Connect with us

Startups

10 Tips for Selling your Startup to a Corporate

Published

on

For a long time, I have been sick and tired of having to fill out forms on my iPhone with such a small screen. Then I was lucky enough to meet Chris Koch and Chad Stephens from Lets Pop. I have seen thousands of pitch docs and presentations in my time, but the one I saw from Chris and Chad before I even thought about doing this interview, is the best I have ever seen!

The guys previously sold their last startup, 1Form, which was a platform to help tenants apply for rental properties, without having to repeat the process of entering their information every time.

This startup sold for $15 million AUD in 2014 and had Carsales.com founders Greg Roebuck, Wal Pisciotta and Steve Kloss invest in them.

It was a grander vision that caused them to want to sell 1Form, to fund their new startup Lets Pop. Their new startup takes the 1Form idea and applies it to everything, not just real estate.

The need for Pop came about when they realised they couldn’t build a form that would be able to be used by every single industry in the world. In simple terms, Pop is an application to replace the need to input information.

Lets Pop still have their original Carsales.com investors on board and as the business continues to grow rapidly they will asses whether relocating to Silicon Valley will help them achieve their global goals, be visible to the US market, meet their customers needs and have access to the valley’s valuation models.

 

What follows, in the interview that I did with Chris, are his top tips for selling your startup to a corporate!

 

1. Know when it’s the right time to sell your startup

For Chris, he says that it’s always a gut feeling of when the time is right. You can quite often get a feel for the inertia of your business, you can see what’s coming, you can see competitors joining and maybe they might enter the space you’re in. Or maybe the time is right and the value that you are getting out of your startup is at its maximum.

 

2. Approach is everything. Use those consultants for something useful

Try and approach a corporate in a way where it’s not you going directly in. Quite often, you will have consultants, accountants or companies that you work with within your startup, who have a relationship with corporates already. It would be a great idea to take one of these contacts out to lunch and ask them to get your startup in the door through a recommendation first, before trying any other way.

 “ If you want to ask a corporate to buy you, then you never want to come in the door as if you were asking for that. Asking for a corporate to purchase your startup yourself is automatically perceived as you being in a position of lesser power. “

Corporates will be looking at a number of things when looking to buy your startup, which will depend on the industry and the market. In the real estate industry for Chris, it was the data space that a lot of the corporates wanted to play in. Think about the markets you play in.

For other industries like tech, it might be talent – if your startup has got some talent then that’s attractive. In the banking world, it might specifically be technology that can streamline processes for the customer.

 

3. You need to create competitive tension

Domian.com.au and Realestate.com.au really helped create that competitive tension when the guys went to sell 1Form. Once you have an intro into a corporate then it’s worth mentioning in your meeting that you are thinking of divesting out of your startup and that you have other corporates interested. This creates a much better position of power than asking them to buy you. When you’re starting to get the word out that your startup is for sale, it’s best to try and go to similar competitors, all at once, within the industry you’re targeting.

When you use this strategy, what you will often find is that one of them will ask you for an exclusive period. That’s fine, but you have to just let them know that once that period is over, you will then shop it to their opposition. Obviously this is done in a friendly, professional, non smart-ass way.

 

4. Understand the advantages of both sides

The question you really need to ask yourself is how do you go about it and build your product in a way that a corporate couldn’t. You may hear a corporate say that they could build your technology or service themselves, but the reality is that that is very rarely the case. They could never build it with the speed and complexity that a startup could.

Quite often, what you will find is that if a corporate can see the benefit of your product or service and they understand that they couldn’t build it themselves, or as fast as you can, they may offer to buy you without you even asking.

If a corporate is using and relying on your technology then the decision may come down the track for them to want to buy it, so they are not paying fee’s to your startup. It’s only best to consider this offer if you have more than one corporate using your technology.

The thing to be very careful of here is that if one of your corporate customers is grossly larger than the rest, the corporate might realise that if they cancel their contract with you for a year or more (and make you bleed), buying your startup could be a much cheaper scenario for them. At the same time, you should ensure that your customer base is never completely dependent on one particular client.

 

5. Communication with corporates shouldn’t be like trying to understand a foreign language

If you’re trying to get a corporate to buy your startup then the way you communicate with them is crucial. You really need to control the process as much as possible and the best way to do this is with timelines and deadlines. You tell the corporate that if a decision is not by reached by a certain date; you are walking away as you have other people that you’re chatting to.

Failing to control the process properly could see your startup meeting with every executive in the corporates management ladder and having them still not be able to make a decision. In the initial stages of dealing with them you follow their process but the moment you hit a brick wall that’s frustrating, you immediately go outside of their process as hard and as fast as you can.

If one of the executive’s just comes back with a response to your proposal such as “thanks, I have seen your pitch deck which John Smith forwarded to me,” and you’re not getting much buy in, you don’t take that for an answer.

You need to go back to the person who is not that interested and say, “everyone else seems to be interested, how come you’re not.” In that response, you would even consider copying in everyone else from the corporate you have met with. You would also reiterate again that there is a deadline to make a decision and there are other competing clients who are interested.

When I was talking with Chris on this topic he also agreed with Filip Eldic, from our Bluedot interview,, that startups need to be very careful dealing with corporates in the early stages because it’s very easy to burn cash quickly on these types of proposals.

 

6. Write a great pitch deck

Before writing the pitch remember not to make it too long. If a corporate is looking at a pitch deck as part of their decision-making, below are some slides you might want to include.

