

3. The order in which you ask your questions matters

The order matters because a prior question brings up images in a customer’s mind that will influence their answer to the next one. So, be sure to ask for your customer’s overall impression first. You don’t want to influence how a customer answers this central question by asking more nitpicky questions before you get to the most important, broad one.

Asking several individual questions before asking for an overall rating will tend to color that overall rating, perhaps quite significantly. For example, if the question the customer encounters just before the big one asks about the cleanliness of your restrooms, which was just so-so, this will likely reduce your overall rating since you’ve left their mind in the toilets.

Conversely, if they’ve just been asked about the availability of parking and parking was abundant, this is likely to artificially increase your overall rating since they are thinking about something positive (how easy it was to park).

4. Include at least one open-ended question

Doing this is valuable both to harvest customer insights and to let customers know you value and are curious about their thoughts and insights. For example, “Please share any thoughts you may have; we promise to read all of these!”

The CEO of a major corporation told me that he transformed his entire level of customer service success by reading every one of these so-called “verbatims.” In these, he found a “staggering” level of nuance about his current operations and even some promising suggestions for innovations for the future.

Related: You Need Consumer Insights To Ensure The Success Of Your Business. Here Are Five Ways To Find Them.

5. Word choice matters

I’m a fan of emotive rating options on surveys, such as “fantastic!” (for your top score), “meh” (for somewhere in the middle) and even “Are you sure you can handle the truth?!” (for your lowest). Only consider this approach if it conforms with your brand style! It wouldn’t be appropriate for a traditional jeweler or a business in a life-and-death industry like healthcare or mortuary services.

6. Pay attention to the number of top ratings (5 on a scale of 5) that you receive

While it’s nice to know how, on average, customers perceive you, It’s arguably more important to know the number of customers who give you a top (5 on a scale of 5) rating. This may be more important than your average score because the number of people who rate you as tops are the best representation of the number of truly loyal customers you have — or, at least, the number of customers well on their way to true loyalty. Of course, most important here is the trend: are you getting more loyalists than in the past, or is customer enthusiasm flagging?

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

7. Don’t ask nosy questions

Nosy questions include questions on income, sex or how old they are. First, you can never assume respondents will trust your privacy practices. Second, unless you’re a casino operator, cannabis dispenser or operate another type of business limited by law to serving adults, you don’t have a reason to ask for a complete birthdate. If you are trying to set yourself up to send out birthday cards or offers later, please at least stop asking for the year of birth. A complete birthdate is probably none of your business and makes identity theft all too easy in the event of a breach.

8. Skim through your surveys right away, looking for any complaints or ultra-low scores

Then respond personally and immediately to these upset customers. Don’t make them wait without a response, stewing in their own frustration, until such time as you’ve batched all your surveys for review.

9. Put thought and attention into any preamble that accompanies your survey

Your introductory note or cover letter, just like the survey itself, should be friendly, gracious and brand-appropriate. This way, whether or not the recipient chooses to respond, they’ll be left with a positive impression.

10. Please don’t hound your customers if they don’t respond to your survey request(s)

I would make one follow-up reminder the limit — or even zero. Once you’ve surveyed a particular customer, suppress future surveys of that same customer for at least 30 days.

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Micah Solomon

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October 4, 2023
6 Obstacles of Expanding Your Company Internationally — and How to Overcome Them. | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

Expanding a successful startup internationally can be exciting, but it’s not without its challenges. What works in one country might not necessarily translate smoothly to another. The world is a diverse tapestry of cultures, legal systems and market dynamics. Let’s explore the obstacles that startups should manage when venturing into the international arena, complete with real-life examples that shed light on the complexities of global entrepreneurship.

Related: Successful Leaders Think Globally — How to Expand Your Business Abroad For Maximum Success

Cultural challenges

Culture is like a hidden iceberg that can sink your international business if not navigated carefully. Cultural challenges are often pivotal aspects of international business expansion. A profound understanding of local customs, values and preferences is indispensable for success.

For instance, McDonald’s faced a significant cultural challenge when entering the Indian market, where vegetarianism is prevalent. To resonate with the predominantly vegetarian customer base, the company astutely adapted its menu. This transformation included the introduction of a variety of spicy sauces and condiments, along with local favorites like masala fries. This strategic move not only ensured the acceptance of the McDonald’s brand but also significantly boosted its popularity in India. This example underscores the vital role that cultural sensitivity plays in international expansion, as it can be a decisive factor in whether a business thrives or struggles in new markets. Understanding and respecting local cultures can turn challenges into opportunities and create lasting success.

