Rachid Sefrioui on Venture Capital

4 Big Ideas for Attracting Venture Capital to a Small Company

noreply@blogger.com (Rachid Sefrioui) — Mon, 03 Jun 2013 06:20:00 +0000

It seems like every entrepreneur’s dream: a big VC firm writes a giant check and the business quickly rockets to success.

For most business owners, of course, reality will never match the dream. Saying that most businesses will not be funded is to understate the obvious. In fact, less than 1 in 1,000 companies are funded by VC -- and that is of those that bother to apply.

Nonetheless, just as athletes dream of Olympic Gold and climbers pine to scale Mt. Everest, entrepreneurs will always strive to attract VC dollars. If you find yourself dreaming of venture capital, dream big, and follow these simple rules:

1. Spot the Big Trends

Venture capitalists succeed by staying ahead of the curve. The nature of their business demands that they invest in markets and industries that are rapidly expanding. If you are not in today’s hot markets, it’s unlikely you will get the attention of early stage investors.

It’s generally accepted that technology firms make good venture investments, but those in the fastest growing segments, like biotechnology or nanotechnology, will have an even better chance of attracting attention. Industries that are in vogue with VC change, however, so beware. Keep an eye out for the big trends that will shape your market, and align your business to take advantage of these trends.

In the end, even if a venture fund does not take a shine to your company, this strategy can pay off in faster growth. So keep the wind at your back and your eye on the horizon.

2. Target a Big Market

The corollary to being part of a big trend is having a big market. To justify a large venture investment you’ll nee to project a big return in a small amount of time. There’s no way to do that without selling into in a large, lucrative market.

Estimating Startup Costs for a New Business

noreply@blogger.com (Rachid Sefrioui) — Mon, 27 May 2013 09:13:00 +0000

Confounded over how much money you'll require for your startup business? Well, don't fret. There's an easy approach to breaking this mystery down and creating a clear picture of the funds that your startup business will need.

Startup cost categories

Bear in mind that different small businesses will have different types of startup costs. For example, a furniture retailer might need a storefront and staff to man it, while a toy manufacturer might need manufacturing equipment, a warehouse and staff that is trained to operate the equipment. And then again, if you're operating an online retail business, you might be doing it at home in your PJs, and don’t need a facility or staff at all.

Costs for a startup business can be divvied up into six major categories:

Cost of sales: Product inventory, raw materials, manufacturing equipment, shipping, packaging, shipping insurance, warehousing

Professional fees: Setting up a legal structure for your business (e.g. LLC, corporation), trademarks, copyrights, patents, drafting partnership and non-disclosure agreements, attorney fees for ongoing consultation, retaining an accountant

Technology costs: Computer hardware, computer software, printers, cell phones, PDAs, website development and maintenance, high-speed internet access, servers, security measures, IT consulting

Administrative costs: Various types of business insurance, office supplies, licenses and permits, express shipping and postage, product packaging, parking, rent, utilities, phones, copier, fax machine, desks, chairs, filing cabinets – anything else you need to have on a daily basis to operate a business

Sales and marketing costs: Printing of stationery, marketing materials, advertising, public relations, event or trade show attendance or sponsorship, trade association or chamber of commerce membership fees, travel and entertainment for client meetings, mailing or lead lists

Wages and benefits: Employee salaries, payroll taxes, benefits, workers compensation

Factor in the time to get your startup business off the ground

How is Your Startup Unique or Different?

noreply@blogger.com (Rachid Sefrioui) — Mon, 27 May 2013 08:31:00 +0000

In a competitive landscape, a key consideration is standing out from the crowd.

For startups, this is important because the barriers to entry are relatively low, while new or innovative ideas can quickly be replicated by agile rivals.

It means startups needs to discovery how they are unique and different to position the brand and carve out a competitive edge. If this can’t be achieved, the a startup can come across as just a me-too product.

Being unique or different, however, is not easy. There is so much competition that startups have to be creative, flexible and bold.

So how do startups discover what makes these different or unique?

It begins with looking into competitive landscape to explore how rivals are positioned. Who rises above the crowd, and how do they do it? What are the things that every rival claims – e.g user-friendly, intuitive, efficient. etc.?

To get a better grasp of where everyone sits, it might even help to create a graph that places companies in different buckets (e.g. free, freemium, premium, SMB, etc.)

By doing a competitive analysis, a startup can see the best opportunities to stake a claim on how it different or unique.

A good example of a startup that successfully managed to establish its uniqueness is 500px, which plays in the competitive photo-sharing market. So how does a startup find a place where it can be seen as different?

For 500px, the magic happened when it positioned itself as the place where photographers could display their most beautiful photographs. 500px is not a place to show good photographs, but only what you consider to be the best.

By positioning the brand in this way, 500px created a unique place for itself. In the process, it attracted well-known and high-quality photographers who liked the idea of having a place for their best shots. This, in turn, generated significant buzz, which attracted many more photographers who wanted to be part of the community.

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5 Marketing Tips on Communicating With an Ideal Client

noreply@blogger.com (Rachid Sefrioui) — Mon, 27 May 2013 07:58:00 +0000

Defining your ideal client is the first step to generating quality, qualified leads with your marketing.

The second step is to communicate with your ideal clients effectively — and about your ideal clients effectively.

