Secrets of Successful Female Leaders

When it comes to leadership, there’s no clear-cut ‘right’ or ‘wrong’ style. There are many different approaches to leading a company, which oftentimes depend on the company’s culture, its financial stability, and any number of internal and external circumstances. With female CEOs like Marissa Mayer and Sheryl Sandberg making headline news for certain leadership styles (and who are oftentimes faced by backlash from other women and critics), it’s hard to know what style would work best for your company.

Inc. magazine features two stories about what factors contribute to successful leadership by female executives and entrepreneurs (and which can be applied to any successful leader male or female)!

Don’t try to lead like a man

It’s not to say that male leaders cannot be successful leaders—they absolutely can and they absolutely are. But women have some natural instincts and mannerisms that help to make them effective in a leadership role, such as focusing on people (rather than just on the numbers) and tend to be a bit more empathetic.

Personality traits that make for successful leaders include collaboration, inclusion and consultation—successful women leaders strategically use these qualities when building successful companies.

Secrets of successful leaders

There are several things that you can do to become a leader who listens and excels, including some of the following:

• Owning your own destiny: define success in your own terms (it doesn’t necessarily generating $1M in revenue after several years—or ever) and create your own metrics and measurements of success (but be sure to hold yourself accountable)
• Learn the business’s finances: not only is it important to know your industry inside and out, but it’s also very important to be able to talk about the industry and your specific business in terms of financials—learn the numbers and be ready to talk about them at all times
• Build an exception team: hire people who you can work with that can handle an entrepreneurial, ever-changing environment; start-ups function much differently than larger, well-established corporations—it’s important that your employees are able to adapt to new situations, think creatively/critically, can appreciate risk-taking behavior, and be comfortable working in an entrepreneurial environment

Becoming a better leader

In order to put your knowledge to the test and become the strongest leader you can be, it’s important to follow these steps on the path along your entrepreneurial journey: establish a tangible vision (be realistic and create metrics to measure growth); put others before yourself; and talk to your customers and employees (and really listen to what they’re saying).

What are some of the most important qualities do you see in a successful leader?

To read more about the strengths of women leaders, please visit the following:

http://www.inc.com/jana-kasperkevic/women-entrepreneurs-conference-simon-sinek.html

http://www.inc.com/marla-tabaka/secrets-of-how-successful-women-lead.html

Thanks for reading, and until next time… stay WISE!

Setting Boundaries When Friends and Family Invest in Your Business

We’ve all heard the popular phrase ‘don’t mix business with pleasure.’ The same concept can sometimes be applied to situations where an entrepreneur seeks start-up funding from friends and family—or anyone within a close personal network. It’s easy to make an ‘ask’ for funding to a close friend or family member, rather than pitching to strangers at a venture capital firm or several of your local banks. However, it is important to keep certain ‘ground rules’ in mind if you do decide to borrow money from (or lend to) a friend or family member. This will help to ensure that in the future there is no argument or disagreement about the terms of the loan.

There are many articles and books that broach the subject of lending/borrowing investment and start-up capital from friends and family. Recent articles from Entrepreneur.com, Forbes.com and the online Wall Street Journal discuss ways to approach the ‘ask’ and ways to evaluate whether or not the investment would be a worthwhile opportunity.

Things to consider before asking to borrow from friends & family

If you decide that you’re going to ask a friend or family member to loan you money for your business or start-up, remember to tackle the following issues prior to the ‘ask’ to be better prepared:

• Create a solid business plan: Identify the market and competition, important financial aspects, and show the projection of anticipated growth
• Put the terms of the deal in writing: Having a legal document clearly outlining all terms of the agreement will be useful if one person is delaying on payment or the other is asking for something that was not initially agreed upon
• Set clear repayment terms: Be sure to define your rate of interest and when/how frequent payment will be; your investor, albeit a friend or family member, wants to know when you plan to start paying him/her back—set goals and stick with them

Things to consider before lending to friends & family

As much as you may want to help a friend or family member who approaches you for start-up or business funds, the following are some things you should consider before saying ‘yes’:

• Discuss other options: Perhaps there is a way you can assist the venture that doesn’t involve finances, such as being on the board of advisors or assisting in the marketing plan
• Have clear expectations: Create a loan schedule and discuss ‘next steps’ if a missed payment were to happen; make sure the individual knows that this is a loan and not a gift
• Put it in writing: As noted when considering borrowing money from a personal contact, it’s important to also ask for terms in writing if you’re on the lending end of the agreement to avoid any confusion in the future during the repayment process

Would you consider letting friends and/or family invest in your business or loan you start-up capital? What terms would you set? If you have loaned to others, what are some questions you asked before investing?

