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5 Characteristics of an Entrepreneur Bound for Success

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StrategyDriven Entrepreneurship Article | Success Factors | 5 Characteristics of an Entrepreneur Bound for SuccessThere is a famous quote that says “ Success is when your photos are uploaded on Google instead of Facebook.”

In just a short span of time, to be precise just 4 years, we were able to rank on the first page on Google. When we started Hostingpill there were already players in the market but that never de-motivated us from marching ahead.

As an aspiring entrepreneur, you must have seen many ups and downs in this journey and of course, you must have read the biographies of leading entrepreneurs, but today we wish to share with you our personal views which we think are very much necessary for any entrepreneur to be successful.

1. Humility and teamwork.

Humility is a quality of ‘Quality leaders.’ It does not come to all easily. As a leader, we should learn to be humble from the ‘water’. It does not have pride, stays grounded and whenever it is faces a hurdle, rather than going against it flows in harmony with it.

So also, it is necessary to attribute the success of an organization to the team collectively. This helps in strengthening the bonds and also motivates the employees to do better. It inculcates the sense of ‘we-ness’ in the minds of the employees which contributes to productivity.

2. Learning from experiments

In the words of Thomas Edison, “ I haven’t failed. I have found 10000 ways that don’t work.” Young entrepreneurs need to keep on experimenting with new techniques to ascertain which works and which does not. They never fear failures or setbacks.

Although experiments are vital they are not applied in toto. They are applied in a phased manner to study the effects.

It is only after a detailed study, that the desired changes are implemented.

3. Risk managers

Yet another characteristic of successful entrepreneurs is that they are risk managers.

They know the potential risks associated with business and always take calculated risks.

They believe in only one thing that ‘ Fear is temporary, Regret is forever.’

4. Knowing ‘why’ behind every task.

Dr. Stephen Covey in his book ‘ 7 habits of a highly effective people’ states that one of the habits of successful people is that they always begin with an end in mind.

Just as an athlete knows where he has to reach to finish the race, similarly a successful entrepreneur knows where he wants to heed and what are his ultimate goals.

All his plans are centered around these goals and being aware of his goals beforehand prevents him from drifting apart from his set standards.

By knowing the ‘why’s’ in advance he is in the position to make the most judicious use of the resources.

By knowing the goals in advance he is in a better position to guide his employees.

The employees too can have a clear cut idea of what is expected from them. This reduces the friction between the entrepreneur and the employees.

5. Open to changes.

Successful entrepreneurs are always open to changes. They practice the principle ‘Nothing is permanent, but change’.

They stay abreast of the latest technological changes and keep on changing themselves to stay updated.

To stay updated they constantly need to keep watch on new happenings and also learn new things.

There is a possibility that you may miss a big chance if you are not ready to change and adapt yourself.

Conclusion

Having own business is rewarding and exciting. But business certainly requires more dedication and effort rather than a job.

In a job, you are working for someone else and getting the salary whereas in business you need to motivate yourself to work.

You are the boss. So unless you are a self-disciplined person, it is hard to stay ahead.

With a proper mindset and ability to adapt to the changes, you can strive ahead to become a successful entrepreneur.

About the Author

StrategyDriven Expert Contributor | Chris WagnerI’m Chris Wagner, Head of Content @ HostingPill. I regularly write about Hosting, Web servers and WordPress. I have more than 9 years of Industry experience.

10 Things to Consider When Hiring a Website Developer

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StrategyDriven Online Marketing and Website Development Article, 10 Things to Consider When Hiring a Website Developer

Forming a strong team of professionals who are on the same page with you is vital and at times very challenging. But let’s face it, the success of your business in much depends on the people who are helping you sail your projects towards the rewarding revenues.

When it comes to finding your perfect developer, there are dozens of things to take into account. For starters, the number of possible existing languages of programming can be compared to that of spoken ones! Not to mention the plethora of platforms on which websites and apps can be built on.

To help you get a better understanding of which things to pay attention to most during your hunt for the ideal developer, here’s a comprehensive list of top tips that should help you in finding the perfect match.

1. Project-based or ongoing?

One of the first questions you should ask yourself prior to making any search attempts is whether you’ll need a developer to join your team “for the long run” or do you need someone who’s more or less a “one-time deal”?

Depending on your answer, you’ll either be narrowing it down to a talented person for a full-time position or start looking for a skilled contractor who’d assist you in your project and with whom you’d part ways after the work is complete.

In case you’re leaning towards the first option, undoubtedly, you should attempt to meet the candidate in person simply to get to know them better. After all, you’ll most probably be communicating with him/her frequently, so make sure that you and your interviewee “click”.