It’s very difficult for consumers to refer their friends, family, and colleagues to you and your business if they aren’t sure who you serve or what exactly you specialize in. Likewise, it’s difficult for them to see if they are a great fit for your product, program and service.

If you want to succeed in business, you must communicate who you serve, what you do, and how you can help them in a simple, easy to understand, clear way.

Here are 5 marketing tips to help you communicate to, with, and about your ideal clients and target market:

Ideal Client Communication Tip 1: Once you know who your ideal client is, don’t sit around and wait for them. Go out and find them

Just because you open your doors for business, launch a website, or print a business card, doesn’t mean that you will have any business. No one can hire you ($$$), buy from you ($$), learn from you ($) or join your list if they don’t know you exist. It is your job as a business owner to find your market, customers, and clients, and let them know that you exist and that you can help.

Ideal Client Communication Tip 2: Share who your ideal client is with everyone

It’s critical that you know who your ideal client is, AND it’s critical that your network and audience also know who your ideal client is. When your audience knows who your ideal client is, they can more quickly and easily identify themselves or a friend as a good fit to work with you, and it will be easier for people to refer others to you.

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The 51 Best Customer Service Tips For Entrepreneurs

noreply@blogger.com (Rachid Sefrioui) — Mon, 27 May 2013 06:32:00 +0000

Few things are truly more important to entrepreneurs and small business owners than getting and keeping customers. After all, you’re not even in business unless you have products or services to sell and paying customers to buy them. So for many of us, customer service is no small thing. But we sometimes minimize its importance by dealing with our customers as if we deserve their business.

Newsflash. The days of big business-little customer are long gone. There are far too many competitors in the market for small business owners to handle customers carelessly. Not only that, but digital reputation management is a huge responsibility for entrepreneurs. It’s time to get your best customer service mojo flowing. Poor feedback from even a handful of dissatisfied customers will cost you dozens and even hundreds of would-be customers in the long run.

Here are 51 valuable customer service tips for entrepreneurs that will serve your customers extraordinarily well. Included in this list is everything from attitude to body language to thank you cards . All of it matters.

1. Sit up straight and smile.
When you are face to face with a customer, good posture and a sincere smile will change your disposition and that’s change customers can feel.

2. Use active listening.
One of the best experiences customers can have is to know they are understood. Listen to your customers. Let them know you have heard them by rephrasing and communicating what they have told you. This makes sure you and the customer are on the same page and lets customers know they’ve been heard. You both win!

3. Let them rest assured.
Customers want to feel confident in your ability to guide them through the fray. Let them know that you have their best interest in mind. Be present, communicate often and always follow through.

4. Dump the script.

4 Steps to Ease Your Way Into Entrepreneurship

noreply@blogger.com (Rachid Sefrioui) — Mon, 27 May 2013 05:55:00 +0000

Becoming an entrepreneur is a fun yet scary proposition. Often, entrepreneurs go against the advice of their friends and family members, in order to follow their dreams and pursue their passion. However, making that leap is a rocky road.

Here are four action steps that you can take right now to make the journey less bumpy:

1. Develop a Personal Mission Statement

A challenging yet exciting thing about entrepreneurship is that you are inundated with ideas and opportunities, but to be effective, you need to choose the ones that work best with what you want out of your life. Create a personal mission statement that will act as a decisive filter. For example, my personal mission statement is "to become a tycoon politically, socially, and economically so that I may have a positive impact on my community." When developing your own, you must ask yourself two questions: What core things are most important to you? Why are those things important? Your answers will help you figure out how to accomplish your goals. Remember that your personal mission statement is not set in stone, so tweak it accordingly as your life's priorities change.

2. Reduce Your Expenses

One of the main reasons many people don't start businesses is because they're afraid of losing their home, car, ability to provide for their families, etc. But the ultimate goal is to generate big wins while reducing your expenses.

A solution to this is to cut your expenses down to the necessities. You don't need to make your life miserable, but simply review your expenses and find affordable alternatives—starting with the most expensive item. Do you really need to pay $1000 per month in rent, or can you share an apartment with a friend to save money?

5 Steps you must take before you start your business

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 14:48:00 +0000

Once you’ve made the decision to start your own business, the natural instinct for many is to charge headlong into getting it off the ground right away.

Starting your own business might have been something that’s been at the back of your mind for years, and now that you’ve finally decided to take the plunge, you don’t want to waste any more time.

Well, despite the urgency you probably feel, it would be sensible to spend some time examining the true viability of your business. Many people rush into their first business and live to regret it down the line. Important decisions made in haste tend to have implications. And while you shouldn’t use that as an excuse not to get on and make your dream happen, there are five things you must do before you start your business.

1. Research the market

Just because you can do something doesn’t mean people will buy it. Or, just because you can do something doesn’t mean people will pay enough or buy enough of it to make you a profit. There’s nothing smart about working flat out running your business for no profit. You won’t be an entrepreneur, instead just a busy fool.

Sometimes the gap in the market that you’ve spotted is there for a good reason. Maybe it’s difficult to make money from it. That doesn’t mean impossible – there are opportunities everywhere – but if the gap seems obvious, ask yourself why no-one else is capitalising on it. When you go looking, you may find a graveyard full of businesses that did what you intend to do, and failed.

