When God Gives You Lemons, Make Lemonade and Teach Business Principles
For as long as I’ve been following current events, problems in our system of education have been making headlines. Math, science, test scores and literacy are favorite topics. However, teaching entrepreneurship is a subject I seldom—if ever—see discussed, so I doff my figurative hat to the National Federation of Independent Business (NFIB) for its Lemonade Day. Join in and pledge to buy a glass of lemonade from a young entrepreneur in your neighborhood. It’s a cute and memorable way to put the subject in front of the public, but let’s not drop it after this one event. I think teaching the principles of business and inspiring the attitude of entrepreneurism should be a national priority. Right now STEM education and careers (science, technology, engineering and math) are the hot topic, yet statistics indicate that they aren’t quite the problem some are hyping them up to be. The US graduates about twice as many STEM-trained students as there are new jobs each year and Rutgers Professor Hal Salzman recently pointed out that IT wages today are about the same as when Bill Clinton was president. If there was a huge shortage, market pressures should have pushed them up. Creating world-class STEM professionals is, of course, critical to our future, but cultivating the entrepreneurs who are able to turn great tech ideas into business realities, is even more important. Which Steve did more to change the world, Jobs or Wozniak? Here are six principles we should teach our children if we want to bring out their entrepreneurial best: Goal setting. Get kids to see the connection between today and a point in the future and how the path between those two points can change what the future is like. As they grow older, show them how one goal is a step to another, bigger goal. Selling. Sell is not a four-letter word; it’s the activity that drives the economy, which creates opportunities and allows people to realize their potential and achieve their dreams (goals). Get kids excited to sell. As adults, we can do a lot to make selling a positive experience for children. Financial facts. Money and wealth obey some very strict laws and none of us are exempt. We need to teach these to our kids at an early age and help them create the financial habits required for success throughout life. We are truly doing our kids a disservice if we don’t teach them the facts of financial life. Relationships. Economic relationships and personal relationships have never been closer or more important than they are today. There is a huge “anti-bullying” campaign right now, which is good. However, we should be teaching a proactive approach to positive relationships. Show children how we are all connected and when your neighbor does well, it can help you do well also. Teams and Leadership. For most of us, there are times when we are called to follow and times when we are called to lead. Children need to be prepared for both roles and find which suits them best. Students who want to lead, need to understand the responsibility that it requires. Social responsibility. Giving back to the community, treating employees well and being a good neighbor are all crucial for continued business success. Children need to be taught these virtues...
read moreAre You Buried Under an Avalanche of Apps?
Do the words, “It seemed like a good idea at the time,” ring a bell? If you’re like many small business owners, you and your employees have downloaded beaucoup apps onto your smartphone and other devices, because they seemed useful…at one point in time. There’s another variation on “app creep,” and that’s when one app that you love spins off another app—like Foursquare seems poised to do. In any case, according to a report by Intermedia – Death by 1000 Cloud Apps – small businesses are being bogged down by an over-abundance of apps. The report concludes that this glut of apps makes small businesses contend with: Too many choices, Too much to manage, Too many logins, and Too much risk. Choices We all know how kids freeze when they are presented with a display case full of yummy treats and have to narrow down their choice to one. It’s the same with apps. Small businesses spin their wheels doing all the due diligence required to select an app that is right for their team—well, at least if they really take the time to figure out if it will perform as advertised and if that performance is something that will actually benefit the business. Management According to the math presented in the report, if you have 15 people using an average of 5.5 apps each, that’s 82.5 accounts that will need to be managed day in and day out. Of course, as more apps get added and the business evolves, there are all kinds of data migration and integration issues that must be managed. And don’t forget that as a small business owner, you’re responsible for training existing and new employees on these apps. I’m worn out just reporting these issues… Logins Here’s some more math from the report: It takes an average of 20 seconds to login to an app; that means that a 75-person small business can rack up more than 570 wasted hours and $13,900 per year in lost productivity. You know the old saying, “The devil is in the details.” Small details add up over time and unfortunately because they are small they often go unnoticed. Advice: start noticing. Risk Most of the cloud-based apps you deploy will handle personal data or company information that you need to protect. Multiplying your apps multiplies your risk. Further, employees will have many apps deployed on a variety of devices, which can be lost, stolen or inadvertently left somewhere in a “logged in” state. At the end of “Indiana Jones and the Last Crusade,” when Harrison Ford carefully evaluates each vessel and finally grabs one, the attending knight pronounces, “You have selected wisely.” Small businesses need to take the same care and caution when committing to a cloud app, otherwise they’re just making more work for themselves and decreasing...
read moreCrowdfunding: Flash in the pan, or here to stay?
