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Tag: Entrepreneurs

  • How to Create Effective Recognition Programs for Startup Founders | Entrepreneur

    How to Create Effective Recognition Programs for Startup Founders | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the bustling world of startups, the concept of “sweat equity” often buzzes in the background, unrecognized yet vital. Founders pour their time, expertise and relentless energy into building their ventures from the ground up. While financial investments are typically acknowledged and rewarded, the non-financial contributions — or sweat equity — of these entrepreneurs are just as crucial for success but often go unnoticed.

    The recent surge in tech layoffs and its impact on the startup ecosystem is a testament to sweat equity. In 2024, the tech industry has experienced a significant wave of layoffs, with 60,000 job cuts across 254 companies, including major players like Tesla, Amazon and Google. This development highlights the precarious nature of tech and startup employment, underscoring the importance of acknowledging and valuing the non-financial investments that founders make in their startups.

    Additionally, Microsoft’s recent initiatives, such as the Startups Founders Hub, demonstrate a growing recognition of the challenges founders face and the support they require. This program provides up to $150,000 in Azure credits to help founders develop their startups without heavy initial investments, emphasizing the value of supporting the non-financial contributions that drive innovation.

    Related: How Startups Can Boost Team Morale and Drive Success Through Recognition

    Understanding (and recognizing) sweat equity

    Sweat equity is not just about the number of hours logged; it encompasses all the non-financial investments founders make in their startups. This includes the late nights, the strategic decisions made in the wee hours of the morning, the continuous learning and adapting, and the personal sacrifices. According to a study by the Kauffman Foundation, over 80% of startups are bootstrapped, which means founders are both chief executives and chief investors of their time and skills.

    Recognizing the immense value of sweat equity is a strategic move. A survey conducted by Gallup and Workhuman found that companies with high employee recognition levels are 20 times more likely to be engaged as employees who receive poor recognition. When founders feel valued for their non-financial contributions, it boosts their morale and loyalty, directly influencing their enthusiasm and commitment to the venture. Recognizing these efforts fosters an environment where the intrinsic rewards of entrepreneurship are celebrated alongside the financial gains.

    Creating a recognition program for founders should not be a one-size-fits-all approach. It should be as unique as the startup itself, reflecting its culture and growth stage. For instance, a tech company might recognize breakthrough innovations with annual corporate awards, while a social enterprise might highlight efforts toward social impact. Buffer, a social media management tool well-known for its transparency, extends this value into recognizing its founders by openly sharing the challenges and successes in their monthly blogs, which not only recognizes the founders’ efforts but also engages the community in their journey.

    Related: From Launch to Succession: Tips for Building a Thriving Business

    How to pump up your recognition efforts

    By integrating a few detailed action steps and leveraging insights from successful companies, you can create a robust recognition program that acknowledges the hard work of founders while driving your startup toward greater success and cohesion. Consider the following:

    1. Assess current recognition practices:

    Before crafting a new recognition program, conduct a thorough assessment of existing practices within your startup. According to a Gallup study, only one in three workers in the U.S. strongly agree that they received recognition or praise for doing good work in the past seven days. This highlights a significant gap in recognition at many organizations. Start by surveying founders and key stakeholders to understand what is currently working and what isn’t. This initial feedback will serve as a baseline for developing a more impactful recognition strategy.

    2. Develop personalized programs aligned with values:

    Personalization is key in recognition programs. A study by Deloitte found that organizations with high-performing recognition practices are 12 times more likely to have strong business outcomes. Take inspiration from companies like Zappos, which tailors recognition strategies to match its corporate values and unique culture. For instance, Zappos offers “Co-Worker Bonus Programs” where employees can award each other monetary bonuses for going above and beyond. Aligning the program with your startup’s values ensures it resonates well with the founders and reinforces the behaviors that are critical to your startup’s success.

    3. Foster peer recognition and celebrate achievements:

    Peer recognition can significantly enhance workplace morale and productivity. A report from SHRM/Globoforce found that peer-to-peer recognition is 35.7% more likely to have a positive impact on financial results than manager-only recognition. Encourage a culture where founders and team members frequently acknowledge each other’s efforts. This can be facilitated through platforms like Bonusly, where employees can give each other micro-bonuses that add up to meaningful rewards. Celebrating achievements, big and small, ensures ongoing motivation and engagement.

    4. Continuously evaluate and adapt recognition efforts:

    Effective recognition programs require ongoing evaluation to stay relevant and impactful. Regularly gather feedback through surveys, focus groups and one-on-one interviews to understand the effectiveness of your recognition efforts. Companies like Salesforce exemplify this approach through their “V2MOM” (Vision, Values, Methods, Obstacles, and Measures) process, which involves continuous feedback and goal alignment across the company. This method ensures that all team members, including founders, are aligned and can contribute to the evolution of recognition efforts. By maintaining a dynamic feedback loop, you can make data-driven adjustments to the program, ensuring it evolves with your startup’s needs and continues to motivate and inspire your team.

    Related: The Psychological Impact of Recognition on Employee Motivation and Engagement — 3 Key Insights for Leaders

    By using such a dynamic and inclusive approach, startups can ensure their recognition programs remain effective and responsive to the needs of their founders and team members.

    Developing a founders’ recognition program is about nurturing a culture that values each drop of sweat that goes into a startup. Such a culture accelerates growth and cements a foundation of loyalty and mutual respect that can endure the challenges typical of the startup world. As startups continue to evolve, the recognition of every contribution, financial or otherwise, will remain a cornerstone of sustainable success.

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    Mike Szczesny

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  • Did OpenAI steal Scarlett Johansson’s voice? 5 Critical Lessons for Entrepreneurs in The AI Era | Entrepreneur

    Did OpenAI steal Scarlett Johansson’s voice? 5 Critical Lessons for Entrepreneurs in The AI Era | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Did OpenAI steal Scarlett Johansson’s voice? OpenAI has since paused the “Sky” voice feature, but Johansson argues that this is no coincidence. In response, Johansson delivers a masterclass for entrepreneurs on navigating the AI era successfully.

    In today’s discussion, we delve into what this controversy means for business owners, highlighting five critical AI strategies they must deploy. We also explore essential methods to protect your intellectual property and leverage AI for a competitive edge—insights vital for keeping your venture ahead in the AI revolution to remain your competitive advantage.

    Take the AI skills quiz here (available for a limited time) and equip yourself with practical knowledge by grabbing a copy of my new book, ‘The Wolf is at the Door – How to Survive and Thrive in an AI-Driven World.’

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    Ben Angel

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  • 5 Tips on Building Strategic Alliances for Business Growth | Entrepreneur

    5 Tips on Building Strategic Alliances for Business Growth | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As an entrepreneur, it’s you against the world. Or, at least that’s how it often feels being a small business owner, especially a solopreneur. Here’s the reality: Success is rarely achieved in isolation. The most successful business people understand that the power of connecting with others is the key to unlocking new opportunities and growth.

    Surrounding yourself with professionals, business owners and industry leaders can provide a myriad of opportunities to access resources, gain knowledge and build strategic partnerships. Let’s look at some best practices to build an effective network to support the growth of your business.

    Related: 4 Reasons Why Networking Is a Must for All Successful Entrepreneurs

    1. Lead with value first

    The most successful networks work because both parties have the opportunity to benefit from one another. Establishing a strong, reciprocal relationship from the outset is crucial. Instead of focusing solely on what you can gain, prioritize what you can offer to others.

    Providing value can take many forms, such as making introductions within your network, sharing industry insights or offering assistance with specific challenges where you have expertise. By consistently offering value, you can build trust and goodwill, which in turn makes others more inclined to support and help you.

    2. Connect with complementary partners

    When building networks, it’s important to carefully consider what types of relationships would bring the most value to your business. In many cases, the right people are the ones that offer different, but complementary services. For example, a tax accountant might want to build a relationship with an estate attorney.

    There are a few benefits to this approach. One, both individuals get the benefit of being able to access expanded knowledge related to their business. This relationship can also be an excellent source of referrals from the other’s client base. This is important for business growth since B2B referrals statistically have a 71% higher conversion rate.

    Related: Effective Networking Requires Mastering These 5 Skills

    3. Be selective about who you let into your circle

    Fostering relationships takes a lot of time and effort, so it’s essential to be selective about who you include in your network. Studies have shown that half of all people struggle to maintain long-term contact with their professional networks. By limiting the number of people in your circle, you can dedicate more time to building strong, meaningful relationships with each individual.

    Additionally, it’s important to avoid associating yourself or your business with individuals who have a negative reputation, as their actions could harm your own reputation, despite any access or benefits they might offer. This approach isn’t about being pretentious, but rather about valuing your time and ensuring that your network is built on trust and mutual respect.

    4. Look within your industry

    While finding complementary members to add to your network is helpful, many entrepreneurs tend to lack focus. It’s natural to want to avoid others in your industry, as there may be some conflict of interest. However, it’s important to build relationships with individuals who totally understand your business, and that will be people who have similar businesses. Look to those in the same industry, but with a slightly different business focus, a different target customer or a different geography.

    5. Participate in a business advisory board

    Participating in a business (or peer) advisory board is a valuable way to learn new skills and share the burdens that come with operating a small business. These boards provide a platform for entrepreneurs and business leaders to share their concerns and frustrations and also receive feedback or advice based on others’ past experiences. This collaborative environment fosters learning and problem-solving, helping you navigate challenges more effectively in a safe environment.

    Related: Want to Succeed as an Entrepreneur? Discover the Key to Building Long-Lasting Connections

    Networking is more than just a passive activity. It’s a strategic investment in the future of your business. At the end of the day, the amount of effort you decide to put into building and nurturing strategic relationships can yield substantial returns for your business.

    Building the right network isn’t always easy, especially as entrepreneurs and small business owners struggle to keep their heads above water on a daily basis. Having a professional business coach can be an invaluable asset in your networking journey. Coaches can help provide guidance as you navigate the complexities of networking and also provide introductions to influential contacts within their networks.

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    Nicholas Leighton

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  • How a $10,000 Investment in AI Transformed My Career and Business Strategy | Entrepreneur

    How a $10,000 Investment in AI Transformed My Career and Business Strategy | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In 2023, I took a gamble that paid off beyond expectations: a $10,000 investment in AI education, a decision that reshaped my career and business strategy. Despite my background in accounting and business, diving into AI and machine learning was uncharted territory. But before we dive into the impact of this decision, here’s a little background about me and some of what I did in 2023.

    One thing that I want to stress for those reading this article is that you don’t need to go to school for artificial intelligence, machine learning or data science to be truly great at leveraging it. Sure, having a formal background will never hurt, but it should not deter people who are interested in this field from exploring it. I can attest to my statement because I went to school for a B.S. in accounting and a master’s in business administration, obtained a CPA license in New York State, and then pivoted my career through self-learning business intelligence and AI/ML data science consulting–building a business securing over 135 clients in less than a three year period from scratch — some of which include clients like Microsoft, Tory Burch, U.S. Army, Danaher, etc.

