Startup Blog

5 Ideas that may facilitate creating a startup business

2013-05-02T08:29:00.001-04:00

Every company was created by someone. You can make one too!

Successful businesses deliver goods and services that people want or need. People or businesses interested in the goods and services are the market. The market must be willing to pay for the goods and services on a continuing basis for the business to have a sustainable model. This sounds simple, but too often entrepreneurs creating a startup do not have this concept properly developed. The key to creating a successful business is to find a niche product or service and evaluate the market. The evaluation of the market should include determination of a desire to buy the product and pay the price requested.

Finding a business idea is another matter. Sometimes businesses concept discoveries occur by serendipity while at other times thoughtful innovation and creativity lead to the business idea. If you are an entrepreneur wishing to create a business, consider one of the following paths that may facilitate identification of a novel business idea for a startup.

Solve problems: One great business model is to identify real problems and create solutions for those problems. The general population may not recognize the problem. Good marketing teaches the public about the problem and your company provides the solution to the problem. People did not need personal computers or smart phones until marketing of products showed how they fit needs of the market. The market had to be educated that cholesterol was a problem before the launch of statins. The concept of identifying problems and solving them is a great way to direct a business toward profitability.

Fulfill desires: Many people love to have the latest and greatest new device. They want new places to go for dining or recreation. They want to be healthy and have better nutrition. Catering a business to fit the desires of a target market provides an avenue for a new business. Creating a business that delivers the products or services in a unique or superior manner works well for many entrepreneurs. Try to survey the market segment about your offering and use the information to improve the business model.

Meet needs: People have every day desires and needs. They must eat and drink to survive. They require clothing and warm dry places to live. Obvious business areas are renewable energy, medical devices and drugs, improved foods and services. Businesses need goods and services as well. They may wish to outsource areas of work or require production of materials. They need maintenance and improvements just like individuals. Identifying those needs and developing business ideas to meet the needs help generate a business idea.

Improve something: Some products are improved or recreated constantly. The TV you are watching is most likely a flat screen, your pone is a smart device, your computer is faster and lighter, all these are examples of improving existing products. Cosmetics are constantly improved or changed. Some product areas have modifications with new products launched every 1-1.5 years. Your ability to deliver or improve on existing goods may be a great concept for a business.

Create new stuff: One business model most exciting to innovative and creative people is taking a new invention to market. The invention may be his or her creation or it may be a creation licensed from someone else. Discovery research always has interesting new concepts with product opportunities. It is critical to evaluate the market to ensure interest in the discovery, but the business model is one that has worked for many.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte, NC- small business section of Examiner.com.

Your reputation precedes you

2013-04-24T10:06:00.001-04:00

Want to come work with me?

Entrepreneurs work hard to create businesses and make money in the process. Their personal traits are part of the business evaluated by others. Being stingy or ugly to employees is something that eventually gets around. Treating tentative providers poorly has the same tendency for negative recognition. People REMEMBER bad treatment and eventually your treatment of others comes back to haunt you!

Success is a great neutralizing event. People treated like dirt tend to minimize the bad and remember the good once they make lots of money. The problem is that a limited number of startups achieve sufficient success for this to occur. In addition, the word may spread before the company becomes successful. This means that people will remember the bad treatment and your reputation suffers. Worse yet, contractors and future employees may shy away from working with you because the reputation becomes public knowledge.

Adopting a solid business acumen and persona does not mean you must act like an ASS! Careful thought and treatment of others has a value. People will work harder and spread your praises when they believe you are the type that everyone enjoys being around and working with. There is no need to give away free money and ignore achieving great deals in your negotiations, but do it with care and thought. People recognize that business requires maximizing profits, but they resent dealing with poor business skills and lack of understanding. In addition, they dislike poor treatment.

The sad part is that some people never recognize that they are in the disliked camp. They never realize or do not care that people are resistant to work with them. The company develops and gradually faces limitations attracting the kind of staff and contractors they most need to be successful. In addition, the investor pool will eventually get feedback from outside. This can create a different set of issues for the business.

There are many reasons to be a solid business professional and run a tight ship. You have an obligation to keep costs down and ensure solid performance. In doing so, try to remember that you may lose creditability by going too far and being obnoxious, cheap, or uninformed.

Multiple paths lead to solutions of business and research problems

2013-04-17T10:35:00.001-04:00

More than one path usually exists. Find the one that best fits your business needs!

Business and research are places where products discoveries occur during attempts to solve problems and make improvements. It is rare that the discovery process has a singular path; meaning that more than one route leads to the accomplishment of key goals. If path limitations exist, they arise because of attitudes, knowledge, and skills of the individuals involved. People see problems differently and backgrounds influence the directions and view of the problems; e.g., is the “glass half full or half empty?” Attitude and knowledge are sure to influence your direction and problem resolution.

It is important to understand the problem from different perspectives to achieve a resolution more useful to a larger group. Better understanding arises from quality market assessments. Small or large group studies can lead to a better understanding. One may also gain information via networking discussions among the right group of individuals. The ability to identify key issues and consolidate them into goals requiring resolution drives the determination of the best set of characteristics to address.

Why is this important? Products that do not fit the best set of desired goals are less interesting to the target market. Understanding of the market needs influence whether customers buy once and go away, or return to buy frequently. Good research will determine if the product is even interesting to the target market. Understanding of key issues and problems assist creation of great products. Proper delineation of the product characteristics are critical to tasking the development team in the discovery process. Better definition of the ideal product and intended use enhance the ability of the team to address and create the right products for the target market.

Many problems have multiple solution paths leading to multiple products, but only a limited subset of these may be of interest to your market. The article “Build it and they will come is not a business plan” described the importance of product creation for the target market. Business and research require extensive effort to understand the issues and devise proper solutions and desirable products. In your planning stages, try to incorporate a few of the key considerations: 1) Will the customers like the product? 2) Will they return to buy again? 3) Does the product provide right quality and value? 4) Does it fit their need and solve a problem they have? These are just a few of the areas to consider.

Remember, that companies that do not have repeat business or interested customers will find their business a tougher thing to build. So, start out in the right direction and find the path that is a bit easier to travel.

Second interview of Taffy Williams by Greg Viloria of the Nerd Stalker

2013-04-14T08:44:00.000-04:00

Everyone has a slant! Listen to mine in the interview on Nerd Stalker.

In a second interview by Greg Viloria, the Taffy Williams provided "slant" on startups, leadership and business creation: Nerd Stalker ( @nerdstalker ) calls the segment Startup Blog Insights. The goal is to obtain in-depth thoughts about topics covered in Startup Blog. This interview covered two articles published in the examiner.com: “5 Key considerations while creating a startup " and "8 Hats Entrepreneurs Often Wear."

The full interview is available on Nerd Stalker: http://www.nerdstalker.com/2013/04/startup-blog-insights-building-your.html

“Key Ingredients for Your Startup

"If you are not thinking about how you plan to structure this organization and how this person is buying into the business...structure is important at the onset"

"I worked for the government for 14 years and one of the things that was a hot button for me what was when I asked someone to do somethings would refuse to do something because it was not in their job description..(in a startup).your job is to do whatever it takes to make it successful"

"if you do the wrong thing at the wrong time it only takes one wrong move to demotivate your people for months"”

The two articles point to the areas of planning and willingness to perform in a startup. Planning is critical before starting. Learning to modify the plans as the business progresses is equally important. The ability to serve in multiple ways contributes to getting all tasks completed and demonstrating leadership to the team.

It was a pleasure speaking with Greg in this second interview and I look forward to future discussions. The added information provides more insight into these articles.

100 plus articles published in the Examiner

2013-04-10T21:14:00.000-04:00

The following articles are published in the Examiner.com and cover issues of startups and entrepreneurship. The list covers all articles published as of April 10, 2013.

