Barbara Corcoran on How to Start Your Own Business on the Side

NOVEMBER 19, 2014

It’s often easier to start a new business while you’re still doing your day job, following a hunch that what you love might be just what a lot of customers out there are willing to pay for!

I sit in the lucky position as an investor/shark on the popular ABC showShark Tank where I listen to hundreds of young entrepreneurs pitch me their businesses. To date, I’ve invested a few dozen, and some of them have succeeded well beyond my expectations! Many of my most successful entrepreneurs came up with their new business idea the same way they turned their personal interest into a brand new business while they were holding a full-time job.

Jim Tselikis and Sabin Lomac are cousins from Maine and grew up eating fresh Maine lobster. Jim worked as a medical sales rep in Boston, while his cousin sold real estate in Southern California. Simply because they loved lobster, they decided to rehab an old food truck and start selling lobster rolls on the weekend and voila-- Cousins Maine Lobster was born! In their first month of business, Jim and Sabin sold $30,000 in lobster rolls and two months later they quit their jobs to charge full-time into their brand new business. Two years later, Sabin and Jim already have three trucks, 12 franchises in eight cities, and a huge on-line “shore to door” distribution business. Their personal interests and brief weekend job exploded into a hugely successful business.

Tiffany Krumins was working as full-time nanny in Auburn, Georgia and volunteered at a local cancer clinic for children. It broke Tiffany's heart to see the children cry when they had to take their medicine eight times each day, so she made a clay model of an elephant with a medicine dispenser hidden inside. When the kids pressed a button, they heard the happy recording in Tiffany’s own sweet voice -- “Ready? One, two, three! … Good job!” – cheering the kids on. The children happily swallowed their medicine.  Four years later, “Ava the Elephant” is sold in almost every large pharmacy in America and is distributed at clinics across the nation. The clever inventor turned her part-time passion into a full-fledged business.

Kim Daisy of Spartanburg, SC loved baking cakes, just like her mother and grandmother before her. While she was a full-time mom, she made cakes to raise funds for her local junior league. Once word of her cakes spread outside Georgia, Kim couldn’t keep up with the orders! She made an old-fashioned cake tin to freeze and ship her Daisy Cakes to customers outside of Georgia. As Kim’s last child headed off to college, she started building “Daisy Cakes” full-time. Her business is in its fourth year, selling thousands of cakes online to customers nationwide. Last year, sales hit $2 million and she’ll double her volume this year. Daisy Cake’s secret sauce was that she started her new business as a sideline.

Most new entrepreneurs quit their day jobs before starting a new business. From what I’ve witnessed, it’s so much smarter to start a new business with all the time constraints of a full-time job.

Answer These 6 Questions Before Sinking Money Into Some Entrepreneur's Great Idea

NOVEMBER 18, 2014

If you thought being an entrepreneur was tough, then you’ve never lived in the shoes of an investor. Whether you’re a VC or angel, investing in startups is risky business. That’s not saying that if a startup fails you’re out on the streets. It just means that if you don’t pick any winners, it’s time to find a new line of work. Investors are in the business of founding a startup in the hope that it becomes successful - which will also make them a hefty return in the long-run.

While certain factors are out of our hands, such as an economic downturn, we do have the opportunity to make sure that we’re at least investing in the right startup. And investing in a potentially successful startup all begins with the entrepreneur behind the whole thing.

Before committing any amount of money to a promising startup, here are a few things you should keep in mind to make sure you're going to be working with a great entrepreneur.

Related: 25 Reasons I Will Not Invest in Your Startup

1. What kind of experience do they have?

As John Rampton pointed out in Entrepreneur, “Investors don’t want entrepreneurs to make mistakes on their dime.” This is why it’s most advisable to do your homework on entrepreneurs. We need to look at their business track-record and determine if they are expert in their industry. For example, would you want to work with a police officer on a business venture that involved baking? Or, would you rather work with that police officer on a product that improved vehicular safety?

In short, you don’t want an entrepreneur to learn as they go with you funding it. However, if they have the knowledge in an industry and experience  starting a business, they have the chops to handle the day-to-day business operations.

2. Are they a good storyteller?

While a workable idea and solid business plan are important when selecting which entrepreneur to work with, the ability to communicate is arguably their top selling point. An entrepreneur needs the ability toemotionally connect with investors, customers and the media. A great storyteller can select the right story for the right audience. Furthermore, they can engage with the audience, motivate them with a strong call-to-action and actively listen.

Martin Zwilling mentioned Howard Schultz, founder of Starbucks, and Chad Hurley, founder of YouTube, as examples of great storytellers because they each turned "'me' into a 'we,' by being able to tell a story that shined the light on an interest, goal, or problem that both the teller and the listener shared."

