StartupNation

Through Mentoring, Angel Investors Offer More Than Just Money
Contemporary Cash Flow Management Tips for Startups
Starting a Business? You Need to Research Your Number One Asset
When Disaster Strikes, You Can Count on Dell
WJR Business Beat: Marquette Is a Michigan Tech and Startup Hub (Episode 426)
7 Steps to Getting the Best Price When Selling Your Business
Why I Would Rather Be Guided than Driven
This Angel Investor Shares 11 Tips for Entrepreneurs to Raise Smart Money
The Future of Gigging: Could the Gig Economy Save the Startup Market?
5 Top Tips to Galvanize Small Business Growth
What About Mike? How to Handle a Weak Link on Your Payroll
RJ King of DBusiness on Promising Detroit Developments
WJR Business Beat: The Threat of Cybersecurity Breaches Can Devastate (Episode 425)
The Role of Culture in a Remote Work Setting
Eliminating Friction is Bad for Business. Embrace A Dose of Good Friction Instead.

Through Mentoring, Angel Investors Offer More Than Just Money

Posted: 17 Jun 2022 02:05 AM PDT

Captaining a new enterprise is like constructing a parachute after you've been thrown out of a plane: It's difficult, it's dangerous, you're pressed for time and a wrong decision can be fatal. When faced with the pressures of starting a new company, your ability to act quickly, decisively and correctly will depend on experience, skill and knowledge. If you are short on any of these attributes (not uncommon for the first-time entrepreneur), mentoring can make the difference between survival and doom.

Mentoring is more than advice

To be clear, a discussion of mentoring must distinguish between the expert, committed, hands-on and personalized guidance a good mentor provides and the mountains of generic, if well-meaning, advice available from a random assortment of friends, family, websites and newsletters. The adjectives associated with a good mentor include:

Experienced: By this, we mean experience as an entrepreneur who has launched a successful company in the same or similar industry. The best experience is relatively recent, relevant and relatable, providing the foundation for trusting the advice given.
Candid: A good mentor is candid yet supportive, telling you what you need to know even if the message is disconcerting. Sugarcoating is easier on the ego but ultimately unhelpful. Nonetheless, a good mentor can deliver bad news in a supportive way that helps you stay motivated and positive.
Expert: You need advice that complements your own knowledge and expertise. It's unusual for any one entrepreneur to have an equally strong background in technology, finance, operations, management and all the other skills required to make the right decisions rapidly. Your mentor(s) should fill the gaps in your own abilities with expertise they've gained through experience.
Committed: You'd like a mentor to stay involved. Buy-in from a mentor ensures a continuity in the guidance you receive and a willingness to help you work through difficult decisions.

Investors as mentors

Angel investors are individuals and groups that fund promising startups. They are known as angels because they will often tread where venture capitalists (VC) and private equity firms fear to go—into the risky world of promising but unproven business ideas. They also frequently serve as mentors. That should be a win-win: You, as a budding entrepreneur, gain the benefit of experience and contacts, while the angels take positive action to help protect their investments. Angels serving as mentors are more likely to stay committed to your venture.

The Angel Capital Association (ACA) is the world's largest angel professional development organization, with more than 13,000 investors in 260 angel groups and accredited platforms. The ACA membership has invested in more than 91,000 ventures. This is a good starting place to identify the angel investor groups in your region and investigate the opportunities for mentorship.

Once a startup has grown to the point it needs additional rounds of funding, entrepreneurs will often turn to venture capital firms and private equity firms for financing. These firms frequently provide mentorship programs that are appropriate to your company's development stage. For example, New Enterprise Associates (NEA) is a large VC firm with mentorship programs for product design entrepreneurs.

Specialized investors as mentors

You might also be interested in mentorship programs from specialized angel investment groups and other sources. Some examples:

Veterans:

Hivers and Strivers invests in entrepreneur graduates of the U.S. military academies and offers mentors who serve as board members and advisors.
The Veteran Entrepreneur Network provides one-on-one business mentoring by veterans for veterans.

Women:

Pipeline Angels arranges boot camps and funding pitches for female entrepreneurs who need early stage investments. The boot camps feature mentoring, education and practice sessions.
Golden Seeds is an active early-stage investment firm that offers educational and mentoring support.

Minorities:

500 Startups specializes in early funding and mentorship for minority-based ventures. They feature a Seed Program with four months of mentoring, $150,000 in seed money and other support.
Black Founders is an organization that provides access to mentorship and advice to black entrepreneurs.

6 Tips for Entrepreneurs to Successfully Pitch to Women Angel Investors

Non-funding mentorship resources

Not all, or even most, mentorship arises out of funding programs. You can look to several types of resources for mentoring that doesn't directly involve financing, but that can lead to funding through contacts and programs. Some examples are:

Incubators: These are support networks that offer education and mentorship to entrepreneurs who want a good grounding before launching a venture. The International Business Innovation Association is a nonprofit organization that helps mentor and support entrepreneurs by connecting them with incubators, accelerators, coworking spaces and other organizations.
Small Business Development Centers (SBDC): SBDCs are funded in part by the Small Business Administration (SBA) in conjunction with universities and state economic development agencies. SBDCs offer small-business owners free consulting on many topics, including business plan development, financials, manufacturing and many more.
SCORE: Another SBA partner, SCORE is America's largest provider of volunteer business mentors. With more than 300 chapters and 10,000 volunteers, SCORE make mentoring available through a simple application process. Like the SBDCs, SCORE can help business owners with business plan preparation, finances, marketing and other challenges.

Originally published Jan. 25, 2018.

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Contemporary Cash Flow Management Tips for Startups

Posted: 16 Jun 2022 09:00 PM PDT

Running a startup can be difficult, especially regarding cash flow management. You need to ensure that you have enough business capital to cover your expenses, but you don’t want to tie up all your money in inventory or accounts receivable.

The reality is that many startups fail due to poor cash flow management. To avoid becoming a statistic, you must be proactive about your cash flow.

Here are some tips for contemporary cash flow management for startups, including invoice financing through a factoring company.

Understand your cash flow

As a startup, one of the most important things you can do is keep track of your cash flow. This means understanding where your money is coming from and where it’s going.

It’s essential to track your income and expenses regularly. This will help you see where your money is going and what areas you may need to cut back on. Working with a financial advisor who can help you understand your options and ensure you’re making the best decisions for your business is also essential.

Take These 5 Steps to Establish Financial Well-Being as an Entrepreneur

Have a solid business plan with realistic goals and timelines

Any successful startup knows that having a solid business plan is essential for attracting investors and staying on track. However, it’s not enough to have a good plan; it also needs to be realistic. That’s where cash flow management comes in. By carefully tracking your income and expenses, you can ensure that your plan is achievable and that your business can weather any unexpected bumps in the road. Additionally, by setting realistic goals and time lines, you can avoid putting unnecessary strain on your team. So if you want your startup to succeed, make sure you have a solid business plan — and don’t forget to keep an eye on your cash flow.

Create a budget and stick to it

Sticking to a budget may seem daunting, but it’s surprisingly easy if you break it down into simple steps.

First, look at your projected revenue and expenses for the coming year. Once you have a clear picture of your cash flow, you can start to allocate funds accordingly. Make sure you include both onetime and recurring costs in your calculations.

Next, start tracking your actual expenses against your budget. This will help you identify areas where you’re overspending or underspending. If you’re consistently overspending in certain areas, you may need to adjust your budget accordingly.

Finally, review your budget regularly and make any necessary changes. As your business grows and changes, so will your cash flow needs.