To read more about some of the issues involved with borrowing from or lending start-up money to friends and family, please visit the following:

http://www.entrepreneur.com/article/226571

http://www.entrepreneur.com/article/224449

http://guides.wsj.com/small-business/funding/how-to-borrow-from-family-and-friends/

http://www.forbes.com/sites/deborahljacobs/2013/03/25/think-twice-before-lending-money-to-family/

Thanks for reading, and until next time… stay WISE!

Top U.S. Cities for Women Entrepreneurs

When starting a business, it is important to identify a mentor or someone to talk to about your business (the good, the bad—everything) and to form a network of fellow women entrepreneurs who can make referrals for business-related and personal needs. Cities across the U.S. are leading the charge for female entrepreneurs and established businesses—especially within the last ten years. In 1997, there were 5.4 million women-owned businesses and in 2007, there was an estimated 7.8 women-owned businesses that are generating $1.2 trillion in revenues. Steady growth in the market and a growing network of female business owners helps to continue to contribute to assist in the growing numbers of women-owned start ups.

Entrepreneur magazine contributor Kathleen Davis compiled data and highlights the top cities where women entrepreneurs are starting/currently own businesses. Metrics are based on the average income of residents, unemployment rate and the percentages of women-owned businesses. The following highlights some of the key numbers and statistics from this study.

Top cities for women entrepreneurs

When looking at the top ten cities for female entrepreneurs (based on things like education levels, income, population, unemployment rates, there isn’t a heavy bias towards the west or east coast, but span from coast-to-coast and everywhere in between. According to a study compiled by Entrepreneur.com, the top ten cities for women-owned businesses include the following:

1. San Francisco, CA
2. Seattle, WA
3. Washington, DC
4. Minneapolis, MN
5. Portland, OR
6. Atlanta, GA
7. Austin, TC
8. Raleigh, NC
9. Denver, CO
10. San Diego, CA

In addition to the above list, there are some cities who support female entrepreneurs financially, such as Houston, Texas, which annually loans more than $35 million to women for starting and building businesses. Across the U.S. there are 100 women’s business centers supported by the U.S. Small Business Administration that also assist start-up and growing businesses through one-on-one mentoring, training programs and business counseling throughout the year. California and New York are the states with the most women business centers.

Would you consider relocating to one of the top cities that have the highest ratings for women-owned businesses? If you have started a business, do you find it beneficial to network with other women entrepreneurs?

To read more about the growing numbers of women-owned businesses and the cities leading the way, please visit the following:

http://www.entrepreneur.com/article/226559

Thanks for reading, and until next time… stay WISE!

Things You Should Know About Jumpstart Our Business Startups Act

In April 2012, President Obama and Congress passed the Jumpstart Our Business

Startups (JOBS) Act to support and encourage entrepreneurship and small businesses.
Easing federal regulations, and allowing individuals to become investors provides such encouragement. One of the important aspects of this Act is that it allows entrepreneurs to sell financial stake of the company to anyone – discounting the fact that they are accredited investors.

According to the Act, entrepreneurs are allowed to raise funds while publicly posting information about their businesses on “funding portals” and accept investments countrywide. This is not a platform that guarantees fund raising, but will leverage entrepreneurs’ efforts to raise funds.

An online campaign for fund raising is only the beginning of the process; entrepreneurs need to have compelling stories and rationales for individuals to invest in their respective startups. Connecting to potential investors on grounds that are valuable to them will prove to be beneficial.