5 Values that contribute to business success and keep customers coming back http://buff.ly/ZhseU4

5 Key considerations while creating a startup http://buff.ly/16ezjI3

5 Actions entrepreneurs should regularly perform http://buff.ly/YAHw61

6 Areas where contingency plans benefit entrepreneurs http://buff.ly/Y9K79M

8 Hats entrepreneurs often wear http://buff.ly/14Jphhs

6 Questions to ask before creating a startup http://buff.ly/12rFuMC

6 Steps toward repurposing you http://buff.ly/YXbm7C

6 Steps toward that new job and new you - http://buff.ly/XF6PGC

3 Examples of pay it forward networking - http://buff.ly/13DrfiO

4 Entrepreneurship lessons learned by selling Girl Scout cookies - http://buff.ly/139HZy2

4 Steps to get your development team in line and behind you - http://buff.ly/12X8sib

4 Steps to overcome inertia and build a business - http://buff.ly/X579ek

6 Steps recapture the lead when your to-do list is winning - http://buff.ly/WXETNV

Draw energy from the positive people around you - http://buff.ly/UPoA4V

5 Stages of mourning entrepreneurs may experience - http://buff.ly/UDpdP5

7 Childlike characteristics that are strengths to an entrepreneur - http://buff.ly/10JM2p6

7 Questions to ask fund managers reviewing your startup - http://buff.ly/X5yVXz

Leadership, relationship, and compromise get deals done - http://buff.ly/UmPEXq

Networking requires certain tools and attitude - http://buff.ly/UfzQUP

Success requires paying attention to details - http://buff.ly/R7xNF5

Entrepreneurs rarely throw in the towel - http://buff.ly/TcQx4c

Understanding your markets requires good research - http://buff.ly/RChUI2

EGOs can kill your business deal - http://buff.ly/RwYioD

Entrepreneurs should prepare for an exit - http://buff.ly/YxU2qR

Guard against bad decisions resulting from office politics - http://buff.ly/Ynhvee

Entrepreneurs sometimes get left at the altar - http://buff.ly/WOOis8

Succession planning is critical for entrepreneurs - http://buff.ly/WxFxTr

Creativity and innovation come from mix of a wide range of ideas http://buff.ly/Y0fwMV

Give thanks for entrepreneurs because they are good for the economy - http://buff.ly/XWBlwP

Know the difference between rules and trends for your business - http://buff.ly/XSEEVC

The Fiscal Cliff can affect your startup or small business - http://buff.ly/TT8PqZ

Creativity and new discovery end on stating something is impossible - http://buff.ly/W7iVZG

Some of the greatest inventions and products occur by accident - http://buff.ly/TaPAsM

You can rebuild after business failure and devastation - http://buff.ly/Q8R7Cm

Run very fast from unreliable investors - http://buff.ly/SqqEwO

Guard against unknowingly handing over your technology to others - http://buff.ly/Re835t

The story of Loretto Chapel provides business creativity and planning lessons - http://buff.ly/PE6m68

Successful planning includes contingency plans - http://buff.ly/T5pQM4

The importance of understanding the winners and losers in your market - http://buff.ly/Po8tXf

Investors only get involved if they like and understand your company - http://buff.ly/PfUFhx

Review and strategy change may get investors - http://buff.ly/QiZNRC

The golden rule as applied to business - http://buff.ly/QdRvKM

Negotiating a business deal requires significant planning and discussion - http://buff.ly/PXBZCX

Save time and money by understanding and working on the correct objectives http://exm.nr/Q7mhHw

Multiple investor groups may slow the financing of your startup http://exm.nr/NErLW3

Individualize advice before applying it to your small business http://exm.nr/QmF1il

Innovation and creativity are essential for small business http://exm.nr/N5jikx

Good business needs clear goals and precise measurements of success http://exm.nr/QRlZr4

Innovate away from me too products http://exm.nr/MfjJXU

Me too products are not the best business opportunity http://exm.nr/Rf2hAg

Business intelligence is easy to obtain http://exm.nr/OCNSf3

Negotiating: Sometimes walking away is required http://exm.nr/P845tP

Project planning is critical to product development http://exm.nr/NAX6ep

‘Build it and they will come’ is not a business plan http://exm.nr/P6Iou9

Leadership sometimes requires consensus building http://exm.nr/MN4bWc

Outsourcing, problem avoidance http://exm.nr/LBMg9B

Knowing your team enhances chances of success http://exm.nr/NCEnPT

Is it the right time for your products? http://exm.nr/LBNWzO

Motivated Entrepreneurs Strive to Win http://exm.nr/NCEGKh

When In a Tight Spot, Seek Alternatives http://exm.nr/OxKwNW

Good PR or IR Increase Awareness for Startups and for the Region http://exm.nr/Q3G2wx

Mayor Foxx Proclaims Small Business Month in Charlotte, NC http://exm.nr/LKLOWF

BIG Brings Repeat Performance of Deal Desk - http://exm.nr/LZ0cuB

CanDiag Inc Wins $50,000 in the Charlotte Venture Challenge - http://buff.ly/HZMN2g

Finalists Selected for the Charlotte Venture Challenge - http://exm.nr/IzVqT5

Mentoring Is a Great Way to Give Back - http://exm.nr/IarnwT

Startups Compete in Charlotte Venture Challenge for Prizes Totaling $100,000 - http://exm.nr/HKZESA

Be Careful What You Wish For, You Might Get It - If You Apply by February 29, 20 http://shar.es/gvzuB

Have a Bad Boss? http://exm.nr/zLFvGT

Startups to Compete in the Charlotte Venture Challenge for Prizes up to $100K http://exm.nr/wQAEui

An elevator pitch for a job search http://exm.nr/Ae3811

Instant Gratification Is Not Likely http://shar.es/WJauL

Network a Little Everyday http://shar.es/WehQX

Learn Marketing and Get a Job http://shar.es/WehD5

Learn About Startup in a New Job http://shar.es/WehiC

Angel Investing Workshop Held in Charlotte, NC http://shar.es/b8oYo

Biotech in the Charlotte Region - Conference Summary http://shar.es/bi6XJ

Two Events for Charlotte Entrepreneurs: October 27 & November 2, 2011 http://shar.es/bCdCj

Customers: Who Are They http://exm.nr/omJHBG

Networking: Essential for Job Search & Startups http://shar.es/b3Xll

Keeping Your Startup On Track http://shar.es/baTnv

Networking Can Enhance Chances for Success in Your Startup http://shar.es/baS6g

9/11 - Determination From Devastation, A Startup Story http://shar.es/HRFjN

Networking http://shar.es/oxeJh

Staff & Money http://shar.es/HU5KW

Examine the Competitive Landscape http://shar.es/HUtnq

Don't Forget You May Have a Partner(s) to Manage http://exm.nr/nXri3V

Lean Startup Conference – Charlotte, NC http://shar.es/HEOVK

Licensing Rights to a Technology http://shar.es/HExhP

Forming the Company & Structure (Part 2) http://exm.nr/pHD7pW

Forming the Company & Structure (Part 1) http://exm.nr/qauaVH

Patents Cost Money & Need Maintenance http://t.co/SEjcZfT

Where’s the Money? http://shar.es/HyEKP

Are You an Entrepreneur? http://shar.es/HxyJS

Packard Place - Incubator for Innovation and Entrepreneurship http://shar.es/Hwqky

The Entrepreneur, Learning, Networking, and Mentors http://exm.nr/kDAc98

7 Questions You May Get from Potential Investors http://exm.nr/lpBIQd

Intellectual Property (IP) and Know-how: Defined http://exm.nr/kdU0Xx

Resources for Startups – Research at Carolinas HealthCare System http://exm.nr/iX75eE

The Business Plan http://exm.nr/kFwdlc

Startup Basics Recap from Interview http://exm.nr/jgWzSb

Resources for Charlotte Startups – UNC Charlotte Technology http://exm.nr/j0dSX1

Resources in Charlotte for Startups - IMAF http://exm.nr/mStspK

Starting a tech or biotech company, the beginning steps - http://exm.nr/jrBVyZ

Resources for Startup Companies in Charlotte, NC http://exm.nr/lrb7C8

Raising Capital (or NOT) for the Startup http://exm.nr/jx6oEu

Corporate Presentation to Raise Capital http://exm.nr/mRhNVK

4 Comparisons to consider before making expenditures

2013-04-02T10:10:00.000-04:00

Evaluate spending to ensure you do not throw money away!

Some people are great with money and are able to save and spend in a manner that does not create financial problems. Others are not so great and manage to amass large debt with little to show for their expenditures. Many times those that are not good with finances run businesses in a similar manner. Managing assets of a startup or any business is critical to the success of the business. Many businesses borrow funds as a primary means of growing. Managers of businesses should always give careful considerations to use of available cash or borrowing funds because the actions have long-term consequences.

