StartupNation

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• WJR Business Beat: New Federal Funding Program For Small Business Coming Soon (Episode 420)
• Ara Topouzian of Michigan Venture Capital Association on the State of VC
• Build the Damn Thing: The 4 Steps to Defining Your Idea
• Starting Up in Slow Times: How to Prepare for a Recession
• We Implemented a True, 4-Day Workweek: How It’s Going

WJR Business Beat: New Federal Funding Program For Small Business Coming Soon (Episode 420) Posted: 07 Jun 2022 08:44 AM PDT On today’s Business Beat, Jeff Sloan shares information on how small businesses can get part of $10 billion in federal aid earmarked to broaden the recovery from the pandemic. Tune in below to learn more:   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 Jeff Sloan: Good morning, Paul! we’ve got some important and timely news for U.S. small businesses. Funds for lending or investment into small businesses. As part of the State Small Business Credit Initiative now being made available to five states and Michigan is one of those first five states. In total, the U.S. will provide $10 billion in aid in an attempt to spur business in disadvantaged communities and broaden the recovery from the pandemic. Funding will come from the $1.9-trillion federal COVID-19 aid package approved last year. Now, the way this program works is that the funding is made available to the states and the states then route the funding to the institutions who will lend or invest the capital into the small businesses that they approve. Inc. reporter Melissa Angell just published an article on Inc.com about the first installment of funds from this program being made available now. Melissa? Melissa Angell: So this program has been around since 2010, but here’s the interesting thing. So last year, last March specifically, when President Biden had signed that $1.9-trillion stimulus package, that act had reauthorized the program, the State Small Business Credit Initiative. So that basically authorizes $10 billion in funding, and we’re starting to see some of that funding come out now. And so this is an opportunity for small businesses basically to have access to capital. And the funding is dispersed to different states. Basically, they apply and they have to map out these plans and they submit these plans to Treasury of how they plan to use these funds. Jeff: Thank you, Melissa. If you’re a small business looking for financial help, to learn more, go to the U.S. Treasury website and look for information relating to the State Small Business Credit Initiative. 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. Verizon Small Business Digital Ready: A free resource for grants, basic business skills, the latest digital technology and more. The post WJR Business Beat: New Federal Funding Program For Small Business Coming Soon (Episode 420) appeared first on StartupNation.

Ara Topouzian of Michigan Venture Capital Association on the State of VC Posted: 07 Jun 2022 07:30 AM PDT On this episode of “Inside Michigan Business,” Michigan Venture Capital Association Executive Director Ara Topouzian talks with host Jeff Sloan about the VC capital ecosystem in the state and its evolution. Tune in below:   In this episode, Ara Topouzian talks with Jeff Sloan on topics such as: The MVCA’s efforts to advocate for talent and growth. The what and how of venture capital. The importance of storytelling. Why VC expansion is critical to Michigan. Ara Topouzian For more, go to Inside Michigan Business. StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here   The post Ara Topouzian of Michigan Venture Capital Association on the State of VC appeared first on StartupNation.

