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Opinion Editorials

Starting a business when you’re broke (and how to make it work)

(EDITORIAL) If money isn’t always a prerequisite to entrepreneurship, how can you start something from nothing?

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starting a business

Breaking into the business world can be an intimidating venture, especially if you don’t have the money or experience to back up your ambitions. Experience, however, can be earned – or at least approached through a “fake it until you make it” style approach. But what can you do if you dream of launching a business but you don’t have the cash? Is money a prerequisite to entrepreneurship?

Money helps but isn’t a requirement for those hoping to start their own business – you simply need to get creative. If you’re not sure where to start, here are a few things to consider.

One of the best ways to build your confidence around the topic of entrepreneurship is to refocus your attention towards those who also started from nothing, but have since made it big.

Steve Jobs started out tinkering in his garage as a teenager and went on to found the tech giant Apple, while multimillionaire consultant Sam Ovens publically discusses his finances – he was broke just a few years ago but had made over $10 million dollars by the time he turned 26.

Such stories attest to the fact that anyone can ascend to great heights.

Even though many people think money is the most important part of any business endeavor, successful people will tell you that true self-understanding far outranks cash on the list of necessities. Take some time to reflect on your goals and on how you view yourself as you pursue them.

If you think you can’t achieve your goals, then you won’t be able to. The mind is a very powerful thing.

If introspection reveals that you’re low on self-esteem, work on improving your view of yourself and begin developing a more positive perspective. You may find it helpful to write down what you think and then revise this description, working all the time to internalize this improved view of yourself. Though it may seem like a pointless process at first, you’re actually participating in your own transformation.

Another key determinant of success that far surpasses money is passion.

People succeed when they pursue goals that matter to them on a deeper level.

Typically this is the case because passion leads you to accumulate expertise on your chosen topic, and this will draw people to you.

One incredible example of the transformation of passion into profit is 17-year-old Jonah, who makes thousands of dollars a month selling watches online. Jonah comes from a family of jewelers, so he had ready access to the necessary knowledge and cultivated an outstanding selection of timepieces on his site, but it was his ability to combine his material knowledge with real understanding of his customers that made his business successful.

At the end of the day, he wanted his customers to have the perfect watch, and he brought his own passion for the field to bear on creating that experience.

Finally, if you hope to start a business but don’t have any cash resources, the best thing you can do is learn your field and network with those in it – without bringing them on board as professional partners.

It helps to have contacts, but you can’t grow a fledgling business by paying others to do the hard work.

Hunker down and work from home, working at night if you have to keep your current job, and start from the position of humble aspirant. If you show you’re committed to the real work of starting a business, you’ll find that others support you.

If you hope to start a business, but don’t have the money, don’t despair – but also don’t put your dream on hold. The only way to build the foundation you need to live that dream is by doing the hard work in the here and now.

Lots of people started just where you are, but the true successes are the ones who had the courage to push past the barriers without worrying about the financial details. You already have what you need, and that’s the passion for innovation.

Larry Alton is an independent business consultant specializing in social media trends, business, and entrepreneurship. When he's not consulting, glued to a headset, he's working on one of his many business projects. Follow him on Twitter and LinkedIn.

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1 Comment

1 Comment

  1. Jean

    August 8, 2019 at 7:02 pm

    Sounds great but I want to start a food business and I am not 109 % sure how to do it. I know I have to have a business plan. And that’s it.

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Opinion Editorials

The actual reasons people choose to work at startups

(EDITORIAL) Startups have a lot going for them, environment, communication, visible growth. But why else would you work for one?

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Startups meeting led by Black woman.

Startups are perpetually viewed as the quintessential millennial paradise with all of the accompanying perks: Flexible hours, in-house table tennis, and long holidays. With this reputation so massively ingrained in the popular perception of startups, is it foolish to think that their employees actually care about the work that startup companies accomplish?

Well, yes and no.

The average startup has a few benefits that traditional business models can’t touch. These benefits often include things like open communication, a relaxed social hierarchy, and proximity to the startup’s mission. That last one is especially important: While larger businesses keep several degrees of separation between their employees and their end goals, startups put the stakes out in the open, allowing employees to find personal motivation to succeed.

When employees find themselves personally fulfilled by their work, that work reaps many of the benefits in the employee’s dedication, which in turn helps the startup propagate. Many aspiring startup employees know this and are eager to “find themselves” through their work.

Nevertheless, the allure of your average startup doesn’t always come from the opportunity to work on “something that matters.”

