The Oxford English Dictionary recently named "selfie" as the word
of the year. No matter your take on whether or not this is a real word
or whether or not it describes something other than a desperate attempt
at getting attention, this word has become part of the lexicon of young
people and those in the world of social media. That is why some are
revolting by promoting the use of the hashtag, #unselfie.
If you
are wondering what #unselfie is, just do a search on any of the social
media platforms, especially Twitter. If you are searching on Facebook,
there is a page dedicated to Unselfie. There is also at least one post
on LinkedIn extolling the virtues of the unselfie.
Been wondering
how to use Twitter? Try this one on for size. As part of #givingtuesday
tomorrow (yes we are using hashtags like crazy this week), over 8,000
organizations in all 50 US states have signed up as partners, from
charities to businesses to small towns to cities. A group of charities
in Baltimore have come together to pledge jointly to raise $5,000,000
tomorrow. New partnerships are emerging between the super rich and the
rest of us as billionaires such as Steve and Jean Case (founder of AOL)
and others offer to match #givingtuesday gifts with similar amounts of
their own cash. And it is going global: significant #givingtuesday
campaigns are under way in countries such as Australia, Canada, Israel,
Mexico, Argentina and Singapore. Look for the #unselfie posts as part
of the larger #givingtuesday campaigns.
Watch #givingtuesday on
Twitter tomorrow and get motivated by other people's unselfies and by
googling #givingtuesday and #unselfie. Our advice is to watch, learn
and be part of the solution.
Monday, December 2, 2013
Wednesday, November 27, 2013
What is Leadership? Really.
Amongst all the seminars, conferences, websites, books and the
examples of leadership that we see daily, have you ever asked yourself
what does it mean to be a leader and if you have kids, how do you
encourage them to be leaders when offered the chance?
Merriam-Webster's Dictionary defines leadership as "the action of leading a group of people, organization, etc." or "the power or ability to lead other people". If you break it down to the verb, another applicable definition of lead is "to direct on a course or in a direction."
By
definition, true leadership requires followers. So how do you get
others to follow you? There are plenty of examples, both good and bad,
throughout history, sports, politics, business and communities. Some
that come to mind are Gandhi, Hitler, Teddy Roosevelt, JFK, Mother
Teresa and Vince Lombardi. One thing that is common among leaders is a
passion for their vision. How they demonstrate their passion will vary
along a spectrum, yet people will connect with that vision and the
charisma of the leader. For followers, they search for resonance with
those visions, looking for direction and answers to what will help them
in living a life well lived.
Leadership is also something that is in the eye of the beholder. While many can condemn the actions of certain leaders, one cannot deny the ability of a Hitler to amass millions of followers even to this day. Even at the local level, we can see who has influence, who can motivate and who drives an idea to fruition. And who is a flash in the pan, someone with perceived leadership qualities but cannot resonate with their prospective followers.
Passion for their vision requires having a vision and communicating this vision is the challenge of a leader. You may jump up and down, shout down your opposition but if you do not have a clear, defined, popular vision, you will get nowhere. You may be good at one-on-one leadership or you may be the great orator that all Toastmasters aspire to be. Getting your message across is vital to being a leader.
Many entrepreneurs talk about their vision. Great leaders have a vision for the future of their countries, communities, businesses, teams or humanity. And faith in that vision must remain unshakeable. A prominent Star Wars character once said, "I find your lack of faith disturbing." And yes, you may be able to use "the force" to "motivate", but it may not be the best tool in your toolbox.
In
the movie, "It's a Wonderful Life" (timely with the holidays upon us),
George Bailey is given the opportunity to see what Bedford Falls would
look like if he had never been born. He sees what can happen to a
community where his leadership is missing, compassion for the common man
is devoid and where greed and personal gain have consumed a community.
So
where does this all lead us? When you have the opportunity to be a
leader, ask yourself which path you want to take. When you are teaching
young people how to lead, ask them what kind of person they wish to
become. When you are in a leadership position, ask yourself which path
will the community take based on your leadership. See a future that is
better than the one that currently exists. Isn't that what previous
generations have taught us or have we forgotten all that they sacrificed
to give us a better opportunity in life?
