Small Business

The True Impact of Startups on Cities

The True Impact of Startups on Cities

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Take a problem, add a dose of passion, a pinch of innovation and a dash of gumption and you have a startup. Merriam-Webster defines a startup as “the act or an instance of setting in operation or motion” or “fledging business enterprise.” This level of ingenuity and entrepreneurship has led to some of the most successful startups—Facebook, Microsoft, and Google, just to name a few.

Big cities are logical hubs for startups. With the allure of an easy commute, access to all the business essentials, and opportunities at every corner it is easy to see why startups flock to these meccas. The increase of population also has increased greenhouse gas emissions. In short, more people means more pollution. The solution while it may be simple it is not as easy to accomplish—diminish the carbon footprint all the while continuing to grow and expand: enter smart city.

What is smart city? In simple terms it is a city in which technology and local government come together in effort to diminish the effects of pollution and yet promote technological growth. How is this possible? It is actually quite simple, more startups. The Knight Foundation reports that after eighteen months spent researching startups and the city issues they aim to solve they found “a rapid increase in founders and investors who want to solve city problems and believe startups are poised to solve many of our biggest city challenges.” Smart City Summit aims to bridge the gap between city and startup through collaboration and innovation, starting with their annual summits. These summits open the door between city and startup to share knowledge, and hopefully be the catalyst in a lasting relationship.

Not only are startups helping cities become “smarter” by reducing their carbon footprint, but more importantly, they are promoting growth through employment opportunities. Startups provide jobs that would simply not exist without our country’s brave innovators. Some startups are so unique that people will relocate just to be part of something new and exciting. Many want in at the ground floor and being in at the ground floor has historically paid off in a big way. A great example of this is Apple, Inc. Yourstory reports that in 1980 when Apple, Inc. went public, 300 millionaires were created almost instantaneously.

Fun & Profitable Small Business Ideas

Fun & Profitable Small Business Ideas

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Everyone has thought about starting up and running their own business at some point. Think of it. You can be your own boss, you can do what you love, you can have fun and make money. Starting up a business is a lot of work, but if you do it right and well, there’s a lot of reward. Don’t dismiss that business dream you had that one summer, decades ago, your ideas might more profitable than you think.

Need some ideas for starting your own profitable (and even fun) business? Consider a few of these.

Toy Business

Toys? Yes, toys. When you were a kid, you probably came up with some pretty cool ideas about how you could make your existing toys better. Sure, the children’s toy market is competitive, but if you’ve got a fresh idea and a test group of kids, you might have a pretty good chance. Remember, kids are the best (and most honest critics), they will let you know if you’ve got a winner. If you add an educational element, you’ll have bonus points with parents.

As you would with any business, it’s important to remember that all toys, games, and other products targeted to children is safe. Children are a vulnerable demographic, make sure your product is safe. Never try to sell or make a defective toy. Many successful toy makers started out small, just don’t forget the “kid in you” and always stand behind your product.

Event Planner

If you are an organized person with an eye for style and can stretch a dollar, you might make the perfect event planner. Today, with people’s busy schedules and lack of desire to plan their own events, event planners are in high demand. While it can be a competitive field, there’s no lack of need for event planning from small cocktail parties to corporate holiday gatherings to high brow galas.

The Department of Labor’s Bureau of Labor & Statistics reports event planning as a fast growing occupation (about 33% faster than average) and with no sign of slowing down anytime in the near future. The pay can be great, but you will work hard to earn every cent. One big plus with event planning is seeing the finished product: A magical evening.

Errand Services

Errand services could very well be grown up code for “chores”, but such a service is in high demand. Decades ago, people who wanted to run their own errand services had to rely on word of mouth, flyers, or the classifieds, but now the internet (as well as smartphone apps) has made errand services a thriving business idea.

If you don’t mind people calling you up and asking you to pick up their dry cleaning, go grocery shopping, organize the pantry, or even scoop the litter box, you’ll be successful. Some major pluses of starting an errand service is the ability to being your own boss, setting your own rules (like what you will or won’t do), and making good money. You can even vamp up your services my adding pet sitting, dog walking, and general cleaning (all things that are always in requested).

