Managing Friction in the Workplace

A workplace needs all kinds of personalities, strengths and approaches to be successful. Unfortunately, sometimes certain traits clash and cause friction in the workplace. This is just human nature. Even the closest of families or the best of friends don’t always get along.

Although minor conflicts are to be expected, as a manager it’s your job to make sure any friction is nipped in the bud before it becomes a serious issue and impacts on the business.

Melanie Astbury, HR Manager at Office Kitten, gives her tips for minimising workplace friction:

Be aware

Not everyone who has an issue with a colleague will be confident enough to come to you. It’s your responsibility to be aware and initiate resolution.

To do this, you will need to develop a heightened awareness. Are voices being raised? Snappy comments or tones being heard? Are there any personalities that don’t seem to click as well as others?

It might also be the things you don’t hear that provide telling signs. Are there certain co-workers who don’t speak or choose not to work together? Using your discretion, either ask them directly or ask other colleagues why this is the case, to understand if there are deep seated issues that need to be addressed before they flare up.

Then ultimately you have the decide whether to take action. Are these signs of looming disaster or can you comfortably ignore them as part and parcel of office life?

Set out guidelines

It’s obviously important to encourage workers to use their initiative and try and resolve disagreements between themselves. But be warned that this can lead to further misunderstandings if not handled sensitively. That’s why it’s important to make sure you have a set of protocols in place to deal with conflict, and that everyone is aware of your company guidelines. That way everyone knows the approved way to deal with situations as they arise.

Miscommunication

Miscommunication is the most common cause of workplace conflict. Tensions rise through confusion. To limit this you should make sure each member of the team has a clearly defined role and their remit is shared with everyone in the team. This prevents any “but I thought you were responsible for this!” recriminations.

Also, if you or fellow managers are setting work, it is important you are aware of demands placed on team members from other areas of the business. This is to ensure you’re not applying unfair pressure. This is because unfair pressure leads to stress, a key tension trigger.

Creating harmony

In most workplaces it will fall to you to help build relationships that foster harmony. There are simple ways to bring colleagues together, for example a trip to the pub, charity fundraisers or a Christmas party. They needn’t cost much but are effective in encouraging staff to see each other as people rather than just colleagues. This in turn creates a sense of togetherness that translates back to the office as workmates realise their colleagues are essentially nice people and that work-based problems can be resolved if they are talked through as people on the same team.

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Entrepreneurship: Go Bold

An asteroid killed off the dinosaurs in a blink of an eye.

You will be extinct

If you are a large company, you are likely to get killed off the same way the dinosaurs went. Killed by exponential change in robotics, ICT, sensors, AI, synthetic biology, genomics, nanotechnology, 3D, infinite computing, to name but a few of the asteroids. Some of these trends going 5X as fast (biology).

Entrepreneurs will survive

The same way the mammals survived the dinosaurs, so will the entrepreneurs survive the next wave of destruction. In fact they will thrive.

Your time to make a dent

For the first time in history a committed individual can have access to the technology, the capital and the minds to make a dent in the universe. But to make a dent in the universe, you need to understand how exponential works.

Exponential

Exponential has become the new buzz word. The trend that makes everything possible. The trend that will change the world. Probably best described in “The second machine age”, but that books comes with a huge health warning. Exponential also means winners take all.

You can do it too

And now the winners have decided to jump on the band wagon and help others to win as well. It started with “From zero to one” and then “Exponential organisations” and now “Bold”. You can do it too.

6 Ds

There is no doubt that digitisation leads to disruption, to demonetisation, to dematerialisation and eventually to democratisation when it becomes available to everyone for nearly free (as predicted by Chris Anderson in his book with the same title). In between these 5 Ds is deception. You don’t see it coming and suddenly it is there. And that is the phase where most of the large companies like to stay in. For large companies the 6 Ds are the six horseman of the apocalypse.

The 6 horseman of the apocalypse

They are also the 6 horseman of the apocalypse for your job too. 80% of the jobs can be done better by computers. So you might as well accept it, poke the box and become an entrepreneur or in case of a large company, disrupt yourself out of a job.