By staying on top of your budget, you can ensure that you always have the funds you need to keep your business running smoothly.

Common Mistakes Entrepreneurs Make in Their Business Journey

Invest in technology that will help you automate financial processes

In the early stages of a business, keeping track of expenses and revenues can be challenging. This is where investing in technology can help. Automating financial processes can save you time and increase efficiency.

Many software programs can help you track your cash flow, manage invoices and make payments. Using one of these programs can free up your time to focus on other aspects of your business.

In addition, automating financial processes can help you avoid costly mistakes.

Having a clear picture of your finances allows you to make sound decisions about allocating your resources.

Keep an eye on your competition and price products or services correctly

As a startup, keeping a close eye on your competition is essential. By understanding what they’re doing and how they’re pricing their products and services, you can make sure you’re positioning yourself correctly in the market.

Additionally, you must ensure you’re pricing your products and services correctly. If you’re too high, you’ll struggle to attract customers; if you’re too low, you won’t be able to make a profit.

By keeping an eye on your competition and ensuring your prices are in line with the market, you can ensure that your startup is on the right track.

Consider invoice factoring to cover outstanding invoices

Also known as accounts receivable financing, invoice factoring is one cash flow management option that can be particularly helpful for startups. Invoice factoring allows businesses to sell their invoices to an invoice factoring company in exchange for immediate payment, typically at a discount.

Invoice factoring services can provide businesses with much-needed funds to help them cover expenses and keep their operations running smoothly. It is an excellent alternative to sourcing business loans when you need immediate cash.

In addition, an invoice factoring service can help large and small business owners free up some of their working capital for other purposes such as investment or expansion.

Because the factoring company assumes the risk of nonpayment, invoice factoring can be a practical option for businesses with many unpaid invoices.

5 Questions Every Lender Will Ask You About Your Startup.

Find the best factoring company

If you’re considering invoice factoring for your startup, shop around and compare rates from different invoice factoring companies. Factoring companies typically charge a factoring fee for their services, so it’s crucial to find one that offers competitive rates.

By taking the time to understand your options and find the best deal, you can ensure that invoice factoring is a helpful, not harmful, solution for your startup.

There are many cash flow management techniques that can be helpful for startups. By creating a budget, investing in technology, and keeping an eye on your competition, you can ensure that your startup has the funds it needs to succeed. Additionally, invoice factoring through a factoring company can be a valuable tool for managing cash flow and freeing up working capital. By using these techniques, you can set your startup up for success.

Verizon Small Business Digital Ready: A free resource for grants, basic business skills, the latest digital technology and more.

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Starting a Business? You Need to Research Your Number One Asset

Posted: 16 Jun 2022 09:00 PM PDT

Your successful business model might take the form of a side hustle or full-time freelance work. Perhaps you've decided to invest in a franchise, or you've created an app for today's hot on-demand marketplace. There are lots of options, and no doubt you've given your choice of business and business model lots of thought. But how much thought have you given to the common denominator to all these entrepreneurial models? You!

In launching your startup enterprise, you must examine the single most important factor in your eventual success or failure (yourself!) just as thoroughly you examine your options, opportunities and risks.

I will go so far to say that your assessment of your own capabilities and limitations should be just as thorough as your evaluation of such business fundamentals as market demand, startup costs, access to financing, competitive landscape, etc.

Not only can a thorough self-assessment help you decide the type of business or business model to launch, it will contribute to your eventual success.

Here's an example: Say you're an idea person but you have trouble implementing your great ideas. This self-knowledge will help you plan accordingly by compensating for this tendency, for instance, by partnering with someone with strong execution skills or working with a mentor or professional coach to focus on strengthening your own implementation skills.

StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here

Using assessments for business success

As a coach of both established entrepreneurs and startups, I've found that personality profile and assessment tools are the most efficient and effective way for my entrepreneurial clients to gain the self-awareness they need to pave the way for success.

Used skillfully, assessments help you better understand your own personality, especially those traits most likely to impact your success as an entrepreneur, such as your communication style, how you make decisions, your capacity for dealing with conflict and change, and your preferred work style.

This self-knowledge will help you:

Leverage your own strengths for the maximum benefit of your business,
Identify weaknesses and areas where you need to invest in your own growth and development, and
Determine where and when you need to tap others to complement your strengths and weaknesses.

Assessment feedback also provides a foundation for setting meaningful goals and designing effective action plans for you and your business.

Self-knowledge helps you build strong business relationships

One area where assessments can be particularly helpful for entrepreneurs is in understanding and developing their communication and relational skills.

Both skills will be critical when you set about creating partnerships, building a supply chain, developing marketing opportunities, putting together a team of employees, and more. Each of these areas depends on strong relationships, which is why so many entrepreneurs point to their relationships as the building blocks of their business success.

There are many personality profile and assessment tools on the market. Let's take a look at two respected assessment tools that you can use to gain a clearer picture of the assets you bring to your business venture and the areas you may need to strengthen or supplement.

Myers-Briggs: Learn your personality type

The Myers-Briggs Type Indicator (MBTI) is a self-report questionnaire that reveals both your personality type (there are 16 possibilities) and how you prefer to do things. With this knowledge in hand, you will learn to recognize patterns, gain confidence and learn how best to present your ideas.

Here's an example: Your Myers-Briggs type might indicate that you like to talk to others when gathering information, that you love to do research, that you tend to make decisions based on gut instinct or feelings, and that you are most comfortable when things have been decided or resolved, rather than left up in the air.

These traits suggest that you might be someone who doesn't know when to stop researching and as a consequence has trouble setting realistic timelines or meeting the timelines you quote to your customers. Unresolved, these are both issues that will harm your customer service, your reputation and ultimately the success of your business venture. However, if you are aware of these characteristics, you can make adjustments so they don't negatively impact your business.

DISC: Understand your behavioral style

The DISC assessment will give you detailed feedback about your natural and adapted ways of behaving in work and life situations. DISC identifies four behavioral styles: dominance (how you see the picture and your level of drive); influence (how you engage with people); steadiness (your pace and consistency of engagement); and conscientiousness (how you approach action).

Your score in each area will help you understand your strengths and weaknesses in business and even predict how you will behave in given scenarios. For instance, if you score low in conscientiousness, you may be more comfortable with the brainstorming stage of developing your business plan than with the implementation stage. That's important information that you will need if your business venture is to succeed.

Get help when you need it

Of course, self-knowledge only gets you partway to where you need to be. You may need or want to partner with a mentor or a professional coach to assist you in leveraging the information gained from an assessment to benefit you and your startup business.

I urge you to take advantage of these powerful tools. Time and again, I have seen profile and assessment tools make an outsized impact on my clients' professional and business success. I can't emphasize enough the importance of self-knowledge in your startup success.

The landscape of entrepreneurship is littered with examples of amazing business startup ideas that failed simply because the entrepreneur behind them overlooked this critical step. Having a clear picture of your strengths, weaknesses and areas where you need to grow will help you avoid this fate.

Remember, you are the common denominator in your entrepreneurial venture. Be sure that you know you just as well as you know your business!

Originally published March 3, 2021.

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When Disaster Strikes, You Can Count on Dell

Posted: 16 Jun 2022 09:00 PM PDT

For SMB to mid-market to the enterprise, agility is key. It's how you win in today's competitive environment. It's also why so many businesses are looking to the cloud for backup and recovery of business-critical data, workloads and systems.

Cloud disaster recovery (DR) enables IT admins to back up data and applications to a secure off-premises location, providing off-site protection that enables virtual machines to quickly be brought up and running again in minutes in the case of a disaster – minimizing downtime and keeping business up and running. In fact, Dell EMC data protection reduces time to recover in the event of a disaster by up to 85%.