For both people and businesses, getting older brings its share of challenges. However, the alternative is even less desirable. Right now we’re seeing the business of “crowdfunding” mature somewhat and the process is a little painful for many involved in the industry. Crowdfunding, as you may know, is the process of leveraging the Internet to raise capital to fund a project. Kickstarter may be the most well known of the crowdfunding sites. Other notables are Indiegogo and AngelList. If you need more names, check out this article on Forbes. Two crowdfunding models For commercial fundraising, there are really two ways crowdfunding sites work. Fundraisers on Kickstarter usually offer the product they plan to produce in exchange for some cash. In other cases, premiums such as t-shirts are offered and some times nothing tangible is delivered; supporters make donations. In the other crowdfunding model, kicking in cash buys you equity in the company. The crowdfunding investors are all mini-angels. All the Internet-based pieces of the crowdfunding puzzle came together around 2010 and it really took off. Now, in 2014, the process is starting to have some history and go through a few growing pains. Rules and regulation Some of the growing pains are being caused by the anticipated Security and Exchange Commission (SEC) rules governing equity crowdfunding. Late last month Robb Mandelbaum gave an update on the proposed rules in his NY Times blog. He noted that the SEC posted the rules for comments more than three months earlier and still hadn’t shown any signs of issuing final regulations. That leaves the world of equity crowdfunding up in the air and its future somewhat in doubt. There is nothing investors like less than uncertainty. A different issue faces the “product promising” crowdfunding industry. Ethan Molllick, a Wharton School professor, says that among the tech and design-related crowdfunded projects, 75 percent failed to finish on time. It seems like no one will say publicly how many funded projects ultimately fail to deliver their proposed products. Guessing at failure rates Kickstarter is an “all or nothing” crowdfunding site. Proposals don’t get funded until their targets are met. Kickstarter is great about reporting stats on the percent of projects that get their desired funding. But failures among funded projects is left to speculation. All of these developments are indicative of an industry that’s beginning to mature. Initial unbridled enthusiasm is replaced by measured judgment. For long term success this is necessary. And if you’re considering crowdfunding a project, there is really one major takeaway here for you: thoroughly researching all your options today is more important—and probably a little more difficult—than it was yesterday. • • • Image: Flickr “Crowd,” © 2007 James Cridland, used under a Creative Commons Attribution-ShareAlike license:...
read moreShould Your Charge Card Bills Get a ‘Second Look’?
Let me ask you a few questions about your banking, credit cards and how you pay your bills: Do you go over your credit card statements in great detail, or just scan to make sure things don’t look out of whack? How many “automatic” renewal charges do you have going on your cards? Do you ever sign up for those “first month free” deals and input an account number with the plan to quit the program or unsubscribe before the first month is out? I think all of those are fairly common attributes of modern life, but unfortunately they can all lead to an unwanted slow—or not-so-slow—cash drain. We have so many cards and financial accounts today, that it’s easy to get complacent about monitoring them. Capital One just kicked off a pilot program called “Capital One Second Look” that is designed to prevent some of the problems that can occur from these situations. Extra help The Capital One program monitors credit card transaction for high bill amounts, subscriptions that renew automatically, duplicate amounts and other easy-to-miss charges. This will add an extra layer of protection and make life a little bit easier for those who hold Capital One cards. Most of us by now probably know that most credit card issuers have fraud detection programs. I know I occasionally get a call or text message asking me to verify a certain charge amount. However, Capital One says that its Second Look program will alert customers on a much wider variety of potential issues. Capital One has labeled it as a “pilot program” so it’s sort of like software that’s in beta. You can probably expect some fine tuning as customers interact with its alerts over the next several months. And, they are doing something interesting during this rollout. They’re asking customers to tell them what “Second Look” should be, well, looking for. I know that I will appreciate Capital One flagging those “first month free” services that I’m inclined to try out every so often. They always make me nervous, and sometimes I bail out before the last mouse click. Knowing that I’ll get an alert later down the road should give me a little more confidence and who knows, I might sample some good services that I would otherwise skip. By the numbers According to Capital One, data shows that two out of three of their customers overlook duplicate charges that could have been made in error. Early results indicate that Second Look alerts make customers three times more likely to question a charge. The alerts come via email. So far 25 percent of the Capital One customers trying out the pilot program have inquired about hikes in regularly occurring charges, such as when a utility bill goes up unexpectedly. I think that anything that makes us more observant and attentive consumers is a good thing. Especially for small business owners who are trying to watch every penny…which is what the Second Look program does, literally…well, digitally is probably a better...