  • Demonstrate what’s changed in society for your product to be relevant and what problems are occurring.
  • Very clearly, you need to show how your product solves that problem in a way that it hasn’t been solved in the past.
  • Halfway through the deck is a great spot to put the “who we are “slide.
  • Show an exact example of how you solve the problem
  • Spell out the high-level revenue opportunity
  • Talk about the size of the market for your product and how you’re going to get a percentage of it
  • Finally, show some competitive analysis

 “So many Startups come up with ideas that aren’t really solving a problem, they are creating a problem and then their product is fixing it. “

 

7. Decide how much to sell

For 1Form, the amount of equity they sold was a lot to do with where they were at and their future plans. This will often determine whether you sell part of your startup or the whole thing. Specifically, when selling equity to a corporate and not the whole thing, you can create a lot of headaches for your startup.

The corporate will want a board seat, a say in the decision-making and the suggestions they make about your product will be more about what might help their company, not the other companies who are your customers. All of this could slow you down so consider very carefully before going down this path.

 

8. Negotiating the price of your startup and what country to sell it in

Demonstrate the value of your startup and look at similar companies in similar spaces. It’s worth comparing the multiples and valuations that these companies received and using that as the basis for your own valuation. Once you have proven your model regionally, overseas corporates will be much more likely to want to be involved, so consider what country you sell your startup in.

The other thing to look at is what’s known as the accretive value. If the corporate you’re dealing with is listed on the stock exchange they will have a PE (price to earnings) value based on their share price. Whatever earnings are going to hit the company ‘s bottom line, because of the acquisition of your startup, can actually be used to work out the accretive value. You shouldn’t expect to get all of the accretive value, but you can certainly ask for a percentage of it.

Image Credit: SiliconValleyStock.com

Image Credit: SiliconValleyStock.com

An example of this would be, let’s say the company that’s acquiring your startup has a multiple on the stock market of 37, if you’re going to bring a bottom line hit of $1 million, they are effectively going to get an accretive value of $37 million. If they pay $30 million for your startup, that still leaves $7 million on the table for them. If you’re in Australia, the only issue you will have is that valuations aren’t looked at this way; they typically look at discounted cash flows. In Silicon Valley though, they certainly are.

 

9. Know your appetite for risk

With 1Form, the guys had many years of corporates approaching them to buy their technology. They decided that they had exhausted the market in Australia and that there was going to be a risk to try and take it global. The guys were fine with risk but realised that both going global, and building Lets Pop, was going to be risky.

The question then came, which one would have the bigger reward? The answer was simple, starting Lets Pop. Once the decision was made they had to focus all their energy on it and get red hot on their technology. The next step was then for them to go back to the corporates that had try to buy them before and tell them that they were interested in selling 1 Form.

 

10. Understand the timeframe

The time it takes to negotiate these deals is a hell of a lot longer than you may think. You have to get your partners, board / investors and the corporate all to agree. You also need to spend the time to go out and talk to the interested parties and put together the IM doc for this. From here you need to agree with the interested party, sign a term sheet and then this term sheet gets turned into a contract.

Once you have agreed on the contract (this takes a lot of time) then you have to finalise a lot of CP’s (condition precedents). Once all of this is done then the money will finally hit your bank account.

The process for 1Form took about 8 months from when they decided to sell, which is a relatively short time – it can take 1-2 years in some cases.

 The way I have written the process may sound like it’s all very complicated, but it’s really not and occurs on a daily basis. You just have to have the guts and determination to make it happen.

The exception to the rule though is in Silicon Valley, where these deals can be literally done overnight. The reason Chris and his team didn’t look to the valley when they sold 1Form was because they were visible to companies like Yahoo, Facebook and Google so when the phone call when out to them, because they hadn’t heard of their company, they just weren’t interested. This is why it made more sense for 1Form to be sold locally.

Not having these overseas companies be aware of their startup, was probably one mistake that Chris thinks they made and have learnt from.

“Be visible to the right people that will pay the most for your startup. These are usually the ones that can extract the most value from you.”

 

Now you have the money from the sale, what do you do now?

This part of the journey is going to be different for every startup. In Chris and Chad’s case, they never viewed selling their business as a retirement deal. What a lot of people told Chris and Chad, was to let the money sit in their account for at least a couple of months and not to go and buy anything straight away – this decision often has a lot to do with your risk appetite. Ideally you would also take some sort of holiday for around 3-6 months before jumping into anything else.

 

 Should you stay on after the sale?

A lot of this will depend on the deal that you have negotiated and the next thing that you want to do. If you stay on and you continue to grow the business for the company that acquired it, it looks great for anyone that wants to work with you again, but if you stay on and it doesn’t do well then it will affect your credibility going forward.

Typically once your startup is sold there will also be an earn out. For Chris, it was only 6 months but that is considered very short in these types of deals. The main reason for that was because Chris’s startups technology, did all the work, so there wasn’t any need to stay any longer.

Chris Koch and Chad Stephens from Lets Pop!

Chris Koch and Chad Stephens from Lets Pop!

I hope you got some good tips (I know I did) and if you’re sick and tired of filling out forms then I suggest you check out Lets Pop, as it will change your online experience.

 

Tim is best known as a long-time contributor on Addicted2Success. Tim's content has been shared millions of times and he has written multiple viral posts all around personal development and entrepreneurship. You can connect with Tim through his website www.timdenning.net

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Startups

3 Ways to Make Your Startup Feel Like a Booming Business

Published

on

startup success
Image Credit: Unsplash

Being an entrepreneur is a hugely popular day dream. Well over 50% of people want to be their own bosses, according to a survey from Forbes. However, only 4% of those surveyed are actually entrepreneurs! Why is entrepreneurship such a popular dream that many cannot achieve?

The problem is, many people approach running a startup without a solid plan. They hear about the benefits of being able to set your own schedule, develop your dreams, and ignore the realities of setting up a small business.