Research can be as simple as talking to potential customers, spending a few hours on the internet, or acting as a potential customer and checking out the competition.

2. Get information

10 Financial Tips for Startup Entrepreneurs

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 14:18:00 +0000

If you are young entrepreneur or startup, I applaud you. Building a company is truly one of the hardest things I’ve ever tried to do. A year and a half ago, I decided to quit my job to pursue my dreams of entrepreneurship and have learned a lot of lessons along the way. In this article, I’m going to share some of the financial lessons I’ve learned in the process of starting my business in the hopes that you won’t repeat some of the common financial mistakes many young entrepreneurs make.

#1: Time is Money

When I first started building my business, I spent a lot of time traveling to meetings, meeting with people, planning for meetings, etc. Today, I wish I had all that time back. One of the most valuable assets entrepreneurs have is their time, and every moment you spend doing stuff that is unrelated to your business is time and money wasted. When I was first starting out, I recall one of my advisors saying to me, “a lack of time is a lack of priorities.” It’s true. If you are wasting your time going to meaningless meetings that are unrelated to your business, you can find yourself in a tough financial situation.

#2: Prepare for the Worst, Hope for the Best

Bad things happen to good people, and it pays to be prepared. If you are not financially prepared to take the leap into entrepreneurship, don’t quit your job until you are ready. There is no reason in the world to give up your income when you can work on your project on the side until you have traction. For most single people, I recommend having at least 3 months of living expenses in an emergency savings account. If you are going to be an entrepreneur,

Top 5 Unconventional Ideas For Your Startup

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 11:17:00 +0000

Starting your own business can be a very troublesome task. Finding the dedication and motivation to invest time and money in your business can be difficult, and especially since it’s a startup, it can be even more difficult since the success of your business is based on a small chance.

However, over the past decade, the number of people who have managed to start off with successful businesses from minute setups has increased greatly, which has resulted in more startups than ever before. Companies such as Groupon and Facebook started off on a very small scale, and then slowly rose to break through the business barrier, finding their place as some of the top businesses in the world.

However, if you are looking to start up your own business, there are some things that you need to know. Taking the path commonly treaded by will usually result in failure, so here are 5 unconventional ideas for your startup that might help you gain success:

Create a powerful vision for your business

Most businesses fail because even the owners don’t know where they want to see the business five to ten years from now. Sure, everybody wants to see their business succeed but to have a specific position to reach is something that has a major effect.

A goal can totally change the way you look at options and ideas for your business, and will have a major impact on your employees as well. Therefore, create a vision and mission statement for your business, and hang it up everywhere.

Ask your employees for ideas

Mistakes every start-up owner makes

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 10:41:00 +0000

The hilarious star of the spoof start-up Vooza deliberately acts dumb and promotes stupid behaviour. Witness the recent Vooza video advising budding start-up gurus to pretend to be birds.

Presumably, your start-up pursues more intelligent strategies. Still, doubtless, you commit your share of mistakes.

Here, for some serious insight into what not to do, is an audit of stuff-ups that almost every new small business owner makes.

1. Soft on sales

Not devoting enough time to sales is a particularly common and damaging start-up blunder, according to business coach Alex Pirouz.

Most business owners spend minimal time on selling, fixated on areas such as design and branding, Pirouz says. While those areas count, sales are the cure to most issues that start-ups face, he says.

The revenue yielded by sales affords you the luxury of outsourcing your workload to others, letting you focus on development. Still, Pirouz says, less than 10 per cent of entrepreneurs allot enough time to sales. That is one reason why 80 per cent of businesses fail within the first three years, he says.

2. No homework

Pirouz is also critical of entrepreneurs who take a personal hobbyhorse stance and sell their products based on what they think the market wants. They neglect to check if anyone else cares about solving the problems their products address.

Do your market research, Pirouz advises, adding that entrepreneurs no longer have the excuse that it is costly and difficult – social media platforms like LinkedIn and Facebook make getting feedback a cinch.

3. Hooked on novelty

Contrary to what many aspiring entrepreneurs believe, the key to start-up success is not a one-of-a-kind idea, according to Pirouz. A good idea is just a basis for a business, nothing more, he says.

6 Essential Time Savers for Overworked Young Entrepreneurs

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 10:09:00 +0000

You know the saying, can’t see the forest for the trees? Well, entrepreneurship can turn you into a treehugger very quickly. The trouble is, the forest (a.k.a. the big picture) can often fade to the background.

This is a mistake. By allowing less-important activities — like checking emails and responding to customer queries — to crowd out your larger organizational and business goals, your startup can lose its way. And not only will you feel like you’re constantly chasing your goals, you’ll also be running woefully behind.

Here are six simple approaches that can make a real difference in how much you get done every day:

1. Plan, then attack.
When you have so much to do, planning may feel like a waste of time. How can you sit at your desk quietly with an empty piece of paper in front of you when you’re behind on everything? In reality, taking ten to fifteen minutes to plan every morning will save you much more time than you waste. If it’s easier, make a plan for the next day before you stop working the day before. Either way, that list of things to accomplish should be thought out, prioritized and in front of your face each day.

2. Bundle responsibilities.
If you can accomplish two things at once, do it. For example, plan the order for any errands to determine the shortest route. Save up all of your financial requirements and go to the bank once a week rather than two or three times. Keep an ongoing list of office supplies and stop at the store when you’re nearby.