The goals of building a business are to make money; i.e., cash flow must turn positive. Debt can make companies grow faster if used to make improvements that result in achieving greater earnings or turning cash flow positive sooner. Debt has a potential tax advantage because interest may be a deductible item. The long-term loan payments may create a burden on cash flow that escalates the company financial issues in times of reduced earnings.

Companies sometimes have cash reserves. The reserves help weather downturns or slow periods. The decisions to spend versus borrow is one that should be carefully considered. The following may help your analysis.

Borrow versus Have: Some purchases are beyond available cash assets requiring one to borrow funds to make the purchase. Loans can be great until the cash flow crunch comes and the creditors are banging on your door to get their money back. On the other hand, spending money you have in the bank can reduce reserves and cause cash flow crunches as well. For example, not making payroll is a very demoralizing event. Carefully evaluate all decisions of borrowing versus using cash reserves. Estimate cash flows and ensure your ability to weather cash flow problems with and without a loan.

Want versus Need: Some purchases are things we want but may not need. A new phone with all the latest technology may be exciting, but the old phone may do everything required. The same is true for most items where a replacement of functioning equipment takes place. It is much easier to spend when the item is a necessity that will improve business and cash flow.

Enjoyment versus Improvement: Aesthetic improvements can bring more customers or they make your employees happier. Spending that creates enjoyment should translate to improvements in the business: otherwise, consider delays in the purchases. Evaluate improvements in light of anticipated business improvements and increased earnings and cash flow.

Short versus Long Cycle: Some purchases are products that have short cycles causing them to become obsolete in a few years. Other items purchased have long and durable performance requiring minimal maintenance. The cost and lifecycle of the items are worth consideration as to how they affect cash flows. Try to make expenditures based on need, improvement, and earning improvements.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

5 Ways to leave people with the WRONG impression

2013-03-21T11:36:00.000-04:00

You messed up. Yes, I mean you!

Investor presentations given at venture conferences, competitions, and investor meetings are times where you should stand out, but NOT for negative activity! Likewise, you do not want to provide a negative impression when obtaining help from advisors giving you free time. It is amazing how many entrepreneurs forget that other people have feelings, needs, likes, and dislikes. Forgetting to play to your audience can leave them with the wrong impression.

Simple actions and considerations make a large difference. Things like just showing up or saying thank you leave better impressions than the alternative. Over the last few weeks of conferences and meetings, topics arose in discussions with companies as well as the attendees. The areas listed below really made impressions and not good ones!

Show up & on time: This sounds simple right. Well, a judge in the audience described his willingness to provide help to two entrepreneurs. He set aside billable time to provide free help to the startup. They never arrived nor did they call until far after the proposed meeting time. In a second case, a conference competitor failed to arrive in time to present at the scheduled time. The presenter called from the airport saying they were coming much later! These are just two examples and without mentioning numerous late shows for meetings. Courtesy suggests simple actions. Show up at the proposed time and get there early if possible. It is far better you waste your time than that of someone trying to help you or review your technology. At least CALL in advance to inform the people waiting for you if you will be late for some VALID reason.

Practice the talk: Some of the smartest people ignore the simplest of actions. An audience listening to a CEO stumble over a presentation gets the impression the presenter does not know the technology. You may have only 5-8 minutes to present. Practice in front of a group at the company to ensure you sound professional, knowledgeable, and fit the allowed time.

Improve your slides: You may have wonderful video or sound slides. Did you prepare to present to an audience without them? Some audiovisual equipment and software are not compatible with certain technologies. Developing your presentation to allow for such glitches can help you a great deal. Consider simplifying the slides or having alternative ways of describing your points: remember the PIVOT that works with slides too. Your message will be better received and you will be seen as able to handle problems. A second idea to consider is to place management slides toward the end and a summary slide up front: i.e., what is the take home message. Tell them how great your team is just before you provide the summary, which can be a repeat of the take home message.

Describe the technology: An earlier post in this blog dealt with this concept. It is a real turn off for some people when they have to ask the presenter what the product is and how it works after the talk is over. That should have been clear in the talk!

Follow instructions: Seeing presenter applications prior to a conference has positives and negatives. Finding a technology that seems very exciting makes leaves the reviewer with a strong desire to attend the conference to see the presentation. Learning that that great company did present because they failed to follow the application instructions is a real disappointment. You may have something that is fantastic so make sure people really get to see it: i.e., please follow application instructions!

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

Interview of Taffy Williams by Greg Viloria of the Nerd Stalker

2013-03-12T09:59:00.001-04:00

Sometimes it is nice to stop, look, and listen; like to my recent interview!

Recently, Greg C Viloria (Twitter: @SocialGreg ) with the Nerd Stalker interviewed Taffy Williams, the author and voice of the Startup Blog. The discussion centered around two of the recent articles found in Startup Blog and the Examiner: “5 Stages of mourning entrepreneurs may experience” and “5 Reasons real leaders must listen and understand.”

The total interview is available at the following link: Nerd Stalker interview. I hope you will find it interesting and useful.

All of the articles in the Examiner and Startup Blog come from real-life experiences. The articles discussed deal with issues like: 1) Founders of startups suddenly ousted by investors, 2) Listening and understanding, and 3) Trusting the people you hire. Excerpts below are quotes from the interview.

“In this interview, Taffy talks about how his experiences are reflected in his blog.”

“.. If I Had Only Done This Differently...”

"...the communication between people is not always as crisp as you think they are"

"...you are hearing what you think you want to hear"

"poor communication creates a problem when you provide people with direction"

"Sometimes the (5) stages (of mourning) occur rapidly or may skip one but you may experience all of them"

"this (stages of mourning) can happen if you lose your job, you've been replaced, or your company fails...loss of a love one"

"Some people can't get out of the depression and anger phase and that can influence their ability to get a job"

“The five stages of mourning are Denial & Isolation, Anger, Bargaining, Depression and Acceptance. Most people go through these stages when a traumatic event happens in their life. Losing a job is in the Top 10 stressful events as characterized by Holmes and Rahe stress scale where death of a spouse the highest. Taffy explains that some of these stages can be paralyzing if one cannot emerge from each of these stages to finally reach acceptance. Taffy has gone through this personally over his years of experience and his advice to startup founders is "have an exit strategy" because something can happen at any time.”

I wish to thank every reader for the time you devoted to reading and promoting the articles. This is my 200^th post on Startup Blog and the Examiner now has 102 posts. Of the more than 300 articles, the number of reads is more than 250,000. I am grateful to all the readers and hope the information is useful in your endeavors. I welcome your comments and questions, as this is a way to extend the value of what you obtain from the provided information.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

Questions for assessing risks and rewards

2013-03-06T13:08:00.000-05:00

Does the reward outweigh the risk?

The article “Risk and uncertainty stymies decision making” described the impact of risk and uncertainty on making decisions. Being unsure of outcomes and aware of possible risks has a negative impact on the decision process. When the potential for reward outweighs the risks, the decisions become easier.

This consideration is often part of the design of certain clinical trials. Prior to starting certain cancer trials, a common question may be, “does the potential benefit to the patient outweigh the risks?” This is especially true when the disease is in the last stages and there are no other alternatives for the patient. The patient experiencing no potential harm may gain a benefit so the study proceeds.

The issue of weighting risks and potential rewards come in everyday life. The photo above was taken after the photographer had been told the story below.

A tourist was visiting Page, Arizona and wanted to see Horseshoe Bend. The limestone that forms the structure is in sheets and has potential to sheer. The visitor was on the edge looking down. As the story goes, the limestone gave way and the visitor fell more than 1000 ft. to his death.

The risk of demise to the photographer was similar to that of the visitor. The perceived reward was obtaining a good photo. Taking the photo in stages and splicing the images together solved part of the problem. The risk of sheering the edge was reduced by lying flat to spread the weight while shooting down the cliff face. The risk was always there and taking the photo in limited steps reduced risk to the point where the photographer felt comfortable enough to complete the task.

The ability to reduce risk occurs in making financial investments. Some people will hedge stock investments by using options or other instruments. Investors may invest in mutual funds or select several companies to spread risk. Potential reward is higher with greater risk, but well-informed non-professional investors usually take the conservative route to protect what they have.

