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Posts Tagged ‘start-up’

Company Culture from the Beginning

Monday, April 15th, 2013

Inc. magazine, the always on-point print and digital magazine for growing companies, has published a few articles in the last week on company culture that got us thinking about how critical hiring the right employees is to the small businesses we serve.

Entrepreneurs and companies come to us at different times and for different reasons, but, unsurprisingly, nearly all of our clients intend to hire employees during the year after using our service. Makes sense, right? If you’re writing a business plan, it’s probably because you’re planning on growing your business, and more work means you’ll need more people to help you.

Most often, when owners and managers think about the workers they want to hire, they think of a list of skills that they need their workers to have. Sometimes they’ll have an organizational chart laid out with a pre-ordained hierarchy of employees. Thinking ahead like this is great, and it’s just what an owner/manager has to do. But it’s not only the technical skills of an enterprise that will be defined by who a company hires. The people that take on the roles described in an organizational chart will not be simple mechanical cogs completing the tasks outlined in a job description. They will be living, breathing personalities that will define a company culture. And don’t think for a second that culture isn’t part of what makes a company successful.

Different types of workers work in different ways. More than just the skills a person has determine how they get the job done: attitudes craft action. Two of Inc.‘s articles we noted focus on how certain character traits will often line up with certain types of work. For example, if a business is going to need to perform a lot of creative work—perhaps a marketing or web design outfit, or a production studio, businesses for which we write plans very often—it would be wise to think ahead about the character traits that often go along with the creative skill set. Another factor might be working to find a balance between extroverted and introverted workers. Extroverts tend to help “raise the bar” in the office, at least in terms of communication and public goal-setting. But it turns out, studies show that more introverted workers tend to be the ones who put their noses to the proverbial grindstone to make things happen.

The cultural composition of a company will have a profound impact on what your team accomplishes. A company must be skilled and competent, but it also needs to work together. Even if you have a team of all geniuses, if they can’t coordinate, then group projects (read: your business) will never get done right. Each subsequent employee will enter into the culture created by the previous ones: the tone of your office will start to be set by the first employees you hire.

What can you do to forge the right culture for your company? Inc. has you covered on the details, too. This last article is a great interview with Paul Spielgelman, founder and CEO of BerylHealth, a hospital call-center business. We love his “10 Steps to a Remarkable Company Culture”, steps which helped him grow his company and sell it to an industry leader with a $9 billion market capitalization. Check it out, and start your business out on the path to success.

The Question We Get Most

Monday, April 8th, 2013

We get asked a lot of questions. In the decade that I’ve run this business, I’ve heard just about every entrepreneurial question you can think of. Some of them are the specific questions our clients want to have answered in their plans, and have to do with their particular line of business: What gross margin should I expect at my sandwich shop? What’s a standard lead-to-sale conversion rate on an ecommerce retail platform? How many florists are there in Pittsburgh? Clients come in with a laundry list of these little questions, and our day-to-day work involves finding all the little answers.

But whether I’m working with an internet start-up owner or a restaurateur, there’s a question that it seems nearly every business owner has, usually near the end of their engagement with us. It’s a question they didn’t pay us to answer, but it’s the question they want answered most.

What do you think about my plan? Is it a good one?

In 2003, when I got that question, I was usually tempted to give the client a detailed opinion critiquing their core idea. I’d tell them how I would approach the situation. Typically, this just resulted in them taking my advice, regardless of whether it was good or not. I then had to rewrite a few sections of the plan, and the client would leave less satisfied, as the idea was no longer really theirs. When you’re in a position of authority with respect to starting a business, sometimes people start to think that you can run any business, and not just the business planning business you originally thought up. But I’ll be honest, 10 years of business plan consulting have given me a unique perspective on this question. I can now say what my answer always is: Whatever I think, it doesn’t matter.

Mind you, my staff and I have lots of great advice on how to present your idea. We’re great writers, and we know how to lay out a financial model in a clear, concise, and detailed manner. But when it comes to the question of whether you will succeed, we don’t staff any psychics, and don’t plan to.

In 10 years I’ve seen businesses I thought were destined to be the next Facebook or Twitter before I had heard of Facebook or Twitter. But guess what. You’ve never heard of them. You’ve heard of Facebook and Twitter instead. I’ve also had a few business owners come to me with what I thought was a simply stupid idea. Well, those stupid ideas now take in more revenue every year than I do.

