Is Starting A Company The Right Thing For You?
Thursday, December 08, 2005
Starting your own company isn't right for everyone. It has nothing to do with skill-level, and has everything to do with personality and your current situation.
Based on his experience starting Carson Systems, a small web-based company. here is a list of personality traits you might need:
Read the full excellent post at 37signals.com
Tags: small business, start-up
Based on his experience starting Carson Systems, a small web-based company. here is a list of personality traits you might need:
- Self motivation - No one is going to tell you what you should or shouldn't be doing. Whether your succeed or fail is pretty much up to you (and a bit of luck).
- Open to risk - There's no guarantee that your company will succeed. Would you be able to recover emotionally, if it fails?
- Strong work ethic - There are some periods where you'll be working 18 hour days.* Can you do it? Do you want to?
- Driven - When things go wrong, are you strong-willed enough to push on? You've got to be fanatical about what you're doing. If you don't believe in what your doing, why will customers?
- Organisation - You'll get busy really fast. I'd recommend picking up a copy of David Allen's Getting Things Done: The Art of Stress-Free Productivity
- Humility - There are plenty of wise people out there who you can learn from. I freely admit that I don't know it all, which is why I read so many blogs (up to about 100 now). Free advice from wise people - what could be better?
Read the full excellent post at 37signals.com
Tags: small business, start-up
17 Most Common Mistakes Start-Ups Make
Tuesday, December 06, 2005
A seasoned entrepreneur, John Osher, reveals the 17 most common mistakes startups make and how to avoid them:
1: Failing to spend enough time researching the business idea to see if it's viable.
2: Miscalculating market size, timing, ease of entry and potential market share.
3: Underestimating financial requirements and timing.
4: Overprojecting sales volume and timing.
5: Making cost projections that are too low.
6: Hiring too many people and spending too much on offices and facilities.
7: Lacking a contingency plan for a shortfall in expectations.
8: Bringing in unnecessary partners.
9: Hiring for convenience rather than skill requirements.
10: Neglecting to manage the entire company as a whole.
11: Accepting that it's "not possible" too easily rather than finding a way.
12: Focusing too much on sales volume and company size rather than profit.
13: Seeking confirmation of your actions rather than seeking the truth.
14: Lacking simplicity in your vision.
15: Lacking clarity of your long-term aim and business purpose.
16: Lacking focus and identity.
17: Lacking an exit strategy.
, plus, the 5 things you must do to ensure success:
1. Know your goals for the venture. "A lot of people see an opportunity without ever asking themselves what they're doing it for," says Russo. "Are they trying to make a quick buck? Create a legacy? Have a lifestyle? There are a lot of reasons. It's critical that you know from the beginning what your goals are, because everything else is going to revolve around that."
2. Recruit and hire the best people. "It sounds almost cliché now to say I'd rather have an A team with a B idea than a B team with an A idea. The right team can fix a lot of problems. If you don't have the right team, you don't have much of a chance," Russo says. "Get the best people available at the time."
3. Develop a forgiving strategy. "Things are going to go wrong," he says. "They're going to be harder, take longer and cost more money than you think. You have to have a strategy to survive. A lot of people put together a plan that will work only if everything goes right. It's not going to."
4. Be honest with yourself. "Recognize shortcomings, weaknesses and problems immediately. Do not ignore them or try to talk yourself out of them," Russo says. "Address them head-on."
5. Commit to the business. "You can't really do anything significant without fully committing yourself to it. A lot of people try to dabble," he explains. "They think they'll do it part time [and] see how it works out. If you plan to be successful, you have to commit."
Read the full entrepreneur.com article
Related posts:
10 Mistakes Small Business Owners Need To Avoid
Top Ten Startup Rules
Tags: entrepreneur, small business, mistakes
1: Failing to spend enough time researching the business idea to see if it's viable.
2: Miscalculating market size, timing, ease of entry and potential market share.
3: Underestimating financial requirements and timing.
4: Overprojecting sales volume and timing.
5: Making cost projections that are too low.
6: Hiring too many people and spending too much on offices and facilities.
7: Lacking a contingency plan for a shortfall in expectations.
8: Bringing in unnecessary partners.
9: Hiring for convenience rather than skill requirements.
10: Neglecting to manage the entire company as a whole.
11: Accepting that it's "not possible" too easily rather than finding a way.
12: Focusing too much on sales volume and company size rather than profit.
13: Seeking confirmation of your actions rather than seeking the truth.