Areas you may wish to explore in risky situations:

1) Tranche: Sometimes staging the approach to the situations lessens the risk. Take a few steps, reassess the issues, and take more steps. The process of stepwise approach may allow you to stop before your exposure becomes too great. This step may help in many situations like testing a new service provider or manufacturing partner.

2) Share: Occasionally, having others participate alongside you helps share or spread the risk. VCs tend to do this when they form syndicates. They may use the Tranche method in addition to reduce risk even more. If your business fails, they do not lose as much. The sharing can apply to a variety of risky situations in your business like shared sales, marketing, or product development.

3) Diversify: Selecting more than one vendor, supplier, or sales person is a way of reducing risk. The risk would be that one of them leaves abruptly or fails to deliver. In investing, one can invest in more than one opportunity or company. Diversification tends to average out risks of losses with rewards of higher performing activities. Single product companies can diversity by adding new products. This reduces the risk of a product failure.

4) RUN: Everyone should monitor the risk to reward aspects of business situations. Set parameters that you feel you can accept and learn to GET OUT if the risk levels are too great. Going over a cliff is no fun and neither is losing all of your investment. That investment can be progress attained in your business or your money. Run away so you can return to fight on a new day!

5 Actions opportunistic entrepreneurs use to build business

2013-03-04T15:44:00.000-05:00

Would you have thought riding a bike 26 miles from here was a business opportunity?

Your surroundings offer many different opportunities for new business. One of the more common statements entrepreneurs provide in meetings with potential funding sources is “We are opportunistic.” This statement translated means: “if we see something big, we will capitalize on it.” Entrepreneurs are opportunistic by nature and always seek ways to create or increase value whether it was planned or unplanned.

Opportunity often shows up in unexpected ways and once recognized related businesses locate in the near the area. A great example of this takes place in the tourism business. Haleakala National Park resides in Hawaii on the island of Maui. The extinct volcano is around 10,000 above sea level. Someone determined that providing rides to the top to watch the sunrise would be a business. Providing the ride to people that like to bike extended the fun for tourists. Today many bike shops host bus rides to the top to view the sunrise and they outfit the tourists with bike equipment for the 26 miles downhill back to the bike shops. This type of opportunistic activity shows up in resort areas and the business founders are entrepreneurs capitalizing on their surroundings.

Similar opportunities take place in the technology space. Founders find a way to better connect people on-line and create the businesses Facebook and LinkedIn. Other entrepreneurs recognize opportunities in related businesses that may enhance the experience and improve on connectivity and sharing. The new businesses may not be as disruptive but they are new businesses capitalizing on the surroundings.

Sometimes the opportunities are obvious while others require a leap of logic to recognize them. Your ability to either innovate and create a new area or see a fit in an existing space is important. You may not recognize many opportunities no matter how obvious they may be. For example, the article “5Steps toward rebuilding your creativity and innovation side” provided an example of a missed product opportunity. A second example is the case of a scientist working in the nuclear magnetic resonance field. When asked to join a team developing new and novel equipment he declined thinking the new field would go nowhere. What he turned down working on was the MRI found in many hospitals. Missed opportunity or not, he failed to recognize the potential.

Your objectives should be to enhance your ability to recognize opportunity and increase your ability to create and capitalize on it. A few steps that may help in the training are below:

1) Survey surroundings: Many of your business ideas will come from a survey of your surroundings. Problems or needs of others can serve as a clue. Services that people may enjoy like the bike trips or restaurants in resort areas may be a little simpler to recognize. Treatments for medical disorders are more prominent, but may be harder to solve.

2) Recognize opportunity: The opportunity for business exits where a sufficient market is available to provide the desired revenues. Income levels need not be the same for a small business owner compared to founders in technology or medical areas. Try to not discount ideas too quickly because it may be the big one!

3) Assess market: The market must be sufficient and sustainable. You must have sufficient service or sales over prolonged time to sustain the business. People must want what you have!

4) Plan: Sufficient planning and organization of thoughts are important to developing the proper steps to start the business. You will ensure the best chances of success by conducting sufficient research to understand the sector, markets, and need.

5) Act: Carry out the plans and prepare to adjust the path should the situation be required.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

5 Steps toward rebuilding your creativity and innovation side

2013-02-26T10:14:00.000-05:00

What do you see in this rock formation?

Children are extremely creative and imaginative. They see many opportunities that adults tend to overlook. Maybe it is because as we become adults our tendency is to become more mature in our thinking and novel ideas are considered as daydreams and unrealistic. Perhaps, we fear being ridiculed for ideas that may be unique and creative. In school, our educators aggressively drilled us in the facts and did not stress the creative side. It is difficult to say what happened from the kid stage to the adult stage and it was likely different for everyone.

Kids often see things that adults miss. The photograph of a rock formation may not look like much to you. The kids standing in front of it thought it was the image of Mulan the lead character in a 1998 movie. Maybe you can start to get your imagination back by looking for the character. Seeing alternatives to the normal and expected is a skill that needs further development. You had a childlike imagination once; maybe it is misplaced now.

Remember when you were a kid and received a present in a very large box. Perhaps to many of you, the large box became the focus of attention rather than the gift. The box could be a house, fort, tent, hideout, private meeting place, or anything you wanted it to be. You let your mind determine the needs at the time and the box took the shape of your imagination.

In building a room many years ago, a sibling managed to go to a section of the room with some crayons. Clearly, no adult was around, so the child did what most any child would do to the walls! The father returned home and the wife apologized for the newly decorated walls. The parents asked the child what that was on the wall. The child said a “RABBIT!” It did look like a rabbit and the parents just laughed and repainted the wall.

Hard to imagine there was the potential for invention in that incidence, but there was. Years later, the father was in a university discussing a new technology with a professor. The discussion came to a point that a blackboard was required for drawing certain structures. The father turned to look for a board as the professor handed him a marker. Not seeing a place to draw the structures, he asked where the board is. The professor said “each of the walls.” The professor had the walls constructed of erasable white board material. He said write any place you like, I did this at home for my kids! They love it.

The father missed an identifiable problem present at the time of the rabbit drawing because he was thinking too conservatively. Kids draw on walls and covering it with paint is a natural solution. Making the walls to be erasable was not normal at the time. The eventual solution was a creation of someone else that invented something unique and interesting.

The following are few things you can do to enhance your creative and innovative side. Maybe in time we can improve our skills to be more creative and innovative. The following are steps that can apply to your everyday life.

1. Do not dismiss what you see: Too often, we see things that are not normal to us, like drawing on the walls. It is a problem needing a different type of solutions. We ignore the alternatives or fail to consider the issue a problem because it is too easy to repaint or wash the wall. Many issues have creative or innovative solutions if we just think about them. The new solutions do not need apply to the triggering event; the solution can be an idea for the future.

2. Identify problems: Inventions and creative actions occur many times when trying to solve a real problem. After all, solving a problem for you may solve a related problem for others too. Seeing the problem is an important step. It is hard to fix something that is not broken!

3. Study the issues: Every problem has issues associated with it. The background info may be something you can learn from books. Maybe you can learn about the issues from speaking with others. Alternatively, you can take the issues apart and assemble them again considering changes that may be improvements. Understanding the problem and potential solutions are the next step.

4. Test-drive the solutions: Recognizing a problem and studying the issues often leads to alternatives that solve the problem. Testing those solutions is an active component to a final resolution. In testing, you may see places for improvement and modification.

5. Finalize solutions: Testing and modification lead to the final solution. Perhaps it is something you will find useful for a new business. Maybe it is something with partnership potential leading to a developed commercialized product. Alternatively, it may be a simple improvement in how you conduct your life and have little commercial application. After all, many inventions never become commercial products.

The goal could be to keep your mind active and creative. Improve that creative and innovative side you had as a child. Why miss the joy of creating something novel that others failed to see? You may find it fun and exciting, or even make money on the new idea.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

5 Reasons real leaders must listen and understand

2013-02-20T10:28:00.000-05:00

Make sure you did not turn off your hearing or tuneout your team!