3. Use delivery services.

5 Critical Skills for Entrepreneurs

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 09:40:00 +0000

These are 5 essential skills that every entrepreneur needs in order to be successful and effective. The world’s best CEOs are masters at these skills. You should aim to master these skills also.

1. Sales

When you are first starting out on your own, being able to sell will be the single most important skill that can determine whether your business will succeed.

You will need to sell to consumers on the internet, to businesses on the phone, to corporations in person — you are always selling, selling, selling. When you are networking, you are not just making contacts — you are selling yourself. When you are presenting your idea to venture capitalists, you are not only selling your concept. You are also selling yourself. The venture capitalists will be thinking to themselves:

Can this person deliver?

Can this person execute?

Is this person passionate?

Does she have what it takes to make this thing succeed?

Rarely does an idea by itself get funded. A great sales person can make even a terrible business idea get funded if it’s pitched right. A brilliant idea that’s terribly presented will not typically be considered.

So it goes for any product or service you may have to offer. As an entrepreneur, you wear many hats. You are CEO of sales, advertising, administration, website, recruiting, customer service. The single most important hat that you will wear is sales. This will determine whether you will bring in revenue.

The art of selling is not to hit people over the head and get them to buy from you. It is not about being pushy. It is much more subtle. It is about asking the right questions. Communicating your viewpoint persuasively. Listening. It seems counterintuitive but some of the best sales people are the best listeners.

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Tips for Aspiring Entrepreneurs

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 09:10:00 +0000

Almost everyone dreams of running up his own business and becoming successful in it. And who would not love the idea of becoming a boss, managing his own time, and reaping the fruits of his own labor.

But that’s not how easy it is.

It may take time and a lot of hard work to be able to taste your first harvest. The success of an entrepreneur depends on several factors and it is important that you have the right foundation before you even start out with a business. Hence, you have to know and imbibe yourself with the traits of success to prepare yourself for the struggle.

Here are some of the best things that small business beginners should do:

The right mindset

In business, having the right mindset is essential. It is the combination of patience, determination, tenacity, and winning attitude. First, you have to know what your business is and which direction it is heading. It may be a good idea to have a big, noble purpose but you can have a small, achievable goal for a start.

Realistic budget and financial plan

To succeed in a small business, you have to have a good financial plan which includes a well-managed budget, sales projections, as well as marketing strategy. This also involves the proper use of money and resources and understanding the market.

Good network

Establishing good relationship with people and other industry players can help a business develop its network. This is helpful especially for startup businesses as the advice of other entrepreneurs can provide valuable insight into the business and also introduce you to potential market and clients.

Strong brand and legal name

7 must-know tips from successful entrepreneurs

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 08:52:00 +0000

What can you do to make your small business one of the thrivers? To find out, we asked entrepreneurs who have succeeded.

1. Love what you do.

The road to success is a hard one. But, according to Lisa King, owner of Brownie Points Inc., which sells gourmet brownies and holiday gift baskets, it's a lot easier if you're passionate about your business's purpose. "If you don't [love what you do], it's hard to be successful," she says. She adds that this helps you stay positive: "You need to maintain your optimism. Once it's gone, you're done."

2. Build a team immersed in your vision.

"For me, it's more than just hiring experienced people. It's important to demonstrate the type of organization we want to be," says Mike Mondello, president of SeaBear, which supplies fresh and smoked wild salmon directly to consumers. To bring to life the vision of building a seafood brand based on world-class, sustainable wild salmon, Mondello used a team meeting to showcase a fisherman whose way of catching fish resulted in a better end product.

3. Come up with innovative ways to solve problems.

Necessity really is the mother of invention. Just ask Robin Brocklesby of Creative Coverings, which rents specialty linens for formal events. When customers were having difficulty returning the linens they had rented, Brocklesby turned to UPS for a creative solution. The result was out-of-the box innovation: Return the linens in specially designed bags (with an estimated life span of 300 uses) rather than larger boxes.

4. Create a delightful customer experience.

How to avoid potential problems with venture capital funding

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 08:17:00 +0000

Venture capital funds don’t expect startups to be well-oiled machines. In fact, they go into potential deals knowing there will be problems. These issues range from disgruntled founders to disputes over who owns a company’s intellectual property. Acquirers are prepared for these issues and M&A and venture capital professionals will not be surprised to uncover some of these issues during the diligence process. However, when preparing for equity financing it is important that your company does not have the kinds of problems that may be so fatal that it kills your deal.

Establishing and maintaining good corporate hygiene will pay dividends as you negotiate your venture financing. By preparing in advance, you can minimize some of the pain and effort in the diligence process and focus instead on negotiating the best deal for your company.

Here are some tips on how you can properly prepare for your equity financing.

1. Create and maintain a reliable capitalization table. Your company’s capitalization table is the first item any potential investor or acquirer will ask to see when considering an investment, acquisition, merger or strategic transaction. Your capitalization table should include who you have sold stock to, for what price and in what quantities, whether those shares have certain voting rights and other related information. When you pitch to a VC firm and they are interested in your idea you don’t want to make them wait an additional week as you scramble to contact your investors to see who owns what and to create your stock table. Your ability to quickly furnish a clean and accurate cap table will impress investors and give the impression that you are organized and in command of your business. As your company grows, your capitalization table will be your first point of reference for handling stock options and tracking compliance with regulatory requirements. Outside counsel or an accountant should prepare and maintain your cap table.