TechBytes: Work From Anywhere But Make Sure It's Secure (Episode 2)

For organizations that want to protect their VMware workloads, the Dell EMC Data Protection offering for VMware Cloud on AWS provides an extremely simple disaster recovery solution for workloads running on VMware Cloud on AWS. The DR solution, utilizing VMware Cloud on AWS, allows organizations to save VM images to Amazon S3 storage. Selected VM images can be recovered on demand to VMware Cloud on AWS in case of a disaster event, rather than recovering your entire VM environment at once. This solution offers business continuity, allowing you to continue operations in your own environment from a copy in VMware Cloud on AWS. This solution also requires Cloud DR Server running during on-going protection.

Learn more about the benefits of cloud DR and how it works by clicking below:

Dell Cloud DR white paper

StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here

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WJR Business Beat: Marquette Is a Michigan Tech and Startup Hub (Episode 426)

Posted: 16 Jun 2022 07:29 AM PDT

On today’s Business Beat, Jeff talks with Joe Thiel of Innovate Marquette, who explains why Marquette, Michigan, is a hot spot in the tech and startup scene.

Tune in below to learn more about Innovate Marquette:

Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE.

Are you an entrepreneur with a great story to share? If so, contact us at editor@startupnation.com and we'll feature you on an upcoming segment of the WJR Business Beat!

Good morning, Paul! There’s a center of innovation emerging that is on the radar screens of those in the know with respect to the tech and startup space. But a deeper look makes clear why this is so. I had a chance to interview the CEO of Innovate Marquette SmartZone, Joe Thiel, who explained how and why the city of Marquette, Michigan, is now a hot spot in the tech and startup scene.

The Innovate Marquette program was founded in 2015 as part of the Michigan Economic Development Corporation's focus on fostering entrepreneurship and business growth in the state. The cool thing about the Marquette program is that it covers the entire business continuum from idea to scale through its incubator accelerator combined program.

Joe, first tell us about the incubator program.

"So basically if you’re an entrepreneur, whether you’re a Main Street business, low technical tech cottage industry, high-tech scalable or product idea, we have all the resources in one building here to be able to satisfy your needs and get you through that process. "And the first phase of that really is identifying what the business is and what it does. So you have your mission, vision-centric considerations to your launch. You want to start doing some customer discovery early on and really identify what your MVP is going to be. Why is your business unique? Where do you fit in the marketplace, what your basic competition is and then can you protect your ideas."

And then for those companies successful in getting past the incubator phase and then moving on to the accelerator program, Joe, tell us about that part of the program.

"Once you make it into the accelerator, I’ve got my idea and I know what I want to do, and I know where I’m at in the market. Now I got to get everybody on board with me to scale it up and get out in the marketplace and generate revenue as fast as possible. Now, what’s my capital planning and what’s my partnership landscape look like, what’s my additional IP that I may be able to capture through partnerships, and then designing and developing the product, if it’s a product-based idea, to then be efficient enough to scale at some point."

Sound cool? You bet it does. To learn more, go to: innovatemarquette.org.

I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.

StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here

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7 Steps to Getting the Best Price When Selling Your Business

Posted: 16 Jun 2022 07:00 AM PDT

You may think that selling a business is just like selling a house: identify a buyer, support your price with comparable sales, fill out some paperwork, wire the funds and your deal is closed.

Unfortunately, selling a business isn't quite that simple.

A house is a tangible asset that's used for a very specific purpose: You live in it. A business, in contrast, is a complicated asset with tangible and intangible characteristics that are utilized to create future cash flow. Different assets require different processes.

The mergers and acquisitions process is designed to attract multiple buyers, creating "deal heat" and competition that will drive the price and terms. This process works so well that it's been used for centuries by investment bankers around the world. However, if you don't understand and engage in this process properly, you risk the possibility of selling your business at a discount, with unfavorable terms or, worse, never selling your business.

An Entrepreneur's Guide to Selling Your Company

To generate the highest price for your business, you'll want to follow this proven, seven-step process:

Define the objectives for the sale and create marketing documents. In this first step, objectives for the sale are defined, and appropriate, qualified buyers are identified. Marketing documents are created that relay the value of your business to potential buyers, including a Confidential Information Memorandum (CIM), sometimes referred to as the Offering Memorandum (OM). This robust document relays in-depth information about your company's financials, operations, products and services. From your CIM, a Confidential Business Profile (CBP), often referred to as an Executive Summary or Teaser, is written.

Start the auction process. The CBP is distributed to your pool of buyers. Its purpose is to drive interested buyers toward signing a Non-Disclosure Agreement (NDA) or Confidentiality Agreement (CA) and requesting the full details in your CIM. Interested buyers are invited to a virtual data room to begin their preliminary due diligence and follow-up calls are scheduled to clear up any questions. Buyer interest is presented to you in a letter called an Indication of Interest (IOI). This is a nonbinding agreement that communicates a buyer's interest in purchasing your business. It provides guidance as to the investor's price and general points of the deal, such as the deal's structure, financing, time frame to completion, any necessary due diligence items, and owner or management retention plans.
Prepare for site visits and management meetings. As the IOIs are analyzed, site visits or management meetings are scheduled so selected buyers can meet you and your key management team, which also allows you to gather additional information about the buyers' intentions.
Call for offers. Offers are relayed in a Letter of Intent (LOI), which outlines fundamental terms of a deal, including price, deal structure, any contingencies (such as adherence to financial projections), a net working capital target, escrow expectations, deal funding, a projected closing and the exclusivity period for due diligence.
Negotiate and execute the LOI. All offers are reviewed and the details are negotiated, including the price, deal structure, terms and conditions, forms of payment and transition period. A tax analysis is performed for each offer. Once the offers have been evaluated, you'll sign the winning LOI, which signals exclusivity to the buyer, who will then proceed with the due diligence phase.
Complete the final due diligence. The buyer generally will hire a third-party accounting firm to perform due diligence to substantiate the accuracy and sustainability of your company's historical earnings and future cash flow projections. The due diligence review is comprehensive: in addition to the accounting firm's financial review, specialists may be brought in to review property matters, personnel, legal issues, intellectual property, insurance requirements, government regulations, general corporate matters, and environmental compliance.
Negotiate the legal agreements and close. Your deal will be closed and memorialized with a Definitive Purchase Agreement (DPA), which is binding and supersedes all previous discussions and documents, including the Indication of Interest, if received, and the LOI. The DPA will include a Warranties, Representation and Indemnification (WRI) section. An M&A attorney will review and help negotiate all parts of the agreement. Indemnification Clauses, as part of the WRI, support the warranties and representations; they stipulate how a buyer will be compensated in the event of a breach of a seller's representations and warranties resulting in a loss to the buyer.

This process is complex, and issues will inevitably arise for both you and the buyer. But if done properly and with advisement, you can meet all of your objectives and enjoy the successful sale of your business.

StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here.

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Why I Would Rather Be Guided than Driven

Posted: 15 Jun 2022 09:00 PM PDT

When I was a young businessman, chasing possibilities didn't seem like a bug of the system, but a feature. I was wide open, pedal to the floor, going after new business ideas and quickly shifting directions like a hockey player skating down the ice with the time about to expire. Which, by the way, was part of my identity back in the day.

I was an entrepreneur. One of these directions, or maybe several of them, would hit pay dirt. It didn't particularly matter to me which of them did. That was my idea of what an entrepreneur is—someone who sees openings, grabs them, monetizes them, then moves on to the next big thing.