BOLD

What do you need to do according to BOLD:

  • Learn from the old skunk works set up
  • Focus on business as unusual
  • Set high hard goals and create a higher purpose
  • Belief in what you do
  • Create a siege mentality
  • Isolate your team
  • Built for speed and for rapid iteration (if you are not embarrassed you launched too late)
  • Focus on at least 10X better (that why Google has a “captain of moonshots”) so normal assumptions are not applicable and you need to shift perspective
  • Cut ties between you and expert assumptions
  • Vocally commit so there is no way back
  • Create a family
  • Built a reputation
  • Always say yes, and……

Flow

When you strive for truly high goals you are tapping into the collective creative accelerant. If you are lucky it will result in flow, the moments of total absorption. Flow follows focus and follows clarity of goals. When goals are clear the mind does not need to wander. Entrepreneurs are more likely to achieve flow for those reasons. Novelty, unpredictability and complexity all add to this as well. So does passion. And finally a high challenge/skill ratio. Entrepreneurship is the ultimate computer game. And flow, particularly collectively becomes a critical success factor.

Golden rules

The authors then shares some of their gold rules. I am sure they mean well, but here they are and they are as glib as the “Create your own monopoly” from “Zero to one” by Peter Thiel.

  • If anything can go wrong, fix it! (To hell with Murphy!)
  • When given a choice—take both!
  • Multiple projects lead to multiple successes
  • Start at the top, then work your way up.
  • Do it by the book . . . but be the author!
  • When forced to compromise, ask for more.
  • If you can’t win, change the rules.
  • If you can’t change the rules, then ignore them.
  • Perfection is not optional.
  • When faced without a challenge—make one.
  • No simply means begin one level higher.
  • Don’t walk when you can run.
  • When in doubt: THINK!.
  • Patience is a virtue, but persistence to the point of success is a blessing.
  • The squeaky wheel gets replaced.
  • The faster you move, the slower time passes, the longer you live.
  • The best way to predict the future is to create it yourself!
  • The ratio of something to nothing is infinite.
  • You get what you incentivise.
  • If you think it is impossible, then it is for you.
  • An expert is someone who can tell you exactly how something can’t be done.
  • The day before something is a breakthrough, it’s a crazy idea.
  • If it was easy, it would have been done already.
  • Without a target you’ll miss it every time.
  • Fail early, fail often, fail forward!
  • If you can’t measure it, you can’t improve it.
  • The world’s most precious resource is the persistent and passionate human mind.
  • Bureaucracy is an obstacle to be conquered with persistence, confidence, and a bulldozer when necessary

Musk, Bezos, Branson, Page

It then takes some further lessons from Elon Musk, Richard Branson, Jeff Bezos and Larry Page. Passion, first principles, having fun, experiment, protect the downside, don’t leave it on the table, you need to go all in and radical customer centrism. Disregard the impossible. Being negative is not a way to make progress. Experiment. Fail.

Ask the question “What is NOT going to change?” Ask whether you are missionary or a mercenary? Ask “Why not?” and “Why not bigger?” Apply the tooth brush test.

Are you wasting your time

Are you working on something that is changing the world? If you are not, according to BOLD, you are wasting your life. 99.99999% of us are in that mode at the moment. Are you making a dent in the universe?

All building blocks are there

Once you have established that as a principle, the authors argue that all the building blocks are in place to allow you to do it. You have 5 billion people to have a collective conversation with, access to trillions of free hours and access to the best minds. The crowds are there (fiverr, Freelancer, Tongal, 99designs, Gigwalk, Topsider, uTest, Topcoder) the funding is there (Kiva, Kickstarter) and the technology platforms (Amazon, Google, Techshop, Etsy) are there for you to do anything you want. There are even the competitions to point you in the right direction (Xchallenge, Netflix, Qualcomm).

Do it

The only thing stopping you is you. Instigation capital. The just DO IT. If the purpose is transformative and interesting enough, others will follow and you will become a movement. Together you will start solving the big problems in the world. You will be expressing your creativity and passion and you will access the (collective flow). You will be happy. You will make a difference.

Taleb, Godin, Priestly, Robinson, Gratton, Kelly

And although it is highly unlikely you will become the next Elon Musk, it does confirm everything that Ken Robinson (The Element), Seth Godin (Poke the box), Nicolas Taleb (Antifragile), Jason Priestly (The entrepreneur revolution), Linda Gratton (The Shift), Kevin Kelly (Do it!) and many others are saying.

