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3 Strong Alternatives For Startups To Raise Capital

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Keeping with the same theme of bringing you worldwide game changers to help give your startup the best advice, I recently interviewed Jonathan Barouch from a company called Local Measure. With clients like Starbucks, McDonalds, Newscorp, Sydney Opera House, San Francisco Museum of Modern Art, Qantas and one of Disney ABC’s subsidiaries in the USA, they are now getting ready to expand into Europe. These organisations use Local measures platform to see engagement, manage customer service and help with publishing, and tracking of operational issues.

Local Measure is a local content platform that aggregates location-based content from social media, for brands and businesses to leverage. If you’re Newscorp and you want to have local content to support your editorial, then local measure is really good at grabbing local photos and videos from breaking news or a concert. You might be wondering if many people actually tag their location.

On a platform like Instagram, most people share their location or tag the event that they are at. Facebook has a much smaller number of users that tag their location and geotagging on Twitter is growing more and more.

If you were at the Sydney Cricket Ground for a cricket game, Local Measure could track where in the stadium a tweet came from and aggregate all the tweets around the stadium. This information could then be used by the stadium, team, sponsor or media to get a 360 view of all the content that was shared from that game. The only tweets that are visible in this example, are ones where the user has checked in or geotagged their location, which means it’s in the public domain. Local Measure’s technology then allows a brand to converse with the fans, engage with the influencers and grab all the content from the game to use on their website.

Local Measure’s technology then allows a brand to converse with the fans, engage with the influencers and grab all the content from the game to use on their website.

Being a tech startup, Local Measure didn’t take the usual route of raising money via venture capital and raised money through cash flow, a few different funds, high net worth individuals and a company listed on the Australian stock exchange.

 

1. Using cash flow to pay for growth

It’s often seen as very cool for tech startups to funds via Venture Capital and before they actually need to. However, the normal way that businesses raised capital for 100’s of years was to plow their profits back into the business, rather than taking money out or paying dividends.

If you had a cash flow positive business (where you are paid before you have to expend money on goods or services) there would be a cash float to fund the growth. A great example of this was Jonathan’s previous e-commerce business, which was one of the first flower and gift sites in Asia. Money Plant. Advice for startups and successOften customers paid up front for their order before special occasions like Valentines Day, but they didn’t actually need to deliver the goods until 4 weeks later.

This created a healthy cash balance which they could invest a portion of, for growth, on things like marketing. Even though this business didn’t create any profit in its first year, the following years were profitable and they invested this money back into their business. This simple strategy is often overlooked by entrepreneurs, but it’s a great way to raise capital.

If you’re not getting money in advance then this strategy can still work but it depends on how profitable your startup is. The choice you have to make is do you want to fund for growth, pay dividends or pay the founders a higher wage? The answer should be pretty simple; short-term pain for long-term gain.

 

Tips for improving cashflow
  • Invoicing on the first day of the month can be really helpful especially if you have corporate clients who might pay in 60-90 days. The quicker you get your invoice out the quicker you get paid.
  • Consider your payment terms and try and invoice a month in advance so that you have been paid before you have actually had to provide the service.
  • Negotiate with your existing debtors to see if you can change the payment terms more towards your favor (this is quite hard with corporates).Don’t get lazy with your receivables and make sure that you only have very minimal amounts of money owed to you at any one time. A great way to help with overdue invoices is to send out reminders to your debtors on one week and the on the alternate week, follow this up with a call to the payables officer within the debtors company.
  • Don’t get lazy with your receivables and make sure that you only have very minimal amounts of money owed to you at any one time. A great way to help with overdue invoices is to send out reminders to your debtors on one week and the on the alternate week, follow this up with a call to the payables officer within the debtors company.
 All of this helps fund your growth!
Local Measures Office

Local Measures Office

2. Private Equity

The simplest way to start is by looking to your family and friends to raise capital from. If this is not an option then you might go the next step, which is private equity.

Traditional private equity is middle age men in dark suits, sitting in big city offices, who run big funds or private equity firms. Private equity is now a lot broader and can really be anyone who has money to place in return for equity.

When you look for private equity you might find that your startup could be too small for some and too large for others. It’s a matter of having the meetings to work this out as you go. Don’t despair, if the private equity fund says you are not right for them, individuals within the fund could invest in you personally – this actually happened to Jonathan.

 “Pounding the pavement is the best friend of an entrepreneur”

A warm intro from family, friends, people you went to school with, people you went to university with, or even people you work with, are the best avenues to find someone to invest in you privately. There are quite
a lot of high net worth individuals and angel investors who will happily write cheques in the thousands to help you. These people are located in the USA, Australia, Asia and even starting in Europe now. This route is great for a Seed Round or even a Series A Round. If you’re a tech startup, once your past these rounds then Venture Capital is the next place to start looking unless you have assets which you can get debt over.

In Jonathan’s Local Measure business, he visited around 15-25 different sources of funding before he found the right one. Raising this money happened within about 48 hours because they had some large corporates already using their service. Having corporate clients can really help to give belief in your startup and raise money quickly.

“The better you’re doing, the easier it is to raise money”

Before approaching a bank, remember that most of them won’t lend money to early-stage entrepreneurs unsecured. A bank is a good when you want them to finance over a fixed asset like some computer equipment or stock, and they can use that asset as collateral (security). If you’re building a tech startup a banks probably going to be less interested in providing debt because it’s higher risk, even though it has a higher return. Funding growth, expansion or research and development, is just not what banks do.

If you don’t want to give away equity you can also look to raise money privately via some sort of debt facility where you pay a higher amount of interest (10%-15%). The downside of this is that you’re stripping out cash flow every month to pay back the interest.