Merriam-Webster's Dictionary defines leadership as "the action of leading a group of people, organization, etc." or "the power or ability to lead other people". If you break it down to the verb, another applicable definition of lead is "to direct on a course or in a direction."
Leadership is also something that is in the eye of the beholder. While many can condemn the actions of certain leaders, one cannot deny the ability of a Hitler to amass millions of followers even to this day. Even at the local level, we can see who has influence, who can motivate and who drives an idea to fruition. And who is a flash in the pan, someone with perceived leadership qualities but cannot resonate with their prospective followers.
Passion for their vision requires having a vision and communicating this vision is the challenge of a leader. You may jump up and down, shout down your opposition but if you do not have a clear, defined, popular vision, you will get nowhere. You may be good at one-on-one leadership or you may be the great orator that all Toastmasters aspire to be. Getting your message across is vital to being a leader.
Many entrepreneurs talk about their vision. Great leaders have a vision for the future of their countries, communities, businesses, teams or humanity. And faith in that vision must remain unshakeable. A prominent Star Wars character once said, "I find your lack of faith disturbing." And yes, you may be able to use "the force" to "motivate", but it may not be the best tool in your toolbox.
| Star Wars Episode IV: "I find your lack of faith disturbing" |
| It's A Wonderful Life (1946) - James Stewart - George Bailey's Speech to Potter & the Loan Board |
Tuesday, November 5, 2013
Is it hazing or an initiation rite?
With all the news focus on the Miami Dolphins and whether or not someone who is the size of a barn can get bullied, it seems that there is a much bigger picture issue than what the 24-hour news cycle is willing to consider. What is hazing? What does it mean to become an adult in today's society? What does it mean to be able to stand up for yourself? At what point did traditional initiation rites transform into a method of exerting perceived power over someone else?
When you hear the term hazing, most times you think of college fraternities and sororities entrance requirements - eating strange things, sleep deprivation, alcohol binging, kidnapping in the middle of the night and dropping them somewhere without access to money, phones, etc. Or maybe you have a memory of the movie "Animal House" with pledges in their civies saying, "Thank you sir, may I have another?".
While these rituals of membership seem bizarre and ridiculous to outsiders, the goal is to put value on being part of the club. "Membership has its privileges" is a term we have come to accept. And in order to be privileged, you have to pass some sort of test to see if you are worthy of membership. When did "membership" or transition to adulthood become a rite of abuse and torture, demeaning someone's sense of place in the community and their sense of self-worth? Who gets to be judge, jury and executioner?
In the past, and I mean way in the past, initiation rites were all about survival tests. In order to be an adult, you needed to take a stand, perform a test or partake in a ritual that was what the community defined as necessary to transition from adolescence to adulthood. In the absence of withstanding physical and physcological tests and the abdication of adults taking responsibility to properly prepare their children for adulthood, the void is filled by groups or individuals no better than street gangs at every strata in our society. When the self-appointed ones in charge get afraid that they could lose their status and power, the bar gets raised. How many times are the tasks required for membership beyond what the current members had to endure? Where is true mentorship among peers?
Are we so powerless that we have to resort to putting someone else down versus raising them up so that they too can be successful? Have we become so much of a 'me' society that we will step on whoever is in our way just to feel better about ourselves?
So here is the challenge. It's pretty simple. Be the adult. Be selfless. Think community first. Be curious. Be a mentor in your daily life. Be a leader. Can it be hard? Hell yes. Since when are we supposed to be afraid of hard work.
When you hear the term hazing, most times you think of college fraternities and sororities entrance requirements - eating strange things, sleep deprivation, alcohol binging, kidnapping in the middle of the night and dropping them somewhere without access to money, phones, etc. Or maybe you have a memory of the movie "Animal House" with pledges in their civies saying, "Thank you sir, may I have another?".
While these rituals of membership seem bizarre and ridiculous to outsiders, the goal is to put value on being part of the club. "Membership has its privileges" is a term we have come to accept. And in order to be privileged, you have to pass some sort of test to see if you are worthy of membership. When did "membership" or transition to adulthood become a rite of abuse and torture, demeaning someone's sense of place in the community and their sense of self-worth? Who gets to be judge, jury and executioner?