But eventually, I came to a crisis point. I experienced a couple of panic attacks, seemingly out of nowhere. My inner life was in chaos, yet somehow I was the last to know—my body got the message to me through these two terrible experiences that felt like heart attacks.

It was time to take stock of my life. Over time, and through facing up to certain hard truths for the first time, I came to realize I was a driven individual. The panic attacks were my body getting an urgent message through to my heart and soul: This path wasn't sustainable. It was killing me.

I didn't want to be driven anymore. I did a lot of thinking about the right word, the one that described what I did want—and I came up with this one: guided. Here's why.

The driven life

If you google the word "driven," you'll find a lot of information about the habits of highly motivated individuals. Being driven is generally presented as a positive thing, the description of those who have a high energy to get things done.

Driven is one of those ambiguous words that can be used positively or negatively—like the word pride, for example. It's good to be proud of our children, or to take pride in our work. Yet pride is also listed as a sin! It's all about the nature of the pride, isn't it? Drivenness is similar. It's a positive or a negative depending on the driver.

The problem comes in how and why a person might be motivated. Not every goal or source of emotional drive is a healthy one. Some driver is pushing us to our limits in order to get certain things done. It could be a sense of competition. Or it could be some need to prove ourselves, or live up to someone's expectations. Perhaps for a few minutes or a few days, it's possible to experience a sense of accomplishment. But then the driven person starts feeling that pressure again.

Many driven people don't rest well. They don't care for their health as they should. Nor do they give enough thought to the people around them who are pulled along by this unrelenting course of rugged effort. Eventually, those with an unhealthy drive tend to burn out. They come to that point at which it's suddenly clear the goalposts are going to keep moving and the finish line will keep edging toward the horizon. Then something just cracks. They can't do it anymore.

Being driven is letting the wind blow our boat every which way. It's being powered and directed by that merciless outside gust of wind. When we're driven, it feels, at first, as if we're going somewhere; we're on the move, maybe even fast. But the hidden truth is that you're not the one setting the direction. In the end, you end up way off course. Lost. Confused.

Being driven is letting the wind blow our boat every which way.

I asked myself how I like to be treated when I'm going places. There might be some meeting I need to go to, but I'm not too excited about it. You could get me there, I suppose, by threatening me. You could use a high-pressure sales approach. You could try frightening me into going, because of what I might miss.

Maybe you'd be successful, but I don't really do well with that kind of pressure. I'd rather someone reason with me, tell me why the meeting's important, and give me good, solid encouragement that I should go because it's a very worthy meeting and I'll love what happens there. In other words, I don't want to be driven. I want to be guided.

The guided life

Let's go sailing. We talked about being driven by ill winds. The idea is that we're going somewhere, but we're being controlled by outside forces. That's being driven. Being guided is taking the initiative to bring a map—to adjust the sail and the rudder, to take up the oars, and to direct the vessel to a destination you've carefully chosen.

Driven people tend to be unaware of the drivers. They're slaves to unknown masters. But guided people decide their own direction. And what guides them? A sense of purpose. It's possible, of course, to be guided by an unworthy purpose. You might be planning to rob a bank, and you might take a thoughtful, well-organized, efficient course toward a successful robbery. Obviously, that's not what we're describing.

We all know there are healthy, worthy purposes. I believe everyone in the world has a purpose, and it's just the right fit for who we are—our talents, our temperaments, our values, and everything else about us. Finding and moving toward that ideal purpose is the surest formula for happiness and contentment. It's the exchange of my life and time for that which brings me the greatest joy and also makes the most positive difference in this world.

Being guided is taking the initiative to bring a map—to adjust the sail and the rudder, to take up the oars, and to direct the vessel to a destination you've carefully chosen.

In my case, I found that I wasn't on that path. My purpose was not to create x number of new businesses or make y dollars in profit. It was not to build a kingdom dedicated to my sense of ambition.

I know I've found my purpose for life. I'm guided by a deep and abiding passion for helping other people find their own unique purpose. It wasn't about me after all, in one sense, but about inspiring others. Yet ironically, because I've chosen this path and geared it to my gifts, it's actually a lot more about me than when I believed it was all about me. If that makes sense! The point is, I'm personally the happiest when I'm invested in the happiness of others. I know exactly what I want to do and how I want to do it, and each day is another mile in that direction.

Goals? They're still there, but they look and feel different. My life is organized in a disciplined and orderly way around shorter- and longer-term goals that are thoughtfully based on my life focus.

The journey begins

Unfortunately, you can't skip the parts of your life when the boat seems to be tossed about because that's where the journey really begins. You may be there right now. You have to face the "ill winds" that threaten to blow you off course.

But there's also no reason to be discouraged. All of this is fuel. These tougher times are the ones that help us grow the most. I'd never be where I am now if I hadn't struggled through my own crises. I had to see what it was like and how it felt to lead a purposeless life.

There is hope. Rest assured, you can find the purpose that will guide you if you're willing to seek it.

For more advice on being guided, you can purchase “Stop Chasing Squirrels” on Amazon via StartupNation below.

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This Angel Investor Shares 11 Tips for Entrepreneurs to Raise Smart Money

Posted: 15 Jun 2022 02:00 AM PDT

Often, I read articles offering tips for entrepreneurs that revolve around generic advice on getting started. However, what is often direly needed is how to appeal to investors and raise smart money — knowledge that is essential for fundraising and a master key to building, accelerating and scaling your new venture.

The investment platform I founded and run, VenturePole, is the investment partner of HealthInc, the health tech accelerator of Startupbootcamp, the biggest startup accelerator organization in Europe. As part of my role as a partner of HealthInc, I sit on the jury for the startup competition in which 20 finalists pitch their ventures, with 10 then selected to enter the program. The winners receive support, including an investment, to accelerate and scale their ventures. In my additional role as a mentor, I help these startups get investment-ready in the program.

LinkedIn co-founder Reid Hoffman once said, "Starting a company is like jumping off a cliff and assembling the plane on the way down."

In my opinion, jumping off the cliff is the easy part; assembling the plane before you crash into a million pieces is what keeps founders up at night.

As a founder and investor sitting on both sides of the table, I have consolidated my knowledge into the following tips for founders to raise smart money — funding from investors who can help you build your plane — which is one of the most beneficial things you can do for your company.

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11 tips to raise smart money for your new business

Be the know-it-all

Be the smartest person in the room when it comes to what you do. Whatever your product, technology and target market may be, it's vital to know the ins and outs.

Prepare to answer questions about all facets of your business. This means developing a thorough understanding of the problem you are solving, talking to potential customers, researching your competition and knowing your key metrics and financials like the back of your hand.

Be the learn-it-all

Underrepresented folks in entrepreneurship and venture capital, including women, people of color and LGBTQ individuals, are often led to believe we must be overqualified to start a business, join a VC firm or become an investor.

We don't. We just need to want to do it and be willing to learn along the way. Listen to constructive criticism, and learn from useful feedback, but always carry a dignified bearing. For example, remember to finish your point if you are interrupted during a pitch.

Keep it simple, stupid (KISS)

Investors receive a lot of pitch decks on a regular basis, but we spend on average about three minutes on the ones we actually open. Remember most investors are not experts in your field, so it is your job to get us to understand what you do. Investors can only start trusting you after we know what you will do with our money.

Physicist Richard Feynman said, "If you can't explain something in simple terms, you don't understand it."

Unless you are presenting to an audience who are experts in your domain, I implore founders to pitch in layman's terms and leave the technical jargon in the backup slides for the Q&A.