 

3. Crowdfunding

Every country has a different landscape with crowdfunding. Places like the USA have lots of money available on these platforms, but obviously that comes with a lot more competition for that money at the same time. When looking at crowdfunding you need to choose the platform that best suits your product or service. A cool success story that Jonathan invested in and used crowdfunding, was Life X who had the lightbulb that you could control with your smartphone.

Kickstarter and Indiegogo

Funded with kickstarter startupsBoth of these platforms are great when there is a physical product or service, and you’re raising money on the promise of delivering that product or service at some point. In this case, the crowdfunding is not really funding but more pre-purchasing. These platforms can also be a quick way to generate marketing or interest for your startup so that you can generate the cash to go and execute it.

Angellist

People put up their profile and their bio and keep it up to date. It’s like a mini LinkedIn for tech companies. As a tech startup, you can put out a call for funding and then angels can band together to fill up a round.

Our Crowd (John Medved)

They have their own fund and invest off their own balance sheet. They then split the rest of the equity across high net worth and angels. By packaging up the two methods, it makes it easy for startups to raise capital. On this site you upload all your financials, the story, the model and a video, and then investors login to the site to see if they like your business. Even if you don’t raise money from the platform it’s a good marketing exercise because some relatively influential people are getting to hear your story.

Chuffed

If you’re into social enterprise or not for profits then you should look at Chuffed. There are lots of great causes although the sums raised are usually below $100k.

 

Final Note

Knowing how much equity to give away is always challenging and you have to do what you need to in the moment. If you need other people’s money to grow then giving away equity is the price you have to pay. With the benefit of hindsight, every entrepreneur is always a genius.

“Every entrepreneur always wishes that they owned more of their own company”

As entrepreneurs, you often try and raise money too early because you are naturally bullish and want to grow. Sometimes it’s better to hold off on raising more capital and demonstrate traction first. When you can demonstrate more traction you can have more of a premium in your valuation and then you don’t have to give away as much equity – don’t go broke in the meantime though. In a B2B business, like Jonathans, the types, quantum, and quality of the customer base demonstrate traction. It’s also demonstrated by the recurring revenue, having low churn, a high renewal rate and a revenue stream that’s constantly growing.

When you can demonstrate more traction you can have more of a premium in your valuation and then you don’t have to give away as much equity – don’t go broke in the meantime though. In a B2B business, like Jonathans, the types, quantum, and quality of the customer base demonstrate traction. It’s also demonstrated by the recurring revenue, having low churn, a high renewal rate and a revenue stream that’s constantly growing.

“The only two things a startup should worry about is hiring great people and not running out of cash”

Having what’s called “smart money” is more important than just having money. This is why venture capital is quite attractive to a lot of entrepreneurs because they add prestige, knowledge, street cred and advice that is highly sort after. When you have smart investors on board it’s a good idea to try and have some local ones so that you can be involved with them hands on. When you combine these investors with great advisors you have a really solid group of people around you that can be out talking about your startup.

Local Measure has an advisory board made up of a very senior Vice President of Google in North America, a Senior Product person at Salesforce in San Francisco, a Senior Executive of a tech company in Singapore and a well-known Chief Operating Officer of a large media company in Australia.

Bringing these types of people on to offer advice is really valuable, but try and make sure they have some skin in the game (equity) so that they can be rewarded when you succeed. Jonathan says that how you tell your story and how you demonstrate traction is what will help you to attract talent to your startup. People who are a little bit further on in their career are really keen to give back and might be attracted to help your startup.

Jonathan Barouch of Local Measure talks about raising money for startups

Jonathan Barouch of Local Measure

 

I hope you got some ideas on some other ways to raise capital and feel free to head over to Local Measure if you want to know more about what Jonathan Barouch and his team do.

Tim is best known as a long-time contributor on Addicted2Success. Tim's content has been shared hundreds of thousands of times and he has written multiple viral posts all around success, personal development, motivation, and entrepreneurship. During the day Tim works with the most iconic tech companies in the world, as an adviser, to assist them in expanding into Australia. By night, Tim coaches his students on the principles of personal development and the fundamentals of entrepreneurship. You can connect with Tim through his website www.timdenning.net or through his Facebook.

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2 Comments

2 Comments

  1. Absolutely Tara

    Mar 16, 2015 at 6:40 pm

    Great resource list. Definitely some crowd funding resources I’d never heard of. Thanks for sharing.

    • Tim Denning

      Mar 18, 2015 at 8:54 am

      No problem Tara and thanks for checking out the article.

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Startups

The 5 Most Common Myths Associated With Starting a Business

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business myths

We live in a world of opportunities. I can remember growing up and always dreaming of wearing a suit and tie to work. It was my absolute dream. I was maybe 14 years old at the time and my grades in school were awful and I didn’t exactly have the brightest future ahead of me. I always had these misconceptions about success and what it took to achieve it.

After almost a decade of putting my head down and investing the time, I can finally say I have a profitable business. However, this isn’t about me and my business. This is about the myths that most people are allowing to rule their lives and hold them back from their greatness.

Running a business isn’t about making millions of dollars. When you own a business you’re making the world a better place. You’re providing a solution to a problem. You’re giving others an opportunity to earn money by becoming an employee. You’re doing so much more than making money. It’s good for the economy. So don’t let these common myths about starting a business fool you.

Here are 5 common myths you need to let go of once and for all:

1. You must be intelligent and good in school

Have you ever thought that it’s a basic requirement to graduate college with a business degree? It makes sense if you look at it from a distance. You go to school. You learn how to run a business. You start a business.

