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Featured WorkingPoint Company Profile: BangerDesign

Topic: Company Profiles | Comments Off on Featured WorkingPoint Company Profile: BangerDesign

Posted on April 10, 2010 by workingpoint

The WorkingPoint Community is made up of small business owners, like yourself, and we want you to get to know each other. We’d like to introduce you to David Buenger of BangerDesign:

BangerDesign provides Product Design and everything having to do with it. Patent Drawings. Market Research. Conceptual Design. Design Briefs. Product Designs. Prototypes. And More.

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The Entrepreneurial Legacy to Gen Y

Topic: Entrepreneur Evangelist,Starting Your Business | Comments Off on The Entrepreneurial Legacy to Gen Y

Posted on April 7, 2010 by admin

Like many of my peers in Generation X, my parents and my grandparents have never really understood what I do for a living. My parents use the web, so it’s not entirely outside their comprehension, but when it comes to my grandparents: I may as well be communicating with aliens via mental telepathy. Being an knowledge worker in a digital economy is a bit of a leap for people who don’t watch TV or listen to the radio and who rely almost elusively on a paper copy of a newspaper for their information consumption.

I think that’s part of why I am often fascinated by generational research: I see how big the difference is in my life versus my parents and grandparents, and I am riveted at the idea of what subsequent generations are going to experience that I am not even capable of imagining. I was thinking about this as I was reading a great list on YoungEntreprener today: 27 Inspiring Young Online Entrepreneurs.

When I look at the companies these entrepreneurs started — Mashable, Volusion, Digg, Box.net, 99Designs, iContact — I can’t help but think that this may be one of those interesting examples that I’ve been looking for when it comes to ways in which Generation Y will be different than Generation X. I think we tend to dismiss many of these success stories as anomalous. And while they certainly are in terms of their success, I am not so sure they are when it comes to what motivated them to embark on their “pet projects” in the first place.

And in the end, I think this really may be Generation X’s most exciting legacy to Generation Y: an internet-driven economy that has made it much more possible for a teenager to have the tools on-hand to build a business that is worth seven-figures even before the first day of freshman year of college. Sure, not all teenagers are going to take advantage of that opportunity; and not all who try to take advantage of it will be successful. But the fact that option is so much more readily available than at any previous point in history is just… well, really, really cool.

My husband’s new startup is about pairing businesses with high school students to crowdsource project work. And while most people love the idea and are eager to get involved, the one consistent source of pushback we do hear is, “What kind of business value do high school students really have?” It’s been a fascinating lesson to me, to see how deeply entrenched that perception is among so many people. Most people don’t have a concern about trusting college students, but the idea of high school students is just jarring enough that some people can’t quite get their head around it.

Personally, I think that lists like this are encouraging. For too long, too many of us with creative talents and inspiration believed what we were told when someone said to ‘wait’ — until after college, until later in a career, until some nebulous date off on the horizon — to pursue our dreams. I love that these young entrepreneurs just considered it normal to start young. It didn’t occur to them that they shouldn’t. It’s further evidence of what (creativity and education specialist) Sir Ken Robinson says: we ‘educate’ kids out of their creativity over time, and teach them not to stand out, not to differentiate themselves from their peers, and to stick to the safest, most boring and most conventional path.

I think it’s sensational that these 27 young entrepreneurs bucked that trend. And I think it’s fantastic that they are high profile enough to help set an example for those who come after. And I think it’s cool that in just my lifetime alone, we’ve gone from 8-track tapes to the iPad, and that there are eager young entrepreneurs who automatically dive in to find their niche. It makes me fabulously curious about what more is to come.

While plenty of people — usually older — scoff at the idea of a 24-year-old CEO of a multi-billion dollar enterprise, I say good for them. Life is short. The only value in “waiting” is if you don’t know what you want to do. If you know, go for it. After all, if you’re going to trip and fall, I always figure it’s best to do that when you’re young enough that you don’t have to worry as much about the dangers of breaking a hip.