Team dynamics

Managing a team spread across different countries can be a complex jigsaw puzzle. Critical decisions about staffing levels, choosing between local or international teams and HR processes weigh heavily on the success of international ventures. Recruiting and relocating foreign teams to specific countries often entail intricate processes, extending over several months. Consequently, meticulous and timely preparations become invaluable in alleviating stress and conserving significant resources.

Related: 3 Steps to a Successful International Expansion

Product adaptation

Your product may be a hit at home, but it might need a makeover abroad. Nestlé’s experience in Japan is a classic example. They realized that their standard ice cream bars were too large for Japanese freezers. So, they downsized the product, ensuring a snug fit.
Had Nestlé not recognized and addressed this issue promptly, it could have led to a series of potential losses and setbacks, including financial losses, reputation damage, market share erosion and missed opportunities. By adapting their product size to Japanese preferences, Nestlé not only prevented potential losses but also tapped into a market segment they might have otherwise missed. Small changes can make a big difference in product acceptance.

Marketing mishaps

Marketing is a minefield where a misstep can have serious consequences. Procter & Gamble (P&G) learned this the hard way during the mid-1970s when they ventured into the Japanese market with Pampers disposable diapers. In the United States, P&G’s diaper advertisements featuring storks struck a chord with parents eager to bid adieu to cloth diapers. However, this approach fell flat in Japan, where storks had no association with delivering babies. Instead, Japanese folklore featured giant peaches. A comprehensive understanding of local customs and traditions is essential for success in diverse global markets.

Navigating legal landscapes

Setting up a business internationally involves grappling with legal complexities. Airbnb, for example, had to adapt to varying regulations in different countries. Some places imposed restrictions on short-term rentals, while others required hosts to register. Adhering to local laws and regulations is essential to avoid legal troubles. Additionally, choosing the right legal structure for your business is crucial, considering ownership restrictions in some countries, such as specific limitations on foreign ownership and requirements for local shareholders or partners. Selecting the appropriate company type, appointing directors and securing the necessary permits are all fundamental steps in this intricate legal process.

Related: 4 Tips for Expanding Your Business Globally

Licensing, permits and intellectual property protection

Securing the necessary licenses and permits for your business can vary significantly from one jurisdiction to another. Just because you have the required permits in one country doesn’t guarantee the same in another. This intricate process involves understanding and complying with diverse legal requirements. In addition to licenses and permits, safeguarding intellectual property (IP) rights is paramount. Apple’s protracted struggle with Chinese counterfeiters exemplifies the hurdles of protecting IP in a global marketplace. Your business must navigate these intricacies diligently to operate smoothly and safeguard your innovations and assets.

Expanding internationally is a thrilling journey filled with opportunities and hurdles that test the mettle of startups. As exemplified by real-life cases like McDonald’s catering to Indian tastes and Nestlé’s ice cream adaptation in Japan, the ability to adapt, respect local norms and navigate the intricacies of diverse markets is the cornerstone of international success.

Each obstacle conquered not only adds to a company’s expertise but also unlocks the potential for broader global reach and influence, creating a more resilient and adaptable organization. International expansion may not be a piece of cake, but with the right preparation, a keen mindset and an unwavering commitment to understanding and embracing global diversity, it can be an immensely rewarding adventure that propels businesses to new heights of success.

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Olga Fleming

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October 3, 2023
Free Webinar | October 24: Grow Your Local Business With These Low-Cost Marketing Tricks | Entrepreneur
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Small businesses often have small marketing budgets — but that shouldn’t hold back your marketing efforts!! Join us for an exclusive webinar led by Yelp’s small business expert, Emily Washcovick.

In this session, you’ll learn how to reach your audience on a shoestring — by harnessing the power of local culture, trends, and events.

During this webinar, Emily will share:
- The art of localized marketing and how to tap into culture, trends, and local events for maximum impact.
- Strategies to leverage even the smallest local events, to connect with your audience and boost your business.
- How to seize opportunities during nationwide events that also have a local component, effectively crowd-sourcing customers for your business.
- Real-world examples of successful localized marketing.
- Insights from Yelp’s recent coverage of the impact of the “Beyonce bump,” and how local businesses can thrive off of large events.
Don’t miss this chance to learn from Yelp and gain the knowledge and strategies you need to master localized marketing. Whether you’re a small business owner, marketer, or entrepreneur, this webinar will equip you with the tools to connect with your community, boost engagement, and drive revenue. Join us on October 24th at 3:00 PM ET and elevate your business’s local marketing game to the next level!

