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Monday, December 30, 2013

10 Signs You're Not Cut Out to Be an Entrepreneur

About half of Americans dream of opening their own businesses, according to a recent survey by the UPS Store, but with 50% of small businesses failing within the first five years, how do you know if you're an entrepreneur ... or a "wanna-preneur"?
"When we go through recessions and people lose their jobs or are offered buyouts, many decide it's their impetus to launch their own company," says entrepreneur and business coach Daniel C. Steenerson. "But just because you can start a business doesn't mean you should."
Before you take the leap, Steenerson suggests taking an honest inventory of your skill set. He offers these ten clues that you're not cut out to launch a business:
1. You can't stand the heat.
Before you jump into self-employment, Steenerson says you need to be comfortable with being uncomfortable.
"Every day you'll need to try something new for the first time," he says. "Growth happens at edge of comfort zone. If you're unwilling to go there, you may not be cut out for being an entrepreneur."
2. You're on the quest for quick cash.
While profit is the result of successful business, it shouldn't be why you are in business, says Steenerson, who in 1997 launched Disability Insurance Services, a provider of disability insurance products, to fill a gap in the marketplace.
"You start a business to solve problems and serve others," he says. "If you do that the cash will follow, but it can take time."
3. You have professional ADD.
Starting a business isn't about chasing the latest shiny thing; it's about picking a dream and staying with it even when times get tough.
"Being an entrepreneur requires unwavering laser focus," says Steenerson. "If you don't have patience and are unwilling to push through the tough times, launching a business might not be for you."
4. You get stage fright.
As an entrepreneur you wear many hats, and spokesperson is one. If you shy away from public speaking, overcome this issue by joining a group like Toastmasters or by hiring a spokesperson for your company.
"Opportunities don't always come to us in a scheduled manner, however. And entrepreneurs will need to be the front man from time to time," says Steenerson. "If you're uncomfortable with self promotion, it can be problematic."
5. You hate roller coasters.
When you're an entrepreneur, there are no flat surfaces. "One day you're tackling a steep hill and the next you're on a gut-wrenching free fall," says Steenerson. "You need to be prepared to hang on and enjoy the ride."
In other words, entrepreneurship isn't for those with a weak stomach.
6. You think complexity is cool.
Winston Churchill said, "Complexity is not a virtue." Steenerson agrees and says simple, straightforward businesses are often more successful.
"If your product or service is complicated, it will be hard to communicate that to your customers and your employees," he says. "A confused mind always says no."
7. You don't believe in marketing.
No matter what the economy looks like, you've got to keep marketing; it makes the business world go 'round, says Steenerson.
"When the economy declines, it's time to double your efforts because your competitors are pulling back, too," he says. "You must be willing to continue to throw revenue at marketing - no matter what."
8. You're easily winded.
Launching a business is like running a marathon. At the start, adrenalin keeps you going, but 15 miles in, you can hit the wall. Entrepreneurs are willing to push through the portion of the journey called the "middle mile" - the place where challenge and drudgery happen.
"Your feet will hurt and your breathing will be labored," says Steenerson. "Despite these inconveniences, you must place one foot in front of the other and press on. A lack of stamina is a recipe for burnout and overload."
9. You can't explain the steps of shoe tying.
Tying a shoe is complicated - and so is running a business, says Steenerson. Entrepreneurs need to be able to delegate tasks and to direct others. This means you need the ability to take a task and break it down into easy, actionable steps for implementation.
"Big ideas are a dime a dozen," he says. "Knowing how to implement them is the game changer."
10. You're a problem passer.
As an entrepreneur, the buck stops with you. You must be willing to upset the apple cart and make decisions
"Sometimes your customers will be unhappy with your decisions and you've got to be comfortable with that if it's in the best interest of your company," says Steenerson.
You must also be able to resolve problems. "Understand that if you're unwilling to handle something immediately, it will not go away," he says. "It will grow bigger."