Tiffany Philippou touches on this concept by pointing out that “People come to work for you because they need money to live… [s]tartups actually offer pretty decent salaries these days.”

It’s true that many employees in their early to late twenties will likely take any available job, so assuming that your startup’s 25-and-under employee base is as committed to finding new uses for plastic as you are may be a bit naïve—indeed, this is a notion that holds true for any business, regardless of size or persuasion.

However, startup experience can color a young employee’s perception of their own self-worth. This allows them to pursue more personally tailored employment opportunities down the road—and that’s not a bad legacy to have.

Additionally, startups often offer—and even encourage—a level of personal connection and interactivity that employees simply won’t find in larger, more established workplaces. That isn’t symptomatic of startups being too laid-back or operating under loosely defined parameters. Instead, it’s a clue that work environments that facilitate personalities rather than rote productivity may stand to get more out of their employees.

Finally, your average startup has a limited number of spots, each of which has a clearly defined role and a possibility for massive growth. An employee of a startup doesn’t typically have to question their purpose in the company—it’s laid out for them; who are we to question their dedication to fulfilling it?

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Opinion Editorials

How Peloton has developed a cult-following

(OPINION EDITORIALS) How has Peloton gotten so popular? Turns out there are some clear takeaways from the bike company’s wildly successful model.

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Man riding Peloton bike with instructor pointing encouragingly during workout.

Peloton is certainly not the first company to gain a cult-like following–in the past we’ve talked about other brands with similar levels of devotion, like Crossfit and Yeti. Now, full disclosure: I’m not an exercise buff, so while I’d vaguely heard of Peloton–a company that sells stationary bikes–I had no idea it was such a big deal.

I mean, it’s not really surprising that an at-home bike that offers the option for cycling classes has grown so much during the pandemic era (a sales growth of 172% to be exact). But Peloton has been highly popular within its fanbase for years now. So, what gives? A few factors, actually.

Vertical Integration

If your company really wants to guarantee the vision and quality you’re aiming for, one of the best ways to enact it is through vertical integration, where a company owns or controls more than one part of its supply chain. Take Netflix, for example, which not only distributes media, but creates original media. Vertical integration lets companies bypass areas that are otherwise left to chance with third-party suppliers.

Peloton uses vertical integration–everything from the bike to its Wi-Fi connected tablet to the classes taught are created by Peloton. Although this may have made the bike more expensive than other at-home exercise bikes, it has also allowed Peloton to create higher quality products. And it’s worked. Many people who start on a Peloton bike comment on how the machine itself is well-built.

Takeaway: Are there any parts of your business process that you can improve in-house, rather than outsourcing?

Going Live

But with people also shelling out $40 a month for access to the training regimen Peloton provides, there’s more going on than simply high-quality craftsmanship.

Hey, plenty of cults have charismatic leaders, and Peloton is no exception. Okay, joking about the cult leader part, but really, people love their trainers. Just listen to this blogger chat about some of her favorites; people are connecting with this very human element of training. So much so that many people face blowback when suggesting they might like training without the trainers!

The trainers are only part of this puzzle though–attending live classes is a large draw. Well, as live as something can be when streamed into your house. Still, with classmate usernames and stats available while you ride, and teachers able to respond in real time to your “class,” this can simulate an in-person class without the struggle of a commute.

Takeaway: People want to see the human side of a business! Are there any ways your company could go live and provide that connection?

Getting Competitive

Pandemic aside, you can get a decent bike and workout class at an actual gym. But the folks at Peloton have one other major trick up their sleeve: Competition. Whether you’re attending a live session or catching up on a pre-recorded ride, you’re constantly competing against each other and your own records.

These leaderboards provide a constant stream of goals while you’re working out. Small accomplishments like these can help boost your dopamine, which can be the burst of good feeling you need while your legs are burning mid-workout. With this in mind, it’s no wonder why Peloton fans might be into it.

Takeaway: Is there a way to cater to your audience’s competitive side?

Conclusion

At the end of the day, of course, Peloton also has the advantage of taking a unique idea (live-streamed cycle classes built into your at-home bike) and doing it first. Plus, they just happened to be poised to succeed during a quarantine. But that doesn’t mean you can’t learn from what Peloton is doing right to build your own community of fanatics. There are plenty of people out there just waiting to get excited about a brand like yours!

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Opinion Editorials

How a simple period in your text message might be misinterpreted: Tips to improve your virtual communication

(OPINION/EDITORIAL) Text, email, and IM messages may be received differently depending on your communication style and who you’re communicating with. Here’s some ways to be more mindful.