Be your own boss. Have fun, be safe, and make a profit.

Things One Should Look Out For When They’re Starting Up A Business

Things One Should Look Out For When They’re Starting Up A Business

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Entrepreneurs are endlessly creative, and a driving force in the U.S. economy. If you are considering starting up a business, there are several things to look out for prior to investing your time and/or money. A new idea, product or service has the potential for success, but a review of certain facts can help you come to the right decision before you commit.

One: Is There a Market for your Product?

If you are looking for an investor, realize that investors generally prefer to put their money into projects in a growing industry, rather than something new and untried. Niche businesses are less likely to attract investors, but also have the potential of exploding under the right conditions. You may need to put your own money into the project to get it off the ground, and show significant sales before you can attract an investor. If you are committed to proceeding with your idea, your first step is to evaluate the market, and take a long, hard look at the competition. The advantage of a startup in a competitive field is that you don’t have to reinvent the wheel with regard to marketing the product, and can learn from what other companies are doing. The downside is that you are dealing with competition, and any newcomer must have a brilliant marketing strategy to gain a market segment.

Two: Your Organization Chart

The business model can prove to be a make/break for a startup. If your product is still in development, the cost of development should be realistically evaluated before you jump in. If the product exists, and only needs to be released onto the market, your most critical issue is sales. Don’t form a “top-heavy” new business. The owner of a business ideally has the ability to sell the product, as the knowledge of the product and how to interest buyers is pivotal in the success of the enterprise. Hiring the right sales people to get your product sold the most crucial issue at this point in the game. On the back end, on-time delivery of the product or service is equally important for building a customer base. You essentially have just three sections in a new organization: sales, delivery and finances. Focus your attention on developing a sales plan and collateral marketing materials that meet the needs of the market you are entering. As your sales increase, you will need to hire on others, including sales managers (who should be top salespeople themselves, as well as having the right “people skills” to handle sales personnel, as well as motivate and inspire). Focus on what is important in making your organization flourish when you craft your organizing chart. Initially, man up only the most critical jobs, and add more personnel later. Payroll is often the biggest expense, and your organization should be lean and mean.

Three: Publicity

Getting your product reviewed and creating a buzz may appear to be difficult. Start at a local level. Your local media outlets are always searching for content, and if you present a compelling story, they will present it. Get as much media attention as you can, including online reviews, reviews by influential bloggers in your industry, and maintain a flourishing online presence with a website that is kept current, industry blogs that present your company as an industry leader. You can move ahead much faster if you put your “beans” into online marketing campaigns as a priority, and many of these actions are far cheaper than traditional marketing campaigns. As sales increase, you will be able to pay for more expensive forms of advertising. Get your team to participate in local activities, charities and other similar events, raising your profile in the community.

Four: The Right Team

Build a team that can work together. Avoid people who are egotists, arrogant, critical or difficult to deal with. You could end up spending your time resolving intercompany conflicts, and losing the best employees if you choose the wrong people. Your choices when hiring must extend beyond a resume or former achievements. Evaluate the person in front of you as a potential team member – as a human being – as part of your decision. A less experienced person with better people skills may be the best choice. Watch out for any person who comes to you with critical remarks about an earlier employer, or has an unstable work history, moving from job to job, as this usually spells trouble for you in the future. Looking for a partner? Many new businesses fail because the partners get into conflicts. You can avoid this problem by being extremely careful when you choose any business partner – or investment partner. The right team will mean success. Just one “toxic personality” can destroy the entire operation. Get the right team from the start. It is worth taking time to find exactly the right personnel for your team if you want to grow.

Setting Up Your Startup for Success

Setting Up Your Startup for Success

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Starting a new enterprise? It is an exciting time, and nothing makes the entrepreneurial blood pump faster than a new product. You can increase your chances of success if you employ a strategic approach – from the beginning.

Do Your Market Research First

Market research does not have to be a grueling or complex task, but is crucial for understanding the industry in which you plan to get involved. Online research can reveal facts that can guide a successful strategy. Research your competition thoroughly with regard to sales, industry presence, the years in business, number of employees, and other information prior to investing your time and money into a new enterprise.