    Why am I saying all of this?

    Well, on November 30, 2022, I met ChatGPT3 for the first time, but I was just another end user. I wasn’t this AI subject matter expert or guru who could break concepts down for people and develop business strategies for AI implementations yet. I was simply present for the initial debut of the large language model technology era and cared enough to want to know more because it was at this point that I knew this technology would change the world forever.

    My mind began to contemplate how generative AI would disrupt many career paths, but it would also create an abundance of opportunities for individuals and companies that know how to use it effectively. Immediately, I started searching online for courses that I could learn about generative AI, and unfortunately, at the time, there were none available, but I didn’t let that stop me. I just started with understanding the basics of AI/ML, even without the deep learning or generative component and signed up for two certificate programs at Massachusetts Institute of Technology, where one focused on building data science solutions leveraging machine learning and AI. The other one focused on building AI products and services and deploying them into production.

    Additionally, I took a few courses on Udemy that focused on how to use the OpenAI APIs and learned important prompt engineering techniques, such as the COSTAR framework. Lastly, I invested in some subscriptions to AI tools such as Midjourney via Discord and others, which enabled me to join a network of other creatives who want to use this technology. I joined plenty of networking groups online across various platforms, which enabled me to soak up information and updates at a rate that was far faster than any media outlet could provide. In total, all of this education bundled to nearly $10,000, but it was an investment that was 100% worth it. Here are three key reasons why:

    1. Network expansion

    During my education reinvestment phase, I identified my go-to AI networks for updates and idea exchanges. This serves as a tremendous resource, especially as the pool of individuals within these networks is so diverse, representing companies, products and services across various industries. This network has led to additional referrals and opportunities to expand business and collaborate with others on projects in an informal setting. As a result of this network, I built an active community on Discord and LinkedIn group of IT AI/ML professionals across various industries of over 400 professionals and have partnered with a couple of them on some innovative AI projects.

    2. New service lines

    After I truly began to understand and see how generative AI worked and what skills people and businesses lacked to effectively deploy solutions and strategies of this nature, I was able to build a team within my business that understands the market need for companies who are looking to adopt generative AI solutions. This decision enabled me to open additional service lines within my business, bringing additional value to our existing client base and referral partnerships and winning new work in the marketplace that previously did not exist. For example, I started offering playbooks for enterprises on Copilot deployment strategy, as well as training and education for SMBs on prompt engineering, doing company-specific webinars tailored to their business needs.

    Related: I Tested AI Tools So You Don’t Have To. Here’s What Worked — and What Didn’t.

    3) Now an official paid speaker in AI

    Some say it would be their dream to get paid to speak. It’s an amazing thing for me to be able to say that I am a paid speaker for foundations, SMB organizations, women entrepreneur groups and other networks at a rate of $5,000 a gig. It was because of my reinvested education, along with client experience in this space, that I could parlay my understanding and knowledge over every genAI project I worked on or a concept I firmly understood into a brand new revenue stream I had not yet considered before. I remember my first paid event — it was a webinar for over 70 SMB owners, and I had the pleasure of broadly sharing the impacts of AI across businesses and industries, giving them lots of ways to consider the impacts of the technology and how it may relate to their day-to-day lives. My goal was to provide them with as much value as possible, and based on the responses and feedback, that goal was achieved.

    This journey taught me the value of continuous learning and adaptation in the fast-evolving world of AI, and for those who are reading this, your next game-changing business strategy could be just one learning experience away.

    My motto has and will always be simple: If you’re going to do something that you believe in, why not go all in?

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    Jacqueline Ann DeStefano-Tangorra, CPA, CFE, MBA

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  • This 35-year-old turned a local Indonesian coffee stall into a unicorn startup — today it brings in $100 million a year

    This 35-year-old turned a local Indonesian coffee stall into a unicorn startup — today it brings in $100 million a year

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    In college, Edward Tirtanata had a brewing love for coffee, so much so that he’d order “one huge cup” every day from either Dunkin’ Donuts or 7-Eleven.

    Today, the 35-year-old CEO and co-founder of venture-backed unicorn coffee company Kopi Kenangan, still has his cup of joe daily — except that he’s upgraded it to three or more cups a day for “product testing” purposes.

    What started as a local Indonesian coffee stall in 2017 has now become an international coffee brand worth over $1 billion, with more than 800 locations across Southeast Asia.

    The company raked in over $100 million in sales in 2023, according to documents provided to CNBC Make It.

    Within the span of seven years, Kopi Kenangan went from a local Indonesian coffee stall to a venture-backed unicorn coffee company.

    Entrepreneur in the making

    Tirtanata grew up in the Indonesian capital of Jakarta.

    But he moved to the U.S. in 2007 when he started college at Northeastern University in Boston, where he studied finance and accounting.

    While he never enjoyed studying, he had the heart of an entrepreneur from the start.

    Edward Tirtanata with his parents.

    Courtesy of Edward Tirtanata

    “When I was a kid, I was definitely naughty — I didn’t really study much,” he told CNBC Make It. “But whenever there is an opportunity to make money or do businesses, I always [got] excited.”

    “It’s not about the money — it’s about the pleasure of doing it. It is something that really excites me until today,” he said.

    Even as a student, Tirtanata discovered a key business principle: “Buy low, sell high.” He learned to sell Pokémon cards and gaming bots to friends at school for a profit. It was almost instinctive for him.

    Inspired by his parents who were also entrepreneurs, Tirtanata always enjoyed the hustle of making his own in the world.

    Edward Tirtanata with his family.

    Courtesy of Edward Tirtanata

    During his freshman year in university, he received a fateful call from his mother, who revealed that his father’s business had encountered some major financial setbacks.

    After that call, Tirtanata decided to speed through his five-year program and finished it in three.

    He quickly returned to home Indonesia and became his father’s business partner.

    “Back then, my days were filled with a lot of stress and uncertainty — but I think this is one of those moments that made me a better entrepreneur,” said Tirtanata. Despite facing these financial difficulties with his family, Tirtanata went on to forge his own entrepreneurial path.

    Business beginnings

    Before starting Kopi Kenangan, Tirtanata opened a tea shop chain called Lewis & Carroll in 2015 with locations across Indonesia. By the time he opened his fifth store, he realized that the tea shop wasn’t as profitable as he expected.

    Tirtanata and his long-time friend James Prananto discovered the problem one day, when they were having a casual chat at his tea shop: many of the big coffee and tea chains in Indonesia were too expensive for the local population.

    According to the Starbucks Tall Latte Index, while a Starbucks tall latte costs approximately 2% of the median daily income of people in the U.S., that same drink costs more than 30% of the median daily income of people in Indonesia.

    Kopi Kenangan’s first outlet in Indonesia.

    Courtesy of Edward Tirtanata.

    The idea of Kopi Kenangan was born.

    In 2017, Tirtanata and Prananto together invested a total of $15,000 into their first grab-and-go location in Jakarta, Indonesia. This model allowed them to ditch the costs of renting and designing a sit-down cafe space, and instead, invest that money into quality ingredients. 

    “Instead of focusing on the sofa, or fast Wi-Fi, we’re going to focus on a good, high quality cup of coffee,” Tirtanata said.

    This decision helped Kopi Kenangan scale to over 200 locations and 10 cities within the first two years of operations.

    Kopi Kenangan’s secret formula

    It’s no secret that the coffee business is highly saturated, especially in big metro areas.

    Asked what has separated Kopi Kenangan from its competitors, Tirtanata said there are three major reasons: the company’s grab-and-go model, it is a tech-enabled business, and it takes a hyperlocal approach.

    “So while Starbucks and other global coffee chains really prioritize consistency, I realized that people have different tastes and preferences,” he told CNBC.

    “This is where we really shaped our strategy for our global expansion — we want to make sure that the sweetness and robustness of the coffee really suits the market that we are operating in, using a data-driven approach,” Tirtanata said.

    Taking a data-driven hyperlocal approach means that a Kopi Kenangan latte in Singapore will taste different from a latte in Indonesia.

    During Covid, Tirtanata and Prananto doubled down on their efforts to integrate technology into their business. This helped Kopi Kenangan more than triple its store count during the pandemic.

    From Indonesia to the world

    As of April, the coffee chain has raised over $230 million in funding from investors across the globe, according to documents seen by CNBC Make It.

    Tirtanata with the Kopi Kenangan team.

    Courtesy of Edward Tirtanata

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  • How to Turn Your Hobby Into a Business | Entrepreneur

    How to Turn Your Hobby Into a Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    A few years ago, my friend Sabah turned her passion for cooking into a chef-on-demand business. She started off serving her local Cleveland area, quickly grew to cover other major Ohio cities and plans to expand even further. She is just one of the many people I know who have turned their passion project into a successful business.

    We all have our passion projects. We do them because they’re fun, or we like the challenge, or they’re our way of doing some good in the world. From time to time, though, our niche interests and hobbies lead us to marketable ideas. For many, that’s as far as it goes; they don’t know how to take the next step.

    Sabah had a shortcut — she’s married to my friend and business partner, who knew not only the next step to take but all the steps after that. If you’re not lucky enough to have a spouse or friend who can help, here’s how to turn your passion project into a successful business.

    Related: Ten Tips To Turn Your Passion Project Into A Business

    Hobbies that make great side hustles

    So you have a niche hobby, and you’re wondering: How can I make some money from this? It’s important to remember that not all hobbies are created equal, financially speaking. And a niche interest that might have driven profits 20 years ago (collecting Beanie Babies, say) could be a financial sinkhole today.

    By keeping a pulse on the zeitgeist, you can anticipate trends and hobbies gaining public interest — and capitalize on those trends. Some, like the following, are side hustle ideas you could start at any time.

    Photography

    Senior portraits, weddings, special events, professional headshots — quality and affordable photography never lacks in demand. With a website highlighting your work, you can book clients and start earning money from your passion.

    Coding

    From bug bounty programs to website design, freelance coding offers major earning opportunities. A background in HTML, Python, Java, C++ or a myriad of other coding languages can be a financial boon.

    Home design

    If you designed your home to belong in an issue of Architectural Digest, others will take notice. Consult on color palettes, furniture selections, room layouts and lighting — and bring your curated aesthetic to the masses with a home design business.

    Video and audio production

    Whether promoting a brand on social media or starting a podcast, freelance producers can bring a marketing campaign to life. Sell yourself with past work, and mention your experience with programs in the Adobe Creative Suite or Pro Tools.

    Gardening

    Your green thumb could put some green in your pocket. The landscaping and gardening industry was valued at more than $250 billion in 2024, according to Mordor Intelligence, and if your own garden is thriving, you can fill a niche in your own (proverbial) backyard.

