Scaling for High Growth Is All about Focus and Checkpoints

5 Ways to Build an Extraordinary Team Culture

The Pitfalls (and Upsides) of Partneringwith Entrepreneurs

Why Do Most Start Ups Fail?

Change Happens to You and Because of You

How to Sell Anything to Anybody

Startups Need To Embrace Zero Paid Media Marketing

7 Must-Have Tools for Networking Online

It's Time to Focus on Retaining Customers

Improve Small Business Cash Flow With These 4 Tips

Customer Centricity

How To Determine The Best Social Media Platform For Your Business

3 Branding Mistakes To Avoid AsYour Business Grows

A Business Guide for Protecting Personal Information

Angel or Devil: Who’s Really InvestingIn Your Start-Up?

Alternative Business Financing: whenthe Bank has to Say NO

To Help Small Business, Change The Definition Of Independent Contractor

5 Ways to Become a Better Leader Today

10 Reasons Why Small Businesses Fail

Crowdfunder Blunder: Leverage Crowdfunding or Waste of Time?

http://successfulstartup101.com/magazine-plans-free/

t’s one of the questions I’m asked the most, “How do you define a scalable startup?” Most of today’s major tech brands might not be defined as scalable if you witnessed their

beginnings. In contrast, there are many companies that looked scalable at one point, but still never reached full potential. So remember, where you start is often not where you end up and pivoting along the way is critical. Many companies start with all the right mechanics: smart people, a decent product, and funding, but somehow they still end up failing. Why and how could this happen?

Companies fail because they get distracted and don’t execute. Ultimately, they’re not focused enough.

I often hear people say, “Wow, Qualtrics has blown up! I see you guys everywhere.” I just chuckle inside, because companies don’t just blow up and scale. It takes hard work and major focus. We started in a basement, and targeted academics exclusively to help them collect and analyze data. And that’s where we stayed for 4 years. By all accounts this basement-born company wouldn’t

have been defined as scalable. The evidence of this is in all those people who had the chance to jump onboard and instead passed up the opportunity. But to be fair, predicting an idea with high growth potential is almost impossible. In truth, many startups are probably just one pivot away from success or failure.

In Qualtrics’ early days, understanding how to scale the business was tough. I remember sitting in that basement in my early twenties trying to find anyone that had experienced a similar growth phase. What I realized as I spoke with most was that there are no shortcuts. No one had the trump card I was looking for… Why? Because there isn’t one.

Jump to 2013 and my idea of scalable has changed from the “basement days” to today, where we still behave like a startup, but are a much more established company, with major investors. I’ve learned to measure scale by using a series of checkpoints. This is incredibly important, because as soon as you get to one checkpoint, then there’s another and another. So you have to continually assess where you are and where you’re going.

Today, I understand this. But early on, as Qualtrics approached a target or goal, I would imagine how everything would just tip, the business would start to scale on its own and run by itself. Yet once we reached a goal it became clear that one successful milestone achieved was just one lap around the track with many more to go. Ten years later and the exact same principles apply. We’re still making those laps and hitting checkpoints along the way, just at a much faster pace.

And the effort to scale remains constant. At first, scalability for us meant turning a profit, hiring our first sales team, launching a major product release for universities, and closing our first enterprise license deal. Today, scalability means international expansion, a multi-product platform, global data centers, and thousands of enterprise customers. The only commonalities are continual checkpoints and the frequent need to hire greatpeople and pivot.

What have I’ve learned since starting Qualtrics in that basement twelve years ago?

1. Figure out what to focus on and then just execute.

2. Look for opportunities to do something better than just about everyone else and go for it.

3. Be flexible and know when to pivot.

I’ve come to understand that scalability is just a series of checkpoints and targets. One of the great benefits of being a Founder is the ability to cross these boundaries in any way that you want to. There’s no right or wrong way. You just need to get through them. Each

checkpoint teaches a lesson and allows you the opportunity to pivot along the way. Most importantly, remember that most great companies don’t end up where they started. But to achieve success, it’s critical to choose, and clear, the right checkpoints.

About the Author

Ryan Smith co-founded Qualtrics in 2002 with the goal of making sophisticated research simple. As CEO, he has grown the company from a basement startup to one of the fastest-growing technology companies in the world, experiencing triple-digit growth in the past four years. Qualtrics has more than 5,000 enterprise customers including half of the Fortune 100, 1,300 colleges and universities worldwide, and 95 of the top 100 business schools.

Scaling for High Growth Is All about

Focus and CheckpointsBy Ryan Smith

t’s one of the questions I’m asked the most, “How do you define a scalable startup?” Most of today’s major tech brands might not be defined as scalable if you witnessed their

beginnings. In contrast, there are many companies that looked scalable at one point, but still never reached full potential. So remember, where you start is often not where you end up and pivoting along the way is critical. Many companies start with all the right mechanics: smart people, a decent product, and funding, but somehow they still end up failing. Why and how could this happen?

Companies fail because they get distracted and don’t execute. Ultimately, they’re not focused enough.

I often hear people say, “Wow, Qualtrics has blown up! I see you guys everywhere.” I just chuckle inside, because companies don’t just blow up and scale. It takes hard work and major focus. We started in a basement, and targeted academics exclusively to help them collect and analyze data. And that’s where we stayed for 4 years. By all accounts this basement-born company wouldn’t

have been defined as scalable. The evidence of this is in all those people who had the chance to jump onboard and instead passed up the opportunity. But to be fair, predicting an idea with high growth potential is almost impossible. In truth, many startups are probably just one pivot away from success or failure.

In Qualtrics’ early days, understanding how to scale the business was tough. I remember sitting in that basement in my early twenties trying to find anyone that had experienced a similar growth phase. What I realized as I spoke with most was that there are no shortcuts. No one had the trump card I was looking for… Why? Because there isn’t one.

Jump to 2013 and my idea of scalable has changed from the “basement days” to today, where we still behave like a startup, but are a much more established company, with major investors. I’ve learned to measure scale by using a series of checkpoints. This is incredibly important, because as soon as you get to one checkpoint, then there’s another and another. So you have to continually assess where you are and where you’re going.

Today, I understand this. But early on, as Qualtrics approached a target or goal, I would imagine how everything would just tip, the business would start to scale on its own and run by itself. Yet once we reached a goal it became clear that one successful milestone achieved was just one lap around the track with many more to go. Ten years later and the exact same principles apply. We’re still making those laps and hitting checkpoints along the way, just at a much faster pace.

And the effort to scale remains constant. At first, scalability for us meant turning a profit, hiring our first sales team, launching a major product release for universities, and closing our first enterprise license deal. Today, scalability means international expansion, a multi-product platform, global data centers, and thousands of enterprise customers. The only commonalities are continual checkpoints and the frequent need to hire greatpeople and pivot.

What have I’ve learned since starting Qualtrics in that basement twelve years ago?

1. Figure out what to focus on and then just execute.

2. Look for opportunities to do something better than just about everyone else and go for it.

3. Be flexible and know when to pivot.

I’ve come to understand that scalability is just a series of checkpoints and targets. One of the great benefits of being a Founder is the ability to cross these boundaries in any way that you want to. There’s no right or wrong way. You just need to get through them. Each

checkpoint teaches a lesson and allows you the opportunity to pivot along the way. Most importantly, remember that most great companies don’t end up where they started. But to achieve success, it’s critical to choose, and clear, the right checkpoints.

About the Author

Ryan Smith co-founded Qualtrics in 2002 with the goal of making sophisticated research simple. As CEO, he has grown the company from a basement startup to one of the fastest-growing technology companies in the world, experiencing triple-digit growth in the past four years. Qualtrics has more than 5,000 enterprise customers including half of the Fortune 100, 1,300 colleges and universities worldwide, and 95 of the top 100 business schools.

* This article originally appeared on Under30ceo.com

mployee teams are one of the best ways to get things done in any business. When you take a group of independently talented people and

create a team in which they can merge their talents, not only will a remarkable amount of energy and creativity be released, but their performance, loyalty and engagement will be greatly improved.

Here are five steps for building an extraordinary team culture:

1. Create a Team-Oriented OrganizationMake teamwork one of your core company values, and put a clear emphasis on self-managing teams that are empowered to make their own decisions. Don't just talk about teamwork. Show your employees the seriousness of your commitment by giving teams the authority to get their jobs done on their own terms, while ensuring they accept responsibility for the results.

r, you have the opportunity to directly and positively influence the success of not just your organization, but also the people who work for you. One of the hallmarks of successful leaders is that they are genuinely concerned about their pr, you have the opportunity to directly and positively influence the success of not just your organization, but also the people who work for you. One of the hallmarks of successful leaders is that they are genuinely concerned about their pr, you have the opportunity to directly and positively influence the success of not just your organization, but also the people who work for you. One of the hallmarks of successful leaders is that they are genuinely concerned about their pr, you have the opportunity to directly and positively influence the success of not just your organization, but also the people who work for you. One of the hallmarks of successful leaders is that they are genuinely concerned about their pr, you have the opportunity to directly and positively influence the success of not just your organization, but also the people who work for you. One of the hallmarks of successful leaders is that they are genuinely concerned about their p

5 Ways to Build an Extraordinary Team CultureBy Peter Economy

2. Assign Serious Team GoalsGive your teams really important assignments and projects, not just planning for next summer's annual company picnic. Bring teams in when you're looking at new trends in the market, or need to see things through new eyes. It's important to mix it up and not have the same people making the same decisions all the time. Ask them to challenge the status quo and the conventional wisdom. This will help to keep your company fresh and ahead of the game.

3. Encourage Informal TeamsMore work in organizations is accomplished through informal teams than formal ones. It's therefore in your interest to encourage the proliferation of informal teams throughout your company, addressing any and all issues and opportunities that capture their interest. When your employees are able to tackle concerns themselves, without elevating every little decision to top management, you'll have a much more efficient organization.

4. Cross-Train Employees

When employees understand how different areas of the company work,

they are more apt to make decisions that benefit the company as a whole, rather than

solely their own department or group. Give your employees the opportunity to learn other people's jobs. Some organizations go as far as switching employee roles on a daily, weekly or monthly basis. And don't forget your managers. Have top executives spend a few days working on the front lines with customers or directly with your product. They'll have a new appreciation for what your regular employees go through on the job.

5. Provide Team ResourcesNo matter how talented a company's individuals might be, teams cannot be successful without the proper resources. Teams need a designated and available place where they can regularly meet. Nothing much can be achieved in an over-crowded lunch room. All employees need to be given adequate time to devote to their team meetings, with no grief from supervisors. And make sure to supply your teams with an appropriate budget if required, and the permission--with guidance--to spend it as they see best for the company.

mployee teams are one of the best ways to get things done in any business. When you take a group of independently talented people and

create a team in which they can merge their talents, not only will a remarkable amount of energy and creativity be released, but their performance, loyalty and engagement will be greatly improved.

Here are five steps for building an extraordinary team culture:

1. Create a Team-Oriented OrganizationMake teamwork one of your core company values, and put a clear emphasis on self-managing teams that are empowered to make their own decisions. Don't just talk about teamwork. Show your employees the seriousness of your commitment by giving teams the authority to get their jobs done on their own terms, while ensuring they accept responsibility for the results.

2. Assign Serious Team GoalsGive your teams really important assignments and projects, not just planning for next summer's annual company picnic. Bring teams in when you're looking at new trends in the market, or need to see things through new eyes. It's important to mix it up and not have the same people making the same decisions all the time. Ask them to challenge the status quo and the conventional wisdom. This will help to keep your company fresh and ahead of the game.

3. Encourage Informal TeamsMore work in organizations is accomplished through informal teams than formal ones. It's therefore in your interest to encourage the proliferation of informal teams throughout your company, addressing any and all issues and opportunities that capture their interest. When your employees are able to tackle concerns themselves, without elevating every little decision to top management, you'll have a much more efficient organization.

4. Cross-Train Employees

When employees understand how different areas of the company work,

they are more apt to make decisions that benefit the company as a whole, rather than

solely their own department or group. Give your employees the opportunity to learn other people's jobs. Some organizations go as far as switching employee roles on a daily, weekly or monthly basis. And don't forget your managers. Have top executives spend a few days working on the front lines with customers or directly with your product. They'll have a new appreciation for what your regular employees go through on the job.

5. Provide Team ResourcesNo matter how talented a company's individuals might be, teams cannot be successful without the proper resources. Teams need a designated and available place where they can regularly meet. Nothing much can be achieved in an over-crowded lunch room. All employees need to be given adequate time to devote to their team meetings, with no grief from supervisors. And make sure to supply your teams with an appropriate budget if required, and the permission--with guidance--to spend it as they see best for the company.

About the AuthorPeter Economy is the bestselling author of Managing For Dummies, The Management Bible, Leading Through Uncertainty, and more than 60 other books. He has also served as Associate Editor for Leader to Leader for more than 10 years.To learn more about Peter, visit www.petereconomy.com.© Peter Economy 2013

ou may not realize it, but the most critical junctures in your career involve selling. Whether you're selling a product or service to a customer, an idea or a plan to your management or investors, or yourself to an employer, your ability to sell will play a huge role in your success.

Unfortunately, most people aren't born with the sales gene. Not only that, selling has sort of a bad rep. I remember telling my parents that I was planning to

transition into sales after a decade in engineering management. Initially, there was dead silence on the phone. Then my dad said, "You mean like a car salesman?"

Looking back on it, that turned out to be the best move of my entire career. Sales taught me about connecting with others, getting them on board with an idea, negotiating, and closing. I put all that to good use throughout my career as a senior executive and in

To en·gage ( n-g j ): To pledge or promise, especially to marry; to draw into; to involve; to enter into conflict with

Corporate executives are exhorted daily by well-meaning public leaders that they should support their local entrepreneurs in order to be good corporate citizens and to bolster local economies. But engagement with entrepreneurs is not a question of conscience or moral imperative; it is a question of strategic self-interest. As any experienced corporate leader knows, engaging entrepreneurs has potentially the same spectrum of pleasure

and pain reflected in the formal definition, from the prospect of inextricable involvement including conflict, to the promise of partnership, to the happy possibility of union in blissful corporate matrimony and acquisition.

Let’s start with the pitfalls, because these are often ignored or discounted in frothy discussions about the economic benefits of entrepreneurship. Why would companies avoid engaging with entrepreneurs?

Waste of time. One CEO of a

Cross-posted from Harvard Business Review Online (original publish date 10.18.2013)

NYSE traded company told me recently that he avoids entrepreneurship networking events in his community because he doesn’t want to be overwhelmed by business seekers pushing cards into his hand, to be followed up by annoying calls to sell anything from gadgets to insurance. Instead, his company has a system for screening and studying the 200 or so proposals they receive annually. He is damned if he will pay attention to each persistent business owner, but then damned as a bad community member if he ignores them. His conclusion — disengage from networking events with entrepreneurs.