Many years ago, a one of my relatives wore an older version of hearing aids. The device reminds one of the pocket radios with wired earphones. This person had been married for more than 60 years. He was fun to be around and always had a great sense of humor. His wife would often start those discussions that seemed to be more like nagging. At this point, you would see him reach in his pocket and pull out the receiver for the hearing aid and TURN IT OFF! In an instant there was no more nagging, even though the discussion on her end continued. The smile on his face said it all!

The funny thing is that many managers have a way of tuning out without turning off the volume. They hear sounds but do not listen. If they hear the words, they may fail to understand. Even if they understood and heard the issues, they failed to communicate with the team. Failure to listen to your team, understand their issues, and engage in meaningful dialogue has potential to enhance potential problems. A few reasons for this are below:

1. Lack of trust: Your team needs to believe in your abilities and understand the motives. The goal is the alignment of ideas, directions, and activities. Trust is an important part of the process. Your team must feel you are worth following and not leading them over a cliff. You cannot lead if they will not follow: i.e., all you can do is dictate. They will never follow someone they fail to trust. Why should they ever follow you if you never listen to them, communicate with them, and consider their ideas?

2. Poor commutation: Communication with the team must be clear and concise. They must understand the goals of any project. A team that understands the programs and directions may see things you miss. Poor communications and lack of trust among the team, ensures they will NEVER provide any ideas or bring up potential issues.

3. Error creation: Missing major flaws or errors in design of programs or products can be deadly. Customers fail to return if the products do not work properly the first time or if they are overly complex. Discussions with your team may identify flaws or logic problems. It is critical to your business to identify these issues early and fix them before it is too late.

4. Milestone misses or cost overruns: You spend lots of time raising money to build the business. You promise to meet certain milestones on time and within budget. Does your team agree with these? Returning to investors to say you missed these key objectives is a terrible discussion to have and the reasons generally do not matter! Your team’s involvement and concurrence with these parameters ensure they will do everything they can to meet the goals. They know the company must look good to the investors.

5. All alone: This is an important point, there is no I in TEAM. You may not understand the true problems because your experience in the area is limited. Ignoring your limited understanding and not engaging the team so you can learn is a recipe for failure. Failure to communicate and develop trust will leave you all alone. Some people may like being alone for a while, but you may become one of the real reasons for failure of the business. Try explaining that away with your investors!

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

5 Tips on being more than a YES man or woman

2013-02-18T10:02:00.000-05:00

I am not going to do that!

Fear of losing a job makes people less than honest in the workplace. This is especially true when it comes to providing negative feedback to or following directives from the boss. Bosses can be difficult at times. Informing them that they are wrong may rub them the wrong way: especially when it happens repeatedly or in front of others. The question employees must examine is whether they are giving their best performance at work when they are not alerting the boss there may be a better way or of impending mistakes.

Many people are terrified just speaking to the boss. Bosses are people and they make mistakes just as anyone can. Developing a relationship with the boss can be more than agreeing with everything that said or requested. Clearly, you must do what the boss requires as long as it is legal and ethical. However, there are ways you can approach the boss and provide more value to the workplace.

Keep in mind that the boss usually wants to do the best possible for the business. They do not want big errors that cost time and money for the company. Bosses look for promotions just like the employees and they the same desires as anyone else. The following are some ideas on being more than a YES person, when you should be saying something else.

1. Develop a relationship: Learning to interact with the boss without fear requires development of a relationship of some type. It is not necessary to be best friends, but you do need to be able to speak frankly, when needed. Learn to recognize what the boss needs and when needed. Make an effort to help meet timings and milestones. Understand the job and determine what it takes to be an excellent performer. Bosses tend to listen to those that are their best performers.

2. Improve on ideas: Knowing the business enhances your chances of seeing ways to make improvements. Bosses like ideas that make things better, cheaper, or bring more harmony to the work environment. Such ideas tend to be better accepted. When the boss provides something less than a perfect plan, you may see ways to make the plan better. Improving on the boss’s idea may be a way to improve on your easiness of speaking frankly. Yes, the boss likely will get the credit, but who gets credit should not be your goal.

3. Do it in private: It is generally better to approach someone in private to discuss a way to enhance or improve a situation at work. No one likes being corrected in public, especially the boss. Offering the suggested changes in private may allow you to expand and explain the situation and make it clear. In fact, make an appointment or determine ask how much time the boss has before starting. You want to make your point but not in a rushed manner. You want the boss to listen and focus on what you are saying with as few interruptions as possible.

4. Do it politely: The boss is the boss. Being argumentative or ugly rarely works and just causes people to tune out. Show respect for the person in charge and demonstrate that you offer the suggestions to improve on the business or prevent a serious issue down the road. Present your case carefully and in a well thought out manner. Limit the number of visits to those that you believe are most important to alter a path or decision. Constant nagging tends to be a turnoff!

5. In the end, do what the boss says: You have offered all the arguments and suggested changes. You have done so in a professional manner. You may not understand the rationale, but you do need to do what the boss finally decides. This helps the person understand that they can count on you in different situations. In time, it may help the boss become more attentive to what you offer.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his companywebsite , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group StartupGroup on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

2 Words of advice for new and serial entrepreneurs

2013-02-14T09:24:00.002-05:00

Make your dreams a reality !

I do not know anyone that ever dreamed of going to work to make minimum wage. Perhaps there are people that dram of minimum wage jobs and I hope they achieve it. On the other hand, entrepreneurs tend to have significantly larger dreams. They see their objective in life as a way of changing the world, creating a huge business empire, having their own business, or many other things important to them. Those dreams enhance the drive for the entrepreneurs to achieve something great.

Your dreams may take you in directions different than you ever anticipate. Wanting to be a famous scientist working in a university as a full professor may be something a child sees in the future. Maybe they want to cure diseases of the world by inventing the cures. For others, being an educator and teaching children could be a lifetime dream. Dreams are about doing you find exciting not simply about being famous or rich. Early in life, you may desire to create new things and be a scientist. Later, you become excited about business. One day the two dreams come together and you create a company based on some new technology: i.e., dreams change and can morph into new dreams.

Excitement and desire are what drive people to achieve their dreams. This is the reason in a recent article, “4 Steps to overcome inertia and build a business” the first objective in overcoming inertia is to create something exciting to you. People have all kinds of dreams but you never see them striving to achieve dreams of failure: that is not exciting. It is hard to build up the energy to go after a task you know will end badly. People want to create or do things they find exciting and fulfilling. This is what entrepreneurs do. They find that overlap of a dream with reality and move forward to do something greater.

Search the internet for “you die if you stop dreaming.” Many articles on entrepreneurs and their dreams cover this topic. A recent Facebook article from a friend described a woman in her late eighties having returned to college to finish her degree. She became friends of many of the classmates and finished her degree. She achieved her lifelong dream and died shortly after. Death does not have to occur by loss of life. You tend to lose all that energy and drive when you are not struggling to achieve something new and exciting to you. It may be ok for some to have daily unchanging routines and have no desire to do anything else, but for an entrepreneur is horrifying. They cannot imagine living life that way.

One saying you may have heard growing up is, “You can do anything you really want to do.” For the most part this is true. The flipside is “You never achieve things you do not attempt.” Entrepreneurs experience failure for many reasons. They grieve and many recover to try again. When the entrepreneur stops dreaming, they kind of die inside and lose some of that zeal for life. For this reason, it may be better that you never stop dreaming. You may have guessed the two words of advice already. In case you did not, the two words are “DREAM BIG!”

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

Repurpose a business or a product to create success

2013-02-11T16:00:00.001-05:00

This cat is not what it seems to be!

Repurposing has a long history in business. If something does not work for one area, maybe it will work for a different one. Take our feline friend in the photo. It looks like a playful pet, but it was repurposed to be a KILLER. Yes, it lives in a vineyard and it eliminates animals that destroy grapes. The farmers grow roses near vineyards to detect insects or diseases before they can kill the grapevines. Certain types of waste create fertilizer and make the plants grow better. Repurposing takes place when someone becomes creative and finds a new use for something.

In the drug industry, patents expire allowing the products to become generic. Many inventors will explore the use of these off-patent products for new indications attempting to obtain patents for the repurposed drugs. Equipment once used for manufacturing or research supports new and different areas. People move to accept new tasks to support the new products since they no longer needed for the old jobs.