    Writing

    Can you construct clear and concise copy for a variety of clients? If so, the opportunities are as vast as your vocabulary. Wordsmiths can serve as speechwriters, copywriters, technical writers and ghostwriters, as well as assist with any editing needs.

    Baking

    Your beautiful cakes, cookies and baked goods could be more than delicious treats; they could be a source of income. Many entrepreneurs found success with home baking during the pandemic, and with proper planning and consistent clients, you can join them.

    Vetting if your hobby could be a business

    Before you make any hard commitments or major financial decisions, consider if your niche hobby can earn consistent money. Who is the target client? How much are current practitioners charging? How much money do you have saved? How much do you expect to make?

    It’s crucial to be clear-eyed about expectations before investing your own money into your venture. The following steps can help you assess whether or not to turn your passion project into a side hustle — or even a career.

    Run it by friends

    When we have that eureka moment, it sometimes blinds us to flaws in our logic. To get a quick check, run your idea by a few trusted friends. They might be able to point out roadblocks you didn’t think of or know a way to bring your idea to life. For Sabah, that meant asking other chefs for input. Avoid relying solely on one or two peoples’ opinions, but do gauge your friends’ enthusiasm. After all, close confidantes have your best interests in mind.

    Analyze the market

    Chances are, others have had your idea. Sabah wasn’t the first to think of a chef-on-demand service, but when she analyzed the market, she realized her idea could still work. Market analysis requires thoroughly researching consumer trends and expectations, market size and the demand for your offering.

    To truly excel, you must conduct a thorough analysis of your rivals. Although they might offer a comparable product, your goal is to surpass them. Analyze their customer feedback to identify gaps. When you look hard at similar businesses, you might find opportunities to fill the gaps they’re leaving.

    Network

    Networking with others who have launched their business or product can be invaluable. They’re ahead of you on the journey and can help you avoid costly missteps. If you’re lucky, you might find someone with similar experience and a willingness to mentor you. A good mentor can help you find the path forward when you hit a roadblock. Keep the lines of communication with your network and your mentor open. They know the twists and turns and can save you headaches and expenses.

    Devise a business plan

    Don’t invest significant money into a project before creating a detailed business plan. Prior steps, such as analyzing the market, will help you write this document, and you’ll want to come away with clear financial expectations. Do the math — calculate your startup and overhead costs, insurance, marketing budget, earnings expectations and taxes. This will give you some base-level expectations and a roadmap to funding, if necessary.

    Getting your side business off the ground

    You’ve done your research. You’ve talked to friends and other entrepreneurs. You’ve analyzed the market and built a business plan. Now it’s time to take the first big step: getting your side business off the ground.

    Turning passion into profit takes work. Don’t be discouraged. There may be moments of doubt and anxiety as your business slowly ramps up. Lean on mentors, and consult your business plan. Like Sabah, if you’ve done the proper pre-launch work, you can keep your head down and follow the roadmap. The following steps can position you for success when turning your niche hobby into a business.

    Build an MVP

    In the software development world, a minimum viable product (MVP) is a way to test your idea with a small group of early adopters. It’s essentially an early product version with just a few core features. For Sabah, the MVP was a limited menu with a select set of chefs — and she was one of them. Once she proved her idea would work, she hired more chefs and added more meals to the menu based on the feedback she got from her customers. Early and genuine feedback is the goal of an MVP. After all, it’s easier and less expensive to make changes at the beginning of the development cycle than in the middle of it.

    Related: 5 Tips for Solidifying MVP, and Why It’s the Most Important Aspect of Building a Startup

    Set achievable goals

    Be realistic about your first-year financial expectations. In fact, it’s common for new businesses to lose money in their first year of business as they pay back initial investments and build consistent customer bases. Sabah set goals — both financial and personal — that she could reasonably achieve. But don’t mistake this for easy goals. You should be ambitious but practical when planning to achieve your goals.

    Get help

    Sabah didn’t build her business alone. She knew she needed help building the web applications her fledgling company needed and outsourced that work. Trying to do everything leads to stress, burnout and costly mistakes. It also takes you longer to get to market and could mean competitors beat you to the finish line. Engage freelance help or outsource product development to a team with the knowledge and bandwidth to quickly build a high-quality product.

    Knowing when to get help involves recognizing your strengths and weaknesses. Maybe you can build the product but need help with market analysis. Or maybe you need help with building a brand identity and marketing the product. Outsourcing some of the work frees you up to focus on what you’re good at and can take stress off your shoulders.

    Related: Asking For Help Is Good For You and Your Business

    Keep your finger on the pulse

    Markets and trends can shift rapidly, so it’s essential to keep tabs on competitors and monitor your customers’ needs. The last thing you want is a product that’s outdated by the time it launches or a business plan built around last year’s “it” thing. By staying up-to-date on market and cultural trends, you can be ready to shift priorities when the time is right.

    It’s been a joy to watch my friend’s business grow. She’s met challenges with grace and never lets setbacks slow her down. And that, too, is key to turning your passion project into a successful business: believing in your vision enough to stick with it, no matter what.

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    Bidhan Baruah

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  • 5 Ways Solopreneurs Can Scale Their Business Through Collaboration | Entrepreneur

    5 Ways Solopreneurs Can Scale Their Business Through Collaboration | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    There’s no shortage of examples of successful solopreneurs who have forged their own path to grow ground-breaking businesses. They’re often held up as people who value autonomy and control and who approach business building like it’s a hero’s journey.

    But I believe our culture has blown the “solo” part of solopreneurship out of proportion, leading many would-be entrepreneurs and creators to feel like they have to go it alone. And while solopreneurs are solely responsible for making decisions about their businesses, it doesn’t mean they have toil away independently on every aspect of it. Doing so can actually be detrimental.

    Many successful entrepreneurs find ways to involve others for support and guidance and to create a shared journey. Through my work with creators, many of whom are solopreneurs, I’ve seen how this approach can be transformational. For example, for many years, my company has hosted an event in which women of color within the creator economy have shared their experiences. We found that creating space for these solopreneurs led to record-breaking attendance. It’s all part of a larger movement that has seen solopreneurs come together in real life and on virtual platforms to leverage the power of community and collaboration.

    Related: 5 Ways for Solopreneurs to Sustain Momentum and Thrive

    As a solopreneur, you are part of something bigger

    The growing number of solopreneurs has effectively changed the face of our economy. Today more than 80% of American small business owners operate without any staff. For some, this works well.

    But I’ve noticed that many creators, for example, go into their journey with the mistaken belief that if they can’t figure it out on their own, they’re not cut out for entrepreneurship. The reality is that stoically resisting help or not seeking out support or community can lead to loneliness, burnout and even depression.

    Working with others is powerful, and many brands are tapping into this movement and finding ways to facilitate inspiration and connection by bringing their communities together – whether it’s around e-commerce, crowdfunding, fitness or other aspects of life and business. The cliche really is true: we may go faster alone, but we often go farther together. Embracing a community-based approach can lead to tangible benefits.

    The power of finding your people (and places)

    Broadening your definition of solopreneurship isn’t just about finding people to work with though. It can also be about uncovering solutions you didn’t know existed, getting access to information or guidance from people who have been there, or even just having a place to go when you need a break from your home office. Here are a few of the ways I’ve seen individuals take a collaborative approach to solopreneurship – and reap the benefits:

    Choosing tech platforms that offer community

    We’ve all experienced the rise of online communities – public and private – but consider the unifying force of tech tools that support people in achieving specific goals. Whether it’s launching a course or implementing a payment system, you’ll find people rallied around platforms offering concrete solutions. Choose your platforms wisely, and you’ll end up with more than just tools; you may find new colleagues, collaborators and a wealth of shared expertise.

    Working from a coworking space

    Anyone who’s ever worked from home – or launched a business from their basement – understands the value of a good coworking space. Beyond situating you among peers, they offer rich gathering spaces for solopreneurs who want to network, learn, and enjoy the creative energy of others. Research has shown that people thrive in coworking spaces thanks to the collective boost in productivity and creativity – and that they can also be a great antidote to burnout.

    Attending in-person conferences and events

    Ever since Covid put a pause on live events, it’s been tough for many of us to get back into the swing of it. But there are benefits to immersing yourself in a room full of strangers – particularly the opportunity to forge deeper connections. Sharing new experiences with other people in person can lead to the kinds of bonds you just don’t get over Zoom (and making that in-person investment can open up other ways to maximize your returns there, too.)

    Teaming up with a partner

    Collabs are still having their moment, but they can be more than just a trendy way to build an audience. I get genuinely excited when I see solopreneurs I follow come together because I’ve seen how great collaborations can effectively fill business gaps. Plus, good partnerships can also uncover new opportunities, boost revenue and even fuel innovation. Sure, there can be risks to collaborations too, but as long as you stay true to your goals and your brand, you stand to benefit.

    Related: Solopreneurs are Changing the Face of the Economy

    Finding a mentor

    Much like peers, mentors offer business advice based on their lived experience, but they also bring the wisdom of seniority. But if the intimidation factor of approaching a mentor is holding you back, you can always start more informally. Many solopreneurs give back to their communities by sharing their learnings through courses or live events. Start by following people you admire and see what it can lead to.

    However you choose to expand your definition of solopreneurship, keep in mind that inviting others into your journey doesn’t negate your success; at the end of the day, the buck still stops with you. By piecing together a new narrative about the realities of solopreneurship, we can start to normalize the idea that creators and entrepreneurs don’t need to walk this road alone. And sometimes, just knowing that help – and a shoulder to lean on – is out there can go a long way toward boosting resilience, capacity, and the determination to keep going.

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    Christie Horsman

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  • 4 Common Blunders Companies Make When Creating Culture | Entrepreneur

    4 Common Blunders Companies Make When Creating Culture | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s no secret that every successful company needs a solid, identifiable corporate culture. Statistics show that 88% of job seekers believe a healthy work culture is essential for success, and the younger generations now prioritize “culture fit” above all else when job hunting. Unsurprisingly, a strong corporate culture that keeps employees engaged directly translates to as much as a 202% performance increase.

    With such compelling data, it’s shocking how often startups fail in this regard. As a successful CEO and cofounder, here are four common mistakes I’ve seen and how to avoid them in your startup journey.

    Related: Lack of Trust — What Does It Do to Your Company?

    1. Not knowing when to transition from the “tribe” stage and into more structured processes

    My company, Flowwow, is currently in that awkward “preteen” phase where we’re no longer a startup “tribe” but not yet a large corporation. This creates tension because those who have been around since the beginning often romanticize “the good old days” and resist implementing more structured processes.

    Because this is often a challenging phase for brands, many cling to the “startup family” model of everyone doing everything for too long. This can hurt morale, motivation and long-term growth and heighten the risk of a brand stalling out at a critical stage. We tried to avoid this mistake by ensuring our overall mission was tightly aligned with the values shared by every person we hire.