Legal entanglement. Many corporate executives have been warned by counsel, or have learned the hard way from experience, that listening to the impassioned pitch of a team of startup entrepreneurs may expose them to litigation further down the road in the event that they embark by themselves upon a similar product or service, even if its origins may be totally unrelated to those described by the entrepreneurs.

Commercial incompetence. Many a corporate executive has braved the skepticism of his or her corporate colleagues and plunged ahead into

well-intentioned alliances with startups. Often, they come to find that the majority of new ventures don’t understand corporate decision cycles, purchasing requirements, compliance processes, post sales customer service, and the like. Persuaded initially by the entrepreneur’s whiz bang innovation, corporate executives can then find themselves stuck in a morass of very basic coaching and grooming of their young new partners on the one hand, while fending off the cries of delayed shipments or poor quality from customers further down the line.

Financial fragility. Intrinsic in entrepreneurship is a long period of living in a twilight fluctuating between breakthrough market success and breakdown (i.e. going out of business) when revenues are too few too late, and expenses are too many too soon. Many corporate executives fail to realize just how close to the precipice many startups are. But that is the territory of entrepreneurship — even with deep financial backing from the

rare venture capitalist or angel investor (yes, these are the exceptions in entrepreneurship, not the rule), long term viability of any venture is far from guaranteed and can leave the corporate partner in the lurch. (No wonder the experienced executive frequently insists that software code be placed in escrow.)

Then there’s the upside. Of course, engagement with entrepreneurs can lead to innovative new products, lucrative investments, new supply chains, advanced technology, and a more creative corporate culture. No one can say with certainty whether or under what circumstances the potential benefits outweigh the potential pitfalls. But if you do believe, as many corporations are learning, that the balance is potentially positive if handled well, then here are a few suggestions for improving the experience and increasing the value:

Define “engagement” at the most senior management levels as a process that has to be learned over a long time, with lots of experimentation and learning from mistakes, in order to derive the

benefits of engaging entrepreneurs, whether through contract, investment, or acquisition.

Allow different functions and divisions autonomy to explore different manifestations of engagements with entrepreneurs, whether through supply chain expansion, joint product development, or technology licensing. These are typically handled by different divisions which may be located, culturally and geographically, far from each other.

Encourage learning across the organization. Although action may be diffuse, the different divisions engaging with entrepreneurs for different strategic purposes have a lot to learn from each other, and can systematically share knowledge and experience by regular meetings and conferences.

Distinguish between global, sector-driven, or division-specific involvement and geographically concentrated ecosystem enrichment. A leading global IT company I know has innovation centers in each of the major continents with the purpose of fostering a broad entrepreneurship ecosystem whether it is directly related to the company’s products and technologies or not. On the other hand, I interviewed a leader of a global life sciences company that was concerned solely with tapping into the best, most specialized technology in a carefully prioritized set of products, regardless of geography

Develop a triage function. It is often surprising to entrepreneurs sitting at the edge of the corporation, but in many cases corporate executives have difficulty engaging with other divisions in their own company. Efficient internal networking and channeling is an ability developed over time within the context of specific corporate structures and cultures. Having an executive function that knows how to interface well with the entrepreneurial community while maintaining credibility and contact within the corporation helps mitigate some of the pain of the process.

Avoid dichotomizing between small and large. Research and practice both reach a clear conclusion: entrepreneurship ecosystems evolve in the context of a rich dialog across the entire spectrum of sizes, technologies and growth rates. The emergence of pure “startup communities” is a revisionist myth. The entire spectrum of private sector companies is interdependent in many complex ways.

Many corporations have withdrawn from entrepreneurial partnering having been burned by a greatly disappointing, acquisition or partnership. But effective alliance management with entrepreneurs is a competency that needs to be strategically defined and tactically executed over time, if executives are to learn the art of entrepreneurial engagement.

Why Do MostStart Ups Fail?

By Scott Shane

If you start a business, odds are that your company will fail. Data from the U.S. Small Business Administration shows that regardless of the year when they are founded, the majority of start-ups go out of business within five years, and two-thirds are no longer operating ten years after being formed.

I bring up this unfortunate statistic to discuss a topic that all entrepreneurs should consider. Why do most start-ups fail?

A lot has been written on this question, suggesting that maybe I don’t need to write about it too. But a recent article by Jay Goltz, got me thinking that some authors try to put too much of a positive spin on the causes of business failure. In his article, Jay wrote that “out-of-control growth” is one of the top ten reasons for small business failure.

Unfortunately, this argument doesn’t jive with the data. Not enough start-ups grow for too-rapid-growth to account for the failure of more than a handful of them. A study by Brian Headd and Bruce Kirchhoff found that only 28 percent of businesses with employees have any employment growth from one year to the next. And a paper written for the Small Business Administration (SBA) by ZoltanAcs and colleagues shows that only about 6 percent of U.S. companies have sales that at least double within four years – a minimum threshold for what might be called “rapid growth.”

Academic research suggests some more basic – and less flattering – reasons why so many start-ups fail. Failure rates are high because a large number of inexperienced entrepreneurs start businesses that shouldn’t be founded in industries that are unfavorable to new companies.

While my statement is harsh, the data supports it. Most entrepreneurs pick unfavorable industries because they are attracted by low entry barriers. Census data show that the rate at which entrepreneurs start businesses in different industries correlates 0.77 with the rate at which

businesses fail in those industries. That is, entrepreneurs favor the very industries in which businesses are most likely to go under.

Many entrepreneurs start companies that stand little chance of out-competing other businesses. Data from the Panel Study of Entrepreneurial Dynamics reveals that nearly 40 percent of the founders of new companies don’t think that their businesses have a competitive advantage. (Because entrepreneurs are an optimistic lot, if a business’s founders don’t think the company has a competitive advantage, what are the odds that it does?)

Not enough entrepreneurs have experience in the industries in which they are starting their businesses. Academic research shows that working in an industry for several years before starting a business enhances the survival prospects of a start-up, but a sizable fraction of entrepreneurs start businesses in industries in which they have no work experience.

Many entrepreneurs fail to take the actions that research shows help businesses to survive. Academic evidence shows that putting in place careful financial controls, emphasizing marketing plans and writing a business plan increase the odds that a new business will survive, yet many founders fail to write plans, have inadequate financial controls and don’t focus on their marketing plans.

True, some start-ups fail because of factors beyond their founders’ control. But responsibility for much of the high failure rate of new businesses lies with the entrepreneurs themselves.

About the AuthorScott Shane is A. Malachi Mixon III, Professor of Entrepreneurial Studies at Case Western Reserve University. He is the author of nine books, including Fool's Gold: The Truth Behind Angel Investing in America ; Illusions of Entrepreneurship: and The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By.

* This article was first published on Small Business Trends, and republished with permission.

Change Happensto You andBecause of Youby Brian Solis

Personally selected by Tabitha Jean Naylor. Written by Brian Solis

I’ve come to learn that having opinions, insights, and standing for something is as taxing as it is rewarding. Like you, I am inspired by what surrounds me, by history and by the possibilities that open up as a result of my experiences. But, it is not easy. And, I suppose it’s not supposed to be.

I too feel challenged by what I should say versus what has already been said, yet also shaped by what should not be vocalized. I’ve come to learn however, that the relationship between self expression and inner monologue defines one’s character. It is what’s is said and what is not said that defines impressions and ultimately the perceptions of who we are and for what it is we stand or hope to achieve.

Satisfaction or dissatisfaction with oneself is trumped by our ability to learn and teach together.

My personal and professional struggles are often tied to emotional rigors that spin me through cycles of vision, validation, vindication, vulnerability and

vanity. These 5 V’s either pull me to learn, participate and teach or push me into a realm of either complacency or uncertainty, both of which result into creative stillness. These 5 V’s however coalesce and produce different results based on the measure we apply to our own actions, reactions and inactions.

Impressions are linked to expressions and ultimately they are ours to define.

If you’re not provocative in some way, how can you possibly stand out to inspire someone else? This is a time for you to choose what it is you do with the inevitable reactions of encouragement, criticism, or resentment you will receive as you discover, share and grow. Take from each experience and move in a direction where you invest and receive value that inspires you and those around you. This is a time to be your own hero…to both inspire and be inspired.

“The impact of your work is the result of the balance you place on reacting to, learning from, and transcending teachers, critics and supporters.”

Change happens to you and because of you. It is what perpetually happens next that defines your character and ultimately your legacy.

This is your time.

About the AuthorBrian Solis is a digital analyst, anthropologist, and futurist and is globally recognized as one of the most prominent thought leaders in new media. He is also the author of the new book, What’s the Future of Business, changing the way businesses create experiences. Visit @briansolis and www.briansolis.com.

CONNECT WITH US FOR EVEN MORE GREAT STARTUP

INFORMATION

You don’t need me to tell you that if a business runs out of cash, it is out of business. Understanding the cash �ow of your business is paramount to its success — old news right? However, this is where many small businesses begin to fail. If your cash �ow is dwindling, you can’t stick your head in the sand. You have to react, and react, quickly. Here are four things you can do right away that may alleviate the problem. 

1. Renegotiate termsDebt can suck more than its fair share of cash from your business. Review your business debts with a critical eye. Are the monthly payments too high to manage? Reach out to your creditors. Explain what problems the debt structure is creating for your business.

Are the interest rates you negotiated in the past,

equitable today? O�er alternative payment plans by way of a re�nance. Your creditors understand that cash �ow is the life’s blood of any business and chances are very good that they will listen carefully to a fact-based argument to lower payments and/or rates. 

2. Review obligationsAny review should include other recurring and non-recurring obligations, from sta�ng requirements to what you pay for paper clips. You aren’t the �rst entrepreneur or startup to overestimate the potential of your enterprise and spend what you think you will earn instead of what you actually earn.

While optimism regarding a business’ prospects is a generally healthy attitude, over-optimism can result in extravagant spending, or committing to contractual obligations that genuinely exceed the needs of your business. This is not the time to lease a BMW as your company car or indulge clients with three martini lunches. Look at everything! If it isn’t necessary, lose it! 

3. Grow your customer base.I understand that this seems like a no-brainer, but it is very easy to become complacent when things are going well. If you are guilty of this, you need to get to work. Have you lost any customers? If so, you need to �nd out why and �x it.

Take a good look at your product or service o�erings. Are they still relevant in today’s market? Has your business introduced anything innovative to attract additional customers? Use existing clients to leverage these new products or services. At the same time, you need to make a critical examination of your marketing strategies. Are they stale? Non-existent? Poorly targeted? Do you see evidence of seasonal trends? Consider all these factors and any others relevant to your business. Maybe you can smooth out the seasonal dips by o�ering a discount during slack times.

 4. Check receivables and inventoryAre you and your sta� on top your accounts receivable. If your business is having a rough patch, maybe your customers are feeling the pinch too! It is always a di�cult balancing act to pressure customers for payment. No one wants to lose a customer, but if you don’t take a reasonable and �rm stand, you won’t be there to o�er them a product or service. Isn’t that bad for both you and your customer? If you are in a particular sensitive situation, due to the nature of your business or you haven’t the personality to take a convincing hard-line on past due receivables, or you just need the cash immediately, you might consider factoring.

By engaging the expertise of a factoring �rm, you put the collection of these receivables in the hands of a third party. In exchange, you get your money up front. There’s a great little online tool which can provide some concrete numbers for your business. You don’t have to contact them. The tool is simple, free and available online. If you like what you see, then you can take it to the next level.

If you are selling widgets, how many do you have in inventory and how much is storing them costing your business? Surplus inventories can be a drain on your business. If you are “overstocked” remember the old adage, “Your �rst loss is your best loss.” If you can’t grow your customer base rapidly enough to shrink inventory levels, bite the proverbial bullet and discount the inventory to get cashing the door and inventory o� the books.

I hope these tips will motivate you to take positive and immediate action to reverse any negative cash �ow trend in your business. If you are doing well, great! However, keep these tips in mind in the day-to-day conduct of your business. Cash �ow problems happen to the best of us.

By Andrew Cravenho

IMPROVE SMALL BUSINESS CASH FLOW WITH THESE 4 TIPS

You don’t need me to tell you that if a business runs out of cash, it is out of business. Understanding the cash �ow of your business is paramount to its success — old news right? However, this is where many small businesses begin to fail. If your cash �ow is dwindling, you can’t stick your head in the sand. You have to react, and react, quickly. Here are four things you can do right away that may alleviate the problem. 

1. Renegotiate termsDebt can suck more than its fair share of cash from your business. Review your business debts with a critical eye. Are the monthly payments too high to manage? Reach out to your creditors. Explain what problems the debt structure is creating for your business.

Are the interest rates you negotiated in the past,

equitable today? O�er alternative payment plans by way of a re�nance. Your creditors understand that cash �ow is the life’s blood of any business and chances are very good that they will listen carefully to a fact-based argument to lower payments and/or rates. 

2. Review obligationsAny review should include other recurring and non-recurring obligations, from sta�ng requirements to what you pay for paper clips. You aren’t the �rst entrepreneur or startup to overestimate the potential of your enterprise and spend what you think you will earn instead of what you actually earn.

While optimism regarding a business’ prospects is a generally healthy attitude, over-optimism can result in extravagant spending, or committing to contractual obligations that genuinely exceed the needs of your business. This is not the time to lease a BMW as your company car or indulge clients with three martini lunches. Look at everything! If it isn’t necessary, lose it! 

3. Grow your customer base.I understand that this seems like a no-brainer, but it is very easy to become complacent when things are going well. If you are guilty of this, you need to get to work. Have you lost any customers? If so, you need to �nd out why and �x it.

Take a good look at your product or service o�erings. Are they still relevant in today’s market? Has your business introduced anything innovative to attract additional customers? Use existing clients to leverage these new products or services. At the same time, you need to make a critical examination of your marketing strategies. Are they stale? Non-existent? Poorly targeted? Do you see evidence of seasonal trends? Consider all these factors and any others relevant to your business. Maybe you can smooth out the seasonal dips by o�ering a discount during slack times.

 4. Check receivables and inventoryAre you and your sta� on top your accounts receivable. If your business is having a rough patch, maybe your customers are feeling the pinch too! It is always a di�cult balancing act to pressure customers for payment. No one wants to lose a customer, but if you don’t take a reasonable and �rm stand, you won’t be there to o�er them a product or service. Isn’t that bad for both you and your customer? If you are in a particular sensitive situation, due to the nature of your business or you haven’t the personality to take a convincing hard-line on past due receivables, or you just need the cash immediately, you might consider factoring.

By engaging the expertise of a factoring �rm, you put the collection of these receivables in the hands of a third party. In exchange, you get your money up front. There’s a great little online tool which can provide some concrete numbers for your business. You don’t have to contact them. The tool is simple, free and available online. If you like what you see, then you can take it to the next level.

If you are selling widgets, how many do you have in inventory and how much is storing them costing your business? Surplus inventories can be a drain on your business. If you are “overstocked” remember the old adage, “Your �rst loss is your best loss.” If you can’t grow your customer base rapidly enough to shrink inventory levels, bite the proverbial bullet and discount the inventory to get cashing the door and inventory o� the books.

