Category Archives: Leadership

Startups

Smart Startups Learn How to Create and Manage Hype

Smart Startups Learn How to Create and Manage Hype

MARTIN ZWILLING
CONTRIBUTOR
Veteran startup mentor, executive, blogger, author, tech professional, and Angel investor.
7 Ways Founders Demonstrate They Can Run a Startup
Image credit: Shutterstock.com

Creating a successful startup is all about marketing these days, no matter how compelling your solution. Technologists have long believed that marketing is only required when selling the next pet rock, but in this age of information overload, even the most exciting solutions will be lost from view or assumed to have no value unless they are surrounded by hype.

According to Urban Dictionary, hype is “a clever marketing strategy where a product is advertised as the thing everyone must have, to the point where people begin to feel they need to consume it.”

Even technology solutions with a large intuitive value, such as a cure for cancer, need hype for visibility, education, side-effect considerations and to avoid a scam label. What most entrepreneurs fail to appreciate is that even the most basic marketing takes time, money and creativity, and even the best still may not succeed in winning over competitive approaches or the status quo.

Related: 4 Secrets to a Successful Product Launch

Marketing acceptance, especially for new technologies, actually goes through several predictable stages, called the hype cycle, as outlined by Gartner research. This cycle is actually an evolution to total acceptance of a specific solution or technology, based on the effectiveness of the marketing and hype and on the feedback of early users.

Progress through these phases is unpredictable in time, often takes many years, and can only be measured by customer surveys and market penetration analyses. Here are the five key phases:

1. Innovation trigger

Every new startup rolling out an innovative solution is the start of a new cycle. Early hype actually should precede the final product, and consists of proof-of-concept stories, media events and industry exposure. Every entrepreneur in stealth mode who insists on waiting for their product runs the risk of being a non-starter.

2. Peak of inflated expectations

This is the phase where the marketing hype has fully kicked in, often creating unrealistic expectations which the solution can’t yet deliver. Many startup solutions flame out at this point. According to Gartner’s Hype Cycle Special Report for 2014, wearable user interfaces such as Google Glass are now in this stage.

3. Trough of disillusionment

Solutions and startups that stumble under inflated expectations quickly lose their allure, and enter a long period of slow growth or even a big downturn. Technologies used in these solutions are then seen as red flags by investors. Examples include mobile health monitoring, NFC (near field communication) and virtual-reality systems.

Related: 6 Steps to a Successful Product Launch

4. Slope of enlightenment

Over time, with more marketing, and with further enhancements, customers begin to understand and accept the practical benefits of a given solution. This is the phase where strategic partnerships and new markets are key. Investors seek out startups at this point that are well positioned for rapid scaling.

5. Plateau of productivity

This phase more specifically applies to technologies that have evolved through multiple generations and are widely accepted. Multiple startups can now spawn solutions from the technology, and position themselves for rapid customer growth and early seed-stage support from investors.

I have intentionally broadened the hype-cycle definitions from their traditional hard-technology application to include soft technologies, such as social networks and entertainment. The rules for technology startups are no longer unique — marketing and hype are now as critical for business-to-business solutions as for business-to-consumer solutions.

There is evidence that the elapsed time of each phase is getting shorter, which just means that every entrepreneur needs to start earlier, and measure feedback more carefully, or risk failure by working on the wrong problem. As an angel investor, I often hear startups touting inflated expectations, or refusing to pivot in the face of disillusionment for their technologies.

The days are gone for those who believe that “If we build it, they will come!” Growing a business in this highly connected and information-intensive world requires a total focus on marketing and evolving customer perceptions. The best startups start early, and put as much focus on the hype as they do on the product. Where is your solution in the hype cycle?

Related: A Blueprint for a Killer Product Launch (Infographic)

Leadership

10 Ways Even Introverts Can Make Friends at Work

10 Ways Even Introverts Can Make Friends at Work

JOHN BOITNOTT
CONTRIBUTOR
Journalist, Digital Media Consultant and Investor

Entrepreneur and CultureIQ are searching for the top high-performing cultures to be featured on our annual list. Think your company has what it takes? Click here to get started.

For some, making friends isn’t easy. Being social isn’t easy. Some of us are more introverted than extroverted. Myself, I have driven both Uber and Lyft, and I’ve found that one suited me better because I tend to be more introverted.

This is all fine. Most introverts “get” that they live in an extroverted world and have to cater to extroverts a little at times to fit in and get along with others. This is the same whether you work at a giant corporation or a small, fast-paced tech startup. Making friends at the office can be intimidating because you’re all working to impress your superiors, as well as make the company more successful. Whether you’re in a close-knit office where everyone has been friends for years or you’re shyer than the average Joe, these steps can help you create good friendships with your work mates.

1. Say hello first.

This is an easy one, but much of the time people forget (or are afraid) to do it. Often, if you reach out to someone that’s all the effort it’ll really take to open a line of communication and begin a friendship. Just start by saying “hi” or “goodbye” and you’ll often find a coworker is happy to do the same to you the next time .

2. Create a group text.

Whether your coworkers are tech savvy or not, we are in an age where everyone sends emails and texts. I lament the loss of phone conversations, but such is life. You might as well try to take advantage of peoples’ dependence upon texting then. If you chat with people in messages during the day about work-related topics, it might be feasible to send out a group text when the workday is over.

3. Ask about them.

Ask how they are doing, how long have they worked there and other open-ended questions. People love talking about themselves and nine-times-out-of-ten they will return the favor and ask about you. You may then find that you like talking about your own experiences and slip out of your introversion for a minute.