Build the Damn Thing: The 4 Steps to Defining Your Idea Posted: 06 Jun 2022 09:00 PM PDT The following is an excerpt on leadership from “Build the Damn Thing: How to Start a Successful Business If You’re Not a Rich White Guy” by Kathryn Finney. Copyright 2022 by Portfolio.    Don't wait for the system to let you in—break down the door and build your damn thing. For all the Builders striving to build their businesses in a world that has overlooked and underestimated them: This is the essential guide to knowing, breaking, remaking and building your own rules of entrepreneurship in a startup and investing world designed for and by the "Entitleds." The 4 steps to defining your idea 1. Defining the pain point Is your idea a problem looking for a solution or a solution looking for a problem? A problem is something that causes a person annoyance. In the startup world, such a problem is called a "pain point." Like the term "pain in the ass," I'm not talking about literal pain, but more figurative pain. Is your idea a solution to someone's pain in their ass? Tool: Use Twitter to find out if your idea is a pain point A quick way to find out whether your idea is truly solving a problem is to just do a quick search of Twitter. Why Twitter? Because the shorthand nature of Twitter has made it the de facto customer service hotline of the world. If you see lots of people complaining about something, you can be confident that others have this painful problem. Next, you'll look at how big the problem is. 2. Finding the scale of the problem Is this a problem everyone has or just me? Maybe you have an awesome idea to solve a huge problem, but it's only a problem for you or a few people in your circle. Finding the scale of the problem, and, in turn, the number of people who might be interested in buying your solution, is a crucial part of starting your company (we'll dive deeper into this in the next step). If it's not scalable, you won't be able to find enough customers to make a profit. This is why your early online research is crucial for determining whether you have a real shot at turning your idea into a profitable company. In business, you either go BIG or you go broke. Using the information you gathered from your Twitter searches, try to get even more information on the scale of the problem you are planning to solve by using the Google Trends tool (https://trends.google.com) to see how many people are searching for information on terms associated with your idea. The tool, based on a scale of 0 (little data/no interest, e.g., "Kim Kordashian") to 100 (high interest/peak popularity, e.g., "Kim Kardashian"), shows how popular a term is relative to all the other searches in a given geographic area. So what's a good baseline to indicate the strength of interest in your idea? I use at least three incidences of a popularity of at least 25 over the past six months on the Google Trends chart. Sign Up: Receive the StartupNation newsletter! 3. Will people pay for your solution? How is it currently solved, and do people pay for the solution? There are times when the pain point and scale of the problem are clear, yet people still don't want to pay for a potential solution. For example: public transportation in certain urban areas. Sure, having good public transit may reduce traffic and alleviate climate concerns, but in carcentric cities, people may not see the utility of the public option because they all have private means of transportation. The only way you can make money as a Builder is if you find a painful enough problem that many people are willing to pay for your solution. The question of whether people will pay for a solution is tricky for Builders, mostly because until recently we weren't allowed to participate in a market-based economy. The value of our businesses, our wages, even our ability to sell products were suppressed by external forces. It's hard to compete in the larger market when the cost of raw materials and even the valuation of property is set by society's perception of our value based on our race. For example, homeownership is one of the primary paths to wealth creation in the United States. However, homes in America owned by Black people are often appraised at a lower valuation than homes owned by white people in the same neighborhood. The lower appraisals have resulted in an estimated $156 billion cumulative losses for Black homeowners. What this challenge, what at Genius Guild we define as a market inefficiency (a true understatement), means to you as a Builder is that you will need to do even more research to ensure you have data to counteract any biased perceptions that might impact your ability to solve the problem. For example, while in the incubator-where-ideas-go-to-die, I spent hours at the business library in New York gathering data from industry sources on Black hair. I created a document that had every industry stat available on Black hair, which I kept with me when meeting with any potential investor. Doing this extra research is crucial for your company's success. You need to be prepared to rebut the Entitleds' prejudices and fill in the gaps in their knowledge when they try to dismiss your idea (which they will). 4. Getting repeatable customers How often will they pay for it? Most successful startups focus on a repeatable problem, or a pain point that people need a solution to more than once. The more frequently people experience a certain pain point, the more often they will need to buy your solution and the more money you will make per customer. If you create a solution people only need for a short time, make sure you've found a problem they will pay a high premium for or that there are enough customers to maintain a steady flow of business. For example, take the need for breastfeeding equipment. On the individual level, solving the problem of helping mothers pump breast milk for later use is only repeatable for a relatively short time. However, there are several million babies born each year, and many women have multiple children, so the large scale of the problem offsets its limited customer repeatability. My family's idea for modern urban dry cleaners/laundromat wasn't a bad idea. The laundromat business hadn't changed in fifty years, even though technology available to owners has changed quite a bit. New technologies like using cards instead of coins and front-loading machines that reduce water usage were increasing profit margins for laundromat owners. While technically having clean clothing isn't a "need" like water or food, it's definitely pretty basic on Maslow's pyramid. At some point, everyone has to clean their clothing (scale) and at a fairly weekly or biweekly frequency (repeatable customer). Some can purchase a washer and dryer, but it might not be possible structurally if you live in an apartment (pain point). Or maybe you just hate doing laundry like most of us do (scale). There are around 29,500 laundromats in the United States, and these small businesses contribute nearly $5 billion to the U.S. economy. “Build the Damn Thing: How to Start a Successful Business If You’re Not a Rich White Guy” can be purchased via StartupNation.com below.   StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here.   The post Build the Damn Thing: The 4 Steps to Defining Your Idea appeared first on StartupNation.