I hope these tips will motivate you to take positive and immediate action to reverse any negative cash �ow trend in your business. If you are doing well, great! However, keep these tips in mind in the day-to-day conduct of your business. Cash �ow problems happen to the best of us.

About the Author

Andrew Cravenho is the CEO of CBAC LLC and Factor Auction. As a serial entrepreneur, Andrew focuses on helping both small and medium sized businesses take control of their cash �ow. Prior to CBAC, Andrew founded an annuity �nancing company relieving tort victims of �nancial hardship.

ou may not realize it, but the most critical junctures in your career involve selling. Whether

you're selling a product or service to a customer, an idea or a plan to your management or investors,

or yourself to an employer, your ability to sell will play a huge role in your success.

Unfortunately, most people aren't born with the sales gene. Not only that, selling has sort of a bad rep. I remember telling my parents that I was planning to transition into sales after a decade in engineering management. Initially, there was dead silence on the phone. Then my dad said, "You mean like a car salesman?"

Looking back on it, that turned out to be the best move of my entire career. Sales taught me about connecting with others, getting them on board with an idea, negotiating, and closing. I put all that to good use throughout my career as a senior executive and in management consulting. So can you.

There are four fundamental concepts you need to understand to sell anything to anybody. Learn them, practice them, and above all, make them uniquely your own by determining how to best integrate them into your DNA, your own situation, and the goals you'd like to achieve. Are you hooked? Good. That was the idea.

do your homework.

Know your customer, stakeholder, audience, whoever you're selling to. Know their roles, responsibilities, and

objectives. Understand as much as you can about what's in it for them. Know your competition

and all the possible objections and hurdles you might face.

Just as importantly: know whatever it is you're trying to sell. Know it cold. Whether it's an idea, a product, a plan, whatever, know it inside and out. And, without a doubt, know it better than

anyone else, especially those you're selling to.

There's nothing worse than getting beat up by a customer, your

boss, or a VC because you didn't do your homework and wasted his time. I've

been there. Take it from me; it really sucks. And you can kiss that prospect goodbye, sometimes for good.

ask and listen.

Yes, I know you did your homework and now you know all this stuff. You're so prepared and passionate that you're chomping at the bit to get it out. Don't. Here's why. If you do that, you risk coming across badly. Pushy.Like it's all about you. It isn't about you. It's about the people across from you at the table. It's about their needs and goals.

So ask. Ask how you can help them. Ask what their goals are. Ask what their concerns are. Then listen. Ask leading questions and listen some more. Keep listening until you have a pretty clear understanding of the whole picture.

No, don't badger them. Sometimes you listen a little, give a little, and go back and forth for a few meetings. That's fine. You do want to be flexible and you don't want to be pushy. Just see if you can find a way to get them to speak first. Information is power.

Also listen for what really and truly matters to them. They might say a lot, but if you really listen, you'll discern what's really in it for them, what motivates them, and what obstacles you have to overcome. It's like cracking a nut. Brute force and all you've got is tiny pieces of nutmeat and shells. But if you find the right spot and do it just the right way, it opens cleanly. It's a beautiful thing. It's the same thing in sales.

make a genuine connection.

If you have the world's greatest product or idea, that's great, I'm sure you'll kill it out there. If not, then know this: Every business transaction involves a genuine connection between individuals. It's not always a deep relationship, but it's a relationship, nevertheless.

To connect with people, you have to explain things in a way that resonates with them. If you've done your homework, asked the right questions, and listened carefully, you should know what they're looking for and how to overcome their concerns and meet their needs.

The best way to do that is to do two things: genuinely connect with the person and communicate using anecdotes and analogies that will cut through and resonate with them. That's because people aren't just motivated by logic and information, they're also motivated by emotional and primal needs.

People like to hear about ideas, features, and performance. They need to hear about benefits and what's in it for them even more. But when it's all said and done and they're on their own making a decision, it's an emotional connection to stories and people they'll remember. And that's what will motivate them to go for it.

know whose side you're on.

This is a tough concept for people to grasp but it is key so listen up. You may be sitting across from someone, physically opposite them, but in reality, you're on the same side. The sooner you get into that mindset, the sooner you'll get deals done.

You see, most people have sales all wrong. In a certain sense, you're actually working for the customer or whoever you're selling to. That's because your job is to understand and serve their needs. To help them achieve their goals. That's your job. That means you work for them.

And you know what? Your customers need to know that. That you're there to help them achieve their goals. That you're partners. That you're willing to move mountains for them. And oftentimes, that's what you have to do to get a deal done.

It's true even in big corporations. The sales organization is the customer advocate. In executive meetings, the head of sales represents the customer base. Yes, of course a sales VP works for her company, but if she isn't the internal champion for meeting customer needs, I guarantee those needs will not be met.

And guess what? When people pick up on your genuine desire and ability to jump through any hoop to help make them successful, that, more than anything, will help you get deals done. That's how you become successful. By convincing others that you can and will make them successful--and then doing it.

How to Sell Anything to AnybodyBy Steve Tobak

ou may not realize it, but the most critical junctures in your career involve selling. Whether

you're selling a product or service to a customer, an idea or a plan to your management or investors,

or yourself to an employer, your ability to sell will play a huge role in your success.

Unfortunately, most people aren't born with the sales gene. Not only that, selling has sort of a bad rep. I remember telling my parents that I was planning to transition into sales after a decade in engineering management. Initially, there was dead silence on the phone. Then my dad said, "You mean like a car salesman?"

Looking back on it, that turned out to be the best move of my entire career. Sales taught me about connecting with others, getting them on board with an idea, negotiating, and closing. I put all that to good use throughout my career as a senior executive and in management consulting. So can you.

There are four fundamental concepts you need to understand to sell anything to anybody. Learn them, practice them, and above all, make them uniquely your own by determining how to best integrate them into your DNA, your own situation, and the goals you'd like to achieve. Are you hooked? Good. That was the idea.

do your homework.

Know your customer, stakeholder, audience, whoever you're selling to. Know their roles, responsibilities, and

objectives. Understand as much as you can about what's in it for them. Know your competition

and all the possible objections and hurdles you might face.

Just as importantly: know whatever it is you're trying to sell. Know it cold. Whether it's an idea, a product, a plan, whatever, know it inside and out. And, without a doubt, know it better than

anyone else, especially those you're selling to.

There's nothing worse than getting beat up by a customer, your

boss, or a VC because you didn't do your homework and wasted his time. I've

been there. Take it from me; it really sucks. And you can kiss that prospect goodbye, sometimes for good.

ask and listen.

Yes, I know you did your homework and now you know all this stuff. You're so prepared and passionate that you're chomping at the bit to get it out. Don't. Here's why. If you do that, you risk coming across badly. Pushy.Like it's all about you. It isn't about you. It's about the people across from you at the table. It's about their needs and goals.

So ask. Ask how you can help them. Ask what their goals are. Ask what their concerns are. Then listen. Ask leading questions and listen some more. Keep listening until you have a pretty clear understanding of the whole picture.

No, don't badger them. Sometimes you listen a little, give a little, and go back and forth for a few meetings. That's fine. You do want to be flexible and you don't want to be pushy. Just see if you can find a way to get them to speak first. Information is power.

Also listen for what really and truly matters to them. They might say a lot, but if you really listen, you'll discern what's really in it for them, what motivates them, and what obstacles you have to overcome. It's like cracking a nut. Brute force and all you've got is tiny pieces of nutmeat and shells. But if you find the right spot and do it just the right way, it opens cleanly. It's a beautiful thing. It's the same thing in sales.

make a genuine connection.

If you have the world's greatest product or idea, that's great, I'm sure you'll kill it out there. If not, then know this: Every business transaction involves a genuine connection between individuals. It's not always a deep relationship, but it's a relationship, nevertheless.

To connect with people, you have to explain things in a way that resonates with them. If you've done your homework, asked the right questions, and listened carefully, you should know what they're looking for and how to overcome their concerns and meet their needs.

The best way to do that is to do two things: genuinely connect with the person and communicate using anecdotes and analogies that will cut through and resonate with them. That's because people aren't just motivated by logic and information, they're also motivated by emotional and primal needs.

People like to hear about ideas, features, and performance. They need to hear about benefits and what's in it for them even more. But when it's all said and done and they're on their own making a decision, it's an emotional connection to stories and people they'll remember. And that's what will motivate them to go for it.

know whose side you're on.

This is a tough concept for people to grasp but it is key so listen up. You may be sitting across from someone, physically opposite them, but in reality, you're on the same side. The sooner you get into that mindset, the sooner you'll get deals done.

You see, most people have sales all wrong. In a certain sense, you're actually working for the customer or whoever you're selling to. That's because your job is to understand and serve their needs. To help them achieve their goals. That's your job. That means you work for them.

And you know what? Your customers need to know that. That you're there to help them achieve their goals. That you're partners. That you're willing to move mountains for them. And oftentimes, that's what you have to do to get a deal done.

It's true even in big corporations. The sales organization is the customer advocate. In executive meetings, the head of sales represents the customer base. Yes, of course a sales VP works for her company, but if she isn't the internal champion for meeting customer needs, I guarantee those needs will not be met.

And guess what? When people pick up on your genuine desire and ability to jump through any hoop to help make them successful, that, more than anything, will help you get deals done. That's how you become successful. By convincing others that you can and will make them successful--and then doing it.

About the AuthorSteve Tobak is a Silicon Valley-based strategy consultant, columnist, and former senior executive of the technology industry. Contact Tobak; follow him on Facebook, Twitter, or LinkedIn. This column originally appeared on Inc.com and Fox Business.

* This column originally appeared on Inc.com.

7 Must-Have Tools for Networking Online

By John Corcoran

Social media is a game-changer in many ways. It’s hard to imagine how we ever kept in touch with distant friends and family before Facebook, LinkedIn and all the other social networks came along.

Today, you can update your entire network on how you’re doing with the click of a button or the upload of a photo.

That’s good news – as long as you aren’t one of those types prone to drinking and posting. Drunk dialing looks pretty tame by comparison to pissing off your entire social network all at once.

With social media, it’s easy to be able to maintain a relationship with distant friends and family.

But it also can be quite useful, because a large personal network can be incredibly valuable when it comes to looking for a job, getting clients or customers, or even getting feedback from the crowd.

Personally, I know I keep in touch via social media with a large network of old friends, family, colleagues from past

jobs, old neighbors and college roommates who I wouldn’t be able to keep in touch with otherwise.

Many of these members of my extended network have been helpful in various ways, and have even become clients.

But the truth is, whether Mark Zuckerberg likes it or not, social media is not the “silver bullet” solution to keeping and maintaining a large personal network. In fact, there are numerous other free and inexpensive tools that can be just as valuable as Facebook or LinkedIn.

Here are five indispensible tools you can use for keeping and nurturing a large personal network online, and how you can use them:

Skype – free long-distance calls and interview recording

Skype is a great way to communicate with existing family and friends without spending a fortune on long-distance calls. But you can also use it to grow your network.

I use this free service to do a

virtual “cup of coffee” with people who I’ve met but who don’t live close to me.

You can also use Ecamm Call Recorder for Mac ($20) or Pamela for PC ($20) – to record Skype videos or audio calls. I use this to record my interviews for my podcast. As I’ve written before, podcast interviews can function as a form of “informational interviews” and is a great way to meet people who you admire.

BufferApp – social media posting at ideal times

Buffer allows you to share posts on your social media accounts at optimal times when people you are connected with are most active. For example, if you’re active late at night, you can have your tweets or Facebook messages go out during the day when people will actually see them.

I have the buffer Google Chrome extension installed so I can quickly add something I want to share on Twitter or Facebook to my bufferapp queue to be sent out at some point later, when more people are likely to see it.

FreeConferenceCall – free phone call recording

FreeConferenceCall.com is a free service for easily recording phone conversations. You can use this service to record interviews over the phone and then publish them to your blog, website, or podcast.

Long before I started a podcast, I used this service to quickly and easily record interviews and then post them to my blog. If that is too technically complex for you, then you can simply use the service to record the interview, and then use snippets for a newsletter article or transcribe the interview and post the transcription to your blog.

Contactually – manage follow-ups with your network

I discovered this relatively new service a few months ago, and I love it. Contactually is a service that allows you to manage relationships and follow-up communications. It syncs with your existing email accounts and social media sites and creates unified profiles for each person. Then you can specify how frequently you want to “follow up” with each – i.e. every 30 days, every 60 days, etc.

You can check out this video review I created where I show how I use Contactually. They have both free and paid plans.

Google Hangout – web-based video call software, similar to Skype.

I have used Google Hangout to meet with small groups of people and I have used it for interviews. One nice feature is you can also record Google Hangouts and easily upload them to Youtube.

I’m not a huge Google Plus user, but Google Hangout is a reason for anyone to get more active there.

Screencast-o-matic – simple screencast recording

I love this simple screencasting software, which allows you to record simple screencasts and works directly in your browser. I have used this service to record a variety of screencasts. One cool idea is to record a book review for a new book coming out from an author you want to meet, then to email them a link to the video embedded on your blog. For $15/year, you can upgrade to their Pro version which eliminates the watermark and gives you additional editing tools.

Fiverr.com – small services for $5

On Fiverr, people provide small services for $5. You can get

someone to design a special gift, create a graphic, sing a song, dance a dance, or even hand-draw a message in a short video recording. You can come up with some creative ideas for doing something memorable for anyone in your network.

If you liked this list, I’ve created a handy PDF with an additional 10+ tools for networking online which I think you will love. There’s actually many more than 10 tools listed. But I called it “Top 10 Tools” anyways because I like to exceed your expectations. : )

Social media is a game-changer in many ways. It’s hard to imagine how we ever kept in touch with distant friends and family before Facebook, LinkedIn and all the other social networks came along.

Today, you can update your entire network on how you’re doing with the click of a button or the upload of a photo.

That’s good news – as long as you aren’t one of those types prone to drinking and posting. Drunk dialing looks pretty tame by comparison to pissing off your entire social network all at once.

With social media, it’s easy to be able to maintain a relationship with distant friends and family.

But it also can be quite useful, because a large personal network can be incredibly valuable when it comes to looking for a job, getting clients or customers, or even getting feedback from the crowd.

Personally, I know I keep in touch via social media with a large network of old friends, family, colleagues from past

jobs, old neighbors and college roommates who I wouldn’t be able to keep in touch with otherwise.

Many of these members of my extended network have been helpful in various ways, and have even become clients.

But the truth is, whether Mark Zuckerberg likes it or not, social media is not the “silver bullet” solution to keeping and maintaining a large personal network. In fact, there are numerous other free and inexpensive tools that can be just as valuable as Facebook or LinkedIn.

Here are five indispensible tools you can use for keeping and nurturing a large personal network online, and how you can use them:

Skype – free long-distance calls and interview recording

Skype is a great way to communicate with existing family and friends without spending a fortune on long-distance calls. But you can also use it to grow your network.