Keep it short

When investors listen to pitches, they are oftentimes back to back (for example, in a startup competition). If you're lucky, you have about 10 minutes before we zone out. In my experience, investors' attention spans wane considerably fast, so aim to pique our interest in the first three minutes of your pitch.

Hone your pitching script to get to the point quickly, preferably with little jargon and a wow factor.

I use separate scripts for one-minute, three-minute, five-minute and 10-minute pitches; I then save them in the cloud for fine-tuning any time I have an idea.

Franklin D. Roosevelt's advice resonates here: "Be sincere, be brief, be seated."

Warm introductions

Multiple studies have found informal and formal networks are major sources of deal flow for investors, meaning we look at startups referred to us by someone we know.

In contrast, cold emails from founders we don't have any connections with often get lost in the black hole of our inbox. So, try to get a warm introduction to help you get your foot in the door whenever possible, and follow the next tip to build your network.

Put yourself out there

I am an introvert with Asperger's and relish alone time as a researcher, programmer, poet and pianist — perhaps too well.

While you may be resistant to attend yet another networking event (either virtual or in person), a big part of being a startup founder is having a commanding presence; you have to believe that you have every right to succeed — and then go out and do it.

Apply to competitions and accelerators, update your LinkedIn and other professional profiles and bring your business cards to events and functions, especially if you're in a more conventional industry.

Be a leader

In 2018, I started building what became VenturePole. I recruited two top-caliber experts as co-founders, but they left for different reasons during a critical time. Later on, down the road, I had to dismiss new co-founders who proved unsuitable for the job. These experiences and difficult decisions took a heavy toll on me then, but looking back, there was always a silver lining in the form of a valuable lesson.

Entrepreneurship is everything but sunshine and lollipops: expect a brutal roller coaster ride, learning, reflecting and cultivating your skills as a leader. Stay in the know and up-to-date on best practices for leadership and management.

Use those jazz hands

The top-viewed TED talks have double the hand gestures the least-viewed do, at 465 of them in just 18 minutes. Hand gestures are a signal to your audience that you are enthusiastic about your topic and that your presentation is lively and interesting. Using those jazz hands goes a long way in perfecting an engaging pitch!

Be fully committed

I poured time and money into VenturePole from the get-go and did not have a plan B on the back burner. As an investor, I love to see founders have skin in the game. A successful business is rarely built part-time, and fundraising alone can be a full-time job. You are more persuasive if you commit fully to your role as founder.

Be authentic

Being comfortable in your own skin gives you a sense of style and poise. Early-stage investors bet on the jockey (you) more than the horse (your venture), which is why over 95% of VCs see the management or founding team as a critical factor in their investment decisions. Showing you're human also makes you seem more authentic, so don't fret when you make a mistake in your pitch.

Persist

When I started raising the seed round for VenturePole, I was rejected almost 70 times before securing our first investment. It takes grit and spunk to get back at it every morning after fighting floods of self-doubt and the temptation to quit. Being rejected is the norm for most entrepreneurs. Have the humility to filter out constructive criticism, improve your business with this criticism and go back knocking on doors with poise.

Key takeaways on how to raise smart money

This is by no means an exhaustive list of tips and advice that will boost your chance of raising smart money, but I believe these are golden nuggets of statistics and lore you need in order to master the art and science of fundraising.

Now get out there, and build the business of your dreams!

Originally published June 1, 2021.

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The Future of Gigging: Could the Gig Economy Save the Startup Market?

Posted: 14 Jun 2022 09:00 PM PDT

The labor crisis has taken its toll on the startup market. After 47 million Americans quit their jobs in 2021, small business leaders are facing a national skill shortage.

With more competition than ever before, the post-pandemic online playing field is ripe with rivals, yet stagnant with team players. While the e-commerce industry may have grown by a third in just two years, a global labor shortage is sure to put many entrepreneurial ventures out of business if company leaders don't act fast.

Hiring Trends to Counteract Today's Staffing Challenges

This is where the gig economy comes into play. On the back of flexible working trends, a digital shift and a global lockdown, more Americans than ever before have become their own boss. Switching from that nine-to-five corporate routine to a remote alternative, 12% of the U.S. workforce joined the gig economy in 2020 alone.

In fact, experts predict that over half of corporate America could switch to a gig economy by 2027 as flexible working schedules become more desirable.

(Image Source: Mastercard Newsroom)

As we step into a flexible future, the gig economy is expected to be worth just under $500 billion by 2023.

The question is, can low-budget startup leaders benefit from its success? Read on as we delve deeper into the global labor crisis and divulge why the gig economy could be the answer to a small business owner's prayers.

What is gig work?

Defined by Investopedia, "the gig economy is based on flexible, temporary, or freelance jobs, often involving connecting with clients or customers through an online platform."

In a gig economy, participants are their own bosses. Instead of committing to just one position, gig workers manage multiple projects for multiple companies at the same time. Not only does this benefit the gig worker as they get full control over their hours, workloads and pay, but startup leaders who cannot afford to hire full-time workers, gain access to niche skill sets as and when required with no strings attached.

Gig work has become more popular since the onset of the global pandemic. After lockdown measures sent a hefty number of corporate America back to their home office, remote working trends have surfaced across the nation.

Not only do WFH employees say they are more productive in a flexible environment, but a whopping 99% of workers would choose to work remotely for the rest of their life if they could according to statistics from Buffer.

As the gig economy prospers in the wake of flexible working trends, many startup leaders are benefiting from its success. While the labor crisis may be in full swing, let's have a closer look at how the gig economy could save the day for small business owners.

How Freelancers Can Pivot in the Gig Economy

Addressing the labor crisis

Before we delve into the benefits of engaging with the gig economy as a small business owner, we must first address the reason why the startup market needs saving.

After COVID-19 caused significant havoc for America's labor force, nearly 50 million workers have since quit their jobs in search of a flexible work/life balance. In a surge of remote hiring, competition for talent continues to rise.

In response, the demand for professional, scientific and technical skills is at an all-time high, as business leaders struggle to keep up with growing industry competition and increased consumer demand.

Recruitment company SThree CEO Timo Lehne claims that a labor shortage could be the downfall for small competitors with less to offer potential talent.

"The fact there are fewer people available to cover the high demand specifically within white-collar expert STEM roles is becoming an immense problem for companies," he commented.

(Image Source: Investors Chronicle)

As you can see, human health and social work have seen the biggest skill gap rise, as industry vacancies peak at more than 200,000.

However, according to the Director of Hays, Paul Venables, a digital skill shortage could be the silent startup killer of the future as competitors continue to automate their processes.

“Most companies are looking to heavily improve the automation and digitization of their operations," he stated. "And, of course, the greater the degree of skills shortages, the more important and urgent it becomes to find automated ways of doing things as well."

Can startup leaders use gigging to address skill shortages?

The gig economy opens the startup market up to a global talent pool on an ad hoc basis. For new entrepreneurs looking to simply dip their toes into the playing field, here are some of the most rewarding benefits of hiring gig workers during a labor crisis.

A fast-tracked street to success

For startup leaders in desperate need of a certain skill set, the gig economy is a great way to fast-track the hiring process, especially if a business is looking for an employee on a freelance basis.

Most gig workers are experts in their field and manage a number of projects within their skill set at one time. Used to hopping from one gig to another, freelancers often need next to no training and are able to complete tasks with a quick turnover.

This can save startup leaders both time and money on training while providing them with a no-nonsense service, a perfect ROI strategy.