Source: http://www.entrepreneur.com/article/230471

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Saturday, November 23, 2013

How to Increase Motivation for Blogging

Blogging sounds like one of the easiest way to earn money but honestly it’s not. In long run, we need lots if motivation for Blogging and with time, we lose the energy and enthusiasm. This is not same as writer’s block and we need to work on things, which can keep ius motivated to blog more and better.

Many bloggers start with blogging with lots of enthusiasm and dreams to achieve. They even plan lots of things and follow the rules but there are chances that they might fail to achieve goals or face failures like not getting approval from advertisers, getting negative feedback, lack of traffic. All these might reduce the passion to work and lack of motivation.

Blogging is a career where you need to keep yourself motivated. It is different from other jobs where your employers keep you motivated while working. Staying motivated is not easy, in fact many bloggers thinks that they can’t make money or achieve success as other professional bloggers. Even if you are facing same kind of problem  and find it difficult to motivate yourself then follow few tips which will help you to keep yourself motivated while blogging.

5 tips to increase your motivation for Blogging

1- Track the progress

When you put lots of efforts and smart work than for sure you might be getting good results. There might be chances that your results are fewer and not up to your expectation but then also, you are achieving something. Going slow is not bad, with time and hard work you will start achieving your goals fast. Keep a track of what progress you have done, this will help you to analysis your work and where you are getting better results.

2- Reward yourself

Keeping track of your progress is not enough. You need to reward yourself for each milestone you cross, no matter how small it is. You have achieved something thus reward yourself and share with others. Even if you have completed your 100th post, share this news on Facebook, Twitter. You will feel positive when  your friends will appreciate your work. You will work with more positive energy and ready to give your best.

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3- Contact with professional bloggers

Whenever you feel demotivated, contact with successful bloggers and share your problem with them. They will surely help you to find right path to move ahead. Getting experience tips from professional bloggers are always useful because even they have faced hurdles while blogging and know how to keep themselves motivated for achieving success.

4- Avoid people with negative thoughts

You will find lots of bloggers in blogosphere, who don’t have healthy competition and thus keeps on passing negative comments to demotivate you. You need to accept that few people will appreciate your work and few won’t like your work. Nothing matters until you are satisfied with your work. Thus, avoid to be in contact with the people who pass negative vibes to you while blogging.

5- Why you want to blog

This is most important factor which will help you keep yourself motivated forever. No matter why you started with blogging, it might be because you love to share your views, as a hobby, learn new things or just to make money online. Keep reminding yourself the reason and the dreams which you saw while you started with your blog. This will help you to focus on your work and keep you motivated.

Do let us know what trick do you use to increase your motivation for Blogging? Do share with us.

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Saturday, October 26, 2013

5 Signs You Aren’t Ready To Start a Business

“[B]eing an entrepreneur is very unsexy. Long hours. Time away from family. Low salary. High risk. High stress. It only looks sexy when you read TechCrunch. There is no shame in being an exec at a company or whatever.” – Mark Suster, a 2-time entrepreneur and current VC

Entrepreneurship is not and cannot be for everybody. Not everybody has to be an entrepreneur; somebody has to be willing to lead and manage the huge business empires we know today and somebody else is needed to start businesses from scratch. The important thing for you to do is identify your strengths and weaknesses. Know where you function best, what you are good at and then make the most of it. Here are the five signs that you aren't ready to start your own business just yet.
1. If you expect a guaranteed check.
The expectations of an entrepreneur are that, there are no expectations. In fact, you could be heading for disaster and not know it. The risks are real and are unexpected. There are no guarantees. If you have always expected a guaranteed check every two weeks or month, you are not ready to start a business. Don’t expect to see sales or income for a very long time. Most entrepreneurs bootstrap from the beginning and seek out angel investors when they are more stable.
2. If you can’t double your working hours per week.
Yes, you need to work overtime – or better still – double your working hours every week. It takes time and great courage and most importantly the persistence to see success when you start a new business. A greater percentage of new businesses fail in their first year. You should be doing something right consistently and fast in your first year to make sure you aren't a part of that number.