If your needs comply with the second option more, most likely you’ll be hiring a freelancer for the job. Of course, this doesn’t mean that you’ll be working together for a mere couple of weeks. In this scenario, it all goes down to the scopes and volumes which will need to be tackled. And even your project-based contract with a freelancer can last for years, so choose your candidate wisely!

2. Existing project vs Starting from scratch

Based on your necessities, it is important to understand that there’s a huge difference between advancing what you currently have and coping with website construction right from step one. Building from the ground up implies a different (usually larger) scope as new projects require thorough planning alongside quality implementation. On the other hand, dealing with already existing material stipulates additional time for audits or conducting optimization research, just to name a few.

Again, having a clear vision of what your needs are and outlining it in your job description will help you while seeking the right person for the job. The candidate’s previous work experience matters as it’ll safeguard you and maybe at times help you benefit from earlier practices, for example, you may obtain some ready-made solutions.

In any case, giving your prospective hire a test assignment to see “the magic” in action is considered a wise approach!

3. Area of expertise

In some cases, you’ll need to pay extra attention to the field that this or that developer specializes in. Are you sure that the candidate you’re considering is a developer and not a web designer? Is the candidate a front-end or back-end specialist? Or maybe full-stack? The list of alternatives can be lengthy.

Know what platform your website has been built on or what you plan to build it on. This way you’ll quickly weed out more than half of the potential candidates. Asking to view your potential employee’s portfolio can surely do you good as well.

Just to make the picture more transparent, here’s a common example. For instance, you’re an owner of a midsize online retail business and have your eCommerce website built on one of the most popular platforms, Magento. The super flexible platform offers as much customization for your site as you can possibly imagine, meaning that you have the opportunity to transform your most futuristic ideas into reality. To run this store without any glitches from the technical side and to boost your online customer experience whilst staying in step with the trends, you’ll find no better solution than to hire dedicated Magento developers for the job. Magento is without the slightest doubt a tricky thing to work with from the point of view of a developer, thus, rich earlier work experience with the platform and in-depth knowledge of the language, libraries, and systems should be key when choosing the right Magento expert to help grow your online business.

4. Is your candidate a fast learner?

Product knowledge, by all means, signifies value you can gain, so ideally your future employee should understand your needs. It’s among the “musts” to have the person working for you to be willing to find out more about your business, other players on the market, and the overall future direction of the field. Why? This can safeguard you from investing in some longstanding decision regarding your online presence which can soon become outdated.

Whether we like it or not, change is a constant process that always progresses. Thus it’s important to be able to adapt. Your developer will truly be great provided that he/she is constantly improving his/her knowledge and expanding the skill set. Each time something new appears in the world of coding, your IT specialist should keep pace. If that’s not true, bad news for you. Therefore, the ability to learn new things quickly is a major point to take notice of.

5. Communication, communication, communication

It may come to a surprise but not all developers can boast strong communicative skills. Moreover, their language is often filled with dozens of programming terms which can be hard to understand. Do your best to determine if your communication with the candidate is (or will be) effective since from the long-term perspective you and your team will most likely need to touch base with the developer often in regard to the project. And understanding each other with ease should be one of your priorities.

To be on the safe side, the golden rule is to avoid vagueness and be specific about your expectations, requirements, etc. Your first chat with the candidate may already give you the impression of whether you’ll hit off or not.

6. Detail-oriented and attentive

Seeing eye to eye with your developer is certainly a perk. And perceiving how your ideas become “live” within the deadlines is great. But are all even the smallest details taken into consideration after a task is claimed to be “done”?

The quality of the completed work can be measured in different ways, for instance, how well it passes the testing stage. It’s not a crime to make some minor mistakes, we’re all human beings; if something needs to be corrected it should be. Yet how many times the task spins in the testing circle can be an indicator worth noting, as constant do-overs won’t get you far, agree? Perhaps try to test the water on the subject when meeting your candidate and don’t hesitate to ask whether the person can define himself as attentive.

7. Time management

Talent and knowledge is one thing, managing and using your time wisely and effectively is another. The last thing you’d want to do is to take on someone who easily falls for distraction. Even if a real IT guru is sitting in front of you, have your guards up regarding time management matters as, bottom line, this person will be responsible for handling your requests.

To be consistent, inquire about the methods and ways your possible co-worker handles work time or which hours in the day has he/she found to be the most productive ones. This should make the matter’s curtain come down a bit.