The Entrepreneurial Highway

Topic: Entrepreneur Evangelist | Comments (1)

Posted on April 5, 2010 by admin

I had an interesting Escape from Cubicle Nation moment this past week: I got a job offer — for the precise type of work I used to do (and love).

The job paid what I used to make in NYC (which would be an extremely nice income in Central Texas), and it was the opportunity that I had been hoping and searching for a year and a half ago.

And the interesting thing that happened?

As I had the conversation, it slowly dawned on me that I wasn’t even remotely tempted.  I’m not sure who was more surprised by this: me or my husband.

This got me thinking about the employee-to-entrepreneur transition that I’ve been on since 2008. We often talk about a “career path.” I think this is inaccurate. I think the right phrase is a “career highway.”

Right Lane = Stability-Motivated Employee

  • One career and as few employers as possible.
  • Stability reigns supreme.
  • Even calculated risks are uncomfortable.
  • Large enterprises and government positions often appeal most to this category.
  • A single employer career with a stable retirment plan and reliable benefits is the Holy Grail, and boredom is acceptable at work in exchange for stability.
  • Any necessary excitement can be sought outside of work when needed.
  • “Progress” is most frequently measured in proximity to retirement, more than rungs climbed up a career ladder.

Second Lane = Migratory Employee

  • The modern normal.
  • An employee who will have 2-4 careers in a lifetime, and an average of 12-15 different jobs.
  • Stability is important, but not above all else.
  • Calculated career risks are worthwhile, if not occassionally exciting.
  • Jumping to a new job is always a possibility if a more appealing opportunity presents itself.
  • This employee is often heavily motivated by autonomy and new challenge, secondarily by money.

Center Lane = Freelancer

  • The newest class of employee, often placing a premium on freedom and flexibility above stability.
  • Often easily bored, and prefering variety with risk to stability with stagnation.
  • Commonly enjoys being a solo entity, and is disinclined towards growing a business that requires taking on the responsibilities of having employees.
  • Collaboration with other freelancers is often a successful and preferential model.
  • “Dollars for hours” is the most common financial model, which can cause business development challenges.

Fourth Lane = Self-Employed

  • Small businesses, often family or small-team owned/managed.
  • Frequently limited in scalability.
  • Often heavily reliant on founder(s) for success.
  • Lifestyle businesses and brick-and-mortar neighborhood businesses often fall into this category.
  • Not uncommon for an owner to discover that they ‘own a job’ rather than ‘own a business.’
  • Freedom and wealth-building often started out as core priorities; over time, the realities of business limitations can undermine those objectives if this was not the intended final growth state of the business.

Left Lane = Business Owner

  • Scalable businesses of all sizes.
  • Owner/founder has decentralized systems, processes and critical knowledge enough to allow for empowerment and delegation among staff.
  • Vacations and sick days for the founder are possible and cause little in the way of organizational chaos.
  • This business is a strong candidate for potential sale, since success is not wholly dependent on the original founder for success.
  • Owners/founders who build this type of business can/do often build more than one over the course of their lifetime.

Obviously this isn’t an entirely clean mapping, and different combinations can blend a bit to create a bit of a hybrid. But I think that the most meaningful part of the highway metaphor is the idea that people can change lanes over time. Different life factors can influence which lane someone chooses.

  • I have seen dozens of female Second Laners have children, and then suddenly switch into either Right or Center Laners (depending on both their personality and their skillset).
  • I have watched numerous Second Laners get laid off and decide to take on an entrepreneurial opportunity by moving immediately to the Center Lane, sometimes working their way farther over as time goes by.

This has been my path. I was an obsessive, workaholic Second Laner who was finding a ton of meaning and fun in the career that served me well, paid me nicely, stroked my ego constantly and took me on great professional adventures for a decade. When I hopped off the highway to move to a new town, I (arrogantly) assumed that I’d be able to just hop onto the new road in my new town without any trouble, and slide right back into the Second Lane again.