The flip side? Business school doesn’t teach you how to handle failure. School will never teach you how to adapt to the market place and make split second decisions that could impact millions of people’s daily lives. School can’t teach you to be you. Although school may not hurt, it’s 100% not required to run a successful business.

“Success usually comes to those who are too busy to be looking for it.” – Henry David Thoreau

2. You need money

Almost everyone I’ve asked about starting a business has brought up the concept of needing money to get started. I’m here to tell you that you can start thousands of different businesses without money. The most practical piece of advice I can give here is to go out and sell your service, collect the money, then invest a portion or all of that money into the tools needed to complete the job.

If you’re dead set on a business model that requires a lot of cash upfront, use resources like kickstarter or angel investors to get going. You personally don’t need to have any money to start any business ever. You just have to be willing to get creative when it comes to finding the necessary money required.

3. You need experience

As entrepreneurs, we are actually innovators. A lot of the things we are doing have never been done before. We’re constantly experimenting with new ideas and that comes with a lot of failures. You gain the necessary experience needed to run a business while you run your business. You’ll never learn everything you need to know and not a single day will go by where you don’t gain more experience. So dive in, have fun, and don’t give up.

4. You need a following

With all of these mega influencers on social media, it can be challenging to believe you can do anything without a massive following. This isn’t true at all. Everyone on this planet starts with the same following. ZERO. No one knows who you are until you put yourself out there.

Sure you may not have thousands of subscribers, you may not even have ten subscribers. The point is that if you put out good content and provide a service or product that actually helps make the world a better place and solves a problem for your customer, you will win. Just keep putting in the time and energy.

“If you are not willing to risk the usual, you will have to settle for the ordinary.” – Jim Rohn

5. There’s too much competition

Everyday you wait there will be more and more competition. If it was easy everyone would be doing it right? Your product or service is the difference. If you provide a better experience you will win. If you put in the work for the long haul and ignore the short term gains, you will win. Business is a massive competition and if you’re doing it right your competitors will become your friends, mentors, and possibly customers.

This article was written specifically for you. To help you overcome some of the fears of taking that leap of becoming an entrepreneur. Don’t get me wrong, it’s challenging. However, if you truly believe in your idea, there should be nothing on this planet that can stop you from bringing it to life.

What tips have you used to start your business? Comment below!

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How I Started A Business And Defeated 5 Years Of Procrastination When It Came To Doing So.

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I finally started a business! So many people had asked me when I was going to start one again and for the last five years, I’ve procrastinated. There’s a whole bunch of statistics which I’m not going to recite that suggest that many people (including me) want to start their own business.

Before each of us leaves this world, there’s a very strong chance we will try to start our own business at least once.

I talk to so many wannabe entrepreneurs who have an idea or a passion that they want to turn into a business yet they never take action. It’s been five years since my last business venture. I know what this feeling of wanting to begin a business is like because it’s plagued my thoughts for so long.

I’ve always had that spark in my brain that says “Tim, you love this passion of yours. Go and start a business and earn a living from it!”

I have ignored this bright spark for so long. I’ve made excuses. I’ve procrastinated. I’ve told myself I wasn’t good enough.

Then finally, a couple of months ago, I said to myself “SCREW IT! I’M STARTING MY BUSINESS.”

If you’ve ever had similar thoughts, then I want you by the end of this article to take action once and for all. I am going to give you the exact steps and tips I used to defeat five years of procrastination, and finally start my coaching and social media consulting business.

Here’s what I did to start my business:

 

Make a loss if you have to in the beginning to get a free education.

The first client I brought on made a loss. At the end of the consulting, I figured out I didn’t charge enough. This is perfect because I basically bought my first client and got a free education at the same time. The lessons my first client taught me were what I used to base my entire business on.

Rather than overthink the idea of a business, I decided to experiment by actually creating one and attempting to find a business model. The truth is you don’t need to know anything to start a business. As long as you can charge money for what you’re going to do, you’ll learn the rest from experience.

 

If you have no ideas at all, then ask yourself “What can I coach people on?”

Not everyone has a business idea they want to pursue. Some people just know they want to start a business. This was the same for me. I knew I wanted a business, but I had no idea what it was going to do. Then I went to an event and the speaker said that all of us could coach somebody, on something.

So I asked myself the same question and the answer I got back was social media and life. They are the two things I can coach everybody on. They are also the two things I’m passionate about. For you, the seed to your business starts with this same question.

While you may not become a coach, knowing what you can teach people will lead to knowing what you’re passionate about and are motivated to do for free.

 

Float the idea of charging one person, for one product or service.

The way I got started once I knew what I wanted to focus my business on was to float the idea with people. One of the people I floated the idea with wanted to be a client except they wanted me to write very long blog articles for them.
While ghostwriting is a service I’m considering to add in the not too distant future, writing long blog posts about a topic I wasn’t passionate about was not something I was willing to do and I said no.

As I kept putting out into the universe what this business was (which didn’t exist yet), I had several people express interest in what I was doing. One of them turned into my first client without even realizing it. Telling people what you are thinking of doing is how you get those first few clients.

“Act as if the business exists already and you can offer your product or service right away. That’s been a key concept for me to take action and start a business again finally”

 

Your first client gives you the confidence.

Winning the first client gave me the confidence to pursue my business. Getting a client is the best way to back yourself and motivate yourself to avoid procrastination and keep going with your business venture.

“It’s harder to fail when you have a client depending on you”

 

Forget business cards and websites.

I meet so many entrepreneurs in the making who spend hours creating websites, designing logos and even printing business cards (maybe they haven’t heard of LinkedIn). None of these activities will get your business started or give you the motivation you need.

Having the skill to sell yourself and start charging for something, anything, is how you start a business. A business is only a business when it has money coming in the door.