I’ve learned that I just don’t know what’s going to work and what won’t. This is great for my clients, because now every plan is approached with the same candor. Our business is about making each plan shine, not about finding the needles in the entrepreneurial haystack.

And still, I find that sometimes this answer doesn’t sound quite sufficient. Sure, you can’t read the future, they say, but what do you think?

The truth is, I still think that in answering such a question, my talk is cheap. But the blood, sweat, and tears of the entrepreneur asking me were not. And that’s the question such an entrepreneur inevitably needs to ask. What do I really think about this plan? Am I going to make it? Both common wisdom and scientific study suggest that confidence is key to successful business creation. And so if I have a crystal ball, it’s only this one: if you believe in your idea, if you think you have what it takes to make your business succeed, then my bet is you’ll make it. But if you don’t believe in your idea, no business plan in the world is likely to lead you to success.

Bryan Howe
CEO
Masterplans.com

Women’s History Month: Entrepreneur Edition

Monday, March 25th, 2013

As you likely know, March is Women’s History Month in the U.S. (and many other countries in the world, in line with International Women’s Day on March 8). We think one of the most interesting and exciting aspects of women’s history is the history of women in business. While the story is one of struggle—a struggle that continues today—it is also a story that highlights the human power to succeed against all odds and the truly amazing strength of the women that have forged a path to prosperity for themselves, their families, and their communities.

There’s a great synopsis of the history of female entrepreneurs here, at the National Women’s History Museum website. In the 19th century, woman-owned businesses were a much less common sight in America, generally restricted to small enterprises like retail stores, taverns, and inns. These businesses were often left to a woman after the death of a husband or father. The Progressive Era saw the beginning of a period of transformation that would extend to the present day. Central to this change was the increase in support services and communities for women business owners, like the Business and Professional Women’s Clubs, started in 1919.

Today there are even more resources available for women starting their own businesses. The Small Business Administration has set up this page to centralize their resources for female entrepreneurs. The SBA also runs over 100 education centers across the country ready to help women start and manage their own businesses. The private sector has joined in, too. Goldman Sachs released research showing women make the best investments and has implemented the 10,000 Women program to help women across the world access education in business and management.

More progress is yet to be made: women are still often underpaid in the workforce and underrepresented on executive teams, for example. However, the advancement made by female entrepreneurs in the last century is something we can be proud of. Today, women run some of the most exciting businesses in the world, even in industries (like tech) that have historically been even more male-dominated than most.

At MasterPlans, we focus more on women’s futures than women’s history. 54% of our clients and over half of our staff are women, and we’re devoted to helping female entrepreneurs find success. So let’s make March not only a month when we look back at the women who have made the world thrive, but also look forward to the successes yet to come. And if you want MasterPlans to aide you in making this month monumental in your personal women’s history, know that we’re here to help.

Six Hot Industries for Startups in 2013

Monday, March 18th, 2013

The economic climate is getting sunnier by the day, creating an ideal opportunity for entrepreneurs looking to capitalize on burgeoning trends. But some industries are a better bet than others. Unsurprisingly, as the mobile revolution continues, many of these industries center on new technologies and the needs and opportunities they create. Others are growing because consumers have fatter wallets, full of disposable income to spend on nonessential—but highly rewarding—goods and services.

So what are the most promising industries for startups this year? We’ve checked with news sources (like Inc. and The Week), research firms (like IBISWorld), consulting groups, and the U.S. Census Bureau to bring you this list of the best industries for startups in 2013.

  1. Social network game development: As mobile devices become ever more popular, people will naturally spend more time on them. Connecting with friends and playing games are favorite activities, and this rapidly growing industry combines them both. Social network game development is expected to have grown by an impressive 30% in 2012, and its compound annual growth rate over the next five years should weigh in at 184%.
  2. Corporate cloud services: Secure data storage is a must for today’s multinational corporations, many of which employ teams who must work together seamlessly in offices around the globe. Big data was a $3.2 billion industry in 2012, and it’s expected to hit $17 billion by 2015.
  3. IT consulting: As more businesses move to mobile and cloud-based computing, this industry has grown at a remarkable rate. Between 2007 and 2012, the industry added 200,000 new jobs, and grew by more than 8% a year. Experts predict a growing emphasis on security consulting to help businesses keep their data secure.
  4. Restaurants: Thanks to the rising rate of per capita spending, even budget-conscious folks can afford to eat out. This industry already employs about 10% of the workforce, and is expected to grow by 5.5% in 2013.
  5. Residential construction: The recovering economy has finally put this industry back on its feet. Now that property developers can afford to build, and homeowners can afford repairs and renovations, this industry will grow by more than 10% a year over the next few years, hitting $573 billion in 2017.
  6. Pet services: Almost two-thirds of us own at least one pet, and we’re more inclined than ever to spend money on our best friends. The pet services industry was worth almost $53 billion in 2012, and it’s expected to grow by more than 5% a year over the next five years.