read moreLet’s Shake on It: The Importance of Trust in Business
June 26 is National Handshake Day. For the small business owner, it should remind us that our word and handshake must be absolutely trustworthy. Without trust, there can be no commerce. Remember the story about George Washington and the cherry tree? You’ve also probably read somewhere that it didn’t actually happen. However, I recently read an account that says it probably did happen, but not in the way that you’ve heard it recounted in the past. I want to relate this today because it has everything to do with commerce and trust. Stick with me for a moment. The real story First, no one ever said that Washington “chopped down” a cherry tree with his hatchet. An early Washington biographer, Pastor Weems, said that the future president damaged the bark of a neighbor’s cherry tree with his hatchet. This, of course, can kill the tree. If you ever messed around with a hatchet in your yard as a kid, this story probably sounds authentic. Further, all the other details in Weems’ account of Washington are unchallenged, so there’s a good chance this detail is true as well. Aside from building up the legacy of our first president, why was this important? Simple: trust was critical in Washington’s time because commerce completely depended on it. You see, there was very little currency floating around the colonies in those days. Items were bought and sold generally with 20 percent in cash and the rest on account. Merchants had to be sure of their customers’ trustworthiness for commerce to happen. This is why it was important for young Washington to establish his honesty. Had he slinked away and denied his actions—when he was probably the only likely culprit—it would have been a stigma that followed him around for years. Extending a hand Offering a handshake as a greeting is polite. Extending your hand to seal a promise should signify a true commitment. Businesses will function more smoothly and with more confidence when handshakes carry meaning. As a small business owner, you probably understand this. While the major corporations keep legions of lawyers busy drawing up contracts that cover every possible contingency in a business relationship, you know the value of plain talk followed by a handshake. And the best way to honor National Handshake Day is to continue that level of trustworthiness. (By the way, that glimpse into young George Washington comes via “The Education of George Washington: How a Forgotten Book Shaped the Character of a Hero,” by Austin Washington. It’s a good read.) Image: Handshake Man-Woman by Flazingo Photos, used under a Creative Commons Attribution-ShareAlike...
read moreGrab Some High-Octane, Fully Caffeinated Small Biz Inspiration
You have to love it when two of your favorite things in the world come together, and for many of us that’s exactly what’s happening with Enterpreneurship.org’s “1 Million Cups” program. Entrepreneurs come together every Wednesday in locations all around the country—often coffee shops—to have a cup of java and talk about their projects. (Okay, now that I think about it, this may combine three of our favorite things: entrepreneurship, coffee and talking!) A moveable brainstorm Let me be a little more specific about the talking part. Each week two local entrepreneurs give a 20-minute presentation about what they are doing. They then engage with the group, fielding questions, listening to suggestions and generally brainstorming. Of course, in arenas like this, it’s also very possible to find areas of overlap, places where one startup can help another. You might think of 1 Million Cups as sort of a mini-coworking setup. Cross fertilization between small businesses can yield great results. When two or more innovative startups get together, the sum of the whole is often greater than the individual pieces. The groups meet on Wednesday from 9-10 a.m. It’s just an hour, but when you factor in the caffeine and the energy entrepreneurs bring to the table, a lot can be accomplished in just 60 minutes. Find a meeting Check out their map of locations, and you’ll see that the project stretches from coast to coast. Many of you should be able to find a nearby meeting. Local groups are pretty autonomous. The concept, organization and materials were developed by the Kauffman Labs for Enterprise Creation. Local organizers enlist in the program, receive support—materials and coaching—from Kauffman Labs and then make it happen in their own cities and towns. Once local organizers are ready, they scout venues, find sponsors, bring in others, build the buzz, source the coffee, manage the web presence and more. Local organizers also enjoy subsidized trips to Kansas City periodically to attend organizer summits. Start a meeting If you’re in the startup mode, or have an idea you would like to take to the next level, I encourage you to find a 1 Million Cups meeting and go ASAP. There’s a very good chance you will meet the people you need to know to network in your city. And through those relationships, you may get the ideas that it takes to assure the success of your small business. And if your town isn’t yet on the 1 Million Cups map, give some thought to offering yourself as a local...
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