Starting Up in Slow Times: How to Prepare for a Recession Posted: 06 Jun 2022 09:00 PM PDT Running a new startup business is no easy feat and comes with lots of risks. Even after the money comes rolling in from your investment pitches, there are still many hurdles to jump and roadblocks to get around. It can take years for a startup to settle into its groove and earn a profit. Still, for all the banes of starting a new business, there can also be a lot of joy and satisfaction. And while you've most likely considered these risks and determined your startup to still be a worthwhile endeavor, there are other risks and threats you might not have factored into the situation. In today's volatile economy, there are additional risks that are necessary to keep in mind to avoid potential disasters down the road. Despite the pandemic coming to what seems like an end and businesses starting to pick back up, there are still concerns of a looming downturn. Financial experts are certain that the US economy will soon face another recession, which could spell disaster for any new startups still trying to get on their feet and turn a profit. And even those that are currently successful could still be at risk. Startups often teeter on the edge between doing well and going under—and even if they are leaning more towards the former, one wrong move can set them on a path to failure. If a recession occurs, how well your startup fares will depend on the steps you take now to prepare your business. What is a recession and how does it affect startups? In simplest terms, a recession is a significant decline in economic activity. This decline can be widespread, or it can be designated to a specific region and typically lasts for more than a few months. Specifically, recessions are seen in industrial production, wholesale and retail trade, real income and employment. And while there are always fluctuations and occasional slowdowns in these areas, when there is a decline in performance for a period of time lasting more than a few months, it's identified as a recession. Though recessions are a normal part of an economy, they are often characterized by a wave of business failures, bank failures and spikes in unemployment. And though the effects of a recession are temporary and things do eventually pick back up, some businesses are impacted more than others. Small businesses and startups, for example, are often dealt the heaviest blows during a recession due to limited capital and funding. A startup doesn't always have the flexibility to take such a big hit in production and sales, and as such, can quickly go under and potentially never resurface after a recession. Keep Navigating Through the Rapids: 5 Tips for Surviving a Recession Tips to prepare your new business for a potential recession As a startup owner, you cannot control the occurrence of a recession, but you can take preventative measures to protect your company and your employees and mitigate damage. While there is still no guarantee that your business won't be significantly impacted, the tips below can help you better prepare, which can increase your chances of keeping your startup afloat in slow times. Establish strong business and vendor relationships When times get hard, and your supply chain slows down or runs into issues, it's crucial to have good relationships with your vendors and others you do business with, such as stakeholders and creditors. Even when you aren't facing a recession, solid business and vendor relationships are a crucial part of growing a successful business. So it's important to keep the lines of communication open and maintain strong relationships in case disaster strikes. Quality business partners and vendors you can rely on will be key to helping you get through a recession. Prioritize customer service Your customer and client relationships are also essential. Customers are like the foundation of any business; without them, you wouldn't turn a profit. So when you face a potential recession, it's important to have a solid, loyal customer base that will continue to support your business even when things get slow and money is tight. Before a recession even hits, delivering consistent and excellent customer experiences is key. The better your customer service is, the more satisfied your customers will be and the more connected they will feel to your brand. And those solid customer relationships can help you continue making sales should a recession hit. Improve inventory and supply chain management Supply chain issues are almost always unavoidable during a recession. So the better your inventory and supply chain is managed now, the fewer problems you will face if a recession hits. When things get slow, it will be invaluable to have a well-organized inventory and supply chain process that is prepared for potential backups. This means having backup sources of inventory, a well-organized process that is easy for a reduced workforce to still manage, and quality e-commerce solutions to drive automation. Diversify your products and services Businesses that have more than just one product or service to offer are more likely to stay afloat during a recession than those that don't. So if your startup has limited offerings, now might be a good time to consider branching out and expanding what you have available. The more options customers have, the more sales you are likely to make, even when things get slow. Protect cash flow Being frugal with your cash flow can also help ensure you have funds to spare should sales slow down. As a startup, you should already be mindful of your spending habits and keeping an eye on cash reserves, but this is even more important as we face a potential recession. The more you can build up your reserves now and learn to operate on minimal cash flow, the better you will handle a slowdown when it comes. So take the time to carefully review your cash flow and business costs now, if you haven't already, to see where you can potentially improve and cut spending. Reduce overhead costs with a smaller, remote workforce In regards to cash flow, a great way to reduce expenses is to utilize a smaller, reduced workforce that operates remotely. One of the most significant costs of any business is maintaining an office and the employees in it. So if you switch to a home-based business or even a hybrid work option, it can help you save money. You don't have to necessarily reduce your workforce now, but getting them set up to work from home is something that can help if you do it ahead of time instead of waiting until you're already low on cash. You can also offer your remote employees money-saving tips for how to reduce their own spending when working from home, which can potentially further reduce the cost of keeping them on board. Secure sensitive data Because people can get desperate during times of recession, cyber threats tend to increase, putting your company at further risk than it already is from the slowdown. So before a recession hits, it's crucial to take extra precautions to protect sensitive data. With everything and everyone going digital, computer and cell phone use puts companies at greater risk than they used to. This means upping your cybersecurity and cell phone use protocols is a must, even without the threat of a recession looming. Conclusion The above tips are something every startup owner should keep in mind, even when the economy is stable. A recession is not the only thing that can threaten your business, so the more prepared you are to face any potential threats or challenges overall, the more likely you will be to come out on the other side without suffering from any significant damage or setbacks. StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here   The post Starting Up in Slow Times: How to Prepare for a Recession appeared first on StartupNation.