I use this free service to do a

virtual “cup of coffee” with people who I’ve met but who don’t live close to me.

You can also use Ecamm Call Recorder for Mac ($20) or Pamela for PC ($20) – to record Skype videos or audio calls. I use this to record my interviews for my podcast. As I’ve written before, podcast interviews can function as a form of “informational interviews” and is a great way to meet people who you admire.

BufferApp – social media posting at ideal times

Buffer allows you to share posts on your social media accounts at optimal times when people you are connected with are most active. For example, if you’re active late at night, you can have your tweets or Facebook messages go out during the day when people will actually see them.

I have the buffer Google Chrome extension installed so I can quickly add something I want to share on Twitter or Facebook to my bufferapp queue to be sent out at some point later, when more people are likely to see it.

FreeConferenceCall – free phone call recording

FreeConferenceCall.com is a free service for easily recording phone conversations. You can use this service to record interviews over the phone and then publish them to your blog, website, or podcast.

Long before I started a podcast, I used this service to quickly and easily record interviews and then post them to my blog. If that is too technically complex for you, then you can simply use the service to record the interview, and then use snippets for a newsletter article or transcribe the interview and post the transcription to your blog.

Contactually – manage follow-ups with your network

I discovered this relatively new service a few months ago, and I love it. Contactually is a service that allows you to manage relationships and follow-up communications. It syncs with your existing email accounts and social media sites and creates unified profiles for each person. Then you can specify how frequently you want to “follow up” with each – i.e. every 30 days, every 60 days, etc.

You can check out this video review I created where I show how I use Contactually. They have both free and paid plans.

Google Hangout – web-based video call software, similar to Skype.

I have used Google Hangout to meet with small groups of people and I have used it for interviews. One nice feature is you can also record Google Hangouts and easily upload them to Youtube.

I’m not a huge Google Plus user, but Google Hangout is a reason for anyone to get more active there.

Screencast-o-matic – simple screencast recording

I love this simple screencasting software, which allows you to record simple screencasts and works directly in your browser. I have used this service to record a variety of screencasts. One cool idea is to record a book review for a new book coming out from an author you want to meet, then to email them a link to the video embedded on your blog. For $15/year, you can upgrade to their Pro version which eliminates the watermark and gives you additional editing tools.

Fiverr.com – small services for $5

On Fiverr, people provide small services for $5. You can get

someone to design a special gift, create a graphic, sing a song, dance a dance, or even hand-draw a message in a short video recording. You can come up with some creative ideas for doing something memorable for anyone in your network.

If you liked this list, I’ve created a handy PDF with an additional 10+ tools for networking online which I think you will love. There’s actually many more than 10 tools listed. But I called it “Top 10 Tools” anyways because I like to exceed your expectations. : )1

2

3

I use this free service to do a virtual “cup of coffee” with people who I’ve met but who don’t live close to me.

“

Social media is a game-changer in many ways. It’s hard to imagine how we ever kept in touch with distant friends and family before Facebook, LinkedIn and all the other social networks came along.

Today, you can update your entire network on how you’re doing with the click of a button or the upload of a photo.

That’s good news – as long as you aren’t one of those types prone to drinking and posting. Drunk dialing looks pretty tame by comparison to pissing off your entire social network all at once.

With social media, it’s easy to be able to maintain a relationship with distant friends and family.

But it also can be quite useful, because a large personal network can be incredibly valuable when it comes to looking for a job, getting clients or customers, or even getting feedback from the crowd.

Personally, I know I keep in touch via social media with a large network of old friends, family, colleagues from past

jobs, old neighbors and college roommates who I wouldn’t be able to keep in touch with otherwise.

Many of these members of my extended network have been helpful in various ways, and have even become clients.

But the truth is, whether Mark Zuckerberg likes it or not, social media is not the “silver bullet” solution to keeping and maintaining a large personal network. In fact, there are numerous other free and inexpensive tools that can be just as valuable as Facebook or LinkedIn.

Here are five indispensible tools you can use for keeping and nurturing a large personal network online, and how you can use them:

Skype – free long-distance calls and interview recording

Skype is a great way to communicate with existing family and friends without spending a fortune on long-distance calls. But you can also use it to grow your network.

I use this free service to do a

virtual “cup of coffee” with people who I’ve met but who don’t live close to me.

You can also use Ecamm Call Recorder for Mac ($20) or Pamela for PC ($20) – to record Skype videos or audio calls. I use this to record my interviews for my podcast. As I’ve written before, podcast interviews can function as a form of “informational interviews” and is a great way to meet people who you admire.

BufferApp – social media posting at ideal times

Buffer allows you to share posts on your social media accounts at optimal times when people you are connected with are most active. For example, if you’re active late at night, you can have your tweets or Facebook messages go out during the day when people will actually see them.

I have the buffer Google Chrome extension installed so I can quickly add something I want to share on Twitter or Facebook to my bufferapp queue to be sent out at some point later, when more people are likely to see it.

FreeConferenceCall – free phone call recording

FreeConferenceCall.com is a free service for easily recording phone conversations. You can use this service to record interviews over the phone and then publish them to your blog, website, or podcast.

Long before I started a podcast, I used this service to quickly and easily record interviews and then post them to my blog. If that is too technically complex for you, then you can simply use the service to record the interview, and then use snippets for a newsletter article or transcribe the interview and post the transcription to your blog.

Contactually – manage follow-ups with your network

I discovered this relatively new service a few months ago, and I love it. Contactually is a service that allows you to manage relationships and follow-up communications. It syncs with your existing email accounts and social media sites and creates unified profiles for each person. Then you can specify how frequently you want to “follow up” with each – i.e. every 30 days, every 60 days, etc.

You can check out this video review I created where I show how I use Contactually. They have both free and paid plans.

Google Hangout – web-based video call software, similar to Skype.

I have used Google Hangout to meet with small groups of people and I have used it for interviews. One nice feature is you can also record Google Hangouts and easily upload them to Youtube.

I’m not a huge Google Plus user, but Google Hangout is a reason for anyone to get more active there.

Screencast-o-matic – simple screencast recording

I love this simple screencasting software, which allows you to record simple screencasts and works directly in your browser. I have used this service to record a variety of screencasts. One cool idea is to record a book review for a new book coming out from an author you want to meet, then to email them a link to the video embedded on your blog. For $15/year, you can upgrade to their Pro version which eliminates the watermark and gives you additional editing tools.

Fiverr.com – small services for $5

On Fiverr, people provide small services for $5. You can get

someone to design a special gift, create a graphic, sing a song, dance a dance, or even hand-draw a message in a short video recording. You can come up with some creative ideas for doing something memorable for anyone in your network.

If you liked this list, I’ve created a handy PDF with an additional 10+ tools for networking online which I think you will love. There’s actually many more than 10 tools listed. But I called it “Top 10 Tools” anyways because I like to exceed your expectations. : )

4

5

6

7

About the Author

John Corcoran is an attorney, former Clinton White House Writer, and creator of SmartBusinessRevolution.com, where he writes about how entrepreneurs and business owners can leverage relationships in the world of business. You can download his free report, Top 10 Tools for Networking Online.

Traditional marketing is all about building awareness for products and brands. In traditional marketing, the emphasis is on getting new customers and very little attention is paid to retaining existing customers. According to best-selling author and marketer, Stan Phelps, traditional marketing is dead. Instead, it’s time to focus on retaining customers.

The data backs Phelps’ claim up: according Gartner research, decreasing customer churn by just 5% can increase profits by 25%-125%. The reason is that it is expensive to get new customers—it’s much easier and more sustainable to keep your current customer and sell them more products.

Phelps discussed how to do this at the last meeting of the NJ Chapter of MENG (Marketing Executives Networking Group). It all boils down to doing that little extra for your customers—like what one Panera store did this summer when it went out of its way to make a bowl of clam

chowder for a young man to take to his grandmother in the hospital. The story wound up on Facebook and it has almost a million likes now!

Panera got great exposure and lots of good will from its simple act of kindness. Going the extra mile for your customers sounds like common sense, but it is far from common practice.

Panera is obviously B2C, but their model has applications for B2B as well. For example, when you send shipments out, pack the boxes in the same order that the manifest is written. Also, take good care of your channel distributors and they will pass the love on to their customers—a.k.a. your end users!

Here are some things Phelps suggests to give customers that little extra:

By Monique de Maio of On Demand CMO

it’s time to focus on retaining customers

Follow up with your customers. This is a really easy way to get started. Call your customers up after they buy from you and ask them if they are happy with the product/service and see if there are any issues you can clear up for them.

Write thank you letters to your customers (hand write them for extreme bonus points!). Writing thank you letter is becoming a lost art today—which makes them very powerful tools when used. Want to retain customers? Thank them for doing business with you!

Handle mistakes well. It is inevitable that you will make a mistake at some point. How you handle that mistake is very important though: don’t just make it right for the customer, go above and beyond. If you do above and beyond to rectify a wrong, you can actually form a stronger bond with the customer than if you had never made the mistake.

What might this look like in action? Well, for home health service provider Nurse Next Door that means they hand deliver fresh baked apple pies to customers when something goes wrong. Nurse Next Door spends about $1,500 a year eating humble pie (literally!), but they estimate that they

save about $100,000 in business from going elsewhere. That’s some pretty good ROI!

Value add. Is there a small extra you can add to your service or product for your customers? For example, when SafeliteAutoGlass replaces windshields in cars, they also clean the customers’ cars for them. See, it takes time for the windshield glue to dry, so rather than just sit around and do nothing while the glue dries, Safelite technicians put away their tools and take out vacuums and clean the car. Safelite has time since it has to wait for the glue to dry and the put it to use.

Waiting… In business, waiting is often as inevitable as it is annoying. But, it doesn’t have to be annoying. If you can provide some extra service or product while your customers are waiting, then they will be very happy. For example, burger chain Five Guys has boxes and boxes of free (and delicious!) peanuts for customers to nosh on while they wait for their burgers.

Make a good first impression. If you’ve been around long enough, chances are you have heard the cheesy pick up line, “do you believe in love at first sight—or should I walk by again?” That may or not work in romance, but it certainly does not work in business. Customers form lasting impressions right away, which is why it is so important to make a good first impression.

If you have ever stayed at a DoubleTree Hotel, you have enjoyed a delicious first impression: starting in the early 1980s, DoubleTree began a tradition of serving warm chocolate chip cookies to customers when the check-in. At the time, it was common for hotels to give cookies to VIPs, but DoubleTree said “all our customers are VIPs,” and today, they have sold 250 million of these cookies. These cookies are quite popular –a fact noted by the New York Times and by the 4.2 million hits a Google search for “DoubleTree cookie” brings up.

Take care of your customers and look for ways to give them just a little extra. You might be surprised at how well your customers respond!

Monique’s Note: For more great tips on customer care, read here

Traditional marketing is all about building awareness for products and brands. In traditional marketing, the emphasis is on getting new customers and very little attention is paid to retaining existing customers. According to best-selling author and marketer, Stan Phelps, traditional marketing is dead. Instead, it’s time to focus on retaining customers.

The data backs Phelps’ claim up: according Gartner research, decreasing customer churn by just 5% can increase profits by 25%-125%. The reason is that it is expensive to get new customers—it’s much easier and more sustainable to keep your current customer and sell them more products.

Phelps discussed how to do this at the last meeting of the NJ Chapter of MENG (Marketing Executives Networking Group). It all boils down to doing that little extra for your customers—like what one Panera store did this summer when it went out of its way to make a bowl of clam

chowder for a young man to take to his grandmother in the hospital. The story wound up on Facebook and it has almost a million likes now!

Panera got great exposure and lots of good will from its simple act of kindness. Going the extra mile for your customers sounds like common sense, but it is far from common practice.

Panera is obviously B2C, but their model has applications for B2B as well. For example, when you send shipments out, pack the boxes in the same order that the manifest is written. Also, take good care of your channel distributors and they will pass the love on to their customers—a.k.a. your end users!

Here are some things Phelps suggests to give customers that little extra:

Follow up with your customers. This is a really easy way to get started. Call your customers up after they buy from you and ask them if they are happy with the product/service and see if there are any issues you can clear up for them.

Write thank you letters to your customers (hand write them for extreme bonus points!). Writing thank you letter is becoming a lost art today—which makes them very powerful tools when used. Want to retain customers? Thank them for doing business with you!

Handle mistakes well. It is inevitable that you will make a mistake at some point. How you handle that mistake is very important though: don’t just make it right for the customer, go above and beyond. If you do above and beyond to rectify a wrong, you can actually form a stronger bond with the customer than if you had never made the mistake.

What might this look like in action? Well, for home health service provider Nurse Next Door that means they hand deliver fresh baked apple pies to customers when something goes wrong. Nurse Next Door spends about $1,500 a year eating humble pie (literally!), but they estimate that they

save about $100,000 in business from going elsewhere. That’s some pretty good ROI!

Value add. Is there a small extra you can add to your service or product for your customers? For example, when SafeliteAutoGlass replaces windshields in cars, they also clean the customers’ cars for them. See, it takes time for the windshield glue to dry, so rather than just sit around and do nothing while the glue dries, Safelite technicians put away their tools and take out vacuums and clean the car. Safelite has time since it has to wait for the glue to dry and the put it to use.

Waiting… In business, waiting is often as inevitable as it is annoying. But, it doesn’t have to be annoying. If you can provide some extra service or product while your customers are waiting, then they will be very happy. For example, burger chain Five Guys has boxes and boxes of free (and delicious!) peanuts for customers to nosh on while they wait for their burgers.

Make a good first impression. If you’ve been around long enough, chances are you have heard the cheesy pick up line, “do you believe in love at first sight—or should I walk by again?” That may or not work in romance, but it certainly does not work in business. Customers form lasting impressions right away, which is why it is so important to make a good first impression.

If you have ever stayed at a DoubleTree Hotel, you have enjoyed a delicious first impression: starting in the early 1980s, DoubleTree began a tradition of serving warm chocolate chip cookies to customers when the check-in. At the time, it was common for hotels to give cookies to VIPs, but DoubleTree said “all our customers are VIPs,” and today, they have sold 250 million of these cookies. These cookies are quite popular –a fact noted by the New York Times and by the 4.2 million hits a Google search for “DoubleTree cookie” brings up.

Take care of your customers and look for ways to give them just a little extra. You might be surprised at how well your customers respond!

Monique’s Note: For more great tips on customer care, read here

* This article originally appeared on OnDemandCMO.com

In five years, what will fundamentally change the customer experience as we know it today?

This Conversation on the Future of Business is brought to you by SAP & MIT Technology Review Custom. 

Before we can accurately answer this question, we must first understand how customers themselves

are changing. Empowered by technology, transparency, and an abundance of information, today’s consumers are dictating new terms of modern commerce. They want their voices to be heard. They insist on transacting across multiple mediums. And they expect their needs to be anticipated. They are a demanding lot, and when their needs are not met, they will not hesitate to patronize a competitor, or broadcast their

Customer Centricity

I think real intelligence about the customer will be applied to every transaction, experience and interaction

displeasure to everyone they know (and even some they don’t).