It is crucial to understand that the platform provided by the JOBS Act can play both a positive and negative role. Entrepreneurs need to carefully analyze the possible repercussions when they upload information that would be visible to all. Additionally, entrepreneurs need to be comfortable sharing their business and personal information. This is especially important for crowdfunding, which demands complete information of your business before potential investors decide whether or not to invest.

There are different models that are adopted for crowdingfunding. It depends on the type of crowd that the business owners want to attract and kind of project that requires funding.

Donation

This platform is usually used for projects with a good cause. Investors tend to donate for moral and ethical value. In this case investors are not looking for return on investment or detailed information about the project. However, they would like to be updated regarding the progress of the project.

Rewards

This platform is typically suited for projects that are short term in nature and will not provide full reimbursement to the investors. The investors expect a small portion from the investment made. It is highly recommended that business owners immediately send out small gift once the money is received and a small portion of the profit once the project is completed as a token of appreciation.

Equity

Equity model is suitable for business owners who are willing to share 49% of their company’s share. This is a fast method to generate funds for your project. However, equity model will only suit those business owners who are comfortable sharing their business information and also the controlling power of the business. Investor expects certain amount of return on investment in this type of funding. Your project period should be around 2 or more years and business owners need to generate certain minimum number of shares with minimum liability within those two years.

To read more, please visit http://www.12crowdfund.org

Thanks for reading, and until next time… stay WISE!

Skills Needed to Rock the Entrepreneurial World

Some people may think entrepreneurs are
born, not created. However, there are several
studies and trends within the entrepreneurial community that help to identify certain personality traits/characteristics that are commonly found among entrepreneurs. Some attributes are innate, and others are learned through experience (and sometimes through failure).

Investigating the issue of entrepreneurial skills further, Inc.com write Steve Tobak profiles some traits associated with entrepreneurs—whether innate or learned over time and through experience. David K. Williams, contributor for Forbes.com, breaks down some of the personality traits associates for success as researched and compiled by the Founder Institute. The following is a short cross-section of some of the skills/traits associated with entrepreneurs.

Adaptability and flexibility

In a world of business on-the-go propelled by technology and social media, it is extremely important for entrepreneurs to be flexible and able to adapt to situations (challenges or opportunities) as they may arise. Whether a customer comment goes viral or a new competitor emerges within the market, it is imperative for entrepreneurs to handle this changing business landscape and adapt as necessary.

This can also apply to personality—such as being generally a warm/considerate person, but being able to become stern or straightforward when necessary.

Making decisions

An entrepreneur must have the ability to evaluate a situation and make a decision. Hemming and hawing back-and-forth can waste time and could give a competitor an advantage. It’s also important to make the right decisions—effective decision-making involves a combination of listening, asking questions, reasoning and evaluating.

Taking initiative

Rather than sitting around waiting for a client or the media to call, great entrepreneurs take the initiative and create projects instead of waiting for them to come about. If it’s a slow week, make phone calls or attend networking events—there is always something for an entrepreneur to do. Seek out new projects—potential clients and business partners will notice your leadership style and ability to seek (and seize) new opportunities.

What qualities/skills do you see as most important for entrepreneurs? Do you think entrepreneurship is something a person does naturally, or can some skills be learned?

To read more about “entrepreneurial DNA” and skills associated with great entrepreneurs, please visit the following:

http://www.inc.com/steve-tobak/10-skills-to-land-a-management-job.html

http://www.forbes.com/sites/davidkwilliams/2013/03/01/do-you-have-entrepreneurial-dna-a-test-to-help-you-decide-article-and-infographic/

Thanks for reading, and until next time… stay WISE!

Organizing Your Mind (hint: it involves less multitasking)

For many entrepreneurs and small business
owners/employees, it may feel like all you’re doing is multitasking and working on many different projects all at once. With the business world at our fingertips every second through our phones and tablets, it can be easy to get caught up in the world of trying to do too many things at one time. One of the strengths that used to be seen frequently on a resume was the ‘ability to multitask’ but has since shifted to really be the ‘ability to prioritize’ and complete tasks in a timely, organized fashion. Taking on too many things at once can begin to affect the brain, so it’s important to step back and stay organized.