2. Protect your intellectual property.

What starts as a job for yourself can turn into a business you can bank on for your future.

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 08:08:00 +0000

When you think about starting your own small business, what kind of business do you have in mind?

I don't just mean what industry or sector you plan to go into — such as retail, hospitality or automotive — I want to know the size of your vision.

Do you see yourself growing an enterprise with dozens of employees or becoming a successful independent consultant? In other words, are you building a business or creating a job?

Picture three would-be entrepreneurs, each attending a workshop on starting their own businesses.

The first would-be business owner thinks: "I've been laid off from my job and can't find another one. But I need to make a living. I'm good at what I do, willing to work hard. I'll go to work for myself."

The second one thinks: "I'm about to retire, but I'm not ready to play golf all day. I'm an avid photographer. I could charge some friends and acquaintances for taking photos at their weddings and events."

The third one envisions something entirely different: She's been working on a new invention. She thinks to herself, "If I can get the money, I know I can build a business that will make millions of dollars."

Each of these entrepreneurs might say the same thing: "I want to start my own business."

But they mean very different things. The first one wants to create a job, the second to make a bit of extra money, and the third wants to launch a company they could perhaps sell one day.

When I started my first small business, I fell into the first category.

I was looking for a way to be my own boss, to make enough income to support myself. But I sure didn't want to have employees. For more than a decade, I was a self-employed consultant, a sole proprietor.

But eventually,

Fund Raising Tips from The Youngest Person To Raise Venture Capital

noreply@blogger.com (Rachid Sefrioui) — Sun, 26 May 2013 07:58:00 +0000

Brian Wong is the CEO of Kiip (pronounced “keep”), a category-creating mobile rewards network that is redefining mobile advertising through an innovative platform that leverages “moments of achievement” in games and apps to simultaneously benefit users, developers and advertisers. Backed by Hummer Winblad, Relay Ventures, True Ventures, Verizon Ventures, and others, the company has raised $15.4 million in funding to date. Kiip has been listed by Forbes as one of the 4 Hot Online Ad Companies to Put on Your Watch List, and been named to the Dow Jones FasTech50 List.

Called the youngest person to ever receive venture capital funding by TechCrunch and the Wall Street Journal, Brian received his Bachelors of Commerce degree from the University of British Columbia at age 18, after skipping four K-12 grades. He has been recognized with many awards for his accomplishments and leadership, including: Forbes’ 30 under 30; the Top 20 Under 20 awards for all of Canada; Business Insider’s Top 25 Under 25 in Silicon Valley and 18 Most Important People in Mobile Advertising; Mashable’s Top 5 Entrepreneurs to Watch; and the AdAge Creativity Top 50.
Before starting Kiip, Brian led key publisher and tech partnerships at the social news website Digg.com, where he accelerated the company’s mobile presence by launching the Digg Android mobile app.

Q: You have quite the extensive list of achievements. Not only have you raised $15.4M for your startup Kiip, but you’re also one of the youngest entrepreneurs to receive venture capital. What traits make you different then most people your age?

I think to understand what led to everything I’d have to look back on my upbringing. My childhood was full of sports (I know, surprising – but trust me I used to be super buff), speech arts & drama, FPS gaming (PC), and incessant amounts of graphic design. I also studied marketing & consumer behavior in university. It’s no accident that these things combined led to some level of contribution to my ability to succeed with Kiip.

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5 Ways to Act Like an Entrepreneur

noreply@blogger.com (Rachid Sefrioui) — Thu, 21 Mar 2013 08:59:00 +0000

Every financial advisor needs to act like an entrepreneur. It doesn't matter whether you are a self-employed business owner who coordinates all of your firm's moving parts yourself, or you're an employee at an organization with a huge infrastructure. Either way, you've got to manage your business wisely so that you can create long-term success.

Of course, doing so is one of the biggest challenges any advisor will face. My friend Michael Gerber, author of the bestselling book The E-Myth, recently summed it up nicely for me: People who go into business to do work they know how to do often make a fatal assumption - that because they know how to do that work, they therefore know how to build a business that does that work.

But that's simply not the case. In many instances, advisors spend so much time working in their practices - dealing with the day-to-day minutiae - that they have no time to do what great entrepreneurs must do: work on their businesses to create great enterprises with lots of value.

This is one reason why, when we conduct focus groups with advisors, they typically report these kinds of problems:

*We're working harder, but not seeing bigger results.

*We have a good revenue stream, but we're not profitable enough.

*We're not on the same page as our partners.

*We can't seem to execute as a team.

It's hardly surprising that nearly 40% of RIAs surveyed last year by my firm, CEG Worldwide, said they were not highly satisfied with their level of success.

With that in mind, here are some ideas Gerber and I came up with to unlock your inner entrepreneur and make sure you give the same level of care and consideration to your business you give to your clients.