Unfortunately, my timing was less than perfect. I left my job without a definitive replacement at the same time that the economy took a nose-dive, and before I knew it, my husband and I were starting our own business. It wasn’t the plan, and it wasn’t what I wanted. And yet, that was the course I set out on… and before I even realized it, it slowly became what I truly did want. It just took nearly a year for me to realize that.

And so now, here we are, with a consulting practice and a new Education 2.0 startup business. We don’t have the big salaries or the cozy corporate benefit package and fringe benefits. But we’re doing what we want. We’re working with whom we want. We’re focusing on things that are meaningful to us. And it was nice to get a reminder last week that, no matter how hard it can be at times, I wouldn’t trade it in on the alternative.

So, how did I celebrate? I promptly went a little nuts, cut off all my hair and bleached it blond. A friend and entrepreneur joked with me later, “Is that your way of validating that you aren’t going back to a corporate job?” I grinned. “You got it!” No size paycheck could possibly compare to that.

Featured WorkingPoint Company Profile: Essential Bodywear

Topic: Company Profiles | Comments Off on Featured WorkingPoint Company Profile: Essential Bodywear

Posted on April 4, 2010 by workingpoint

The WorkingPoint Community is made up of small business owners, like yourself, and we want you to get to know each other. We’d like to introduce you to Michelle McCollum of Essential Bodywear:

“Essential Bodywear is changing the way women feel about their under garments…I am a Certified Bra Fit Specialist, offering personal Bra Fittings, done over your clothes in a matter of minutes. Changing the way you look and feel. Putting you back in the perky postion.”

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Featured WorkingPoint Company Profile: Chiles Martial Arts

Topic: Company Profiles | Comments Off on Featured WorkingPoint Company Profile: Chiles Martial Arts

Posted on April 3, 2010 by workingpoint

The WorkingPoint Community is made up of small business owners, like yourself, and we want you to get to know each other. We’d like to introduce you to Chiles Martial Arts:

“Chiles Martial Arts provides the best martial arts, fitness programs and self defense serving Clinton and the surrounding area. We offer various training programs including: children, youth and adult karate, mixed martial arts (MMA), Ju Jitsu, and women’s self defense.”

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A Letter to Your Senator – Sen. Dodd’s Financial Reform Bill

Topic: Entrepreneur Evangelist,Growing Your Business | Comments Off on A Letter to Your Senator – Sen. Dodd’s Financial Reform Bill

Posted on March 31, 2010 by admin

There has been quite a buzz in the blogosphere over the past couple of weeks, regarding Senator Dodd’s finance reform bill. Everyone from VentureBeat to Harvard Business Review to Inc. has weighed in about how this bill can impact startups.

According to BusinessWeek, if Senator Dodd’s bill passes in its current form, the number of Angel Investors in the US will drop by 77%. That’s an enormous difference, and for new businesses looking for relatively small amounts of financing to get off the ground, this is a huge blow to add on to what is already a daunting challenge.

Scott Shane at BusinessWeek goes on to say:

[S]ome of the most successful startup companies transition from informal investment to institutional investment as they grow and demand more capital. While only a small number of companies that obtain an informal investment subsequently obtain venture capital financing—perhaps several hundred to a little more than 1,000 per year—these companies are disproportionate creators of wealth and jobs.

As if that weren’t enough reason for entrepreneurs to be concerned, there is another change that further complicates the fund-raising process a new business must go through. This is from Austin’s Tech Ranch partner and former Venture Capitalist, Gayathri Radhakrishnan:

Based on what has been suggested in the draft bill, start ups and private companies that are raising funds cannot close on their financing until SEC or a state regulatory authority has reviewed the filing and this could take as long as 120 days! So, instead of closing small funding cycles quickly and moving on with your product development, you are stuck waiting for your paper work to pass through the regulatory quagmire.

Even more, she goes on to note that additional changes in the bill allow individual states to also add their own layers of regulation, which means that “…as an entrepreneur even though you are raising a small amount of money each state can impose its own set of regulations. This implies that in addition to meeting the requirements of the sate in which you are incorpoarted, you will have to file in every state from which you have an accredited investor.”