14: Lacking simplicity in your vision.
15: Lacking clarity of your long-term aim and business purpose.
16: Lacking focus and identity.
17: Lacking an exit strategy.
, plus, the 5 things you must do to ensure success:
1. Know your goals for the venture. "A lot of people see an opportunity without ever asking themselves what they're doing it for," says Russo. "Are they trying to make a quick buck? Create a legacy? Have a lifestyle? There are a lot of reasons. It's critical that you know from the beginning what your goals are, because everything else is going to revolve around that."
2. Recruit and hire the best people. "It sounds almost cliché now to say I'd rather have an A team with a B idea than a B team with an A idea. The right team can fix a lot of problems. If you don't have the right team, you don't have much of a chance," Russo says. "Get the best people available at the time."
3. Develop a forgiving strategy. "Things are going to go wrong," he says. "They're going to be harder, take longer and cost more money than you think. You have to have a strategy to survive. A lot of people put together a plan that will work only if everything goes right. It's not going to."
4. Be honest with yourself. "Recognize shortcomings, weaknesses and problems immediately. Do not ignore them or try to talk yourself out of them," Russo says. "Address them head-on."
5. Commit to the business. "You can't really do anything significant without fully committing yourself to it. A lot of people try to dabble," he explains. "They think they'll do it part time [and] see how it works out. If you plan to be successful, you have to commit."
Read the full entrepreneur.com article
Related posts:
10 Mistakes Small Business Owners Need To Avoid
Top Ten Startup Rules
Tags: entrepreneur, small business, mistakes
Small Business Advertising Problems
The two biggest problems with most small business advertising seems to be:
Via
Tags: small business, advertising
1. The message stinks. Advertising's main job is to inform and then persuade. If you aren't Nike, don't waste your money on a billboard with your logo. Most small business advertising I see is poorly written. Billboard, TV, radio, print, web - the words are the most important part of your ad.
2. The targeting stinks. Unless you are in a business that the general public actually uses, like a grocery store, advertising to everybody is a waste of your money. Many business owners have a false view of who is interested in what they're selling. "Everybody needs this." Maybe so, but not everybody is going to buy it.
Via
Tags: small business, advertising
88 Financial Calculators
Monday, December 05, 2005
Bankrate.com has 88 difference financial calculators that cover mortgages, home equity, auto, CD’s and investments, debt management, college finance, and personal finance. Basically, if you’ve got any money questions, there’s a good chance this page can help you calculate it.
With a calculator for loads of different situations (e.g., compare the cost of living between cities, calculate the true cost of paying the minimum on your credit card, and basically everything in between), Bankrate’s financial calculators are worth checking out. You may even come across a calculation or two that you should do, but haven’t thought of.
Tags: financial tools, financial calculators, mortgages, home equity, investment, debt management
With a calculator for loads of different situations (e.g., compare the cost of living between cities, calculate the true cost of paying the minimum on your credit card, and basically everything in between), Bankrate’s financial calculators are worth checking out. You may even come across a calculation or two that you should do, but haven’t thought of.
Tags: financial tools, financial calculators, mortgages, home equity, investment, debt management
Keep Your Staff Motivated During Holiday Season
More than two thirds of British employees think their colleagues are less productive at work during the Christmas period, a poll for Investors in People has concluded.
Ruth Spellman, Investors in People chief executive, said: Whilst it's important to keep staff focused to ensure that the job gets done over the Christmas period, no one wants a Grinch for a manager. The key to getting the best from your staff at a time when they may be distracted by planning for Christmas is to ensure that they continue to enjoy coming to work.
To stem staff sluggishness, the organisation is urging bosses to follow six top tips:
via.
Related posts:
Avoid Christmas Cash Crisis
Get Your Business Holiday Ready
Tags: holiday ready, christmas, tips motivated, employees
Ruth Spellman, Investors in People chief executive, said: Whilst it's important to keep staff focused to ensure that the job gets done over the Christmas period, no one wants a Grinch for a manager. The key to getting the best from your staff at a time when they may be distracted by planning for Christmas is to ensure that they continue to enjoy coming to work.
To stem staff sluggishness, the organisation is urging bosses to follow six top tips:
- Promote healthy working by making time to check in with staff and make sure they are not struggling with a nasty cold or flu or suffering from lack of proper cover or support
- Ensure any extra time staff put in over Christmas is logged in their next review and make sure that your employees know it has been noted.