8. Self-motivation and initiative

Being able to work in a team is a quality to cherish, staying motivated is another no less vital one. Don’t make the wrong conclusion that the candidate that’s right before you isn’t self-motivated if you don’t see some hyper enthusiasm straight away. It’s fine to be humble during interviews or as you’re making first communication steps with someone new.

Ask your potential employee what motivates them and how he/she overcomes obstacles when dealing with something unknown. This should surely help you get a better idea.

The same goes for being the kind of person who can take initiative. Having a general understanding is one thing, but showing interest and having the ability to give an opinion that’s backed up by facts and from which the whole team can benefit from is a trait you’d also want to try to detect before deciding to hire a developer or not. “No questions asked” guys aren’t always the right choice.

9. Geographics

To be fair, the digital world of the 21st century that we live in today has given us the unmatched privilege and ease of communicating with each other from practically any point on the planet. And when you come to think of it, does your developer’s location really matter?

This question is a point of common debate since many people prefer to back up the opinion that as long as the work gets done, who cares from which point on the map your developer is working from.

Yet for the sake of the convenience of your communication, it has recently become habitual to give preference to working with a developer who is in (or at least close to) your timezone rather than to the one who’s doing so remotely. The thing is that time difference can play a bad trick with you, and it appears that tasks get completed faster and better when thousands of kilometers don’t separate you from your developer. But again, things are not always the same.

10. Where to look for a developer

As mentioned earlier, if you’re in search of a freelancer, you may easily make use of one of the many platforms, created especially to connect you with developers. As such, Upwork, Gun.io, Freelancer.com, and Hubstaff Talent are a couple of examples of places to get you started.

Need someone to join you in-house? Consider opting for the popular and efficient professional network of LinkedIn which has won over the hearts of recruiters worldwide.

All in all, looking for the best possible fit usually takes time. It’s more than safe to say that you shouldn’t expect the candidate to check off every single point on your list of expectations straight away. But if you’ve found the perfect match for you, do your best to have this collaboration going for many years to come since, without a doubt, your developer can help you grow your business!

How to Make Your Office a More Vibrant Place to Work

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StrategyDriven Managing Your People Article |Vibrant Workplace|How to Make Your Office a More Vibrant Place to WorkIf your business is going to succeed, it needs to have a base from which to operate that reflects its values and facilitates good work from your employees. A workplace shouldn’t be dour or boring; you get the most out of people when they’re working in a place where they enjoy spending time. There’s nothing wrong with a workplace being vibrant; in fact, that’s the way it should be. Here are some ways to make your office a more vibrant place to work.

Use an Open Plan

One of the quickest and easiest ways to make your workplace more vibrant and dynamic is to break down barriers. You can do this by making the layout open plan. That way, people aren’t shut away in their cubicles away from what other people are doing. It makes communication and teamwork far easier and more viable. So, if you want to switch things up, this is one of the ways of doing it.

Make it Bright and Light

A workplace needs to be bright and light if you want people to feel positive there and you want them to enjoy working there each day. A dark and dingy workplace is never going to help you achieve the things you want to achieve because people will hate being there and lack motivation. So, make the most of natural light and ensure the place feels bright and welcoming as soon as you step inside.

Redecorate It

Maybe it’s time you redecorated your office too. If it’s been a while and the place is starting to look a little dull and uninspiring, changing things up with wall art could have a huge impact. You can make use of Custom Made Stencils to put your stamp on the office walls with your logo or brand name. Simply make it feel fresh and bright once more. It might not sound like much, but it’ll have an impact, that’s for sure.

Hire the Right Personalities

Hiring the right people is another thing that’ll help your workplace to feel a little more vibrant. People with the right personalities will help the company to shine and they’ll bring people together. You don’t want too many negative or divisive people working for your business because that’ll just make success harder to find.

Encourage Team Working

Finally, you should think about how you and the other people running your business might go about encouraging everyone to work together a little more closely as a team. It’s not always easy to make this happen but it’s worth at least making an effort. When everyone’s collaborating, the place immediately feels more vibrant and alive.

As you can see, there are tons of ways of making your office a more vibrant place, so all that’s left for you to do now is start putting some of these ideas into action. By doing so, you’ll turn your workspace into a place your employees enjoy being each day of the week, and that can only be a good thing.

Just for Entrepreneurs: How to Choose the Right Financial Adviser

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StrategyDriven Managing Your Finances Article | Financial Adviser | Entrepreneurship | Just for Entrepreneurs: How to Choose the Right Financial AdviserWhile most entrepreneurs know their industries well, many are not experts when it comes to money. To help entrepreneurs succeed financially at work and in life, they need both a great CPA and a trustworthy financial adviser. Ideally, with the right people, one firm could serve both roles. It’s possible, in my opinion, to work with two different firms, but coordination is essential to keep critical information from falling through the cracks.