Repurposing takes place in businesses and with business names. Sometimes, a tired product or business that failed for one reason or another is adopted and rebuilt. The owners of Twinkies are working to find a buyer. The name will likely stay the same because of the wide recognition of the product. Name recognition is very important to products. Repurposing of names takes place in the investment banking area where new owners acquire the name and attempt to rebuild the business. You may not even recognize that the sale took place, but you may recognize the name now owned by new owners.

In a recent discussion with an investment banker, I learned of an acquisition of big name banking group. The management was changed and new people recruited. The leader of the team developed a strategy to work with certain companies that other firms had failed to help. Extensive planning resulted in new successes that benefited the bank and the companies. The name of the bank remained the same, but everything in that business is different! A new company was constructed using the repurposed name.

When is building a business, a valid strategy is to acquire a recognized business or product and re-invigorate the product or business. You need creativity and management skills to carry out the activity and be successful. The creativity helps you determine the reason for the failure and create a unique and new strategy to make it a success. The management skills allow you to bring all the pieces together and direct them toward a target of success.

Repurposing comes in different forms. Have you ever heard of WD-40? This is a product originally developed by Rocket Chemical Company and first used by Corvair to protect the outer skin of the Atlas Missile. The founder started putting the product in cans as an aerosol thinking home uses may be possible. It took from 1953, when first invented, to 1961 for the first truckload to be shipped. A company was born from creativity, innovation, and repurposing!

When you think of your business, keep an open mind. You may find that a different direction may take your business from OK to FANTASTIC. Your goal is success, not sticking with your original tired or poor performing product.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

4 Steps to be a CEO in the KNOW or plan to GO

2013-02-06T13:34:00.000-05:00

The greater the EGO the greater the FALL!

An entrepreneur with a great idea and drive is unstoppable. They will aggressively pursue the development of the business in every way possible. Some of the entrepreneurs have even done it before which emboldens them to pursue the next company. Their drive and great idea do not provide the expertise on running the business. For this reason, some companies seem to languish from the founder’s lack of ability and knowledge. Sure, they can prepare business plans and slide shows. They may even know how to raise capital. All the pieces to create and launch the company are there, but sometimes the management ability is missing. A business has many moving parts and the CEO must keep them operating well-oiled manner. Some CEOs are simply missing the needed management skills for that business. They also retain an attitude that “this is my company and I will run it.” This attitude can get in the way of developing the best operating business and making money for the shareholders.

Founders can miss the signs that they are out of their element. The signs exist, but most people are unwilling to point them out for fear of making the CEO mad. The CEO misses them because of feelings of ownership and allowing ego to take charge. It is a difficult task to deal with the issue. Ultimately is the Board of Directors and/or the investors that are stuck with the horrible task. They must find a way to bolster the skill set of the CEO, supplement the skills by additions to the company, or find a new leader. Resistance of the CEO to the forced actions can create conflict, which further complicates the task.

Your best way to ensure you are not the CEO that causes such concerns is to develop an awareness of attitudes and encourage feedback. Remember, “You do not know what you do not know.” You can also try a few of the following:

Obtain feedback: Taking negative feedback and finding steps to improve can take you a long way. The key is to find a way to convince people to provide the information without fear of retribution. You will not know what to change without the info! Once you have the data, develop a plan of personal improvement.

Supplement management: No one is perfect at everything. You may have skills that cover part of the company but not in the other. Find a way to assess your strengths and weakness. Consider supplementing them with hires. One example is a CEO with great fund raising and finance skills and no operational skills. Consider finding a COO to run the day-to-day activity! Alternatively, picking team leaders for different areas may help.

Board members, mentors, and advisors: Trusted people willing to take time to coach or supplement your skills can be a great way to improve. This requires having a listening relationship with these individuals and taking the steps to try what they say. You may be able to adapt their ideas or improve on them. Always try to develop your skills and move in an ever-improving direction.

Plan for departure: The last thing you want is to kill the company due to your lacking skill set. You may never be able to adapt to the job because the company outgrew you. This actually happens to some people. The best think you can do is to recognize it and work with the Board to find an appropriate replacement. After all, your duties are to the shareholders and to improving the company valuation.

A Bridge Too Far

2013-02-04T09:55:00.004-05:00

“A Bridge Too Far” is the title of a book and a movie filmed in 1977. The film and book provide a 1944 account of the unsuccessful attempt of the Allied forces during WWII to out-flank the German troops during Operation Market Garden. A difference of views on the success of the mission exists, but the leader of the Allied forces on the mission implied the mission was not a success. The mission failure was partly due to the inability to hold the Arnhem road bridge. As rumor has it, one of the generals suggested the effort was a bridge too far, meaning they went further than rear-supporting infrastructure would support them.

Developing a business is like fighting a battle. It requires development of appropriate infrastructure. The timings and meshing of all activities must support the drive forward. Failure to meet a critical milestone or initiate an important effort can dramatically affect progress. This is part of the reason that project planning is so critical to your business.

One excellent example of the critical role of project planning comes in the development of drugs in the pharmaceutical industry. In pharmaceutical development, project planning is ESSENTIAL. Clinical development can take more than 5 years with costs ranging from $20 - $500M. The FDA regulates all drugs and their approvals. The FDA requires that submissions for approval include the manufacturing data for commercial supply. This includes demonstration that the commercial supply works properly as demonstrated by data collected in the final phases of drug development.

Manufacturing of a drug and scaling up the process can take significant time. In some cases, the timings for the scale-up are a few years. The matching of the manufacturing and clinical development timings are essential if the company wants to incorporate the drug made by the scaled-up process into the final phase of the clinical development: a necessity since the data is ESSENTIAL to an approval by the FDA.

The marketing of a drug must be consistent with the FDA approved claims for that drug. For claims to match the marketing efforts, design of all clinical studies must support the demonstration of the drug ability to perform as claimed. This means that all clinical study designs lead to the demonstration that the data proves the claims are valid. Failure to match the data to the claims will result in an inability to market the product in an appropriate manner. The whole business process in the pharmaceutical area requires a serious match up of timings and development of supporting infrastructure. Failure to plan and properly support each activity can lead to delays, failed approvals, poor marketing data, failed product launches, and more.

Similarly, technology companies must plan their efforts and ensure the proper infrastructure is available to support development and marketing. There may be differences in regulatory structures, manufacturing, and marketing, but the matching of each phase of the business is essential to proper development. It is essential that as the leader and founder of your company that you develop parallel efforts and overlay them to ensure a match of all phases leading to the final product. Then develop proper infrastructure and support to ensure their success. Otherwise, you risk going “A Bridge Too Far” and may fail to reach your goals!

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

Remember the square and round pegs must match the correct holes

2013-01-31T09:41:00.002-05:00

Match the people to the correct task!

The matching of shapes seems like a simple concept. Fitting pieces into a puzzle requires matching shapes if you want to see the final picture. Putting Legos together to make a recognizable form requires a bit of skill and vision of what the final product should look like. Building a home or office building requires planning the assembly of the pieces to achieve the final stable and attractive form. The matching of pieces of something is critical to building everything. This includes building a startup.

Entrepreneurs spend time studying to prepare the business plan and slide show. They obtain the IP rights required to own the technology. They carefully select advisors and mentors. The assembly of the business structure and form is like putting a puzzle together. Matching square pegs to square holes and round pegs to round holes.

Once the business is ready, the entrepreneur starts to recruit top employees to create a team. Some entrepreneurs have prior experience recruiting and managing personnel, while others have NONE. Recruiting and managing personnel is more than picking the best and brightest. The matching of skills and personalities is just as critical to proper team construction. Place the wrong people in the wrong spots and they will be unhappy, perform poorly, or be disruptive. Hire poorly and you can end up with a very dysfunctional team: read “Supervising Snow White and the 7 Dwarfs.”

Some of the best people may be terrible fits for your startup. They have the skills but are unable to adapt to the environment. The personalities may mismatch with the team. Your lack the ability to place them in the correct job or your management style is bad for that employee. The meshing of people to the correct positions and ensuring a highly functional team takes practice and tuning. Hiring them and assigning a role followed by lack of monitoring can lead to disaster.