1. CREATE OPPORTUNITIES

5 Financing Mistakes Commonly Made in a Start Up

noreply@blogger.com (Rachid Sefrioui) — Thu, 21 Mar 2013 08:49:00 +0000

When you start a startup company, money can be tight, and it is important that you have a plan in place from the very beginning to ensure that you remain fiscally responsible with your finance plans, particularly during the very beginning. Unfortunately, most startups that run into financial problems do so because they do not practice proper financial planning and accounting, and as a result end up making some very serious financing mistakes that can lead to the downfall of a once promising business. Five of the most common financing mistakes that are made by startups include:

Not Budgeting For Operating Costs.

One of the most common mistakes made by startup companies is not doing enough planning for operating costs. Many new businesses get ahead of themselves, planning their advertising costs and other more glamorous expenses while overlooking the basic operating costs that determine whether or not their business will even be viable in the long term. Make sure that, if anything, you overestimate the amount of money you will be spending on day to day operating costs, because underestimating those costs could be very detrimental to your business.

Overcharging Or Undercharging.

Another common mistake that is made by many startup companies is pricing their services or products far too high, or far too low. Ideally, every startup company should have done enough market research to know the perfect price for their items, but that is not always possible for a company that is working with extremely limited funding. Setting your price too high or too low, in the very beginning will stick with those that come across your service. If you have to drastically raise your prices, they will be less likely to buy knowing that they had a better deal on the table previously. If you lower your prices drastically, consumers will likely feel like they do not know what your service or product is truly worth.

Finding The Right Salary Amounts.

7 biggest mistakes of business startups

noreply@blogger.com (Rachid Sefrioui) — Wed, 20 Mar 2013 10:26:00 +0000

Your first year of running a new business will chart a steep learning curve. No matter how careful or knowledgeable you try to be, mistakes will happen. Get used to the idea.

Still, if you keep an open mind and heed voices of experience, you can dodge many of the more common missteps. Here are the seven most frequent mistakes that newbies make with business startups, and some advice about how to jump the potholes.

Mistake 1: Driving a fire engine without a route. You always hear how entrepreneurs need "passion" to succeed, the so-called fire in the belly. Well, enthusiasm can be overrated. To fan startup flames, you need more than high energy. You need a plan.

Take the time to thoroughly investigate your market and target customers, the competition and other basics, with a sound business model. Focus on answering one deceptively simple question: How will you make money?

As a case study in errors, Tim Berry, president of Palo Alto Software, points to the ubiquitous DVD and video rental store on the corner, the one we've all seen open and shutter in record time. Typically, some starry-eyed owner rents the space upfront. Now he's got fixed monthly overhead well before opening. He then spends his capital on snazzy design, forgetting about the cost of cash registers, business software and store signage.

When it's time to stock the shop, the owner is tapped out. The shop opens with trendy decor and lousy inventory. There's not one penny for marketing.

Before the year is out, the store "is picked up by a chain that knows what it's doing," says Berry.

Lesson: Don't quit your day job without a plan.

Mistake 2: Selling way too cheap. Ask a child to choose between 12 rhinestones and one diamond and she'll go for the rhinestones every time. Startup owners are just like that. They fall for the fallacy of quantity over quality. They figure rock bottom prices will fuel skyrocketing sales and they'll become millionaires. But it doesn't work that way.

"New entrepreneurs are notorious for pricing their goods and services too low," says Linda Hollander, author of Bags to Riches, a small-business handbook for women. "This dooms them to a life of always worrying about money. Heck, even when they get orders, they aren't happy because they aren't making enough profit on their sales."
Before pricing products, do the math.

Six Sources of Startup Business Financing

noreply@blogger.com (Rachid Sefrioui) — Wed, 20 Mar 2013 10:05:00 +0000

Tips to Help you Find Startup Financing for your Small Business

Start-up businesses often have a difficult time finding sources of start-up business financing for their initial financing needs. It is often not possible to get bank loans because banks aren't interested in unproven businesses. Even with the best possible business plan, in the world of business and finance, you may not be able to convince a bank to loan any of their often-scarce money available for credit for start-up financing to a brand new business.

There is money available for those who are starting a business. You just have to know where to look and think strategically and creatively. Here are the six most likely sources of start-up financing for your new business. It is usually a good idea to try to use a combination of two, or even three, or these sources to get the start-up financing that you need for your new business.

Bootstrapping

As hard as it sounds, bootstrapping your start-up business really may be the best way to go. If you find a way to finance your business yourself, you don't have to answer to any investors and you have total control of your business. Bootstrapping requires serious strategic thinking and planning.

Raising funds yourself may involve pledging your own assets. Since the largest asset most people have is their home, you may find yourself in the position of taking out a home equity loan on your home. You only want to do this if you have an iron-clad business plan as pledging your home is not something that should be done casually.

Since the recession, banks are not making as many home equity loans and they are usually making them for only about 80% of your home's value, if that. You have to have a spotless personal and business credit record to qualify.

Financing with the Help of Family and Friends

The good thing about financing your startup business with the help of family and friends is that you can often get fairly lenient repayment terms. That may be important in the initial years of your new business. They may give you a low interest rate and a long time to repay them. On the other hand, they might want a stake in your firm if you are agreeable.

One problem is that in hard economic times, family and friends may not have access to the capital they could normally access.

Small Business Administration 7(a) Loans

4 Steps To Become A Happier Entrepreneur

noreply@blogger.com (Rachid Sefrioui) — Wed, 20 Mar 2013 09:41:00 +0000

During our childhood years, measuring success was as simple as counting gold stars and smiley face stickers. In high school and college, we relied on report cards. But how do we determine success now, as entrepreneurs?