    We ensure everyone feels supported and heard, confirming that everyone understands our flexible and adaptable processes. We also help place each person into a team that best suits their skills and personality so they feel useful, fulfilled and engaged. Remember that the data shows 85% of employees feel disengaged, yet 69% say all they need to feel happier and engaged is acknowledgment and recognition.

    2. Not allowing your culture to evolve with the brand

    Some camps believe brands should stay consistent over time, but we think that evolution according to the market and trends is far better for overall longevity.

    Remember: as your brand grows and matures, so should your corporate culture. As a founder, it’s your job to shift internal and external perceptions about your brand during these transitional times. Your core values should remain the same, but how you act on them makes the difference.

    For instance, when Flowwow shifted from a flower service to a gifting marketplace model, the founder’s job was to not only reframe public messaging but ensure we were highlighting the things most important to us as a brand: openness, transparency and quality.

    By making this our focus, we didn’t need to do anything specific to steer our culture; it naturally evolved from authentically shared values. These principles have remained steady over time, but our “value-driven” actions are more tangible: We provide resources like language learning, mental health assistance and medical insurance to show the team that our values are more than words.

    Related: How to Lead With Transparency In Times of Uncertainty

    3. Neglecting to establish top-down communication

    I’ve heard of many startups that have failed or floundered because the founding team felt they needed to hide hardships or only tell employees what they felt was “necessary.” Often, this is done with good intentions. They mistakenly think it will demotivate or alarm employees to hear about a crisis or difficult road ahead. Don’t fall into this trap! You hired these people because you trust and believe in them, so prove it by being transparent and allowing them to support you and each other.

    When management offers open communication lines, employees feel empowered to take responsibility, bring fresh ideas and make decisions in the brand’s best interests. HBR notes that good communication from senior leadership is a top driver for employee engagement.

    4. Forgetting that the founder is the heart and soul of the brand

    Founders often fall into the trap of playing Superman (or woman): They feel like they need to be involved in everything all the time, usually at the expense of their well-being. Initially, this might be necessary, but a founder’s top goal should be to find and cultivate a core team that can be trusted to take over most of the daily tasks.

    A strong, compelling corporate culture needs an axis on which to turn, and that axis should be the founder. Instill your values into every person you hire, and then let all the things that made you want to hire them shine through. Use your influence and passion to improve, amplify and direct the company. By acting as your team’s safe, trusted harbor, you allow your corporate culture to blossom organically, resonating with both employees and customers.

    It’s vital to avoid letting yourself burn out. You are an example for everyone, so it’s your job to pay attention to your mental well-being and continually work on understanding and managing your emotional impulses. Acknowledge your limits, act within them and let your team see that you’re human. This sets the foundation for a healthy, honest atmosphere.

    Related: How Being Transparent Helps Scale Your Company

    The future of work is now, so don’t let your culture lag behind

    Corporate culture is essential to present and future organizational health and longevity. Watch factors like absenteeism, participation and even body language to get a complete picture of whether your brand’s atmosphere needs work. Remember, a healthy organization balances stability and growth, and lasting improvements must always be top-down.

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    Slava Bogdan

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  • This Working Mom Overcame Decades of Employment Bias to Become The CEO of Her Own 6K-Figure Company. Here’s How She Overcame Adversity. | Entrepreneur

    This Working Mom Overcame Decades of Employment Bias to Become The CEO of Her Own 6K-Figure Company. Here’s How She Overcame Adversity. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s no secret that working mothers still face discrimination in the workplace. With few legal protections in place, many moms are pushed out of workplaces (laid off or fired) and subjected to stereotypes about their competency. I’ve faced discrimination as a working mother several times since 1997. I’ve been passed over for a promotion and stepped down from a leadership role because of the discrimination I faced.

    From the moment I saw that little blue plus sign, I’ve been fighting for equality at work and home. A lack of paid leave, exorbitant childcare costs and discrimination made my early career difficult at best, and for the majority of Americans, makes it nearly impossible to have a family.

    I was just 24 years old when I became a mom for the first time. I was new at many things then: adulthood, marriage, and home ownership. I had no idea that the statistics were so stacked against me. Gender disparity didn’t cross my mind—that’s just the way it was. Little did I know that I was stepping into an entirely new world—one that would continually discount me.

    As it turns out, new mothers who take fewer than eight weeks of paid maternity leave are at higher risk for depression and experience poorer overall health. My husband and I were a young couple starting out, so while I desperately wanted more time with my newborn, my mind reasoned that the six weeks of paid maternity leave my employer offered me would be enough — we couldn’t afford for me to take additional time away from work without pay. We weren’t alone. Two-thirds of workers don’t take needed leave because they cannot afford it. They’re also unable to afford daycare. For infants, the average cost of center-based childcare is more than in-state public college tuition in 34 states.

    On my first day back from maternity leave, I learned that the young man hired a few months prior had been promoted over me. When I asked my boss why I’d been overlooked for the promotion, she told me she disagreed with it, but it was out of her hands. According to a Pew Research Center analysis, 16% of working parents have been passed over for promotion because they have children, and mothers are more likely than fathers to report this experience.

    My company’s office hours were 8:30 am to 5:30 pm. I had to walk out the door at exactly 5:30 pm every day to pick up my son by 6 pm or pay $1 for every minute I was late. Still, I was pulled aside and talked to about always leaving on time when other employees were staying late, as though it spoke to a lack of work ethic or drive to succeed on my part. I wasn’t alone. Mothers are 40% more likely than fathers to report that childcare issues harmed their careers.

    There are so many lessons I learned during those early years. Looking back now, it’s easy to see where the bias was and what changes were needed to create equality. My only recourse was to take matters into my own hands. Here are six tips for recognizing and navigating adversity to build a thriving career.

    Related: Why Women’s Entrepreneurship is Booming Right Now

    Tip 1: Change starts at home

    If you carried a baby for nine months and gave birth, you’ve done 100% of the parenting work so far; don’t let your partner assume you’ll continue to do so.

    Like most infants, ours didn’t sleep through the night for many months. So, I went to work exhausted every day. One day, a few weeks after returning from maternity leave, I fell asleep at my desk. The owner of the company walked by, saw me and sent me home. When I told my husband about it and asked him to help, he responded, “I can’t. I have a job.” Not only was I devalued at work, but I was also devalued at home by the one person who mattered most.

    When a couple is deciding who will take more time away after the birth of a baby, it makes financial sense for the one who makes less money to take more time away. That means maternity leave typically falls to mothers because women make less than men. If companies paid men and women equally, this conversation would be eliminated as part of the decision, and it would make more financial sense for each partner to take equal time off work. That would, in turn, change the perception at home.

    Tip 2: Take matters into your own hands

    When my son was about eight months old, my husband and I decided to move closer to family. When we found our new home, I began searching for childcare. Daycare centers were insurmountably expensive, so I interviewed several moms who provided daycare in their homes. I walked away from every meeting deflated.

    I couldn’t find trusted care for my son, and I continued to be overlooked and undervalued at work. That’s when I decided to join the 43% of women who leave the workforce after having children. I quit my job and started my own in-home daycare. I used my marketing background to get the word out, and within two weeks, I was caring for three toddlers and an infant full-time with an expectant couple on a waitlist. I spent the next six years taking care of little ones and raising my own.

    Tip 3: Think long-term, act short-term

    By 2005, I’d earned my writing degree and was freelancing as a copywriter. Two years later, in the midst of a recession, my husband and I separated. With two school-aged boys and a two-year-old daughter at home, I was forced to go back to work full-time.

    Finding work in a recession is difficult enough, but having a nine-year lapse on my resume didn’t help. It was virtually impossible to land an interview and, much less be offered a job that paid enough to afford childcare. Unsurprisingly, women who took just one year off from work earn 39% less than women who did not. Desperate for a full-time job with health benefits, I took an account manager position. The salary wasn’t enough to cover daycare costs, so I held onto my freelance clients. I’d work all day, and then after tucking my kids in at night, I’d tuck into my freelance writing projects. It wasn’t something I wanted to do forever, but short-term, it paid the bills, and long-term, it would set me up to start my own business.

    Tip 4: Look for opportunities

    In 2011, the recession hit the marketing industry, and companies dropped their ad agencies in favor of working with freelancers to ease budgets. My number of freelance clients more than doubled, while at the same time, our agency’s roster of clients was cut in half. That allowed me to negotiate to work on my freelance projects during business hours in exchange for a percentage of my freelance revenue. I was able to take on more clients without giving up all my evening hours so that I could still be a present parent to my kids and get enough sleep at night to face the day ahead.

    By 2013, my freelance business was thriving, and on August 1, 2013, I quit my job to work for myself full-time. That decision changed my life and our home. It’s not surprising that a whopping 75% of self-employed women love their job. Working for myself allowed me to put my priorities in order and plan my working hours around my family, not the other way around. I worked late into the night but also took hours off for after-school trips to the park, family dinners and homework time.

    Tip 5: Be open

    In 2015, I was offered the role of content marketing director for a freelance client. While I loved the flexibility of working for myself, it was an incredible opportunity to build and manage a content writing department from the ground up. I accepted the role and learned all I could. A year later, traveling and late nights became too much, and I needed to be more available to my kids. I gave my notice and negotiated a 12-month freelance writing contract in exchange for hiring my replacement. Within a few months, I launched a marketing agency.

    Related: What Do We Tell Young Women Considering Entrepreneurship? Here are 6 Key Messages to Share

    Tip 6: Remember that actions speak louder than words

    In 2021, my previous employer offered me another role. This time, it was a C-suite position and a stake in the business for bringing my agency into his company as the social media arm of the business. I said yes, knowing that, at the very least, I’d learn something, and at best, I’d grow the agency much quicker than I could on my own. While I enjoyed the stable income and benefits, I was drowning in work, and no matter how hard I tried, I couldn’t change the culture. I began looking for support through networking groups and was invited to join CHIEF, a powerful network of women executives. This was an incredible opportunity to learn from other female executives, network with peers and get in front of potential clients; all things my male peers had in spades. I laid out the benefits and requested that my company sponsor the membership. They declined.

    Deciding it was well worth the investment, I paid the fee myself. When I published a LinkedIn post announcing my membership, the CEO expressed disappointment that I hadn’t mentioned his company in my post. That’s when I decided I could no longer work with or for companies that refused to invest equally in male and female executives. In June 2022, I gave my notice and pulled my agency out of the merger.

    On Mother’s Day, we celebrate moms — and companies do, too. It’s no secret that brands are increasingly jumping on the bandwagon of social causes, but consumers aren’t fooled by the many that pay it lip service. They want to see real change.

    Want to celebrate moms? Offer paid maternity, paternity and family leave so that working parents can take the time they need to give their children and their families a healthy start. Normalize paternity leave so that fathers can be equally responsible for and able to bond with their children.

