Entrepreneurs: Where Do You Meet Investors?

You’ve probably heard it before, but it really is true. The best place to look for your first investors is almost always going to be your inner circle – friends and family. People who know you. From there, it’s all about friends of friends, or friends of colleagues – great referrals and contacts made by people who can vouch for you, your character and your business savvy. The next natural step is to more structured angel groups, or even venture capital forums. You’ll have to submit your executive summary, and maybe even a plan, for the chance to get invited to present to their group. This can be a great way to meet lots of prospects in one shot and get your feet wet with more formal, full time, and/or institutional investors (like VCs). But at the same time, realize you are still making a first impression, not to mention the fact that you’ll have to share your concept with a group or larger audience.

Some great networking places? Venture forums and VC mixers for sure – even if you’re not presenting. Most major cities have some sort of venture association that holds networking events. Also look into the Chamber of Commerce, the Junior Chamber (JCI) in your area, or better yet, the closest major city. Other great places are industry conferences and events. And if any of the major universities or colleges in your area hold business plan competitions or entrepreneurial events, definitely check them out too. Speaking of, your own alumni network is probably packed with its own possibilities.

Bottom line, always be making connects and let people know what you do and who you’re looking to meet. The best investors sometimes come from the most random of encounters. Also realize that raising money is a tough process that is totally unpredictable and comes with a very very steep learning curve. That’s another reason people say that you have to LOVE what you do… because you dedication and passion will certainly be put to the test.

Industry Spotlight: Weddings

Breaking into the wedding industry should be real piece of cake (ha!) simply because it’s such a big industry with tons of media, resources, products, services (etc.). It’s also huge since it affects people from all walks of life, every background, every age, and from every corner of the planet. Someone asked this question on the ANSWERS board at YSN.com so I thought I’d share the insight here, too.

To figure out the best way to break into the wedding world, start by thinking about what you actually want to do in it. Produce events, design dresses, sell invitations, publish new media? Even pick a few related options. Then start scouring the market to see what’s out there. Assess your competition.

Think about whether you want to try to build a national or international business from the start (easier if you’re an online business, of course) or a local business. If you go with the local angle, start to visit all of the local vendors. Ask them if they know of anyone who has the service or products you’re thinking of specializing in. Then, try to find your niche. What can you do that no one else is doing? Or what can you do that’s cheaper, more high end, more customized, more turn-key, less hassle… pick your angle and make a go at it.

Look for the industry trade associations online. Devour whatever info you can find like a butter cream topped piece of cake. Sign up for the newsletters or other publications of interest. Attend their events. Join their membership once you’ve vetted the more prestigious ones out. That will also make you look a little more official when you start marketing yourself.

My only other advice would be, if you’re totally unfamiliar with a new industry, start by dipping your toe in it first. Take baby steps. See how you can provide samples or one-offs of your product or service. Maybe even give it away for free a few times, just to get people talking… and make sure you get plenty of pictures, endorsements and raving fans out of it!

10 Tips to Plan a Party on a Budget

Hosting promotional events is one of the best ways to market and generate publicity for your organization. Parties can be used to build or change your image, introduce new products or services and create goodwill between your company and its surrounding community. However, events aren’t always cheap, and startups or growing companies may not even include them in a marketing budget.

Here are 10 tips for creating inexpensive events that will allow you to gain exposure and goodwill for your business. If you’re seeking new ways to promote your brand, business, organization or cause, create a dynamic Organization Profile on the all-new YSN.com!