A recruiter once stated that a question asked during the hiring process is, “What do you need to do your job?” Running a lean startup is different from working in a Big Company. A tentative employee that provides a laundry list may need that level of support. An employee that says a checkbook and a rolodex might be a better fit. Hiring a project manager is important in some companies. Project managers keep projects moving properly and meet the milestones on time. Hiring an imaginative, inventive, idea person for this position may be a horrible fit because they require a more creative role. Tasking them with a job requiring a high level of focus on detail and timing will be boring and constrain them.

Keep in mind that building a business does require fitting the pieces together and placing them appropriately. This includes the PEOPLE! The team should be highly functional and mesh well. They need to work and play well with each other. This requires a great fit for all to ensure they are happy and productive.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his company website , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

Teflon Man as a nickname is not a complement

2013-01-29T09:52:00.002-05:00

If these are hanging on your door, consider seeking help!

People use a wide range of styles of managing their businesses. The styles often reflect the personality and previous experiences of the individual. Some people are true leaders and can attract a team that will follow them anywhere. They are confident, coach their team, help them achieve goals, and share the glory of a success. Good managers have learned that “Fixing the problem, not the blame” works well and makes everyone happier. Then there are those managers that have not learned that “Freaking out is not a management style.” As problems occur, they attach blame to their subordinates. They never accept responsibility. Since nothing ever sticks to them, they get the nickname “Teflon Man.”

Managing people in a leadership manner requires understanding the limits of individual abilities. Pressing employees to work harder and faster is OK to a point! When the pressure causes an employee to exceed his or her limits, mistakes become more frequent resulting in missed milestones or wasted money. Sometimes the errors can be catastrophic. Recognition of the error is easy; the problem escalates when the manager insists on blaming others for the error. The Teflon Man always takes the stance that the error is never their fault. They pass judgment and tell senior management the employee was at fault. They see the fix for the problem as disciplining or removing the employee.

Employees do make mistakes! If you hire well, trust and help the employees improve their abilities. Coaching the employee and helping them become better should be one of a leader’s objectives. Having a well-trained and confident team that works without fear is a blessing. They will try harder and accept responsibility for mistakes they make. They will offer more ideas and contribute more as team members when they are not concerned with continual negative feedback.

Teflon coated people are promoted because they never make mistakes: “their team makes them!” Management that does not recognize this behavior fosters the activity and enhances the discontent of the employees. The employees will always be concerned for receiving blame when they were not fully responsible. Making errors in this environment may cause one to try to hide the problem rather than fix it.

Taking risks is very much part of building a startup. Working faster and harder is an important part of building a successful business. Combining the risks with the speed can lead to errors. There is often a shared responsibility for the problems. Development of a successful company arises when successful problem solving takes place and errors are rapidly fixed. Getting input from everyone and having them work without fear facilitates better solutions.

If you are the Teflon Man, try changing to become a leader. Coach your team and help them become the best they can be. Teach them there is no reason to fear you or making mistakes. Seek solutions that resolve problems and encourage the team to be part of the solutions. You may find that the business environment leads to more creativity, successes, and enjoyment among all that work there.

Lack of social networking may hinder investment in your company

2013-01-23T11:54:00.001-05:00

Originally, I would have thought this title was insane. How can such a statement be true? The answer resides in that type of company you have and how investors view you as the CEO and leader of the business.

Take as an example a company planning to develop a business creating a software application intended to bring customers and service providers together. You develop a business plan demonstrating the value proposition of the business. You offer the marketing strategy in the plan and show how marketing would be to both service providers and potential customers. Perhaps you intend to use the internet social networks to help launch the program and help bring the customers together with the providers. Remember this is hypothetical!

The investors review your slide show and invite you to present to formally to the group. You make an excellent pitch and the investors love the company. The investor group is happy with your answers to some of the initial questions and they elect to move to a formal diligence process. If you recall from previous posts, your company is not the only one the investors will see at any given time. They may see several businesses, which could even be similar to yours.

One of the factors reviewed in the diligence are the people. You can consider the people review any way you want, but be assured that the CEO is one of the team reviewed extensively! CEOs are the face of the company and investors often review a wide range of topics, like the following:

· Contact network – The CEO must be able to generate partnerships and raise capital. Investors want experience and reach to companies and the investor pool. Leaning on the job for this one is a minus attribute.

· Ability to excite investors – The CEO must be able to present a great story to investors and convince them to invest.

· Understanding of the business – The CEO must understand the business and markets. This includes the aspects of how the marketing is to take place and management of the process.

· Leadership and team building – The CEO must be focused and be able to lead the team to achieve the milestones that create value. In addition, the CEO must be a person that can attract talent to the company and keep them happy once they join.

Remember, this article is a discussion of whether you are at a disadvantage because of not having a social network established. The proposed business presented data showing they planned to use social networking as part of their marketing strategy. In diligence, the investors learn that the CEO has no experience in social networking but a different company looking like a great investment has a CEO with such experience. Both investment opportunities appear to be great to the investor group, but one CEO is less experienced in social networking.

You can guess what the investor group may do. In fact, the company and description are not related to the actual case, but the passing on an investment because the CEO was not familiar with social networking actually occurred. YES, the group passed because the CEO was not experienced with social networking! So in short, if your company has social networking as part of its projected operating plans, your lack of experience may cause an investors to pass on the opportunity.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his companywebsite , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group StartupGroup on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.

All I need is a lead

2013-01-21T14:50:00.002-05:00

Entrepreneurs raise money from a range of sources. Initially, funds may come from family and friends but eventually the funding requirements escalate. Road shows become commonplace and visits to a large number of funding sources becomes a major activity. Entrepreneurs receive feedback from the investment professionals and often there are statements of interest. One such statement is a bit misleading: “I will invest in your company once you identify a lead!”

This comment alone brings great joy and excitement to entrepreneurs, including the veterans and first timers. It is hard to imagine that someone expressing a willingness to invest in your company should bring anything other than excitement. However, there is a catch.

In a recent article, several questions were listed that may help you in your attempts to raise working capital. One of these is, “Do you lead or only follow?” Your visits to the funds must include a mix of those willing to do the heavy lifting and lead transactions. It is possible to spend large amounts of time identifying followers and never find a lead. The result is that you fail to close on a financing.

Failure to find a lead becomes an easy way for followers to weed out the crowd of companies seeking money. It is easy to express interest and not conduct diligence until the data is presented by a lead they trust. If no lead shows up, the follower is done with you! In fact, even with a lead, they still may not invest. Their seeming willingness to invest if you have a lead is exciting, but it is a maybe and NOT a firm commitment! It is amazing how many times the statement of interest is pronounced. Nearly every entrepreneur will hear this form of investment interest multiple times in his or her career. The interest disappears later when a valid lead appears. One hears excuses like “we recently invested in a different company in this space.”

Keep in mind that a lead investor may never step up. In this case, you may have many potential followers but never get them to invest. A valid lead investor may not wish to have your followers as part of the syndicate. Many times, lead investors want other known investors working alongside them.

The point of this article is that you accept the statements of interest with cautious optimism and place more emphasis in finding investors that will lead a transaction. Entrepreneurs have reason to be enthusiastic, but should not go overboard because the statement of interest is not a true commitment. Especially, do not make the common mistake of bragging about all the investors you have lined up. Think of it as a bunch of definite MAYBEs! Approach the remainder of your fund raising tour with a realistic understanding of the situation. Remember, your financing is not complete until the money is in the bank!

Negotiating tips summary and links

2013-01-16T10:12:00.000-05:00

There is not magic wand in negotiating, only hard work!

4 Tips for better negotiations

· Negotiating starts at your first interaction, Learn as much as possible, Watch where you set your anchor, Do not be afraid to walk away

Negotiating a business deal requires significant planning and discussion

· Do your homework, Deal benefits, Perceived value created, Deal terms constructions, Analysis and adjustments

Egos can kill your business deal

· Three things can kill a deal; valuation, location, and EGO

Negotiating sometimes walking away is required

· It is better to walk away than do a BAD deal

SMEs get more of what they want – 8 Tips

· Tips from a great negotiator @TheCliveRich or http://cliverich.com/

Think ahead when you are negotiating rights

· Planning is essential

Bring something to the party when working with others

· Getting deals done mean you have something the other side wants

Indecision can kill your business

· Taking your time if fine, but indecision will cause you the loss of business

Entrepreneurs must excel at selling

· You are selling to the other side in negotiations. They must want what you have to offer.

