Friday, 30 November 2018

Top Stories: Etsy Businesses Contribute $4.7B, 31% of Entrepreneurs Concerned about Healthcare

According to a recent report on handmade commerce, Etsy sellers are contributing $4.7 billion to the American economy right now.

The report, on the surface, shows two positive signs. First, consumer spending is presumably strong. Second, there’s a thirst for quality handmade goods, which are most often made by small business entrepreneurs. This is only one of several stories important to small business retailers and others this week.

To see what other stories are making headlines with small business owners and other entrepreneurs, check out our full news roundup below.

Retail Trends

8 Big Predictions for the 2018 Holiday SHIPPING Season

Americans are set to spend big this holiday season. In fact, numbers from Adobe Analytics report the online spend alone will reach $124.1 billion to overshadow brick and mortar sales. What’s more, Deloitte reports that people will spend $525 on gifts representing a bump of 20% from $430 in 2017. 2018 Holiday Shipping Season Small Business Trends talked with Georgianna W.

Sales

Zoho Adds AI and Analytics for Small Business with CRM Plus

Zoho has recently released the latest addition to its customer experience CRM platform offering the one-two punch of advanced analytics and artificial intelligence. Zoho CRM Plus lets small businesses without big IT budgets compete with the bigger players by letting different departments like customer support, marketing, sales and operations work together.

Economy

31% of Businesses List Healthcare as Top Issue for New Congress

A new poll sees healthcare as the top issue for small businesses as the new Congress takes shape after the midterm elections. The numbers come from a recent poll conducted by The Small Business Roundtable, a small business and entrepreneur organization dedicated to the advancement of this critical aspect of the American economy.

Employment

Hiring 3.8% Higher than October 2017 but Leveling, LinkedIn Reports

The monthly LinkedIn Workforce Report for October 2018 revealed gross hiring in the US was up 3.8%, higher than for the same period the previous year. With seasonally adjusted national hiring down only 0.3% from September to October 2018, the job market is still very strong.

Management

Switching  to an Open Office May Make 1 in 8 of your Employees Consider Quitting, Survey Says

Believe it or not, the open office concept was being used before the cubicle in the early 20th century. What we’ve learned since that time is there is no one-size-fits-all solution when it comes to office space, which is what a survey commissioned by ROOM reveals.

Social Media

Pew Research Provides Important Data for Small Businesses about Marketing on YouTube

Data from a new Pew Research Center survey reveals YouTube has become a valuable resource for Americans. The research contains some valuable insights for small businesses now using the platform as a marketing channel. Users are turning to YouTube for how to videos, product information, children’s content and even news.

New Looping Video App Planned from the Creator of Vine, Could Your Business Benefit?

For the millions of fans who regularly watched and loved its quirky videos, the sudden shut down of the Vine app in October 2016 came as a bitter blow. If you happen to be one of those fans or one of the creators who made those videos, there is good news because the co-founder of Vine, Dom Hofmann, is bringing the app back with a new name: byte.

Startup

1  in 7 Americans Think They Are Sitting on a Game Changing Business Idea, Survey Says

How confident are American entrepreneurs about their business idea? A Northwestern Mutual survey carried out by OnePoll reveals one in seven think their idea is so strong it could change the world and have a dramatic impact in the chosen industry. This level of confidence is commendable and even necessary in order to persevere and make your dreams come true.

Technology Trends

PayPal Acquires Hyperwallet with Focus on Ecommerce Businesses

PayPal (NASDAQ: PYPL) recently completed the acquisition of Vancouver-based global payout platform Hyperwallet Systems for approximately $400 million USD.

Companies Adopt Ride Sharing – But Not Room Sharing – in Business Travel Policies

Services provided by the sharing economy have increased adoption rates for shared transportation during business trips. But according to a new survey from Chrome River, the adoption rate for shared accommodation hasn’t reached the same levels. Instead of using Airbnb, HomeAway, or VRBO, business travelers are still opting to stay in hotels for their accommodations.

Photo via Shutterstock

This article, "Top Stories: Etsy Businesses Contribute $4.7B, 31% of Entrepreneurs Concerned about Healthcare" was first published on Small Business Trends



Thanksgiving and Black Friday 2018 Spending Up 6% Over Last Year, 5% for Small Businesses

Thanksgiving and Black Friday 2018 Results Up 6% Over Last Year

Early shopping results from First Data’s Holiday Insights Dashboard have revealed overall spending was up 6.1% for Thanksgiving- Black Friday year over year with a 5.3% growth for small businesses over the same period.

Black Friday 2018 Results

This does not reflect the results for the entire shopping season, but so far things are looking good for retailers. If the early results manage to hold, they might surpass the 2017 numbers after all the shopping days have been calculated. In 2017, First Data’s report for that year’s total holiday shopping season was up by 6.2% from 2016.