Widening the skill pool

In a highly competitive labor market, with a lack of talent to go around, it can be hard for smaller business leaders to stand out from the crowd during the hiring process.

In a gig economy, jobs are both flexible and remote, opening up the talent pool to a global audience for startup leaders. Therefore, business owners can hire experts from around the world, for a value-producing workforce that will rival industry giants.

No commitment

When starting a new venture, commitment can be a risk. Utilizing the gig economy gives a startup the chance to grow without the commitment and to cut back on cash when it comes to hiring full-time workers.

With a 20% fail rate in the first year alone, startups are learning to be more flexible. Hiring skilled workers on an ad hoc basis allows a business leader to improve one aspect of the company without cash-based strings attached, the perfect solution to a competitive post-pandemic labor market.

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5 Top Tips to Galvanize Small Business Growth

Posted: 14 Jun 2022 09:00 PM PDT

Economic and market instability over the last few years have left many small business owners stumped. What are the best strategies to not only survive this volatility but to thrive? Growing in a changing world requires an abundance of creativity, a willingness to try new ideas, and a sustained focus on the areas of business that will always matter. Incorporating growth strategies into your business as soon as possible will set your organization up for success in the long run.

While the market may be unpredictable, your ability to take charge of your business' trajectory is not. Try out these strategies to get started this year.

1. Take your customers or clients seriously.

As an expert in your field or in your business, it might sometimes feel like your customers or clients don't know what they want or how they want to receive it. This paradigm is shifting. Your potential customers are becoming savvier consumers every day. They have high expectations and if your business can't meet them, they'll head to the next business that can. That means you need to take their feedback seriously. Creating a genuine connection with your customer base means allowing them to participate in your company's story.

Always strive to do better for your customers. Show your community that their opinions matter. Understand what they like and don't like about your products, services, or customer experience. Try out the changes that they want to see. You'll know from the response whether to keep going down that path or jump to another strategy.

The Customer Is Always Right: Why Startups Should Pay Attention To CX Data

2. Continually refine your digital marketing strategy.

Use your metrics! They're not just something to look at every once in a while to calculate your ROI. They should be influencing your strategy month-to-month. As your audience grows and changes, so should your strategy. Understand where you're performing best and why. Then double down on that effort. Try to pinpoint why other strategies aren't working as well. Make changes or drop them altogether. With the speed of change in the online world, you don't have time to waste on strategies that aren't delivering.

Beyond your own metrics, best practices in digital marketing also change rapidly. Keep abreast of how changes impact what you're trying to accomplish. You don't want to be depending on the same old strategy only to see your sales slowly drop off. Keep an eye on your competitors and other major players in your industry. What are they doing that works? What are they doing that doesn't? Compare that to your own strategy, and make changes that make sense. Then do it all again next month. Pro tip: Find an expert digital marketer familiar with your industry and have them handle this for you.

3. Prioritize team development.

The efficacy of your team is often the key that allows your business to grow. If your team isn't communicating well or is unsatisfied with their work, you're less likely to make growth strategies work. Your team won't have the drive or collaborative skills to make the most of opportunities in a timely way. That's why it's important to invest time and resources into developing a team that works together well and is invested in your company's mission.

Make sure your team members know they are valued and highlight the impact they have on your business' success. Encourage autonomy, allowing your team members to take charge of their roles. This will demonstrate your trust in their capabilities. This gives them the confidence to do their best work. Finally, encourage clear, direct and frequent communication. With everyone on the same page, you'll be able to implement strategies with ease.

4. Streamline your workflows with a virtual assistant.

Make your business as efficient as possible by delegating to a virtual assistant. Consider all the time-wasting activities on your to-do list as a business owner—replying to emails, creating invoices and proposals, and managing your calendar. Now think about what your week would be like if you didn't have to do any of it yourself. These tedious activities take you away from the core of your business where your time is the most valuable. With the help of a virtual assistant, business owners are better able to focus on the big picture.

In addition to freeing up your schedule as a business owner, your virtual assistant can help you revamp your workflows so everything in your small business runs more efficiently. Most virtual assistants have experience helping small business owners run companies in a variety of industries. They will be able to review your current processes and suggest ways to improve. For example, they might set you up with a project management platform that turns out to be a game-changer for you and your team. Their main job is to make your life as a business owner easier while helping your business run with less personal effort.

Most Popular: The Benefits of Encouraging Creativity and Innovation in the Workplace

5. Innovate to differentiate.

Your business won't be able to achieve sustained growth with static strategies. That means you need to take the leap and try something new. From new sales strategies to revisioning your products and services, you need to continually optimize and differentiate your business in order to stay competitive in your market. That comes down to proposing creative ideas and analyzing whether they are likely to succeed. Brainstorming and research are equally important in this process. Encourage innovation within your team, but ask them to back up their suggestions with reliable metrics and facts.

Rather than passively watching your business evolve as you're focused on day-to-day work, take an intentional approach in that journey. Point your business in the direction that you see the most opportunity moving forward. Consider the trajectory of your industry. Where might it be in 10 years? How does your brand fit into that story? Get ahead of the curve by introducing smart, industry-pushing ideas now.

For many small business owners, meaningful growth might seem like a distant goal. It's something you'll eventually get to when things start to settle down. Unfortunately, waiting for calm or the perfect time will only set back your timeline and allow your business to miss out on opportunities. By running your business with a growth mindset and implementing strategies like the ones listed here, your business will be in the perfect position to end 2022 better than ever.

With the support of a virtual assistant and your team, you'll have the time and freedom to focus on your vision for your company and define a path to get there. Growth can be a long journey for small businesses, but keeping your business positioned for growth will help you get there. Best of luck making it happen this year!

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What About Mike? How to Handle a Weak Link on Your Payroll

Posted: 14 Jun 2022 09:00 PM PDT

Do you have a Mike? He's been by your side from the beginning. He's been incredibly loyal – someone you could count on. But now you're facing your new hyper-growth reality—and you know he's going to make a ton of mistakes as he learns lessons the hard way—inevitably stunting your company's growth in the process. Do you move him into an individual contributor role and bring in a more experienced person to lead the team? Do you try and coach him up or make the hard choice to let him go?

I bet this sounds familiar. I've seen some version of this play out with virtually every entrepreneurial client, friend, or peer I know. But I'm confident you have (or have had) one: someone who's been by your side for much of your journey, loyal and willing to do almost anything that's asked. They've been rewarded with promotions and responsibilities to the point where their titles are inflated and they're so far over their heads that they're at risk of imploding. And they're utterly exhausted.

It's one thing to recognize you have a Mike and acknowledge that they're holding you and your company back. It's another thing altogether to take the hard steps to do something about it! As you scale your business, there are steps you need to take in order to professionalize it. One of the main things holding your Mike back is often one of the reasons he was so great early on. They're a bootstrapper who isn't afraid to roll up their sleeves. They won't ask their team to do anything they won't do. But that's the thing—they never built a team. They struggle with delegation and tend to do things themselves. Truth be told, this is a common struggle for many entrepreneurs, too!

If you've promoted a Mike to a key role that he simply can't handle, something HAS to change. You're going to have to have some challenging conversations and you probably make some difficult decisions.

But there's not one right answer. Every situation is different. In some cases, Mike may be willing to take a step back and admit this isn't working, or maybe he volunteers to leave for a leadership role with a smaller company. In some cases, Mike may be coachable and can either stay in his existing role and grow into it, or take a lesser role and acquiesce to a more experienced leader while he hopes to grow into a future leader (whether for your company or for a future employer).