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Black woman smiling in communication talking on phone and laptop in front of her.

Life is full of decisions, learning, hopefully some adventure, and “growth opportunities” through our careers and work. One that some of us may have never considered is how our text, email or IM communication comes across to the receiver – thus providing us a growth opportunity to take a look at our own personal communication styles.

It may have never occurred to us that others would take it a different way. After all, we know ourselves, we can hear our voices in our heads. We know when we are joking, being sarcastic, or simply making a statement. The way we communicate is built upon how we were raised, what our English teachers stressed, and even what we’ve been taught through our generational lens.

NPR put out an article recently, “Are Your Texts Passive-Aggressive? The Answer May Lie in Your Punctuation”. This article discussed what to consider in regards to your punctuation in text.

“But in text messaging — at least for younger adults — periods do more than just end a sentence: They also can set a tone.” Gretchen McCulloch, a linguist and author of the book Because Internet: Understanding the New Rules of Language, told NPR’s All Things Considered last year that when it comes to text messaging,”the period has lost its original purpose. Rather than needing a symbol to indicate the end of a sentence, you can simply hit send on your message.”

While it may seem silly that the receiver would think you are mad at them because you used a period, here are some things to consider in our virtual communication now that we are all much more digital:

  • There are no facial expressions in a text except for emojis (which, even then, could be left up to misinterpretation)
  • There’s no sound of voice or inflection to indicate tone
  • We are emailing, texting, and sending instant messages at an alarming rate now that we are not having as many in-person interactions with our colleagues

Gen Z (b. 1995 – 2015), who are the most recent generation to enter the workplace, grew up with much quicker forms of communication with their earlier access to tech. They’ve had a different speed of stimulation via YouTube videos, games, and apps. They may have never experienced the internet speed via a dial-up modem so they are used to instantaneous results.

They also have quickly adapted and evolved through their use of Facebook, Instagram, Snapchat, and now TikTok. The last two platforms are designed for pretty brief attention spans, which indicates our adaptation to fast communication.

Generational shaming is out and uncomfortable but necessary conversations around diversity, equity, and inclusion are in (which includes ageism). You can’t just chalk it up as “those kids” don’t understand you, or that they need to learn and “pay their dues”.

So if you are of an older generation and even a manager, here are some considerations that you can take regarding your virtual communications:

1. Consider having yourself and your team take a DiSC assessment.

“The DiSC® model provides a common language that people can use to better understand themselves and to adapt their behaviors with others — within a work team, a sales relationship, a leadership position, or other relationships.

DiSC profiles help you and your team:

  • Increase your self-knowledge: How you respond to conflict, what motivates you, what causes you stress, and how you solve problems
  • Improve working relationships by recognizing the communication needs of team members
  • Facilitate better teamwork and teach productive conflict
  • Develop stronger sales skills by identifying and responding to customer styles
  • Manage more effectively by understanding the dispositions and priorities of employees and team members

This quiz is designed to help you identify your main communication style. It helps you to be more conscious of how your style may come across to others. Does it builds relationships, or create silent conflicts? It doesn’t necessarily mean you have to change, but you can adapt your style to best fit your team.

2. Always ask your direct reports about their preferred method of communication (call, text, email, IM, meeting).

Retain this information and do your best to meet them where they are. It would also be helpful to share your preferred method with them and ask them to do their best to meet you where you are.

3. Consider putting composed emails in your drafts if you are fired up, frustrated, or down right angry with your team.

You may feel like you are being direct. But since tone will be lost virtually, your message may not come across the way you mean it, and it may be de-motivating to the receiver. Let it sit in drafts and come back to it a little bit later. Does your draft say all you need to say, or could it be edited to be a little less harsh? Would this be better as a meeting (whether video or phone) over a written communication? Now the receiver has a chance to see you and have a conversation rather than feeling put on blast.

And finally, be curious.

Check out Lindsey Pollak’s books or podcast on the best ways to work with a variety of generations in your organization. Lindsey is a Multigenerational Work Expert and she does a great job explaining her research to drive multigenerational workplace success. She gives ideas on what all employees, managers, and even corporations should consider as we experience so many generations and communication styles in the workplace at the same time.

You may laugh that your children or employees think you are mad at them when you use a period in a text. But there’s a lot more behind it to consider. It may take adaptation on all sides as communication styles and the “future of work” continue to evolve.

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