As Richard Branson says, “To be successful you have to be out there, you have to hit the ground running.” Success will only come if you are well prepared for the daily challenges of entrepreneurship. You need to be organized, focused, and connected to achieve your goals.

Your startup will feel like a booming business with a these 3 tweaks in your daily routine:

1. Stay Organized

Organization is crucial when it comes to running your own business. As an entrepreneur, you’re responsible for meeting all deadlines and getting your product and content out on time. You need to become a hardcore planner.

The best way to stay on top of everything is to create a to-do list and a routine to stay productive. Traditional work environments have routine built into the system, but it’s something you’re going to have to purposefully cultivate in your team. The best way to do this is to make sure your intentions are clear.

A solid to-do list is a good place to start. By ensuring a plan from when you wake up to when you end up in bed, you can make sure no moment is wasted. Use technology to achieve this goal as there are options on calendar and to-do-list applications on the market that can help you better plan and organize your day.

Google Calendar, Apple Calendar and Microsoft Outlook are all solid options since they can act as your personal assistant, making your day run seamlessly. Utilizing them helps you track events, plan and organize your schedule in a few simple clicks.

The core functions of the calendar apps are to show upcoming schedules and alert on important deadlines. To better understand the power of these apps, you have to actually get down to it and test them out. The one you choose depends on whether you are an Android, Windows or iOS person.

“Simplicity is the ultimate sophistication.” – Leonardo DaVinci

2. Stay Focused

When running a small business, it can be easy to lose sight of the big picture. If you’re focusing on small tasks, your energy will be depleted when it comes to the bigger picture of your business. In a study at the University of California, Irvine, found that interruptions that cause you to lose focus will result in stress and pressure. According to the report it takes an average of 23 minutes and 15 seconds to get back to a task after a distraction.

Tasks like scheduling and answering calls eat up time that could be better spent developing your team and product. This is where outsourcing comes in. By seeking out professionals, you can ensure your clients are cared for 24/7, while you get to the real work. By figuring out what tasks need to be performed by you and which do not, you’ll free up your time. Get a big business result with small business costs!

3. Stay Connected

Another way to help cultivate success in your startup is to make sure you are connecting with customers. It’s important that this feels authentic because people know when businesses aren’t being genuine and they will respond accordingly.

This authenticity is a benefit that startups have over big businesses. People will naturally assume that small businesses are more genuine than corporations. Prove it to them by being consistent and trust worthy.

“Well done is better than well said.” – Benjamin Franklin

Excellent communication and interaction with clients is necessary for your startup. You’ll want to build up a solid base of loyal customers, and the fastest way to do this is to provide exemplary customer experiences in every interaction. To help you better handle this part of small business and help monitor how you connect with your customers, consider investing in a Customer Relationship Management (CRM) system.

Through a CRM you can find and woo customers, because you are able to track how customers interact with your company. For example, a CRM program will let you know if you are getting leads from your social media campaigns, and how many people remember your marketing materials.

Big businesses use CRMs to get clients, by tracking where they connect, how frequently they buy from them, and where the connection stops. If you use a CRM in your small business, you’ll be able to compete, while still remaining genuine.

Running a small business isn’t for everyone, but there are certain traits you can develop within yourself to make it happen. By staying organized, focused, and connected, your startup will be able to compete with bigger businesses.

Do you have a business venture? If so, what is it and how do you plan on succeeding in the long run? Let us know in the comments below!

Continue Reading

Startups

4 Rules I Learned From Watching My First Business Go Up in Flames

Published

on

business failure
Image Credit: Unsplash

95% of all businesses fail within their first 5 years. Take that in for a moment. If you have recently started a business, you are almost guaranteed to fail! Why in the world would so many people start businesses, me amongst them, if they are basically writing themselves a death sentence?

Before I started my media company, I had spent 3.5 years working for another business. In December 2014, I came to the realization that I would not be working at that job forever. I approached my boss to discuss building a side project of my own within his business. My idea was a monthly greeting card business. The bonus was that I already had the images and the best verses to use, and an audience to target because of my job. In my mind, there was no way I could fail! As I began sending out contracts with the photographers, I was basically counting how much money I would be making in the first month.

Boy, was I in for a surprise! I had created the first three products and gotten a dozen or so photographers on board. However, when I announced the product to what I thought would be an eager audience, it totally flopped. Out of the over 150,000 people I had, only two signed up. When I went to production with the cards, the printing company totally failed on me. Everything that could have gone wrong did. The entire budget for the year had already been spent and we had essentially zero interest. I had to come back to my boss and tell him that the launch was a failure.

“Success is the result of perfection, hard work, learning from failure, loyalty, and persistence.” – Colin Powell

A few months later, when I came to him with the idea for what is Ratz Pack Media today, he laughed me out of the room. After the failed attempt, why in the world would he let me shift my focus from work AGAIN, just to fail?! Fast forward three years, and I am now running Ratz Pack Media full time, generating six figures. I have helped several clients reach their first $1 million. The things I learned from the very short lived greeting card company have helped me build my business, and now I hope they will help you as well.

Rule #1: Get used to failing

While it is true that almost all businesses fail within the first five years, that does not mean that the entrepreneurs who run them will never succeed. Just because your first idea fails, and it probably will, does not mean you should quit trying. When starting a business, you need to be prepared to fail. Everything that can go wrong will, and you‘d better expect them to. If you don’t, your business will join the graveyard. Even if the business fails, pull yourself back up and try again.