Whether you’ve always wanted to be your own boss or whether you’re on the lookout for lucrative expansion opportunities, these industries are a great bet. Of course, if you have a truly innovative idea that the market yearns for, perhaps it’s time for you to help define the hottest industries of 2014…

Buzz is No Buzzword

Monday, March 26th, 2012

Helping people start and expand businesses puts us in a prime spot for seeing the trends that take a powerful hold in the market. Sometimes a trend is just a buzzword: we hear it a few times and it quickly passes (when was the last time someone asked you how you define your co-opetition?). But sometimes we notice a trend that has gone truly viral and becomes a new norm in how people do business.

These days one of the strongest trends is towards the utilization of social media and new marketing tactics that help businesses engage directly with their customer base. This is a powerful concept at its core—the mission of every business is to win over a limited marketplace full of customers, and speaking directly to them offers great potential.

We haven’t just seen more app developers contacting us looking for a plan that will help them find angel investors while they start the next Facebook or Groupon, we’ve also seen a wide variety of traditional businesses adopt marketing strategies that use social media to create buzz about their business, and a lot more instances of an “app development” line in the start-up expenses table. Studies over the last few years have shown small and large businesses alike at different stages of development quickly adopting social media plans.

We’ve become more active social media followers, too, blogging, tweeting, sharing and promoting our clients and partners. We’ve also become experts in helping businesses of all industries to get across how they’re going to leverage their social brand image to speak to their audience. It’s a great strength that investors realize sets even the restaurateur or wholesaler apart, showing dedication to the business and familiarity with the cutting edge.

How Not To End Up Like “Iminlikewithyou.”

Friday, June 5th, 2009

Trying to come up with a good name for business can either be incredibly easy (that is, you name it after yourself) or really, really hard. Not only do you want it to sound good, but it shouldn’t be a blatant rip off of someone else’s business name either. ReadWriteWeb (via Lifehacker) has a few useful tips to get you started, even if you’re only just starting to write your business plan. RWW’s first suggestion is obvious, but useful: Check out the U.S. Patent and Trademark Office to make sure that you’re not swiping something that’s already been taken. If the business name you choose already exists (and chances are that it already probably will) as long as you’re not in the same industry as said business, you you’re usually okay. We say “usually” because businesses like eBay have gone after companies (DepoeBayRealty.com, for instance) who’ve only used parts of their name, although such suits are typically unsuccessful.

Once you’ve determined that you’ve chosen a name that won’t land you in court, try tossing out the name to trusted friends, family members, and other entrepreneurs. See how they respond to the name. Do they cringe? Do they laugh (and that’s not your intended response?)? If only the suits at the start-up Iminlikewithyou had done that before launch—they might not be on their second name, OMGPOP. In other words, if you’re not getting a positive response, back to the drawing board.

Finally, Lifehacker offers upon one more useful suggestion when it comes to finding a name for your business—check out BrandBucket’s Choosing a Name series, which has an incredibly helpful chapter on the importance of pronunciation: “You’ve launched your site. Your first customers loved it…but growth has slowed. Wait…what?! Why?! Well, you’ve seriously disabled your word of mouth when you create a brand that people cannot pronounce correctly.” Enough said.

Does anyone else have any helpful tips for naming a business?

badbizname

Rate The Start-Up: PetAirways.

Friday, June 5th, 2009

Start-ups that cater to people’s odd (and oftentimes expensive) whims in the U.S. are nothing new. Deep in the throes of a crippling recession, however, you’d assume that some of those uber-luxury business plans would go the way of Concorde and close up for shop good. That’s why it was a bit of a surprise to hear about the launch of this start-up: PetAirways. Yes, it’s what you think—a start-up airline company that flies dogs and cats around the country, no humans allowed.

A few years ago, a start-up like PetAirways wouldn’t have prompted anyone to bat an eye. But now, when consumers are tightening their belts, and even the wealthy are making dramatic cutbacks, can a business like this really survive? CEO and owner Alysa Binder tells CNN that they’ve got a fighting chance. The reason she says is not because pet owners want to fly their Fifis and Snowballs in luxury, so much as it is a question of safety:

“There is a huge need for safe air travel for pets,” says Binder—referring to the 29 animals who’ve died since 2007 in air transit. In fact, they said they came up with the idea for the business after a stressful experience transporting their dog back in 2001.