Register now to secure your spot!

About the Speaker:

As Yelp’s Small Business Expert, Emily Washcovick is meticulously focused on helping local business owners succeed and grow. Her expertise lies in customer engagement, reputation management, and all things digital marketing. Through speaking engagements and thought leadership, Emily shares industry insights that entrepreneurs in any business category can leverage for the growth and well-being of their businesses. She is also the host of Behind the Review, a podcast from Yelp and Entrepreneur Media, where each episode features conversations with a business owner and a reviewer about the story and lessons behind their interactions.
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Entrepreneur Staff

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October 2, 2023
How to Navigate Ethical Considerations In Your Decision-Making | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

Business owners and managers often face difficult decisions that involve weighing ethical and unethical options. However, making choices that consider ethics can have significant long-term benefits for a company.

When employees feel their company prioritizes ethics, it fosters trust and loyalty. They’ll be more motivated to give their best work. Customers also care deeply about supporting businesses with strong values. An ethical reputation builds goodwill that leads to repeat customers and word-of-mouth marketing.

Moreover, in today’s transparent world, unethical actions usually don’t stay hidden for long. A single lapse in judgment can go viral on social media and seriously damage a brand. Several large companies have suffered enormous financial losses due to ethics scandals. Clearly, incorporating ethics into decision-making is simply a good business strategy.

Still, ethics are not always black and white. Managers must thoughtfully weigh various factors like short-term profits versus long-term impacts. Here are some practical considerations to guide them.

Related: More Than Just A Moral Compass: The Power Of Ethical Business Practices

It’s not just about the bottom line

Many business owners fall into the trap of focusing exclusively on financial outcomes when making choices for their companies. While profits are important, they should not be the sole criteria against which options are judged. Remember that your business does not operate in a vacuum — it has an impact on employees, customers, suppliers and the wider community. Ignoring ethics can seriously damage relationships and goodwill over time.

For example, cutting corners on product safety or quality to reduce costs may lead to higher profit margins in the short term. However, it also risks harming customers, resulting in negative publicity, and losing the trust that has been built up. In contrast, prioritizing ethical practices shows stakeholders that you value more than money and helps ensure the sustainability of the business.

Related: Are You an Ethical Entrepreneur? Here’s How Business Leaders Can Embrace Social and Environmental Responsibilities

Think through unintended consequences

Most organizational decisions are complicated, with outcomes that are difficult to predict with certainty. Hasty or self-interested choices often fail to consider all angles. It is wise to carefully weigh both intended and potential unintended consequences before acting on an idea.

Imagine, for instance, a clothing company that decides to significantly lower the wages of its factory workers abroad to reduce production expenses. While this may boost profits in the accounting ledgers, have leaders fully contemplated how it impacts livelihoods and morale? Have they accounted for the possibility of quality or retention issues down the line from unhappy employees? Stepping into others’ shoes and viewing decisions from their perspective can surface important uncertainties or ethical issues to address.

Staying consistent with core values

Establishing a strong set of values and operating principles for a business is crucial. These provide an agreed framework and shared understanding for navigating complex choices. However, values only matter if teams consistently work to uphold them in both good times and bad.

When under pressure to cut costs or hit unrealistic targets, it is all too easy to compromise on ethics “just this once” and rationalize it away later. Over time, these mini-exceptions can erode the integrity of an organization. By openly discussing values as part of decision-making, leaders can ensure options align with what the company stands for – not just what seems expedient right now but damages credibility in the long run.

Related: Stand for Something: How to Establish Authentic Core Values

The power of stakeholder feedback

No business exists in isolation from those it interacts with. Customers, employees, and community members all have useful perspectives informed by their experiences. Making time for open communication and stakeholder feedback can be eye-opening, revealing both future opportunities and potential pitfalls that leaders may have overlooked.

For instance, regularly surveying frontline workers gives insight into day-to-day operational realities and early warning of any brewing issues. While undesirable information requires courage to hear, ignoring problems often makes them worse. Building a two-way dialogue shows respect for others and improves the quality of choices by grounding them in reality.