What are the characteristics of the “ideal” adviser? To me, it’s all about trustworthiness, the existence of a solid process, and a holistic approach that considers all aspects of an entrepreneur’s life and business.

Defining “Trustworthiness”

How do you know whether your financial adviser is trustworthy? The perception of trustworthiness is subjective, but to me, it’s more than just likeability. It’s also more than friendship, or a reputation based on a referral from a friend, boss, relative or coworker. By “trustworthy,” I mean an adviser who isn’t considering his or her wallet when offering guidance: a person who always puts the client’s agenda first.

It’s true that some financial advisers are required to place their clients’ interests before their own because of the fiduciary standard established under the Investment Advisers Act of 1940. However, that standard only applies to certain types of advisers in specific situations, all of which the layperson is usually unaware. Finding an adviser who is required to meet the standard is one thing; finding an adviser who embraces the standard as a mindset, and who structures fiduciary processes to support the standard, is ideal. Look for an advisory firm accredited by the Centre for Fiduciary Excellence, or CEFEX. CEFEX-certified firms voluntarily undergo annual audits to verify their adherence to best-interest standards. This is supplemental to regulatory or government oversight.

Why Process Is Important

Your financial well-being is a big-picture scenario. All of the moving parts need to work together, and your adviser needs to be confident that his or her process compensates for blind spots and avoids errors. In his book, The Checklist Manifesto, author Atul Gawande discusses the difference between someone with “aptitude,” (the natural ability of a person to be able to accomplish a certain skillset) vs. “eptitude” (the application of knowledge correctly and consistently). High-performing advisers demonstrate eptitude by having strong processes in place to identify and understand your needs, and monitoring those processes to make needed adjustments. Any adviser should provide a great deal of clarity about what you can expect from the relationship. In addition, he or she should be skilled and confident in connecting your business growth with integrated and holistic wealth management that includes tax, financial and investment strategies.

It’s important to understand that a good process informs strategies, which determine the tactics you and your adviser will take toward your financial well-being. Entrepreneurs know that complexity (and sometimes, chaos!) can be the rule in getting a business off the ground. Having a trustworthy adviser who can guide you through these types of situations will help you sleep better at night.

The Need for a Comprehensive Approach

Entrepreneurs have far different financial situations than those with regular, salaried jobs, yet most advisers provide only investment consulting. Entrepreneurs need more. A financial professional suitable for an entrepreneur should ask such questions as: What was your objective in setting up the company? Was it just to have an exit strategy sale? Was it to provide a service to your clients on an ongoing basis, and then to ensure that continued as your legacy? Do you want to help your employees save for retirement, and how? Who, if anyone, are you grooming to take over your business? How can you minimize the impact of taxes that diminishes your wealth over time?

An adviser who can go beyond investment consulting has to have a very different mindset than the average adviser. The shift is from that of a master-builder, as Gawande describes in The Checklist Manifesto, to a more collaborative mindset. In premodern times, as the great cathedrals of Europe were constructed, the master builder held all of the necessary knowledge in his head and directed huge teams, but the projects were not collaborative. Today, complex large structures involve a team of architects, engineers and others who work together in constant communication. The financial services industry is on the cusp of a similar shift. Instead of working with one “perfect” adviser, entrepreneurs should look for firms with diverse master-builder teams who collaborate with, and on behalf of, the client to find creative solutions that work well for the inherent complexity of entrepreneurs and their businesses.

Choosing the right adviser is well worth the time and effort, even for the busiest entrepreneur. With the right person to watch your financial back, you’ll have the freedom to focus on what really matters to you: your family, your goals, and your company.

About the Author

StrategyDriven Expert Contributor | Wayne B. Titus III, CPA/PFS, AIFAWayne B. Titus III, CPA/PFS, AIFA founded AMDG Financial and AMDG Business Advisory Services in 2002 based on his 15 years’ experience at two large accounting firms working with Fortune 50 clients. He dove into entrepreneurship to make a bigger impact on people’s lives. As a fee-only fiduciary adviser, his loyalty is to his clients: he places their interests ahead of his own or his firm’s. With assets of more than $150 million, AMDG Financial integrates tax, financial and investment strategies to help clients make financial and life transitions successful on purpose. The company’s credo is, “From financial wisdom, better stewardship.” His latest book is The Entrepreneur’s Guide to Financial Well-Being (Lioncrest Publishing, March 2019). To learn more, visit amdgservices.com.

What is the importance of pre-money valuation For Your Business?