Author of Organize Your Mind, Organize Your Life and executive wellness coach Margaret Moore weighs in on the conversation and shares some of the mistakes that can happen when entrepreneurs take on too many things concurrently and some rules to follow to avoid overload.

Handle your emotional frenzy

Moore notes that it is important to be in control of your emotions. If you’re feeling stressed out, you should rest and recharge so that you can be ready to take on even more challenging projects and tasks. Ways to do this can range from exercising your body to mindful practice and just sitting down without your phone or TV on and experiencing a calm and quiet atmosphere.

Maintain focus

Remember to think about the task/goal at hand and stay connected to it by giving it your full attention. If you’re easily distracted by your phone or email, turn them off to help stay focused. Try to complete one task and a time and focus your mind on only that task at hand.

Inevitably, a distraction will come along—be ready to ‘hit the brakes’ and re-evaluate your attention. If this new task takes precedence over the original task at hand, you may need to shift gears and re-focus attention. If it’s not an urgent matter, set it aside and continue to work on the immediate task at hand.

Be ready to shift gears

In order to achieve an organized mind and foster creativity, it is helpful to be able to have not only a functional memory, but the ability to shift gears and be mentally flexible. It’s not always beneficial to focus your mind on a singular, linear path—being able to allow your mind to leap (or even seek out distractions) can be helpful for generating new ideas.

If you have any tips for staying organized or how to avoid overloading yourself by multitasking, please share your story/tips with us.

To read more about the various downfalls of multitasking (and how to stay productive), check out Margaret Moore’s book Organize Your Mind, Organize Your Life (2011) or visit the original blog post:

http://psychcentral.com/blog/archives/2011/12/21/cultivating-an-organized-mind-in-a-sea-of-distractions/

Thanks for reading, and until next time… stay WISE!

Easy Ways to Test Feasibility of Your Business Idea

Testing the feasibility of a business idea can help you to begin to determine the strong (or weak) components of the concept and will assist you in examining how you could make it better or more relevant to the market. To avoid frustration and economic tension, it is essential to test the idea’s feasibility before you get started working on the product/service.

At times, business owners fail to separate themselves from the targeted customer base. Entrepreneur.com’s Jane Porter and outlines some of the important techniques and questions that will help an entrepreneur test the viability of the business idea.

Product/Service evaluation

Understanding the purpose of the product or service provided is important to assess consumer behavior and purchasing habit. If a similar product exists in the market, differentiating your product in terms of purpose and target audience will prove to be beneficial.

Who is your customer base?

Identifying the potential customer for the product or service is a key factor to understand the profitability of your business. If an idea is ideal for you, it doesn’t necessarily mean that it would work for customers. It is crucial to understand customer needs, requirements and expectations from the standpoint of a customer rather than business owner’s perception as a customer.

What resources do you need?

Converting an idea to a legitimate business takes a lot of effort and the use of many resources. In order to determine exactly what resources are essential and their associated costs, make a list of key assets you will need, from manufacturing/production to office space. This will help you to estimate investment cost and thus, comparative feasibility.

Who do you need on your team?

In the very initial stages of your business, you’ll want to also find a mentor or adviser who will give you honest advice about your idea. An honest, reliable adviser is one of the most important components of a business team.

Although many entrepreneurs start off working solo and doing the job of chief-everything-officer, it is not really possible to excel in every single aspect of business. This generates a need to hire employees or work with strategic partners to help with different facets of the business in which they specialize.

How much growth potential will the business have?

Every business idea has different growth potential depending on the kind of product or service available in the market and can differ from industries to sectors. Think about how big you would like the business to be and whether or not you’re selling your time or a product. It can be difficult to grow quickly if you’re hand-crafting items or writing software. Identifying the potential growth rate would allow business owner to get an insight on ROI as well the feasibility of the business in terms of revenue generation.

To learn about additional questions you should ask yourself when testing a new business idea, please visit:

http://www.entrepreneur.com/article/225514

Thanks for reading, and until next time… stay WISE!