Related: 7 Ways Introverts Can Become Master Minglers

4. Add them on social media.

One of the first steps to making friends is to know what the other person likes. Social media makes this easier than it has been in the past. Once you have befriended a co-worker on Facebook or Twitter, watch your timeline for his or her updates. Don’t be afraid to make a comment, or even re-share or re-tweet if appropriate. Talk to them in person about a picture you saw on their feed and you can immediately create a connection.

5. Be confident.

People can tell when you’re nervous. A lot of times, they don’t like it. When you’re uncomfortable, so are they. Make eye contact with a coworker when either of you is speaking. This is one way to let them realize that you are “present” and don’t find them boring or intimidating. This is all part of showing your coworkers that you care about them and like them. More often than not, they will like you more if you make this effort, and your confidence will grow.

6. Find things you have in common.

Once you know what to talk to someone about, conversation will flow more freely. It may take just one common interest to build the basis for a strong friendship. Before long, your common interests may also have you bonding over workplace issues. You may work better together and your work may flourish because of it.

Related: The Benefits of Having Friends in the Office (Infographic)

7. Go to work events.

It’s not uncommon for groups of employees to gather at the end of the week at a nearby coffee shop or restaurant. Some companies treat their employees to movie night. Make sure to attend at least some of these get-togethers. It may be just like going to work, except no one will be as serious and there should be very little actual work. There might also be some alcohol involved and that can help make getting to know coworkers easier.

8. Ask for help.

Everyone has weaknesses, even you. If you show these weaknesses instead of trying to hide them, people will usually respect you more for asking for their help. It’ll open the lines of communication and show a different side of yourself.

9. Don’t compare yourself to others.

Don’t compare your contributions to the company to what you perceive your coworkers are contributing. Remember, it’s a team and everyone is different and has their own skill set. Also, don’t worry if you’re “too” short or tall or have no hair. If someone doesn’t want to be your friend simply for those reasons they aren’t worth it in the first place.

10. Don’t fear rejection.

My father always told me, “People will meet you, and some will like you right away. Others will decide right away that they don’t like you. There’s very little you can do about that.” I’ve always found him to be right. For whatever reason, some people will never take a shining to you. That’s life. If someone doesn’t want to be your friend, it isn’t the end of the world. People get rejected every day all over the place but if you don’t get out there and try again you’re just hurting yourself.

For some of us, making friends at work is harder than doing the actual work we’ve been hired for. Even if you think you would do better work without the distraction of having to make friends, a job without them can be lonely and boring. Who will join you in discussing favorite TV shows or poking fun at the new, aggravating work assignment? Bonding over work experiences is often what makes the whole thing tolerable. So before you write it off, turn to the person next to you and say hello.

Startups

Crowdfunding or a Small-Business Loan: What’s Best for Your Company?

Crowdfunding or a Small-Business Loan: What's Best for Your Company?

Image credit: Tax Credits | Flickr

The crowdfunding site Kickstarter might be best known for funding films, games and products — like Pebble, the Palo Alto-based smartwatch whose maker raised more than $20.3 million in March, making it the most-backed product in the site’s history.

But occasionally, small Main Street businesses get their start through crowdfunding. One example is Portico Latin Bistro & Cantina in Langley, Wash., on rural Whidbey Island near Seattle, which raised $16,000 in seed money late last year.

Owner Graham Gori was skeptical about his chances for success, and he was right to be: Although Kickstarter has raised $1.8 billion for projects since 2009, most campaigns — about three of every five — fail to launch. Chances on Indiegogo, another crowdfunding site, are even slimmer; about 1 in 10 fundraising projects reach their goal. And small businesses have the toughest time: Only 3.1 percent of small-business projects out of 20,000 reached their goal on Indiegogo last year, according to reports.

Related: 4 Tips to Set You Up for Crowdfunding Success

Is crowdfunding right for you?

At NerdWallet, we examine complex financial situations that could affect small businesses. We then try to reduce them to a few key drivers to help bring clarity to the financial decisions people may make.

We found that successful crowdfunded projects or businesses depend on two main drivers:

  1. You must have a sexy, marketable project or product.
  2. It’s crucial to have a large number of backers — friends, family, local community, existing online followers — who are willing to drum up support for you. These people are your funders, but they are also your promoters.

It’s not enough to satisfy these drivers, however; you must also have a high risk tolerance. It’s an all-or-nothing mode for Kickstarterl: If you fail to reach the fundraising target you’ve set, you get nothing. In other words, you could spend weeks raising money on Kickstarter and lose it all if you don’t meet your minimum threshold.

Other crowdfunding sites are not all or nothing, but they can still leave business owners facing considerable uncertainty.

How a small-town business succeeded

Gori built a successful Kickstarter campaign by:

Testing the market. While Gori was “no expert on Kickstarter,” he did need to figure out if a campaign would even have legs, so he had to determine if there was a need in the market for his kind of restaurant.

Related: Cash Crunch: What’s the Best Loan for Your Small Business?

“I set up a stand at a holiday bazaar over Thanksgiving weekend at a local farmers market. We prepared blue corn pozole and vegan pipian rojo, put up a little stand and hung up our shingle,” he says. People lined up for his fare. “There was clearly an opening in the market for what people here would call ‘ethnic food.”

Mobilizing friends and family. With 17 days to run his campaign during the busy holiday season last year, the first step was getting help with a promotional video.

“I called a friend who was a photographer. He said, ‘I’m booked for the next two weeks, but I’m free tonight.’ We borrowed a friend’s house with an enormous kitchen, invited a bunch of friends to take part. We did it in two takes.”