Entrepreneurship is the future. Tell us what you think. Tweet @smallBC, use #gobold

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The Gig Economy:To Gig Or Not To Gig?

Entrepreneur Anonymous

I had the pleasure of moderating a panel session at entrepreneur anonymous about the gig economy. So I did some research. The USA, UK and Dutch figures are very interesting.

Figures USA

In the USA the number of free lancers is 53 million. That is 34% of the USA labour market. Intuit estimates that this proportion will grow to some 40% by 2020. A 2015 survey of over 1,000 American workers noted that about 60% received 25% or more of their income from freelance work. It is a $715 billion market in the USA.

Figures UK

There are 1.4 million British freelancers working across all sectors. This has grown 14% in the past decade. It is a £ 21 billion market in the UK. Apparently 50% of people in the UK want to start their own business. Only 1 in 20 do. Which I think is tragic.

Holland

In Holland, the revenue commissioners only defined “freelancers” in the 80s. In 1988 there were 1800 of them. Now it is a 1.1 million and growing. That is 1 in 6 of the total Dutch labour market. In the 90s it was 1 in 17.

Jobshift

In 1994 William Bridges wrote “Jobshift” and predicted fundamental shift in the labour market. He talked about the cake layer model of the labour market, with a winner takes all at the top and the rest serving the top earners. He has not been far off.

The future is entrepreneurship

In my view there is no question that the labour market is shifting. And that the future is entrepreneurship. As an entrepreneur on the labour market or as entrepreneur running their own business. The reasons I belief that is because of “Jobshift”, but also books such as Lynda Graton’s “Shift” and the must read “Antifragile”

Job security does no longer exist

Company life cycles are getting shorter and shorter. Professor Richard Foster estimates that by 2020 more than three-quarters of the Fortune 500 will be companies that we have not heard of yet. Which suggest that job security does no longer exist, that we are all becoming portfolio workers and will be forced to change jobs on an ongoing basis.

Skynet is near

“The second machine age”  predicts that 70% of all current jobs will disappear an that robots and IBM’s Watson will take over. Skynet is near and job security is an illusion.

Pension as an argument?

You will also live longer. If you belief in exponential change in health and technology, we all live to be far over a hundred. That is a long career and it will fundamentally change the current pension system. It will collapse. In my view the “security” of a pension is also an illusion.

Your choice

The choice is whether you decide to be in control of your own destiny, or have a someone else (your manager) decide your faith. My belief is with Ken Robinson, Seth Godin and Chuck Blakeman

Build a long term family business

Entrepreneurship, following your passion and your heart and building a sustainable business. And if you are smart you examine the German way of doing business and you create a family business that creates multi-generational long term wealth.

Lots of questions

It raises a lot of questions. The definitions of gigger, freelancer and entrepreneur. I am not sure if they are the same thing. Is it for everybody? Will you have a choice? What about job security? Getting a mortgage? Your retirement? Your ongoing professional development? Stress, your health and dealing with financial insecurity?

I Belief

I belief (I am ware I have used “belief” already 3 times and yes, for me entrepreneurship is a religion):

  • That financial institutions will respond to this a € 660 billion market opportunity in USA and UK alone (look at what RBS is doing with ESPark and that is just the beginning).
  • That the sharing economy will make it easier to sweat personal assets in so many ways, that we will all become at least giggers and have income streams on the side.
  • That the gig, freelance economy will grow faster then most of us expect.
  • That a race to the bottom is a real threat.
  • That is could create a winner takes all society.

Which is why I think/belief that basic income will become a reality.

The only question

The only question is how far you will push this, how secure you think you are at the moment (NOT) and how much control you want to take of your own destiny. At entrepreneurs anonymous I pontificated that I regard myself as a failed parent if my children (Alice and Luca) do not become entrepreneurs.

What do you think?

I am really interested in your views. Tweet us @smallBC using #entreligion

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5 Personal Finance Books to Add to Your Reading List

What have you been reading this summer? Every person reading this post likely has a different answer. Some prefer lightweight reads in the summer months such as young adult fiction or romance novels. Other prefers historical fiction, political satire, or biographies. Maybe sci-fi and fantasy are more your speed. Whatever you have been reading, hopefully you’ve enjoyed it.

