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4 things to remember when things look bad for you as an entrepreneur

(EDITORIAL) We obsess about successful entrepreneurs but don’t always see the struggles it took to get to that point. If you’re struggling as an entrepreneur, let this editorial encourage you and give you an honest perspective.

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The American fairy tale of entrepreneurialism

We love a good success story just like the next guy. We love tales of triumph, of someone winning against all odds, and today, the American fairy tale of entrepreneurialism is one that has captured the minds of screenwriters, musicians, and Instagrammers alike. We worship the Zuckerbergs of the world who went from no one to bajillionaire in a short period of time as their lines of code changed how the entire world communicates.

But in that idol worship, we focus on that moment of success and don’t see the tales of failures hovering just below the surface. Every entrepreneur can tell you about the overwhelming nature of those struggles and failed moments, and they can all tell you about the crushing pressure that exists before the dawn of success.

So what should every hopeful, budding, or veteran entrepreneur keep in mind? We asked Victorio Pellicano, Founder and CEO of Verenia for his thoughts on the topic, on overcoming the difficulties of entrepreneurship. He earned his BS in Computer Science from the University of St. Francis, which he followed up with a law degree from Loyola University Chicago School of Law. He worked as a software engineer and soon founded Verenia which is a popular CPQ company (“Configure, Price, Quote” is software that accurately prices goods as endless variables change constantly).

Although there were already huge CPQ companies in existence (Salesforce, SAP), Pellicano has been able make his company meaningfully competitive and skyrocket revenue, all without outside funding. Talk about a high pressure scenario.

Below are Pellicano’s words of guidance for entrepreneurs when things look bad:

Starting a business from the ground up is tough

A lot of things need to go right to be successful. Too bad human existence has a funny way of doing exactly the opposite of smooth. Things change, people get into fights, or maybe the overall vision of the business isn’t what it once was. When you’re in business for yourself, the term “bootstraps” can mean a lot of things.

It isn’t easy, but if you do find that mythical “magic quadrant,” the payoff is incredible. You’ve built something you believed in, and you put in the work to achieve awesomeness. There are few feelings as gratifying as being the boss and taking a long lunch whenever you damn well please.

But, it ain’t all roses. Stuff will suck a lot of times. It will be hard. That’s just inherent to the culture of being self-made. I mean hey, busting your ass, coming up from nothing is basically, like – 80% of rap music, right?

As new entrepreneurs set off into the business world, there are some things they should know, what to expect and what to do when things don’t go as planned.

Check out these four things to keep in mind when it feels like the sky is falling.

1. Build a support system stronger than the Great Wall

When in business, stuff goes sideways. Anyone who’s ever held a job knows stuff changes and can go bad quickly – that’s just inherent to the DNA of work. But, when you’re in charge, and it’s your business, you’ll be pulled in a lot of directions. Many times, those directions are uncomfortable whether it be about the staff, progress, earnings, whatever. Because of this, you gotta assemble the All-Star team behind you, the folks who’ll always keep your head in the game and won’t let you get too big for your britches.

As an entrepreneur, you’re inherently optimistic. You had the guts to go it alone and do your own thing. That optimism is what makes you, you. Because of this bold attitude of work-related sunshine, you’ll probably not likely pay attention to that bad stuff, until it’s like, crazy bad.

By keeping a group of advisors, friends, and family close who you can talk to, you’ll have voices who offer advice from a place that isn’t about anything but helping you succeed. Success is a long process, rarely do businesses go from red to black overnight. You need some reliable people to keep you sane when all is quiet.

2. Don’t lose sight

When you had the idea to start your business, it was about more than just making money. You had goals, you had a vision, and you wanted to make an impact on the world. After a while, those emotional price points evolve. When you suffer a setback, or something goes way better than planned, it’s important to stick to your guns.

Keep a list visible near your workspace. You got into this game because you wanted to do better for your family, or maybe your last boss was a jerk and this is your way of paying the universe back. Either way, a little motivation never hurt anyone. You wanted to be the boss of yourself, don’t lose sight of that through the rough patches.

Set small goals to nail, and then work your way toward the bigger rocks. Motivation is hard, just ask anyone who wants to hit the gym, but still has a gut. Business is no different. You need to focus on the stretch goals and fight your way through the murk of self-doubt.

3. Rome wasn’t built in a day

You know why this old cliche sticks around? Because it’s true. Nothing worth doing happens overnight. If being self-made was easy, everyone would be doing it, too. (Just ask Biggie Smalls.)

Read any bio of successful folks who built an empire, or just a solid place to grab a burger in the neighborhood – success took time. For many of these folks, that time was spent worried the dream would go under from lack of early adopters.

But they persisted. They invested their money back into the business, they promoted, they made smart choices instead of the easy ones. Building brand equity will take smart moves and a lot of patience. Can’t be selling that charbroiled cheeseburger when no one’s coming in the door, right?

4. Accept your plan isn’t perfect

Just because you dream it down to the final note on paper, that doesn’t mean it’s going to work out that way.

If you’re a business-type CEO, you’ve spent a lot of time planning, writing business plans and Go-To-Market plans – that’s business 101.

If you’re a technical CEO, you’ve spent a lot of time coding, researching, and watching trends.

Both CEOs have done the homework, they’ve planned, prepared, and are committed to taking on the world, helmet strapped on and mouth guard in place.

But then the world doesn’t give a shit. Doesn’t even kind of care. No leads come in, there is no money to spend to bring in new customers, and no foreseeable change.

All the planning in the world won’t prepare you for the harsh realities of the free market. As you roll out and talk to people about your business, invite criticism and learn from what other people tell you. It doesn’t mean you have to change course every time someone’s opinion is different than yours, but their thoughts and critiques could offer a nugget of truth you may have not considered.