The Holiday Insights Dashboard from First Data will track holiday spending trends across the US in real-time until January 3. According to the company, the data will reflect actual transactions from millions of merchants nationwide.

The dashboard provides a daily ranking of the most active sub-sectors including dining, services, hotel/travel/leisure, grocery and food stores, and more.

This type of data is valuable for businesses of all sizes so they can identify trends and get ready for future holiday shopping seasons. Glenn Fodor, Senior Vice President and Head of First Data Insights, explains this very point in a press release.

Fodor says, “Using our data platform, First Data provides a view into spending trends across payment types and industry verticals, allowing us to deliver real-time data that helps our clients and partners drive top and bottom line results.”

The dashboard is part of First Data’s Quarterly SpendTrend Report: 3Q18 (PDF) which looks at the year over year growth of rates in retail spend across segments, channels, cities and regions in the US. The analysis of the data comes from card-based payments derived from same-store-sales activity. The company then compares this with previous data on a year over year basis for season-to-date trends.

In addition to the 6.1% increase in overall spending and 5.3% small business year over year growth, the dashboard also tracked a 6.4% increase in retail spending specifically for Thanksgiving and Black Friday.

Third Quarter Results

The total spend in the third quarter of 2018 is up by 4.9%. The growth was delivered by brick and mortar outlets which saw a 4.5% increase and eCommerce at 5.7%, slightly down from the second quarter.

Overall, eCommerce delivered 33% of the total spend for the quarter up 3%, but the segment has been growing faster than brick and mortar outlets for several quarters now.

The Consolidation of Data

First Data currently serves around 6 million business locations and 4,000 financial institutions in more than 100 countries around the world. The company processes more than 3,000 transactions per second totaling $2.4 trillion per year.

This generates a massive amount of data. By consolidating the data and making these transactions available to the public, Firs Data provides insights into consumer spending.

And as more small businesses market their products online, they can identify trends and shopping behaviors from around the world to look for new opportunities.

Photo via Shutterstock

This article, "Thanksgiving and Black Friday 2018 Spending Up 6% Over Last Year, 5% for Small Businesses" was first published on Small Business Trends



Top Energy Draining Devices in Your Home Office

What Devices Use the Most Electricity in Your Home Office?

Working from the comfort of a home office comes with many cost-cutting benefits to a small business, the biggest being the lack of a costly and time-consuming commute to work. However, there are expenses associated with running a home office, with energy costs being a leading overhead.

What Devices Use the Most Electricity

If you want to make your home office more energy efficient and reduce your energy bills, identify the top energy draining devices to start.

Your Computer

When it comes to energy draining devices in a home office, computers top the list! You might not think that leaving your computer on overnight or over the weekend would eat into your energy consumption, but it does. Since computer monitors use approximately 100 watts per day, simply switching off your computer will help you save on your home office’s energy bill.

Besides turning off PCs, you may want to trade in an energy-draining desktop computer for a laptop computer, which consumes significantly less energy than a desktop.

Lighting

Sufficient lighting is vital in a home office so you don’t strain your eyes and can remain focused, alert and productive. However, lighting your home office might be costing you more in energy than you think.

According to the U.S. Energy Information Administration (EIA), in 2017 the residential and commercial sectors used around 273 billion kilowatt-hours of electricity for lighting alone, equating to around 10% of the total energy consumed for both sectors.

To reduce the amount of energy the lighting in your home office consumes, switch to more energy-efficient forms of lighting. Of course, natural daylight is by far the cheapest (it’s free!) and healthiest way to light up a home office.

However when natural daylight is not an option, choose incandescent bulbs, which are energy efficient and typically last between 700 and 1000 hours. Halogen bulbs can also save you energy, being 25% more efficient and lasting up to three times longer than traditional incandescent bulbs.

It’s also a good idea to place timers around your home office, which can be programmed to come on and switch off at certain times of the day, meaning lights aren’t left on and using electricity when nobody is in the office.

Occupancy sensors work in a similar way, only coming on when movement is detected so lights are not left on unnecessarily.

Printers

Your home office printer could be costing you more than you think too. This essential piece of office equipment is one of those energy draining devices which tend to go overlooked. Make sure your printer isn’t adding unnecessarily to your energy bill by opting for a printer with an ENERGY STAR certification label. Printers with an ENERGY STAR certification meet federal agency standards ensuring such equipment is operating at maximum efficiency.

It is also advisable to choose a printer with sleep and automatic shut-off modes, so it’s not using energy when it’s not being used.

Thermostats

Home offices require heating in the winter and cooling in the summer. Consequently, thermostats can be one of the biggest energy draining devices in a home office.