Related: What Does It Mean to Be An ‘Authentic Leader,’ Anyway? Here’s What You Need to Know.

Consider all parties affected

Many ethical lapses occur due to a narrow focus. It’s important to map how decisions reverberate throughout extended networks. For example, while optimizing one department may slightly benefit shareholders, what consequences ripple to suppliers, the environment or society? Taking a systems view ensures no one is left shouldering undue risks or costs.

Review with hindsight

Revisiting earlier choices allows for spotting patterns and blind spots. What could have been done differently with the benefit of hindsight? Lessons learned should inform future policy settings and discussions. It also reinforces wisdom gained over time. Through experience, judgment improves at building ethics seamlessly into a business’ strategic priorities and daily operations.

Weighing ethical considerations cannot be set aside or delayed when times get challenging. On the contrary, it becomes even more crucial. Leaders who thoughtfully consider the impacts on all stakeholders, stay consistent with core values, and invite diverse input tend to build businesses that endure because they have wisely constructed strong foundations of integrity and trust.

In the end, the most successful organizations are usually those deliberately guided not only by profits but also by principles.

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Murali Nethi

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September 27, 2023
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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September 26, 2023
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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September 25, 2023
Succession Planning Is Vital — Here’s What You Need to Do. | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

Business owners know a thing or two about working long hours. Without fail, there’s always something to do. But what about putting in the time to develop proper business succession planning? A recent report from SIGMA shows that nearly 1 in 10 leaders believe succession planning is not worth the time and money that it costs. Are you that one? There will be a time when you’ll want to transition ownership of the business to another party, and it may be sooner than you think.

While seemingly straightforward, succession planning for business owners can take several different forms, each with its own set of pros and cons. You’ll want to understand your options and how they relate to what you hope to accomplish. No matter when or how you transition ownership, your results will be impacted by how much effort you put into planning.

Related: Succession Planning: It’s Never Too Early to Start Thinking About the Future of Your Business

Starting with the end in mind

An important trait in highly effective people is the ability to come into any given situation with a clear understanding of the destination. It allows for better identification of the necessary steps to achieve a desired outcome. That’s business succession planning in a nutshell — or, at least, that’s the goal.

If you think success planning is as simple as handing over the reins to family, you’d be mistaken. Only about half of heirs want to take ownership of the family business. That’s a stark difference from what business owners actually think, with 67% believing that their heirs want the business. Even if the family member is ready to take over, succession planning for business owners takes time and preparation. Below are five strategies that will help you start planning for succession and the thought that needs to go into it.

1. Carving out the time necessary

In our experience, it’s best to start creating a succession planning roadmap at least three to five years prior to the date of the planned transition. Without a roadmap, you might unknowingly create hurdles to a successful transition instead of facilitating a clear path to new ownership. In fact, it could even put into question the financial security you desire.

Let’s say you’ll be selling the business to an unrelated third party. The financial impact will be significantly different than “gifting” the business during your lifetime or transitioning ownership upon your death by way of an estate plan. You must determine the value needed from the sale to maintain your lifestyle once you no longer own the business — and that’s just the start.

Related: Most Family Businesses Don’t Have a Succession Plan in Place, But That’s a Huge Mistake

2. Making sense of a sale prior to the sale

Selling to an unrelated third party can present several challenges. Identifying potential buyers that are qualified to purchase the business isn’t always easy nor is taking all the appropriate steps to prepare the business for a sale. A great deal of information will be required as part of the buyer’s due diligence process. How long will the process take from start to finish?

Then, there’s the question of whether to engage a business broker or investment banker to assist in the sale. How will they evaluate potential offers? What potential issues might come up in the purchase agreement? Are there any confidentiality concerns? Is the sales process being done in the most tax-efficient manner? Have you considered what you’ll do after the sale?

3. Balancing business continuity and succession planning

We recently worked with an owner who had several separate yet related businesses. They only wanted to sell one of them. The process started with a full valuation and then the determination of whether selling one business would be detrimental to the value of the combined businesses. They also wanted to explore whether they could sell the business to a group of employees and how that might compare to an outright sale.

We conducted an assessment to identify the business owner’s goals in the ownership transition. Then, we helped them prioritize those goals. After talking with several interested buyers, including the employees, the owner decided to move forward with a large buyer who expressed interest in acquiring the business and real estate.