Unfortunately, sometimes Mike simply doesn't have a role going forward. He may be super important to you personally but has become a liability professionally. In the worst-case scenario, you lose your friend and former go-to guy because you just can't reconcile the needs of the business with the complicated emotions and egos at play.

Again, Mike doesn't necessarily have to go. In fact, in many cases, Mike can be moved into an individual contributor role and leverage his work ethic and history with the company. With Mike, like most of the characters I discuss in the book, how you handle the situation often depends on their personalities, your relationship with them, and the work that needs to get done.

The bottom line is that when you realize you have a Mike on your team, you're going to have to take action. Mike's in over his head, but you aren't—at least not yet. You don't have to sink with your legacy team!

This is hard work. No one promised it wouldn't be. But if you really think about it, deep down in your heart, you're probably thinking about someone (or someones?) on your team right now. They're probably very well-intentioned and have been there for you in the past. But unfortunately, they're holding you and the company back.

I like to shift the conversation from "What do we do with Mike?" to "What if we had a superstar instead of Mike?" Imagine you have someone in that role who has been where you want to go; someone who has previously doubled or tripled a company like yours; someone who has experience negotiating multimillion-dollar deals or scaling up operations or integrating multiple acquisitions.

I don't necessarily mind learning lessons the hard way, at times. That's actually how I learn best. But it's pretty damn amazing to have someone on your team who has been through the battles, who has already learned those lessons, and has the scars to prove it. You want to leverage those lessons learned and get there faster, stronger and more efficiently. There's no reason why we need to learn all of these lessons the hard way. This entrepreneurial stuff is tough enough already!

Challenging? Yes, but a necessary part of the process if you want to professionalize your team, scale your business, and take it to the proverbial next level. As my mom used to say, "If it were easy, everybody would do it."

"Who’s Your Mike? A No-Bullsh*t Guide to the People You’ll Meet on Your Entrepreneurial Journey" can be purchased via StartupNation.com below.

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RJ King of DBusiness on Promising Detroit Developments

Posted: 14 Jun 2022 08:14 AM PDT

Detroit has something other major cities in the world don't, DBusiness editor RJ King says on this episode of the “Inside Michigan Business” podcast: the ability to marry software with hardware.

Tune in below:

In this episode, RJ King talks with Jeff Sloan on topics such as:

The emerging mobility innovation district, headlined by the revamped Michigan Central Depot.
Developments that will take Detroit to the next level.
The need for high school curricula to be tailored to the trades and business.
What Detroit — and Michigan — have to do to build the next wave of talent.

For more, go to Inside Michigan Business.

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WJR Business Beat: The Threat of Cybersecurity Breaches Can Devastate (Episode 425)

Posted: 14 Jun 2022 07:56 AM PDT

On today’s Business Beat, Jeff talks about cybersecurity threats and their impact on U.S. small businesses.

Tune in below to hear the scary numbers:

Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE.

Are you an entrepreneur with a great story to share? If so, contact us at editor@startupnation.com and we'll feature you on an upcoming segment of the WJR Business Beat!

WJR Business Beat Transcript

Good morning, Paul!

Now, you know, it’s a killer for businesses these days, having to deal with cybersecurity issues. Isn’t there enough for entrepreneurs to have to worry about? Not only do small businesses have to focus on providing a solid line of defense against these threats, they now have to deal with added expenses relating to cybersecurity insurance. And boy, I’ll tell you, if you do get hit, Paul, it’s really time-consuming and costly to get things put back together, if you can at all. Because cybersecurity threats today can lead to catastrophic data breaches in which your business simply just can’t recover.

Cybersecurity company Surf Shark just released findings compiled from an 18-year study and it suggests that the United States is the most data-breached country globally. The U.S. breached accounts make up 15.4% of all breaches. Since 2004, U.S. Internet users have lost an average of 27 pieces of data in online breaches. Now, as we know, the worst data breaches include the theft of passwords. Even more concerning, the bad guys have been effective at stealing passwords that are associated with names and contact information as well. This gives them broad access to do more harm than just what’s at their fingertips.

Since the start of 2020, 2.2 billion accounts have been breached worldwide. Data shows that in the first quarter of 2022, 304 accounts were breached every single minute.

Now there is some good news to report, even though the U.S. is the most data-breached country in the world, we are taking action to protect ourselves and as a result, the trend in the U.S. is that the breach rate actually fell by 33% in the first quarter of 2022 when compared with the same period a year ago.

So look, if you’re a small business or frankly, even a big one, take action now to protect yourself and your company. This is for real. Make sure you have the proper technological defenses in place and get cybersecurity insurance on top of it.

I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.

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The Role of Culture in a Remote Work Setting

Posted: 13 Jun 2022 09:00 PM PDT

Having an almost entirely remote workforce is a relatively new concept for many business owners. People worked remotely before the pandemic, but COVID-19 lockdowns certainly introduced many more to the idea. Working from home is an excellent option for people with difficult commutes or health issues. However, startups may be finding it hard to establish workplace culture with hybrid and remote employees.

Entrepreneurs need to develop a sense of community at work. It's even more critical when everyone's working from home. What are some ways startups can create company culture? Here are some reasons you need to do it and ways to get started.

Why is company culture important?

People working for a business want to feel like they're doing something important. One of the reasons you created your startup might have been for this exact reason. This is where company culture comes into play.

Establishing ideals you would like to follow attracts people who share those thoughts. Once they're there, you have to encourage them to continue following through. Think about it — wouldn't you want to work for a company that values its employees and does what it set out to do? Without culture, the people who work for you will feel like they're just machine parts.

Company culture lets employees know what they can expect from you. It includes how you go about business and ways you encourage workers. This can mean things like:

Business mission statement
Communication
Values and ethics
Bonuses and rewards
Training and development

How you choose to treat those who work for you will make a big difference. Imagine working for a company with no goals and no interest in its employees. Maybe you've already been there and know how it felt. Good company culture will promote well-being and productivity. Research shows employee happiness can help businesses earn nearly 2% more and outperform their competitors.

5 Ways to Revamp Your Company's Culture

How culture has shifted with remote working options

Having fulfilled workers is very advantageous, but many companies are unsure how to do so. One survey showed that 46% of leaders are looking to improve employee satisfaction among those they manage. This is why developing a culture while working from home is crucial. It can help workers feel happier, more productive and satisfied.

In an interview with Wired, Chris Collins of Cornell University discussed how remote workers can feel disconnected from their workplace. He stated that work could feel "transactional" without any engagement for employees. Specifically, Collins related this to a high turnover rate in remote companies. One thing that may be the most interesting for new business owners is that culture might encourage loyalty from workers. If a job feels less like a task, people will feel encouraged to return.

Obviously, you don't have any coworkers at home to support you or be social with when working remotely. Human connection is something everyone needs to be happy. One-third of remote employees say they miss other people in the office, and more than 20% say they feel removed from the companies they work for. However, nearly 60% still want the option to work from home. To keep them happy, you need to find ways to communicate effectively and stay connected.

Company culture is vital for startups to stand out. It dictates how customers see you and how many employees choose to stay. Positive workers encourage more business and productivity. Raising your employee satisfaction in a remote setting will help you achieve all possible benefits.

Must-read: How to Staff a Strong Culture on a Shoestring Budget

Building culture while hybrid and remote

Creating a company culture with remote workers can indeed be challenging. Luckily, startups have many options available that can assist you in accomplishing your goals.

1. Use clear and quick communication.

This is important anywhere you work, but especially in a work-from-home environment. You won't be able to answer the questions of whoever walks into your office. Both hybrid and fully remote employees must know exactly what's going on. Better communication means you all can do your jobs effectively.