As thermostats control 60% of your energy bill, one of the easiest ways to save on energy in a home-working environment is to control your thermostat. Simply turning the thermostat down by 1 degree could reduce your heating bills by up to 10 percent.

You may want to consider making your home office high tech and advanced by using Google Home which works alongside other smart home devices such as the Nest Learning Thermostat. Hailed as the “brighter way to save energy”, this smart thermostat programs itself and uses WiFi to connect to your phone, adapting to your habits to control the temperature of your home office.

Tea Kettles and Coffee Machines

No office, homebased or otherwise, would be complete without a kettle or coffee machine to make the endless cups of coffee and tea fueling your productivity throughout the day. With the average kettle holding 1.5 pints and using approximately one unit to boil 12 pints of water, the savviest of small businesses are looking for ways to make these energy draining devices more energy-efficient.

One way to ensure your home office doesn’t spend surplus dollars making tea and coffee, is to opt for more eco-friendly appliances. For example, coffee makers with reusable filters or without the need for paper filters provide a more energy efficient cup of coffee.

When boiling water with a kettle, only boil the water you need rather than the full kettle. And opt for a kettle allowing you to select the temperature so can adjust it for maximum cost efficiency

Refrigerators

If your home office set up includes a refrigerator, it is important to ensure your model of fridge is an energy efficient one. Opt for ENERGY STAR-qualified models to save money on this energy-zapping office appliance. ENERGY STAR-qualified models can save as much as 45% of the energy consumed by conventional refrigerators.

In addition to selecting an energy-efficient model, you should avoid wasting energy by leaving the refrigerator door open, since this causes the appliance to work overtime.

It is also important to maintain appliances like refrigerators regularly to ensure they are operating as they should and are not using surplus energy.

Follow these energy-saving strategies and you’ll soon start reaping the monetary benefits. Ensure the top energy draining devices in your home office are as efficient as they can be.

Photo via Shutterstock

This article, "Top Energy Draining Devices in Your Home Office" was first published on Small Business Trends



And the winner of Startup Battlefield at Disrupt Berlin 2018 is… Legacy

At the very beginning, there were 13 startups. After three days of incredibly fierce competition, we now have a winner.

Startups participating in the Startup Battlefield have all been hand-picked to participate in our highly competitive startup competition. They all presented in front of multiple groups of VCs and tech leaders serving as judges for a chance to win $50,000 and the coveted Disrupt Cup.

After hours of deliberations, TechCrunch editors pored over the judges’ notes and narrowed the list down to five finalists: Imago AI, Kalepso, Legacy, Polyteia and Spike.

These startups made their way to the finale to demo in front of our final panel of judges, which included: Sophia Bendz (Atomico), Niko Bonatsos (General Catalyst), Luciana Luxiandru (Accel), Ida Tin (Clue), Matt Turck (FirstMark Capital) and Matthew Panzarino (TechCrunch).

And now, meet the Startup Battlefield winner of TechCrunch Disrupt Berlin 2018.

Winner: Legacy

Legacy is tackling an interesting problem: the reduction of sperm motility as we age. By freezing men’s sperm, this Swiss-based company promises to keep our boys safe and potent as we get older, a consideration that many find vital as we marry and have kids later.

Read more about Legacy in our separate post.

Runner-Up: Imago AI

Imago AI is applying AI to help feed the world’s growing population by increasing crop yields and reducing food waste. To accomplish this, it’s using computer vision and machine learning technology to fully automate the laborious task of measuring crop output and quality.

Read more about Imago AI in our separate post.



Could Your Small Business Use an Autonomous, Wireless Underwater Drone?

Check This Out! The First Autonomous and Wireless iBubble Underwater Drone

Over the past few years, there has been a rise in the use of drones for deliveries and other uses. Now, the first autonomous underwater drone has launched, opening a whole new world of possibilities.

Yep, that’s right! French start-up Notilo Plus recently announced the commercial launch of what it says is the world’s first fully wireless, autonomous and intelligent underwater drone named, iBubble.

“This novel remotely operated vehicle (ROV) was designed using Notilo Plus’ patented underwater localization technology, enabling subaquatic adventures without tethers,” said the French company in a statement. “It comes with an advanced AI system, offering total autonomy and self-learning capabilities.”

First Autonomous Underwater Drone, iBubble, Lunches

It might not be immediately obvious how underwater drones can be useful for small businesses, but some possibilities for small business uses include:

  • Underwater photography and filming,
  • Diving instruction,
  • Wildlife protection,
  • Search and rescue operations,
  • Naval or underwater infrastructure maintenance, and
  • Subsea patrolling.