Doing some old-school marketing. While Gori took advantage of a cutting-edge funding platform and all the social-media tools at his disposal, he also used one of the world’s oldest marketing techniques: He put on a sandwich board and walked in a parade and at a school festival, passing out fliers.

“A local magazine and newspaper did articles on our campaign. Folks at the library helped me create fliers with tags, like you see for garage sales,” Gori says.

In small communities, especially places like Whidbey Island, where one in five residents is above the age of 65, you can’t expect your market to be glued to social media for outreach.

The alternatives to crowdfunding

If you’re a startup business — say, a franchise — you may have easier access to credit on manageable terms than you realize. Your franchisor is one possible source, and small-business loans may be available from other lenders if the brand you’re franchising has a strong track record. Another place to try is online lender Funding Circle, which has agreeable terms for franchises.

If you’re opening a business with low overhead costs — like a consultancy or graphic design company — and all you need to start your business from home is a computer and an Internet connection, business credit cards may be all the capital you need.

If you have good credit, another alternative to crowdfunding might be a personal loan or, if you own a home, a home equity line of credit.

Small companies in business-to-business industries with invoices and low revenue — essentially a cash flow problem — may want to consider selling accounts receivable, a small-business financing technique known as“factoring.” BlueVine, Lighter Capital and Fundbox all have products that can help.

If you have no invoices, low business revenue or low business credit, online lenders like OnDeck and Kabbage may be good alternatives to crowdsourcing and traditional bank loans.

Related: Applying for a Short Term Business Loan Online? These 4 Steps Can Protect Your Startup.

Small businesses that have been around for longer than two years have more options. If you have a high credit score and are picky about what kind of debt you take on, you should investigate SBA loans from traditional lenders or new lenders. These government-backed small-business loans have significantly lower rates than many other lenders offer. Alternatively, you can check out online lenders such as Funding Circle, Lending Club and Fundation (if you have two or more employees).

Have a backup plan

Even Gori didn’t rely on his Kickstarter campaign alone to succeed. As a backstop, he applied and received a $15,000 loan from Whidbey Island Local Lending (WILL), a group that matches local investors with local small businesses in search of funding.

The Portico Latin Bistro & Cantina campaign defied the odds, but it was a nail biter. Gori — a former correspondent for The New York Times and Associated Press in Mexico and Central America, whose love of Latin food turned him into a chef — only succeeded in meeting his goal in the last hours of the campaign.

“There was a sense of relief, just my wife and I in an empty bedroom looking at the computer screen,” he recalls.

Crowdfunding can be a fun and successful way to fund your small business and generate buzz even before you open your doors. But it’s important to explore every available option as you look for the small-business funding. Although the crowdfunding route isn’t easy, you may find success and blow past your intended goal. But just remember to have a backup plan.

Related: Why Now Is the Best Time to Start Your Own Business

Measure
Measure
Marketing

Forecasting Business Success Through the Lens of the Product and the Brand

Forecasting Business Success Through the Lens of the Product and the Brand
Image credit: Pixabay

JIM JOSEPH
CONTRIBUTOR
Agency President, Author, Blogger, Professor

Good marketers conduct very thorough analyses when doing market research, product testing, branding perceptions and, of course, forecasting. Big businesses, especially those that are publically traded, spend significant time forecasting sales and measuring results against projections.

And while you may not have a board of directors or “The Street” asking you for a forecast, it’s important for small-business owners and entrepreneurs to also project ahead so that they can plan accordingly.

Related: 6 Ways to Make Financial Forecasts More Realistic

Now, I’m not going to share sophisticated forecasting models with you here – the true analytics vary by industry and category. But there is a mindset that I want you to adopt that will put you in the habit of continually forecasting for what lies ahead. And like all of our other topics in this series, we will take a look at that through the lens of both the product and the brand.

Forecasting the product (or service)

To manage your business effectively, you should understand the factors that will affect your product sales and plan accordingly. Anticipate their impact and map out a sales forecast that takes them into consideration.

If you are a real estate agent, for example, the kinds of factors that would affect your sales would be issues such as interest rates, changes in rental pricing, availability of new construction and the changing demographics of the area you serve. You should project out your anticipated home sales (and your resulting commission) as a result of these factors and how they may or may not be changing.

Forecasting the brand

Looking at your business forecast through the lens of just the product or service only paints half of the picture. How your customers and potential customers perceive your brand, relative to others in the same market, can have tremendous effect on your sales forecast.

Related: Sales Forecasting — by Reps, at Least — Is Dead

As a real estate agent, your reputation (or your “brand”) can have a tremendous effect on not only returning customers but also on new prospects as well. You business will thrive or dive based on your reputation so you should consider all of the things that could enhance or damage it. The reputations of other agents in your market can also affect your forecast, as you compete in the same arena for customer attention. Brand perceptions can be equally as impactful, if not more, on how well your sales progress.

All of this talk is only good if you do something about it by putting this analysis into action. Outline the factors that affect your forecast from both a product and a brand perspective and then develop an action plan for how you will make sure they affect your business positively, factor by factor.

Then, and only then, will you be forecasting for success.

Leadership

4 Lessons That Nonprofits Can Teach Entrepreneurs

4 Lessons That Nonprofits Can Teach Entrepreneurs

Image credit: Charlie/Flickr

Nonprofits are often perceived as being less businesslike and bottom-line driven than their for-profit counterparts. But in reality, there’s no better model for learning how to cultivate passionate and loyal “customers.” Nonprofits are masters of engagement, often finding creative ways to do more with less. They also know how to spur their constituents to action, grow their support base and maintain those supporters for life.