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StrategyDriven Entrepreneurship Article | What is the importance of pre-money valuation For Your Business?Pre-money valuation is a company’s liquidity before it earns the cash from an investment round. With the contribution of cash to the balance sheet of a business through the shareholder value, the post-money value becomes stronger due to the additional cash earned.

Importance of Pre Money Valuation

A pre-money valuation calculator by calculators.tech helps finance professionals to precisely measure the profit that they will earn after specific investment. Although pre-money evaluation is essential, it is not the most important consideration when taking money, especially when taking it from venture capital. Most of the time, the deals offered by companies are pre-money valuation.

The value-added that an investor will bring to the table is especially important for venture companies for the first time. Startups should take the lower pre-money bid if this business has the potential for a much larger value-added than another, offering better pre-money funding, but the added value opportunity is not the same. The long-term effects of the added value are more than compensatory to the lower pre-money.

Example of Pre Money Valuation

The following is an example of a business undertaking a finance process and its pre-money valuation.

Let’s suppose there is a company with a pre-money valuation of $100 million. There are a total four million shares in the company. The price of a single share will $25. Now the company wants to increase $40 million to the existing equity. So, the company has to release 1.2 million extra shares. Company will add $40 million in its pre-money valuation of $100 million, the post-money valuation will become $140 million. Now, the company has 5.6 million shares, but the price of shares is the same, $25.

Share Price and Equity Value

The pre-money valuation is calculated for the equity of entire business. It does not apply to the share price of the company. Although the capital stock is influenced by the acquisition of extra cash, the share price is not affected.

Equity Value and Enterprise Value

The enterprise value of a company is the market value of a business. It does not include the capital structure. It should be noted that a round of financing does not influence an enterprise’s value. As the equity value of a business rises in the capital, the enterprise value tends to remain the same.

Effect on shareholders

It is important to emphasize that before the transaction, the current shareholders will be reduced in ownership percentage by issuing new shares. The founders had 1 million shares, or 25% of the total shares, before increasing the equity value in the above case. After the increase in equity, founders will have the same 1 million shares but 17.85% of total shares (5.6 million). On the other hand, value of the shares of the founders will remain same.

Valuation of Equity Shares

There are three methods for the valuation of equity shares based on the balance sheet.

Book Value

Book value is the total value of a company split into several remaining shares. You can calculate the net worth by adding equity and reserves of the company minus expenses.

Liquidation Value

Liquidation value is calculated differently from the above-stated book value. It uses the valuation of the liquidation funds, which are often less than the books and market. For the calculation of the liquidation value of the company, liabilities are excluded from the liquidation value of the assets.

Replacement Cost

Replacement costs offer another method to evaluate the valuation of a business. The substitution or current cost of an asset is the amount of money to substitute the asset by purchasing a similar asset with the same future capabilities. Assets and liabilities in replacement costs are measured at their replacement value.

Venture Capital Pre-money Valuation

The valuation of the cash obtained from a funding round significantly affect the equity value of the new companies. That is why the statement is used so often because a business could see a dramatic change in its valuation.

Methods of Valuation

If a company undergoes a funding process, it will have to address the value of the company with investors. Investors can make strong arguments if they don’t find the value of company according to their expectations.

There are several methods for the valuation of a business or a company.

  • Precedent Transactions
  • Comparable Companies
  • Discounted Cash Flow

Formulas for Pre and Post Money Valuation

There is no standard method for estimating pre-money valuations of a company because they completely depend on the worth of the business.

Post Money Valuation

Post Money Value = Pre Money Value + Value of Cash Added

Pre Money Share Price

Pre Money Share Price = Post Money Value / (Previous Shares + New Shares)

Filling Gaps of Valuation

Since a company’s worth can be debated extensively, and investors usually expect a highly optimistic market, Venture Capital companies typically utilize preferred shares to address the valuation discrepancies.

There are a lot of advantages for venture capital companies to receive preferred shares.

  • Participation rights can be further enhanced
  • Anti-dilution privileges may secure the share from further dilution
  • Preference for liquidity is the first paying out when the company is sold
  • Preferred returns have a preferred investment return rate

Since all of the characteristics above have an added value, the preferred shares of the venture capital business are worth more than the rest. This ensures that they are willing only to buy preferred shares that are more expensive at a less desirable common share level, rendering their return on investment more appealing.

Wrapping-up

Financial planning doesn’t leave an investor comfortable until his/her business performs as per expectations. It is something that follows and sticks with you throughout your career, even if you are planning for a startup or a company with thousands of employees. You should probably hand it over at one stage to a professional who doesn’t just learn but love to do that. You must get to know the mechanism until then.