Encourage those who work with you to reach out if they're unsure about anything. Additionally, if you're not training them over a call, write out what they need to do as transparently as possible.

2. Encourage casual discussions.

Having fun chats during meetings will be good for you and your workers. You'll all feel more connected and supported. Ask them about any significant life updates. Did someone just move into a new living space? What's been the latest show or movie they watch all the time? What funny things have their pets or babies been doing? Making time for more informal talks can help employees at a distance feel a lot closer. Beyond working, you're genuinely getting to know each other.

3. Establish expectations.

Spelling out expectations is essential for startups. How often do you expect reports? Who do you require to come to different meetings? What kind of productivity and growth are you looking for? Expectations can be helpful for you and your employees. You'll know exactly what you want and they'll be able to deliver it. Setting goals also helps give workers a purpose — something driving them to perform. Be clear about what you require from them.

4. Gather employee resources.

Remote workers have very different needs. Working from home has its benefits, but it can also feel isolating. You may find that some employees are struggling with their mental health or work-life balance. Ask them to be transparent with you and figure out ways to help them. This might include:

More one-on-one or group calls
Articles about how to separate work and home
Employee resource groups
Mental health days

People want to feel like they matter to their workplace and to you. Showing that you're willing to help them when they need it can do this.

5. Understand mistakes will happen.

When you're starting a remote company, everyone there is learning together. There will be times when things don't go perfectly or someone messes up. Know that this is natural and reassure employees this isn't the end of the world. You may find software needing replacement or workers requiring more explicit guidelines. It's a learning process that will take time to develop.

6. Ask for feedback.

Something about your workflow that you didn't consider might be decreasing productivity. Not getting everything right when you first start is entirely understandable. That's where asking for employee feedback can provide a lot of insight. They'll know you care about their jobs and are making an effort to improve them. Being adaptable will be a fantastic skill for everyone involved in your business.

7. Celebrate milestones.

Remember, encouragement can be one of the biggest motivators. If someone on your team has done an exceptional job, shout them out and applaud what they've accomplished. As you start achieving your goals, make sure your workers know their diligence helped get you all there. This is one of the most important tips. Employees who work from home may not see the impact they're making. You can help them understand their contributions by celebrating their contributions.

Build culture in your remote startup

Startups have a considerable advantage over companies relatively new to remote work. You get to skip the transition stage and have everyone you hire ready to work from home. However, you should remember how essential it is to create and develop your company's culture. It will help you retain employees, raise profits, and instill an overall sense of community and satisfaction.

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Eliminating Friction is Bad for Business. Embrace A Dose of Good Friction Instead.

Posted: 13 Jun 2022 09:00 PM PDT

Employers and employees have seen the benefits of having a global workforce, both in terms of greater available pool of workers for employers, and more options of living anywhere. However, this has also led to employees having different expectations and greater optionality, resulting in the "Great Resignation."

The remedy? Make work-life easier with even greater benefits.

But these are just table stakes.

Instead, consider making your employees work harder by adding good friction in their work lives.

All friction is not created equal. There's bad friction, which should definitely be eliminated. And there's good friction, which creates more meaning, has a myriad of benefits, and should be protected like the rarest of employees.

Some things are worth fighting for

The frictionless approach is manifesting itself in even more ways.

The current leadership approach is to make managing teams as effortless as possible. Many companies rely on software to remove effort and add trackable metrics. That might sound like a good thing, but it's leading to employers ignoring personal differences and treating everyone like an identical work unit.

The corporate cookie-cutter slices off all the extracurricular activities and passions that make an employee attractive. And the value that these things could add is lost.

You end up with a workforce of similar-minded, similar-thinking employees who struggle to think beyond the perceived limits of the organization.

Conflicts are discouraged under the mistaken belief that they are bad for business. If any disputes arise, the HR department intervenes to ensure the offending behavior is nipped in the bud. This leads to a workforce that is too worried to disagree, speak up, or step on anyone else's toes. As a result, anything innovative or ground-breaking is self-censored before it has the opportunity to blossom.

Maybe this all comes from a confusion between conflict and disrespect. From our experience, the best ideas come from respectful disagreement. But whatever the reason, this form of friction-elimination is unhealthy for business.

From our experience, the best ideas come from respectful disagreement.

Instead healthy businesses encourage active disagreements to play out while creating a respectful and safe environment to harness the better outcomes from this interplay.

The benefits of good friction

It's commonly believed that depression leads to physical inactivity. But a study conducted by America's National Institute of Mental Health has shown that the correlation is the other way around. They discovered that people's physical activity affected their mood, whereas their mood didn't change their level of exercise. The less active someone is, the more chance they have of experiencing sadness.

Humans are designed to be active — both physically and mentally. And the less active we become, the more it will manifest itself in our mental states.

So less work doesn't always lead to healthier lives. Often good friction from purposeful work gives us the physical, social and mental stimulation we need to stay healthy. Without it, we don't function properly as human beings.

The key for businesses

As employers and senior leaders paint bold visions and set higher goals for their companies and teams, employees should also have a hand in leading the charge. Give your employees more responsibility to increase belonging, engagement, and meaning.

Task them with leading more strategic initiatives and have them present their ideas to larger audiences and in higher table stakes environments, while supporting them with resources and recognition. Encourage them to take on additional cross-functional leadership opportunities across the organization.

Enlist employees to co-create an environment that fosters a stronger culture- whether it's participating in employee resource groups or planning a team building off-site.

And don't forget to challenge their bosses to become better mentors for them and to champion them to stretch themselves.

The key for businesses is to add “purposeful and rewarding” work to replace less meaningful tasks.

"Friction" can be purchased via StartupNation.com below.

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The post Eliminating Friction is Bad for Business. Embrace A Dose of Good Friction Instead. appeared first on StartupNation.

Friday, June 17, 2022

StartupNation

Mentoring is more than advice

Related: How to Find the Right Business Mentor

Investors as mentors

Specialized investors as mentors

Non-funding mentorship resources

Sign Up: Receive the StartupNation newsletter!

Understand your cash flow

Have a solid business plan with realistic goals and timelines

Create a budget and stick to it

Invest in technology that will help you automate financial processes

Keep an eye on your competition and price products or services correctly

Consider invoice factoring to cover outstanding invoices

Find the best factoring company

Using assessments for business success

Self-knowledge helps you build strong business relationships

Get help when you need it

Tune in below to learn more about Innovate Marquette:

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The driven life

The guided life

The journey begins

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11 tips to raise smart money for your new business

Be the know-it-all

Be the learn-it-all

Keep it simple, stupid (KISS)

Keep it short

Warm introductions

Put yourself out there

Be a leader

Use those jazz hands

Be fully committed

Be authentic

Persist

Key takeaways on how to raise smart money

What is gig work?

Addressing the labor crisis

Can startup leaders use gigging to address skill shortages?

A fast-tracked street to success

Widening the skill pool

No commitment

1. Take your customers or clients seriously.

2. Continually refine your digital marketing strategy.

3. Prioritize team development.

4. Streamline your workflows with a virtual assistant.

5. Innovate to differentiate.

Tune in below:

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Tune in below to hear the scary numbers:

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Why is company culture important?

How culture has shifted with remote working options

Building culture while hybrid and remote

1. Use clear and quick communication.

2. Encourage casual discussions.

3. Establish expectations.

4. Gather employee resources.

5. Understand mistakes will happen.

6. Ask for feedback.

7. Celebrate milestones.

Build culture in your remote startup

Some things are worth fighting for

The benefits of good friction

The key for businesses

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