Apparently, iBubble comes equipped with a state-of-the-art obstacle avoidance system, which allows it to smoothly follow a diver, while obtaining high quality images for personal or commercial use.

“It features real-time image recognition, a unique stabilization system as well as direct surface control, bringing outstanding performance to underwater imaging,” says Notilo Plus, an expert in intelligent underwater exploration.

Ready to Shoot Exceptional Underwater Images?

If you are an independent photographer or your business requires use of exceptional and unique photos, the autonomous underwater drone could be something to explore. It enables anyone to obtain underwater images of unparalleled quality, according to Notilo Plus.

Resorts, shipping markets and educational institutions might also find use for the submarine drone.

“iBubble can accompany divers for up to an hour and up to 197 feet depth, acting as their personal cameraman, enabling superior underwater imaging,” the Marseille-based company that specializes in developing intelligent, autonomous underwater systems notes.

Autonomous iBubble Underwater Drone Safe for the Environment

iBubble is reportedly also environmentally-conscious. It does not disturb the marine ecosystem thanks to its minimal noise emission levels and special obstacle avoidance capability, according to Notilo Plus.

“With the countless cutting edge technologies brought by the iBubble, coupled with its ability to bring exceptional pictures and video footage, this is a remarkable and versatile device for any diving activity,” Notilo Plus CEO, Nicolas Gambini, adds.

The first batches of iBubble drones will be delivered to the first customers from mid-November 2018. The autonomous underwater drone will retail at $4,099 on the company’s website.

Image: iBubble

This article, "Could Your Small Business Use an Autonomous, Wireless Underwater Drone?" was first published on Small Business Trends



The Way He Clicked His Pen in Meetings was Absolute Torture

Pen Clicking Business Cartoon

I haven’t been in an actual meeting room in a very long time. (I take that back. I took some meetings about my new website a while back in which I spilled various food and drink on myself including coffee, salad dressing, and a bagel with cream cheese.)

Anyway, if memory serves, there was often a person clicking a pen. Click. Click. Click. Click. Click. Click. Click. Click. Click …

Are you getting chills?

I always thought that that could be used to extract information from someone if necessary, and years later I drew that up.

This article, "The Way He Clicked His Pen in Meetings was Absolute Torture" was first published on Small Business Trends



N26 says it now has more than 2M customers

N26 announced today that it now has more than 2 million customers — up from 1.5 million in October.

The German fintech startup’s CEO Valentin Stalf was interviewed onstage at Disrupt Berlin with Tandem CEO Ricky Knox, where they discussed the growth of what are sometimes called challenger banks or neobanks — new banks that are taking on the incumbents by focusing on digital tools.

Stalf said N26 is seeing more than €1.5 billion in transactions each month, with €1 billion in deposits. He also discussed the company’s recent launch in the United Kingdom — he didn’t know the exact number of U.K. users, but estimated that the company has tens of thousands of U.K. accounts, with between 1,500 and 2,000 new signups on a single day three days ago.

Meanwhile, Knox said Tandem now has nearly half a million users in the U.K. (“This year, we’re seeing everybody’s growing really quickly.”) He also noted that because Tandem allows users to aggregate different accounts, he’s noticed some of those users are starting to become more focused on individual services.

“What tends to happen, particularly with the early adopter audience, is they will open [an] account with everybody because they want to check it out, they want to get the best product,” he said. “And then what you’ll see is over time, them kind of picking a horse — depending on the functionality they like, depending on, you know, the service they’re getting there — and settling in.”

Tandem is also expanding geographically, specifically to Hong Kong through a deal with Convoy Global Holdings. Asked why he’s making the leap to Asia before launching in other European markets, Knox said, “There are a load of massive Asian markets … The exciting thing here is the opportunity, as I said, for a global bank, and some of these Asian markets are really ripe for disruption.”

In discussing the different models for challenger banks, Knox warned against the dangers of the “marketplace bank” model, where banks make money by connecting customers to third-party services.

“What we found is, the more we try and push revenue in that area there, the less customers love it,” he said. “That’s the challenge with marketplaces: If you build your business model around it, you’ve got an inherent contradiction between customers loving you less when you make more money.”

Instead, Knox argued that customers have a better experience if the bank is willing to recommend free or low-priced services: “And actually at the backend, we’re still making money the same way the bank makes money. So we’re able to fund, if you like, all this great customer stuff at the front end.”

Moderator Romain Dillet quickly pointed out that Stalf was shaking his head while Knox was making his arguments.

“What we see with our customers is, I think if we have a great product, they’re normally also willing to pay a little bit for it,” Stalf said. “It needs to be transparent, and it needs to be a good value to consumers. But I think it’s untrue that customers are always not choosing a product if you price it.”