 

Act as if you’ve been doing it for years.

I’ve never done consulting. I didn’t do any business degree. I’m no brainiac.

I read a few books and watched a few consultants that my current employer use. Then I just acted as if I had been consulting for years. In a way, I had. Blogging is kind of like consulting.

In fact, in almost any job, you consult to somebody about something. So, we can all do consulting if we choose too.

Acting as if your business has existed for years is how you give your early clients the confidence to try you out and see if your business can serve their needs.

 

Put together a rough plan on the back of an envelope.

Okay, don’t really use an envelope because that would make you a dinosaur. Jot your rough plan down on the notepad of your not so smartphone. My plan for my business was literally nine things I could teach a business about social media.

These nine things became the plan I was going to follow when I consulted to a business. It took fifteen minutes to write. I suggest having a rough plan, so you know where you are heading and what the business will look like. Please don’t overthink the plan or you’ll never get started!

 

Ask yourself, “What’s the worst that can happen?”

This question will help you mitigate the risks that are buzzing around in your head and preventing you from starting a business. When I asked this question during the startup of my business a few months back, I realized that the worst that could happen is I disappoint a few clients.

By asking this question, you figure out that there are no life-threatening consequences to giving a business a go.

 

Ask yourself, “What would this look like if it were insanely easy?”

The temptation with a new business idea is to make it complex and overthink it. This is what so many wannabe entrepreneurs do and it’s a disaster. Asking yourself “What would this look like if it were easy?” helps you to chunk down in your head what you want to do.

Making something easy by default makes it doable to get started. If something is really easy, then it’s pretty hard not to give it a go. With my new business, easy looked like this:

– No website
– One service
– One customer
– Using my existing services like Zoom to enable the business
– Only doing it part time for one hour a week

With these boundaries in place, there was no way I was not going to follow through. I knew that if I wouldn’t do one hour a week of my new business, then I’d never do it seriously, or even at all.

Making my business easy was the first test to see if I could ever do the run-my-own-business gig again. I use making things easy as my BS test for any new idea. Try it for yourself.

 

Add your business into conversations you have with everybody.

I get messages on social media and emails all the time asking how I’m doing and what I’m working on. In every conversation during the early weeks of my business, I added in one phrase: “I’ve started a business.”

I didn’t say what it was. It was only natural people would ask, and I’d politely answer them. By using this approach, you’re not selling and you get to test your idea with real people who could become customers. Some of these conversations ended up in them becoming clients.

 

Always do it as a side hustle to start with.

The reason we procrastinate on our business ideas is that we have heaps of fear about what we’re going to do. A lot of this fear comes from the misconception that you need to quit your job or primary income source to start. You don’t.

Giving up your primary income source is the worst thing you can do. You don’t even know if your business will work or whether you’ll like it. Plus 90% of businesses fail in the first five years. That’s why I committed to only one hour per week to put myself to the entrepreneur test yet again.

Starting your business as a side hustle lets you find your niche and learn what your business will become. In the early days, your business will change lots of times, so you don’t want to bet your life savings on it until you are solid in your approach.

Again, by making my business a side hustle to begin with, I removed the fear, gave myself room to explore and allowed myself to fail. I’d suggest this approach for anyone wanting to start a business.

It’s so much easier this way which means your chances of success are higher. The worst case is you end up with a part-time business which gives you a second income. That’s not a bad result either.

So why can’t you start a business and stop procrastinating again?

If you want to increase your productivity and learn some more valuable life hacks, then join my private mailing list on timdenning.net

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3 Questions to Ask Yourself for a Winning Business

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successful business

“My pleasure”. We’ve all heard this before right? It is probably not implemented more than in the culture at Chik-Fil-A. I can’t tell you how many times I go in there and like clockwork they respond to every request with my pleasure. This is something that, not only separates them from their competition but continues to make them a destination for people to seek out when they are hungry.

This attitude that every employee from the cook to the owner carries is something that we should all learn from and understand the importance of in our daily interactions with people, prospects, and customers.  

Are you conditioning yourself everyday to be in a position of service for your family, friends, clients, and anyone that you come into contact with? Too many times I see people not focused and aware of the potential opportunities walking around them every day. Do you want to know why they are missing them? It is because their attitude sucks and isn’t one ready to be of service.   

1. Are You Approachable?   

Are you presenting yourself to everyone with a smile? This is a simple tactic you can implement right now that will open up more conversation opportunities for you and will have others asking how your day is going and the most common question or response from others will be, what has you smiling today?  Nature guards humans and to break down the barriers they have up, you have to be someone they feel is there to help them or be of service. Smiling first is key to opening them up and start breaking down their defenses.  

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity” – Douglas Adams

2. Are You A Good Listener?

After you create the introduction and start the dialogue with your customer or prospect it is essential to be quiet and listen to them.They will begin to tell you what, how, and why they are looking for help and give you the opportunity to show them how your service will solve their problems and needs. Too many times I see salespeople or business individuals talk right through their prospect or customer and in essence, talk themselves right out of a sale.  

Listening is crucial to being in the customer service business. I mean how you can indeed solve a problem for someone if you first refuse to listen to them and find out their problem/problems in the first place?  

“Service to others is the rent you pay for your room here on earth” – Muhammad Ali

3. Are You An Action Taker?  

The best of the best take action to service their customers, clients, or others for that matter. Talking points are great but it’s the activity and the action steps that people are looking for and out of you. If you really want to create an environment of service, this is non-negotiable. Don’t just communicate with your prospects how you are going to help them or service them, SHOW them through your commitments, actions, and abilities to solve their problems. This is a major part of the attitude of service framework that is necessary to separate you from the all the rest.   