Not surprisingly, this customer revolution is driving change deep throughout the value chain of most product and service providers. Perhaps that’s why, in response to our question about what will fundamentally change the customer experience as we know it, @ashulman2600 responded simply, “Just about everything.”

Indeed companies are dedicating entire teams to studying this customer phenomenon, even appointing chief customer officers to lead the charge. And the number-one weapon at their disposal is, without question, data. “I think real intelligence about the customer will be applied to every transaction, experience and interaction,” responded @robfinley. “Big Data will be at the core.”

But how will this data transform the customer experience, exactly? Our reader responses can best be summed up by what we’re calling the 3Ps: Participation, Personalization, and Prediction.

Let’s take participation first. Already consumers expect their feedback to be incorporated into product development. Many of these so-called “prosumers” exert influence by reviewing products, “liking” companies, and sharing impressions over various social mediums. But what happens when companies begin actively courting customers to contribute to all aspects of the value chain, collecting structured and unstructured data from a variety of sources to inform everything from the way goods and services are conceived and designed to how they are produced, delivered, and serviced? In this way, the customer experience will be fundamentally altered, molding itself to ever-changing customer desires and fostering greater loyalty, faster development cycles, and increased customization.

Which brings us to personalization. When customers are more active participants in the development cycle, they expect to see products and services that incorporate their input and meet their specific needs. How customer data informs this process is well understood. But these data-driven insights are now being married with powerful custom-manufacturing technologies, such as 3-D printers, that bring true personalization to life. “Customers will continue to want more customized products and services,” posted @ashulman2600. “With advances in 3D printing, digital currency transactions and other areas, consumers will be more robust prosumers.”

And finally, prediction.  Perhaps @Dog21 captured this best in his response: “In 5-years Customer Centricity will be like Wayne Gretzky was in hockey: ‘I skate to where the puck is going to be, not where it has been.’ There will be so much relevant data, business leaders will be able to predict and alter behavior/decisions accordingly, well in advance of market shi�s.”

In five years, the customer experience will be radically different. The expectations of the new breed of customer will continue to soar. And they will be looking for opportunities to participate in the development cycle, personalize their products and services, and have their needs predicted. But, fueled by massive new sources of powerful customer data, companies can position themselves to meet these expectations. And if they don’t, their customers won’t be shy about le�ing them know.

In five years, what will fundamentally change the customer experience as we know it today?

This Conversation on the Future of Business is brought to you by SAP & MIT Technology Review Custom. 

Before we can accurately answer this question, we must first understand how customers themselves

are changing. Empowered by technology, transparency, and an abundance of information, today’s consumers are dictating new terms of modern commerce. They want their voices to be heard. They insist on transacting across multiple mediums. And they expect their needs to be anticipated. They are a demanding lot, and when their needs are not met, they will not hesitate to patronize a competitor, or broadcast their

displeasure to everyone they know (and even some they don’t).

Not surprisingly, this customer revolution is driving change deep throughout the value chain of most product and service providers. Perhaps that’s why, in response to our question about what will fundamentally change the customer experience as we know it, @ashulman2600 responded simply, “Just about everything.”

Indeed companies are dedicating entire teams to studying this customer phenomenon, even appointing chief customer officers to lead the charge. And the number-one weapon at their disposal is, without question, data. “I think real intelligence about the customer will be applied to every transaction, experience and interaction,” responded @robfinley. “Big Data will be at the core.”

But how will this data transform the customer experience, exactly? Our reader responses can best be summed up by what we’re calling the 3Ps: Participation, Personalization, and Prediction.

Let’s take participation first. Already consumers expect their feedback to be incorporated into product development. Many of these so-called “prosumers” exert influence by reviewing products, “liking” companies, and sharing impressions over various social mediums. But what happens when companies begin actively courting customers to contribute to all aspects of the value chain, collecting structured and unstructured data from a variety of sources to inform everything from the way goods and services are conceived and designed to how they are produced, delivered, and serviced? In this way, the customer experience will be fundamentally altered, molding itself to ever-changing customer desires and fostering greater loyalty, faster development cycles, and increased customization.

Which brings us to personalization. When customers are more active participants in the development cycle, they expect to see products and services that incorporate their input and meet their specific needs. How customer data informs this process is well understood. But these data-driven insights are now being married with powerful custom-manufacturing technologies, such as 3-D printers, that bring true personalization to life. “Customers will continue to want more customized products and services,” posted @ashulman2600. “With advances in 3D printing, digital currency transactions and other areas, consumers will be more robust prosumers.”

And finally, prediction.  Perhaps @Dog21 captured this best in his response: “In 5-years Customer Centricity will be like Wayne Gretzky was in hockey: ‘I skate to where the puck is going to be, not where it has been.’ There will be so much relevant data, business leaders will be able to predict and alter behavior/decisions accordingly, well in advance of market shi�s.”

In five years, the customer experience will be radically different. The expectations of the new breed of customer will continue to soar. And they will be looking for opportunities to participate in the development cycle, personalize their products and services, and have their needs predicted. But, fueled by massive new sources of powerful customer data, companies can position themselves to meet these expectations. And if they don’t, their customers won’t be shy about le�ing them know.

This article is part of the Conversation on the Future of Business by SAP & MIT Technology Review Custom. Read the full series: Here

Reprinted with permission. Copyright 2014 MIT Technology Review

How To Determine The Best Social Media Platform For Your Business

By Sarah Greesonbach

With the hundreds of social media platforms available to your business, it’s hard to know where to start. Should you learn to be active on a platform you’re most comfortable with? Should you learn the platform your customers seem to like the most? If only there were an easy way to �gure out where to start….

While it may never be second nature to you — after all your business is your passion, not social media! — it is possible to narrow your activity to a few choice platforms to maximize your ROI for your time. The key is to focus on your ideal customer and create content optimized for the social platforms that customer inhabits.

Choosing the Right Social Media Platform for Your BusinessThe Where Should You Spend Your Time info graphic divides your attention into several different demographics.

For starters, if you’re an Internet Business or a Brick & Mortar Business, you likely have different needs than a B2C Business or a B2B Business. In much the same way, a company seeking increased SEO will want to use a different platform than a company seeking to create Viral Content, or increase Product Sales or Services Sales.

And what about your target market? A company looking to target Children Ages 2-13 or Young Adults Ages 14-19 will no doubt need to be active on a different platform than those looking to influence New Adults ages 18-25, Professionals ages 25-50, or Seniors Ages 50+.

Why is it so important to identify each of these characteristics? Because each of them will influence whether your best time investment is blogging on your website, Google +, Facebook, Twitter, Pinterest, or Linked In.

Case Study: How Can My Online Business Get Viral Content to Young Professionals?Let’s say you’re an online business looking to be develop more viral content for Professionals, in particular males in the age range of 27-35.

Because of how the average 27-35 year old male spends his time on the internet (that is, not sharing updates on Facebook or engaging on Google+), the best platform and strategy for this audience would be creative info graphics on a blogging

platform that are then shared to Pinterest.

Why? Because Tumblr is more popular for teens, Facebook more popular for young adult women, and 27% of Twitter users are Young Adults. You wouldn’t be getting the best investment in your time by posting there.

So, Where Should You Post?But for a Professional male performing a web search at work and at home, wondering how his suit should fit? The SEO on the blog is the number one source to access.

It’s also important to keep in mind that in the same study quoted

above, 84% of U.S. Pinterest users are women. Translation? That’s a great audience to introduce to an amazing info graphic that is useful for that woman’s husband, partner, or friend, and share on Pinterest.

An Infographic in the WildA great example of finding success by choosing the right social media platform for your audience? Just take a look at Real Men Real Style’s break out infographic, “How a Man’s Suit Should Fit”.

Creating this useful, masculine

infographic and sharing it on the highly-optimized blog, they made it easy to find and easy to share through Pinterest and for those performing a web search for “How a man’s suit should fit”. This combination created a maximum return that wouldn’t have happened if it were released on Twitter, Tumblr, or another cross-section of platforms.

Not sure where you should be investing your time? Save the info graphic, circle the keywords that best describe your company, and email it to greesonbachcreative@gmail.com for a free digital strategy consultation!

A company looking to target Children Ages 2-13 or Young Adults Ages 14-19 will no doubt need to be active on a different platform

than those looking to influence New Adults ages 18-25, Professionals ages 25-50, or Seniors Ages 50+.

With the hundreds of social media platforms available to your business, it’s hard to know where to start. Should you learn to be active on a platform you’re most comfortable with? Should you learn the platform your customers seem to like the most? If only there were an easy way to �gure out where to start….

While it may never be second nature to you — after all your business is your passion, not social media! — it is possible to narrow your activity to a few choice platforms to maximize your ROI for your time. The key is to focus on your ideal customer and create content optimized for the social platforms that customer inhabits.

Choosing the Right Social Media Platform for Your BusinessThe Where Should You Spend Your Time info graphic divides your attention into several different demographics.

For starters, if you’re an Internet Business or a Brick & Mortar Business, you likely have different needs than a B2C Business or a B2B Business. In much the same way, a company seeking increased SEO will want to use a different platform than a company seeking to create Viral Content, or increase Product Sales or Services Sales.

And what about your target market? A company looking to target Children Ages 2-13 or Young Adults Ages 14-19 will no doubt need to be active on a different platform than those looking to influence New Adults ages 18-25, Professionals ages 25-50, or Seniors Ages 50+.

Why is it so important to identify each of these characteristics? Because each of them will influence whether your best time investment is blogging on your website, Google +, Facebook, Twitter, Pinterest, or Linked In.

Case Study: How Can My Online Business Get Viral Content to Young Professionals?Let’s say you’re an online business looking to be develop more viral content for Professionals, in particular males in the age range of 27-35.

Because of how the average 27-35 year old male spends his time on the internet (that is, not sharing updates on Facebook or engaging on Google+), the best platform and strategy for this audience would be creative info graphics on a blogging

platform that are then shared to Pinterest.

Why? Because Tumblr is more popular for teens, Facebook more popular for young adult women, and 27% of Twitter users are Young Adults. You wouldn’t be getting the best investment in your time by posting there.

So, Where Should You Post?But for a Professional male performing a web search at work and at home, wondering how his suit should fit? The SEO on the blog is the number one source to access.

It’s also important to keep in mind that in the same study quoted

above, 84% of U.S. Pinterest users are women. Translation? That’s a great audience to introduce to an amazing info graphic that is useful for that woman’s husband, partner, or friend, and share on Pinterest.

An Infographic in the WildA great example of finding success by choosing the right social media platform for your audience? Just take a look at Real Men Real Style’s break out infographic, “How a Man’s Suit Should Fit”.

Creating this useful, masculine

infographic and sharing it on the highly-optimized blog, they made it easy to find and easy to share through Pinterest and for those performing a web search for “How a man’s suit should fit”. This combination created a maximum return that wouldn’t have happened if it were released on Twitter, Tumblr, or another cross-section of platforms.

Not sure where you should be investing your time? Save the info graphic, circle the keywords that best describe your company, and email it to greesonbachcreative@gmail.com for a free digital strategy consultation!

About the AuthorSarah Greesonbach takes social media and content marketing off your to-do list, leaving you to love your business. View more tips for digital and content marketing at http://www.GreesonbachCreative.com.

3 Branding Mistakes To Avoid As Your Business Grows

By Jason Houck

uilding a brand can be an exciting process, and when business is booming, the first instinct of many

marketers is to get new ideas out there as quickly as possible. That instinct is easy to understand – your business is growing, and you want nothing more than to share your excitement with the rest of the world. Unfortunately, in many of these circumstances, marketers fail to notice the big mistakes they’re making in promoting their brand. Take note of these three major branding mistakes in order to avoid making them in your own business.

Straying From Your Brand’s Core IdentityOnce your business starts to grow and you’re ready to build on that growth, expanding you brand is a good idea. But your expansion should never come at the expense of your brand’s core identity. For example, if your brand is built upon finding environmental solutions for small businesses, then it wouldn’t make much sense for you to start selling motorcycle jackets or printing car bumper stickers with your logo on them. Every expansion needs to be aligned with the original principles upon which your company is built. If not, you will come off as phony, or worse, a traitor to your brand’s core values.

Getting Sucked into Buzzword MarketingYou’ve probably heard lots of marketing phrases like this before: “We locally source free range, certified organic food products from small batch sources in order to ensure the highest level of sustainability and food security.” There are lots of appealing words there, but the problem is, none of them mean anything anymore. When a marketing term becomes a buzzword, it means that people are tired of hearing about it. Buzzword marketing is easy to get sucked into, because often buzzwords do provide a good description of what your business offers. However, even if a buzzword is accurate, that doesn’t mean that it’s a good term to use. Instead, think of original ways to describe what your brand has to offer. That way, people will actually want to listen to what you have to say.

Social Media Faux-pasWhen it comes to saying something stupid and having that stupid statement immediately broadcast to millions of people, social media is definitely your best bet. Social media is great for up-to-the-minute communication, but sometimes it’s better to sit back and think about something for a few minutes before tweeting it out for the world to see. Example: During the 2011 uprising in Egypt, fashion designer Kenneth Cole tweeted: “Millions are in uproar in #Cairo. Rumor is they heard our new spring collection is now available online…”�How’s that for poor taste?

The take-away from all of these mistakes is: even though the marketing world moves quickly, sometimes the best policy is to think twice before launching your next marketing plan. Brand growth is a good thing, but growth can quickly turn into a very bad thing if it isn’t managed correctly. Branding is important to your virtual office business, so make sure you get it right.

uilding a brand can be an exciting process, and when business is booming, the first instinct of many

marketers is to get new ideas out there as quickly as possible. That instinct is easy to understand – your business is growing, and you want nothing more than to share your excitement with the rest of the world. Unfortunately, in many of these circumstances, marketers fail to notice the big mistakes they’re making in promoting their brand. Take note of these three major branding mistakes in order to avoid making them in your own business.

About the Author

Hello friends. My name is Jason Houck and blogging along with Social Media Management is my passion. I reside in the mountains of North Carolina and would not trade it for the world. I am 32 years old and single and believe in living life to the fullest. I am here to weigh my mind on issues that we face everyday as an individual and to help you create success on topics, such as social media, family, life and business.

To sum things up, I love God and my family is a big part of my life. I encompass an “I can do it” attitude along with using creativity. If there is something that you would like me to comment on and share my ideas about in my blog, feel free to message me. I also welcome all negative and positive feedback. Until then, happy blogging.

Crowdfunder Blunder: Leverage Crowdfunding or Waste of Time?

Have you ever heard aspiring entrepreneurs casually say: "Oh I'll just put it on Kickstarter". I've heard that quite a bit recently and I thought I'd investigate.