In a virtual world of internet-based businesses, state-by-state regulation is already difficult to manage, if not highly illogical and impractical. Allowing each state to impose additional regulatory processes and restrictions on prospective investment opportunities throws a huge boulder in the middle of the road to both innovation and economic recovery.

Calls to Action

Entrepreneurs from across the spectrum of talents, disciplines, backgrounds and business goals are universally recognized as having a huge role to play in our economic recovery and long-term financial stability. Cutting the legs out from under one of the principle avenues of funding that helps new ventures get off the ground is devestating to entreprneurs in the immediate term, and to the entire economy in the long-run.
If you are concerned about this issue, please sign the petition to oppose the repeal of Federal Preemption of Reg D Securities Offerings, and then contact your senator and ask that they not support this bill. If you like, you may copy and paste this note in your message to them:

Sir or Ma’am:

I would like to take this opportunity to express my deep concerns regarding some of the implications in Senator Dodd’s finance reform bill. While perhaps not the target of the bill, as it is currently written, the Senator’s proposal will radically alter the funding landscape available to new businesses.

The updated income and networth definition proposed by Senator Dodd will radically reduce the number of eligible ‘accredited investors” available to assist new businesses in getting off the ground. Additionally, by opening the doors to state-by-state regulation of securities offerings, Senator Dodd’s bill further complicates the fundraising landscape by forcing entrepreneurs to comply with regulations of not just their own state, but also the state of residence of any of their investors.

Entrepreneurs and small businesses are vital to our economic recovery, and our on-going innovation. Informal investors are an enormous source of early-stage investment in new businesses. It is in our long-term best interest to encourage their on-going and active investment in new ventures. As it is currently written, Senator Dodd’s bill will have a devestating impact on the future of America’s small business and startup landscape.

I urge you to please oppose any version of Senator Dodd’s bill that hurts small business and entrepreneurial innovation by eliminating or complicating access to the funding vital to getting a new business off the ground.

Sincerely,

Name

If you are interested in reading up on the implications of this bill in more depth, you can find additional commentary in the following locations:

How Do Your Expenses Compare to Other Businesses?

Topic: Entrepreneur Evangelist,Growing Your Business,Infographics,Managing Your Business | Comments Off on How Do Your Expenses Compare to Other Businesses?

Posted on March 29, 2010 by admin

It’s been an exciting time for the team here at WorkingPoint. Over the past several months, we’ve watched our subscriber base grow, our users explore more of our features, and our application get put to work in increasingly valuable ways.

One of the most exciting side effects of that is that we are now able to start seeing some great data that cuts across our customers, and helps us understand both small business trends, as well as how people are using WorkingPoint to help them solve their daily business needs.

This past week, we started really digging into details around how WorkingPoint customers were using our Expense functionality. We’ve got some very interesting results.

At a high level, we see a common assortment of expenses among our customers that, when prioritized and ranked, produce a tag cloud that looks like this:

WorkingPoint Expense Tag Cloud

It’s All About People

However, once we dig into the details and combine some of the smaller, related categories, the numbers look a bit different. Far and away, the biggest expense paid by our customers is for their staff:
WorkingPoint SMB Expenses Infographic

In this view, “Staffing” includes all the costs that go along with your most valuable asset: your people. That includes payroll/salaries, payroll services fees, payroll taxes and fees for contractors.

Of course, the “Other” category is a generic bucket for things that do not have obvious categories, and we continue to examine ways to gain insight into what types of expenses our customers use that category for, but over all, there is something comforting about seeing how many small business that use WorkingPoint are finding so much value in it.

All in all, the more time goes by, the better our data gets. And better data means a lot of great opportunities for us to find more ways to give you the functionality that you need to help run your business with less effort.

Even more than that, it’s a great encouragement to see how many businesses are still doing great work, taking care of their people, and helping to push our economic recovery.