You must first create an environment of service in your own daily habits everyday to create the atmosphere of service you want your colleagues, clients, and general surroundings to see from you as well. Your attitude is the first thing you have to check to get this mindset in alignment with your habits.  

Create a daily smile that others find welcoming.  Listen to everything going on around you so that you are sharp and aware of your surroundings, and then attack every day with actions of solving problems and elevating yourself as the solution others seek out when they need a product or service to better their situation and business.

What are some things you do that show your attitude of service? Comment Below!

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5 Simple Strategies for When You’ve Made a Business Mistake

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business mistakes

Anyone in business with years of experience will likely be able to cite a variety of past mistakes, whether they involve missing a meeting, not delivering content by a deadline or upsetting a client. The reality is, it’s impossible to be error-free in the demanding world of business, where deadlines and individual client preferences are numerous.

Ideally, businesses have a structure in place that helps prevent mistakes before they occur, even though they may still happen. As a result, businesses should realize that a mistake shouldn’t be a deal-breaker. A mistake can present an opportunity to solidify a client relationship, by giving you a chance to make up for it and more.

Here are five simple strategies to address mistakes in business, with integrity and honesty:

1. Provide Clients With Transparency

Businesses that make a mistake and refuse to tell a client about it until questioned will find themselves at the receiving end of an understandably irate client. Giving clients a heads-up shows integrity and a steadfast commitment to making it right, especially if they are not yet aware of the issue.

Ideally, you can address the issue with the client in person, or at least by phone. Showing an apologetic tone in an email is difficult. When apologizing, don’t beat around the bush. Directly clarify the mistake, why it happened and the resolution in progress. By telling a customer or client about a mistake before they realize it on their own, you enforce a willingness to take responsibility and right wrongs.

2. Offer Reassurance on Resolving the Issue

Being transparent about a business mistake is just the first step. It’s equally important to clarify with a client how you will resolve the issue. Since the last thing anyone wants is for the partnership to dissolve with a refund or termination of a contract, the best route is to offer a clear plan on how the project’s results will improve. You should also clarify what steps have been implemented to ensure the mistake does not occur again.

For example, if a PR agency sends out a press release for a client with erroneous content, it can immediately notify the client of the issue, while ensuring them that this round of pitching and its corrective follow-up round will be free of charge. This shows a business taking responsibility for its mistakes, while also offering a solid plan as to how it can resolve the issue without taking more resources or money from the client.

“A lack of transparency results in distrust and a deep sense of insecurity.” – Dalai Lama

3. Ask for Their Resolution Idea

After providing your own reassurance and strategy to amend the mistake, you should ask the client if there’s anything else you can do. If you proposed a firm plan for correcting the issue, then it’s likely they will simply say no — though the question provides room to make things right if they are not satisfied with your proposal.

If you intend on providing a discount due to your mistake, it’s better to ask the customer for their idea of a resolution before offering a discount, as their ideal discount may be less than what you initially intended on proposing. By accepting their idea for a resolution, the business is essentially admitting all wrongdoing while increasing the confidence of the client.

Additionally, for whatever the customer proposes as a solution, it’s a good idea to increase their desire slightly. For example, if a customer feels that a 10 percent discount is fair, counter with something like, “10 percent is very fair, and I’m very apologetic for our mistake. As a result, I will provide you with 15 percent off as a thank you for your understanding.”

4. Value the Power of Word-of-Mouth

Most clients are knowledgeable enough to know that mistakes happen. Their evaluation of a business incorporates how it responds to its errors. Especially in the digital age, reviews of a business are prevalent on social media and various review platforms.

A business that goes above and beyond to amend its mistake, by informing the customer of its error and offering a fair compensation, is likelier to be praised in reviews as taking charge of mistakes. Combined with other reviews from clients who ideally did not experience mistakes, a business will have an excellent review presence online.

“Free publicity and word of mouth is probably the best and cheapest form of advertising. Learn to use it to your advantage.” – Richard Branson

5. Don’t Stress That It Wasn’t Purposeful

If a client or consumer has spent time and money on your services, then they likely already know your mistake was just that, not some intentional sabotage. As a result, continually stressing that your mistake wasn’t on purpose is a waste of time, especially when you can be spending the dialogue on ideas for resolution and compensation. Taking the lead on amending a mistake is significantly more important than declaring its intent or lack thereof.

Mistakes happen in business, quite often. Eliminating these mistakes is ideal, but when they do occur, it’s possible for a business to salvage a client relationship with transparency, reassurance and a viable resolution.

How do you recover from a business mistake? Comment below!

Image courtesy of Twenty20.com

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10 “Brick-In-The-Head” Moments You’ll Encounter as an Entrepreneur

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entrepreneurship

The entrepreneurial life is one of the most challenging, stressful and risky avenues to success you could possibly choose. The issue with doing it alone in business ventures is exactly that; you’re alone. To be a successful entrepreneur, you have to be driven, thick-skinned, and ready for any curve balls. (more…)

Vladimir Yakimenko is a CEO, Investor and Founder of Kanbanchi, a popular project management add-on for G Suite. Kanbanchi is one of the fastest growing add-ons for G Suite and has over 80,000 active users. Our work has been featured on Today.com, Lifehacker, Lifehack and more.

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2 Comments

  1. Absolutely Tara

    Mar 16, 2015 at 6:40 pm

    Great resource list. Definitely some crowd funding resources I’d never heard of. Thanks for sharing.

    • Tim Denning

      Mar 18, 2015 at 8:54 am

      No problem Tara and thanks for checking out the article.