- If you're not awarding bonuses, at least give each member of staff working over Christmas a small festive gift as a token of appreciation
- Show your own face because if you're not prepared to put in the hours during the festive period, how can you expect your team to deliver?
- Allow your staff to take an extra half hour at lunchtime for present buying and make up the time at the start or end of the day
- Pay extra attention to employees who work shifts during the Christmas period Bank Holidays
via.
Related posts:
Avoid Christmas Cash Crisis
Get Your Business Holiday Ready
Tags: holiday ready, christmas, tips motivated, employees
How to Deal with Negative Word of Mouth
Friday, December 02, 2005
If you're a small business, word of mouth is, or at least it should be one of the most importand marketing tools you got. Word of mouth is affecting your business, whether you deliberately use it or not. How you react can make a difference -- negatively or positively. Here is a interesting list with 5 tips on how to react to negative word of mouth:
Detractors fall into three categories. First are the Hear Me's that have a gripe and just want to be listened to. Ignore them and they could turn into Reputation Terrorists, who are determined to undermine your company and willing to go out of their way to do it. Finally, there are the Competitive Destroyers, who are trying to get a competitive advantage over you for business reasons.
2. Listen to your complaints.
Whether they're coming via email, customer service reps, or a complaint line, listen to the people who have something to say.
3. Have facts readily available.
You'll want the ability to point to the truth, so when negative word of mouth crops up, you can say, "Yes, there's all this silliness out there, but here are the facts."
4. Maintain perspective.
Ask yourself: "Is the negative word of mouth having an impact, or is it a guy sitting at home in his underwear in the basement with his dog looking over his shoulder?"
5. Activate your influencers.
If there's truly a problem, make sure you have people willing to step up to the plate for you, and be ready to activate them if the time comes. That doesn't mean simply saying, "I'm right and he's wrong." It means having people willing to talk about their experiences with you.
Well these were just some teasers as they were excerpts from the new Word of Mouth Basic Training Blog where you can find a lot of interesting infos on the subject.
Tags: word of mouth, small business, marketing
1. Know your detractor
Detractors fall into three categories. First are the Hear Me's that have a gripe and just want to be listened to. Ignore them and they could turn into Reputation Terrorists, who are determined to undermine your company and willing to go out of their way to do it. Finally, there are the Competitive Destroyers, who are trying to get a competitive advantage over you for business reasons.
2. Listen to your complaints.
Whether they're coming via email, customer service reps, or a complaint line, listen to the people who have something to say. 3. Have facts readily available.
You'll want the ability to point to the truth, so when negative word of mouth crops up, you can say, "Yes, there's all this silliness out there, but here are the facts."4. Maintain perspective.
Ask yourself: "Is the negative word of mouth having an impact, or is it a guy sitting at home in his underwear in the basement with his dog looking over his shoulder?"5. Activate your influencers.
If there's truly a problem, make sure you have people willing to step up to the plate for you, and be ready to activate them if the time comes. That doesn't mean simply saying, "I'm right and he's wrong." It means having people willing to talk about their experiences with you.Well these were just some teasers as they were excerpts from the new Word of Mouth Basic Training Blog where you can find a lot of interesting infos on the subject.
Tags: word of mouth, small business, marketing
Avoid Christmas Cash Crisis
Thursday, December 01, 2005
Companies holding back payment to improve their end of year figures could have serious repercussions for small firms that are reliant on cash coming in.
A little forward planning by businesses can go a long way to ensure that, as far as cash flow is concerned, they start the New Year on the right foot. It is recommended that businesses identify those customers whose credit periods expire over the holiday season and issue appropriate reminder letters to ensure that payment is received on time.
Here is a list of 10 top tips to help companies enjoy a happy Christmas having been paid on time and settled all their own outstanding debts:
Related: Get Your Business Holiday Ready
Tags: holiday ready, christmas, cash+flow
A little forward planning by businesses can go a long way to ensure that, as far as cash flow is concerned, they start the New Year on the right foot. It is recommended that businesses identify those customers whose credit periods expire over the holiday season and issue appropriate reminder letters to ensure that payment is received on time.