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3. If you want start a business because it will be easier than “finding a job.”
Starting your own business means flexible working hours and independence in the beginning, but going forward as you begin to put structures in place and hire new employees, the onus will be on the founders to achieve the vision and meet milestones. Starting a business can put you in a financially fragile position and you must be prepared to handle the pressure. Exercising your creative freedom comes at a cost, though it has benefits too. It’s okay to stay where you are, but if you want to start a business make sure it’s an informed decision.
4. If you don’t have confidence in your own ideas and ability to execute.
Are you passionate and confident about your new idea? Entrepreneurship is a life long journey; you will be working on your new idea for a very long time.  Do your research to make sure you are pursuing a business you will be proud of. The journey is bedeviled with months of possibly no salary if you bootstrap. Months with no real product to put out there and the trials and errors with rejection can go on for a very long time. The least you can do is to start with something you enjoy doing.
5. If you cannot afford to fail.
Despite the high failure rate of startups, most startup founders are not afraid to take the risk. If you are afraid to fail, you might as well not start at all, because the truth is, you might fail. But the good news is that few innovative business leaders are not afraid to fail. Making new and great progress in business inherently involves trying new things and it’s likely you’ll fail at something that has never been done. You need to keep trying to get a breakthrough in the process. After all, Thomas Watson said, “The best way to succeed is to double your rate of failure.”
Every successful business leader or founder has a story to tell. It’s better to embrace potential failure the first time than it is to never try. If you intend to start a business, get the basics right and realize you don’t have to get it right the first time.
(Image Source: freedigitalphotos.net by Ambro)\

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Sunday, August 25, 2013

What’s the biggest career mistake you would gladly make again? 11 leading entrepreneurs tell us.

“Mistakes are the growing pains of wisdom." -William Jordan
In career, and in life, we make mistakes. You can’t prevent them and avoiding them is a mistake in itself. Business leaders make many and have the scars to show for them. They can cause harm and loss, but they can also open doors and serve as learning opportunities.

We asked some of the Middle East’s business leaders and entrepreneurs a simple question:
What is the biggest mistake you made in your career that you would gladly do again if you go back in time?
Here is what 11 of them had to say:
Ihsan JawadPartner, Honeybee Technology Ventures
Previously:  CEO & cofounder, Zawya.com (acquired by Thomson Reuters in 2012)
One almost fatal mistake early on in Zawya's formation was to kick off operations with smaller capital than the business required.  This could have killed the business when things did not go to plans and indeed that's the main cause for most start up failures.

However, looking back at it now, I may just do it again as the situation made us take the right survival choices rather than just drift along and disappear into irrelevance. The real constraint resulting from that mistake forced us to get creative and innovative.
Rabea AtayaCEO and Cofounder, Bayt.comAlso incubated a number of startups including GoNabit, Mumzworld.com, YallaMotor, and DoctorUna.com.Previously: founder, InfoFort
“I have continually underestimated the complexity involved in starting new businesses.  This recurring mistake has been a blessing as I would have likely not taken on any new ventures had I understood a priori how challenging they would be.”
Hussam KhouryPresident, Jabbar Internet GroupCofounder, Maktoob.com (acquired by Yahoo in 2009)
The biggest mistake was to jump into a new idea or venture like Maktoob at a time that did not make sense, and with little study of the situation, with everyone around telling me you are crazy! 

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Yousef TouqanCEO, Flip Media
I think the best "mistake" I made was to choose to work with a young startup digital agency instead of taking a comfortable and safe client-side role as a Director of Marketing. I'm so proud of everything we have achieved together at Flip in the last 8 years, and I'd gladly do it all over again.