Now, let’s talk about a few books you should be reading as your autumn closes out. When it comes to personal finance books, everybody could use a little bit more information, and a little more education. Whether the authors are giving advice on saving money, living on a budget, or investing, books on personal finance are great additions to anybody’s summer reading list.

This is why we have put together this list of 5 books on personal finance that you should read before the weather turns cold.

Women and Money – Suze Orman

Suze Orman has provided insightful financial advice to people for decades. She continues this pattern with “Women and Money”. Suze Orman recognizes that when it comes to money women need both education and empowerment. This book includes a 5 month program that helps women establish financial independence and personal freedom. Many books provide a lot of heady, high level information.

Ms. Orman takes a more practical and relatable approach providing women with specific steps that they can take towards improving their financial situations.

Why didn’t they Teach me this in School: 99 Personal Money Management Principles to Live – Cary Siegal

Cary Siegal wrote this book upon realizing that his children and their peers would graduate from high school and college without any formal, personal finance education. In spite of covering 99 principles, this book is quite easy to read and the lessons are conveniently parsed out.

This book targets young adults, but there is valuable advice here for any age group.

The Success Principles: How to get from where you are to where you want to be – Jack Canfield and Janet Switzer

Do you have plans and life goals that you have yet to achieve? Maybe you would like to start a business or go back to college. Whatever your plans are, it can be easy to feel stuck where you are, and getting to a place where you have achieved your goals can seem impossible.

This book is a goal-oriented book that gives financial advice that relates to conquering your next challenge. The authors include daily action steps, ways to increase your confidence levels, and practical advice on living in the modern age.

Rich Dad Poor Dad – Robert Kiyosaki

Rich Dad Poor Dad is a book about money lessons learned from two different men and the influence those lessons had on the author. The lessons he learned from the rich dad in the novel gave the author the opportunity to retire before the age of 50. In this book, he passes that knowledge on to others.

Many readers will be surprised to find that what they have been taught about money is completely off base.

Total Money Makeover – Dave Ramsey

Dave Ramsey is a well-known author, financial guru, and a nationally syndicated radio talk show host. Ramsey has a very easy to read writing style, and provides a lot of great practical advice to his readers.

The best endorsement of Ramsey’s is advice is simply the success that his readers and listeners have achieved by following his advice. Many are put off by Ramsey’s tendency to be extreme in his rhetoric, and that is a valid criticism. However, if that can be ignored in favor of focusing on just his financial advice, readers can learn a lot.

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Beating Distraction at Work: Top 7 Tips for Staying Super Focused

Have you been feeling uninspired at work lately?

Are you finding it arduous to meet the tasks at hand effectively?

Five minutes of distraction and bam! You are left with no idea about where you left off. There goes your productivity down the drain. When you look at your colleagues, you can’t help but wonder how they get so much work done in one day.

According to research, nearly 50% of American employees work only 15 minutes before becoming distracted at the office, while 53% report wasting an hour or more a day because of disruptions.

From constant background noises and overflowing inboxes to feeling exhausted and overloaded – these are just a few of the things that can cause people to lose focus.

However, you can work on staying more productive and getting most out of each day.

Wondering, how to go about it?

Here are a few ways that can help you stay sharp and focused at work.

1. Declutter and Get Organized

Organize your work desk in order to be more focused and flow in the zone.

That family photograph or the box of chocolates can be big distractions and muddle your focus at work. Don’t let these visual distractions divert your attention. Have only what’s necessary on your desk such as your laptop, work diary and other essentials. Don’t forget your water bottle.

Moreover, make sure to neatly pile them on your desk and ensure that they are within your arm’s reach.

2. Break down Big Tasks into Manageable Chunks

A scientific fact suggests that the human brain can only be attentive on a limited amount of information, for a limited period of time.

Handling a huge project can be overwhelming and difficult. ‘Work till you drop’ shouldn’t be the mantra to follow here. In fact, the smartest thing to do would be to plan first, develop strategies and split up the project into small chunks. This way you will be able to accomplish your tasks effectively and on time.

For instance, let’s say you are an agency named Charlotte Web Design and you provide a myriad of web design services. If you’re planning to work on the content of your website, then first plan and list the subjects you plan to write on. Avoid doing everything simultaneously. Go step-by-step.