In the past, and I mean way in the past, initiation rites were all about survival tests. In order to be an adult, you needed to take a stand, perform a test or partake in a ritual that was what the community defined as necessary to transition from adolescence to adulthood. In the absence of withstanding physical and physcological tests and the abdication of adults taking responsibility to properly prepare their children for adulthood, the void is filled by groups or individuals no better than street gangs at every strata in our society. When the self-appointed ones in charge get afraid that they could lose their status and power, the bar gets raised. How many times are the tasks required for membership beyond what the current members had to endure? Where is true mentorship among peers?
Are we so powerless that we have to resort to putting someone else down versus raising them up so that they too can be successful? Have we become so much of a 'me' society that we will step on whoever is in our way just to feel better about ourselves?
So here is the challenge. It's pretty simple. Be the adult. Be selfless. Think community first. Be curious. Be a mentor in your daily life. Be a leader. Can it be hard? Hell yes. Since when are we supposed to be afraid of hard work.
Friday, November 1, 2013
Operation Boots to Business and our Veterans
When I was at the Association of Small Business Development
Centers (ASBDC) annual conference last month, I attended a session
about Operation Boots to Business in order to learn more about existing
programs that help veterans open their own businesses. It is our desire at the Business Resource Innovation Center (BRIC)
to provide any assistance possible to help veterans be successful with
their goals of business ownership and moving on to the next chapter in
their lives.
When our servicemen and women are getting ready to be discharged from the military, they are given information on the options for their transition to civilian life. This program's choices are college, job search and entrepreneurship. If they are interested in starting their own business, there are selected military bases that are offering the Operation Boots to Business program.
This program builds on the SBA's role as a national leader in entrepreneurship training. Leveraging the ongoing collaboration with Syracuse University's Institute for Veterans and Military Families (IVMF), the SBA delivers Boots to Business with the support of its field offices and Resource Partners, such as the Small Business Development Centers (SBDCs), Women's Business Centers (WBCs), SCORE, and Veterans Business Outreach Centers (VBOCs). SBA's expert Resource Partner network already provides entrepreneurship training to more than 100,000 veterans every year, many of whom are service members transitioning out of the military.
If you want more information about this program, we suggest checking the Boots to Business website and the SBA website. While this program is not formally offered by the BRIC, we will do everything we can to support veterans in their transition to prospective business ownership. As a resource partner with through our relationship with the NevadaSBDC, the BRIC has access to a variety of resources including all the organizations listed above.
If you have any questions about business assistance for veterans, please do not hesitate to send me an email.
When our servicemen and women are getting ready to be discharged from the military, they are given information on the options for their transition to civilian life. This program's choices are college, job search and entrepreneurship. If they are interested in starting their own business, there are selected military bases that are offering the Operation Boots to Business program.
This program builds on the SBA's role as a national leader in entrepreneurship training. Leveraging the ongoing collaboration with Syracuse University's Institute for Veterans and Military Families (IVMF), the SBA delivers Boots to Business with the support of its field offices and Resource Partners, such as the Small Business Development Centers (SBDCs), Women's Business Centers (WBCs), SCORE, and Veterans Business Outreach Centers (VBOCs). SBA's expert Resource Partner network already provides entrepreneurship training to more than 100,000 veterans every year, many of whom are service members transitioning out of the military.
If you want more information about this program, we suggest checking the Boots to Business website and the SBA website. While this program is not formally offered by the BRIC, we will do everything we can to support veterans in their transition to prospective business ownership. As a resource partner with through our relationship with the NevadaSBDC, the BRIC has access to a variety of resources including all the organizations listed above.
If you have any questions about business assistance for veterans, please do not hesitate to send me an email.
Tuesday, October 8, 2013
Financing Options: Crowdfunding to Loans
This is such a big subject and getting bigger each day so we'll
try to give you the highlights. If you are looking for further detail,
please let us know.
While traditional banking and equity investment through private equity investors are still very much alive and kicking, there are many other "creative" methods of raising funds for your business.
Crowdfunding has been getting a ton of attention lately with Kickstarter and Indiegogo showing off many funding successes. One thing to remember is that this space is a real moving target. With rules and regulations changes coming from the SEC, we may be seeing different players, or at least different looking players, in the near future. Two types of crowdfunding appear to be emerging: peer-to-peer and donation/purchase-based.