Final word of encouragement

I’m from Chicago, and if there’s one thing we love more than The Blues Brothers, it’s His Airness, Michael Jordan. I rely on one of his quotes to get me through the bad times:

“I’ve missed 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.” – Michael Jordan

If that ain’t some #realtalk, I don’t know what is. See you out on the court, folks.

#realtalk

Kiri Isaac is the Web Producer and a Staff Writer at The American Genius and studied communications at Texas A&M. She is fluent in sarcasm and movie quotes and her love language is tacos.

Business Entrepreneur

Is this normal (you wonder about your business)?

(ENTREPRENEURIALISM) It can be lonely not being able to openly ask potentially embarrassing questions about your business – there’s a way to do it anonymously…

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Entrepreneurialism is wildly rewarding – you are fully in control of the direction of your company, and you’re solving the world’s problems. But it’s also isolating when you’re not sure if what you’re experiencing is normal.

Sure, there’s Google, news networks (like ours), and professional connections to help you navigate, but sometimes you just want to know if something simple you’re seeing is normal.

Is Instagram Stories really where it’s at? Probably not if you’re a consultant.

Is it normal for an employee to attempt to re-negotiate their salary on their first day? Nope, but how do you keep the desirable employee without being bullied into new terms?

Do all entrepreneurs spend their first year in business as exhausted as a new parent? Sometimes.

You have questions, and together, we can share our experiences.

We have a brand new Facebook Group that is already wildly engaging, active, and you’d be amazed at how selflessly helpful people are – and we invite you to be one of them.

Want to anonymously ask a question about something you’re unsure is normal or not?

Click here to submit your question, and we’ll select as many as possible to discuss in the Facebook Group!

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Business Entrepreneur

Amazon on a collision course with politicians as they strengthen their monopoly

(BUSINESS) E-commerce has come a long way in the last decade, specifically led by Amazon, but are their controlling ways putting them on a collision course with regulators?

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In March, Amazon stopped replenishing weekly purchase orders for tens of thousands of vendors in a move that has stirred up some trouble. The tech giant has once flexed its power over first-party sellers over their platform. And it’s not the first time.

Amazon originally sent out to vendors as an automated message citing the hold up in orders as a technical glitch. The following day, vendors were told the change was permanent. The affected vendors were categorized as making $10 million or less in sales volume per year and not having managers at Amazon. Vendors selling specialized goods that were difficult to ship were also a factor.

The effects can have remarkable effects on the market as Amazon’s algorithms decide who is able to sell what to whom via their near-ubiquitous platform. According to John Ghiorso, the CEO of Orca Pacific, an Amazon agency for consultation and manufacturers representatives, the decision is driven by financial data such as total revenue, profitability, and catalog size.

In a response from an Amazon spokesperson, the change was made in order to improve value, convenience, and selection for customers. The mass termination of purchase orders and the delayed response from Amazon herald the transition to the One Vendor system, putting vendors in an exclusive relationship with Amazon. This system will merge the current Seller Central and Vendor Central.

Amazon’s message is loud and clear: they will do what’s in their best interest to mitigate the market for their convenience. One may be reminded of the anti-trust lawsuit against Microsoft in 2001.

The lack of warning didn’t do them any favors either.

While smaller businesses need to change for Amazon’s program, first-party business will revolve around larger brands like Nike with whom Amazon is maintaining a relationship.

Despite the streamlined platform Amazon is going for, the company wields power over vendors and customers alike. Capitalism is one thing, but monopolies are a whole other ball game, and politicians are finally paying attention.

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Business Entrepreneur

Culture Codes is the guide you need for company culture questions

(BUSINESS ENTREPRENEUR) One of the biggest sellers of a company to a prospective employee or customer is their culture. Culture Codes has compiled some the biggest companies cultures in convenient decks for you to study and align with.

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culture codes

Organizational culture is a hot button of conversation. While a variety of definitions exist, one way of defining Culture is the way businesses exist – a summary of values, rituals, and organizational mythology that helps employees make sense of the organization they work in.

Organizational cultures are often reflected in Mission, Vision, and Value statements of organizations.

What many entrepreneurs or new organization struggle with as well, is how to create a culture from the ground up. What kinds of statements and values do they advocate? What are areas of focus? Who are our competitors and what can we do to create a service, product, or quality advantage?

Building a strong culture can be challenging, but a good place to start is looking at the best cultures around.

A new resource by Tettra, Culture Codes, has everything you could want to know on different companies their cultures available for you to study up.

Over 40 companies employing over 280,000 employees have created culture decks and collected core values and mission statements. Companies like Spotify, Netflix, LinkedIn, and NASA have all contributed information.

This information is great for young companies or entrepreneurs to start building a schema about what kind of culture they want to create.

Or existing established companies can look towards peers and competitors and help decide what statements they want to engage culture change on.

For job seekers, Tettra can help potential employees gauge if they are a fit for an organization, or discover that maybe an organization they dream about working for has a culture they may not jive with. And perhaps most valuably, transparently showing off your culture and allowing it to be compared means that organizations can better compete in the talent market.

Recruiters should be obsessed with talking about culture – because it keeps people in the door.

The reasons why people leave employment: work/ life balance, poor treatment, lack of training, or relationship issues with a supervisor or boss; in many ways are a by-product of organizational culture. If you want to compete in the talent market, make culture a selling point and show it off in everything you do.

Even consumer’s benefit from learning about an organization’s culture – values that indicate a commitment to excellence in ethics make consumers feel good about supporting an organization.

It pays to have a good culture. I encourage you to head over to tetra.co/culture-codes and see how companies like Etsy are keeping it real, every day.

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