3. Schedule Email Check and Social Media Sites

According to a survey, 60% of disruptions are caused due to disturbances from cell phones, emails, and social networks. It is best to limit your use of social media sites when at work, lest you should end up thinking about futile matters. Moreover, staying away from them will provide you uninterrupted time to work efficiently.

You’ll be able to remove a majority of distractions by scheduling your email check and use of social media websites. You will, therefore, be able to accomplish your goals sooner than you may have expected.

4. Make To-Do Lists

So, what are the things that need to be accomplished today?

Ask yourself this question before you begin to work and make a to-do list. This way you will be able to stay on track through the day and won’t end up wasting your time figuring out your tasks. A to-do list will provide you with more clarity on your routine tasks.

Ensure to work on the most difficult and challenging tasks during the first-half of the day as that is the period when one feels relatively fresh and energetic.

5. Take Small Breaks and Prevent Procrastination

Of course, you don’t want your brain to burn out. It makes sense to take small breaks between your tasks. Taking more breaks is synonymous with being more productive. However, this doesn’t mean you spend a major chunk of time taking breaks.

Wondering how taking small and quick breaks can help you?

Breaks tend to allow us to regroup our thoughts and focus our attention on the task at hand. Moreover, they help freshen up our mind.

Also, it’s important that you work on one task for a specific period of time. Assign deadlines to the tasks. They will help you stay motivated and focused on your tasks. Moreover, this way you won’t procrastinate, thereby keeping the project humming.

6. Use Technology to Your Advantage

Using social media sites frequently can hinder productivity to a huge extent. However, in several cases where the right technology and software is used, it can work the other way round.

Collaborating technologies like Yammer and Jive Software and communication services such as Skype and Google Hangouts can help you solve problems and complete projects at a relatively rapid pace. To-do list applications such as Evernote and Wunderlist can help you jot down tasks and prioritize them based on your required criteria.

Make sure to use the right software and applications to boost your productivity.

7. Put on Headphones and Get Some Coffee

Continuous and loud background noises at work can make your mind wander. In order to prevent this, consider listening to music while working. Good music can help you stay focussed, motivated and help you sustain your focus through the day. However, make sure that you choose the kind of music that will help increase your output and doesn’t work the other way round.

Want to know another way to increase your alertness at work?

Coffee can be your answer. A little burst of caffeine can amp up your productivity to a great extent.

Conclusion

It is common to be surrounded by a plethora of events and people throughout the day at work. This can, however, distract you and make you lose focus from the task at hand. By following the above-mentioned tips, you will be able to keep distraction at bay and stay productive all day long. It is important for you to be passionate about your work, know your priorities and stick to them. So, what are you waiting for? Implement the above tips in your daily routine, prevent slacking off, and stay super focused.

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Social Selling: Generate More Sales using Social Media

Of course selling has always been social but technology has now led to different behaviours on the part of buyers and sellers. Sellers who effectively use social media now outperform other sales professionals and much of today’s buying process is completed before the buyer completes the purchase.

Social Selling, Generate more Sales using Social Media 2

Mespil Academy is delighted to announce a special half-day’s training session facilitated by International Social Media trainer, Greg Fry, on how to generate more sales using social media.

Topics covered will include:

  • Using advanced searching techniques to identify leads
  • Creating content to attract customers
  • Building a social sales funnel
  • Ensuring customers become sales advocates
  • Using personal branding to establish your reputation

Grey delivers regular social media training and workshops, and has worked for the likes of Ulster Bank, Microsoft, Fáilte Ireland, UPC, Abbott Labs, Symantec, Coca Cola, the Digital Marketing Institute and the Digital Skills Academy.

Greg will be joined on the day by some special guests and industry leaders who will take part in a breakfast discussion on using social media for sales.

This is the second live training event run by Grey and Mespil Academy. Earlier this year, they ran an event on social media strategy. The following video gives an overview of what happened at that training day and what to expect from the next event: ‘Social Selling: Generate More Sales using Social Media’.

Tickets can be purchased online for a special early bird price of €99 and the event takes place on the 20th of October at the Chartered Accountants House, Dublin 2.

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5 Recruiting Trends Of 2015

The way companies recruit is constantly changing depending on the technology available and the state of the economy. Furthermore finding good talent can be very time consuming and expensive. Understandably improving your recruiting process is often an overlooked area of concern as business owners often have “bigger fish to fry” so to speak.