Related: Should You Structure Your Business as a Nonprofit? 

So, whether your startup sells tacos or technology, your business may have more in common with nonprofits than you realize, how can nonprofits make your business better? Start with these four lessons about marketing your product.

1. Nail the value proposition

Best-in-class nonprofits make sure their donors can easily wrap their heads around where their money is going and what they will get for it. They really understand how to make their message resonate with their audience. Think about how powerful and effective the “for the price of a cup of coffee, you can feed one child” value proposition is. It brings us to a place of great perspective, motivates us and, in the simplest and most related way, illustrates the amazing impact one person can make.

Entrepreneurs, on the other hand, have a tendency to get too focused on product specs and features, and their messaging ends up in the weeds. I’m not saying you should ditch the product-punch list; but, instead, add a value element to it. This actually serves two goals. First, it forces you to you to define and promote the three-to-five key value messages that really resonate with customers.

Then, you can audit your own marketing and sales efforts to make sure the messages are being used in every available channel, from the website to sales scripts. By putting solutions in context and highlighting customer-oriented outcomes, entrepreneurs can deliver an equally effective, succinct and clear value to the market.

Related: How Your Business Can Build Lasting Partnerships With Nonprofits 

2. Research your constituents, not just your market.

Budgets are always an issue for nonprofits. Their lack of deep pockets often forces them to be more creative, wily and buttoned up. It also means they can’t afford to miss the mark when it comes to understanding their audiences.

Market research is just as important for nonprofits as for any other business – it’s the best way to understand what motivates their constituents, what needs they should serve and how they’re doing. Even large nonprofits such as United Way regularly check in to see which causes are most important to donors and volunteers, so they can market accordingly. Some of the organization’s recent research, for example, revealed that education is a top philanthropic priority for women, and guided them toward partnerships with local schools.

Even if you’re a budget-starved business, you can borrow a lesson from lean nonprofits by pairing free or low-cost quantitative tools such as Survey Monkey or Google Consumer Surveys with high-quality analysis or qualitative follow-up.

You can also form a customer advisory panel and solicit members’ research. Just don’t forego research altogether because best guesses can quickly lead you down a costly wrong path.

3. Use emotion to tell your story.

Nonprofits are renowned for humanizing stories and using emotive messaging and language to reach their constituents. The people, cause or issue takes center stage, and the organization follows. These organizations also never let you forget that there are people involved.

They keep their beneficiaries and benefactors out in front, making personal, memorable connections and invite individuals to share their own stories and images as a part of their campaigns. For example, the American Heart Association and American Stroke Association ask users to share their reasons “to live a healthier, longer life” by tagging social posts with #LifeIsWhy.

Even if your product or service doesn’t feel inherently emotional, embrace emotion as a marketing asset. Think about why you got into business in the first place, or why your first customer signed on. Maybe you are passionate about solving a problem no one in your industry had addressed, or your company found an unprecedented way to serve customers.

Stop talking about features and benefits, and message around the relatable emotion behind the problem, cost or pain that your solution addresses.

Then, start making and celebrating those emotional connections. Infuse human elements into your reporting and sales strategy. Take your buyer personas and case studies to a new level by centering on the “why” behind their motivations, inspirations and actions. Nonprofits nail this strategy, but so do several well known corporate brands that operate in the most mundane of categories, including UPS and Salesforce.

4. Create a clear and compelling call to action.

While nonprofit branding initiatives do exist, when they put energy into promoting their cause, you can expect a clear and timely “ask.” Every entrepreneur should have clear-cut calls to action for each target audience and make sure the entire company is trained on them.

Startups operating in emerging spaces, in particular, can’t rely on prospects to know what to do next, how to engage or even what to buy. They also can’t rely on the power of their brand to sell for them. They need to put forth a call to action that convinces prospects to take some type of immediate action.

How to get there? Sit down with your internal team and map out the actions you want your key audiences to take and the optimal touch-points to drive responses. Depending on the complexity of your solution, there may be more than one desired response, or even a series of outcomes that ultimately generate results for your brand.

The Red Cross engages both the donor and the recipient, pairing prominently placed calls to action such as “Donate Funds” and “Donate Blood” with other activities, such as training and “Get Assistance.” Use split tests to determine which call to action for your product or service is most effective.

Nonprofits and startups share many traits, including a need to creatively and efficiently market to maintain lifetime customer loyalty. Is your company implementing any practices born in the nonprofit world that should be added to this list?

Related: How a Creative Agency Became a Catalyst for Social Change

Measure
Measure
Marketing

9 Overlooked Ways to Market Your Business

June 12, 2015

Entrepreneurs typically operate with lean budgets and aggressive goals. So they should never pass up an opportunity to educate, build awareness or provide an offer to a potential customer. Sales should always be “up front and center.”

Related: Further Engage Customers By Creatively Distributing Your Brand

Knowing this, my clients are always looking for creative ways to capture the attention of customers but not come across as aggressive. While they appreciate the old model of “push marketing” (selling, engaging in repetitive advertising and repeatedly calling customers), their focus today is more on “pull marketing.” This entails positioning and reputation building (branding) in order to put businesses in front of customers when they are ready to buy.

Here are nine overlooked ways to market your business:

1. Luggage tags and backpacks

A colleague of mine always appears at business events toting an attractive and functional backpack. Emblazoned on the front pouch is her company logo and tagline. And the strategy works: She tells me she is often stopped by people in airports or office buildings asking what her company does.