Entrepreneurs experience piling on

2013-01-15T12:51:00.000-05:00

Piling on in football implies that the opposing team members have jumped on the pile of bodies of a tackled runner after the end of a play. Great energy and enthusiasm causes the team to over react and incur the penalty. Piling on is an event that may occur to entrepreneurs on their startup playing field. It occurs when numerous people or groups follow the herd after some company event.

Some events can be great for the management and the company. For example, a company has an extremely exciting and valuable technology and finds that potential partners, investors, or consumers clamor for rights or access. Consumers will flock to the stores to purchase the product and the company books huge increases in the sales and earnings. Developing great business deals when multiple companies want to partner allows for optimization of the deal structure to provide the maximum return.

Companies with the greatest excitement command the highest prices at the time of IPOs. Facebook for all the problems after the IPO was an oversold offering. This was due to the large number of investors wanting the equity. Apple produces products that are so desired that lines form at their stores just to be the first to obtain the latest and greatest device. This form of piling on has a benefit to the company.

The reverse can occur and piling on can be negative. Make investors unhappy and huge numbers will sell the shares out of fear or anger. Indicate a slowdown in production and the share price will drop like a rock due to the massive amounts of selling. In these situations, management must identify changes that will bolster public opinion and confidence. Stabilizing and reversing the trends are possible when the underlying business is sound.

The case where the underlying business is not sound brings out the sharks. People smell blood in the water and come after management and assets. Shareholders and debtors may take the management to court claiming activities that caused the loss of value. Debtors learning of a potential default go after assets in court trying to collect. Any news of problems causes many individuals that feel disadvantaged to pile on. Surviving and rebuilding the company becomes extremely difficult when this occurs.

Employees can become unhappy with management or feel compensation or conditions are unfair. They tend to approach management one at a time. Once some event triggers greater concerns, the problem escalates and employees become more organized or approach management in mass.

Managing the positive events is so much easier than the negative events. Balancing the positive becomes maximizing the return for the company. Dealing with the negative events becomes crisis management and survival. The management team may be able to tackle the issues one at a time, or handle the greatest concerns first followed by lesser concerns. Remember, it is possible to screw up great situations or to make the bad ones even worse. Your best bet is to always remain calm and approach all situations rationally.

Managing risk is critical to success

2013-01-11T15:10:00.000-05:00

Risk management includes your distance from the alligators.

People are different and individual tolerance for risk varies. It is amazing that many people will walk up to an alligator just to get a good look. The photo above shows two such animals just behind the tree. Standing from a SAFE distance, I saw many people approach the animals as if they were pet dogs. Some even took their children with them. Alligators have an ability to run at around 30 mph for short distances. They may attack if they are hungry or if they feel threatened. The lack of fear of those that move so close is something I just do not understand. The desire to see the animal over rules the sense of fear in some people.

Taking risks with one’s life or wellbeing can result in great harm. Harm may also come to those that take risks with their money. Loaning money to a person you know nothing about carries risk. The risk level drops if you know the person very well, they have a great stable job, they pay all their bills on time, and you know how to contact them. Risky loans were a good part of the financial meltdown around 2007 because of failure to adhere to proper standards some banks.

Holding company equity has risk just as loans have risk. Companies may grow and succeed but some fail. Even great companies can get into trouble and cause big losses for investors. If you doubt this fact, look at the history of certain banks from 2005 to the present; at least the remaining ones!

The same goes for startups and entrepreneurs. Evaluations of the risks are essential to investors. It does not matter whether the investment is as a loan or as equity. Managing the risk would be up to the investor risk tolerance and risk management style. One method of managing risk is extensive diligence on all aspects of the business and the people. Couple diligence with diversification of a portfolio provides further protection. For example, consider investing $100,000 equally over 10 investments with the performance of each investments being the following: 1 company increase 10 fold, 2 companies fail completely, and the other seven remain unchanged. An investment of $10,000 in each becomes $170,000. The fact that 2 resulted in complete loss was offset by a huge gain in the one that went up 10 fold. The example of portfolio management becomes more important when a person is managing someone else’s money. When you manage your own funds, you may elect to take greater risk. Managing money for others usually comes with a more conservative approach.

Fund managers and VCs manage money for other people. They must mitigate risk by selection of companies that fit a portfolio strategy. Balancing a portfolio may mean picking 10 different companies, but is can be further diversified by spreading investment over different technical areas or industries. Funds often have a lifetime, which results in return of investors’ money with profit or loss factored in to the return. VCs sometimes pick 7 years for this lifecycle. They may elect to invest in greater risk and potential big return companies at the start of the fund. Toward the end of the fund, the investments may become more cautious. This means that companies selected toward the end of the cycle are those that are more advanced, expected to have modest returns, and certainly highly likely not to lose value.

Funds have a responsibility to make money for their investors just as you do. They manage risks and develop portfolios like you as well. The decision to invest in your company becomes a balancing act for them. You may have a fantastic company but the investment decision is based on much more than the business. Eliminating internal risks in your business can help, but the management of risk for the institutional investor includes many factors. The point is that a turndown by an investor may not reflect negatively on you or your company. Investors may raise a new fund and your chances may be greater in their early stages. Try to understand the fund situation before your first visits. Knowing their timings and restrictions may help you understand their final decisions.

Entrepreneurs must live in the present and predict the future

2013-01-03T11:45:00.000-05:00

Failure to examine the path may lead to disaster!

Some entrepreneurs have been around the block; i.e., a nice way to say they have a bit of age on them. The age comes with experience and knowledge of things past and present. One of the down sides of the experience is trying to do what worked in the past without checking to see if it is relevant in the present. This is not as much an issue for the younger set and first timers. They have no history to draw from unless they get advice from mentors with “been there done” that experiences.

There is nothing wrong with trying what worked in the past. It is a good way to start. The error comes when one forgets to survey the present and determine whether what worked in the past is even relevant today. Sometimes, this strategy is outdated and overly complex. Take for example a reverse merger into a shell company. The laws for such methods have become more complicated and the waiting periods for listing on an exchange may make the process not suitable to what it being attempted. In the past, these mergers were more easily funded and were one mechanism of going public; today it is not nearly as easy and it takes much longer than other procedures.

Marketing is changing and even how you interact with your healthcare provider. Crowdfunding is new and it opens the door for some companies, but not so for others. The degree of acceptance of your services or products is altered by the ability for consumers to obtain information that may alter their decisions. When was the last time you went to the doctor without having done an extensive search on a health issue of concern to you? If you have not done this, you should. Your ability to speak more intelligently with the doctor may improve your understanding of what you should do after leaving!

The point made in this article is that history is a guide and may be a great starting point for discussion. Good evaluation of the steps you take to build your business requires your learning about the present and trying to predict the future as well. You may elect to go with past strategies because they are solid and well founded. This is great once you confirm they are still valid. The later part is essential. Trying to accomplish a task via an outdated process and failing to make corrections along the way may make your task much harder than it needs to be. Kodak for example, failed to adjust their strategies even though they could have dominated digital printing. There are other companies heading in the direction of being outdated and predictions are available for several large companies going that route if they do not change.

It is up to you as the leader of your startup to know when change is required. In a prior article, “The best guru for entrepreneurship and startup for your company”, the discussion of learning and taking advice suggested that you are the best person to make the final decisions. You have many people that provide advice and data. You must augment that advice and filter it to ensure it is applied in the most effective way. This goes for the seasoned professional as well. You know what worked in the past, but you should not stick with that process until you have vetted it properly. This includes listening to others and learning more about the present and predictions of the future.

The surprising aspect is that the more experience you have the less likely you may explore other ideas. This happens more often than one can imagine; I even do it! Learning to do things in different ways and modifying your strategies is critical to the PIVOT. You must learn to change with the times and implement successful programs. Sometimes, the successful concepts and actions are framed by the past, and then they are modified to fit the present and future.

Taffy Williams is on Twitter by @twilli2861. Email questions to twilli2861@aol.com. More is available via his companywebsite , photo website, or “LIKE” ColonialTDC on Facebook. You can also find him in the group Startup Group on Linkedin. Other articles are in the Charlotte,NC- small business section of Examiner.com.