A Business Plan is a Must

You will never get an investor in your project without a quality business plan. You either need an investor or a strategic partner to help you launch your product or service. Without a business plan, you will be dead in the water. A professionally written plan can be pricey, but there are examples you can find if you are capable of producing the plan yourself. Use a standard format, and ensure that you have all of the elements included in you plan. If you have the funds, invest in a professionally written business plan that includes realistic projections, and information about the competition.

Marketing Your Product

An analysis of your competition is important. You may not have to reinvent the wheel to get sales moving. Large, established firms pay ad agencies top dollar for advertising concepts and strategies, and you can take advantage of their work by analyzing what they are doing. Online marketing is generally less costly than traditional marketing, and is a good starting point for any new enterprise. Your salespeople will need some type of sales collateral that must be available in both soft and hard copies.

Choose Your Target Market

You have an ideal customer or client. Avoid any feeling of desperation, or an inclination to make losing deals just to get a sale. Your product or service is valuable, and if you make shaky deals it can become more and more difficult to deliver. You need the income flowing in the door, but set your price and stick to it rather than giving price cuts.

Don’t Assume You All

You may think you know what your potential customers want, but only surveying them will reveal the actual answers. Take the time to survey your target market and find out what they like/don’t like. This data opens the door to clever marketing strategies that actually work. The results of a survey often come as a shock, and your assumptions may have been completely off the mark. You won’t know until you ask. Don’t assume you know.

Keep Your Overhead Down

Investing in an office space, equipment and hiring personnel will eat up your investment funds faster than you can imagine. Keep the number of employees at the lowest possible minimum as long as possible. Stay lean and mean through the early stages and beyond. Any area where you can cut costs – do it. Any new enterprise generally costs much more than predicted to get off the ground, and if you manage your costs correctly, you can make it through the birth process without having to fold – which many startups do when investment funds run out.

Safety First

You need to protect your employees from harm, as any legal threat puts the whole enterprise in jeopardy. Study up on the safety requirements for your industry. One premises liability claim can put you out of business before you get your enterprise off the ground. If your business involves driving, delivery trucks or other types of transportation, make sure any company vehicles are in good repair and all systems are maintained and repaired if needed. Train all new personnel on issues such as sexual harassment and discriminatory behavior – these can be expensive legal cases.

Sketch it Out

Put your workflow process in writing. Many new enterprises fail when they get through the initial launch and are then unable to deliver the product. The manufacture of any product can be complex, particularly when working with overseas companies. Map it out, and don’t sell more than you can produce. Your service and delivery are the most critical point in whether you will have a repeat customer. Take the time to sketch out your workflow process with every potential glitch, bug or slowdown area identified in advance and processes put in place to resolve issues such as late delivery of components or customers that cancel orders. Expect the unexpected and you’ll deal with these events better.

Technology That Will Make Running a Small Business and/or Startup Easier

Technology That Will Make Running a Small Business and/or Startup Easier

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537489489Running a small business or startup enterprise takes initiative, creativity, and drive. For intrepid individuals courageous enough to undertake it, time and resources are often scarce. That’s why it makes good sense to take full advantage of new available technology to enhance and streamline your business.

The Small Business section of the New York Times offers articles of interest about technology to small business owners, including topics such as:

  • Using Twitter to market small businesses: Micro blogging is the sole method of advertising for many businesses with no marketing budget.
  • Text message marketing: This article claims that text messaging can increase sales and establish customer relationships for a reasonable cost.
  • Managing your online reputation: This includes interacting with customers and monitoring web conversations.

