Successful Startup 101 Magazine - Women's Issue 2014

by Tabitha Naylor

  You may be asking yourself why you need to know something if you have a cofounder who knows already.

  Expectations: You should have some knowledge in every aspect of your startup. There will obviously be large holes in your knowledge because some business areas require a lot of education, such as software programming or the financials, but having some knowledge in each department is helpful. This can provide you with some insight as to what is going on in your business; this way, you aren’t completely oblivious if something happens. If your cofounder is busy or out of town, you must be able to step up to the plate and know who to call if something breaks or what the next step to take is to find a solution.

  A good business plan is the key to success.

  For some reason, people in general think having a plan is the best solution to avoiding chaos. Then, when something goes awry you can panic and have absolutely no idea what to do next.

  Yes, a business plan can help lay things out and begin a startup successfully. Depending what kind of business you’re starting, a plan can help you maintain a guideline as to how things are supposed to be done or what your prediction may be for the future.

  Expectations: Stay realistic and remember: a business plan is simply full of predictions. The future can never be known even if you do everything in your power to control it. Expect your business plan to be a guideline rather than something that is set in stone. Things can always go in different directions and creating a new business plan every time something changes is absurd.

  3 Hardships Women Must Overcome to be Successful

  Although you do see many women in the business and tech world, let’s face it: they still face many obstacles that men don’t.

  Women are slowly becoming equal to men in almost every aspect of life, whether it’s climbing the corporate ladder or running for high-level positions in politics. Women can do everything that men can do… but they still face some major challenges and difficulties when it comes to starting and successfully growing a business.

  Letting Go of Their Fears

  While you don’t have to overcome your fear of heights when it comes to being a female entrepreneur, there are still many fears a woman holds onto during her journey to success.

  Becoming a leader in the industry can be scary. Many women are afraid of taking the next step or moving up to the next level of success. Why? Because they want to be treated with respect but also still be treated as a woman. In the eyes of some, women who are successful or focused on their careers are considered ‘less feminine’ or ‘money-driven’; neither of which are necessarily true.

  It is important to let go of the fear that others will not accept you or your success. Be proud of your success and accomplishments - regardless of who recognizes these feats.

  Funding Your Startup

  If you are a startup founder seeking funding, as a female, this task can prove to be more difficult than others.

  In some instances, men look at other men as mirrors of themselves. They see a piece of their ambition that they once had and are more willing to fund their startups because they’re easier to relate to than a woman, although there are many men who fund women owned startups.

  Research thoroughly. Analyze your resources. Make sure all your I’s are dotted and T’s are crossed. And most important, don’t be afraid to hear the answer ‘no’. Being rejected or denied should only fuel your motivation to keep trying and working to achieve your goals.

  Making Decisions and Handling Expectations

  Decision making can be difficult for women – almost as difficult as dealing with expectations that weren’t met or setting your goals too high.

  Setting goals, creating outlines and making plans are a part of the female nature. You want everything to go according to plan but sometimes it doesn’t work out that way. Learning how to let go of your expectations is hard, but can be EXTREMELY beneficial to your business because you will be ready and prepared to make changes on a whim.

  Some women have difficulties deciding where to eat for lunch, let alone making a major decision for her business. Prepare yourself to make decisions. It is your business, so you are required to make the best choices possible based on what you think is best for your business.

  Women are naturally programmed to become emotionally connected to major areas of their lives, including their businesses and professional relationships. One of the challenges many women are faced with is making a dramatic choice that may wind up hurting someone or causing someone to lose a job. It’s important to ALWAYS remember that it’s strictly a business decision. You must let go of these emotions and stay focused what’s best for your company… no matter how difficult that may be.

  Being a woman in the startup space can be tough. Thankfully as a gender, we’re all in this together, which means we’re all facing the same types of struggles. So the next time you have a bad meeting or have to make a tough business choice that feels like it’s eating you a live, take a deep breath. Then, make a quick trip to Starbucks. Go grab lunch. Take a 5 minute walk outside. Do something to unwind. And while you are, look around you. I guarantee you’ll see at least one female entrepreneur (or aspiring entrepreneur) during this “downtime.” And when you see her, flash her a genuine smile – and take solace in knowing that no matter how you may be feeling at the time, you’re not alone… and most important, that you CAN do this. We all can!

  Do You Have What It Takes to Start Your Own Business?

  By Rieva Lesonsky

  What qualities do successful small business owners have in common? A new survey by Deluxe Corp. sought to find out by asking entrepreneurs about their history, attitudes and characteristics that led to business success. How do you measure up? According to Deluxe:

  Small business owners are optimists. You’ll deal with lots of setbacks and obstacles in your road to business success, so you need to have a positive outlook. In the Deluxe survey, a whopping 86 percent of respondents believe they can do anything they set their minds to.