We Implemented a True, 4-Day Workweek: How It’s Going Posted: 06 Jun 2022 09:00 PM PDT Companies have flirted with the idea of a four-day workweek for years. While the pandemic and Great Resignation have brought the concept back into the limelight, we still know very few U.S. organizations that have successfully tested this concept. For decades, Europeans have realized the promise of midday siestas, espresso breaks and higher happiness rates. We have managed to achieve a different type of work-life balance by implementing a four-day workweek, which I introduced to the company in 2015. That is a 32-hour week compensated at the market value of 40-hour weeks – not 40 hours crammed into four, 10-hour days. The goals for doing this were twofold: protecting work-life balance for employees while maximizing productivity during working hours. Drivers behind implementation Get ahead of burnout – The tech sector, specifically the Software-as-a-Service industry, is known for rapidly growing startups. These environments attract employees with high commitment and high-performing skills. However, this environment’s pace and pressure contribute to burnout among these talented employees. This churn renders a high personal cost for those who experience burnout while high turnover delivers a serious blow to the organization, squashing momentum. A four-day workweek addresses the high-stress environment of a startup, with ample downtime for personal renewal, so that an individual’s drive is sustained over time. Address the Great Resignation – Employees have the upper hand in this labor market and they know it. Our four-day workweek is appealing to any candidate and we’re happy to use it to capture the best talent. Category innovation – When we started the company, we knew that we were building something new, filling a gap to help enterprises uncover opportunities they don't know exist. A four-day work week was necessary to support this lofty ambition because it sustains the rapid speed that our team must work  to fulfill this goal. A new product category can take 10 to 15 years to build out, so we wanted to ensure we were also developing a work culture that could go the distance. Our focus was to foster a sustainable, supercharged work environment. To Grow Your Company, Prioritize Productivity Over Being 'Busy' Here’s the proof that our 4-day workweek boosts performance It's been seven years now that we have worked on the four-day model, and our experience is that this approach is highly effective in driving productivity. Our research shows that employees don't waste time, that higher productivity means more significant business growth, and that being human-centric leads to retention. Employees don't waste time – Everything works better because everyone is committed. People are not wasting time on social media. We avoid unnecessary, unproductive meetings. (Yes, it's true! Most meetings can just be an email.) The shorter workweek creates a clarifying urgency to the four working days, which makes productivity extremely high. High productivity means bigger business – In a four-day workweek, aggressive business goals do not change; they just get done differently. Achieving this requires the entire team to work differently, but the high value of knowing you have three days off can be a self-sustaining motivator and contribute to a high-value, high-retention culture. As a result, we've evolved our capabilities and now work with some of the world's largest enterprises. Human-centric means retention and growth – We believe that in order to create a platform that serves humans well, we need to live and work as humans ourselves. We're living longer, working time is longer and with retirement ages getting pushed out, people need to be taken care of if we want to go the distance and get the best from everyone. This means placing more focus on our employees' mental and physical well-being. Many organizations provide for the physical health of employees, but investment in the mental well-being of employees has lagged. Our organization maintains a full-time therapist and a professional coach on staff, available to all employees at no cost, in an effort to remove the stigma of mental health needs and encourage holistic human wellness. 8 Surprising Strategies for Unstoppable Focus How your organization can make this permanent How can companies adopt this model? Making a four-day workweek make financial sense for the business relies heavily on the following practices: Involve your people in the decision-making process – To really make this work, your people need to buy in to what you're trying to achieve. It takes a combined effort and a continuous improvement attitude to embed this kind of change in an organization. Hire well – This model is high-paced, requires discipline and is not for everyone. There is no time for micromanagement. Invest in organizational protocols and tools – Synchronous platforms like Slack can serve you well but they can also take up time and be distracting. Invest in effective communication tools and create norms of engagement for them. Employees set organizational protocols for what to communicate where, and which tools are crucial to remaining aligned, efficient and productive. Create thoughtful four-day schedules – Some teams/employees may work a different four days. Determine which teams need to work which days, according to the needs of your business. Celebrate the value of the 5th day – This encourages the cultural value around the practice, and serves as an organic enforcement to remain highly productive during the workweek to conserve the value of that fifth day. We frequently celebrate individual interests, personal events, community service and more. Five-day weeks do (rarely) happen, but if the four-day week fails consistently, that’s a management failure. There will be times when a five-day workweek is unavoidable, but this should be a rare exception. If it isn't, you will lose the value of employee commitment and buy-in. And if those five days are needed, figure out a proper reward, such as comp time, once the business need has been met. Two years ago, virtually overnight, companies around the world switched to accommodate home working – something  many of them will have told their employees for years that they couldn't accommodate. Now, people's eyes are open to what's possible in terms of different ways of working. While others are wrestling with how to accommodate hybrid models and return to work, the rhythm of production our four-day workweek affords is simply better suited to allow for the level of work-life balance that workers everywhere are now demanding. StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here The post We Implemented a True, 4-Day Workweek: How It's Going appeared first on StartupNation.

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