So I’ve started doing the same: attaching branded luggage tags to my purse and carry-on luggage. People ask me what the tagline means and where I work. Free advertising!

2. iPad, laptop “skin” 

As someone who regularly gives speeches, I often use my laptop and iPad to house my presentation. Early on I noticed that the back of my laptop, which faces the audience, advertises “Apple” instead of “LIDA360.” So I ordered a custom LIDA360  laptop “skin” that does the advertising for me — while I’m speaking!

I also put a skin on my iPad and cell phone, lest anyone miss a chance to know what I do. Because of this, people on airplanes and in airports have asked me about my business. What a great conversation starter!

3. Desktop screen

When setting up my speaking presentation, I’m often on my laptop in front of a crowded room. Instead of my desktop screen showing a photo of my kids on vacation or my adorable golden retrievers, I have posted there the cover of my latest book, with a caption. This is what the audience sees as I launch or close my presentation.

Related: 3 Secret PR Weapons To Help Build Your Brand

5. Social media

Sites like Facebook, Twitter and YouTube offer a lot of space to say who you are and what you do. Even if you use these social platforms for personal use only, why miss the opportunity to remind your friends and family what you offer? On your profile headers, add photos of you at work, your company logo or your recent book jacket, instead of a photo of your dog or a pretty sunset.

6. Social events

Getting out of your comfort zone sometimes means getting out of your current networking circles. Attending high-profile events where media and decision-makers are mingling can earn you free publicity and build your profile as someone who is involved in notable areas of influence.

7. Giveaways on social media

Social media offers the opportunity to share information and resources and also sell your services or product. Instead of traditional coupon or sales campaigns, consider giveaways. Yes, free stuff! Offer your product or service for free (for a limited time) to generate awareness. And create a separate landing page or phone number to track the direct response from this campaign. Then repeat as necessary, to keep the momentum going.

8. Online reviews

Every review a customer or visitor to your store leaves should be responded to, not just the negative ones. Responding to positive reviews with genuine appreciation shows you are paying attention to your customers. Responding to negative reviews shows that you care and feel bad for letting a customer down. Don’t use your response as an opportunity to sell; just respond to reinforce your company’s values. This is great marketing!

9. Video

The use of video is growing every minute. In a recent research study, Invodo found that almost 75 percent of current online traffic will come from video within the next two years. This means that traditional forms of marketing, such as direct mail and email marketing, will need to focus on video to grab the attention of users online.

YouTube hosts videos that have high-production quality and videos that look self-made. With good reason: Companies that are successfully using video to showcase their teams at work and play, highlight product demonstration or give virtual tours of their offices are seeing a high ROI.

High-quality videos certainly have a home on YouTube, but so do the organic “real world” videos that cost a lot less and pack a lot of punch.

In sum, the mantra for all sales used to say, “Always Be Selling.” But, today, savvy businesses focus on reputation management, positioning and marketing to get in front of potential buyers. Along with clever uses of their logos.

Related: 4 Steps to Attracting and Building Better Customers

 

Startups

11 Vital Books for First-Time Entrepreneurs

11 Vital Books for First-Time Entrepreneurs

ANDREW MEDAL
CONTRIBUTOR
Serial Entrepreneur, Digital Strategist, Web Designer, Author, Volunteer

From 2011 to 2013, I read 197 books. I read about history, physics, science, health, world travel, space exploration, the ocean, fitness and mathematics. I read bestsellers, classics and unknown authors. However, the underlying foundation of my reading was rooted in startups and entrepreneurship (not simply because I build startups, but because I have a sincere passion for it).

Here are 11 books I recommend for all first-time entrepreneurs (and really any entrepreneur for that matter), not in any order.

1. The Lean Startup by Eric Ries

This book is still a must read, even though the Lean Startup movement is not as radiant as it was from 2011 to 2013. Based in principles taught by Steve Blank inFour Steps to the Epiphany, Ries provides any entrepreneur (or intrapreneur) the framework and practical science behind testing ideas.

The whole premise of the book is to view startups as science experiments, by testing and analyzing everything you do, to help you save money and time to ensure your idea has some sort of demand. Read it if you haven’t.

Related: 3 Psychology Books to Change Your Mindset (and Your Business)

2. Rework by Jason Fried

Jason Fried is a diabolical genius. In my mind, he’s like this mad scientist that sits up in a tower overlooking the world, and watches as the world does everything wrong, while he sits back and plays a game of chess. He’s the godfather of going against the grain and disrupting the status quo.

This book will help you unravel the societal norms engrained into us at an early age, and uplift you to become better entrepreneurs by thinking outside the box.

3. The Tipping Point by Malcolm Gladwell

In The Tipping Point, Malcolm Gladwell attempts to uncover the “mysterious sociological behaviors” that shape everyday life. Gladwell explains a tipping point as “the moment of critical mass, the threshold, the boiling point,” and says “ideas and products and messages and behaviors spread like viruses do.”

He gives historical examples and substantiates his theories with facts, while breaking down his examples through invisible forces that only a world-renown sociologist can. He explains the reason that hush puppies became so popular in the mid 1990s and the reason behind steep decline in New York City’s crime rate after 1990.

To simply learn about how these invisible forces can create unintended results helped me to be more conscious about life and business. All of Gladwell’s books encourage me to think deeply, and empower me to see the world through a different lens, which results in new perspective. These new perspectives help me view my own entrepreneurial journey differently, which I greatly value.

4. The Innovator’s Dilemma by Clayton Christensen

Disruption. We’ve all heard the term. Christensen was the one who brought it to life.

