Test Startup Urges As An Intrapreneur, With Caution

intrapreneur-light-bulbBelieve it or not, even large and mature companies often initiate entrepreneurial efforts inside their own companies, and they look for employees who have the right attributes to make this happen. If you want to explore the world of an entrepreneur, without jumping ship, this would be the way to do it. Entrepreneurs working inside big companies are called “intrapreneurs.”

Many companies do this to explore opportunities for growth outside their normal domain, and compete with conventional startups, to penetrate new markets and profit from the next big thing. A reason on the other end of the spectrum would be to de-consolidate non-core functions to live or die on their own merits. A third reason would be to mingle and learn from the startup culture.

The Best Entrepreneurs Learn To Stay Ahead Of Change

change-business-anticipateAspiring entrepreneurs who rely only on traditional learning vehicles (teachers, classrooms, and risk-free practice) are doomed to failure in anticipating change today. Either they are never really ready to commit, study an opportunity until it has passed, or fail with tools and techniques from a bygone business era. The Internet and the current information wave have changed everything.

Being a successful entrepreneur these days requires a current insight to a myriad of changes, including many that haven’t yet been integrated into the traditional academic learning vehicles of textbooks and professors. The Internet is the problem, by facilitating constant change, and it’s the solution, by providing an absolutely current view of customers, trends, and best practices.

How To Take Your Idea From A Hobby To A Business

handmade-hobby-versus-businessAs a startup investor, I often see business proposals looking for funding that really look like expensive hobbies looking for donations. I recognize that entrepreneurs tend to substitute vision and passion for formal processes, but no discipline or process in building something new is a sure way to spend money, rather than see any return and build a self-sustaining business.

I’m not suggesting that you model your startup after the complex corporate organizations you hated in your last job, but there are at least eight key functions and activities that every investor expects to find in a startup proposal with any real potential to change the world. Each of these requires some ongoing effort, so I expect at least a rudimentary process associated with each:

7 Team Attributes That Can Make Any Idea Come Alive

Playing_mafia_gameThere is an old saying in the startup investor community, “Smart investors invest in the team, not the idea.” As an angel investor, I’ve learned to believe in this approach, since I have seen great ideas go astray, due to poor execution and I have seen apparently marginal ideas make millions, managed by a savvy entrepreneur. Giving the wrong people money doesn’t help at the idea level.

Who would have forecast that entrepreneur Gary Ross Dahl would make millions by starting a “pet rock” business way back in 1975? Some business successes can be attributed to luck, timing, or available funding, but in this case most agree that Gary was simply a marketing genius and he created his own market through creative advertising, emotional appeal and exclusivity.

7 Leadership Tips When The Business Is Struggling

Richard-LindenmuthIt’s easy for an entrepreneur or a CEO to feel like a leader when things are going well, but the challenge is to keep that confidence and drive in the face of economic downturns, business turnarounds, and stressful personnel situations. Working twenty hours a day, losing your cool, and falling back to a no-risk strategy are not conducive to long-term success.

I saw some practical tips for business leaders under pressure a while back in the book “The Outside the Box Executive,” by Richard Lindenmuth, a seasoned interim CEO, who has stepped in and revitalized more than his share of struggling companies. I’m convinced that his advice is equally relevant to early startups, where the challenges are legion and the path is far from clear.

10 Tips On Finding The Best Career Fit In A Startup

start-entrepreneurToday is the new age of the entrepreneur, and I see an increasing number of new startups as the economy stabilizes. For new aspiring entrepreneurs, that’s the good news and the bad news, as it increases opportunities, but also increases the startup risk. Thus I often recommend taking a job in a startup first, to build connections and learn what you can, before stepping into the lead role.

Find Your Sweet Spot To Excel As An Entrepreneur

the-purpose-effect-etsyFinding your sweet spot as an entrepreneur needs to start with a meaningful personal purpose that is also a business opportunity. Some people are so passionate about a cause that they forget to consider the lack of business potential, while others are so enamored with profit that they jeopardize their ethics. Both ends of this spectrum fail to bring long-term satisfaction or success.

Many entrepreneurs are finding their “secret sauce” these days by combining a strong purpose with a good business opportunity. For example, the handmade-item platform Etsy sponsors free entrepreneurship courses for underemployed and unemployed people, including assistance in setting up a store on Etsy, thus adding more artists and artisan sellers to their platform.

9 Great Paths To Recurring Revenue For Your Startup

NetflixDVDEvery new business quickly realizes that revenue coming in every period on a committed basis is the Holy Grail to survival and growth. According to many experts, getting new customers is five to ten times harder than getting additional revenue from existing customers. Thus the subscription model (low fixed monthly payments), is rapidly becoming the norm for new products and services.

Subscription pricing has been around for a long time for magazines, cloud-based software, and gaming, but now I’m seeing it used for just about anything, including for more stylish clothes via Mr.Conection, gourmet foods via TryTheWorld, and toys for your kids via Pley. If you are an entrepreneur not using this model, it may be time to consider a pivot.

7 Reality Checks On Your Funding Odds With Investors

The_Reality_CheckIf you expect an equity investment from reputable investors for your new startup, you need to know the boundaries that often limit their interest. In the jargon of investors, certain businesses may be viable but not fundable. For example, investors recognize that online gambling sites or a medical marijuana site may generate big returns but may tarnish their squeaky clean reputation.

There are many other more mundane reasons that your startup might be deemed non-fundable, depending on your own circumstances, where you live, or the case you have put together. As an active angel investor, here are some key ones I have seen, with some guidance on how to improve your odds.

6 Principles For Overcoming Entrepreneurial Adversity

entrepreneurial-adversityEvery entrepreneur knows what it’s like to face adversity. It comes with the territory, and includes cash-flow challenges, fickle customers, belligerent investors and unpredictable economic downturns. The best entrepreneurs tackle these one at a time without losing their stride or their passion and many secretly get their highest satisfaction from overcoming an impossible problem.

For example, you probably didn’t know that the world’s richest entrepreneur, Bill Gates, found that his first venture, Traf-O-Data, failed to make money because he couldn’t solve the technical problems quickly enough and selling to municipalities was a nightmare. Instead of making excuses, he credited his later success with Microsoft to the lessons he learned with Traf-O-Data.