Featured WorkingPoint Company Profile: Simple Errands LLC

Topic: Company Profiles | Comments Off on Featured WorkingPoint Company Profile: Simple Errands LLC

Posted on March 28, 2010 by workingpoint

The WorkingPoint Community is made up of small business owners, like yourself, and we want you to get to know each other. We’d like to introduce you to Simple Errands LLC:

“Simple Errands LLC is an Errand Service….If you hate doing errands or simply just don’t have enough time in your day/week, then let Simple Errands do the work for you.”

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Featured WorkingPoint Company Profile: Silver Image Limousine

Topic: Company Profiles | Comments Off on Featured WorkingPoint Company Profile: Silver Image Limousine

Posted on March 27, 2010 by workingpoint

The WorkingPoint Community is made up of small business owners, like yourself, and we want you to get to know each other. We’d like to introduce you to Silver Image Limousine:

“Dallas limo service providing stretch limousine and sedan airport service to the Dallas Fort Worth Metroplex.”

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5 Critical Steps in Finding the Right Team for Your Startup

Topic: Entrepreneur Evangelist,Growing Your Business | Comments (2)

Posted on March 24, 2010 by admin

Speed DatingI was recently talking to a single friend about his misadventures in dating. He was telling me about different approaches he’d take, the types of questions he’d ask and then — inevitably — the crazy type of mismatches he’d find himself with. I couldn’t help but think about this conversation as I read Tim Berry’s great blog post called, “5 Ways to Build a Team that Builds Itself.”

As with most of Tim’s advice, he breaks down a meaningful topic into accessible pieces. He notes that values, empowerment, metrics, feedback and embracing mistakes as learning opportunities are all invaluable tools in building a successful team. And I would agree.

In fact, I’d even go so far as to say that the only times I’ve ever seen a team suddenly go from success to failure, it was always because a new influence (usually a new boss) entered the picture and eliminated at least one of these factors — and usually destroyed morale in the process.

The thing that Tim doesn’t address, though, is how you find the right people in the first place. Like my friend with the crazy — and often doomed — dating stories, you can only build quality relationships (a.k.a. teams) if you start out with the right quality of individuals. And, just like in dating, this is the first step that someone can easily get hung up on for years before ever being able to move on to Step #2.

When I look at the partnerships I see in the startup space — particularly among bootstrappers and eager enthusiasts trying to drive innovation — I see a lot of churn in the hunt to build the right team. But I also see some pretty clear milestones that, once hit, start making all the difference.

1. Find the Right Language
Often times, this is the hardest part. An entrepreneur (or a would-be entrepreneur) can have an amazing idea. But if they haven’t found the right language to share their idea with others, they can spin their wheels for years and not make any headway. If the idea is too big, too imprecise, too confusing or even just too radical, it’s hard for it to resonate with other people. And if it’s not resonating, then finding others to help you build it is not going to happen.

So practice. And if people aren’t responding, then change it. And then practice some more. Get feedback. Watch people’s reactions. Find ways to pre-empt the most common pushback you hear from people, and then practice some more. A funny thing will happen: the right combination of words will eventually start to fall into place. And when that happens, all of a sudden you’ll go from getting blank stares to true interest — and you may not even be entirely sure why the change occured. Just recognize that it did, and it’s often more about language than you imagined.

2. Don’t Make Assumptions About People
Another common mistake I see among entrepreneurs with ideas they find exciting is the mistaken assumption that the people they want to be onboard with them will also find their idea exciting. When someone is feeling unsure of themselves, it’s often easy to look to friends and family for validation and participation. This is sometimes a dangerous choice, because we tend to place a lot of stock in the opinions of those we care about. And if friends or family don’t like or understand the idea, it’s sometimes a devestating blow to an entrepreneur’s focus and motivation.