    More than 120 countries, including most industrialized nations, provide paid maternity leave and health benefits by law, according to an International Labour Office (ILO) report. The United States’ failure to do so leaves 80% of the workforce without any paid time off after the birth of a child. Nearly half are not even guaranteed unpaid, job-protected leave through the Family and Medical Leave Act.

    The answer isn’t to leave the workforce. The answer is for the government to join nearly every other nation in offering paid family leave. Until then, taking matters into our own hands is the only answer.

    Maya Angelou said, “When someone shows you who they are, believe them.” The same is true for companies. Work-life balance issues cause conflict for an astonishing 72% of women. Don’t share your time and talents with a company that doesn’t support you.

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    Beth Newton

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  • How to Get Beat Out Your Competition by Making a Lasting Impression | Entrepreneur

    How to Get Beat Out Your Competition by Making a Lasting Impression | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    I’m in the public relations space, and as of last count, there are more than 48,000 other PR firms in the United States. A large fraction of these compete with my agency in the five hub cities where I operate. Yet mine consistently ranks among the highest in those cities — Nashville, for example.

    Is it because I know my industry better than my competitors? Because I land more placements for my clients? Because my team is more talented or my network of connections more expansive? As much as I’d like to think that I’m running with the front of the pack based solely on the quality of my services and the effectiveness of my methodologies, it’s far more likely that I earn rave reviews and generate referrals from my clients due to two words: personalized attention.

    More specifically, my team and I go well above and beyond to create an exceptional customer experience at my firm because I’ve learned over the years of running my own business that it’s the client’s impression of you that matters most — that’s what informs all other aspects of customer relations, drives all other client decisions and determines if they’ll stay with you or not (even more so than short-term results).

    Even in the digital age we all inhabit, with so many automated tasks and productivity tools that populate our workplaces, personalizing the professional is a surefire means to client retention and satisfaction. Here are five practices I regularly follow to make the most positive impression on my clients I possibly can.

    1. Get a copy of your client’s org chart

    When you understand the structure of your client’s business, you understand who does what, who reports to whom, and, in turn, you know who to go to for what. Not only is this an immense time-saver — as in not filling people’s inboxes unnecessarily with work that doesn’t pertain to them — but your clients will also appreciate that you did your homework on their staffing.

    It’s so much more impressive to send a note that says, “Would your team like to see this before we send it up to Jeremy?” or “I believe Bettina has the final sign-off here” than “Are you the right person to contact about this?” And note the use of actual names here — learning the first names of everyone you’ll be working with moves you into first place faster than you’d think!

    Related: 4 Ways to Make the Best First Impression With Your Customers

    2. Use proper grammar and punctuation

    Make sure that all your communications to your client — and, far more importantly, all the communications you prepare on their behalf — are written properly. Yes, it takes some extra work to eliminate errors. Still, it’s absolutely worth the effort when you consider how much just one typo can mar an entire project (ever seen “pubic” instead of “public”?) and how poorly faulty grammar can reflect on quality output, education level and attracting the intended audience.

    Though it may be true that language standards are slipping in America, that doesn’t mean nobody’s noticing the shoddy quality of copy. Some people still notice and care. If your client is one of them, you’ll earn bonus points by knowing the difference between “compliment” and “complement” by not allowing both “San Antonio Riverwalk” and “San Antonio River Walk” in the same publication. Use your grammar checker. Always do a spell-check. Re-read everything you produce. And if you don’t have a language maven on staff to serve as your in-house proofreader, hire an affordable freelancer who can provide quick turnaround times.

    3. Choose video over audio

    Whenever possible, schedule video calls and videoconference meetings over phone calls and phone meetings. The day and age of in-person meetings is quickly becoming obsolete. Still, there will never be a replacement for face-to-face interaction, eye contact, observing facial expressions and showing your client with every head nod and eyebrow raise that you’re following what they’re saying and closely attending to your conversation.

    During the pandemic, cultivating one-on-one relationships over Zoom and Teams became the new norm, and most people are entirely fine leaving it that way! Interacting over a screen instead of a conference table is just more convenient, time-effective and environmentally friendly. Nevertheless, we can’t afford to lose the “one-on-one interaction” part of business relationships. Remember the old Bell advertising slogan? Well, video is the modern-day equivalent of “the next best thing to being there,” so leverage your camera as often as possible to “see” your clients, not just talk to them.

    4. Mark your calendar!

    Notate birthdays, business anniversaries, baby due dates. Keep a record of your client’s big meetings and conference attendance. On those days, send a person-to-person text or email. And the more specific, the better, such as “Hope your coffee product presentation in Jersey went well and the traffic wasn’t too bad on the Parkway!” Or “Congrats on baby Elliot. That was my grandfather’s name, and I hope it serves your brand-new son as well as it did him.”

    By incorporating the personal into the professional, which is a pillar of my own approach at my company, clients value your role more because you’ve actively endeavored to become part of their lives, not just an appendage of their business. In other words, when you add personal touches to your communications and conversations, your clients can’t help but think of you on a more human level rather than just a professional contact with whom they can easily cut ties.

    Related: 6 Strategies for Making a Good First Impression During Business Meetings

    5. Observe the line between personal and professional, but use both — often

    On a related but separate note: As much as I’m saying to weave personal connections into your daily dealings with your clients, you never, ever want to go too far. You can use humor, but not off-color humor. You can show vulnerability, but you don’t want to appear weak or indecisive. You can ask questions and admit what you don’t know, but be strategic (not lazy) about trying to resolve issues yourself before coming to your clients with them. And be yourself, absolutely always be genuinely yourself, but don’t expose so much that you cross the line into overintimacy or inappropriate divulgence.

    By speckling your client interactions with individual touches as you simultaneously maintain proper decorum, you will put a personal face on your business name. And that name will leave more of a mark on your customers precisely because of your adept balancing act between the personal and the professional.

    Part of making a meaningful impression on your clients is consciously putting your best face forward every day, in every way. Don’t let them see a messy office behind you on Zoom, but let them vent about their kid’s tonsillitis for 10 minutes if needed. Don’t bad-mouth other clients or finger-point when things go wrong, but get to know them well enough that you’d love to grab a drink next time you’re in town.

    Take every opportunity you can to show your clients — and then remind them often — that “business as usual” to you means being prepared (as in learning an org chart), producing quality output (that’s been proofed), scheduling face-to-face encounters, observing special occasions in their lives and sharing your authentic self, who happens to be a multifaceted, wonderful human being with flaws who’s also an utter professional and a real pro at what you do!

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    Emily Reynolds Bergh

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  • My Startup Couldn’t Raise VC Funding, So We Became Profitable. Here’s How We Did It — And How You Can Too. | Entrepreneur

    My Startup Couldn’t Raise VC Funding, So We Became Profitable. Here’s How We Did It — And How You Can Too. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s no secret that the startup world is hardcore. Half of startups fail before year five, and only one in ten survive in the long run. Recent economic trends aren’t too encouraging either. Last year saw a 38% drop in global startup investment and a 30% decrease in the U.S., specifically. Moreover, of the available funds, a significant amount was gobbled up by trendy artificial intelligence startups. So, if you’re not in AI, the picture may appear even more grim.

    Today’s founders have to come to terms with the fact that the VC funding round they’ve been working toward might not materialize. Though this has always been the case, the bar is now so high that a plan B is essential — how will your business survive if it doesn’t receive funding?

    Alternative startup funding is one increasingly popular option, e.g., taking out a loan with a traditional credit institution. But this isn’t for everyone and definitely not for pre-revenue startups because the bank needs to see how you will repay the loan. Plus, collateral — or the lack thereof — may disqualify any software or other startups up front, as, unlike VCs, banks don’t operate on faith.

    So, if nobody’s giving you funds and you don’t have the runway to hold out until the ecosystem picks up again, there’s only one way your startup can grow — become profitable.

    Related: The Entrepreneur’s Guide to Building a Successful Business

    Why profitability needs to be top-of-mind even if you’re doing well

    I have been actively fundraising for my on-demand Consumer Packaged Goods (CPG) startup since its inception three years ago. First, we raised $1.9 million in pre-seed capital for building out our business core, which we did — securing the necessary partnerships, putting together a base of operations, developing our software and growing the team.

    With a solid foundation and proven business model, it was time to scale, and we sought VC partners to help us ramp up our operations. What I expected to be three to six months of active fundraising turned into a year that bled into the next and, to this day, is ongoing.

    Despite demonstrably positive business results and a slew of warm contacts and cold pitches, investor response was tepid. Interest came with conditions and homework — “Let’s reconnect when you achieve these figures.” But when we did, the goalposts shifted. Fundraising started to feel like a goose chase, and the increasingly turbulent economic environment didn’t do us any favors either.

    Right now, competition is intense and startups that investors would swarm just a few years ago might not get a second look today. With that in mind, founders should avoid placing all their eggs in one basket and hedge their bets by approaching growth in a profit-oriented direction.

    Because if you don’t, you have two equally unappealing options: going bust or getting chained to an opportunist investor who will pay pennies on the dollar.

    Three things a founder must do to be profitable

    Four months ago, my startup reached profitability for the first time. It came after more than a year of active work and planning, and here’s what it took.

    1. Change your mindset

    The main job of a startup founder is to raise funds — this is something that gets drilled in at incubators, accelerators and other mentorship programs. Accordingly, a founder’s focus often lies in beautifying their startup for investors, i.e. finding ways to boost KPIs even if it’s unsustainable, focusing on design over functionality, and spending big in marketing to demonstrate growth.

    When pursuing profitability, this must be unlearned. Growth cannot be cosmetic, and for many, that demands a change in mindset. Goals and priorities must be redefined. Forget maximizing sign-ups; focus on paying customers; forget vanity metrics; focus on conversions; forget your personal wants; focus on business needs.

    Note that this doesn’t mean you should stop fundraising, but you probably will have to revise your pitch deck.

    Related: How to Fund Your Business With Venture Capital

    2. Optimize your business

    A changed mindset is not enough—you need to get in the trenches and optimize, optimize, optimize. For a regular business, your runway is limited, and if you don’t bring your balance sheet into the green, then it’s game over.

    Here’s one specific area to pay attention to: startups often hyperfocus on client acquisition and neglect user retention. They’ll pay through their nose to get a signup but invest little in ensuring clients stick around, leading to a profitability-killer combo of high CPA (cost per acquisition) and a high churn rate.

    As my co-founder always tells our clients: “All you need is 100 loyal customers for a successful full-time business.” We adopted the same mentality, going for quality over quantity.

    Tackling this was a cornerstone of our journey to profitability. We went to great lengths to understand specifically when and where our clients churn and put all our effort into answering their pain points to ensure people keep using our services. This way, you’ll get more bang for every buck you’ve invested in acquisition.