As for whether we’ll be seeing consolidation in the industry over the next few years, Knox argued, “I’d say there’s plenty of room for the existing cadre of neobanks to be incredibly successful on a global basis without any mergers or acquisitions.” He suggested it’s more likely that the established banks start trying to acquire the challengers, although he said, “That’s not a route we want to take.”

“I think there’s a couple players that are set for being a global bank, and I think we are trying to take the shot to be a global bank,” Stalf added. “I think it’s about building up 50 to 100 million users in the next couple years.”



How to Build a Business with an Exit Strategy in Mind

Small Business Exit Strategy Example

This year I sold my first company, Wordstream, for $150 million.

I started it in 2007, and back then I was a solopreneur flying by the seat of my pants — I’d developed software to use in search engine marketing, and it occurred to me I could package and sell that software to others.

I had a unicorn of an idea on my hands, and I ran with it.

Do you have a unicorn idea on your hands?

Want to know how to turn it into a billion-dollar business?

No two entrepreneurs‘ paths are alike, but I’m happy to share how I navigated my own path from ground zero to a nine-figure exit.

Small Business Exit Strategy Example

Here’s how to start a business in 16 steps:

  1. Identify why you want to start a business.
  2. Pinpoint your passions, skills, strengths and weaknesses.
  3. Find your business idea.
  4. Do the math.
  5. Research the market.
  6. Develop a prototype and solicit feedback.
  7. Make adjustments based on feedback.
  8. Cover your bases legally.
  9. Create a professional business plan.
  10. Obtain funding.
  11. Fully develop your product or service.
  12. Hire a team.
  13. Generate sales.
  14. Focus on growth.
  15. Keep improving.

Small Business Exit Strategy Example

Read on for the expanded version of each step!

1. Identify Why You Want to Start a Business

It’s important to understand why you’re doing something, especially when it’s as major as starting a business.

Maybe there’s an idea (or even a spark of an idea) that you just can’t seem to shake.

Maybe it’s because entrepreneurship is a symbol of freedom — a way to escape working for someone else.

Maybe it’s the earnings potential.

Take the time to identify why you want to be an entrepreneur.

It represents a portion of your core motivation and is something you can reference when you need to remind yourself to keep moving forward.

2. Pinpoint Your Passions, Skills, Strengths and Weaknesses

Once you have at least a basic understanding as to why you want to start a business, it’s time to do something difficult: get to know yourself.

You need to honestly evaluate yourself, what you bring to the table, and where your weaknesses lie.

You can get to the root of who you are as an aspiring entrepreneur by focusing on a few key questions. Ask yourself:

  • What are your passions?
  • What are your  skills and strengths?
  • What are is your area of expertise?
  • What are your weaknesses and the tasks you despise?
  • Are you ready to become an entrepreneur?

3. Find Your Business Idea

Every business comes from an single idea.

Sometimes it comes as an “aha” moment.

Sometimes you have to methodically think it through.

If you’ve already figured out you want to be an entrepreneur but don’t know what idea to pursue, narrow it down by asking yourself these questions:

  • Is there something you deal with regularly that always bugs you? If so, could you come up with a product or service to fix it?
  • Is there an emerging technology on the horizon that piques your interest? Is there a way you can get involved as a business? (That’s how I came up with idea for my new company MobileMonkey — I saw such unlimited potential with Facebook Messenger marketing that I developed software that builds Facebook Messenger chatbots!)
  • Can you take something that works now and make it faster, better, or cheaper?

4. Do the Math

Starting a company costs money, period.

In the beginning, you’re going to need to float the business as practically no one is profitable from day one.

First, you need to figure out how much money you can afford to spend, and what you can lose, without destroying your financial life.

Next, you need to determine how much capital you need — not only to get your business off the ground, but to sustain it until it is profitable.

Finally, you need to know how much money you need to maintain your personal life. This includes paying your bills, buying food, medical expenses, and all of the other costs that come with being alive.

5. Research the Market

Before you pursue a business idea, you need to examine product differentiation and whether your proposition is actually unique.

Determine whether you are truly the first to make a product or service available.

If you are not the only one offering your service or product, consider what your competition is offering (and charging) and whether you can bring something to the table that they don’t.

Conduct interviews to find out what people want, or release a survey to gather information about what your potential customers might need.

Without market research, you could end up releasing a product or service that no one will actually buy, and that is going to set you up for failure.

6. Develop a Prototype and Solicit Feedback

At this point, you really need to suss out what you plan to offer. The time for ambiguity is over.

If your business is based on a product, create a prototype or at least a solid mockup of your product.

If you’re offering a service, have detailed, written explanations prepared.

With your prototype or description of services ready to go, it’s time to see what the market has to say.