People throw around the word "crowdfunding" like a party favor. Crowdfunding is the networking and pooling of individual funds for a project, often in return for a gift. Last year "crowdfunding" and "crowdsourcing" were buzz words, and the popularity of Crowdfunding sites still reign supreme. In a recent count, every niche seems to have its own crowdfunding site.

Crowdfunding seems like a great way to fund your startup without the hassle of investors that want their money back, and with instant validation from potential customers. Kickstarter, which has to date provided $786 million (as of Sept 2013) in funding is always a great case study for the benefits of crowdfunding. But what many entrepreneurs don't hear about is the flip side. I recently fumbled across YourKickstarterSucks which shows the sad fate of pitches that should never have been posted to begin with. If you think crowdfunding is the best method for gaining some traction on your business idea, consider the following: 10% of projects on

Kickstarter completed their round, without receiving a single pledge, and 56% do not get funding because they don't reach their goal - an unfortunate #entrepreneurfail.

The only way a project will be a good candidate for crowdfunding, is if the target investors and donors are both willing and able to align with the project conceptually and financially.

Now, say you do identify a project that makes sense to crowdfund. Here are some guidelines about posting a project on a crowdfunding site to maximize the returns for both your venture and the investors:

Be realistic about the total goals

Make project crystal clear, concise and super easy to communicate

Show evidence of potential future success - through past sales or market research

Provide compelling gifts for investors/donators

Good luck as you vie for the hearts and wallets of your target market… and cheers to no more crowdfunder blunders.

This comic was created by Kriti Vichare and Shivraj Vichare. It was inspired by the ironies they have seen and have experienced in their small business ventures. You can find their comics on http://www.entrepreneurfail.com. They are the creators of the book Cheating on your Corporate Job: A Comic Look at the Startup Dream.

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Personal data security begins with knowing what information you have and who has access to it. Reviewing how the information flows through your business, who has, or could have access to it is very good place to start. This can be accomplished by

an inventory of computer, laptops, mobile devices, flash drives, disk and any other equipment you have that stores sensitive data. Once the inventory is complete, you may have an idea how you can effectually scale down who knows what; the fewer people who have access to client's personal information, the better.

If your business does not have a legitimate need for storing sensitive personal information, don't keep or collect it.

The laws says Social Security numbers can only be used for lawful purposes, and you may be required by

law to truncate the electronically printed credit or debit card receipts you give your customers. It is a good idea to check the default settings on your software that reads customers credit card numbers or processes the transaction. If it is preset to keep the information permanently change the settings to make sure your are not keeping the information longer than you need. It is your responsibility to understand the vulnerabilities of your computer system. If you are not an IT expert, thoroughly screen IT companies and hire the best fit for your company.

If your employees use laptops computer, restrict the use of laptops to only those employees who need them to perform their jobs; required laptops be stored in a secure place-under lock and key when not in use. Determine which employee really needs personal or sensitive information stored in their laptop. If they don't, delete it with a "wiping" program.

Information can all so be protected by requiring the use of a smart card: thumb print or other biometric, as well as a password to access your computer system.

While we are on the subject, you might what to check on the companies that have YOUR information or that of your company to protect yourself.

When a customer or client trusts their personal information to you, obviously you have a responsibility to take every step necessary to protect it. Additional resources in this subject are:

Federal Trace Commission (FTC) at http://www.ftc.gov.

National Institute of Standards and Technology (NIST) at www.csrc.nist.gov

SysAdmin, Audit, Network, Security) Institute at www.sans.org/top-cyber-security-risks

National Small Business Ombudsman www.sba.gov/ombudsman.

A Business Guide for Protecting Personal InformationBY SANDY GLOVER

any businesses find it necessary to keep personal information about their clients which can include name, Social Security

number, credit card or bank card numbers, address,etc. Keeping client's personal information is necessary for the business to fill orders, send invoices or any number reasons however, if this information is compromised or stolen, it can lead to your client's falling victim of identity theft or fraud and your losing your creditability thus business. How can you protect this information that you have been trusted with, and your own? The answer is a sound security plan:

Keep the information you need for your business. If you don't need the clients date of birth, black it out.

Secure the information. Keep files in a locked safe or secure your hard drive when the business is closed.

Don't leave files in the view of the public.

Install a alarm system and, if possible, closed circuit cameras. Know what goes on in your business when you are not there.

Have a very thorough background screening program in place, the best is with a consumer reporting agency or a private investigation agency who specialize in background screening.

Have a document management program, this includes a shredder-once you no longer need the document, destroy it in a shredder.

Consider having employees signing a confidentially clause agreeing to keep any and all information strictly confidential. This includes sharing or posting pass words.

Use strong pass words and change frequently.

Personal data security begins with knowing what information you have and who has access to it. Reviewing how the information flows through your business, who has, or could have access to it is very good place to start. This can be accomplished by

an inventory of computer, laptops, mobile devices, flash drives, disk and any other equipment you have that stores sensitive data. Once the inventory is complete, you may have an idea how you can effectually scale down who knows what; the fewer people who have access to client's personal information, the better.

If your business does not have a legitimate need for storing sensitive personal information, don't keep or collect it.

The laws says Social Security numbers can only be used for lawful purposes, and you may be required by

law to truncate the electronically printed credit or debit card receipts you give your customers. It is a good idea to check the default settings on your software that reads customers credit card numbers or processes the transaction. If it is preset to keep the information permanently change the settings to make sure your are not keeping the information longer than you need. It is your responsibility to understand the vulnerabilities of your computer system. If you are not an IT expert, thoroughly screen IT companies and hire the best fit for your company.

If your employees use laptops computer, restrict the use of laptops to only those employees who need them to perform their jobs; required laptops be stored in a secure place-under lock and key when not in use. Determine which employee really needs personal or sensitive information stored in their laptop. If they don't, delete it with a "wiping" program.

Information can all so be protected by requiring the use of a smart card: thumb print or other biometric, as well as a password to access your computer system.

While we are on the subject, you might what to check on the companies that have YOUR information or that of your company to protect yourself.

When a customer or client trusts their personal information to you, obviously you have a responsibility to take every step necessary to protect it. Additional resources in this subject are:

Federal Trace Commission (FTC) at http://www.ftc.gov.

National Institute of Standards and Technology (NIST) at www.csrc.nist.gov

SysAdmin, Audit, Network, Security) Institute at www.sans.org/top-cyber-security-risks

National Small Business Ombudsman www.sba.gov/ombudsman.

About the Author

Sandy Glover founded The Gold Shield Agency, Inc. (A consumer reporting agency) in 2008. She brings 20 years of exemplary law enforcement experience to provide clients with results they can depend on and trust. Sandy is located in Florida but has nationwide screening services. She believes staying current with laws and trends as they apply to screening is important. When she is not working, Sandy is active in sea mammal rescue and fosters feral kittens to get them ready for "forever" homes. Please visit http://www.goldshieldli.com to learn more.

any businesses find it necessary to keep personal information about their clients which can include name, Social Security

number, credit card or bank card numbers, address,etc. Keeping client's personal information is necessary for the business to fill orders, send invoices or any number reasons however, if this information is compromised or stolen, it can lead to your client's falling victim of identity theft or fraud and your losing your creditability thus business. How can you protect this information that you have been trusted with, and your own? The answer is a sound security plan:

Keep the information you need for your business. If you don't need the clients date of birth, black it out.

Secure the information. Keep files in a locked safe or secure your hard drive when the business is closed.

Don't leave files in the view of the public.

Install a alarm system and, if possible, closed circuit cameras. Know what goes on in your business when you are not there.

Have a very thorough background screening program in place, the best is with a consumer reporting agency or a private investigation agency who specialize in background screening.

Have a document management program, this includes a shredder-once you no longer need the document, destroy it in a shredder.

Consider having employees signing a confidentially clause agreeing to keep any and all information strictly confidential. This includes sharing or posting pass words.

Use strong pass words and change frequently.

10 Reasons Why Small Businesses Fail

By Jared Mumford

Running a small business is an exciting venture that can lead to the financial freedom simple employees work their whole lives to attain. However, with the great rewards come great risks that can lead us small business owners to financial failures.

I have witnessed friends and family members pursue their own entrepreneurial dreams only to see them shattered not a year into their short-lived careers, mostly due to a number of fatal

but avoidable reasons. Let’s take a look at some of them.

1. No Business Plan

Knowing what your business will be and how you will sell your products or services are not enough to keep it running. You need to have a business plan written out, including (but not limited to) the following:

• your short and long term goals;

• the business’ finances for labor, production equipment, etc.;

• your target markets; and

• marketing.

Having one which outlines every detail will guide your business to the right path.

2. Wrong Reasons

Starting a small business simply because you want to be rich can lead to an unfulfilling experience, where you will always be looking for schemes that can bring you fortune. Before you do, think first about your own interests and passions. Do you believe you can give something of value to people at large? Are you driven enough to overcome the many inevitable obstacles an entrepreneur will face?

3. Inefficient Management

Small business entrepreneurs usually come into their industries with little to no knowledge of handling the multiple facets of a business such as financial management, employee relations, advertising and other essential responsibilities. Educate yourself through short business and finance courses, or hire managers who have expertise in the fields where you are lacking.

4. Lack of Capital

Some entrepreneurs think they will be making profits for their beginning operation cycles, spending most (if not

all) of their resources immediately, only to find out later that they will not have enough funds to start the succeeding cycle/s. Consider every possible cost (overhead, production, equipment, etc.) and save enough money that can be used for at least one fiscal year despite poor sales.

5. Bad Location

It is not enough to set up a store at a location with high human traffic or with a very cheap lease. Opening a restaurant near a school campus can seem like a good idea, but don’t expect too many customers if the food is expensive and there are much cheaper alternatives around.

You need to consider your target market and their habits, as well as the direct competition in the area. Don’t be afraid of spending on prime location, as the increased rate of customers coming into your store and making a purchase will make up for the initial cost.

6. No Online Presence

In this age of high-speed information, people expect to find just about everything on the Internet with their computers and mobile devices. Not having a website or at least a social media page will render your business virtually invisible to a great majority of the world’s population.

You can hire professionals to create a website for you or put up the website yourself. Make accounts for your business on Facebook, Twitter and other leading social media platforms where your target market can usually be found.

7. Uncontrolled Growth

Growth is a good thing unless it is left unchecked and your

generated revenue can’t keep up with the expansion. If your business experiences great success, do not be overeager to spend your profits by immediately buying more equipment or opening up new stores. Stick to the strategies you have set so you can still grow without bankrupting the business.

8. Financial Neglect

Cash is the lifeblood of any business, and there will be no business once that runs out. Therefore, it is imperative that small business entrepreneurs practice strict financial record-keeping so that every penny is duly accounted for. Knowing exactly how much money is going in and out of your business will

correctly guide every decision you make.

9. Lackluster Execution

Having a great business plan will amount to nothing if each objective is tackled with incompetence. Employees who are lazy, dull, bad-mannered and unmanageable will not just cut down on productivity, but will also have a negative effect on the work environment and customer/client relations. Follow strict hiring guidelines and subject your hires to rigorous training to ensure quality output from each one.

10. Poor Marketing

A small business needs to market its brand considering the tough

competition it will face against more established businesses. You need to invest enough resources into promoting your products through the right channels. This is so your target market knows exactly that you can fulfill its needs. Online marketing is a must these days, but you should not ignore the physical reach of traditional marketing methods such as brochures, flyers and business cards.

Ultimately, it is a matter of planning out your overall strategy, assessing your own strengths and weakness, and keeping a good eye on all of your resources—be it financial or human. Consider each of these possible pitfalls, and you can find your small business not just surviving, but thriving in this competitive world.

Running a small business is an exciting venture that can lead to the financial freedom simple employees work their whole lives to attain. However, with the great rewards come great risks that can lead us small business owners to financial failures.

I have witnessed friends and family members pursue their own entrepreneurial dreams only to see them shattered not a year into their short-lived careers, mostly due to a number of fatal

but avoidable reasons. Let’s take a look at some of them.

1. No Business Plan

Knowing what your business will be and how you will sell your products or services are not enough to keep it running. You need to have a business plan written out, including (but not limited to) the following:

• your short and long term goals;

• the business’ finances for labor, production equipment, etc.;

• your target markets; and

• marketing.

Having one which outlines every detail will guide your business to the right path.

2. Wrong Reasons

Starting a small business simply because you want to be rich can lead to an unfulfilling experience, where you will always be looking for schemes that can bring you fortune. Before you do, think first about your own interests and passions. Do you believe you can give something of value to people at large? Are you driven enough to overcome the many inevitable obstacles an entrepreneur will face?

3. Inefficient Management

Small business entrepreneurs usually come into their industries with little to no knowledge of handling the multiple facets of a business such as financial management, employee relations, advertising and other essential responsibilities. Educate yourself through short business and finance courses, or hire managers who have expertise in the fields where you are lacking.

4. Lack of Capital

Some entrepreneurs think they will be making profits for their beginning operation cycles, spending most (if not

all) of their resources immediately, only to find out later that they will not have enough funds to start the succeeding cycle/s. Consider every possible cost (overhead, production, equipment, etc.) and save enough money that can be used for at least one fiscal year despite poor sales.

5. Bad Location

It is not enough to set up a store at a location with high human traffic or with a very cheap lease. Opening a restaurant near a school campus can seem like a good idea, but don’t expect too many customers if the food is expensive and there are much cheaper alternatives around.

You need to consider your target market and their habits, as well as the direct competition in the area. Don’t be afraid of spending on prime location, as the increased rate of customers coming into your store and making a purchase will make up for the initial cost.

6. No Online Presence

In this age of high-speed information, people expect to find just about everything on the Internet with their computers and mobile devices. Not having a website or at least a social media page will render your business virtually invisible to a great majority of the world’s population.

You can hire professionals to create a website for you or put up the website yourself. Make accounts for your business on Facebook, Twitter and other leading social media platforms where your target market can usually be found.

7. Uncontrolled Growth

Growth is a good thing unless it is left unchecked and your

generated revenue can’t keep up with the expansion. If your business experiences great success, do not be overeager to spend your profits by immediately buying more equipment or opening up new stores. Stick to the strategies you have set so you can still grow without bankrupting the business.

8. Financial Neglect

Cash is the lifeblood of any business, and there will be no business once that runs out. Therefore, it is imperative that small business entrepreneurs practice strict financial record-keeping so that every penny is duly accounted for. Knowing exactly how much money is going in and out of your business will

correctly guide every decision you make.

9. Lackluster Execution

Having a great business plan will amount to nothing if each objective is tackled with incompetence. Employees who are lazy, dull, bad-mannered and unmanageable will not just cut down on productivity, but will also have a negative effect on the work environment and customer/client relations. Follow strict hiring guidelines and subject your hires to rigorous training to ensure quality output from each one.

10. Poor Marketing

A small business needs to market its brand considering the tough

competition it will face against more established businesses. You need to invest enough resources into promoting your products through the right channels. This is so your target market knows exactly that you can fulfill its needs. Online marketing is a must these days, but you should not ignore the physical reach of traditional marketing methods such as brochures, flyers and business cards.