3. Can you trust them?

David Rose, founder of the New York Angels investing group and CEO of investment firm Gust, was asked what he thinks is the number-one quality to look for in an entrepreneur when investing. His response was integrity. He said there are many things that an investor can’t control, so being able to trust an entrepreneur is something they need on their side. In other words, you want to be assured that the entrepreneur isn’t just going to take the money and run, or give-up when times get hard. They have to have a foundation of integrity and hard work to make their idea reality.

Related: Why You Need to Become a Better Storyteller

4. Does their business plan answer the three C’s?

Many years ago, Cliff Ennico, who was the host of the PBS reality series MoneyHunt, reminded entrepreneurs to have a business plan that included the "three Cs," which consisted of:

• Compelling idea - It should be obvious why people in a specific market would purchase the startup’s products or services.
• Competent management - The team must be talented and understand the business.
• Cash flow - Revenue have to be sufficient to take care of the basic operating expenses.

If an entrepreneur has taken the time and allocated the resources to satisfy these areas, it illustrates there are conscientious people behind the idea. Then you can feel a bit more at ease before signing a check over to them.

5. Are you familiar with their niche?

"As you probably know, investors want to minimize their risks as much as possible" says investor and entrepreneur Qais Al Khonji. "That’s why so many investors aren’t too worried about supporting startups that are involved with software or healthcare industries," for example, because these industries have a big audience and potential for profit. 

On top of those sort of industries, you consider working with entrepreneurs that you personally know, such as a former colleague, or someone who has been personally recommended. Entrepreneurs who pitch ideas in a field you are familiar with are worth listening to, since you and that person have similar interests already.

Related: An Insider's Perspective on Wooing Investors to Your Startup

6. Would they be good to work for?

Even as an investor, you have to ask yourself if the prospective founder is someone you would want to work for. Can the founder convince, and inspire, prospective employees to give as much heart and soul as possible to their venture?

These are people who may lose their job if the company fails, but still deliver a high level of dedication, even though their actual level of monetary investment may not be all that high. Investors look for founders who can attract and keep such employees. Marco Benvenuti, co-founder of Silicon Valley hotel-industry startup Duetto says giving employees a sense of purpose has helped them attract talent.

"Having a sense of purpose is important," he says. "The engineers train extensively on the product and how it works for our customers. Giving them the full context allows them to build and produce features that deliver tangible benefits for clients."

One key to any business is the entrepreneurs behind it. Finding them can be tough, working with them and investing in them can be even more of a challenge. However, if you make a careful and considerate examination of entrepreneurs who are seeking funding, you will find one who fits your interests, goals and personality. If you're going to spend years of your life interacting with someone, be sure you give them a thorough evaluation. After all, in the end, it's your time and money at stake.

Related: The 7 Due Diligence Basics for Investing in a Startup

Stuck at the Idea Phase? These 6 Collaboration Avenues Can Help.

NOVEMBER 21, 2014

"I have this great business idea, but I just don’t know what to do next."

This comment was from a casual conversation I had with my son's doctor this past week, as we waited in his office for checkup tests results. For all general purposes, however, the exact phrase could have come from any and every entrepreneur and inventor I have ever met in my career.

Related: Is Your Startup Idea a Killer, or Should It Be Killed?

It might be the single most common phrase uttered by would-be entrepreneurs.

Indeed, bringing an idea to fruition is one of the most challenging and stressful experiences that entrepreneurs will have. Running a business is complicated, and starting a new business around a new product is more so. It is no wonder so many great ideas stop right at the idea stage. Fortunately, resolving this problem is not as difficult as many people think.

It comes down to collaboration.

Working with others on a project is one of the most effective ways to move an idea forward. Many entrepreneurs and inventors, however, often cite the fear of someone stealing their idea as their primary reason for avoiding collaboration. This is a completely valid concern, but these days, keeping an idea to yourself could very well do more damage than good.

Finding ways to collaborate on your idea is easier than ever these days. Here are just a few resources to consider:

1. Coworking spaces

Coworking spaces are popping up all over the country. Often, these spaces are wide-open common areas where entrepreneurs and business people meet, meander, work, talk and share ideas. While having a comfortable and energetic place to work is a definite benefit, more so is the opportunity to meet and collaborate on ideas with a hosts of other working professionals, some of whom may actually fill a need you have. If you cannot find a cowork space in your area, considerstarting one of your own. All you need is a meeting place and shared interests.

2. Incubators and accelerators

Organizations that assist startup and early-stage companies are called business incubators and accelerators. These programs often provide entrepreneurs a host of resources, from development of investor pitches to raising money to finding specific talent. Some groups are focused on tech startups, while others focus on manufacturing and other specialty industries.

Make sure you understand what is required from you to get involved, as many programs have a fee or an equity-share agreement. While that may be intimidating, the benefits in most cases far outweigh that cost.

Related: Want to Get Your Startup Into an Accelerator? Try These 5 Things.