The goal here is to get feedback that helps you improve your product.

Start reaching out to people you trust.

Then, test the waters in a larger segment of the market if your initial feedback is mostly favorable.

Often, this step requires you to develop a thick skin.

You will encounter naysayers and people who don’t believe your product or service is a great as you think it is, so be ready to hear some negative things about your idea.

But, without this feedback, you won’t learn about problems you may have overlooked or what your prospective customers actually expect.

7. Make Adjustments Based on Feedback

Once your feedback is gathered, it’s time to make some adjustments.

Look for patterns in the information you received and see if you can make improvements that allow your product or service to be more attractive to the masses.

8. Cover Your Bases Legally

If it looks like you have a potential unicorn on your hands, now you need to make everything official.

There are many legal aspects to starting a business, and you want to get them handled as soon as you can.

This will involve things like:

  • Choosing a business name
  • Choosing a business structure (corporation, LLC, partnership, etc.)
  • Registering your business
  • Obtaining a federal and state tax ID
  • Securing permits
  • Acquiring licenses
  • Setting up business bank accounts
  • Filing patents, copyrights and trademarks

Though you may be able to manage on your own, it’s wise to consult a lawyer just to make sure everything is covered.

9. Create a Professional Business Plan

A business plan is a thorough, comprehensive overview of what your company is and how it will evolve over time.

Your business plan should include a:

  • Title page
  • Executive summary
  • Business description
  • Marketing strategy
  • Competitive analysis
  • Product or service design and development plan
  • Management and operations plan
  • Financial plan and funding details

10. Obtain Funding

When I started my company, I began with the bootstrap approach — I used my own money to fund expansions since I had it available.

I can attest, however, hat this isn’t the easiest approach, especially if you aren’t the only person pursuing a particular idea.

Often, it’s a race to get to market first (especially in the technology industry) so having limited funding can make things incredibly challenging.

If you want to grow faster, you’ll need venture capital.

I obtained my first institutional investment in 2008, in the amount of $4 million, and it gave me the ability to stave off the competition by rocketing forward faster than I would have been able to otherwise.

Depending on the business you choose to start, you might not need to go that route.

You can work to land a small business grant, gather investments from friends and family, connect with an angel investor, or even get a regular bank loan.

11. Fully Develop Your Product or Service

Now it’s time to fully develop your product or service and take it to market.

You’ll need to:

  • Secure a manufacturer (for products)
  • Acquire necessary services (website hosting, shipping companies, etc.)
  • Creating pricing strategies
  • Choose a sales platform (online, retail, etc.)
  • Select a payment processor
  • Develop packaging

12. Hire a Team

Hiring a team can make a significant amount of difference, especially when you need to scale up quickly.

Whether you choose to bring on full-time employees, hire contractors, or secure services from freelancers, getting subject-matter experts on your side is a must.

No entrepreneur knows everything, so hiring a team that can cover your weaknesses will let you move forward quickly.

However, managing personnel involves a lot of time, energy, and paperwork.

If you want to streamline this portion of your business, use a payroll service like Paychex or Gusto.

They can handle the legal nuances of maintaining a workforce and are more than worth the cost.

13. Generate Sales

Once you have a product or service ready and a base of operations, it’s time to “go live.”

In the beginning, you need to concentrate on making sales, and that means dedicating yourself to the marketing process.

Embrace every marketing avenue available to you, especially low-cost options.

Reach out to potential customers on social media through advertising and by engaging with them.

Place those cold calls to prospective buyers.

Create videos for YouTube that showcase what you have to offer.

Leave no stone unturned!

14. Focus on Growth

Once the sales start rolling it, there’s still a lot of work to do.

Now, you’ve entered a phase where focusing on growth is a must, allowing you to expand and generate even more sales.

In some cases, expanding your marketing efforts (and budget) may be the best move. It lets you get your business out there, increasing your reach.

Additionally, concentrate on offering exceptional customer service.

Buyers are more loyal to companies that treat them right, and may even pay a premium for a positive experience.

Maintain those relationships!

Otherwise, you’ll lose out on more than just repeat business as negative word-of-mouth will cost your customers too.

You also want to keep an eye on all of your expenses — keep your eye out for ways to reduce costs or improve efficiency, allowing you to become more profitable.

15. Keep Improving!

If you want your business to thrive long-term, then you need to improve continuously. Strive to be better every step of the way by embracing innovation and the evolution of your product or service.

Additionally, keep learning at the core of your company.

Gather feedback at all times and consider how you can take what you have to offer to the next level.

Lastly, never take your eye off the competition.

By monitoring your market and your competitors, you can see what’s on the horizon, giving you a chance to get and stay ahead.