4. Arriving at a smart fiscal decision

The owner’s choice of buyer came down to the fact that it would enable them to achieve the majority of their highest-priority goals. Because of advanced planning, the owner knew what their business was worth, the minimum value they’d need to receive from the sale and the potential issues the buyer would likely raise.

Ultimately, the buyer did make an offer that was lower than the valuation, but we were able to negotiate a more acceptable offer that provided for full payment at closing. This provided the certainty that the owner sought, and the transaction was closed within a reasonable amount of time. All parties were pleased with the outcome.

First Business Bank recommends you employ a team of professionals to help you come up with a proper valuation for your business — including “your CPA and business appraiser. You might also include your attorney, wealth management professional, business banker and possibly an investment banker/business broker in the discussion to ensure coordination.”

5. Putting the pieces together

Creating a succession plan for your business always starts with defining the goals you’d like to accomplish as part of the ownership transition. It’s for this reason, among many others, that we recommend getting the ball rolling as early as possible. Once you’ve defined your goals, you can focus on arriving at a fair market value for your business today.

With that in mind, how much value would you need to realize to be financially independent after the transition? Will the sale allow you to live your desired lifestyle? If there’s a gap between the fair market value and what you need to achieve your future income needs, then develop a plan to increase the value of your business within the timeframe you’d like for the transition.

Related: 4 Lessons on Succession Planning for Entrepreneurs

Getting what it’s worth

We firmly believe that the more time and effort you spend on business succession planning can exponentially improve the probability of a satisfactory outcome. The more you prepare and understand what to expect, the smoother the process will go for both you and the buyer. It also doesn’t hurt to have an advisor on hand who can properly assist you through the process.

Ultimately, preparation is key to successful succession planning for business owners. It will save you time and could even help in building trust with the buyer, which can minimize conflict as the process moves forward. When the buyer has confidence in the information they’re receiving and your integrity, it provides you with more leverage in negotiating the final price and terms.

In the end, a succession planning roadmap increases the chances that you’ll get what the business is worth and be able to maintain your lifestyle for years to come. It’s all in your approach.

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Larry Guess

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September 22, 2023
How to Think Like an Investor When Preparing Your Pitch Deck | Entrepreneur
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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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September 21, 2023
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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September 20, 2023
The 3 P’s of Selling, According to Andrew Sullivan | Entrepreneur
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“If an entrepreneur can’t pitch their business, they can’t succeed.”

So says legendary pitchman Anthony Sullivan, who you probably know from his iconic OxiClean commercials. “It’s something we see happen all the time on Entrepreneur’s show, Elevator Pitch, where entrepreneurs have 60 seconds to pitch. If they don’t get an investor’s attention, they’re done for.”

To help entrepreneurs who didn’t succeed on the show (and to offer all entrepreneurs the tricks of the pitching trade) Sullivan teamed up with business coach Tina Frey to host our new show Fix My Pitch. Over the course of this season, four failed Elevator Pitch contestants will receive training from world-class pitching and startup experts. Their ultimate goal? Scoring a second chance in the elevator to win a life-changing investment from our board.

On this episode, Anthony and Tina meet two contestants with science-based companies and break down some of the basics of a winning pitch. Anthony says it comes down to the three P’s all lining up perfectly: “The pitch, the person and the product.”

Here are some of the big areas Tina and Anthony drill down on with the entrepreneurs:
- Exuding confidence with your words and body language
- Finding that inner salesperson even if you are an introvert
- Keeping your message simple and digestible
- Selling by telling a great story
See how the contestants respond to their first round of blunt criticism, and see if any of Anthony and Tina’s tips can be applied to you and your business. (Spoiler alert: 100% of these tips can be applied to you and your business!)

Fix My Pitch contestants

Ashley Rosulek, founder of Osweetfitness, affordable, high-quality luxury athletic wear

Brandon Storms, founder and CEO of Retavo, a platform to launch and maintain a state-of-the-art enterprise-grade marketplace at an affordable price

William Colton, MS, CEO of Paldara, a company harnessing the power of natural bacteriophage to fight and prevent disease.