Rule #2: People will think you are crazy, and you probably are

Remember how 95% of all businesses fail? Yeah, you do have to be a bit crazy to want to try this thing. Yeah, it is easier to just keep your 9 to 5 job and your pension plan. Yeah, it is easier to let someone else build the future. But, where’s the fun in that? Starting a business is not for the faint of heart, and most people will assume you’ve gone off your rocker. They will likely say it until the moment you are successful. One of my favorite memes is,Work so hard that your haters ask if you’re hiring.” The reason I love it so much is because it is so true!

“Failure is simply the opportunity to begin again, this time more intelligently.” – Henry Ford

Rule #3: There are a ton of great ideas, but almost no great execution

When you take the leap to start a business you are likely starting out with an idea that you are sure will take you to the top of the mountain. When I started my business, I thought it would be a one-stop shop for online marketing. Now, we only focus on Facebook and Instagram management for clients. If I had kept going with the original idea, I would likely have failed already. At the beginning of a business, it is crucial to have a mission and a plan to execute, but you had better be willing to tweak and optimize it over time.

Rule #4: Test before you invest

When I started my greeting cards company, I put a lot of time into the creation of the products and the deals with the photographers. Before we had sold any products, we had already invested in the business. If I were to do it all over again, I would start by testing the waters, such as seeing what people thought about the cards, how much they would be willing to pay, how much interest there was in the idea, before putting so much into it. I apply this rule these days, especially in my clients’ ad campaigns. Whenever we start a new product launch, we begin by targeting their most engaged audience. We wait to see what these people think of the new product, and only then do we begin running ads to colder audiences.

When building a business, things may not always be in your favor. It is most important to remember that even if things go south, it is not too late. You will always have another chance, you will always get to try again, and you will always have another great idea.

I hope you enjoyed this article, and I would love to hear about the biggest lesson you learned from your previous failures down in the comments!

Continue Reading

Startups

Why You Should Use Pinterest to Grow Your Business

Published

on

pinterest for business

Raise your hand if you’ve been snubbing Pinterest. If your hand is raised, know that you’re not alone because also I used to. Mind you, about two years ago I did actually take the time to set up an account, yet that’s where my Pinterest relationship began and ended. I took a few minutes to look around and checked out. I felt like a squirrel on acid. Too chaotic, too many recipes and so much mom and baby stuff!

This isn’t for me. I’m a personal development blogger and an inspirational/motivational Facebook page owner. I thought Pinterest was no place for me because I post quotes and self help blogs. Due to this, I closed my mind off to it until December 27, 2017.

With the constant urging of a friend, I cautiously opened the Pinterest door again, almost like I was expecting some casserole to come out and smack me upside the head.

I looked around and much to my surprise and delight, there were other bloggers and business peeps just like me on Pinterest. I was instantly hooked. With a new appreciation for this beast, I dove in and got to work. I had 15 followers and no boards. After a few weeks of burning the midnight oil, getting Pin ready images for my blogs, resizing quote images from my Facebook page, creating boards, and joining tribes and other group boards, this happened.

Pinterest statistics

It’s not just babies and crafts

If you are a blogger or business owner, Pinterest has a place for you. Let’s talk a bit about what it is and isn’t.

First and foremost, Pinterest is not a social media platform, it’s a search engine like Google but more colorful and fun. The great thing about Pinterest is that it has its own search engine within it. You can see what your people are searching for. 

Another thing to note is people buy things on Pinterest. Lots of things! Check out this link for Pinterest stats! Now that you know what it’s not, let me tell you what it is. It’s a powerhouse traffic driver.

There’s power behind using Pinterest to drive traffic to your blog. Just take a look at these astounding facts:

  • A pin is 100 times more spreadable than your average tweet
  • Each pin can drive up to 2 page visits and 6 pageviews
  • Ecommerce sites benefit from pinning as each pin can generate 78 cents
  • The life of a pin is one week! Compare that to 24 minutes for Twitter and 90 minutes for Facebook. (source bloggingwizard.com)

In February of this year, my organic reach was just over 1.2 mil views! Remember, I started working it at the end of December with nothing.

pinterest business

It’s not as hard as you think!

It’s time consuming but definitely not hard. Take a minute to think about this, you work hard on your business. You want to reach people, sell things, inspire others, and teach through Pinterest. Don’t you think it would be worth your time and effort to work at something that will actually produce mind blowing results? Of course it would be!

Here are a few tips to get you started on Pinterest:

  • Create a business account. 
  • Have a look around to see what other people in your niche are pinning. Take a look to see what pins attract your attention. 
  • Head over to Picmonkey or Canva and create some pins for your blog or your products. Images are everything! Take extra time on these, you want them to be engaging and you definitely want repins.
  • Create boards and keep them secret until you have enough pins in them to go public. I usually wait until I have about 15 (as I’m creating new boards).
  • Find groups to join so you can share your stuff and repin others. Groups and Tailwind tribes (you should join Tailwind-tons of my traffic comes from there) are key! Think of them as an online networking/marketing event. You need them. I checked out big pinners in my niche, had a look at the group boards they belonged to and then asked to join. 
  • Get active. Pin from other people’s boards, connect with others, join Facebook groups for pinners. Aim to pin 20–50 times a day. It’s really up to you how often you want to, I’ve settled for 30 a day. Don’t let those numbers frighten you. Tailwind takes care of that for you!
  • Keyword your descriptions, boards, pins, everything! Remember, search engine.

Now get going!

Obviously there’s a tad more to it than that but once you get set up and get going, you will quickly become addicted to Pinterest (as I have) and be blown away at the growth of your business.

When you think about it, how much time are you spending (wasting) on social media platforms that just aren’t doing it for you? You’re pulling your hair out wondering why things aren’t working. Stop running the hamster wheel and head on over to Pinterest. It’s not just home decor, breastfeeding pumps and tuna salad recipes. There’s a whole other world you need to explore. If you discount it, you are leaving precious clients and money on the table.