Here’s the synopsis: “First published in 1997, Christensen’s book suggests that successful companies can put too much emphasis on customers’ current needs, and fail to adopt new technology or business models that will meet their customers’ unstated or future needs. He argues that such companies will eventually fall behind. Christensen calls the anticipation of future needs ‘disruptive innovation,’ and gives examples involving the personal computer industry, milkshakes, and steel minimills.”

Pairing this book with The Lean Startup helped me realize how important testing and validating assumptions is for not just startups, but for established companies as well. The innovator’s “dilemma” comes from the concept that companies will dismiss new market innovation based on the fact that customers do not currently use them, which then leaves the market ripe for disruption. Clayton gives historical examples that makes the concept easily digestible and helps drive home the lessons.

5. Crossing the Chasm by Geoffery A. Moore

Immediately after reading this book I thought I understood everything about building a company. This book teaches you why you may have had early “traction,” but how and why that traction does not guarantee mass market success. He does this by breaking down early adoption cycles, and shows the difference in your product lifecycle.

The chasm he refers to is between early adopters and the mass market. Simply looking at the cover will help you understand the concept. This book helped me understand the hockey stick curve growth model and other vital startup lessons. If you read the Lean Startup beforehand, Moore’s lessons will help you understand “product-market fit” as Ries discusses so frequently in his book.

6. Launch! by Scott Duffy

This book acts as a practical manual for breathing life into your idea. Duffy walks through examples and entertaining stories along the way, as well as provides a basic framework to follow through his years of business (which includes selling his last company to Richard Branson and the Virgin Group). Entertaining and useful, this book lives up to its allure, and displays the value and expertise of Duffy as a businessman, mentor and human.

Related: A Busy Entrepreneur’s 3-Step Guide to Reading Business Books

7. Hackers & Painters: Big Ideas From the Computer Age by Paul Graham

Paul Graham is the man behind Y Combinator, the Harvard of tech accelerators, and Graham has an uncanny ability to see into the future. This book gives a glimpse into Paul’s unique thinking and draws on historical examples. He takes us on a journey of what he calls “an intellectual Wild West,” where anyone with an idea can take a shot.

8. The 7 Habits of Highly Effective People by Steven Covey

This book is highly effective for helping anyone to prioritize and stay organized and on task. My big takeaway from this book was the Urgent/Important prioritization matrix. As entrepreneurs, being able to intelligently prioritize becomes a vital skill. You can learn this skill and many more through Covey’s classic.

9. The 4-Hour Work Week by Tim Ferriss

The 4-Hour Work Week has become an instant classic for any entrepreneur. Tim Ferriss treats his life as a big experiment. In this book, he teaches us how to live the life we want now, through real world case studies and practical examples. He explains that the “New Rich” figure out how to outsource, delegate and eliminate half of your work and other cool life/work hacks.

10. The 50th Law by Robert Greene and 50 Cent

Robert Greene is the man behind the 33 Strategies of War, The 48 Laws of Powerand other classics. Teaming up with 50 Cent, they have written the manuscript for business and life success, which can be summed up as one mantra: “Fear nothing.” The book walks us through real life examples of 50 Cent’s life, and how he overcame personal and business adversity. It provides a message of hope and encouragement.

Bonus: Moonwalking with Einstein: The Art & Science of Remembering Everything by Joshua Foer

This is not a business book. However, it’s one of my favorites that I’ve read in the past five years. Joshua Foer is a journalist who started covering memory competitions. He got so enthralled by his work, that he took on the challenge of becoming a memory athlete himself.

Filled with rich journalism, he provides us deep insight into the tricks and strategies used by these “mental athletes,” while he walks us through his personal journey of preparation for the United States Memory Championship. The book is riveting and entertaining beyond belief, and as Foer says, “in every way that matters, we are the sum of our memories.”

Tweet at me or comment below with your book recommendations. I’d love to hear them.

Related: 5 Powerful Books That Changed the Direction of My Life

Leadership

Driving Through Doubt

Natalie Bounassar Entrepreneur 
Guest Writer Media Professional

February 25, 2015

When I am immersed in the creative process, I wade through cycles of emotion evoked by the process.The first part of the cycle usually involves these elements: a new idea, rapid movement and excitement. A promising idea arrives swathed in excitement. The untapped potential at the outset of a project is exhilarating: There are unknown adventures, endless learning opportunities and perhaps the prospect of profit.

When I’m hatching a new idea, I work quickly. At the development stage, projects don’t usually require the depth of thought mandated for later decisions. Beginnings entail a lot of rough sketching and developing of big-picture ideas rather than fine-tuning small (but important) details.Coming up with the big-picture ideas is the best part of a new project because they’re, well, big.Such concepts are driven by creativity and unconstrained by red tape or the need to “draw inside the lines.” The initial stages of putting an idea into motion leave me energized and exhilaration. I’m confident that I’ve struck gold. Nothing will keep me from succeeding.