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Startups

The 5 Most Common Myths Associated With Starting a Business

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business myths

We live in a world of opportunities. I can remember growing up and always dreaming of wearing a suit and tie to work. It was my absolute dream. I was maybe 14 years old at the time and my grades in school were awful and I didn’t exactly have the brightest future ahead of me. I always had these misconceptions about success and what it took to achieve it.

After almost a decade of putting my head down and investing the time, I can finally say I have a profitable business. However, this isn’t about me and my business. This is about the myths that most people are allowing to rule their lives and hold them back from their greatness.

Running a business isn’t about making millions of dollars. When you own a business you’re making the world a better place. You’re providing a solution to a problem. You’re giving others an opportunity to earn money by becoming an employee. You’re doing so much more than making money. It’s good for the economy. So don’t let these common myths about starting a business fool you.

Here are 5 common myths you need to let go of once and for all:

1. You must be intelligent and good in school

Have you ever thought that it’s a basic requirement to graduate college with a business degree? It makes sense if you look at it from a distance. You go to school. You learn how to run a business. You start a business.

The flip side? Business school doesn’t teach you how to handle failure. School will never teach you how to adapt to the market place and make split second decisions that could impact millions of people’s daily lives. School can’t teach you to be you. Although school may not hurt, it’s 100% not required to run a successful business.

“Success usually comes to those who are too busy to be looking for it.” – Henry David Thoreau

2. You need money

Almost everyone I’ve asked about starting a business has brought up the concept of needing money to get started. I’m here to tell you that you can start thousands of different businesses without money. The most practical piece of advice I can give here is to go out and sell your service, collect the money, then invest a portion or all of that money into the tools needed to complete the job.

If you’re dead set on a business model that requires a lot of cash upfront, use resources like kickstarter or angel investors to get going. You personally don’t need to have any money to start any business ever. You just have to be willing to get creative when it comes to finding the necessary money required.

3. You need experience

As entrepreneurs, we are actually innovators. A lot of the things we are doing have never been done before. We’re constantly experimenting with new ideas and that comes with a lot of failures. You gain the necessary experience needed to run a business while you run your business. You’ll never learn everything you need to know and not a single day will go by where you don’t gain more experience. So dive in, have fun, and don’t give up.

4. You need a following

With all of these mega influencers on social media, it can be challenging to believe you can do anything without a massive following. This isn’t true at all. Everyone on this planet starts with the same following. ZERO. No one knows who you are until you put yourself out there.

Sure you may not have thousands of subscribers, you may not even have ten subscribers. The point is that if you put out good content and provide a service or product that actually helps make the world a better place and solves a problem for your customer, you will win. Just keep putting in the time and energy.

“If you are not willing to risk the usual, you will have to settle for the ordinary.” – Jim Rohn

5. There’s too much competition

Everyday you wait there will be more and more competition. If it was easy everyone would be doing it right? Your product or service is the difference. If you provide a better experience you will win. If you put in the work for the long haul and ignore the short term gains, you will win. Business is a massive competition and if you’re doing it right your competitors will become your friends, mentors, and possibly customers.

This article was written specifically for you. To help you overcome some of the fears of taking that leap of becoming an entrepreneur. Don’t get me wrong, it’s challenging. However, if you truly believe in your idea, there should be nothing on this planet that can stop you from bringing it to life.

What tips have you used to start your business? Comment below!

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How I Started A Business And Defeated 5 Years Of Procrastination When It Came To Doing So.

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I finally started a business! So many people had asked me when I was going to start one again and for the last five years, I’ve procrastinated. There’s a whole bunch of statistics which I’m not going to recite that suggest that many people (including me) want to start their own business.

Before each of us leaves this world, there’s a very strong chance we will try to start our own business at least once.

I talk to so many wannabe entrepreneurs who have an idea or a passion that they want to turn into a business yet they never take action. It’s been five years since my last business venture. I know what this feeling of wanting to begin a business is like because it’s plagued my thoughts for so long.

I’ve always had that spark in my brain that says “Tim, you love this passion of yours. Go and start a business and earn a living from it!”

I have ignored this bright spark for so long. I’ve made excuses. I’ve procrastinated. I’ve told myself I wasn’t good enough.

Then finally, a couple of months ago, I said to myself “SCREW IT! I’M STARTING MY BUSINESS.”

If you’ve ever had similar thoughts, then I want you by the end of this article to take action once and for all. I am going to give you the exact steps and tips I used to defeat five years of procrastination, and finally start my coaching and social media consulting business.

Here’s what I did to start my business:

 

Make a loss if you have to in the beginning to get a free education.

The first client I brought on made a loss. At the end of the consulting, I figured out I didn’t charge enough. This is perfect because I basically bought my first client and got a free education at the same time. The lessons my first client taught me were what I used to base my entire business on.

Rather than overthink the idea of a business, I decided to experiment by actually creating one and attempting to find a business model. The truth is you don’t need to know anything to start a business. As long as you can charge money for what you’re going to do, you’ll learn the rest from experience.

 

If you have no ideas at all, then ask yourself “What can I coach people on?”

Not everyone has a business idea they want to pursue. Some people just know they want to start a business. This was the same for me. I knew I wanted a business, but I had no idea what it was going to do. Then I went to an event and the speaker said that all of us could coach somebody, on something.

So I asked myself the same question and the answer I got back was social media and life. They are the two things I can coach everybody on. They are also the two things I’m passionate about. For you, the seed to your business starts with this same question.

While you may not become a coach, knowing what you can teach people will lead to knowing what you’re passionate about and are motivated to do for free.

 

Float the idea of charging one person, for one product or service.