“Social media is about sociology and psychology more than technology” Brian Solis

Have you used Pinterest for your business before? If so, did you like it? Let us know your thoughts in the comments below!

Continue Reading

Startups

5 Steps to Turn Your Business Into a Well Oiled Machine

Published

on

how to automate your business
Image Credit: Unsplash

A lot of online business owners that I interact with run “one man” operations. They spend most of their time delivering to their clients, leaving little room to bring in new ones, and generally grow their business. I’ve been there myself, and it’s incredibly easy to get stuck on solopreneur island, because in order to get off you have to jump into the unknown water and swim.

There are a two main problems with being a solopreneur, and if you are one these it may seem very familiar to you. First of all, as mentioned above, it’s easy to get busy delivering to clients, but that doesn’t actually grow your business, getting NEW clients does. The other big problem is that everything depends on you. You can’t get sick, tired, or go on a holiday, because as soon as you take your foot off the gas pedal, everything stops. Funnily enough, many of us start our own businesses in order to get freedom, yet many just end up creating another job for themselves.

The good news is that you can get off solopreneur island. I’ve done it, and here’s how to do it yourself:

Step #1 – Get clarity & package your offers

A lot of solopreneurs offer a wide range of services. They talk to prospects from all angles, and tailor make their services to fit each unique client’s needs. Sounds like a noble thing to do, but it’s not sustainable. A better approach is to look at the common denominator of the clients you’ve already worked with, and see if you can turn that into a front end offer.

I used to talk to prospects, listen to their needs, and then create a proposal, which usually got rejected. Since we sell video production, I told myself that every video is different, and you can’t turn that into a package. That was simply a limiting belief, and we eventually started offering 30, 60, and 90 second videos with either template or custom graphics.

Look at all the things you’re offering, and see if you can turn your offers into a menu, just like at a restaurant.

“Time = life; therefore, waste your time and waste your life, or master your time and master your life.” – Alan Lakein

Step #2 – Start treating your website like the asset it could be

Your website can get you new clients on autopilot. Don’t hold your website back by having 3 portfolio items and a contact form. Turn it into a salesman.

We get anywhere from 5-20 new clients every single month through our website. The way to accomplish this is to first and foremost realize that people cannot make a purchase if they have unanswered questions. Put all the information they need to make a decision right there on your website. If your prices are less than $1,000 for what you offer, I believe you can make the sale right there on the website. If it’s higher than $1,000 I generally recommend to get people on a phone call first.

These are some things you should do to your website: describe the problem your audience has, describe your solution, show lots of previous work, and tons of testimonials. You should also answer all the frequently asked questions, offer a guarantee, show pictures of your team and most importantly, go for the sale/phone call, not a contact form. Don’t hold your website back, let it work for you.

Step #3 – Build a high quality team

People freak out about hiring. They think hiring means you have to be able to pay someone $60,000 a year, but that’s not true. Like anything else, you can and should, start small. I hired my Project Manager for 3 hours per week when we started.

You’ll also note I wrote “high quality” above. This is crucial. When you hire a $3/hour graphics designer from India, I promise you’ll get $3 quality work. The problem with being cheap when you hire is that you get people that aren’t good at what they do, and can’t solve their own problems. When people can’t solve their own problems it’ll be up to you to do that. You’ll end up working just as much as if you didn’t hire them in the first place, therefore you are effectively paying money to give yourself stress. Does that sound like a good deal to you?

It’s better to hire a $25/h person for 3 hours than a $5/h person for a month. Once I decided to try hiring a high quality freelancer instead of a cheap one, I instantly saw the benefits and have never gone back.

Step #4 – Build systems and procedures

You should have a process in place for everything that is done in your business, especially the stuff that is done repeatedly. Use project management software so that your client facing work always follows the same structure. Use Trello for internal processes. Create documents and checklists showing how to do things.

If you’re training a new employee, record a video rather than doing the training live as you should expect to have to train another person on the same exact thing in the future.  This way a ton of the training will already be ready to go if your employee quits on you (this happened to me and I was able to successfully replace a project manager and have the new one up and running within one week!)

“To be happy, we must not be too concerned with others.” – Albert Camus

Step #5 – Automate when possible

Make a list of every task that happens in your business from when a prospect finds you to when your product is delivered to them. Then, look at how many of those things can actually be done by a computer, and get to work using Zapier and all your other tools. I even recorded a video series where I educate the client along the way.

If you find yourself having the same conversations over and over again, just record a video and save yourself the time! Every automation you put in place is going to save you minutes and eventually hours every single week. This frees up your time so that you can focus on growing your business, instead of just delivering to your clients.

Summary

Getting off solopreneur island is not rocket science. You’ll need to get clear on what your packages are, put your client acquisition on autopilot, get a high quality team in place, document and checklist everything, and finally automate what you can.

Once you actually go through with this you’ll find that your business can run without you, but more importantly you’ll be able to spend your time on growing the business, and not being forced to do the day-to-day operations.

What’s your main takeaway from this article? Comment below!

Continue Reading

Trending

Quotes

25 Confucius Quotes That Will Inspire You to Live the Best Life Possible

Published

on

Image Credit | The Great Courses

Confucius was an exceptional teacher and philosopher that founded Confucianism which can be described as a way to govern your life. (more…)

Armando Quintana III is a current master’s student and one of his main goals is to be a physician. He mentors high school and college students along with giving them speeches on alternative ways to reach success, and aims to educate people as a future physician on the natural healing powers of the body. He can be reached through social media at @armandoq3 or his website at mfmanifesto.com.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Startups

3 Ways to Make Your Startup Feel Like a Booming Business

Published

on

startup success
Image Credit: Unsplash

Being an entrepreneur is a hugely popular day dream. Well over 50% of people want to be their own bosses, according to a survey from Forbes. However, only 4% of those surveyed are actually entrepreneurs! Why is entrepreneurship such a popular dream that many cannot achieve?