1. Volunteer your company’s services to help with a local, newsworthy event. Be particularly conscious of the media involved, because you may have a chance for a free “plug” on the air or in the newspaper. By investing your time in return for access to such exposure, you have the opportunity to publicize your company’s services to your community, region or state. In addition, you can capture the attention of your local leaders who are, more often than not, willing to refer you if you’ve contributed to their organization’s efforts. Again, try to be a part of an activity that is highly newsworthy and offer a unique skill or service that will capture the attention of a reporter.
2. Find out if a local organization (Lion’s Club, church, community center) will offer you the use of its facilities, such as an alumni organization, small business association or community group. As the rental of a site is often the biggest expense of an event, you will save a great deal of money by using donated space.
3. Become friendly with your local caterers. Food is another huge expense in staging an event, but is necessary – people love to gather in a group and nosh. Remember, the caterers in your community need exposure just as much as you do, and will likely be happy to offer you a discounted menu for the exposure they may gain at an event. Feature the new caterer in your mailings with a word of thanks.
4. Talk to a local restaurant owner and ask him/her if you can reserve a few tables on a night that isn’t very busy (Monday or Tuesday is usually best, but note that many restaurants are closed on Mondays). Send out flyers to publicize your mixer, and charge a minimal cover ($5) to cover your food costs. Buy a few plates of hors d’oeuvres and some pitchers of soda. Have a cash bar, and be sure to invite enough people to recover most of your costs! Remember though, events are a cost of doing business, and you may not always recover your expenses, so be sure that the publicity you will receive is well worth a few dollars. If you are staging something unique, such as a winter luau, be sure to invite the press.
5. Coordinate with other young entrepreneurs and stage an event as a group (e.g. an end-of-summer picnic) – this will allow each participant to contribute to costs and labor.
6. If you can only afford to invite and feed a small number of people, make sure you fill the event with friends, family and anyone else who will be willing to stay for a few hours in order to create the image of a large attendance. (Make sure they eat before they come if you are really tight on funds, so special guests can enjoy the food! It’s a lot to ask, but if they’re your friends and family, most likely they’ll make the sacrifice for you.)
7. Offer to stage an event with a portion of the proceeds going to a local charity or organization. Be sure to stage activities which are somehow related to your company. For example, if you run a day-care operation, hold a parent-child picnic with a cover charge of $20, with $5 going toward the purchase of books for the local children’s library or the March of Dimes. This is a win-win-win situation, as it will allow you to create goodwill in your community, funding for the organization and exposure among the press. Additionally, as organization executives will be thankful for your efforts, they will be more than happy to refer you to others.
8. If you wish to be involved in a trade show, barter your services for a booth space. (for example, you may be able to help with set-up or mailings). This may not work if the show is large, so be prepared to negotiate. No one has to know you are doing these activities – keep in mind that your primary objective is a spot on the floor, and sometimes there is sacrifice involved. Do what you must to get exposure. Besides, it will provide you with a good story for later on.
9. If you can’t pay, barter. This can’t be stressed enough. Bartering is a mode of survival for many small businesses. If done well, and if your time donation is large enough, you may even be considered a sponsor of the event.
10. Once you commit to an event, be sure to tell people about it in enough time to get the crowd you’re looking for. There is nothing worse than an empty event! Try to get listed in your local newspaper’s calendar of events (sometimes requires a lead time of a few weeks), post on the web, through online meetup boards, and tell all your friends and colleagues to tell their friends and colleagues. Word of mouth helps!

Why Franchising is Right for You

Over the next 15 years, the largest generation in history–the Millennials–will continue graduating from college and looking for new and interesting opportunities to launch their careers. Eager to make their marks on the world, pursue their entrepreneurial interests, establish their independence and enjoy a comfortable lifestyle, franchising might just be the ideal opportunity for graduates. Here’s why:

1. The basic premise of the franchise model is optimal for young people. As the International Franchise Association likes to say, “Owning a franchise allows you to go into business for yourself but not by yourself.” For young people who crave independence but require extra TLC when learning the ropes, franchising offers a great mix of both. Millennials adapt well to proven systems, structure and oversight–which were norms for them in their academic lives. Younger owners eager to embrace new opportunities often devour franchisee manuals, contracts and training materials, which many franchisers complain aren’t always given adequate attention. Younger franchisees are also far more malleable than the typical franchisee candidate, who may have decades of experience but needs to be retrained in a whole new style of doing business.

2. They’ve grown up with franchising. Young people today have grown up using and relying on products and services provided by franchises. Almost all have been franchise consumers, and many have worked for a franchise company. In the book McDonald’s: Behind the Golden Arches, author John F. Love writes, “One out of every 15 American workers got his or her first job from McDonald’s.” In this way, many young franchisees can build on experience they gained as franchise employees. And as any franchiser will tell you, those with previous experience and a passion to take on the responsibility of ownership often make some of the best owners.

3. Entrepreneurship is in their blood. It’s not uncommon for twentysomethings to have three, four or five small businesses already under their belts, and that means they’re earning experience, credit, cash and other valuable resources that can prime them to be more successful franchisees. Many others, who have yet to launch their own ventures, are thinking about it and aggressively preparing themselves to do so. Not only are business and entrepreneurship classes popular, but experts estimate that there are currently more than 200 franchise-specific courses being taught on campuses across the U.S.

4. “Helicopter parents” mean more family support. It’s not uncommon for boomers’ lives to revolve around their children, so much so that many have been labeled helicopter parents for their tendency to hover over every decision their kids make–even when their kids are in their 20s and 30s. Having taken such an active role, many are open to financing or assisting their son or daughter as they get into their own business–or at least co-signing the necessary loans. This isn’t to say recipients of such assistance don’t have any skin in the game, though. Anyone who has ever borrowed money or had others invest in them knows that the pressure that comes along with it, whether direct or implied, can be just as intense as if their own money was at stake.