Arvin Bhangu, founder of Superintelligence, a research lab that aims to create a system that allows for the co-existence of humans and Artificial General Intelligence (AGI)

Fix My Pitch experts

Anthony Sullivan, celebrity pitchman and entrepreneur

Tina Frey, keynote speaker, coach, communications expert, and author of The ART of Facilitation

Fix My Pitch is sponsored by State Farm. New episodes stream Wednesdays now through October 4, 2023 on Entrepreneur.com. Season 10 of Entrepreneur Elevator Pitch premieres on October 18, 2023.
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Entrepreneur Staff

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September 20, 2023
The Rise and Impact of Independent Contractors in 2023 | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

This story originally appeared on Readwrite.com

The seismic shift in the global workforce towards the inclusion of independent contractors has marked the dawn of a new era in employment trends. The democratization of work, propelled by technological advancements, legislative changes, and evolving worker preferences, has paved the way for this paradigm shift. In the 2020s, these contractors— once seen as peripheral players — have gradually moved from the fringes to the heart of the modern workforce, embodying a transformative trend that promises to redefine the future of employment.

This article explores the journey of independent contractors, tracing their evolution from niche roles to mainstream workforce options. It analyzes how the acceleration of remote work, spurred initially by technology and later dramatically propelled by the COVID-19 pandemic, fostered an environment conducive to the growth of independent contractors. The increased reliance on the gig economy is also assessed, shedding light on its contribution to the surge of independent work.

Related: Yes, You Can Use AI for Marketing. But Don’t Forget About the Benefit of Human Touch.

Looking into the future, this piece explores the potential trends and challenges that independent contractors could encounter. The advent of Artificial Intelligence (AI) and automation, the continued rise of the gig economy, evolving legal landscapes, and the possible impact of broader economic and societal factors are all critically examined. These elements will undoubtedly shape the future of independent contractors in the workforce.

Employment trends in the 2020s

As we enter the third decade of the 21st century, one of the most notable shifts in the labor market has been the rise of independent contractors. This trend is not just a minor blip on the radar but a significant shift reshaping the nature of work, employment, and business operations.

Shift toward remote work

The shift toward remote work has played a significant role in the rise of independent contractors. Technological advances, particularly the widespread availability of high-speed internet and the development of various digital tools and platforms have made it possible for individuals to work from anywhere in the world. This shift has increased the demand for independent contractors and created an environment where it is easier for individuals to start and operate their own businesses, often working as independent contractors themselves.

The move toward remote work started to gain momentum in the early 2000s, but it was the COVID-19 pandemic that really accelerated this trend. As businesses were forced to close their offices and shift to remote work, they had to rethink their staffing strategies. Many found that hiring independent contractors already set up to work remotely was an effective solution. This shift has not only led to a rise in independent contractors but has also opened up a whole new world of opportunities for individuals and businesses alike.

The gig economy

The gig economy, characterized by short-term, flexible jobs often facilitated by digital platforms, has also contributed to the rise of independent contractors. Gig workers, who are usually classified as independent contractors, offer services per job. This includes everything from ride-share drivers to freelance writers and graphic designers.

The gig economy has exploded in recent years, driven by the desire for flexibility and the ability to work independently. For businesses, the gig economy offers a flexible workforce that can be scaled up or down depending on demand without the overhead costs associated with traditional full-time employees. For workers, the gig economy allows the freedom to choose when, where, and how much they work.

Changes in employment legislation

Changes in employment legislation have also played a role in the rise of independent contractors. In many countries, employment laws have been updated or revised to reflect the changing nature of work. These changes often focus on providing more protections for independent contractors, recognizing their growing importance in the modern workforce.

How have independent contractors changed in the past decade?

From peripheral to mainstream: The rising role of independent contractors

A decade ago, independent contractors were a peripheral part of the workforce. They were typically engaged in specialized tasks that were not within the core competency of organizations. However, over the years, they’ve moved from the fringes to the core of the workforce.

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

Today, independent contractors are integral to the functioning of many organizations. They bring in unique skills and flexibility that allow organizations to adapt quickly to changing business landscapes. The rise of independent contractors has been facilitated by several factors, including technological advancements and changing workers’ attitudes and preferences.

Technological innovations facilitating independent work

Technology has played a pivotal role in the rise of independent contractors. The advent of digital platforms has made it easier for organizations to connect with independent workers.

These platforms have increased the visibility of independent contractors and made it easier for them to find work. They have also simplified managing independent workers, making it more feasible for organizations to incorporate them into their workforce.