The problem is, many people approach running a startup without a solid plan. They hear about the benefits of being able to set your own schedule, develop your dreams, and ignore the realities of setting up a small business.

As Richard Branson says, “To be successful you have to be out there, you have to hit the ground running.” Success will only come if you are well prepared for the daily challenges of entrepreneurship. You need to be organized, focused, and connected to achieve your goals.

Your startup will feel like a booming business with a these 3 tweaks in your daily routine:

1. Stay Organized

Organization is crucial when it comes to running your own business. As an entrepreneur, you’re responsible for meeting all deadlines and getting your product and content out on time. You need to become a hardcore planner.

The best way to stay on top of everything is to create a to-do list and a routine to stay productive. Traditional work environments have routine built into the system, but it’s something you’re going to have to purposefully cultivate in your team. The best way to do this is to make sure your intentions are clear.

A solid to-do list is a good place to start. By ensuring a plan from when you wake up to when you end up in bed, you can make sure no moment is wasted. Use technology to achieve this goal as there are options on calendar and to-do-list applications on the market that can help you better plan and organize your day.

Google Calendar, Apple Calendar and Microsoft Outlook are all solid options since they can act as your personal assistant, making your day run seamlessly. Utilizing them helps you track events, plan and organize your schedule in a few simple clicks.

The core functions of the calendar apps are to show upcoming schedules and alert on important deadlines. To better understand the power of these apps, you have to actually get down to it and test them out. The one you choose depends on whether you are an Android, Windows or iOS person.

“Simplicity is the ultimate sophistication.” – Leonardo DaVinci

2. Stay Focused

When running a small business, it can be easy to lose sight of the big picture. If you’re focusing on small tasks, your energy will be depleted when it comes to the bigger picture of your business. In a study at the University of California, Irvine, found that interruptions that cause you to lose focus will result in stress and pressure. According to the report it takes an average of 23 minutes and 15 seconds to get back to a task after a distraction.

Tasks like scheduling and answering calls eat up time that could be better spent developing your team and product. This is where outsourcing comes in. By seeking out professionals, you can ensure your clients are cared for 24/7, while you get to the real work. By figuring out what tasks need to be performed by you and which do not, you’ll free up your time. Get a big business result with small business costs!

3. Stay Connected

Another way to help cultivate success in your startup is to make sure you are connecting with customers. It’s important that this feels authentic because people know when businesses aren’t being genuine and they will respond accordingly.

This authenticity is a benefit that startups have over big businesses. People will naturally assume that small businesses are more genuine than corporations. Prove it to them by being consistent and trust worthy.

“Well done is better than well said.” – Benjamin Franklin

Excellent communication and interaction with clients is necessary for your startup. You’ll want to build up a solid base of loyal customers, and the fastest way to do this is to provide exemplary customer experiences in every interaction. To help you better handle this part of small business and help monitor how you connect with your customers, consider investing in a Customer Relationship Management (CRM) system.

Through a CRM you can find and woo customers, because you are able to track how customers interact with your company. For example, a CRM program will let you know if you are getting leads from your social media campaigns, and how many people remember your marketing materials.

Big businesses use CRMs to get clients, by tracking where they connect, how frequently they buy from them, and where the connection stops. If you use a CRM in your small business, you’ll be able to compete, while still remaining genuine.

Running a small business isn’t for everyone, but there are certain traits you can develop within yourself to make it happen. By staying organized, focused, and connected, your startup will be able to compete with bigger businesses.

Do you have a business venture? If so, what is it and how do you plan on succeeding in the long run? Let us know in the comments below!

Continue Reading

Startups

4 Rules I Learned From Watching My First Business Go Up in Flames

Published

on

business failure
Image Credit: Unsplash

95% of all businesses fail within their first 5 years. Take that in for a moment. If you have recently started a business, you are almost guaranteed to fail! Why in the world would so many people start businesses, me amongst them, if they are basically writing themselves a death sentence?

Before I started my media company, I had spent 3.5 years working for another business. In December 2014, I came to the realization that I would not be working at that job forever. I approached my boss to discuss building a side project of my own within his business. My idea was a monthly greeting card business. The bonus was that I already had the images and the best verses to use, and an audience to target because of my job. In my mind, there was no way I could fail! As I began sending out contracts with the photographers, I was basically counting how much money I would be making in the first month.

Boy, was I in for a surprise! I had created the first three products and gotten a dozen or so photographers on board. However, when I announced the product to what I thought would be an eager audience, it totally flopped. Out of the over 150,000 people I had, only two signed up. When I went to production with the cards, the printing company totally failed on me. Everything that could have gone wrong did. The entire budget for the year had already been spent and we had essentially zero interest. I had to come back to my boss and tell him that the launch was a failure.

“Success is the result of perfection, hard work, learning from failure, loyalty, and persistence.” – Colin Powell

A few months later, when I came to him with the idea for what is Ratz Pack Media today, he laughed me out of the room. After the failed attempt, why in the world would he let me shift my focus from work AGAIN, just to fail?! Fast forward three years, and I am now running Ratz Pack Media full time, generating six figures. I have helped several clients reach their first $1 million. The things I learned from the very short lived greeting card company have helped me build my business, and now I hope they will help you as well.