5. They think big. Once upon a time, young people were content with finding a great job, settling down and starting a family. Today, everything is supersize, including their dreams and aspirations. Millennials are inventors, leaders and even broadcasters at a young age. They create videos that can be seen by millions, they start nonprofits that affect the lives of thousands in foreign countries, they launch companies from their dorm rooms that sell for hundreds of millions. This level of ambition has caused many franchisers to start looking at young people not only as the next great wave of franchisees, but also as the best new prospects for multiunit ownership. The head of ExxonMobil franchising once told me he likes younger prospects because they often have bigger goals. His average middle-aged candidate typically has aspirations of owning one, maybe two, units, whereas those in their 20s are more interested in building 10 or 20 stations and are hungry to learn how to become multi-unit owners from the beginning.

Young people today clearly have many reasons to consider franchising as a career path, and they bring a lot to the table as franchisees. Not every recent grad will make a good candidate, though, just as not every older candidate will. It is, however, about time that the franchise community and young people start to recognize how good they are for one another. After having worked with thousands of young people, I think it’s crazy that people are still questioning whether young people are ready for franchising. The better question is, Is the franchise industry ready for them?

What’s Social Entrepreneurship?

Social entrepreneurship is where business and social action merge to create companies that aim to “do well by doing good.” In my opinion, it should be the standard all entrepreneurs and businesses live by, but for now, it’s a growing trend that will hopefully one day become the norm. Tons of great information is available online through a myriad of articles, sites and organizations focused on the topic, but if you’re looking to really dive into this world from an academic perspective, there are some outstanding options emerging.

Whether you’re looking for a great evening event to attend, a class you can take, a major in the topic, or even just want to know where all the action is in this area, here are the first two places I’d start: Babson College outside of Boston is actually building a Center for Social Entrepreneurship and is already offering some really fascinating classes on the subject. And since many would argue that this is the mecca of entrepreneurship education in the US, you couldn’t learn about this new spin on traditional thinking from any better people.

So, if you’re in the market for a phenomenal experience and a serious education on the topic, one class promises to cover: Concepts of Social Entrepreneurship and Non-Profit Enterprise (NPE). These NPEs, driven by innovative non-profit entrepreneurs, generate social value, in a triple bottom line model – (social return to mission customers, operational performance return for sustainability for organizational, employee, leadership and brand value and stakeholder/donor return). Various NPE business models seek to generate and leverage resources via a process we will explore known as “Entrepreneurial Philanthropy.”

Harvard also has some great classes and even a Social Entrepreneurship Lab! They describe it as a university incubator for a rising generation of leading social entrepreneurs fusing theoretical and practical approaches. In essence, “the SE Lab is a laboratory workshop where student teams create and develop plans for US and international social entrepreneurship initiatives… new entities or innovative projects, partnerships”, etc. “Areas include, but are not limited to: environment, poverty alleviation/microfinance, global health, human rights, gender/racial equality, education, corporate social responsibility, economic development, international conflict/resolutions, social innovation, and more.”

How inspiring is that?! There’s so much more to talk about on this subject, but hopefully this was a good first taste.

5 Ways to Meet the VIP

1. When you want to meet important people, the more times you can casually meet them, get introduced, or just shake their hand, the more likely they are to remember you next time. You should also do your research on them before any potential encounter. That gives you great options for starting conversations.
2. Get to events like this early. Save being fashionably late for another time. Every minute counts when it comes time to striking up a conversation with someone who’s tough to get to. If you find them in a social setting, find a way to get in there to talk. Just don’t be too obvious. Remember, it’s a lot easier to get a little quality time when big wigs are alone, or in a small group. Waiting until after an event, when everyone knows who they are, is the worst time to meet someone.
3. Call ahead to get a complete run down of the schedule of events. If you know someone who is organizing a big event, get the inside scoop from them and let them know your objective. Often you’ll find yourself with invitations to things you never knew existed. And if you’re not directly invited, ask how you can attend any pre-event functions. They usually provide the best opportunities to meet great people.
4. Since personal introductions are the best way to meet people, keep an eye out for people you already know, and who may know the person you want to meet. If they like you enough, they’ll usually find a way to introduce you if you ask. (And the more they like you, the better the introduction will be!)
5. The people who accompany honorees are usually a little restless as they are not the center of attention and thus are often left alone for bouts of time. They also usually don’t know many people and sometimes can even be board or uncomfortable. Find something out about them and get talking. If you hit it off, you’ll eventually meet the person they’re with. And who better to introduce you?

10 Tips on Making Your Own Career Choices

Have you ever heard the term, “Children enter school as question marks and leave as periods?” It refers to the process of molding young minds to an extreme… until they stop questioning and start accepting what they’re told. It doesn’t end in school either. Sometimes the pressure to become just like everyone else comes at us from all directions: from our friends, our families, colleagues, and even trusted advisors and mentors. So, how do you know when to take the road less traveled?