A February 13, 2015 article on Tech Cocktail entitled New Business Technology for the New Year has several technology suggestions for small business owners. The author claims that by working smarter instead of harder with new affordable technology options, small businesses can streamline operations and maximize returns. According to the article, business owners may consider any or all of the following:

  • Social Media: Although social media is a valuable marketing tool, managing it can be time-consuming. For that reason, it is recommended that you choose one or two social platforms that suit your business audience instead of branching out to multiple platforms. The author recommends Twitter for promoting deals or specials, Instagram for visuals, and Facebook for dialogs with customers.
  • Cloud Document Storage: This makes shared documents accessible from home or mobile devices, but controls are still available as to who can edit or access them. The article recommends affordable cloud storage friendly to small business, such as Box, Google Drive, Drop Box, or One Drive.
  • Voice Over Internet Protocol (VoIP) Phone and Fax: This technology has features that can enable small businesses to present a polished image at very low cost. Switching to VoIP phone and fax could help you improve service and image while reducing costs.
  • Mobile Apps: Apps can replace certain traditional business services and can be particularly useful for hands-on business owners and employees who are seldom if ever in an office. Accounting, travel management, point-of-sale, and a number of other useful business apps are available.

In a December 2013 article on Entrepreneur, author Michael Garrity claims that technology is a vital tool that is leveling the playing field for small businesses. In terms of small business technology, the article recommends the following:

  • Move your business to the cloud.
  • Replace expensive POS solutions with an app on your tablet or smart phone.
  • Offer loyalty and rewards programs to your customers using FiveStars, Belly, or Perka at affordable prices.
  • Take advantage of inexpensive tools such as cloud apps for accounting, HR, and other backend productivity.
  • Use marketing and sales plug-in apps to track customers, active leads, sales pipelines, and more.

As covered in this article, with a tablet and a few essential apps, a small business owner can run a customer’s credit card, promote the daily specials on Twitter, manage payroll, and much more.

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Avoiding the Legal Pitfalls of the Hiring Process

Avoiding the Legal Pitfalls of the Hiring Process

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hr-hiringSmall business owners often don’t have the resources to hire a fully staffed and experienced Human Resources Department. That leaves the owner or his General Manager to navigate the tricky laws surrounding the hiring practice. When was the last time you brushed up on the federal laws surrounding the application and interview process? Do you know what is legal to ask and say, and what areas must be avoided altogether? Here is a glimpse into the answers to those questions related to the hiring process.

Be Careful What You Ask

Regarding both the application and interview, every question you ask is perceived by the law as being relevant to your hiring process. So, before you ask a question, make sure that it pertains to potential employment, but, most importantly, make sure the questions you ask are legal. Certain areas of questioning are prohibited by state and federal law. Obvious examples include those involving the applicant’s religion, age, and race or ethnicity, among others. Additionally, some states have laws that include additional protected classes, and some even prohibit the inclusion of questions related to criminal history. For specific information about your location, as well as to find out about exceptions to these laws, contact your closest state EEOC office.

Job Description, Application and Hiring

Aside from ensuring that the questions you ask on the application and during the interview are legal and relevant, there are a few more things that must be considered when preparing for the hiring process. For example, when drafting the application, make sure to include the statement that you are an equal opportunity employer, and do everything you can to follow through on that claim. Also, add to the application verbiage that explains the application is not a guarantee of employment.

Do the same during the interview by avoiding language that suggests the applicant has been awarded the position. In order to assist you in your endeavor to truly be an equal opportunity employer, consider having more than one person interview the candidates. Alternatively, multiple people can sit on the interview panel. You will get diverse feedback that should help you choose the most qualified candidate.

Related to the job description, it is illegal to include information in the posting that refers to a preference for or against any legally protected class. As with the application and hiring questions, there are exceptions, but the job description should be reviewed by a qualified professional, such as a lawyer, before posting it.

Background Checks

The same sentiment that applies to applications and interviews should also apply to background checks. The federal government expressly forbids inquiries about disabilities, but other classes, such as gender, religion or nationality are not covered. Additionally, each state may have supplemental laws in place. Regardless, inquiries that seek to uncover information about anything unrelated to the job or the person’s qualifications can be used against an employer in a discrimination suit. So it’s best to avoid them altogether.

The most important step in your hiring process happens before you even release the job posting or application. As mentioned earlier, you should take your revised application and the job description to an attorney who specializes in employment law. Do this prior to releasing them. Make sure that what you have is sound and legal before you present it to the public. One erroneous inclusion or exclusion, however innocuous it may seem, can result in penalties and fines from the EEOC.