Rule #1: Get used to failing

While it is true that almost all businesses fail within the first five years, that does not mean that the entrepreneurs who run them will never succeed. Just because your first idea fails, and it probably will, does not mean you should quit trying. When starting a business, you need to be prepared to fail. Everything that can go wrong will, and you‘d better expect them to. If you don’t, your business will join the graveyard. Even if the business fails, pull yourself back up and try again.

Rule #2: People will think you are crazy, and you probably are

Remember how 95% of all businesses fail? Yeah, you do have to be a bit crazy to want to try this thing. Yeah, it is easier to just keep your 9 to 5 job and your pension plan. Yeah, it is easier to let someone else build the future. But, where’s the fun in that? Starting a business is not for the faint of heart, and most people will assume you’ve gone off your rocker. They will likely say it until the moment you are successful. One of my favorite memes is,Work so hard that your haters ask if you’re hiring.” The reason I love it so much is because it is so true!

“Failure is simply the opportunity to begin again, this time more intelligently.” – Henry Ford

Rule #3: There are a ton of great ideas, but almost no great execution

When you take the leap to start a business you are likely starting out with an idea that you are sure will take you to the top of the mountain. When I started my business, I thought it would be a one-stop shop for online marketing. Now, we only focus on Facebook and Instagram management for clients. If I had kept going with the original idea, I would likely have failed already. At the beginning of a business, it is crucial to have a mission and a plan to execute, but you had better be willing to tweak and optimize it over time.

Rule #4: Test before you invest

When I started my greeting cards company, I put a lot of time into the creation of the products and the deals with the photographers. Before we had sold any products, we had already invested in the business. If I were to do it all over again, I would start by testing the waters, such as seeing what people thought about the cards, how much they would be willing to pay, how much interest there was in the idea, before putting so much into it. I apply this rule these days, especially in my clients’ ad campaigns. Whenever we start a new product launch, we begin by targeting their most engaged audience. We wait to see what these people think of the new product, and only then do we begin running ads to colder audiences.

When building a business, things may not always be in your favor. It is most important to remember that even if things go south, it is not too late. You will always have another chance, you will always get to try again, and you will always have another great idea.

I hope you enjoyed this article, and I would love to hear about the biggest lesson you learned from your previous failures down in the comments!

Continue Reading

Startups

Why You Should Use Pinterest to Grow Your Business

Published

on

pinterest for business

Raise your hand if you’ve been snubbing Pinterest. If your hand is raised, know that you’re not alone because also I used to. Mind you, about two years ago I did actually take the time to set up an account, yet that’s where my Pinterest relationship began and ended. I took a few minutes to look around and checked out. I felt like a squirrel on acid. Too chaotic, too many recipes and so much mom and baby stuff!

This isn’t for me. I’m a personal development blogger and an inspirational/motivational Facebook page owner. I thought Pinterest was no place for me because I post quotes and self help blogs. Due to this, I closed my mind off to it until December 27, 2017.

With the constant urging of a friend, I cautiously opened the Pinterest door again, almost like I was expecting some casserole to come out and smack me upside the head.

I looked around and much to my surprise and delight, there were other bloggers and business peeps just like me on Pinterest. I was instantly hooked. With a new appreciation for this beast, I dove in and got to work. I had 15 followers and no boards. After a few weeks of burning the midnight oil, getting Pin ready images for my blogs, resizing quote images from my Facebook page, creating boards, and joining tribes and other group boards, this happened.

Pinterest statistics

It’s not just babies and crafts

If you are a blogger or business owner, Pinterest has a place for you. Let’s talk a bit about what it is and isn’t.

First and foremost, Pinterest is not a social media platform, it’s a search engine like Google but more colorful and fun. The great thing about Pinterest is that it has its own search engine within it. You can see what your people are searching for. 

Another thing to note is people buy things on Pinterest. Lots of things! Check out this link for Pinterest stats! Now that you know what it’s not, let me tell you what it is. It’s a powerhouse traffic driver.

There’s power behind using Pinterest to drive traffic to your blog. Just take a look at these astounding facts:

  • A pin is 100 times more spreadable than your average tweet
  • Each pin can drive up to 2 page visits and 6 pageviews
  • Ecommerce sites benefit from pinning as each pin can generate 78 cents
  • The life of a pin is one week! Compare that to 24 minutes for Twitter and 90 minutes for Facebook. (source bloggingwizard.com)

In February of this year, my organic reach was just over 1.2 mil views! Remember, I started working it at the end of December with nothing.

pinterest business

It’s not as hard as you think!

It’s time consuming but definitely not hard. Take a minute to think about this, you work hard on your business. You want to reach people, sell things, inspire others, and teach through Pinterest. Don’t you think it would be worth your time and effort to work at something that will actually produce mind blowing results? Of course it would be!

Here are a few tips to get you started on Pinterest:

  • Create a business account. 
  • Have a look around to see what other people in your niche are pinning. Take a look to see what pins attract your attention. 
  • Head over to Picmonkey or Canva and create some pins for your blog or your products. Images are everything! Take extra time on these, you want them to be engaging and you definitely want repins.
  • Create boards and keep them secret until you have enough pins in them to go public. I usually wait until I have about 15 (as I’m creating new boards).
  • Find groups to join so you can share your stuff and repin others. Groups and Tailwind tribes (you should join Tailwind-tons of my traffic comes from there) are key! Think of them as an online networking/marketing event. You need them. I checked out big pinners in my niche, had a look at the group boards they belonged to and then asked to join. 
  • Get active. Pin from other people’s boards, connect with others, join Facebook groups for pinners. Aim to pin 20–50 times a day. It’s really up to you how often you want to, I’ve settled for 30 a day. Don’t let those numbers frighten you. Tailwind takes care of that for you!
  • Keyword your descriptions, boards, pins, everything! Remember, search engine.