Peer-to-peer crowdfunding sites currently include ones like LendingClub.com and Prosper.com. These organizations operate as matching sites, bringing together individual member lenders and borrowers. Many provide quick response to requests for funding and interest rates can be significantly higher than other sources of funding. If you are having troubles with other avenues of borrowing, read all the fine print before making a decision, on either side of the transaction (this goes for all of the options discussed here).
With donation/purchase-based websites like Kickstarter and Indiegogo, you get to operate as a fundraiser or as a place to take pre-orders for your product or service. Many artists and non-profits like this space as well as businesses. There are a couple of keys to raising funds on one of these types of sites: have an awesome network, create a compelling story and offer desirable "perks". You pretty much will need all three components to have a successful campaign. And a great video really helps too!
Other funding sources include credit card advances and factoring can help with cash flow issues. While these avenues may help with daily or weekly cash flow, the cost of capital can be quite high when compared with other options. With credit card advances, they may hold back as much as 20% until the customer pays and it doesn't improve your business credit (which is important in getting future business loans). If you have inventory or accounts receivable, then factoring may be an option, but again this option can have a high cost of capital.
Another funding option is a short-term business loan. Usually these non-bank operations offer loans based on personal credit, annual revenue and time in business. Many loans can be made up to $250,000 and have terms from 3-18 months. If you qualify, you can get decisions typically within one day. And like the other solutions above, the cost of capital is high and there are no guarantees and you have to read the fine print. A good business situation for this type of product would be where a supplier is offering a significant discount on a large shipment of regular inventory items that you know you can turn very quickly yet you don't have the cash flow to cover a large purchase. The discount would help offset the high cost of capital.
While there are no easy solutions to finding funding these days, there are still many options. It's all a matter of which one best fits your needs. Need help deciding which one to use? Give us a call at 775-283-7122 to set up an appointment and we'll help you with evaluating what works with your plan and your business.
While traditional banking and equity investment through private equity investors are still very much alive and kicking, there are many other "creative" methods of raising funds for your business.
Crowdfunding has been getting a ton of attention lately with Kickstarter and Indiegogo showing off many funding successes. One thing to remember is that this space is a real moving target. With rules and regulations changes coming from the SEC, we may be seeing different players, or at least different looking players, in the near future. Two types of crowdfunding appear to be emerging: peer-to-peer and donation/purchase-based.
Peer-to-peer crowdfunding sites currently include ones like LendingClub.com and Prosper.com. These organizations operate as matching sites, bringing together individual member lenders and borrowers. Many provide quick response to requests for funding and interest rates can be significantly higher than other sources of funding. If you are having troubles with other avenues of borrowing, read all the fine print before making a decision, on either side of the transaction (this goes for all of the options discussed here).
With donation/purchase-based websites like Kickstarter and Indiegogo, you get to operate as a fundraiser or as a place to take pre-orders for your product or service. Many artists and non-profits like this space as well as businesses. There are a couple of keys to raising funds on one of these types of sites: have an awesome network, create a compelling story and offer desirable "perks". You pretty much will need all three components to have a successful campaign. And a great video really helps too!
Other funding sources include credit card advances and factoring can help with cash flow issues. While these avenues may help with daily or weekly cash flow, the cost of capital can be quite high when compared with other options. With credit card advances, they may hold back as much as 20% until the customer pays and it doesn't improve your business credit (which is important in getting future business loans). If you have inventory or accounts receivable, then factoring may be an option, but again this option can have a high cost of capital.
Another funding option is a short-term business loan. Usually these non-bank operations offer loans based on personal credit, annual revenue and time in business. Many loans can be made up to $250,000 and have terms from 3-18 months. If you qualify, you can get decisions typically within one day. And like the other solutions above, the cost of capital is high and there are no guarantees and you have to read the fine print. A good business situation for this type of product would be where a supplier is offering a significant discount on a large shipment of regular inventory items that you know you can turn very quickly yet you don't have the cash flow to cover a large purchase. The discount would help offset the high cost of capital.
While there are no easy solutions to finding funding these days, there are still many options. It's all a matter of which one best fits your needs. Need help deciding which one to use? Give us a call at 775-283-7122 to set up an appointment and we'll help you with evaluating what works with your plan and your business.
Tuesday, October 1, 2013
What's your Competitive Advantage?