Omar KoudsiCofounder and CEO, Jeeran
"I can't think of one "big mistake" but I have made a ton of mistakes that have built up my experience and I am glad I went through them.  As they say, good judgment comes from experience, and experience comes from bad judgment."
Laith ZraikatFounder, Olgot.comPreviously: Cofounder, Jeeran
The biggest mistake in my career was not getting some corporate experience before I started my company. In retrospect, it would have been impossible to have that anyway since I started back in 1997 while in my second year of university. There have been tremendous advantages to startup at that time and under those circumstances so I would gladly make that mistake again :)

Corporate experience will give you reference points when dealing with employees and trying to put yourself in their shoes. For me it was all guessing, as I was never an employee. In the least, they would not be looking at you as someone who has not been in their shoes. 
Rama ChakakiCofounder, Baraka Ventures
My biggest mistake was leaving my last corporate job as a COO, to startup a business in a domain I knew nothing about. 
I was in the IT and telecom sector, and yet my heart was in social causes & development. I felt we could combine both. I saw a need to explore a new business model that combined social and financial goals, as existing businesses often placed all the emphasis on a financial bottom line, with little attention paid to their social or environmental impact.

So I left the job, and risked all.  Because it was uncharted territory for me and unfamiliar to others in the region, I had to learn by trial and error.  I invested in social ventures that failed miserably, but I learned a lot from those failures.

The flexibility of running my own business allowed me to step outside the office, work in the field and gain amazing insights on social and environmental challenges first hand.

Venturing into a "green field" also allowed me to explore creative ways to get things done.  The lack of financial support from third parties kept me alert to making the business run on a "bubble gum and shoe string" budget.

Perhaps it was a mistake to risk everything and invest my savings at a time when I could have been earning a significant salary in a booming economy.  But I became fearless where it came to financial risk and learned the merits of a values-driven business.  Best result: I am surrounded by a community who believes in social business.
Alper CelenFounder & Managing Director, Commit Network
Most people quit their consulting jobs at McKinsey after many months of soul searching and rigorous comparison of numerous corporate opportunities.  So, when I quit McKinsey in 2009 to “become an entrepreneur” without a clear long-term plan, many thought that I had made a major career mistake.

My McKinsey colleagues had a hard time understanding how I could take on such a risk with a wife and new baby to support.  My friends thought that the first step after the Firm was the most important in one’s career and that I should have taken a director or CXO position in a tech company instead of founding my own startup. 

On most accounts, my choice to let go of a dream career and guaranteed income and benefits as a consultant seemed like a mistake. Yet, I would make that mistake all over again if given the chance. The truth is that the best reason for invention is necessity. Without fully facing the risks of being an entrepreneur, I would not have met the people that I met, I would not have had the ideas that I had, and my company Commit would not have shaped as it did.  Thus, my advice to aspiring entrepreneurs is often summarized in one word: “quit!” 

Of course, be sensible in doing so and calculate your options in case of failure.
Mona AtayaFounder, Mumzworld.comPreviously: Cofounder, Bayt.com
All choices I have made and will continue to make are based on the data I have at the time, my experience and my “gut” as the final tipping point.  Some of these choices were perhaps not the best, but were resulting in learning nonetheless. So I don’t consider any of these choices mistakes, but rather pieces of the puzzle that are guiding me to where I need to be.
Fadi GhandourFounder & Vice Chairman, AramexCofounder & Director, MENA Venture Investments
For me, there are no “biggest mistakes.” There are a series of many smaller ones that are gems of knowledge in my life and I am sure in the life of every entrepreneur.

That is how we have built our businesses over the decades, making mistakes and failing and learning along the way. I am a firm believer (out of experience) that through failure you learn, and that through many small failures, you learn everything.