3. Crowdfunding and crowd investing 

Early-stage companies can also consider launching a fundraising campaign on a crowdfunding platform such as Kickstarter, Indigogo or any of the other crowdfunding platforms. In its most simplest form, crowdfunding allows entrepreneurs to raise money while essentially pre-selling a service or product. In addition to raising money, a successful crowdfunding campaign creates visibility and provides proof of concept. Using crowdfunding does not mean you will be successful, as there is a great deal of work and planning that goes into properly launching a campaign.

Another avenue to consider is crowd investing, which are platforms that allow you to promote your company to accredited investors, who can then make equity investments in your company. Some popular sitesinclude Fundable, AngelList and OneVest. This option is much more complicated and requires a solid legal understanding of the process before you even start.

4. Startup events

Startup events have grown tremendously in popularity over the past few years. One program, Startup Weekend, has participants who develop an entire business idea, from idea to pitch to working models or minimum viable products (MVP), all over a 54-hour weekend. Many events involve competitions with cash prizes. Like everything else, be sure you understand what you are getting into prior to participating.

5. Co-founders 

Going about a startup business is hard work, which is why so many great companies have co-founders. In addition to helping with the workload, co-founders often bring complementary skills and experience. Do not be quick to engage family and friends, as bad business deals often lead to bad situations in your personal life. Instead, considering looking for other entrepreneurs who may just be looking to get involved with an exciting new business. Websites such as Founder Dating can pair you up with other aspiring entrepreneurs.

6. The Internet 

If all of these tips are a little overwhelming, at the very least just get on the Internet and do research. There might be existing companies that have already developed your idea or some very close iteration thereof. You can always inquire and work with them. You can also find reputable websites to help you find development partners, licensing partners and other resource to get you going. At the very least, get your website and social-media platforms reserved.

All of these options require you announce your idea to the world. With no patent or other intellectual-property rights secured, this can be stressful. Of course, you should always seek legal advice if it makes you more comfortable.

Keeping it to yourself, however, will get you nowhere, and as fast as business and innovation move these days, if your idea is worthy of consideration, someone else will think of it eventually.

What do you think? What other resources have you used to collaborate on a new business idea? Please share your thoughts with others below.

Related: 4 Best Practices to Avoid Startup Failure

http://www.entrepreneur.com/article/240001

Buffett Donates $2.8 Billion, Breaks Personal Giving Record

The World's Billionaires

#1 Bill Gates

• Real Time Net Worth
• $82.2 Billion
• $55.5 M | -0.1%
• As of 11/22/2014 @ 4:35AM *
Follow (6,179)
• Cofounder, Bill & Melinda Gates Foundation

Age

59

Source Of Wealth

Microsoft, Self Made

Self-Made Score

8

Residence

Medina, WA

Citizenship

United States

Marital Status

Married

Children

3

Education

Drop Out, Harvard University

America's richest man, Bill Gates, is using his billions to effect major social change around the globe. The Bill & Melinda Gates Foundation has given away $30 billion since 2000, a fortune that on its own would be one of the 20 largest in America. The foundation is working to eliminate polio in the three countries where it still exists and is committed to stamping out malaria wherever possible.

Inside The 2014 Forbes Billionaires List: Facts And Figures

By Kerry A. Dolan and Luisa Kroll

The ranks of the world’s billionaires continue to scale new heights–and stretch to new corners of the world. Our global wealth team found a record 1,645 billionaires with an aggregate net worth of $6.4 trillion, also a record, up from $5.4 trillion a year ago. We unearthed 268 new ten-figure fortunes, including 42 new women billionaires, both also records. In total, there are 172 women on the list, more than ever before and up from 138 last year.

15 Facts On Google That You’d Definitely ‘Search’ To Verify

oogle was originally called “Backrub”.

Image Source

7 Reasons Why Life Is Too Short To Work For Others

Believe it or not, we all have considered – at some point in time – to quit our day job and work for ourselves. While some of us liked the sound of writing a book while living in nature and watching the peaches grow, others are attracted to the idea of making a successful online business and be the next Zuckerberg – but just couldn’t find the courage to take the plunge. 7 reasons why you should do that right now:

Multiply the Trust Factor Inside Your Organization

A new survey by Interaction Associates indicated nearly 60 percent of workers polled believe their organization lacks trust. Plus, trust in bosses has declined since last year.

Many employers recognize trust is an essential ingredient for business success. Here are 10 ways to improve trust inside an company when managing employees: 

Related: 8 Ways to Build Trust in the Workplace (Infographic)

The 3 Decisions That Will Change Your Financial Life

10 Famous Entrepreneurs With a Surprising Past

 BY JOHN WARRILLOW@JOHNWARRILLOW

Most of the famous entrepreneurs we idolize had a modest success (or failure) before they started the businesses that made them famous. So why are so many of us clinging to our first business like it is our life's work?

If we can agree that starting a business is a creative process, why do so many of us stop after just one creation?