  Small business owners are comfortable with failure. The road to business success is paved with failures, but that’s OK for entrepreneurs in the study. More than three-fourths (77 percent) say they would rather learn from failure than never try at all.

  Small business owners keep it all in the family. Having family members who have run businesses is a common thread among successful small business owners. Whether it’s learning the ropes of business success at an early age or simply being exposed to the realities of entrepreneurship that makes the difference, more than three-fourths (76 percent) of small business owners Deluxe polled have a family member who owned a small business.

  Small business owners like to be in charge. More than half (54 percent) of entrepreneurs in the survey say they started their companies because they wanted to work for themselves instead of having a boss. A majority (89 percent) described themselves as leaders.

  Small business owners like to get things done. You may be dreaming about starting a business, but for business success, you need to take the next step. Seventy-eight percent of entrepreneurs in the survey describe themselves as doers and 80 percent say they’re practical (80 percent).

  Of course, not all small business owners are the same, and there are many reasons to start a business. Deluxe found the small business owners in the study fell into one of seven categories:

  All Heart: These entrepreneurs started a business to do what they love and share it with others.

  Encore Career: These entrepreneurs are older, entering a second phase of their careers, and took a risk with starting their own businesses.

  Passionately Confident: These risk-takers are born business owners who believe in  choosing their own paths in life.

  All in the Family: Traditional types, these entrepreneurs inherited the family business.

  My Way: These entrepreneurs were motivated by taking back control of their time. They started their companies to gain control over their schedules and hours. (They’r
e more likely to be women).

  Mastering the Niche: What we think of as the classic entrepreneur, these business owners saw an opportunity and wanted to capitalize on it.

  Boss-me-not: These former business professionals left their for-profit, corporate jobs because they wanted to be their own bosses.

  Isn’t it good to know that, whichever category you fall into, you can make a go of your business?

  About Rieva Lesonsky

  Rieva Lesonsky is CEO of GrowBiz Media, a media and custom content company focusing on small business and entrepreneurship. Email Rieva at rieva@smallbizdaily.com, follow her on Google+ and Twitter @Rieva, and visit her website SmallBizDaily.com to get the scoop on business trends and sign up for Rieva’s free TrendCast reports.  

  This article originally appeared here.

  6 Ideas For Starting A Business

  By Mary Ellen Biery

  Is there anything more American than starting your own business?

  With huge success stories like Bill Gates, Sam Walton and Mark Cuban, Americans see what a good idea and working hard can accomplish, and many regularly hear that independent streak calling them. A U.S. unemployment rate that remains around 7.6 percent also means that many Americans have been unable to find a full-time job with an employer, so they may be looking for ways to earn a living on their own.

  Indeed, nearly half of Americans dream of starting a business, according to a recent survey by The UPS Store. And while the number of “business births” and their associated employment remain below pre-recession levels, small businesses have been at the core of the economic expansion, according to the U.S. Small Business Administration. Small businesses, which the SBA defines as fewer than 50 employees, represent more than 99 percent of all businesses and about half of the private-sector economy.

  Sageworks, a financial information company, recently researched which service-based businesses could be good options for people looking to start their own companies. Through its cooperative data model, Sageworks collects the financial statements of private companies from accounting firms, banks and credit unions, aggregating the data at an approximate rate of 1,000 statements a day and generating benchmark performance statistics.

  Service-based businesses are good to consider because they typically require little to no capital to start, and a person can walk out the door and start making money with hard work.

  Among U.S. service industries with the highest sales growth in the 12 months ended May 31, Sageworks found several types of businesses that could be started by one person. Each of these industries has also generated solid profit margins relative to all other industries, based on Sageworks’ data.

  “Private companies, on average, are growing at a healthy rate and have improved margins relative to last year,” said Sageworks analyst Libby Bierman. “But they continue to hold off on hiring. If a job seeker is frustrated, these services industries could be a good place to focus energy. They have lower entry costs than most sectors – need little-to-no inventory investment, can operate out of your house or a small rental location, and don’t require heavy equipment.”

  One major industry posting healthy sales growth that lends itself to entrepreneurism is management, scientific or technical consulting services (NAICS code 5416). This includes an array of consultants, such as those focused on management, marketing, energy efficiency, safety and human resources.