In Southern California’s bustling startup scene, known as “Silicon Beach,” many professionals leave the comfort of a steady paycheck to pursue the American dream of starting something they can call their own.

After numerous conversations with like-minded entrepreneurs, we found that many of these entrepreneurs measured their venture’s success not in dollars, but by their own satisfaction or happiness.

It’s no secret that money can’t buy happiness. In fact, according to an oft-cited study by Stanford University economist Angus Deaton and psychologist Daniel Kahneman, once you’re pulling in a salary of $75,000, any additional dollar earned does nothing more to increase personal life satisfaction.

So if happiness cannot be bought — and yet we use it to measure our business success — what can we do to attain it? Over the last decade, researchers in Positive Psychology have discovered a number of behaviors that boost happiness.

As we begin another new year, these four behaviors can function as resolutions for all of us.

1. Create a social circle of like-minded entrepreneurs.

Two heads are better than one when it comes to problem solving. A team of entrepreneurial peers can see what escapes our own attention, point out pitfalls ahead of time, and become a sounding board for critical decisions and actions.

Commit to creating a circle of like-minded entrepreneurs in which no money is exchanged between members.

2. Give your time away.

Seven Things I’ve Learned as an Early-Stage Entrepreneur

noreply@blogger.com (Rachid Sefrioui) — Wed, 20 Mar 2013 09:27:00 +0000

Kendall is a former fashion editor who has written for NYmag.com, Lucky, InStyle, and NBC. She recently scrapped that glamorous life and is pursuing an MBA at MIT Sloan, in hopes of becoming an entrepreneur.

Last we spoke, I was living in Cambridge, MA working on StyleUp between my MIT Sloan classes. Now, I’m in Mountain View, CA working StyleUp full-time. It’s amazing and crazy and daunting and strange and wonderful. Recently, my co-founder and I even raised a little bit of investment capital which makes me feel like I’m just starting to make it as an entrepreneur. There is a very long road ahead, but I thought it might be useful to hear a few things I’ve learned so far.

1. It’s a roller-coaster – find your center. There are high highs and low lows. Your startup is a finalist in a contest! You lost the contest. You meet an angel investor who is interested in giving you lots of money–then they never email you back. You’re going to be featured in a magazine–the editors kill the story. Through it all, you have to be able to hold your control, not only to inspire your team but also to just get through the day. This past summer, anytime something went wrong with StyleUp, I would be in a funk for hours. That’s not sustainable or healthy. Nowadays, we have our fair share of negative user comments on the website. I try to understand the complaints without letting them deter our momentum. Do yoga, have a glass of wine, adopt a kitten–whatever you need to do to stay calm and stay the course, do it.

2. Your life goes from being surrounded by many, to a few, to one. At business school, I was constantly surrounded by people. In class, in the Retail Club, in study groups over the weekend, I was never lacking for socializing. Once I started StyleUp, I had way less time to linger over coffee with my friends. Now that I’m working on StyleUp full-time, I spend a lot of my time alone. Strip away the distractions, put on your blinders and just crush it. However, when you can socialize, don’t talk about work. Your friends know you work a lot; they probably do too. They care mostly about how you are, not how your business is.

3. You are only as strong as your weakest link. If you have a co-founder or employee or an intern or someone orbiting your life who isn’t pulling their weight, cut them loose. You have to. Without sounding too Godfather-inspired, it’s not personal, it’s business. Their bad energy will bring everyone else down. Don’t feel guilty about making those choices and make them sooner than later.

4. Pay it forward. While this lesson isn’t specific to entrepreneurship, its value has become incredibly clear to me as a startup founder. I’ve had several wonderfully generous executives or fellow entrepreneurs take time out of their day to coach me through big choices. In turn, you have to be gracious and generous. That mentality has shaped how I view our College Ambassador program. I will do anything for those girls to succeed and get the internships/jobs that they want. The fashion world’s a big ladder, and you have to reach down your hand for the people below you who deserve it.

5. Prepare to step away from fashion. Unexpected, right? You start a fashion/tech company, but you have a lot less fashion in your life. Don’t get me wrong, I spend just as many hours in my days scanning street style blogs as I did when I was at Lucky magazine. But in my own life, luxuries like manicures or a new Outnet purchase are G-O-N-E. Every disposable cent you have goes into your company. Buy a nail file, and embrace the unpolished look. Learn to work with what is in your closet vs. impulsively buying more–that’s what StyleUp is for after all! You just don’t have time to care about the externalities which is a bit sad and also surprisingly liberating.

6. Remember who you are serving.

From Idea to Startup

noreply@blogger.com (Rachid Sefrioui) — Tue, 19 Mar 2013 10:51:00 +0000

You’ve identified a problem that you feel is your calling and you’re at that juncture where you need to take the plunge.

But what do you do after that? How do you get started?

Like you, there are many aspiring entrepreneurs who have had to face this question. Like you, I have also had to figure out the answers.

I have put together these steps for you to follow to help you see your idea through to launch, so that you don’t have to ‘figure out’ for yourself like I had to.

Step #1 – Punch Yourself In The Face

This is probably the best advice that I can give you. Punch yourself in the face today. Get yourself out of the inertia. The single biggest reason why most entrepreneurs fail to start up is because of procrastination.