But recruiting may be eating up more time and money than you realize. By leveraging new platforms, websites and tools you can find better leads on better recruits faster and cheaper. Since generally this is what all recruiters want, most trends in 2015 are focused on just that.

Also most recent trends address the need of companies to have a more human connection with candidates that could potentially live all over the world. The ironic thing is that they are doing this through social media and other forms of technology.

Whether you believe these trends are leading recruiters in the right direction or not, it is a good idea to keep an eye on the competition

Improved Applicant Tracking Software

Those fill-in-the blank forms can get annoying, but large companies need a computerized system to keep the application process organized. However, companies are seeking to improve the software they use to make it more convenient for applicants, and are expanding these tools to manage the entire recruiting process from start to finish and help improve the candidate experience.


There are many Saas companies that focus specifically on platforms that improve the recruiting process. Investing in research about these companies may result in a platform that is a perfect for your business. However, you don’t have to look only at recruitment specific software to find a solution. Many companies are utilizing one of the top CRM’s they may already have in use or are looking at using and using it to double as an internal relationship manager as well. Surprisingly many companies are finding that the functionality to manage sales leads naturally works just as well for recruiting. If you have a sales department, you can kill two birds with one stone with a CRM solution.

A Positive Candidate Experience

Making it incredibly difficult to apply for a job, failing to respond to queries, not sticking to promised deadlines and treating candidates with disrespect during the interview process damages a company’s brand. Not only that, but it prevents the top candidates that they are trying to attract from seeking a job with the company, and could even offend potential customers or allies further down the road. Companies need to constantly reevaluate the hiring process to see how the candidate’s experience can be improved.

Sourcing through Social

Social media is no longer new, especially when it comes to using LinkedIn. And lets be real, LinkedIn is heavily spammed and not near as effective as it once was.

However, new tools have started to come out to help companies refine their social media searches. These tools include Entelo, TalentBin and Gild, among others. Entelo helps recruiters to discover top talent that may be considering a move but hasn’t popped up on the regular radar yet. It also contains a huge database of profiles and contact information along with a filtering tool.

Most have free offerings with the option of premium pricing plans if you are a heavy recruiter.

Social Talent Networks

Of course, social media is useful for much more than just finding email addresses. Many companies have started creating talent networks that include everything from potential job candidates and clients, to fans of the company. These networks are great way to promote a company’s employment brand, so more talent comes to the company, rather than forcing the company to go out and find it. Businesses have even sprung up to help companies create these networks.

You can buy lists from existing networks, or simply begin creating your own internal database of people in networks you recruit from.

New Assessment Science

Personality and other assessment tests have been around for ages, but there has been a recent surge in assessment software. Many newer companies use cloud computing and big data to offer something new to this space.

Evolv offers tools that utilize big data to scour through huge databases of potential hires, and analyze the employee life-cycle to help reduce employee turnover rates.

Logi-Serve is another company entering this arena that offers analytics to predict a candidate’s performance in key business areas. There are literally hundreds of these services popping up, so businesses would do well to take a good look at this growing market.

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7 Things a VC Looks for in a Startup

With the number of startups mushrooming all over the world, one would think that investors are just dying to give away money to new business ventures. Take the case of unicorn startups for instance. Once an unheard of phenomenon (hence the name unicorn startups), these are startup firms that are valued at $1 billion or more. Business Insider Australia reports that a new unicorn startup was born every week in 2015. At the time of writing this piece, there are 124 unicorn startups worldwide, with a combined valuation of $ 468 billion.

All of these numbers probably excite a wannabe entrepreneur and spark the hope that their new venture has what it takes to become the next big unicorn. Unfortunately, it’s not as easy as it looks.

Securing venture capital funding is serious business. Venture capitalists get hundreds of business proposals a week. Of these just a handful even get considered for an initial pitch presentation. So what do these VCs look for in the firms that they shortlist? Here’s some insight.

Solid Business Idea

Go to a VC with a plan to build human colonies on Mars, and chances are you’ll not even be called in to present your thoughts. That does not mean VCs don’t invest in innovative new ideas or cutting edge technology. They do. However, the chances of securing funding are exponentially higher if you are a real business with a real revenue model and a clear path to market.