    3. Expand your offering

    Unless you’ve been striving for profitability since day one, chances are it’s going to take you a very long time to reach it. In fact, it may be impossible to reorient your business quickly enough. For this reason, it’s wise to look into additional revenue streams that can support your business while it turns over a new leaf. This can be anything from additional services to new products. For example, my CPG startup allows anyone to start a side hustle or full-blown business selling on-demand supplements, cosmetics, and packaged foods. However, to start selling, our customers need to set up an online store where they can direct their customers.

    While our customers found our platform easy to use, they struggled to set up a store – so we began offering assistance with this as a separate service. Essentially, we leveraged our existing expertise to offer ecommerce development services, which was critical in extending our runway.

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    Martins Lasmanis

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

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

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    Marc Randolph, the co-founder of Netflix, joins us for another episode of Ask Marc, a live Q&A series about starting and growing your business. The event will begin on Thursday, May 9th at 2:00 PM ET, streaming on our YouTube, LinkedIn, Facebook and X (formerly known as Twitter) channels.

    Where can I watch Ask Marc?

    Watch and stream: YouTube, LinkedIn, Facebook & X (formerly known as Twitter)

    You can watch on your phone, tablet or computer. Ask Marc will be shown in its entirety on YouTube, LinkedIn, Facebook and X (formerly known as Twitter).

    What time does Ask Marc start?

    Date: May 9th
    Time: 2:00 PM ET

    The episode kicks off at 2:00pm 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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  • Top Career Motivations of Gen Z and Reasons They Choose an Employer | Entrepreneur

    Top Career Motivations of Gen Z and Reasons They Choose an Employer | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the dance of generations at work, Gen Z holds the floor now. They will be the fastest-growing generation in the workforce over the next decade. To attract this emerging talent, employers should consider the top items Gen Z is looking for at work.

    A recent study of 11,495 of the highest-achieving high-school students, college students and recent college graduates in the United States reveals the preferences, attitudes and goals of the next generation of workers.

    Top three career motivations for Gen Z

    1. Entrepreneurial culture

    Gen Z is incredibly entrepreneurial, 60% express a desire to start their own businesses. Leaders must create an entrepreneurial culture that nurtures innovation, creativity and risk-taking.

    Encourage Gen Z employees to explore and develop their ideas, providing opportunities for them to spearhead projects and initiatives. Foster an environment that embraces experimentation and learning from failure. By fostering an entrepreneurial culture, leaders can tap into the entrepreneurial spirit of Gen Z, harnessing their innovative ideas and driving organizational growth.

    Related: The 5 Things Gen Z Is Looking for in a Job and Career

    2. Personalization and individuality

    Gen Z craves personalization and desires to bring their authentic selves to work. 92% of Gen Z prefer to have the option of personalizing their workspace. Leaders should embrace individuality and create a flexible environment that allows for personal expression and customization.

    Provide Gen Z employees with the freedom to design how, where, when and what they work on. Encourage diverse perspectives and opinions, valuing the unique contributions that each individual brings to the table. By embracing personalization and individuality, leaders can foster a sense of ownership and empowerment among Gen Z employees.

    3. Social impact and purpose

    Gen Z is deeply passionate about making a positive impact on society. 76% of Gen Z prioritize working for organizations that align with their values. Leaders must incorporate social impact and purpose into their organizational mission and values. Clearly communicate the organization’s commitment to social responsibility and highlight initiatives that contribute to the greater good.

    Provide opportunities for Gen Z employees to engage in volunteer work, community service, or sustainability projects. By integrating social impact into the workplace, leaders can attract and retain Gen Z talent who are driven by a desire to create a meaningful difference.

    Understanding and adapting to Gen Z’s expectations is crucial for leaders to build successful organizations in the future. By cultivating an entrepreneurial culture that embraces innovation, encourages personalization and individuality, and incorporates social impact and purpose, leaders can expect to attract, engage and retain Gen Z.

    Understanding Gen Z’s career drivers is part of the formula for effectively attracting and engaging new talent. The other part is understanding what factors they are considering when working for an employer.

    According to another recent study of 14,483 Gen Z respondents across 44 countries, these are the top reasons Gen Z chooses an employer.

    Top four reasons Gen Z chooses to work at a company

    1. Good work-life Balance

    When it comes to choosing an employer, work-life balance is a paramount consideration for Gen Z. This generation grew up in a hyperconnected world, witnessing the potential downsides of an “always-on” culture. They prioritize their well-being and seek employers who understand the importance of maintaining a healthy work-life balance. Gen Z craves flexibility, autonomy and the ability to pursue their passions outside of work.

    To attract Gen Z talent, companies must prioritize work-life balance initiatives that foster a harmonious integration of personal and professional lives.

    2. Learning and development opportunities

    Gen Z is a generation that values continuous growth, seeking opportunities to acquire new skills, expand their knowledge, and advance their careers. They prioritize employers who invest in their professional development and provide a clear path for advancement.

    To attract and retain Gen Z talent, companies must prioritize learning and development initiatives that align with their aspirations and foster a culture of growth.

    3. High salary or financial benefits

    Gen Z cites the cost of living as their top societal concern, above unemployment and climate change. So, not surprisingly, pay is top of mind when choosing an employer. As they enter the workforce, Gen Z faces economic pressures and desires financial stability. They seek employers who offer competitive compensation packages and financial incentives.

    Companies must address Gen Z’s financial aspirations and provide avenues for financial growth if they want to secure next-generation talent.

    Related: Everything You Need to Know About Hiring and Retaining Gen Z Talent

    4. Positive workplace culture

    Gen Z seeks an environment that is inclusive, collaborative, and supportive, where they can thrive both personally and professionally. Gen Z values a workplace culture that fosters strong relationships, encourages open communication, and promotes a sense of belonging.

    By prioritizing and fostering a culture of recognition and appreciation, leaders can create an environment that aligns with Gen Z’s aspirations and values.

    Gen Z is here, ready to make their mark on the world of work, and companies must adapt to effectively attract and engage this generation. By understanding Gen Z’s career motivations and aligning with the reasons they select an employer, companies can create workplaces that inspire and retain Gen Z talent.

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    Ryan Jenkins

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  • 6 Guiding Principles Behind Every Successful Company | Entrepreneur

    6 Guiding Principles Behind Every Successful Company | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    A search for “formula for company success” on Amazon yields almost a thousand results, primarily consisting of self-help books. While I don’t claim that I have discovered the elusive formula, I believe certain characteristics can aid in achieving success, which I identified after analyzing the top companies currently active in the market.

    I’m the founder of a deep tech company that is trying to push the limits of what is possible in the field of computers. For me, following these principles is crucial to achieving this ambitious goal. Yet, I’m sure these principles are not exclusive to any one field or industry and can be applied to any business willing to prioritize and use them as tools for development.

    Related: 5 Key Leadership Principles for Driving Growth

    Elegance

    Elegance goes beyond mere aesthetics; it is the embodiment of beauty in every facet of a company. What does beauty consist of? Honestly, everything. If the founder wants to ensure the elegance of their product, they should pay attention to the structure that should be observed in every process of interaction with their company. Those may range from the way your employees present themselves at networking events or in-store to the speed with which your support team assists customers. Not only will this provide your brand with consistency, but it will also become more appealing because, after all, humans are aesthetic creatures.

    When you think of elegant products or packaging, I’m sure one of the brand names that comes to mind is Apple. From the logo to the in-store decor, elegance is evident in every aspect of the brand’s efforts. In your business, the aspects of elegance are definitely different from theirs, but their role is the same.

    Focus on goals and values

    Focusing on the result is especially important for tech companies, particularly those developing new tech, as it allows them to deliver on their promises to both themselves and their customers. Most importantly, it allows them to focus on only those aspects that are truly important and relevant to their ultimate goal. To achieve this, detailed planning is required, where the most optimal path is selected from thousands of possible options. Moreover, prior to any action taken, it should involve thousands of hours of research, hypothesis testing, and more, but it all must contribute to the company’s goals.

    According to Gartner’s 2019 Product Manager Survey, only 55% of new products are launched on time, and the other 45% are delayed by at least a month. This underscores the importance of the founders not only setting realistic goals but also communicating them clearly both to your customers and employees. Additionally, the company should not stray from its original purpose and should always keep its eye on the end goal. In order to stay on track, some things should be prioritized, such as good time management, both in your life and in your business, or for example, preparing contingency plans in advance. You can use these tools to ensure proactive and adaptive responses to unforeseen obstacles to ensure a smooth, or at least stable, ride to success.

    Initiating and igniting

    While it is important to keep up with the market and its latest developments, it is crucial to use this information to create new trends instead of simply following the existing ones. To follow this approach, business owners should create and keep in mind a clear picture of how their businesses differentiate themselves from their competitors, allowing them to have a shot at becoming industry leaders. The problem with utilizing trends as a foundation for a company is that the trend cycle inevitably leads to obsolescence.

    Netflix is a prime example of this. It originated as a DVD-by-mail service in 1998, just one year after DVD players were introduced in the U.S. before they became an essential part of every household. The company not only competed against Blockbuster, the largest rental chain at the time, but also revolutionized the rental process by introducing a new way for consumers to interact with their services, introducing a subscription model in 1999. Netflix entered the year 2000 with only 300,000 subscribers, now this number is up to 247.2 million. Why? Because they were able to come up with an idea for a truly unique service.

    Pursuit of excellence

    One of the greatest enemies of any entrepreneur’s long-term success is these three words: “That will do.” This phrase not only affects you as an entrepreneur, undermining your abilities and limiting your potential success, but it also affects every single facet of your business. The pursuit of excellence doesn’t entail that you shouldn’t attempt to release anything until everything is perfect, but it does suggest that whatever you can do should be done to the best quality possible.

    The strive for perfection, or rather the lack of it, is the reason the above-mentioned DVD rental chain now has only one store left in the U.S. When the market began expanding and Netflix entered the game, Blockbuster had the opportunity to acquire it, but passed on it arguing that Netflix was a too-niche business. Blockbuster’s opposition to online streaming and the fact that it was stagnant and content with the unchanged while an entirely new industry was evolving prevented it from innovating.

    Related: 5 Key Leadership Principles for Driving Growth

    Embracing challenges

    Given that technology has advanced more in the past two centuries than at any other time in human history, the possibilities for further development and creation are endless. It is not uncommon to encounter a myriad of problems when creating something new, especially in the beginning. However, a business owner shouldn’t avoid working on a unique product or service simply because of the issues it may present and to search for innovative solutions.

    As obvious as it may seem, the easiest way to approach a challenge is through hypothesis testing. Whenever you are faced with seemingly impossible problems, it is of utmost importance not to be intimidated by them, as this can lead to stagnation or the inability to deliver the promised product or service. By using hypothesis testing, one can generate and test dozens of possible solutions to avoid stagnation and initiate progress. Not only does this expand the range of feasible solutions, but it also allows the company to create a truly great product or service because you will be able to accomplish something no one has ever done.