Here are a few tips to consider before you make your bolder moves:

1. Weigh the pros and cons of your decisions. Know what you’re getting into before you start out to avoid being sideswiped by the unknown.

2. Hedge your bets. Don’t put all your energy or resources in one place, so you’re not devastated if that one thing falls through.

3. Avoid risking more than you’re willing to lose or walk away from.

4. Have back-up plans. What if Plan A fails? Plan B? Plan C?

5. Have an exit strategy in mind, in case you have to abort your plan midstream.

6. Make sure your digressions don’t have the potential to hurt other people or cause serious problems that are hard to fix.

7. Learn from the experiences of others. Understand what risks other successful people have taken that have paid off, and what risks didn’t work out so well. Ask yourself “Why?” in each case.

8. Make sure the risk is worth the reward.

9. Once you make a well-informed decision to take your own path, don’t waste time second-guessing your choice. Put your energy into your new project or plan and work like crazy to make it happen.

10. The most important thing when taking your own unique path is to make sure that you’ve made your decisions carefully and strategically. Big risks can certainly bring tremendous rewards when they work out. Just give yourself and your loved ones the peace of mind knowing that you’ve done your homework before you give it your all.

Setting Goals: Aim High, Dream BIG!

If you’re determined to get everything you want without waiting a lifetime, one of the biggest secrets to making it all possible is to always starting with the ideal in mind. Focusing on what’s “practical” lowers the bar, while setting it as high as you can dream shifts your ambitions into high gear.

Recognize that not everything works out exactly as planned, stay cautiously optimistic, and you’re sure to keep your feet close enough to the ground. Some questions to ask yourself are:

• What will be the pinnacle of your career?
• What the highest position you will ever seek?
• What is the most impressive thing you want to accomplish or the biggest impact you want to make?
• What would you like to be known for?
• What will your days and nights be like?
• Where will you live? And play?
• What symbols of success do you hope to possess?

Success Tip of the Week: Examine Your Assets

To fully optimize your prospects for success, keep a running balance of your personal assets and liabilities. I’m not talking about creating a financial statement but the concept is similar.

Run a vertical line down a sheet of paper, then label the left side “assets” and the right side “liabilities.” Next, start to add any skills, abilities, special characteristics, resources or even contacts that are most valuable to you, and likewise, those that could be most harmful, or are most likely to hold you back. The trick is to find ways to best utilize your assets and compensate or eliminate your liabilities:

Born With: Think of the assets and liabilities that you were “gifted” with at birth. What came into your life from your parents, your genes, or was “God given?” (ie, basic senses, appearance, health, disabilities, etc.)

Born Into: What factors did you inherit from your family or surrounding environment? What do you have as a sheer result of who you are and how you were raised? (ie, wealth, health of family members, where you live, culture, religion, etc.)

Acquired or Developed: What personal assets and liabilities did you pick up during your development and growth? What can you take most of the credit for acquiring or developing on your own? (ie, confidence, social skills, values, knowledge, responsibility, style, etc.)

How to Seek Advice or Mentoring Without Being a Burden

Of all people, I understand the importance of asking others for help on our journey to success. I encourage everyone to seek advice from mentors, experts or people who already work in the industry or position you desire but chances are some of them have really hectic schedules. Even so, it’s possible to pick the brain of even the busiest exec if you know in advance what it takes to make it to the top of their to-do list. Here are 9 tips:

1. Monitor your expectations of other people and don’t take it personally if he/she is unable to meet with you. Also, keep in mind that scheduling a lunch or dinner meeting is often impossible – he/she probably can’t even spend that kind of time with family!
2. See if other members of his/her team are able to answer your questions. Those jobs and positions were created so the big boss can focus on other projects to grow the company.
3. Convenience is key. If you know he/she is speaking at a conference, make it a point to attend and do what you can to get some face-time.
4. Using the phone is usually the easiest, fastest method to make contact and get answers – just take notes! If he/she asks you to send an e-mail, keep it to less than five questions with short answers. Don’t ask, “Tell me everything you did to get to where you are today.”
5. Be very specific with your questions and open to referrals. Ask intelligent questions only they can answer — try not to ask anything you can easily answer with a simple Google.
6. Plan ahead! Don’t expect that you can get a meeting tomorrow so be flexible with your schedule. If they can’t help you this week, how about next month? It is important to keep the opportunity open for you to get back in touch later.
7. Say you only need 10 minutes – he/she will likely be more willing to put you in the schedule. If 10 minutes is all you get, good; if it goes longer, great!
8. Think twice about asking someone to become your mentor if you haven’t established a personal relationship yet since it requires a time commitment.
9. Most important, make sure to say thank you and offer to do what you can to help him/her in return!