Additionally, the proliferation of remote work tools, like project management software and video conferencing, has enabled organizations to collaborate effectively with independent contractors, regardless of location.

Changes in workers’ attitudes and preferences

Alongside technological advancements, there’s been a shift in workers’ attitudes and preferences. More and more workers, especially from Generation Z, are now seeking flexibility and autonomy, which independent work offers. Independent contractors have the freedom to choose their projects, set their own rates, and work at their own pace. The traditional 9-to-5 work schedule does not bind them, and have the liberty to work from anywhere. This shift in workers’ preferences has further spurred the rise of independent contractors.

Future trends for independent contractors

The continued growth of the gig economy

Looking ahead, the gig economy is expected to continue its upward trajectory, propelled by its advantages to organizations and workers. For organizations, independent contractors offer a cost-effective way to access specialized skills. They also provide the flexibility to scale up or down depending on business needs. For workers, the gig economy offers the flexibility and autonomy that many seek in their work. The continued growth of the gig economy will likely further increase the prevalence of independent contractors in the workforce.

The role of AI and automation in independent work

AI and automation are set to play a significant role in the future of independent work. These technologies can automate routine tasks, allowing independent contractors to focus on more complex and value-adding tasks. They can also help match independent contractors with suitable projects, making finding work more efficient. However, they also pose a threat to jobs, especially those that involve routine and repetitive tasks. Independent contractors must continually upskill and reskill to stay relevant despite these technological advancements.

Evolving legal landscape for independent contractors

The legal landscape for independent contractors is also evolving. Governments worldwide are grappling with the challenge of protecting independent contractors’ rights while fostering the growth of the gig economy. Some countries are introducing laws to provide independent contractors with benefits typically associated with traditional employment, like paid leave and health insurance. However, these laws also risk stifling the flexibility that makes independent work attractive. Striking the right balance will be a key challenge for policymakers.

Potential impact of economic and societal factors

Economic and societal factors could also impact the future of independent contractors. Economic downturns, for instance, could lead to a surge in independent work as organizations look to cut costs. Conversely, economic booms could decrease independent work as organizations have more resources to hire full-time employees. Societal factors, like changing attitudes toward work-life balance, could also influence the prevalence of independent contractors. The demand for independent work could increase if more workers prioritize flexibility and autonomy.

Conclusion

In conclusion, the rise of independent contractors has been a significant shift in the modern workforce. This trend is likely to continue, driven by technological advancements, changing workers’ attitudes, and the evolving economic and legal landscape. As we navigate this new world of work, organizations, workers, and policymakers must understand and adapt to these changes. Independent contractors are here to stay, and they will play an increasingly important role in shaping the future of work.

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Gilad Maayan

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September 18, 2023
How to Successfully Transition From Solopreneur to Team Leader | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

Strap in, ambitious solopreneurs, because we’re about to elevate your game from one-man wonder to a synergistic powerhouse. You’ve hustled hard, pulled all-nighters and turned your nascent idea into a full-blown operation. Kudos! But here’s the real talk: You’ve hit that proverbial ceiling, and it’s time to break through.

We’re transitioning you from solopreneurship to a dynamite team, and we’re doing it like pros. No fluff, no filler — just actionable, expert-level insights that you can implement right now. Ready to multiply your impact and skyrocket your enterprise? Let’s dive in.

Related: 4 Key Indicators It’s Time for You to Hire Your First Employees and Stop Doing Everything Alone

Step 1: Acknowledge the inflection point

Let’s not sugarcoat it — there comes a moment in your solopreneurial journey when you’re straddling the fence between self-sufficiency and needing an extra pair of hands. You’ve got more business than you can handle, and sleep has become an estranged friend. This, my friend, is your inflection point, and it’s the universe screaming at you: “Hey, it’s time to scale!”

So, how do you know you’ve reached this milestone? You’re drowning in tasks, your calendar looks like a game of Tetris, and let’s be real, you’re not Elon Musk — you can’t single-handedly launch rockets and run multiple companies. So, don’t. Instead, focus on strategizing your next move, which is assembling your dream team.

Step 2: Strategic role identification

Before you spam LinkedIn with job postings, pause. Take a deep dive into your operational workflow. Identify the bottlenecks only a specialized skill set can alleviate. Look, not every Tom, Dick or Harriet with a CV can drive your vision forward.