There you have it! Wordstream kept improving and growing, and continues to grow to this day under its new owner Gannett. With a unicorn idea and an entrepreneurial spirit, there’s no limit to what you can do.

Photo via Shutterstock

This article, "How to Build a Business with an Exit Strategy in Mind" was first published on Small Business Trends



Floyd Mayweather and DJ Khaled to pay SEC fines for flogging garbage ICOs

Floyd Mayweather Jr. and DJ Khaled have agreed to “pay disgorgement, penalties and interest” for failing to disclose promotional payments from three ICOs including Centra Tech. Mayweather received $100,000 from Centra Tech while Khaled got $50,000 from the failed ICO. The SEC cited Khaled and Mayweather’s social media feeds, noting they touted securities for pay without disclosing their affiliation with the companies.

Mayweather, you’ll recall, appeared on Instagram with a whole lot of cash while Khaled called Centra Tech a “Game changer.”

“You can call me Floyd Crypto Mayweather from now on,” wrote Mayweather. Sadly, the SEC ruled he is no longer allowed to use the nom de guerre “Crypto” anymore.

Without admitting or denying the findings, Mayweather and Khaled agreed to pay disgorgement, penalties and interest. Mayweather agreed to pay $300,000 in disgorgement, a $300,000 penalty, and $14,775 in prejudgment interest. Khaled agreed to pay $50,000 in disgorgement, a $100,000 penalty, and $2,725 in prejudgment interest. In addition, Mayweather agreed not to promote any securities, digital or otherwise, for three years, and Khaled agreed to a similar ban for two years. Mayweather also agreed to continue to cooperate with the investigation.

“These cases highlight the importance of full disclosure to investors,” said Stephanie Avakian of the SEC. “With no disclosure about the payments, Mayweather and Khaled’s ICO promotions may have appeared to be unbiased, rather than paid endorsements.”

The SEC indicted Centra Tech’s founders, Raymond Trapani, Sohrab Sharma, and Robert Farkas, for fraud.



Manufacturing Management Software Lets Small Business Improve Profit

Manufacturing management software allows manufacturers increase profitability by tracking inventory and monitoring productivity thereby reducing cost.

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Insurance startup Bright Health raises $200M at ~$950M valuation

A flurry of digital-first insurers are betting they can surpass industry incumbents with a little help from technology and a lot of help from venture capitalists.

The latest to land a massive check is Bright Health, a Minneapolis-headquartered provider of affordable individual, family and Medicare Advantage healthcare plans in Alabama, ArizonaColoradoNew York CityOhio and Tennessee. The company, founded by the former chief executive officer of UnitedHealthcare Bob Sheehy; Kyle Rolfing, the former CEO of UnitedHealth-acquired Definity Health; and Tom Valdivia, another former Definity Health executive, has brought in a $200 million Series C.

The funding values Bright Health at $950 million, according to PitchBook — more than double the $400 million valuation it garnered with its $160 million Series B in June 2017. Sheehy, Bright Health’s CEO, declined to comment on the valuation. New investors Declaration Partners and Meritech Capital participated in the round, with backing from Bessemer Venture Partners, Greycroft, NEA, Redpoint Ventures and others. Bright Health has raised a total of $440 million since early 2016.

VCs have deployed significantly more capital to the insurance technology (insurtech) space in recent years. Startups in the industry, long-known for a serious dearth of innovation, have raked in nearly $3 billion in private capital this year. U.S.-based insurtech startups have raised $2 billion in 2018, a record year for the sector and more than double last year’s total.

Deal count, meanwhile, is swelling. In 2016, there were 72 deals conducted in the space, followed by 86 in 2017 and 94 so far this year, again, according to PitchBook’s data.

Oscar Health, the health insurance provider led by Josh Kushner, is responsible for about 25 percent of the capital invested in U.S. insurtech startups this year. The company has raised a total of $540 million across two notable deals in 2018. The first saw Oscar pulling in $165 million at a $3 billion valuation and the second, announced in August, had Alphabet investing a whopping $375 million. Devoted Health, a Waltham, Mass.-based Medicare Advantage startup, followed up with a massive round of its own. The company nabbed $300 million and announced that it would begin enrolling members to its Medicare Advantage plan in eight Florida counties. Devoted is led by Todd Park, the co-founder of Athenahealth and Castlight Health.

Bright Health co-founders Bob Sheehy, CEO; Tom Valdivia, chief medical officer; and Kyle Rolfing, president

VC’s interest in insurtech isn’t limited to healthcare.