  Building and landscape architects and computer systems design are also industries growing strongly, by about 15 percent over the last 12 months. And there are many business ideas within other categories such as personal services (NAICS 8129) and other professional, scientific or technical services (NAICS 5419). For example, startup businesses could focus on photography, translation services, pet care, personal fitness training or something as simple as a balloon-o-gram service. There are many unusual jobs that pay surprisingly well.

  For more information on the types of jobs listed in this chart and their markets, visit the Census Bureau’s industry classification system page, where you can type in the NAICS code to learn more about the industry. Or browse the Bureau of Labor Statistics’ Occupational Outlook Handbook.

  Granted, many of the jobs in the industries with healthy growth rates and margins require certifications, schooling or experience in the field, Bierman said. “But if someone meets those qualifications, their strong growth rates indicate there might be room for more players in these industries,” she added.

  * Sageworks, a financial information company, collects and analyzes data on the performance of privately held companies and provides financial forecasting software.

  These 8 Business Beliefs Are Killing Your Startup

  By Ana Yoerg

  “The common rule of thumb is that of 10 start-ups, only three or four fail completely. Another three or four return the original investment, and one or two produce substantial returns. The National Venture Capital Association estimates that 25% to 30% of venture-backed businesses fail,” according to Wall Street Journal reports.

  Yet VC’s like Marc Andreessen have publicly noted that there is no rational reason for it. We have the talent, we have the ideas, and there is plenty of market demand for smart products and killer services. Our current economy has enough space to accommodate the growth of one hundred times more startups into fully-scaled, sustainable businesses.

  So, why aren’t there more Dropboxes and Airbnb’s?

  Is the startup success story fated to be like a Hollywood wonder, where only a few actors in LA finally make it to the top?

  Possibly. But maybe it’s because too many people are clinging to old business beliefs.

   

  Teaching Old ‘Business Beliefs’ New Tricks

  Now, if you’re a relatively young startup founder, it’s strange to think you can have “old” business beliefs. It seems like something reserved for silver-haired COO’s at Fortune 500 companies, rooted in traditional business practices from decades of experience.

  But first-time entrepreneurs do have old beliefs. They come during those “I have no idea what I’m doing” moments, when to find an answer to a new question or challenge, they fall into the trap of Googling or getting counsel from peers — both of which result in a mountain of startup advice that doesn’t apply to the problem.

  So, what do they do? What any human would: they turn to their own experience for answers. And that is where the dangerous moment comes … when old, life adages are not only false, but when clinging to them blocks their chances of success.

  Here are a handful of ‘old’ business beliefs that could be killing your startup:

   

  1.Follow my vision. Ever hear the one about the executive who surrounded himself with “Yes” people? He always felt confident in every business move, but all those yes-es caught up with him in the end when the customer said “No.” Too many entrepreneurs rely on generic market research or common assumptions to confirm their vision and seemingly “no-brainer” solution. If you have honest conversations with the customers whose problems you are trying to solve, you’ll learn what people really want, not what you think they want.

  2.Figure out what you need, then ask for it. In business, this means pricing a product based on the sales margins you need in order to make the profit that will work on your balance sheet. Ignore that me-first instinct. Instead, work backwards and first find out how much a customer will pay. For instance, at last year’s Lean Startup conference, Lit Motors explained how they built a simulated dealership experience just to find out if their product had a viable market. When 15.7% of showroom visitors put money down on the spot, they knew they could move forward with their pricing strategy.

  3.Perfect planning = excellent execution = success. Think about all of the planning that goes into a wedding, and how little of the detail anyone remembers from it. So, what if the timing is a little off on the march, or if the groomsmen’s ties are a slightly different shade than the bridesmaid dresses.

  In the sam
e way, your product release is important to you, but if everything isn’t 100% as you planned it, will anyone else even notice, or care? No. Just get your product out the door so you can begin the process of learning and iterating. As General Patton once said: “A good plan, violently executed now, is better than a perfect plan executed next week.”

  4.People buy pretty things. No, people are tempted to buy pretty things. That’s why fashion magazines exist. What ultimately drives them to purchase is psychology and an interactive experience. To make people buy, make it easy for them to behave the way you want them to; focus on interaction design, not visual design. An upscale boutique may have hardwood floors and relaxing music, but they’re not selling the kind of volume as the franchise grocery store that carefully places high-margin products at eye-level.

  5.Have lots of friends. Ah, the popularity trap! In business, this translates to the the problem of vanity metrics like visitors, views and followers, and thinking that Facebook “Likes” are going to impact your business. Ditch those and focus instead on what directly impacts your business’s bottom line: conversions, retention rate, customer referrals and even (gasp!) revenue.