    Positive impact

    In the 21st century, it is essential to prioritize more than just profit, especially at a time when we are experiencing such a rapid escalation of climate change and other worrying events. We are at the pinnacle of technological development, and it would be irresponsible not to use it to improve the world around us or at least try to preserve it for future generations.

    As a founder of a tech company, I often pay attention to this detail and believe that a positive impact is essential when it comes to running such a company and that those who have a genuine urge to make the world a better and safer place have a real chance of creating a thriving business. Of course, this principle is not exclusive to one industry only; for example, food delivery and ride-hailing services have a better chance of succeeding if they are inclusive and convenient to all. Remember, if you have an opportunity to impact the world with your business, there are hundreds if not thousands of options available, especially today.

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    Roman Axelrod

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  • How to Capitalize On This Thriving Talent Pool to Drive Your Company’s Growth | Entrepreneur

    How to Capitalize On This Thriving Talent Pool to Drive Your Company’s Growth | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As business operations shift, executives and entrepreneurs are increasingly turning to an on-demand workforce that is simultaneously empowered by technology and drawn to purpose-driven projects.

    Consider Upwork, whose 2020 Future of Workforce Pulse Report revealed that nearly 80% of hiring managers engaging freelancers feel confident about doing so. These hires provide coveted expertise — on a project-to-project basis — that entrepreneurs need to scale their operations without incurring long-term overhead costs.

    This new market paradigm also promotes dynamism, with 79% of businesses agreeing that freelance talent enables greater innovativeness. Perhaps most telling, 84% of hiring managers utilizing it feel more assured about adapting to future disruption, compared to just 69% of those relying solely on full-time staff.

    By capitalizing on freelance marketplaces, entrepreneurs can amplify employer branding, augment capabilities and future-proof organizations, even amid turbulence. As nearly 60% of hiring managers plan to increase engagement with freelancers over the next two years, the time is now for executives to realize their inherent potential.

    Related: Navigating the Great Reshuffle: Why Your Employer Brand is Key in Recruiting Talent

    The job market continues to shift

    After a season of massive hiring, we’re back to seeing layoffs and downsizing. Companies are feeling the bloat—from unused office spaces with rising rent to oversized employee structures — and are shifting focus to hiring only the most essential positions. This leaves a critical talent gap needed for complex projects and specialized tasks. Highly skilled and specialized independents can fill this void.

    A few key benefits to engaging them:

    Access to niche experts: Platforms like Toptal and Guru provide access to elite professionals from leading Fortune 500 companies and innovative startups. Whether the need is for a machine learning specialist, growth strategist or financial modeler, entrepreneurs can now curate on-demand teams that boast specialized skillsets, enabling them to focus investment on projects with the highest strategic value.

    Enhanced agility: Leading corporations increasingly “rent” skills by tapping freelance experts for initiatives involving new technologies or while entering unfamiliar markets. With niche contributors available to plug knowledge gaps, owners can explore ideas that once seemed unrealistic due to internal constraints—unlocking inventiveness and first-mover advantage.

    • Stronger employment brand: Blending full-time employees with project-based freelancers signals a commitment to modernization and work-life balance. Offering both engaging work and flexibility will help draw exceptional candidates and help you compete with corporate giants for top-tier talent.

    Related: Can Retirees Thrive in the Gig Economy? Navigating a Changed Workforce

    Tips for capitalizing on gig talent

    Having explored the forces reshaping work, executives may wonder how to effectively leverage freelance platforms. After all, how can you know you’re getting your money’s worth if a hire isn’t physically present full-time?

    • Define projects clearly: Contract hires thrive when expectations and deadlines are established upfront. So, clearly, detail needs around deliverables, success metrics, required skills and projected time investments. Staying ahead when it comes to communication and expectations will help avoid headaches, including delays.

    • Build loyalty with talent: The best independent professionals have options regarding the projects they accept. Study their profiles to discern passions and incentives. Offer interesting work, flexibility and strong communication to motivate interest and improve results.

    • Manage collaboration: Provide steady context, feedback and guidance at each project stage, but also foster autonomy, even while directing efforts toward strategic goals. A dynamic balance of these qualities drives optimal outcomes.

    • Continue expanding your talent pool: Add proven freelancers to an internal database for repeat engagements, and notify talent about new initiatives for which their expertise would provide an edge. Uncovering additional ways, freelancers can enhance the business deepens the relationship.

    Related: Fill Your Talent Gap by Sourcing Candidates From the Veteran Community

    Top platforms for connecting with talent

    Now comes the hard part: finding contractors who bring fractional expertise sets. There are a growing number of platforms, of course, but I’ve found that the following stand out as leaders:

    Fiverr: Ideal for execs seeking design, digital marketing, writing, video and admin support. Known for affordability and ease of posting jobs. It taps a global talent pool, too.

    Upwork: A flexible platform that spans more than 150 skills. Used by everyone from small businesses to global enterprises. Strong at IT, development, design, finance and consulting.

    Toptal: Focuses exclusively on the top 3% of talent. Best for expert software developers, designers, project managers and finance experts. All contributors are extensively vetted.

    Contra: A growing independent platform that vets and connects both job candidates and hiring companies. Best of all, it doesn’t take a commission from projects.

    Related: 3 Strategies to Optimize Your Hiring Process and Find the Best Employees

    The numbers speak for themselves: businesses engaging freelance professionals report greater confidence and competitiveness, as well as the ability to withstand turbulence, yet legacy beliefs can still cause hesitancy among those keen to hire. Supported by such specialized collaborators, companies can explore new horizons unencumbered by a one-time narrow view of staffing models.

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    Tim Madden

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  • Side Hustles Are Driving New Businesses, Entrepreneurship: Report | Entrepreneur

    Side Hustles Are Driving New Businesses, Entrepreneurship: Report | Entrepreneur

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    The number of small businesses created by founders who already had a job nearly doubled from 2022 to last year.

    A new survey of 1,345 business owners from payroll company Gusto found that 44% of new businesses in the US started as side hustles in 2023, a jump from 27% in 2022.

    A quarter of respondents said they were working full-time day jobs while starting their companies, and 19% were working part-time jobs.

    “Uncertainty around which way the economy’s going made people a little skittish to give up something they’ve got in order to go for something that they want,” Gusto’s principal economist Liz Wilke explained to Bloomberg.

    Hybrid and remote work could give employees the space, and time with the lack of a commute, to explore their entrepreneurial potential, according to Wilke.

    Related: How to Get the Most Money Out of Your Side Hustle During Tax Season, From an Expert Who Raised $75.2 Million to Make Filing Easier

    Generative AI, like OpenAI’s ChatGPT, which came on the scene in November 2022, could have also helped business owners set up their ventures and develop products faster last year.

    The survey showed that more than 20% of new companies are using generative AI tools, and 76% of them are using them for marketing. A smaller number (41%) are using AI to better communicate with sales leads, and 26% are using it for customer service.

    “I don’t think [AI is] accounting for all of the jump,” Wilke told FOX Business. “But I wouldn’t be surprised if side hustlers weren’t really using some generative AI tools to cut a lot of the time commitment that’s required at the very start of a business when they’re really just trying to their brand out, get a reputation, build some revenue streams.”

    Related: This Insurance Agent Started a Side Hustle Inspired By Nostalgia for His Home State — Now It Earns Nearly $40,000 a Month

    The younger the worker, the more likely they were to start a business as a side hustle. The survey showed that nearly half (49%) of founders 25 to 34 years old were working for someone else while starting their own businesses. Over half (51%) of that age group was still working for that company at the time of the survey.

    In comparison, 42% of the 35-44 age group, 43% of the 45-54 age range, and 38% of the 55 or older age group said they had a job while starting their companies.

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    Sherin Shibu

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  • How to Navigate the Choppy Waters of Startup Valuation | Entrepreneur

    How to Navigate the Choppy Waters of Startup Valuation | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Entrepreneurs often have a deep, personal investment in their businesses, having dedicated years of hard work to bring their ideas to life. However, this emotional attachment can cloud their judgment and make it difficult to objectively assess their venture’s worth. They might find themselves attempting to translate personal effort, time and sacrifice into financial value, which can be problematic in the current environment.

    Though Series A investment activities have been stable as of late, there’s been an uptick in down rounds. According to PitchBook and J.P. Morgan, down rounds grew from 8% in 2022 to 20% in 2023. That means less money is coming in than normal, which means more venture-backed startups are on the hunt for capital.

    Complicating matters further is the valuation process itself. Many new businesses mistakenly set their value based on competitors, using similarity of goods or services to estimate worth. This type of comparison overlooks differentiators, such as operational, financial or execution risks. Failing to consider milestones that you’ve yet to achieve can lead to the misconception that all is equal.

    It’s important to remember that a competitor’s current valuation is the result of their unique journey, and yours will be something entirely different. The challenge is separating personal bias from objective assessment, as you’ll need a clear-eyed view of what your business offers to arrive at an accurate and realistic valuation.

    Related: What Every Founder Needs to Know About the Valuation Gap Between Entrepreneurs and Investors

    Preparing for a funding round

    Merely launching a great business doesn’t automatically mean it’s ripe for investment. The fundamental economic principle behind raising capital is that the injection of outside funds should fuel growth and increase the value of the business, creating the potential for investors to see a return on investment. It’s not like investors invest out of the kindness of their hearts (at least, most don’t). They want to see a clear pathway to profitability. The question then remains: How exactly do you prepare for those inevitable funding rounds? Here are some suggestions to get you started:

    1. Demonstrate the “why”

    Rarely, if ever, will it be enough to simply offer a piece of the business to potential investors. When angling for funding, it’s important to articulate the precise benefits of backing your venture. This is especially important in light of the 30% drop in startup funding in 2023, according to Reuters. You should be able to answer at least these questions: Why should anyone invest in your business? What’s the economic rationale for the investment? How will an investor make money?

    Whether it’s an ambitious tech innovation or a noble cause, go beyond the vision or mission of your company and present a plan that clearly shows how you intend to use the capital to achieve specific milestones. That means focusing on practical financial outcomes, which increases the chances that potential investors see a pathway to profitability. They also get a better understanding of the mechanisms in place for monitoring progress and achieving an exit. This clarity in the potential for financial return is what can make the difference in securing much-needed funding versus never getting a meeting.

    2. Understand the story behind the numbers

    In the context of venture capital and private equity, a compelling pitch will only get you so far. Rather, securing funding is more about what the concrete numbers reveal about the profitability of your venture. Profit margin, for one, offers insights into your company’s financial health and potential for growth. The same can be said for customer lifetime value, cost structure and revenue.