The way I got started once I knew what I wanted to focus my business on was to float the idea with people. One of the people I floated the idea with wanted to be a client except they wanted me to write very long blog articles for them.
While ghostwriting is a service I’m considering to add in the not too distant future, writing long blog posts about a topic I wasn’t passionate about was not something I was willing to do and I said no.

As I kept putting out into the universe what this business was (which didn’t exist yet), I had several people express interest in what I was doing. One of them turned into my first client without even realizing it. Telling people what you are thinking of doing is how you get those first few clients.

“Act as if the business exists already and you can offer your product or service right away. That’s been a key concept for me to take action and start a business again finally”

 

Your first client gives you the confidence.

Winning the first client gave me the confidence to pursue my business. Getting a client is the best way to back yourself and motivate yourself to avoid procrastination and keep going with your business venture.

“It’s harder to fail when you have a client depending on you”

 

Forget business cards and websites.

I meet so many entrepreneurs in the making who spend hours creating websites, designing logos and even printing business cards (maybe they haven’t heard of LinkedIn). None of these activities will get your business started or give you the motivation you need.

Having the skill to sell yourself and start charging for something, anything, is how you start a business. A business is only a business when it has money coming in the door.

 

Act as if you’ve been doing it for years.

I’ve never done consulting. I didn’t do any business degree. I’m no brainiac.

I read a few books and watched a few consultants that my current employer use. Then I just acted as if I had been consulting for years. In a way, I had. Blogging is kind of like consulting.

In fact, in almost any job, you consult to somebody about something. So, we can all do consulting if we choose too.

Acting as if your business has existed for years is how you give your early clients the confidence to try you out and see if your business can serve their needs.

 

Put together a rough plan on the back of an envelope.

Okay, don’t really use an envelope because that would make you a dinosaur. Jot your rough plan down on the notepad of your not so smartphone. My plan for my business was literally nine things I could teach a business about social media.

These nine things became the plan I was going to follow when I consulted to a business. It took fifteen minutes to write. I suggest having a rough plan, so you know where you are heading and what the business will look like. Please don’t overthink the plan or you’ll never get started!

 

Ask yourself, “What’s the worst that can happen?”

This question will help you mitigate the risks that are buzzing around in your head and preventing you from starting a business. When I asked this question during the startup of my business a few months back, I realized that the worst that could happen is I disappoint a few clients.

By asking this question, you figure out that there are no life-threatening consequences to giving a business a go.

 

Ask yourself, “What would this look like if it were insanely easy?”

The temptation with a new business idea is to make it complex and overthink it. This is what so many wannabe entrepreneurs do and it’s a disaster. Asking yourself “What would this look like if it were easy?” helps you to chunk down in your head what you want to do.

Making something easy by default makes it doable to get started. If something is really easy, then it’s pretty hard not to give it a go. With my new business, easy looked like this:

– No website
– One service
– One customer
– Using my existing services like Zoom to enable the business
– Only doing it part time for one hour a week

With these boundaries in place, there was no way I was not going to follow through. I knew that if I wouldn’t do one hour a week of my new business, then I’d never do it seriously, or even at all.

Making my business easy was the first test to see if I could ever do the run-my-own-business gig again. I use making things easy as my BS test for any new idea. Try it for yourself.

 

Add your business into conversations you have with everybody.

I get messages on social media and emails all the time asking how I’m doing and what I’m working on. In every conversation during the early weeks of my business, I added in one phrase: “I’ve started a business.”

I didn’t say what it was. It was only natural people would ask, and I’d politely answer them. By using this approach, you’re not selling and you get to test your idea with real people who could become customers. Some of these conversations ended up in them becoming clients.

 

Always do it as a side hustle to start with.

The reason we procrastinate on our business ideas is that we have heaps of fear about what we’re going to do. A lot of this fear comes from the misconception that you need to quit your job or primary income source to start. You don’t.

Giving up your primary income source is the worst thing you can do. You don’t even know if your business will work or whether you’ll like it. Plus 90% of businesses fail in the first five years. That’s why I committed to only one hour per week to put myself to the entrepreneur test yet again.

Starting your business as a side hustle lets you find your niche and learn what your business will become. In the early days, your business will change lots of times, so you don’t want to bet your life savings on it until you are solid in your approach.

Again, by making my business a side hustle to begin with, I removed the fear, gave myself room to explore and allowed myself to fail. I’d suggest this approach for anyone wanting to start a business.

It’s so much easier this way which means your chances of success are higher. The worst case is you end up with a part-time business which gives you a second income. That’s not a bad result either.

So why can’t you start a business and stop procrastinating again?

If you want to increase your productivity and learn some more valuable life hacks, then join my private mailing list on timdenning.net

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3 Questions to Ask Yourself for a Winning Business

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“My pleasure”. We’ve all heard this before right? It is probably not implemented more than in the culture at Chik-Fil-A. I can’t tell you how many times I go in there and like clockwork they respond to every request with my pleasure. This is something that, not only separates them from their competition but continues to make them a destination for people to seek out when they are hungry.

This attitude that every employee from the cook to the owner carries is something that we should all learn from and understand the importance of in our daily interactions with people, prospects, and customers.  

Are you conditioning yourself everyday to be in a position of service for your family, friends, clients, and anyone that you come into contact with? Too many times I see people not focused and aware of the potential opportunities walking around them every day. Do you want to know why they are missing them? It is because their attitude sucks and isn’t one ready to be of service.   

1. Are You Approachable?   

Are you presenting yourself to everyone with a smile? This is a simple tactic you can implement right now that will open up more conversation opportunities for you and will have others asking how your day is going and the most common question or response from others will be, what has you smiling today?  Nature guards humans and to break down the barriers they have up, you have to be someone they feel is there to help them or be of service. Smiling first is key to opening them up and start breaking down their defenses.  