Now get going!

Obviously there’s a tad more to it than that but once you get set up and get going, you will quickly become addicted to Pinterest (as I have) and be blown away at the growth of your business.

When you think about it, how much time are you spending (wasting) on social media platforms that just aren’t doing it for you? You’re pulling your hair out wondering why things aren’t working. Stop running the hamster wheel and head on over to Pinterest. It’s not just home decor, breastfeeding pumps and tuna salad recipes. There’s a whole other world you need to explore. If you discount it, you are leaving precious clients and money on the table.

“Social media is about sociology and psychology more than technology” Brian Solis

Have you used Pinterest for your business before? If so, did you like it? Let us know your thoughts in the comments below!

Continue Reading

Startups

5 Steps to Turn Your Business Into a Well Oiled Machine

Published

on

how to automate your business
Image Credit: Unsplash

A lot of online business owners that I interact with run “one man” operations. They spend most of their time delivering to their clients, leaving little room to bring in new ones, and generally grow their business. I’ve been there myself, and it’s incredibly easy to get stuck on solopreneur island, because in order to get off you have to jump into the unknown water and swim.

There are a two main problems with being a solopreneur, and if you are one these it may seem very familiar to you. First of all, as mentioned above, it’s easy to get busy delivering to clients, but that doesn’t actually grow your business, getting NEW clients does. The other big problem is that everything depends on you. You can’t get sick, tired, or go on a holiday, because as soon as you take your foot off the gas pedal, everything stops. Funnily enough, many of us start our own businesses in order to get freedom, yet many just end up creating another job for themselves.

The good news is that you can get off solopreneur island. I’ve done it, and here’s how to do it yourself:

Step #1 – Get clarity & package your offers

A lot of solopreneurs offer a wide range of services. They talk to prospects from all angles, and tailor make their services to fit each unique client’s needs. Sounds like a noble thing to do, but it’s not sustainable. A better approach is to look at the common denominator of the clients you’ve already worked with, and see if you can turn that into a front end offer.

I used to talk to prospects, listen to their needs, and then create a proposal, which usually got rejected. Since we sell video production, I told myself that every video is different, and you can’t turn that into a package. That was simply a limiting belief, and we eventually started offering 30, 60, and 90 second videos with either template or custom graphics.

Look at all the things you’re offering, and see if you can turn your offers into a menu, just like at a restaurant.

“Time = life; therefore, waste your time and waste your life, or master your time and master your life.” – Alan Lakein

Step #2 – Start treating your website like the asset it could be

Your website can get you new clients on autopilot. Don’t hold your website back by having 3 portfolio items and a contact form. Turn it into a salesman.

We get anywhere from 5-20 new clients every single month through our website. The way to accomplish this is to first and foremost realize that people cannot make a purchase if they have unanswered questions. Put all the information they need to make a decision right there on your website. If your prices are less than $1,000 for what you offer, I believe you can make the sale right there on the website. If it’s higher than $1,000 I generally recommend to get people on a phone call first.

These are some things you should do to your website: describe the problem your audience has, describe your solution, show lots of previous work, and tons of testimonials. You should also answer all the frequently asked questions, offer a guarantee, show pictures of your team and most importantly, go for the sale/phone call, not a contact form. Don’t hold your website back, let it work for you.

Step #3 – Build a high quality team

People freak out about hiring. They think hiring means you have to be able to pay someone $60,000 a year, but that’s not true. Like anything else, you can and should, start small. I hired my Project Manager for 3 hours per week when we started.

You’ll also note I wrote “high quality” above. This is crucial. When you hire a $3/hour graphics designer from India, I promise you’ll get $3 quality work. The problem with being cheap when you hire is that you get people that aren’t good at what they do, and can’t solve their own problems. When people can’t solve their own problems it’ll be up to you to do that. You’ll end up working just as much as if you didn’t hire them in the first place, therefore you are effectively paying money to give yourself stress. Does that sound like a good deal to you?

It’s better to hire a $25/h person for 3 hours than a $5/h person for a month. Once I decided to try hiring a high quality freelancer instead of a cheap one, I instantly saw the benefits and have never gone back.

Step #4 – Build systems and procedures

You should have a process in place for everything that is done in your business, especially the stuff that is done repeatedly. Use project management software so that your client facing work always follows the same structure. Use Trello for internal processes. Create documents and checklists showing how to do things.

If you’re training a new employee, record a video rather than doing the training live as you should expect to have to train another person on the same exact thing in the future.  This way a ton of the training will already be ready to go if your employee quits on you (this happened to me and I was able to successfully replace a project manager and have the new one up and running within one week!)

“To be happy, we must not be too concerned with others.” – Albert Camus

Step #5 – Automate when possible

Make a list of every task that happens in your business from when a prospect finds you to when your product is delivered to them. Then, look at how many of those things can actually be done by a computer, and get to work using Zapier and all your other tools. I even recorded a video series where I educate the client along the way.

If you find yourself having the same conversations over and over again, just record a video and save yourself the time! Every automation you put in place is going to save you minutes and eventually hours every single week. This frees up your time so that you can focus on growing your business, instead of just delivering to your clients.

Summary

Getting off solopreneur island is not rocket science. You’ll need to get clear on what your packages are, put your client acquisition on autopilot, get a high quality team in place, document and checklist everything, and finally automate what you can.

Once you actually go through with this you’ll find that your business can run without you, but more importantly you’ll be able to spend your time on growing the business, and not being forced to do the day-to-day operations.

What’s your main takeaway from this article? Comment below!

Continue Reading

Trending