The Best Mentors Have Walked a Mile

We are building a base of Mentors for two non-profits to help startups connect with those who are willing.

Mentoring is one of those words without a ubiquitous agreed definition: for TechSandBox, and MIT Enterprise Forum, it is someone who makes a commitment to meet with their mentee frequently and over a long-term period of time. For both organizations, we ask 2-4 hours/month for one year. [More on why later.]

The role of a mentor, versus coach or advisor, is to help in moving the company forward, getting fairly well-versed in its challenges, accomplishments, goals and overall situation.

Being in Massachusetts, there are many resources available, many for free. It can be overwhelming, so how does one find the best? After all, time is the most precious commodity to an entrepreneur.

Here are my Top 5 characteristics:

5. Someone who asks questions and gets you to think. Look for the ‘two ears one mouth’ mentor as your own responses will help you through many situations. Thoughtful questions can make all the difference.

4. Broad business experience. Someone who has run operations, had P&L responsibility, understands business models and finance, or customer acquisition marketing – someone who understands the key pieces and how to get them all in sync.

3. People who do this just to help. See the previous blog on enlightened self-interest

2. Former startup executives. These people know why customers and testimonials matter, why networking works, and why they should help you even when everything isn’t perfect.

1. Former company founders who put their own skin in the game. This is the best as they often have learned how to manage money and resources, understand the personal pressures of family, bank accounts and mortgages that you’re putting on the line, and will avoid using the ‘should’ (‘…you should…’) statement.

Why: To offer deep and pertinent guidance, it’s important to have mentors that are totally up-to-date otherwise you spend each meeting going too far back in time. A sense of being valued and part of the team also comes from greater involvement and communication.

Yes, having industry experience is great as their contacts may get shared once you develop a trusted relationship but the proverbial ‘Rolodex™’ is not the main qualifier.

 

A Fearless Way to Write a Business Plan

Writing a business plan may sound intimidating, but, in reality, most of the hard work has already been done.  A business plan should be written when the official creation of the startup is in the near future, meaning that future strategies and operations are usually already known.  When it comes down to it, the process of writing a business plan is simple: map out what is already known about the business and create a timetable to go along with it.  Writing down desired goals and finances helps identify a clear path that a business should follow.

Every business plan varies based on the company itself and the services offered, but the general sections that should be present are the executive summary, a business description, industry analysis, market strategies, a development timetable, operations outlook, and financial funding.

In the executive summary section, the entire business plan should be summarized in about half a page.  This flat-out tells the reader what the company is about and its future goals.  The business description should glaze over the factors of the targeted industry and the set-up of the company itself.  With an insight into how the company chooses to function, the industry analysis and market strategies sections will be directed at handpicking select plans of action in order to reach the intended consumer base, in addition to recognizing the business’s competitive edge.

After jotting down strategies and descriptions, the creation of a plan is the logical next step.  Creating a development plan comprised of deadlines, consumer goals, and financial stability is a tangible way of mapping out the future of the company.  This combines the development process, operational goals, and financial projections.

Through and through, the point of the business plan itself is to aid a company’s success.  Be sure not to associate it with a negative connotation!  For any extra information on designing a business plan or for helpful templates, visit this site.

Happy planning!

Fast Ways to Raise Money for Your Startup

It is no secret that Corporate America revolves around money.  Funding is one of the most essential requirements of a budding startup.  Knowing where to look can seriously give companies financial advantages and can save them bundles of time.  Through research and experience, we here at TechSandBox have crafted a list of some of the most common ways to raise money for your startup.

With an eruption of new startups in this day and age, technology and media have created numerous platforms that can substantially lessen the burden of finding money.  Crowdfunding is not a new idea, but recently it has grown considerably in popularity.  Crowdfunding is funding a business or project by collecting small amounts of money from a large group of people.  Websites like GoFundMe and Kickstarter are global crowdfunding platforms that offer a simple way to raise money.  By creating a fundraiser with one of these platforms, friends, family, and interested investors can read about the cause and donate fairly easily.  Publicizing a fundraiser may reign a little difficulty but, if successful, can result in hefty gains.

Another way to raise money would be to take out a microloan.  A microloan is a loan of a smaller caliber that is often used in order to support smaller businesses.  These loans are typically under $50,000.  The benefit that banks offer when withdrawing microloans are to focus heavily on the business itself, rather than the credit scores of business owners.  One of the more well-accredited groups that provides microloans is the Small Business Administration (SBA).  The Obama Administration granted over 50 million dollars to the SBA in order for them to work with a variety of banks that issue microloans.  The choice between whether or not to take out a microloan can be tough. To read more about microloans and whether or not they are right for you, check out this site for more information.

One strategy that is often overlooked and can spread expenses amongst multiple people is finding a partner.  Starting a business alone can be stress-inducing and provide out-of-reach costs.  A business partner can lessen that chaos by taking on half of the work and, most importantly in this case, half of costs.  To find some quick tips on how to find the perfect partner, go to this site for some helpful advice.

Last but not least, pitching to investors can substantially increase cash flow.  Pitching ventures gives others the opportunity to dish out commentary on company ideas and to, hopefully, invest in those they believe will succeed.  The pros of pitches go beyond that of monetary benefits, as they also provide mental and physical reassurance in the company itself, which can put the racing hearts of entrepreneurs to a rest.  With all these benefits in hand, all entrepreneurs need is a group of investors to pitch to.  Look no further!  On July 24th, TechSandBox is holding a Piranha Pond Pitch Party.  The set-up will be similar to the television show Shark Tank (minus the sweaty palms and harsh investors).  To learn more about Piranha Pond and to find a list of our programs, please visit this site.

Whichever funding route you choose, remember to carefully consider every option.  We at TechSandBox are here for you during your journey to success.  Feel free to attend one of our networking events or programs to accelerate your business further.  Happy funding!