Harvard
professor Michael Porter originally proposed the theory of competitive
advantage in 1985. Porter emphasized productivity instead of cheap labor
and natural resources. The chart below identifies basics of Porter's theory -
and points to the area where most small businesses strategy exists - Focus
Strategy or differentiation.
So how do you get started and how important is having a
competitive advantage or CA? If you start with Jack Welch, the former CEO of
General Electric, he said, "If you don't have a competitive advantage,
don't compete." Warren Buffet looks for CA to be sustainable.
Brand and a great sales effort combined with a CA can ensure the success of a
company. And it all starts with asking the question of your customers,
"What made you choose me?".
Many businesses think they know their CA or haven't defined it or don't use it. So let's start with what it is not. CA is not:
Many businesses think they know their CA or haven't defined it or don't use it. So let's start with what it is not. CA is not:
- keeping up with the competition
- offering free shipping when everyone else is offering free shipping
- having the lowest price
- someone else will have deeper pockets
- the same as everyone else
- "we have on-time delivery" - who doesn't?
- subjective
- "we have great customer service" - doesn't everyone?
- arbitrary
- "we're better at..." - 80% of drivers think they are above average
- cliche
- "we mean business" - doesn't everyone?
So what can CA be?
- Internal or external
- the distribution system of Walmart is a huge advantage in many ways
- Highly visible
- a distinctive design like the POM pomegranate juice bottle
- Owning a niche market
- many small businesses can claim to be a big fish in small pond
So how do you determine what your CA is right now? Ask
yourself these questions:
- What do you think your CA is right now?
- Can you prove it? Do you have the data?
- Have you evaluated your CA against the competition?
- Is price part of your CA?
- Is it sustainable at least for a certain time period?
- Are there big costs for the customer to switch?
- Do you have low overhead costs?
- Do you have strategic intellectual property?
- Have you established a broad network? Think Facebook or Verizon.
Your marketing plan is the key place where your CA
resides. Your brand strategy will support your CA. Training you
employees to be brand ambassadors will be key as well as your slogan or tag
lines, logo, website and packaging. And always review your competitive
advantage. Keep measuring against the competition. Ask if your CA is
still important to your customers. Constantly prove that your CA is relevant.
Reassess then update your CA and start the process over.
Thinking of borrowing funds for your business? Remember the 5 C's!
Yes, banks have been around a long time and have survived everything from train robberies to the Great Depression to the Great Recession. And you have a business that needs additional cash to help with its growth. So how can you win a loan into today's uncertain economy? It goes back to basics.
The first C is Character. This refers the skill set of the management team, who are the managers, has anyone filed for bankruptcy or had any other business issues in the past. Today, ideally banks would like to know that you have had some business management experience as well as industry experience. How much do you ask? It all depends. On the bank. On the underwriting department. On your personal relationship with your banker. You need to have experience and success with all the challenges in today's economy.
The second C is Capacity. This refers to your ability to pay back the loan. Do you have the cash flow to pay for all the other aspects of your business AND pay the principal and interest on your loan? What do they look at? It all depends. On the bank. Mostly they look at prior year's tax returns for you personally and the business, as well as projected financial statements. Be careful with your assumptions.
The third C is Capital. How much "skin" do you have in the game? How much have you invested of your own money in the business? How much can you potentially lose if the business fails? The bank wants to know that you are a very interested party in the success of the business. How much of your money invested kinda has a way of doing that. How much? It all depends. On the bank.
The fourth C is Collateral. What asset do you have to pledge to the bank in case you default on the loan? What is the condition and value of the asset? How much collateral do you need? It all depends. On the bank. Some banks may require that you fully collateralize the loan. Ask what their requirements are.
The last C is Conditions. These are economic conditions in your industry and the economy in general that can affect your business. You probably have little or no control over this C. Do your best to know what the leading indicators of success are for your industry and your businesses operating region. Are you local, regional, national or international? You better know what types of risk affect your business. What risks are measured? It all depends. On the bank.
We hope that you've gotten the gist of this post. It all depends. On the bank. Big bank, regional bank, community bank - they all look at things different and you need a bank that is a financial partner, so please consider all the options before you start going through the brain damage of filling out loan applications and gathering required paperwork. And know that we at the BRIC are always available to help.
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