Ultimately, it is a matter of planning out your overall strategy, assessing your own strengths and weakness, and keeping a good eye on all of your resources—be it financial or human. Consider each of these possible pitfalls, and you can find your small business not just surviving, but thriving in this competitive world.

Running a small business is an exciting venture that can lead to the financial freedom simple employees work their whole lives to attain. However, with the great rewards come great risks that can lead us small business owners to financial failures.

I have witnessed friends and family members pursue their own entrepreneurial dreams only to see them shattered not a year into their short-lived careers, mostly due to a number of fatal

but avoidable reasons. Let’s take a look at some of them.

1. No Business Plan

Knowing what your business will be and how you will sell your products or services are not enough to keep it running. You need to have a business plan written out, including (but not limited to) the following:

• your short and long term goals;

• the business’ finances for labor, production equipment, etc.;

• your target markets; and

• marketing.

Having one which outlines every detail will guide your business to the right path.

2. Wrong Reasons

Starting a small business simply because you want to be rich can lead to an unfulfilling experience, where you will always be looking for schemes that can bring you fortune. Before you do, think first about your own interests and passions. Do you believe you can give something of value to people at large? Are you driven enough to overcome the many inevitable obstacles an entrepreneur will face?

3. Inefficient Management

Small business entrepreneurs usually come into their industries with little to no knowledge of handling the multiple facets of a business such as financial management, employee relations, advertising and other essential responsibilities. Educate yourself through short business and finance courses, or hire managers who have expertise in the fields where you are lacking.

4. Lack of Capital

Some entrepreneurs think they will be making profits for their beginning operation cycles, spending most (if not

all) of their resources immediately, only to find out later that they will not have enough funds to start the succeeding cycle/s. Consider every possible cost (overhead, production, equipment, etc.) and save enough money that can be used for at least one fiscal year despite poor sales.

5. Bad Location

It is not enough to set up a store at a location with high human traffic or with a very cheap lease. Opening a restaurant near a school campus can seem like a good idea, but don’t expect too many customers if the food is expensive and there are much cheaper alternatives around.

You need to consider your target market and their habits, as well as the direct competition in the area. Don’t be afraid of spending on prime location, as the increased rate of customers coming into your store and making a purchase will make up for the initial cost.

6. No Online Presence

In this age of high-speed information, people expect to find just about everything on the Internet with their computers and mobile devices. Not having a website or at least a social media page will render your business virtually invisible to a great majority of the world’s population.

You can hire professionals to create a website for you or put up the website yourself. Make accounts for your business on Facebook, Twitter and other leading social media platforms where your target market can usually be found.

7. Uncontrolled Growth

Growth is a good thing unless it is left unchecked and your

generated revenue can’t keep up with the expansion. If your business experiences great success, do not be overeager to spend your profits by immediately buying more equipment or opening up new stores. Stick to the strategies you have set so you can still grow without bankrupting the business.

8. Financial Neglect

Cash is the lifeblood of any business, and there will be no business once that runs out. Therefore, it is imperative that small business entrepreneurs practice strict financial record-keeping so that every penny is duly accounted for. Knowing exactly how much money is going in and out of your business will

correctly guide every decision you make.

9. Lackluster Execution

Having a great business plan will amount to nothing if each objective is tackled with incompetence. Employees who are lazy, dull, bad-mannered and unmanageable will not just cut down on productivity, but will also have a negative effect on the work environment and customer/client relations. Follow strict hiring guidelines and subject your hires to rigorous training to ensure quality output from each one.

10. Poor Marketing

A small business needs to market its brand considering the tough

competition it will face against more established businesses. You need to invest enough resources into promoting your products through the right channels. This is so your target market knows exactly that you can fulfill its needs. Online marketing is a must these days, but you should not ignore the physical reach of traditional marketing methods such as brochures, flyers and business cards.

Ultimately, it is a matter of planning out your overall strategy, assessing your own strengths and weakness, and keeping a good eye on all of your resources—be it financial or human. Consider each of these possible pitfalls, and you can find your small business not just surviving, but thriving in this competitive world.

About the Author

Jared Mumford is the owner of SEO Visions, a digital marketing agency, and a partner at All Inclusive Marketing. He lives tucked away on Canada's west coast with his wife and two sons..

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Angel or Devil: Who’s Really Investing In

Your Start-Up?

By Nir Eyal

A friend called me heartbroken, crying. She had spent months looking for investors to fund her fledgling startup and now she had a big problem. Someone was ready to give her the money.

Trouble was, the cash came with a catch. The only investor willing to pony-up the money was someone she didn’t like. She also got the feeling he did not like her much either, and yet, he wanted to invest. “If he was involved, I have the feeling I would quit my company down the road,” she told me over the phone.

Time was running out; she needed the funds and with no other investor ready to commit, she feared she’d have to take the money from someone she couldn’t stand. The very thought made her sick in the stomach.

I felt for her and her dilemma piqued my curiosity. What differentiates a great early-stage investor from someone no entrepreneur wants to take money from unless they absolutely have to?

NEGATIVE VALUELast month, famed investor and Sun Microsystems co-founder, Vinod Khosla, shocked a tech conference audience claiming, “95 percent of VCs add zero value. I would bet that 70-80 percent add negative value to a startup in their advising.” Can Khosla be right? Can investors be a liability rather than an asset?

“I don’t know a startup that hasn’t been through tough times,” Khosla said, and it is during these rough patches that he believes many investors fail their companies. But there are more ways an investor can screw

a company than giving crummy advice.

A classic Harvard Business Review article demonstrates how investors can negatively impact the psyche of startup founders, often with toxic, long-lasting repercussions. The paper’s authors, Manzoni and Barsoux, describe a disorder they call the “set-up-to-fail syndrome.” Though they focus on how this affects the manager-to-employee relationship, I believe the affliction can also manifest in the context of an investor-to-founder partnership, particularly when a first-time entrepreneur is involved.

What is this sabotaging syndrome? It begins innocently enough. The chain reaction usually begins with

the “tough times” Khosla says are part of every company’s lifecycle. Sometimes the investor has pre-existing doubts about the CEO’s abilities, but the infection usually starts when the company misses a minor target or isn’t progressing as quickly as anticipated.

When things do not go as planned, many investors increase supervision of the company and its CEO. The investor’s doubts in the founder begin to show through subtle cues like body language and tone, as well as in not-so-subtle ways like sending

emails asking for more frequent progress reports. The investor may also initiate lengthy discussions, wanting to know how the company intends to get itself back on track.

The investor’s questions are legitimate — it’s his or his firm’s money after all. But the byproduct of the increased scrutiny is the deterioration of the founder’s confidence and creativity. The entrepreneur suspects the investor is losing faith and responds by overcompensating in an attempt to fight the investor’s perception.

The CEO may start working at an unsustainable pace and demand the company’s employees do the

same, squandering mindshare and team morale on unnecessary tasks to placate the investor. Fearful of further disappointing her patron, the CEO may unintentionally paint a rosier view of the company or stop asking for critical feedback.

As the founder shares less, the investor interprets the CEO’s closing-up as an inability to surface problems — a sign of poor judgment and a lack of competence. The investor becomes increasingly frustrated and is now convinced that the CEO requires further oversight.

As the study’s authors point out, “Perhaps the most daunting aspect of the set-up-to-fail syndrome is that it is self-fulfilling and self-reinforcing — it is the quintessential vicious cycle.”

Taking cues from the more experienced investor, the first-time CEO begins doubting her own abilities. She begins performing her job mechanically, avoids risk-taking and spends more time and energy catering to the investor’s requests. The CEO’s self-doubt fuels poor performance, validating the investor’s suspicions and throwing the company into a self-perpetuating death-spiral, which leaves the once-promising CEO dazed, confused, and often times, out of work.

STOPPING THE SYNDROMEThe tragedy of the syndrome is that it is fueled by good intentions. The founder wants nothing more than for the company to succeed and the investor has no intention of destroying value in a company he’s invested in. But according to Manzoni and Barsoux, how people with power react in times of trouble can have a considerable and often deleterious impact on others.

But the set-up-to fail syndrome is preventable and reversible. Both entrepreneurs and investors can take steps to vaccinate themselves from the disease.

When my friend faced the unfortunate choice between an investor she did not want to work with and the potential death of her fledgling company, she had a

difficult decision to make. In her case, she decided to keep looking for other investors, believing that starting a company with the wrong person was worse than not starting a company at all.

But merely finding a good investor is not good enough. Even well-meaning angels can become devils when conditions are challenging.

An antidote to the syndrome is to acknowledge how people in positions of authority influence the performance of others. Whether it involves investors, bosses, or managers, any supervisory relationship can fall prey to a breakdown of confidence. Investors must beware of the trap of labeling founders as deficient and instead stick to judging objective outcomes and circumstances.

In addition, expectations about the degree of supervision should be set early in the relationship. Companies that institutionalize regular dialogues between hierarchies can head-off the syndrome before it gets out of control. A similar practice can help CEOs and investors get along.

PERCEPTION MATTERSFor their part, company founders can prevent the onset of the

syndrome by understanding its potential impact and guard themselves from the performance drains that come from the downward spiral.

The set-up-to fail syndrome can only continue if the CEO perceives that the investor is losing faith in her abilities. Ultimately, founders and investors are on the same team and both want the company to thrive. Therefore, regardless of what the devil investor may say or do, the startup CEO must perform a bit of mental acrobatics to keep her sanity.

If the perception of disappointing an investor is getting in the way of guiding the company, the entrepreneur must choose another point of view. Founders must ward-off the demons of self-doubt by never interpreting investors’ actions as, “You are failing,” but rather, “I want us to succeed.”

REAL ANGELSIn my own experience having worked with several fantastic investors, it was always the great ones who not only had insight, but also the humility to confirm that the CEO knew best. Even during the company’s tough times, interacting with real angels leaves the entrepreneur energized, confident, and more creative than before.

The best angels remain faithful in the face of uncertainty and help CEOs rise to the challenge. They imbibe founders with an omnipotent sense that they can do anything. In short, real angel investors make founders feel like Gods.

A friend called me heartbroken, crying. She had spent months looking for investors to fund her fledgling startup and now she had a big problem. Someone was ready to give her the money.

Trouble was, the cash came with a catch. The only investor willing to pony-up the money was someone she didn’t like. She also got the feeling he did not like her much either, and yet, he wanted to invest. “If he was involved, I have the feeling I would quit my company down the road,” she told me over the phone.

Time was running out; she needed the funds and with no other investor ready to commit, she feared she’d have to take the money from someone she couldn’t stand. The very thought made her sick in the stomach.

I felt for her and her dilemma piqued my curiosity. What differentiates a great early-stage investor from someone no entrepreneur wants to take money from unless they absolutely have to?

NEGATIVE VALUELast month, famed investor and Sun Microsystems co-founder, Vinod Khosla, shocked a tech conference audience claiming, “95 percent of VCs add zero value. I would bet that 70-80 percent add negative value to a startup in their advising.” Can Khosla be right? Can investors be a liability rather than an asset?

“I don’t know a startup that hasn’t been through tough times,” Khosla said, and it is during these rough patches that he believes many investors fail their companies. But there are more ways an investor can screw

a company than giving crummy advice.

A classic Harvard Business Review article demonstrates how investors can negatively impact the psyche of startup founders, often with toxic, long-lasting repercussions. The paper’s authors, Manzoni and Barsoux, describe a disorder they call the “set-up-to-fail syndrome.” Though they focus on how this affects the manager-to-employee relationship, I believe the affliction can also manifest in the context of an investor-to-founder partnership, particularly when a first-time entrepreneur is involved.

What is this sabotaging syndrome? It begins innocently enough. The chain reaction usually begins with

the “tough times” Khosla says are part of every company’s lifecycle. Sometimes the investor has pre-existing doubts about the CEO’s abilities, but the infection usually starts when the company misses a minor target or isn’t progressing as quickly as anticipated.

When things do not go as planned, many investors increase supervision of the company and its CEO. The investor’s doubts in the founder begin to show through subtle cues like body language and tone, as well as in not-so-subtle ways like sending

emails asking for more frequent progress reports. The investor may also initiate lengthy discussions, wanting to know how the company intends to get itself back on track.

The investor’s questions are legitimate — it’s his or his firm’s money after all. But the byproduct of the increased scrutiny is the deterioration of the founder’s confidence and creativity. The entrepreneur suspects the investor is losing faith and responds by overcompensating in an attempt to fight the investor’s perception.

The CEO may start working at an unsustainable pace and demand the company’s employees do the

same, squandering mindshare and team morale on unnecessary tasks to placate the investor. Fearful of further disappointing her patron, the CEO may unintentionally paint a rosier view of the company or stop asking for critical feedback.

As the founder shares less, the investor interprets the CEO’s closing-up as an inability to surface problems — a sign of poor judgment and a lack of competence. The investor becomes increasingly frustrated and is now convinced that the CEO requires further oversight.

As the study’s authors point out, “Perhaps the most daunting aspect of the set-up-to-fail syndrome is that it is self-fulfilling and self-reinforcing — it is the quintessential vicious cycle.”

Taking cues from the more experienced investor, the first-time CEO begins doubting her own abilities. She begins performing her job mechanically, avoids risk-taking and spends more time and energy catering to the investor’s requests. The CEO’s self-doubt fuels poor performance, validating the investor’s suspicions and throwing the company into a self-perpetuating death-spiral, which leaves the once-promising CEO dazed, confused, and often times, out of work.

STOPPING THE SYNDROMEThe tragedy of the syndrome is that it is fueled by good intentions. The founder wants nothing more than for the company to succeed and the investor has no intention of destroying value in a company he’s invested in. But according to Manzoni and Barsoux, how people with power react in times of trouble can have a considerable and often deleterious impact on others.

But the set-up-to fail syndrome is preventable and reversible. Both entrepreneurs and investors can take steps to vaccinate themselves from the disease.

When my friend faced the unfortunate choice between an investor she did not want to work with and the potential death of her fledgling company, she had a

difficult decision to make. In her case, she decided to keep looking for other investors, believing that starting a company with the wrong person was worse than not starting a company at all.

But merely finding a good investor is not good enough. Even well-meaning angels can become devils when conditions are challenging.

An antidote to the syndrome is to acknowledge how people in positions of authority influence the performance of others. Whether it involves investors, bosses, or managers, any supervisory relationship can fall prey to a breakdown of confidence. Investors must beware of the trap of labeling founders as deficient and instead stick to judging objective outcomes and circumstances.

In addition, expectations about the degree of supervision should be set early in the relationship. Companies that institutionalize regular dialogues between hierarchies can head-off the syndrome before it gets out of control. A similar practice can help CEOs and investors get along.

PERCEPTION MATTERSFor their part, company founders can prevent the onset of the

syndrome by understanding its potential impact and guard themselves from the performance drains that come from the downward spiral.