Here is a list of 10 top tips to help companies enjoy a happy Christmas having been paid on time and settled all their own outstanding debts:
- Ensure you are aware of your major customers' Christmas opening hours to avoid wasting time when chasing payments
- If payments from customers are due during close-down periods, attempt to negotiate earlier payment dates
- Do not let credit limits get out of hand because of extended payment times over the December and January period
- Do not get behind with your own invoice and statement schedules over the Christmas period
- New customers seeking large credit facilities over the Christmas period may be hunting for credit from unsuspecting (and busy) suppliers
- Ensure you obtain as much information on new accounts, including credit checks, no matter how busy you are
- Do not supply new goods or services if your customer has exceeded reasonable overdue periods, regardless of their credit limit
- Plan and budget your own expenditure over this period because, inevitably, payment terms can be disrupted over December and early January
- Take action on those accounts that are beyond credit limits now. Do not wait until the New Year when your debtors will have other pressures
- Use the quiet, close-down period to review your terms and conditions, ensuring they are up-to-date and that they include reference to interest terms
Related: Get Your Business Holiday Ready
Tags: holiday ready, christmas, cash+flow
Entrepreneurial Quiz
Forbes is running an entrepreneurial quiz, adapted from Thomas Harrison's book, Instinct : Tapping Your Entrepreneurial DNA to Achieve Your Business Goals, in which he explores the link between entrepreneurship and genetic architecture. Take the 30 questions Forbes Entreprenorial quiz here.
Tags: entrepreneur quiz
Tags: entrepreneur quiz
Get Your Business Holidays-Ready
As Christmas and winter holidays are just next door, don't wait until it's too late to get your business, no matter how small it is, holiday-ready. In the next days, I'll try to put up a series of posts on this matter.
For the beginning, here is a list of eight tips to get your biz in the holiday spirit:
Tags: holiday ready, Christmas, small business
For the beginning, here is a list of eight tips to get your biz in the holiday spirit:
1. Find out what your customers want
. A powerful rule no matter the question or the season, but - whether through word of mouth or formal surveys - know what your clientele wants. Chances are good that most will opt for a holiday flair - decorations, Christmas cookies, the whole fruitcake - but that's no certainty.2. Know your customers' tastes
. Make certain you accessorize accordingly. That means, if you run an occasionally noisy sports bar, your choice of decoration and lighting can be - shall we say - somewhat more liberal than a family-minded pet store. On top of that, decorate demographically - don't buy the same $1.25 plastic Santa headpiece that goes over the grill at a burger joint for a restaurant that provides home-equity loan applications with its entrees.3. Compartmentalize your holiday space, if you'd prefer
. There's no Yuletide law that mandates that every inch of your business has to smell like a pine-tree arboretum. Consider earmarking only a portion of your business space for holiday-related accoutrements. For instance, one business I know works up a holiday village that occupies only three center aisles. The atmosphere is holiday-laden, complete with music and ersatz snow drifting down. But the rest of the store could be in Maui in July for all you could tell.4. Be creative; consider new approaches
. Even the most ardent holiday decoration fan would admit that things can start to look rather - ahem - uniform after a bit. After all, 12 successive stores all playing "The 12 Days of Christmas" can really sap a tune's hum-ability. So, track down lesser-known holiday music, look out for out-of-the-ordinary decorations and think up holiday-tied programs your customers might appreciate.5. Service businesses:This affects you too.
The issues of decoration and other visual concerns may seem less important to you if your business is more of a service business. But that doesn't mean that the holidays aren't just as important - rather, the holiday season reinforces the importance of keeping in close touch with your client base. Find other ways of doing so, such as special promotions, event sponsorships or even charitable donations.6. Don't sound monolithic or impersonal.
One of the inadvertent yuks I get out of the holidays is the corporate Christmas card that's signed by the company - not the employees, but the operation itself, as though someone had somehow taught this intangible entity how to write ("Best wishes, from Monolith Co.") Don't make the same snafu - if you're sending out cards, have them signed personally (by you or members of your staff).7. Buy business gifts intelligently
. You may be able to save money on ribbon candy, but service businesses shouldn't overlook the importance of buying gifts for their best clients. But don't just run out and buy 100 chorizo and cheddar nibble 'n nosh boxes. Instead, research your top customers, find out what they would really appreciate and hit that target (within cost considerations, of course). If money's a concern, you can always trim expenses by buying lesser clients less expensive gifts. They're likely doing some belt-tightening this holiday season as well.8. Make the good tidings go beyond the holidays.
Even the most generous client gift outlay can ring hollow if you morph into Scrooge for the other 364 days. So, make certain that, however you communicate with your clients during the yuletide, it's part of a consistent, overall communications program.Tags: holiday ready, Christmas, small business