If you want to start up, just shut up and do it.

Most aspiring entrepreneurs just don’t manage to start their ventures because they spend endless hours mulling over the ‘idea’ or on whether the time is right!

Don’t make that mistake. Your idea is only worth as much as the piece of paper you’ve probably jotted it down on. The day you begin to execute it is the day that it turns into a potential million dollar venture.

Do yourself the favor of punching your face to wake up to endless wonderful opportunities that will come your way when you set out on the road to entrepreneurship.

Step #2 – Build A Minimum Viable Product

Thank Eric Ries for popularizing this strategy used for fast and quantitative market testing of a product or a product feature.

You want to build a product or a service that interests your customers so much that you are able to build a great business out of it. But, most often, you only get to know the market response once you’ve built the product and put it out in the market.

This implies that a product is complete the day it is shipped, which is the biggest fallacy. Successful products have evolved over a period of time through constant customer feedback.

So don’t spend all your money and time building that one perfect (in your opinion) product. Instead, build a minimum viable product or MVP.

The idea is to put out something that offers the core value or your product or that solves the core problem of your customers. The MVP could be a PowerPoint slide, a dialogue box, or just a landing page. This is something that you can often build it in a day or a week.

Build fast, release early, release often with the feedback you receive.

Did you know that “The first version of Gmail was literally built in a day?” Not my words, but that of the creator and lead developer of Gmail, Paul Buchheit.

Step #3 – Funding Your Idea

Once you’ve received feedback from your customers, you have to get into full-fledged development and start shipping. You will need the initial money to get you started.

But before you explore the options, assess why you need the money. Is there something that you can outsource?

If there is something that is not absolutely essential for starting up, don’t spend on it in the beginning.

There are options to raise funds for your startup: bootstrap, startup contests, friends and family, crowd funding, banks, Angel or Seed fund, and credit cards.

Don’t focus and stress too much about raising long-term capital. The most important factor in successfully starting up is to make your product available to your customers. This should be your goal, so simply secure enough funding to ship.

Step #4 – Hire An A-Team

Businesses don’t build great products, people do. To start building your product, you will need a team that can help transform your vision into reality. There are two ways to build a team – in-house or outsourced.

When building a team in-house, look for people with passion, look for people who are startup ready, and people who can multi-task and take on much more than just what they are ‘experts’ at.

If you think an in-house team is not for you to start with, outsource the development. Especially, if yours is a technology startup. Many jump up in their seats with the notion of outsourcing and advise (ill-advise) you not to. Nothing wrong, but nothing right either.

Some of the most famous products today were outsourced in their initial days – Alibaba, Fab.com, Digg, Skype. And these are only a drop in the ocean of such examples.

Your focus as a startup is to get your core product to your customers and if outsourcing to the right partners helps you to build your Beta, then so be it. Once you gain traction from the market, you will be able to afford to build an in-house team.

You can then hire the developer that worked on your product (like Digg did) or buyout the company that developed for you (like Fab.com did).

Step #5 – Get Ready To Hit The Market

Do you have the right stuff to be an entrepreneur?

noreply@blogger.com (Rachid Sefrioui) — Tue, 19 Mar 2013 10:37:00 +0000

For many of us the idea of being your own boss, making more money than Bill Gates, and having the leisure time to spend it is very appealing. And for many aspiring entrepreneurs, it is possible (well, maybe not making as much money as Bill Gates), but for some it is probably better to keep your day job.

At SCORE, where I work as a counselor, I see many clients, who, for a variety of reasons, want to start their own business. When we discuss the business that they want to start, I try to discover three things:

1. Do they have experience or expertise in this business?

2. Are they able to commit themselves to the business?

3. Do they have a passion for the business?

In my experience, if they do not have at least these three characteristics, it is unlikely that they will succeed. Of course, things like a good idea and start up money are also critical, but, from a personal perspective, without experience, commitment and passion it is unlikely that they have the “right stuff.”

If you have what you think is a good idea, or see a good opportunity, but do not have the experience, then I suggest you spend time to try to get it. If you are thinking about going into the restaurant business, but have never worked in a restaurant, try it to see if you can stand the hours, understand what makes a good menu, learn how to cook quickly for an endless stream of customers, how to manage perishable inventory, and get a sense for the rules and laws governing sanitation. If you have a great idea, but have never manufactured or marketed a product before, study the market, identify your strengths and weaknesses and see if you can find a partner who can compliment your strengths and overcome your weaknesses.

According to a recent study by the University of Tennessee, over 25 percent of businesses fail in the first year, and 36 percent fail by the second year. In the same study, they also identified the major causes of failure, most of which were the result of incompetence or inexperience, but do not ignore a lack of commitment and passion. One of my favorite anecdotes about commitment is a very successful Silicon Valley entrepreneur was asked, “What is the one piece of advise you would give someone who is about to start a business?”

After thinking for a moment, he responded “Be single, or get single”. That may be a little extreme, but it is true, that most businesses require much more time and energy, particularly in the start-up phase, than you can imagine.

And that relates to the last characteristic of most successful entrepreneurs. Have a passion for the business, because there will be times, often many times, when things are not going well, and, if you do not have a passion for what you are doing, it may be very difficult to overcome the emotional hurdles that these obstacles create.

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