The set-up-to fail syndrome can only continue if the CEO perceives that the investor is losing faith in her abilities. Ultimately, founders and investors are on the same team and both want the company to thrive. Therefore, regardless of what the devil investor may say or do, the startup CEO must perform a bit of mental acrobatics to keep her sanity.

If the perception of disappointing an investor is getting in the way of guiding the company, the entrepreneur must choose another point of view. Founders must ward-off the demons of self-doubt by never interpreting investors’ actions as, “You are failing,” but rather, “I want us to succeed.”

REAL ANGELSIn my own experience having worked with several fantastic investors, it was always the great ones who not only had insight, but also the humility to confirm that the CEO knew best. Even during the company’s tough times, interacting with real angels leaves the entrepreneur energized, confident, and more creative than before.

The best angels remain faithful in the face of uncertainty and help CEOs rise to the challenge. They imbibe founders with an omnipotent sense that they can do anything. In short, real angel investors make founders feel like Gods.

Editor’s Note: Nir Eyal is the author of Hooked: How to Build Habit-Forming Products. For more insights into how products change behavior, join his free newsletter and receive the first chapter of his book.

5 Ways toBecome a Better Leader TodayBy Peter Economy

As a leader, you have the opportunity to directly and positively influence the success of not just your organization, but also the people who work for you. One of the hallmarks of successful leaders is that they are genuinely concerned about their people's personal growth and success. Think carefully about changes you can make in these five areas, and you'll see fast results in how your employees respond to your leadership:

1. Accept the ChallengeOutstanding leaders embrace the challenge of leadership. They understand it is a way of life, not a box to check off on the way to the top, and they sincerely want to work with people and help their organizations succeed. This may sound simple enough, but it is not always so easy. To work with people, you must constantly put into practice superior interpersonal and social skills--your job is to motivate, support and remove obstacles so employees can do their jobs.

2. Skip Fixes That Don't StickEffective leaders do not rely on gimmicks or quick fixes to overcome challenges to their organizations--they consider themselves life-long learners, and they constantly put into practice methods intended to facilitate productivity. They are always looking for ways to help employees improve their productivity and ability to get results. Instead of relying on tips and tricks, be a life-long learner. The key is to keep learning and evolving. Expose yourself to new ideas and discover what works for you as a leader by putting these ideas into practice.

3. Partner With Your EmployeesSuccessful leaders continually cultivate partnerships with their employees, working alongside their people to simultaneously meet objectives and help the employees grow. Build a successful partnership with your employees with good two-way communication and a sound understanding of goals. When possible, offer employees more responsibility in the partnership. Communicate with your employees, provide them with the support they need for success and work with them to make great things happen.

4. Establish Two-Way TrustBuild and maintain open and honest communication with your employees. Encourage employees to communicate constructively among themselves and with management. This promotes two-way trust and an environment in which people feel empowered to speak out when challenged or frustrated. Without the fear of reprimand, employees can celebrate as a group when things are going well and feel confident to seek out solutions when challenged.

5. Be Open to New IdeasOnce trust is firmly established, it's likely that your employees will communicate ideas for improvement. It's a natural outcome of a productive environment: When people feel valued and trusted, they create and innovate. Take the time to listen to them, as someone may discover a solution to a long-standing issue or challenge a long-standing assumption. Today's business environment often requires entrepreneurs and executives to do more with less. Tighter budgets, fewer employees and demands for quick returns on investments are challenges to most organizations. Use technology and tools creatively and efficiently, but don't overlook the potential of one of your greatest assets: your employees. Be open to their ideas and implement them when it makes sense.

You can be a better leader--starting today. What are you waiting for?

About the AuthorPeter Economy is the bestselling author of Managing For Dummies, The Management Bible, Leading Through Uncertainty, and more than 60 other books. He has also served as Associate Editor for Leader to Leader for more than 10 years.To learn more about Peter, visit www.petereconomy.com.© Peter Economy 2013

Alternative Business Financing

when the Bank has to Say NO

Many business owners are frustrated with the lack of funding from their bank. Most banks are declining

approximately 80% of the funding requests that they receive from their small to medium size business clients.

This includes established businesses and particularly start-up ventures.

Alternative Business Financing

Alternative Business Financing

when the Bank has to Say NO

Businesses with less than two years of operational history will not qualify regardless of the credit profile of the owners. Reason: Banks must be conservative as they are lending their depositor's money and must make their funding decision based on the historical track record (success) of the business. Banks expect that the loan will be serviced from the proceeds of the business. Typically, the financial strength of a business with less than two years of solid profits will not meet the bank's minimum funding parameters... even if the business owners personal credit profile is strong. Established businesses with weak cash flow and financial statements are also being declinedd by their bank. Besides Time in Business (TIB) and owner credit history, other elements such as debt load, aging receivables and weak collateral, etc., enter into the risk analysis and funding decision of the bank.

However, there are legitimate alternative funding solutions for small to medium size business owners. These alternative funding solutions are little known and little used. While not all inclusive, these are the typical reasons they are underutilized: First, their banker does not educate the business owner about the alternatives for funding for fear of losing their business client. Second, bank compliance policies often preclude referring their clients to 3rd party funding sources for fear of liability issues. Third: Small business owners wear many hats and simply do not have the time or knowledge to search out legitimate alternative funding solutions and perform the necessary due-diligence so that they are making an informed decision about their prospective funding partner.

Little Known Alternative Funding Solutions for the Small to Medium Size Business OwnerThese are a few of funding solutions that are available that are much faster and do not require the business owner to give up equity in the business or pledge additional collateral and will consider challenge credit situations...

1. Unsecured Business Financing. Available for start-up as well as established businesses. No collateral required, no financials, no tax returns. Business owner need only have strong personal FICO credit scores of 680+, with no derogatories, at least one-credit card with a 3 year history of no late payments that has at least a $5,000 upper limit and a 50% utilization rate. Revolving line of business credit. Typical

funding is in the range of $25k to $50K. Approval decisions in 24-48 hours. Funding in 10-14 days. No upfront fees. Business Credit Partners can double the amount of funding when the business owner has challenged credit. Spouses, relatives, business associates can be the credit partner and they do not have to be active in the day to day operations of the business.

2. Business Revenue Loans. Good for established businesses with owners who have challenged credit situations. FICO Scores as low as 500 acceptable. Funding decision based on the cash flow and business bank balances... not the credit profile of the business owner. Short-term loan... 6. 9, 12,& 18 months. Funds available from $10K to $100K+. Approval decisions in 24-48 hours. No upfront fees. Funding in 7-10 days.

3. Retirement Account Funding. Good for start-ups as well as established businesses if the business owner has an intact retirement account, such as a 401K, 403B, IRA that has at least $35K in the account. This is an IRS approved funding model where the roll-over of the retirement account does not have early withdrawal penalties or tax burdens. Funds can be used to start a business, expand an existing business, buy equipment, remodel, working capital, etc. Credit profiles are not a factor for approval. Funding available from $35K to $200K+ depending on funds that are in the retirement account. Multiple retirement accounts can be roll-over. All or part of the retirement account can be rolled over as needed. Approvals in 48 hours. Not a loan, so there is no interest charges. Fees paid from proceeds of the funding. Funding in 10-14 days.

Visit The CashXchangegroup's web site for details about other legitimate alternative funding solutions that are underutilized, but available to the small business community.

So, if you too are frustrated with your bank having to say no to your funding request, contact The CashXchange Group to discuss your situation. Expect a no-obligation, no-cost, courteous and confidential discussion about how we can assist you with your business funding needs.

Robert JacobsTHE CASHXCHANGE GROUP800-313-6433jacobs@cashxchangegroup.comwww.cashxchangegroup.com

There has been a fundamental shift in the foundation of business in the U.S. Services have replaced manufacturing as the primary growth driver. On one hand, this has created a skills gap for those in the workforce. However, it has also created an opportunity for individuals to become self-employed through freelancing. Freelancing gives individuals an opportunity to take more control of their own destiny and is often a �rst step in establishing a small business that grows and employs others.

Small business growth is the most obvious catalyst for growth in the U.S. economy. There are more than 28 million of them, including solo business owners. In cities like Chicago, small businesses employ half of the workforce.  This means that we need to be highly focused on creating a favorable business environment where small businesses can grow and thrive. However, the U.S. tax code hasn’t kept up with the changes in the business environment and the needs of small business owners.

By Carol Roth

TO HELP SMALL BUSINESS, CHANGE THE DEFINITION OF INDEPENDENT CONTRACTOR

One simple de�nitional change in the tax code – revising the de�nition of an independent contractor, aka a 1099 worker – would provide substantial support to help foster a pro-small business environment.

If you are confused by the di�erence between a 1099 worker/independent contractor and an employee, you are not alone. Per the IRS, “Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.”

This may seem like a small distinction, but to small business owners who are already consumed with burdensome administrative tasks, not to mention a cost structure that may not be yet scalable, it is a signi�cant one.

Many businesses, especially small businesses, use independent contractors and freelancers as a way to �ll in gaps in their business. However, the IRS says that if you perform work that would be done in the normal course of business by an employee (including, amongst other things, not setting your own hours or methodology for completing the work), you are considered an employee, not an independent contractor, for tax purposes.  This stands even if you own your own �rm, have additional clients and/or just plain want to be one.

It is very clear that this outdated de�nition creates a barrier to hiring, especially for small business owners. It means that a freelancer may be considered an employee by IRS standards, meaning additional paperwork and compliance for a small business owner. It a�ects small business owners on both sides – impeding the hiring company from growth and the freelancer from getting more work. If a small business only needs a person for projects, shortened hours or even for part of the year, having an expanded 1099 de�nition would allow an independent contractor to be able to be employed by multiple businesses without creating redundancy in administrative work and other paperwork.

What is the stress and burden for going from no employees to one employee like for a small business? It is signi�cant. It a�ects a business through the cost and time of payroll and reporting.

Plus, there is other compliance that is necessary when you have employees (such as legalities regarding hiring, �ring and more). It may also a�ect the structure of one-person business’s retirement plan.

Independent contractors who are paid more than $600 a year by a business and have a non-corporate entity (LLC, Sole Proprietorships) issue hiring �rms a form called a W-9. The hiring �rm then �les a form 1099-MISC with the IRS each year to report those payments. If the government and the IRS are concerned about income reporting, this 1099 reporting should take care of that concern.

If both parties are in agreement that an independent contractor arrangement makes sense, why would the government stop that? Income and other taxes are still getting paid. While businesses pay and collect Social Security and Medicare taxes (aka FICA taxes) for each employee, an independent contractor is subject to self-employment taxes, which cover both Social Security and Medicare contributions in an amount roughly equivalent to the FICA tax.  So, why should the government and the IRS care which entity is responsible for those taxes? Shouldn’t that be up to the parties in the work arrangement? Allowing more individuals to work as independent contractors as they are hired by other businesses should actually increase tax revenues by making it easier to put people to work and for companies to grow.

With an estimated 22 million of the approximately 28 million small businesses in this country being one-person entities, recognizing the need to change legislation to support freelancers is an important step towards giving small business owners a real voice in Washington.

About the Author

Carol Roth is a contributor for CNBC, bestselling author of The Entrepreneur Equation, recovering investment banker and a small business advocate. She also has an action �gure made in her likeness. Check out her website at www.CarolRoth.com and follow her on Twitter: @CarolJSRoth.

There has been a fundamental shift in the foundation of business in the U.S. Services have replaced manufacturing as the primary growth driver. On one hand, this has created a skills gap for those in the workforce. However, it has also created an opportunity for individuals to become self-employed through freelancing. Freelancing gives individuals an opportunity to take more control of their own destiny and is often a �rst step in establishing a small business that grows and employs others.

Small business growth is the most obvious catalyst for growth in the U.S. economy. There are more than 28 million of them, including solo business owners. In cities like Chicago, small businesses employ half of the workforce.  This means that we need to be highly focused on creating a favorable business environment where small businesses can grow and thrive. However, the U.S. tax code hasn’t kept up with the changes in the business environment and the needs of small business owners.

TO HELP SMALL BUSINESS, CHANGE THE DEFINITION OF INDEPENDENT CONTRACTOR

One simple de�nitional change in the tax code – revising the de�nition of an independent contractor, aka a 1099 worker – would provide substantial support to help foster a pro-small business environment.

If you are confused by the di�erence between a 1099 worker/independent contractor and an employee, you are not alone. Per the IRS, “Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.”

This may seem like a small distinction, but to small business owners who are already consumed with burdensome administrative tasks, not to mention a cost structure that may not be yet scalable, it is a signi�cant one.

Many businesses, especially small businesses, use independent contractors and freelancers as a way to �ll in gaps in their business. However, the IRS says that if you perform work that would be done in the normal course of business by an employee (including, amongst other things, not setting your own hours or methodology for completing the work), you are considered an employee, not an independent contractor, for tax purposes.  This stands even if you own your own �rm, have additional clients and/or just plain want to be one.

It is very clear that this outdated de�nition creates a barrier to hiring, especially for small business owners. It means that a freelancer may be considered an employee by IRS standards, meaning additional paperwork and compliance for a small business owner. It a�ects small business owners on both sides – impeding the hiring company from growth and the freelancer from getting more work. If a small business only needs a person for projects, shortened hours or even for part of the year, having an expanded 1099 de�nition would allow an independent contractor to be able to be employed by multiple businesses without creating redundancy in administrative work and other paperwork.

What is the stress and burden for going from no employees to one employee like for a small business? It is signi�cant. It a�ects a business through the cost and time of payroll and reporting.

Plus, there is other compliance that is necessary when you have employees (such as legalities regarding hiring, �ring and more). It may also a�ect the structure of one-person business’s retirement plan.

Independent contractors who are paid more than $600 a year by a business and have a non-corporate entity (LLC, Sole Proprietorships) issue hiring �rms a form called a W-9. The hiring �rm then �les a form 1099-MISC with the IRS each year to report those payments. If the government and the IRS are concerned about income reporting, this 1099 reporting should take care of that concern.

If both parties are in agreement that an independent contractor arrangement makes sense, why would the government stop that? Income and other taxes are still getting paid. While businesses pay and collect Social Security and Medicare taxes (aka FICA taxes) for each employee, an independent contractor is subject to self-employment taxes, which cover both Social Security and Medicare contributions in an amount roughly equivalent to the FICA tax.  So, why should the government and the IRS care which entity is responsible for those taxes? Shouldn’t that be up to the parties in the work arrangement? Allowing more individuals to work as independent contractors as they are hired by other businesses should actually increase tax revenues by making it easier to put people to work and for companies to grow.

With an estimated 22 million of the approximately 28 million small businesses in this country being one-person entities, recognizing the need to change legislation to support freelancers is an important step towards giving small business owners a real voice in Washington.

About the Author

Carol Roth is a contributor for CNBC, bestselling author of The Entrepreneur Equation, recovering investment banker and a small business advocate. She also has an action �gure made in her likeness. Check out her website at www.CarolRoth.com and follow her on Twitter: @CarolJSRoth.

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