Your business should be differentiated enough from competition, with a clear USP that makes it attractive to investors.

Strong Leadership Team

Just as “Clothes maketh the man,” a leadership team that knows the business inside out is a bare minimum requirement for any aspiring startup. Venture capital firms essentially give out large sums of money in the hope that your business will keep growing and eventually bring extremely profitable returns. Most VCs don’t involve themselves in the day to day workings of the companies they invest in. Instead they depend on a sound management team to steer the companies in the right direction.

Therefore, having a leadership team that understands the technology behind the business, has the right network of contacts, manages employees beautifully and most importantly, gets along well with each other is a pre-requisite of serious VC funding.

Steady Cash Flow

Just about 1% of all businesses that approach VCs for funding end up getting any money at all. With a failure rate of 99%, it’s vital that you do everything in your power to ensure that your startup does not get the thumbs down in the cut-throat arena of venture capital funding.

A good way to ensure that is by approaching VCs only once you have established a clear revenue model and a steady cash flow to support it. When a venture capitalist sees that your startup is not just another whacky plan, but a living, thriving business, the chances of you receiving a favorable ear are far stronger than otherwise.

Flexibility

A surprisingly large number of businesses that are successful today did not start out doing what they do now. Did you know that YouTube began life as a video dating site? Or that Twitter was not originally a microblogging behemoth, but actually supposed to be a podcast discovery and delivery platform?

A huge reason behind the smashing success that these companies saw was thanks to the fact that they were flexible enough to change course radically when things got tough. I don’t mean that you must bail and move on to something else at the first opportunity, but what you do need is an inherent openness to try new product lines, alternate routes to market or even a major tweak in your core product.

Scalability

A business is investment-worthy from a venture capital perspective when it is in a constant state of growth and has a visible long upward trajectory ahead of it.

Suppose you have a super successful blog – something that rivals say, TechCrunch. A definite way of growing investor interest in your publishing website is by indicating to them how easily you can turn a key and expand into becoming an e-commerce site. A scalable business that can be expanded to newer markets, product lines or distribution channels offers a venture capitalist hope that their investment will not easily result in a crash and burn situation.

Market Potential

We spoke of scalability of the business earlier. However, no matter how scalable a business may be, if the market it operates in is limited, there is very little hope that a venture capitalist will even touch it with a barge pole. Things like a large, growing industry, a favorable geographic location, high entry barriers to competitors are all positive indicators for a company with strong market potential.

Another important aspect to consider is the regulatory environment of the industry your startup operates in. Businesses that operate in extremely controlled industry segments with a high degree of government oversight (e.g. defense manufacturing, tobacco, pharmaceuticals) stand to have a tough road ahead in terms of VC willingness to invest.

Financial Attractiveness

This is probably the most important factor that sways a venture capital firm into investing in a startup. A business that has a proven track record and a strong projected growth rate is a tempting investment avenue for a VC.

Besides generating revenues, other financial indicators that help your case include having few existing investors, a low debt to equity ratio and a P&L statement that has already broken even. A clear and credible timeline that charts out the expected returns on the VC’s investment is a must to ensure your business has a fighting chance.

Wrapping Up

Starting a new business is pretty simple today. From registering the business to finding the right talent, everything is just a click away. As an entrepreneur seeking VC funding, your job is to make sure that you not only make use of the abundant resources at your disposal, but also package your business pitch in such a way that it stands head and shoulder above those of competing firms that enjoy the same advantages.

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A Startup’s Guide to Business Insurance

You’ve finally reached the end of the grueling journey in creating your first startup. We know the feeling, and we know how good it must feel to be here at the end. But before you start celebrating we need to cover a very important to do. Insurance. Your business needs it. After a grueling process of forming your company, you might have forgotten that you could lose all that hard work in the blink of an eye if you go forward without checking for the proper business insurance quotes. Below you will find business insurance tips that will help your startup stay safe and profitable for years to come.

Key Person Insurance

As a business owner, many people depend on you. Customers and employees alike look to you for leadership and guidance. Your company could suffer if you die without a mechanism in place to replace your expertise. If you have key person insurance, you have the assurance that your business has the means to continue if you or your key employee dies.