    For example, when my firm evaluates a business, understanding the cost of capital in the current market is crucial — even more so if we encounter a startup with an unclear equity distribution or no significant personal financial contribution. The issue arises when such a company claims that it’s worth a substantial amount, say $1 billion, without a defensible rationale. In other words, always provide tangible evidence that the hard work put into building the business translates into something of real value.

    Related: How to Get Funding: The Dos and Don’ts of Raising Capital From Investors

    3. Be mindful of investment terms

    One aspect that entrepreneurs often overlook is the concept of “toxic minority control,” which refers to the disproportionate influence or power held by minority shareholders. Should some disruptive investor buy up enough shares to secure a place on the board, it could potentially lead to adverse outcomes for the venture and other investors. You need to be mindful of this when raising capital, as the terms of investment can have far-reaching implications beyond the immediate influx of funds.

    Take Alphabet Inc., for example. Even though Larry Page and Sergey Brin own just 5.7% and 5.5% of the company, respectively, the two Google co-founders each own Class B shares, or “super-voting” shares, providing them with 10 times the control — or 51% of the votes, collectively. Meta and Walmart are other examples of companies with founders (or the heirs of founders) who still control the business even after the initial public offering.

    4. Never underestimate (or overestimate) market trends

    Though this should go without saying, where the market is headed can significantly influence your startup’s valuation. You need only look to last year for an example of that, with generative AI and AI-related startups raising nearly $50 billion in venture capital, per reporting from Crunchbase. However, don’t make the mistake of benchmarking yourself against corporations listed on the stock exchange.

    While market trends certainly make one startup more attractive than another, being in the same industry doesn’t equate to having the same value. Consider the nuances of your company’s stage, market position and operational history in relation to those operating in the same space. PitchBook and Y Combinator are both great resources, as they regularly publish statistics on the average valuations of amounts raised for different funding rounds. Understand where your company truly stands in terms of where the market is headed, as well as your market reach and status, to arrive at a realistic valuation of your venture.

    Related: 6 Parameters That Determine Company Valuation

    Entrepreneurs often begin with an idea and believe that its mere conception is equivalent to its potential realized. They look at the end goal, which can lead to unrealistic valuations. What truly matters, at least in the eyes of investors, is the ability to execute on that idea, which comes down to the numbers. Get clear on your standing, and then let that guide your discussions with potential investors.

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    Jordan Gillissie

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  • The Most Successful Entrepreneurs Know When to Say ‘No’ | Entrepreneur

    The Most Successful Entrepreneurs Know When to Say ‘No’ | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    “We’ve said no to Fortune 500 companies,” said Tim Bergler of Percipio Group Consulting during an expert panel session with 50 entrepreneurs in the room. Bergler was sharing the one piece of advice he would give new entrepreneurs in Portland, Oregon’s EO Accelerator program. “Don’t be afraid to say no if you can’t nail the work for your customer,” he continued. His answer rang a bell for me.

    Recognize the power of no

    As I thought about the most successful entrepreneurs I know, I realized they say no to most “opportunities.” When I reflected on my companies, I noted that our greatest successes occurred after we got really clear on what we would not do.

    The overarching issue is that most people say yes too much. When you start a business, you mostly think about what you will do — which is pretty much anything to grow the company. So, you say yes to everything and focus on getting more sales however you can. And while that might work in the short term while you are smaller, it doesn’t work long-term, and may even keep you smaller.

    That’s because as a growing company, resources are finite and can easily be wasted. Saying no is critical because it empowers you to focus your limited resources — people, time, money — on the core elements that drive success best.

    Related: Stop Overworking Yourself Because You Say ‘Yes’ Too Often — Here’s How to Harness the Power of a Simple ‘No’

    Devise your “Won’t Do” list

    While it feels counterintuitive, the most crucial question to ask is: “What won’t we do?” Gather your team and make a thorough “Won’t Do” list. Be thoughtful about it and commit to the result. Watch how this exercise focuses and propels your company.

    Businesses with a narrow focus on delivering only what they can nail for the customer — a product or service not readily found elsewhere — are the successful ones. Think about all the businesses you love. Are they doing everything for everybody, or just one thing exceptionally well?

    Take the grocery business. Standard grocery stores sell an astonishing range of food items in a super-competitive segment with low profit margins. Compare that with Costco or Trader Joe’s, which are high-profit and focused on what will or won’t sell. They only stock value-added items that customers can’t find elsewhere. The top fast-food businesses — McDonald’s, Starbucks, Dunkin’, Chick-fil-A and Taco Bell — all have strong “Won’t Do” lists.

    A recent headline referenced “the most important stock on planet Earth,” which rose from obscurity to a $2 trillion valuation because of its “Won’t Do” list. That company, Nvidia, creates technology that enables AI. Nothing else.

    Related: Focusing as an Entrepreneur Is All About Choosing Opportunities Wisely

    The impact of strategic omission

    I failed to create a “Won’t Do” list for my first company, a commodity business that wasn’t particularly successful.

    The second time around, my self-storage business was way more focused. We shopped our largest competitors — Public Storage, Extra Space Storage and CubeSmart. Then, we thought deeply about what we could provide that they did not, as a way to differentiate ourselves.

    We made a comprehensive list detailing what we did not like about those companies. That list informed our “Won’t Do” list, which includes:

    • Change our prices every day
    • Upsell or push extra products/services
    • Save hidden costs for move-in
    • Route calls through a call center
    • Act like our customer is bothering us
    • Mandate insurance
    • Be a national company
    • Put a customer in a space that isn’t right for them

    That list is simple but magical. It does four remarkable things:

    1. Determines what you will do. Deciding what you don’t like and won’t do is a hack to identify what you will do, which is basically the opposite. Establishing a “Won’t Do” list creates a clear, inspiring answer for what you will be to your customer.
    2. Becomes the ultimate time-saver. By eliminating what you won’t do, you create space to focus on what you will do — and enhance that offering.
    3. Simplifies decision-making. Decisions are either on-brand or off-brand; the list makes it quite obvious.
    4. Clarifies your brand in a way you otherwise couldn’t. When you nail what you will do, your company will be more successful and profitable. You offer something unique that is not a commodity.

    Your “Won’t Do” list is an essential business tool. It doesn’t only limit business scope — it can also help shape how you operate; your business practices, pricing structure and how you will treat your customers. A plumbing company might opt out of electrical work but also exclude practices such as overcharging, pushing upgrades or setting half-day-long appointment windows. Ultimately, a “Won’t Do” list streamlines your focus and helps narrow your niche.

    Related: How to Say ‘No’ More Often: Why Every Entrepreneur Needs a ‘To-Don’t’ List

    Focus your business with boundaries

    Back to Bergler, who ran a management consulting company with a narrowly defined space where they could add significant value. He was as selective about the quality of people on his team as he was with the type of business they would do. The resulting quality of work put them in high demand. Eventually, incoming work opportunities exceeded capacity. He turned a lot of business away and even referred clients to competitors when he felt his company could not truly nail it.

    As a result, clients started to approach Bergler first because they had so many misses with sub-par competitors. It made Bergler the preferred provider for their best clients. When he chose to sell the business, multiple buyers were confident in the company’s durable income because of its 20 years of consistent performance and sky-high customer satisfaction.

    With our self-storage company, we enjoyed a lot of success quickly. Our differentiated brand made us a customer favorite, earning us higher marks than the big-box companies and ultimately making us a great acquisition candidate when we chose to sell.

    When we started a new company focusing on vehicle storage, one of the first things we did was shop our competitors and brainstorm our “Won’t Do” list.

    As I think of the many businesses I know through 20 years in the Entrepreneurs’ Organization, I can tell you there is a robust correlation between success and abiding by a strong “Won’t Do” list. Do yourself a favor: Make your “Won’t Do” list today.

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    Barry Raber

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  • How Al Capone Inspired the Launch of a 95-Year-Old Family-Run Company | Entrepreneur

    How Al Capone Inspired the Launch of a 95-Year-Old Family-Run Company | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Creating our show The CEO Series has allowed me to sit down with some of the most innovative and inspiring business leaders in the world to get their insights on what it takes to launch, grow and sustain a meaningful business.

    This episode took us to Ozinga, the concrete and building material powerhouse. They’re based in Chicago and if you’re in the area, you’re surely familiar with their iconic red and white trucks. They have approximately 2,500 employees and I got to have an amazing chat with the guy who oversees it all, Marty Ozinga, the fourth-generation CEO of this 95-year-old company.

    Below are some highlights of that conversation, which have been edited for length and clarity. Watch the full video above.

    His approach to leadership

    “It’s not the people are working for you, they’re working with you. That’s the way I was mentored and taught. We all need each other. We all have different roles and responsibilities, but we’re working with each other.”

    Related: Why Notre Dame’s Football Coach Tells His Team to “Choose Hard”

    Ozinga’s 95-year history

    “Our family came from the Netherlands in 1893, the year of the World’s Fair here in Chicago. The family was always in the delivery business. Then in 1928, my great-grandfather was working with the Cook County Sheriff’s Department during Prohibition and dealing with the hazards of Al Capone and all of that. He had five kids at home and decided, “You know what? I don’t want to fight Al Capone anymore.” So he started a coal delivery business. And then around 1950, ready mix concrete became the era’s disruptive technology. Ready mixed means that it is batched for delivery from a central plant instead of being mixed on the job site. And so Ozinga became one of the first ready mix providers in the region.”

    Related: This Entrepreneur Started Making Short Videos to Share Her Passion for Cooking. Now Her Food Company Is a Global Powerhouse.

    On their iconic trucks

    “We’ve supplied concrete to iconic Chicago landmarks like Soldier Field and Wrigley Field, so it’s fun to be connected to places like that. And we’re really proud of our trucks’ red and white stripes. I think it was a combination of this keen sense of marketing, but also of national pride. But there’s also some joke that they were Dutch and very frugal and those were the two paint buckets in the garage. So I like both those stories.”

    The power of peacefulness

    “Our dispatch office is the nerve center of the business. It’s where all the orders come in from our customers, and then where we dispatch the trucks. It is intentionally very quiet inside. We’ve tried to get it as quiet and peaceful as possible because historically the dispatch office is a very intense, chaotic, loud and crazy place.”

    Building and sustaining a legacy

    “There’s an emotional connection for my family and this company. We’ve been really fortunate that we get to embed ourselves in communities throughout the Midwest. We’re committed to our employees and our customers — we want to be here for the next hundred years and longer. That’s our intention. And while change is necessary so you don’t get disrupted and die and go out of business, there are certain things that you shouldn’t meddle with. Our core principles are the foundation for who we are and why we do what we do — that should never change.”

    Related: How Personal Passions Fuel Business Success for the CEO of Vivid Seats

    Check out more profiles of innovative and impactful leaders by visiting The CEO Series archives.

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    Will Salvi

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