Depending on a person’s normal social circles, I often recommend starting with strangers, and waiting to circle back to friends and family. A stranger is often a blank slate: no assumptions, no speculation, no baked-in expectations about you, your background or your capabilities. The idea has the chance to sink or swim on it’s own — based on the words you use — when it comes to a stranger. Strangers are often nicely baggage-free, and a great place to start.

The flip-side to this is in being too focused on what types of people — either personality types or skillset types — that you need in order to make things work. People are an endless and amazing source of constant surprise. If you spend all of your time telling yourself, “I need a rock star biz dev guy!” and close yourself off to other possibilities, then you could miss the former network engineer turned project manager who is so passionate about your idea that he manages to morph into the best power networking evangelist you could possibly ask for.

Be flexible, and start with people who resonate with what you’re trying to do. You may not be able to use them all right away, but trying to wedge in the right role with only a half-hearted passion is not as effective as a passionate person who can figure out how to take on the most urgent needs of a new role.

3. Don’t Be So Protective of the Idea that You’re Unwilling to Discuss it
This is a hard one for some entrepreneurs. They are so concerned with their intellectual property or the fact that someone might “steal” their idea that they are afraid to say too much. But the fact is that, unless you can do everything yourself, you need to talk to people, tell them your idea and get their (verbal and non-verbal) feedback. That’s the only way you can hone your message and the only way you can flesh out your team.

Just remember: building a new business is an insane amount of work. Yes, it’s true, someone could steal your idea (or parts of it), but you are never going to make traction on it if you don’t talk about it. What good is it to protect something that you never end up using? Most of the people you meet aren’t going to be interested enough to bother (sorry, but it’s true). While they may find the idea interesting, it would really have to touch a nerve with them to bother trying to go for it themselves. Odds are better that they’d join you in your efforts, rather than trying to start out on their own from scratch.

4. Network Like a Maniac
Again, friends and family may be viable options for team members, but strangers have tons of value to an entrepreneur with a perkulating idea. And no matter how shy or introverted you may be, if you’re going to be an entrepreneur, you need to find ways to push through your shyness and talk to people. So pick half a dozen or so local social events in your space (or related spaces), and start attending. Make a goal before you walk into the room that you are going to spend at least X minutes having conversations with at least Y different people. And then stick to your goals. It really will get easier over time.

And, in the immediate term, this approach will help you test out your language, find the core ideas that are resonating with people, and start dialogs that can help you improve both your idea and your messaging about it — all while being on a tacit man-hunt for a prospective team. The great thing about networking events, is that as your language gets crisper and your passion for your idea becomes more recognizable to those you meet, it opens secondary sets of doors. The person you meet at the event may not be a great fit, but they could know someone who is. You’ll never know until you try talking to new people.

5. Devote Time to Following Up
The biggest mistake people make after attending a networking event is not immediately following up. This is especially true if the person said they knew someone else who they wanted to connect you to. You have a short window in which you are memorable enough to take advantage of that potential connection, so don’t let it pass. Reach out to follow-up within 24 hours. Don’t let it slip.

And then, once you have someone who is interested — whether directly or via a referal — arrange time for a face-to-face. Coffee, lunch, whatever, just get together in person. Something relaxed and non-threatening that gives you both the chance to talk is the best way to see what common ground you have, and whether or not it makes sense to keep talking.

All in all, building a team is quite a bit like dating. You can spend all your time looking in the places where you’re “supposed” to find someone compatible, and then get into a fender-bender on the freeway with the person who turns out to be the world’s most ideal fit. You can’t ever predict where they’ll come from. The only way you’re going to find them, is by opening up the possibilities, considering options you haven’t previously explored, and engaging with new crops of people on a regular basis.

People can be gloriously surprising when you give them the chance.  Don’t rule someone out just because you think you know what they can do and that it’s not what you need.  If in doubt, ask them what it is they’d like to do or how they’d ideally like to contribute.  You could find that the former sales guy wants to get back to his developer roots, and is just looking for the right opportunity.

Then, once you think you’ve found the right person (or people), re-read Tim’s post. His suggestions are good ones — once you find the right people to bring on the bus.