Trial and error has been a guiding principle for me ever since I can remember. Not because I took it up deliberately, but as I was building the business, I discovered that as I try things, and take decisions (many of them every day), I am making judgment errors, and other mistakes. But I also discovered that every “bad decision” I have made was something that stuck in my mind, (meaning I learned from it, that is why I remembered it) and these mistakes where the building blocks of my cumulative experience and knowledge. 
So I would never trade these mistakes ever... they are what got me here, and I would repeat them again and again. Just like working in a laboratory, you try and try to find the right formula that clicks.

Dany FarhaCofounder & CEO, BECO CapitalCofounder, Butlers, and IntercatPreviously: Cofounder of Bayt.com
I have had the privilege of being an instrumental part of and co-founding a multitude of businesses over the last 18 years. 

At the beginning of my entrepreneurial journey, I was adamant about performing all the core functions in the company.  I self-inflicted the painful process of shadowing not just core functions but key business areas that I determined could lead to the success or failure of the company, all the way down to fraud detection.

I spent many days, weeks and months performing these tasks myself, working very closely with store keepers, accountsclerks, delivery drivers, technicians, receptionists, sales managers, HR staff and more as I focused on learning many facets of the business.

This was a consistent mistake in that it was extremely tasking on my time, and I often worked 15 hour days, 6 days a week, to make up for my own key management duties. I was often rightly accused by my friends and partners of not delegating, being too “hands-on,” and trying to do too much.

I also did much of this reluctantly and didn’t always enjoy the process. But in hindsight, what seemed to be a consistent mistake, even 15 years on, now seems like a fantastic investment. The drawbacks can be severe, particularly slowing growth in the earlier years, especially when, as a founding managing partner, you are so instrumental in driving the growth of the business.  My pursuit for knowledge and functional excellence took away from my being strategic, creating an elaborate growth plan, hiring and managing talent to execute the plan and spending time with key stakeholders.

These actions worked against me eventually, but they were a “mistake” that I would repeat in a heartbeat. The benefits are innumerable. A detailed command of every aspect of your business, enabling you to better manage these functional managers in the future, understand what is possible and how to raise the bar and promote innovation. These skills are often transferrable, hence the ability to compound this knowledge and experience across functions and businesses. 

The pluses include camaraderie and being able to identify top performers; many of our stars came from the hidden bottom of the ranks.  Identifying new business opportunities, products and services, acquisitions and new markets also come out of this tiring process.

To demonstrate that we still walk the talk, my partner and I at BECO Capital are once again performing all the core functions ourselves, right down to the filing, and hiring key positions only once we’ve mastered all the details that go into building a high quality investment firm. The big pay-off today is for our portfolio companies as we transfer these experiences to inform them where appropriate.

What do you think? Share your thoughts. 

Source: http://www.wamda.com/2013/08/whats-the-biggest-career-mistake-you-would-gladly-make-again

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Monday, August 5, 2013

7 Simple Numbers That Will Grow Your Business

One of my main business mantras is "Know Your Numbers," and because numbers are the language of business, it is numbers that will ultimately determine your success.
Business is literally a numbers game, but what numbers should you know?
Here are seven metrics that will give you predictive results you can measure and manage for more sales and bigger profits:

1) The lifetime value of each customer. While there are more complicated formulas to determine this value, this simple version will give you a start:
If your average customer spends $20 per purchase, buys three times a year and stays with your business for five years, the customer's lifetime value to your business is $300.
$20 x 3 sales = $60
$60 x 5 years = $300
Now you have a working understanding of the worth of each customer and the types of resources you need to acquire and retain them.
2) How much it costs to acquire a new customer. I call this your Cost Per Acquisition, or CPA, and it can help determine how much you spend on any marketing or ad campaign.
Let's say you've placed an ad in your local paper for $200. You get 20 responses and 10 sales. The acquisition cost for each customer is $20 ($200/ 10 = $20).
If your offer results in at least $20 in profits on every sale, you've run a successful campaign. But if your CPA is $20 and you have little or no profit, or are acquiring customers at a loss, it's time to re-evaluate your marketing.