While that may well be, the question is whether consumers will cough up $149 for a one way ticket (the cost of the inaugural flight from New York to Chicago) to ensure that their pet is safely transported. While that’s expensive, there naturally is some value for pet owners. Pets are placed in the main cabin in individual crates that are strapped in. Pets are accompanied by an attendant and a veterinarian on each flight, and should there be any layovers, pets are taken off board for a quick walk and bathroom break. Flights traverse the U.S., from New York to L.A., New York to Chicago, and Chicago to Los Angeles, with some legs costing as much as $199 apiece.

From a business planning perspective, PetAirways strikes us a risky model right now. Airlines are a high cost, expensive industry, with the price of purchasing planes, fuel, and other fixed costs on the rise. If PetAirways doesn’t fill its flights—which hold 50 pets apiece—they could quickly end up operating in the red. Without analyzing their business plan it’s hard to know how they intend to keep costs down and sales up, but it’s a good bet that they’re banking on crazy, er, loving pet owners who are willing to pay to ensure that their pets get transported safely.

What do you think? Can a business like this survive in today’s economic climate, or will PetAirways find itself grounded before take off? Tell us what you think in the comments section below.

petairways

(Image via CNN)

The Genesis Of A Successful Start-Up.

Thursday, May 28th, 2009

While it’s fascinating to get inside the head of a successful start-up’s CEO to find out how it all went down – from idea to inception – those glimpses are rare. But today at the All Things Digital Conference, Twitter founders Evan Williams and Biz Stone provided a unique inside look at the Twitter story, including how they got the initial idea and how they brought it to fruition. Fast forward in about 30 seconds (after they discuss a few of Twitter’s problems, including its retention rate) for the meat:

To Spend Or To Save, That Is The Question.

Monday, May 18th, 2009

These days most entrepreneurs are closely guarding their cash – no matter how well their start-up is doing and no matter what sort of spending last year’s business plan dictated. Not only that, it seems that the general consensus right now is that spending in an attempt to grow a start-up is a fool’s errand at best. But is it? As the Wall Street Journal reports, some businesses that haven’t been as dramatically impacted by the recession are questioning whether they should continue hoarding cash, or whether it’s time to spend in an effort to elbow out some of the weakened competition:

“At a recent board meeting, Jaspersoft Corp. Chief Executive Brian Gentile found himself stuck between two camps: the savers and the spenders.

One faction of the San Francisco software company’s board wanted Mr. Gentile to preserve the start-up’s $15 million cash reserves by keeping expenses down. Other directors urged him to grow and take market share from rivals weakened by the recession.

‘It was sweaty, it was tense,’ said Mr. Gentile of the November meeting. ‘It was literally a two-hour rejustification of why we’d defy the odds.’”

Such is the struggle that many businesses are facing right now. Do you take the risk that comes with spending and potentially weed out competition and grow? Or do you save, bide your time, and focus on growth only once the downturn’s over?

For this week’s survey question, we thought we’d ask what your strategy would be if you found yourself in the position to make such a decision. Sure, there are all sorts of variables that would figure into such decision making, but we’re asking you to ignore that, because this is pretend. So: if you’re in charge of a business that isn’t struggling too badly right now, what do you choose: spend in a bid to push out some of the weakened competition, or hunker down and cling to what cash you’ve got? Tell us what you think by clicking to vote in the survey below:

Giving New Meaning To, “So Easy, A 12-Year-Old Could Do It.”

Monday, May 11th, 2009

“Sam Kaplan and Louie Harboe’s company, Tapware, is one of the more promising technology startups in Chicago.

Based in Hyde Park with guidance and a bit of seed funding from one of the University of Chicago’ s top business school professors, Tapware recently released its first iPhone application called ‘The Mathmaster’ and has a second app in the works. With as much institutional knowledge of the iPhone development platform as arguably anyone on the planet, Kaplan and Harboe seek to profit from an industry that has spawned more than 1 billion downloads of commercial applications within its first year of existence,” reports the Chicago Sun-Times.

Did we mention that Kaplan and Harboe are seventh graders? They say they’ve been writing business plans together since the 5th grade. We’re not sure whether this is inspirational, or just depressing…

iphoneappkids

(Image via the Chicago Sun-Times)

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