Create a list of roles critical to your business. But don’t just create any roles. I’m talking about roles so strategic that filling them will multiply your efficiency, not just add to it. Think — a Tech Lead who can spearhead your product development or a Digital Marketing Wizard who knows SEO like the back of their hand.

Step 3: Financial forecasting and budget allocation

Unless you’ve discovered a tree that grows money, you need to allocate your finances meticulously. Bootstrapping is not going to cut it when you’re onboarding a team. Sit down with your financial statements, and let’s do some adulting.

How much revenue are you generating? What are your projected earnings? Calculate the ROI for each new hire. Will they bring in more business? Enhance productivity to a point where you can accept more clients? If the math doesn’t add up, you’re not ready. If it does, proceed with purpose.

Step 4: The hiring process

Hold onto your hat because the hiring process is a rollercoaster ride. You’re essentially dating professionally, and you can’t afford to match with the wrong person. Utilize specialized job boards, network ferociously, and even consider headhunters if you’re looking for rare skills.

During the interviews, go beyond the technicalities. Assess cultural fit, soft skills and their vision alignment with your enterprise. You’re not building a team of robots; you’re constructing a powerhouse of innovative minds.

Step 5: Onboarding and culture development

Congratulations, you’ve got your team! But hold those horses; we’re not popping champagne yet. An effective onboarding process is not a nicety; it’s a necessity. Spend quality time educating your team about your business processes, culture and expectations.

Remember, culture is not built overnight but through consistent actions and shared values. Be the leader who doesn’t just tell people what to do but shows them how it’s done. Create an environment of open dialogue, continuous learning and mutual respect.

Related: Transitioning From Solopreneur to a Team Leader

Step 6: Performance metrics and KPIs

In business, what gets measured gets managed. Implement Key Performance Indicators (KPIs) that align with your business objectives. You can’t gauge the effectiveness of your team without solid data. I’m talking hardcore analytics, feedback loops and quarterly reviews.

Your team should not just know what their roles are; they should be crystal clear about how their performance will be evaluated. Remove subjectivity and replace it with measurable outcomes. Anything less is managerial malpractice.

Step 7: Conflict resolution and team dynamics

Human beings are wonderfully complex creatures. No matter how meticulous you’ve been in the hiring process, conflicts are as inevitable as taxes. But guess what? They’re not necessarily a bad thing. Conflicts can lead to constructive discussions, challenge stagnant perspectives and birth innovative solutions.

The key is to not let conflicts fester. Address them head-on. Create a culture where employees feel comfortable voicing their concerns. Remember, as the leader, you set the tone for conflict resolution. Use structured frameworks to mediate disagreements, such as an interest-based relational (IBR) approach or principled negotiation. These are not mere buzzwords; they’re the bread and butter of effective team management.

Step 8: Continuous learning and skill upgradation

We live in a digital age where the landscape changes faster than you can say “disruptive innovation.” Continuous learning isn’t a nice-to-have; it’s a must-have. You and your team need to be in a state of perpetual skill enhancement. I’m talking webinars, online courses, certification programs — the whole nine yards.

Set aside a budget for professional development. Encourage your team to identify skill gaps and find ways to bridge them. Is your digital marketer falling behind on the latest SEO trends? Time for a course. Is your tech lead scratching their head over a new coding language? A coding boot camp might be the answer. Make it known that growth isn’t just a company objective; it’s a personal mandate for each team member.

Step 9: Scale, evaluate and iterate

Your team is in place, and the ball is rolling. This is not the time to kick back and relax; it’s the time to scale, evaluate and iterate. Keep an eye on your performance metrics, and never let complacency creep in.

Evaluate your team’s work, assess your own role as a leader, and make necessary pivots. Perhaps you need to refine your marketing strategy, or maybe your product development needs a more agile framework. Be prepared to make real-time adjustments. The marketplace waits for no one, and certainly not for an entrepreneur too stubborn to adapt.

There you have it — an expert-level, no-nonsense guide on transitioning from a one-man-show to a high-impact team. In the cutthroat world of entrepreneurship, standing still is moving backward. Remember, building a team doesn’t dilute your vision but amplifies it. You’re not losing control; you’re gaining traction. Now, go build that dream team, and let’s rocket that business to the stratosphere!

Related: 9 Tips Guaranteed to Build a Winning Team

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Chris Kille

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September 11, 2023
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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September 8, 2023
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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September 5, 2023