Hippo, which sells home insurance plans at lower premiums, officially launched in 2017 and has brought in $109 million to date. Earlier this month the company announced a $70 million Series C funding round led by Felicis Ventures and Lennar Corporation. Lemonade, which is similarly an insurer focused on homeowners, raised $120 million in a SoftBank-led round late last year. And Root Insurance, an app-based car insurance company founded in 2015, itself raised a $100 million Series D led by Tiger Global Management in August. The financing valued the company at $1 billion.

Together, these companies have raised well over $1 billion this year alone. Why? Because building a health insurance platform is incredibly cash-intensive and particularly difficult given the breadth of incumbents like Aetna or UnitedHealth. Sheehy, considering his 20-year tenure at UnitedHealthcare, may be especially well-positioned to disrupt the industry.

The opportunity here for investors and startups alike is huge; the health insurance market alone is forecasted to be worth more than $1 trillion by 2023. Companies that can leverage technology to create consumer-friendly, efficient and, most importantly, reasonably priced insurance options stand to win big.

As for Bright Health, the company plans to use its $200 million infusion to rapidly expand into new markets, planning to triple its geographic footprint in 2019.

“Bright Health has continued to execute at a fast pace towards our goal of disrupting the old health care model that places insurers at odds with providers,” Sheehy said in a statement. “[Its] current high re-enrollment rate shows that consumers are ready for this improved healthcare experience – especially when it is priced competitively.”



Thursday, 29 November 2018

Meet the five Startup Battlefield finalists at Disrupt Berlin 2018

Thirteen companies took the stage today at Disrupt Berlin, delivering six-minute pitches and demos, then answering free-for-all questions from expert judges. Now that the judges have given us their feedback, we’ve chosen five finalists.

These finalists will all take the stage again tomorrow afternoon to present in front of a new set of judges, who will have time to ask more in-depth questions. Then one winner will be chosen to take home the Disrupt Cup — not to mention $50,000, equity-free.

Here are the finalists. The competition will be live-streamed on TechCrunch starting at 2:05pm Berlin time on Friday.

Imago AI

Imago AI is applying AI to help feed the world’s growing population by increasing crop yields and reducing food waste. To accomplish this, it’s using computer vision and machine learning technology to fully automate the laborious task of measuring crop output and quality.

Read more about Imago AI here.

Kalepso

Kalepso says it can do better than other database offerings out there by melding strong security with high reliability, while filling in the spots where sensitive data can be accessed or obtained in the clear. Its Harvard-educated founders argued that all the existing database services out there are either slow or insecure.

Read more about Kalepso here.

Legacy

Legacy is tackling an interesting problem: the reduction of sperm motility as we age. By freezing men’s sperm, this Swiss-based company promises to keep our boys safe and potent as we get older, a consideration that many find vital as we marry and have kids later.

Read more about Legacy here.

Polyteia

Polyteia is building a platform that would allow city leaders to unify and analyze the data that represents the constituents they serve. The problem, the company says, is that local governments collect a lot of data, but they aren’t always great at organizing and using it efficiently.

Read more about Polyteia here.

Spike

Spike lets family and doctors lend a hand to diabetes patients by sending them real-time alerts about their stats. And the app’s artificial intelligence features can even send helpful reminders or suggest the most diabetes-friendly meals when you walk into a restaurant.

Read more about Spike Diabetes here.



Lyft’s pink-wheeled shareable bikes will be available to rent soon

Lyft has finally given us a glimpse of its forthcoming line of shareable bikes, which the ridesharing company says will be available to rent within its mobile app in select cities “soon.”

The news comes as the $15 billion company announces the final close of its acquisition of Motivate, the New York City-based mobility startup that owns a number of bike-rental services, like Citi Bike, Ford GoBike, Divvy, Blue Bikes and Capital Bikeshare. The transaction was reportedly worth some $250 million.

Lyft brought in $600 million in fresh funding in June from backers Fidelity Research & Management, AllianceBernstein, Baillie Gifford, KKR, CapitalG, Rakuten and others.

Now that its bike deal is complete, Lyft becomes the largest bike service provider in the U.S. That’s a big leap forward for a company that hopes to have the largest dockless bike fleet in the world — outside of China, of course, where companies like Mobike have deployed millions of bikes.

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As part of the deal, Lyft will invest $100 million in New York’s Citi Bike, tripling the number of bikes available to 40,000 by 2023. 

Lyft launched its first fleet of scooters earlier this year in Denver, hot off the heels of scooter-mania, which saw companies like Bird and Lime garner billion-dollar valuations and complete launches all over the world.

The company says the scooters have been a success thus far. In Denver, for example, 15 percent of Lyft rides in 2018 were taken on scooters. The company has also made scooters available to rent within its app in Santa Monica and Washington, DC — a list that will undoubtedly swell in 2019.

Here’s hoping Lyft’s bike wheels are actually pink. If not, I will be gravely disappointed.