Then comes the middle stage — full of details, slow movement and doubts.This is the part of the cycle that wears on me. Hashing out details, waiting for responses and managing the complexities of bringing a big-picture idea to life can be a slow and draining process. I find my mindset often shifts during this second stage — and not for the better.I would also venture to guess I’m not alone.The honeymoon phase is over. This is the time when entrepreneurs are forced to navigate being married to their grand idea. This stage requires negotiating and compromise — learning where they are willing to bend and where they must stand their ground.This stage requires navigating the realities of finances: how much to spend versus what to reserve and the trade-offs in the budget. Attention must be paid to details that are not glamorous or exciting but totally necessary. And it requires patience.Somewhere, in today’s “push for pizza” society, people have lost patience. They expect progress yesterday. When results don’t arrive at the tap of a button, people begin to doubt their ideas, and worst of all, theirselves. They play the most unkind thoughts on repeat in their heads, simultaneously crushing their ideas and self-esteem. And then they must pick up the pieces.Entrepreneurs can, however, use feelings of doubt to their advantage so they can ultimately overcome them. To do so, consider the following:

1. Determine the source of the doubt.

Are you feeling as though you’re not making enough progress? Did someone offer advice that was less than encouraging?Are you unhappy with a work sample created or the initial production run results?When you narrow down the source of a doubt, you isolate the key concern and can set aside unrelated and insignificant insecurities that snowball from it.Doubt spawns more doubt: It’s a domino effect, so the only solution is to stop the collapse of the tiles before they fall. Find the source of a doubt, isolate it and address it. Focus on one concern at a time.Related:The ‘Aha!’ Moments of Famous Inventors (Infographic)

2. Welcome breakthroughs.

In excess, doubt can be debilitating.But a healthy amount of doubt can keep entrepreneurs from becoming complacent. It forces them to examine and analyze the status quo. It lets them decide if they are making the right expenditures and using the most qualified team, efficient processes and the best materials.Doubt, when taken apart constructively, can lead to unforeseen breakthroughs because it arises from the concern that perhaps there’s a better way.When you isolate and analyze your doubts, you might find simpler, better or more effective solutions to the questions your company is trying to answer.When you carefully analyze the situation causing concern, you might find that your approach offers the best possible solution and thoughts to the contrary are merely impatience or insecurities. Either way, doubt keeps you on your toes.

3. Prove insecurities wrong.

In a society obsessed with push notifications and 140-character Twitter limits, people are accustomed to processes that are short, quick and convenient. If I have to tap more than three buttons on an app to arrive at a desired destination, I become antsy.Entrepreneurs are forced to develop a counterculture mentality. I find this is especially true for young entrepreneurs who have to fight the urge to turn their back on something just because they are unable to immediately push toward progress.Just because success is not instantaneous does not mean it’s unattainable. Anyone who has faced an obstacle can attest to the satisfaction of overcoming it.Don’t settle for easy: Strive to accomplish what’s hard. Any challenge is an opportunity to learn, grow and prove to yourself the potential you hold.

Related: 7 Ways Entrepreneurs Can Master Self-Awareness 

Related: 4 Ways to Overcome Self-Doubt

Startups

10 Essential Startup Expenses, and 10 You Should Avoid

VIP CONTRIBUTOR
Entrepreneur and Marketer, Co-founder of Web Profits
February 23, 2015
It’s no secret that startups often fall into the trap of spending money on things that aren’t that important — it’s just one of the many mistakes that entrepreneurs can make.
However, the fact that some expenses are unnecessary doesn’t mean that you need to be a cheapskate whenever you encounter a potential cost. In fact, some expenses are absolutely necessary, and as an entrepreneur, it’s essential that you know the difference.
Here’s a list of 10 things that you absolutely must spend money on, followed by 10 things you definitely shouldn’t:

10 essential expenses

1. A business plan. There’s a lot of controversy regarding business plans, but in my opinion, knowing where you’re going and how you’re going to get there isn’t optional in business.
2. Market research. Never spend money on production before you know that you have customers ready to buy. Knowing what your market needs and how you can meet that need is essential for success.
3. A CFO or accountant. A good CFO or accountant can save you more money than you’ll spend on him or her by holding you accountable for spending and helping you plan your investments and understand your return on investment.
4. Buying lunch for those more important than you. An awesome life lesson from the richest man in Asia, this tip is all about networking. The cost of a single lunch is worth far more.
5. Legal advice. While unnecessary services cost you money you can’t afford, nearly all startup entrepreneurs require some level of legal advice. Whether it’s basic incorporation paperwork or understanding liability issues, pay for good advice from the start so that you aren’t stuck with the big bills of legal settlements later on.
6. Tax professionals. Doing your own taxes wastes countless hours that could be better spent on your business. Hire a tax professional, get the advice you need, and rest easy in April.
7. Customer service. It’s been said that sales without service is like putting money into a pocket with a hole in it. Customer service is an extremely profitable portion of your company, and it pays to invest in it.
8. Marketing and branding. Again, this business need can be done well and it can be done poorly. Don’t waste money unnecessarily, but do spend wisely on targeted, measurable campaigns.
9. Outsourced PR. This one is controversial as well, but keep in mind that I’m advocating tailored spending on measurable results. Your time as a founder is too valuable to spend on activities that others can handle for you in a profitable way.
10. Technical support. As a rule, the hours you’d spend doing your own website and server maintenance would be far better spent serving your customers. Hire technical support and put your time to better use elsewhere.