Upon death, key person insurance pays a sum to the company that will help the company recruit and train a replacement that can fill the shoes the death empties. When you buy this insurance, your key people will know how much you value them, building a cohesive team that will loyally work to achieve your goals. Vendors and banks also like to know you have key person insurance because it improves the chances your company will pay bills after your demise.

Directors and Officers Professional Liability Insurance

If you formed a corporation, you might need to buy directors and officers professional liability insurance. If you hold a board position, if your board of trustees makes controversial decisions, or if your products or services have the potential of harming people or property, people can sue your business for damages. When you have this type of insurance, your insurer will pay for claims made against you. With so many people in our society looking for ways to gain wealth through litigation, you cannot afford to go without this type of insurance.

General Liability Insurance

Regardless of where your business operates, its facilities represent a potential liability that could destroy it. General liability insurance provides coverage if someone gets hurt while on your premises or if a fire or natural disaster destroys your business property. According to personal injury attorneys, in cases of premises liability, a judge and jury look at several factors when determining if the injured person should receive a settlement, but ultimately a property owner is legally liable for injuries suffered by others on their premises. Your insurance will also cover problems resulting from false advertising, copyright infringement, and other acts that hurt others without bodily injury. You could incur substantial legal and medical costs if one person gets hurt on your business property. So buy insurance with the optional coverage you need to protect your firm.

Workers Compensation Insurance

If an employee gets hurt while working for your company, you could be liable for thousands of dollars of medical expenses. Workers compensation insurance makes sure your employees get the care they need for job-related injuries while protecting you and your company from liability. Laws and regulations where your business operates might mandate that you buy workers compensation insurance. As you shop, keep applicable requirements in mind to make sure you buy coverage that meets your legal and business requirements.

Business insurance for your startup can help your company survive lawsuits, accidents, deaths and other routine occurrences. Although you might face the temptation to avoid buying insurance to save money, the reasonable costs associated with business insurance makes it worthwhile in the end. So don’t think you’re cutting any corners by not getting insurance. What you will be doing is creating more of a headache later on down the road if you skip this very important step.

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Six Of The Most Unique And Effective Ways To Encourage Team Building In Your Business

Team building is the process of turning your team members into a cohesive unit capable of collaborating to achieve a shared goal and overcome difficult challenges. Encouraging team building thus becomes a critical goal for business owners and CEOs. Here are six unique and effective strategies for sparking that team building spirit.

Implement Regular Team Meetings

Make this a prerequisite at work, but make sure not to overdo it as staff members also need time off from their work environment. A weekly or biweekly meeting is common, but may be adjusted to fit the varying schedules of employees. During team meetings, make sure to foster an atmosphere that encourages open communication. You can serve as an example by listening to employee opinions and concerns.
Hold Social Gatherings

It doesn’t have to be a fancy field trip to a luxury resort or a party at a 5-star hotel’s rooftop. Once a week, you can order pizza or organize a potluck dinner. This is a great way for employees to decompress and at the same time get to know their coworkers better. This further promotes the feeling of openness within the workforce. Because they know each other better, employees won’t be afraid to throw in ideas and contribute to future projects.

Facilitate Exercises

Choosing the right team building exercise is just as important as enforcing it. A good example of an exercise that encourages team building is pairing your employees into groups and then letting them know eachother’s strengths and weaknesses. The activity should have a positive effect, whether it is to increase trust between coworkers or draw out the potential in each of them.

Sign Up For A Room Escape

Houdini’s Room Escape is a one-of-a-kind experience that can help develop a team’s ability to identify and solve challenges. Different escape rooms offer their own unique challenges, from decoding secret messages hidden in files to searching high and low for tools to unlock the next step. This is a fun way to get employees to build trust and learn to use eachother’s strengths.

Set a Time Limit For Team Projects

Having a time limit for making decisions encourages groups to work together to come up with the best possible outcome before the clock runs out. If you let them work on projects individually and without any time restrictions, they will likely turn to Google or some other online source for help.

Delegate Challenging Tasks

If you delegate easy tasks every time, your employees won’t have a reason to collaborate with coworkers for advice and feedback. Giving them challenges outside of their comfort zone also encourages them to take alternate roles and hone the areas where they are weak.

Use these six unique yet effective approaches for encouraging team building within the organization. Not only does this benefit each employee’s growth but also your entire brand as well.

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