3) Conversion rates. Let's say you hand out flyers to people on the street. The campaign generates 1000 leads over a two-week period, and 100 of those leads buy. Your conversion rate is 10 percent (1000 leads / 100 new customers = 10 percent conversion rate).
Too low? Nowhere to go but up. Tweak flaws in your sales process, increase customer service, narrow your target or create a better offer.
Knowing where you are is half the battle in getting to where you need to be.

4) Your average dollar sale. The value of each sale is important if you are looking to generate repeat business or up-sell -- in other words, the "Would you like fries with that?" strategy.
Simple "add-ons" can add-up quickly. For example, a deli offering premium sides and bottled drinks increased average sale from $5.42 to $13.11 with a simple "up sell" script that increased overall revenue 144 percent within a few weeks' time.

5) Response rates. Conventional direct mail response rates will vary from 1 percent -- generated by using lists from a list broker -- to up to 5 percent -- generated by using what I call a "warm" list of current or past customers.
Online email response rates are generally around .1 percent. That means, to get 50 responses to a conventional direct mailing, you'll need to mail to a minimum of 5000 names with a great offer.
To get 50 responses from an email campaign, you'll need at least 50,000 names, knowing not every response will end in a sale.

6) Lead-to-sale-ratio. If you're in a business-to-business, professional services category or have a long-term sales cycle, your lead-to-sale ratio will give you an idea of the audience you'll need to target to actually close a sale.
Say your startup insurance business needs 10 prospects to generate five meetings to produce one client. To get 1000 clients, you'll need to prospect 10,000 people.
If your conversion rate is 20 percent, you can add value, guarantees or other ways of reducing real or perceived risks to increase your conversion rates to a 5:2 or 5:3 ratio.
7) Touches to sale. How many contacts or touches does your prospect need before they buy? The general rule of thumb in sales is that:
  • Two percent of sales are made on the first contact/touch
  • Three percent of sales are made on the second contact
  • Five percent of sales are made on the third contact
  • 10 percent of sales are made on the fourth contact
  • 80 percent of sales are made on the fifth contact
It's generally accepted that on average, you need at least four to seven touches for a sale. So when should you stop touching? When you're asked -- otherwise, you never know when the timing is finally right for a sale.
Knowing your numbers and what numbers to know in the first place greatly empowers your decision making, and helps you better predict how your business will fare.
If you do your numbers and discover you need a 10,000 person database to get 1000 customers, your marketing plan is pretty simple: Get a list and an offer, then track and convert your results.


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Tuesday, July 23, 2013

18 Ways To Come Up With Your Next Startup Ideas

  1. Ask yourself-How is the current product too complicated? What simple little thing could you do to just make it simpler.
  2. Ask again-why it doesn't work better and how to resolve the problem.
  3. The keys to getting the good ideas is to have lots of them
  4. When you encounter a problem think through all the possible ways of resolving it.
  5. Know about different disciplines, and have broad knowledge. Innovation often comes from crossbreeding different disciplines.
  6. Ask yourself why it hasn't been improved in the way you think would work.
  7. Stay away from TechCrunch or Mashable and look outside the box
  8. Put yourself in a new state of mind.Get out of your demographic.
  9. It’s hard to make a good product if it doesn't solve a problem you are personally facing.
  10. Maintain a sense of curiosity in the world around you, a mental flexibility to entertain odd possibilities
  11. Being creative is a habit you get into, maintain that habit constantly
  12. Find an active forum. Make it easier for someone (or a group) to do something they’re talking about doing there, it could be your next startup
  13. Keep a small notepad and pen(cil) nearby, and write down your ideas the instant they come.
  14. Take a different route home.
  15. Think about the most normal, expected solution to a problem would be, and then try to imagine the opposite.
  16. When you see something that annoys you, think about how to solve it.
  17. Talk about your ideas with friends. Get feedback. Tweak and repeat.
  18. Be in-the-know about breaking trends.
 Have more ways of your own? Do share!

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