10 expenses to avoid

1. Expensive subscription-based services. Many times, project management software and other subscriptions have cheaper or free alternatives. Use them until you’re sure you need the features only a paid solution can provide.
2. Expensive clothes. Don’t let your ego put you out of business. It’s important to look professional, but you can do so fairly cheaply if you’re smart about how you shop.
3. A fancy office. Everyone wants a plush office, but the expenses involved in creating this business oasis can add up quickly. Focus on your business’s success first — the office can wait.
4. Expensive equipment. Like anybody, you may want to buy the latest and greatest technology, but that doesn’t mean it’s a useful business expense. Purchase only what you truly need, and do so as economically as possible.
5. Staffing before you’re ready. It’s fun to be an employer and to watch your startup grow, but if your business isn’t ready, you’re just wasting money. Outsource first, and only bring on employees if it makes financial sense to do so.
6. Extravagant business parties or trips. Again, these expenses may be fun, but they’re not wise. This kind of spending in a young company isn’t a sign of success — it’s a sign of wastefulness.
7. Non-measurable outreach efforts. Whether it’s PR, marketing or branding, if you can’t measure the results of your efforts, you shouldn’t spend the money. When money is tight, start by focusing your spending on things you know can build your business.
8. Buying followers, email marketing lists or other “customers.” Not only is this usually a scam, it’s not a great way to get customers. It may look good to say you have thousands of followers, but if they’re fake, you’re never going to see a return on that cost.
9. Expensive shipping or printing costs. While having a logo and some inexpensive business cards makes sense, there’s no reason for young companies to spend money on major printing or shipping expenses. Focus on meeting your customer needs first, and fancy stationery later.
10. Spending money before you’re sure you’ll make money. Unless you have some extremely generous investors in your back pocket, be especially cautious about spending significant amounts of money before you’re making enough to cover it. Just as individuals should live within their means, so should your business.
Every business is unique and will have different needs at different times, which is why having someone who will hold you accountable can be very helpful when it comes to making smart decisions. When you spend money on the things that are truly important, you position your business well for long-term success.
What do you think are the best and worst expenses for startups? Share your thoughts in the comments section below!
Marketing

Teach an Old Dog New Digital Marketing Tricks

Winston Binch
Guest Writer
Partner, Chief Digital Officer of Deutsch in North America
You’re a middle-aged chief marketing officer. And everything and everyone around you is rapidly advancing in matters digital.
But your chaotic schedule won’t allow you to learn all the things your youngest employees were seemingly born knowing how to do.
You owe it to yourself and to your career to develop skills that keep you at the top of your game.
Here’s what you can do to survive in this digital age:

1. Spend 20 minutes a day exploring.

There are no digital experts. The pace of technological change is too fast. Everyone is an explorer. The best practitioners just spend more time doing it than you. If you want to stay ahead, you need to understand the possibilities.
To do that, make digital exploration part of your lifestyle. When you hear about a new site, app, service, company, look it up. You don’t need to learn to code, but engage in the online and tech universe and actively educate yourself.

2. Get on Twitter and Instagram.

Sign up. Follow on Twitter and Instagram your colleagues, other chief marketing officers, brands, personalities and news and sports outlets that interest you.
Don’t act like a corporation. Be yourself. Try to create a few posts or updates a day. Experiment.
Share things that you’re proud of or whatever grabs your attention. Comment. Ask questions. Respond.
Once you’re comfortable, try out other social-media networks. You don’t need thousands of followers. You just want to learn best practices and formulate opinions.

3. Download apps. Buy gadgets.

Find your inner app geek. Replace as many life tasks as you can with digital services. Purchase gadgets and download apps even if you don’t know what they are exactly at first.
Some of my favorite apps to use include Uber for rides, Zite for news, Postmates for delivery, FitStar for workouts and Dark Sky for weather.
And don’t forget to avail yourself of the connected gadgets. Do some weekend drone flying, make GoPro movies and buy some wearable tech.
Document your learnings. You’ll spot trends and become smarter.

4. Follow BuzzFeed video and Vice on YouTube.

You’re not just competing with other companies. You’re competing to keep up with culture.
BuzzFeed and Vice and other video outlets are creating a lot of it these days. BuzzFeed has more than 74 million unique visitors and routinely scores more than 1 million views a video.
Spend as much time as you can on popular YouTube channels like BuzzFeed and Vice. Follow the feeds of popular video creators.
There’s an art and science to creating shareable digital video content. Familiarize yourself with it. Everything you make should be designed so it could be shared online.

5. Hang out with proven innovators.

Many professionals talk to themselves too much, forgetting that the best ideas result from divergent thinking. Over the last seven years, I have tried to exit my comfort zone by spending one-on-one time with proven innovators outside the advertising and marketing field.
I’ve met with venture capitalists, engineers, founders and notable technology thinkers. I take an annual ski trip organized by Path founder Dave Morin called The Lodge with a group of tech innovators to expose myself to new and unexpected thinking.
Most of these different types of people whom you will reach out to will want to have a relationship with you. Invite them over, have them speak to your company and take dine with them at events like SXSW, CES, TED or Cannes.
Also participate in labs run by Google, Facebook, Tumblr and Twitter and meet with the engineers not just the salespeople. You’ll learn a lot more from the makers than the sellers.

6. Hire Internet kids.

Training will help, but it won’t be enough. The digital landscape is too complex and fast moving. And this is an age of specialization. If you want to do breakthrough marketing, surround yourself with young digital specialists who are obsessed with Internet culture and technology, the type of people who explore the digital world for fun, not just work.
Put them in key and empowered roles and task them with evaluating ideas, identifying the right partners, developing digital, mobile and social media strategies and keeping your company digitally literate.
Find the Gen Y people who know how to win on the Internet.
The next generation of brands that history will remember will be digital at their core. Stay close to the talent inventing it. Hire young, digital folks and people smarter than you.

7. Remember what you bring to the table.

Digital natives instinctively understand what works on the Internet. But remember you’re a marketing chief for a reason — not because you can fly drones, build robots and write code.
You understand business, culture and brands and have the skills and experience to lead people and large organizations. You have vision — something everyone needs but few possess. The secret to your longevity is maintaining curiosity, keeping an open mind and giving smart young people plenty of runway. Don’t tell them what to do. Show them where to go. That way everybody wins.