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity” – Douglas Adams

2. Are You A Good Listener?

After you create the introduction and start the dialogue with your customer or prospect it is essential to be quiet and listen to them.They will begin to tell you what, how, and why they are looking for help and give you the opportunity to show them how your service will solve their problems and needs. Too many times I see salespeople or business individuals talk right through their prospect or customer and in essence, talk themselves right out of a sale.  

Listening is crucial to being in the customer service business. I mean how you can indeed solve a problem for someone if you first refuse to listen to them and find out their problem/problems in the first place?  

“Service to others is the rent you pay for your room here on earth” – Muhammad Ali

3. Are You An Action Taker?  

The best of the best take action to service their customers, clients, or others for that matter. Talking points are great but it’s the activity and the action steps that people are looking for and out of you. If you really want to create an environment of service, this is non-negotiable. Don’t just communicate with your prospects how you are going to help them or service them, SHOW them through your commitments, actions, and abilities to solve their problems. This is a major part of the attitude of service framework that is necessary to separate you from the all the rest.   

You must first create an environment of service in your own daily habits everyday to create the atmosphere of service you want your colleagues, clients, and general surroundings to see from you as well. Your attitude is the first thing you have to check to get this mindset in alignment with your habits.  

Create a daily smile that others find welcoming.  Listen to everything going on around you so that you are sharp and aware of your surroundings, and then attack every day with actions of solving problems and elevating yourself as the solution others seek out when they need a product or service to better their situation and business.

What are some things you do that show your attitude of service? Comment Below!

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5 Simple Strategies for When You’ve Made a Business Mistake

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business mistakes

Anyone in business with years of experience will likely be able to cite a variety of past mistakes, whether they involve missing a meeting, not delivering content by a deadline or upsetting a client. The reality is, it’s impossible to be error-free in the demanding world of business, where deadlines and individual client preferences are numerous.

Ideally, businesses have a structure in place that helps prevent mistakes before they occur, even though they may still happen. As a result, businesses should realize that a mistake shouldn’t be a deal-breaker. A mistake can present an opportunity to solidify a client relationship, by giving you a chance to make up for it and more.

Here are five simple strategies to address mistakes in business, with integrity and honesty:

1. Provide Clients With Transparency

Businesses that make a mistake and refuse to tell a client about it until questioned will find themselves at the receiving end of an understandably irate client. Giving clients a heads-up shows integrity and a steadfast commitment to making it right, especially if they are not yet aware of the issue.

Ideally, you can address the issue with the client in person, or at least by phone. Showing an apologetic tone in an email is difficult. When apologizing, don’t beat around the bush. Directly clarify the mistake, why it happened and the resolution in progress. By telling a customer or client about a mistake before they realize it on their own, you enforce a willingness to take responsibility and right wrongs.

2. Offer Reassurance on Resolving the Issue

Being transparent about a business mistake is just the first step. It’s equally important to clarify with a client how you will resolve the issue. Since the last thing anyone wants is for the partnership to dissolve with a refund or termination of a contract, the best route is to offer a clear plan on how the project’s results will improve. You should also clarify what steps have been implemented to ensure the mistake does not occur again.

For example, if a PR agency sends out a press release for a client with erroneous content, it can immediately notify the client of the issue, while ensuring them that this round of pitching and its corrective follow-up round will be free of charge. This shows a business taking responsibility for its mistakes, while also offering a solid plan as to how it can resolve the issue without taking more resources or money from the client.

“A lack of transparency results in distrust and a deep sense of insecurity.” – Dalai Lama

3. Ask for Their Resolution Idea

After providing your own reassurance and strategy to amend the mistake, you should ask the client if there’s anything else you can do. If you proposed a firm plan for correcting the issue, then it’s likely they will simply say no — though the question provides room to make things right if they are not satisfied with your proposal.

If you intend on providing a discount due to your mistake, it’s better to ask the customer for their idea of a resolution before offering a discount, as their ideal discount may be less than what you initially intended on proposing. By accepting their idea for a resolution, the business is essentially admitting all wrongdoing while increasing the confidence of the client.

Additionally, for whatever the customer proposes as a solution, it’s a good idea to increase their desire slightly. For example, if a customer feels that a 10 percent discount is fair, counter with something like, “10 percent is very fair, and I’m very apologetic for our mistake. As a result, I will provide you with 15 percent off as a thank you for your understanding.”

4. Value the Power of Word-of-Mouth

Most clients are knowledgeable enough to know that mistakes happen. Their evaluation of a business incorporates how it responds to its errors. Especially in the digital age, reviews of a business are prevalent on social media and various review platforms.

A business that goes above and beyond to amend its mistake, by informing the customer of its error and offering a fair compensation, is likelier to be praised in reviews as taking charge of mistakes. Combined with other reviews from clients who ideally did not experience mistakes, a business will have an excellent review presence online.

“Free publicity and word of mouth is probably the best and cheapest form of advertising. Learn to use it to your advantage.” – Richard Branson

5. Don’t Stress That It Wasn’t Purposeful

If a client or consumer has spent time and money on your services, then they likely already know your mistake was just that, not some intentional sabotage. As a result, continually stressing that your mistake wasn’t on purpose is a waste of time, especially when you can be spending the dialogue on ideas for resolution and compensation. Taking the lead on amending a mistake is significantly more important than declaring its intent or lack thereof.

Mistakes happen in business, quite often. Eliminating these mistakes is ideal, but when they do occur, it’s possible for a business to salvage a client relationship with transparency, reassurance and a viable resolution.

How do you recover from a business mistake? Comment below!

Image courtesy of Twenty20.com

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