Circles and Connections

Last month, I blogged about the importance of networking and offered a few stories of network connections and outcomes as examples.

Networking is really about relationships and connections and give-and-take. It is typically, not a single transaction. Value doesn’t often come immediately.

I was telling a story to an MBA student who is at Babson College just this past weekend:

When I was in graduate school, one of our assignments was to interview a successful business person – someone who really grew something substantial. I’m not sure why, but the company, Thermo Electron, appealed to me (this was in the 1990s and Boston University had one of the few entrepreneurship programs; I also love automation and sensors).

I remember telling my professor that it’d be hard to get a high level CEO to talk to me, a lowly student. He encouraged us to try, saying that we’d be surprised. So, I did.

And George N. Hatsopoulos (CEO) called me back!

There’s more.

Years later, I meet this woman, Marina Hatsopoulos, during a networking program (I think it was the MIT Enterprise Forum). I think to myself, what are the odds with that last name ….

Marina is an angel investor. We kept in touch. She had been involve in the Nantucket Conference (which I’d love to go to but have all my money involved in making TechSandBox happen).

When I wanted to put together a panel of all women investors in July, guess who I reached out to? And guess who served on that judging panel?

Thank you, George. Thank you, Marina….

Circles within circles.

The power of networking

Peter is an entrepreneur in our co-working space at TechSandBox (TSB). He was developing his software platform and happened to be chatting with Alan, another entrepreneur (who happens to be an investor, too). Alan had invested in a software company that did what Peter needed. Voila. Saved Peter a lot of search time.

Lisa and I met at a program at the WPI Venture Forum, and she soon joined our group of Volunteers on the Marketing Committee (which she later chaired). When we started TechSandBox, Lisa came to help here too. When she was ready to launch her new workshop on creating Joyful Work, she asked to use a meeting room here. Well, after all the hours of help she’d contributed, we didn’t charge her. And, we added the workshop to our calendar. At the workshop, Lisa met another friend, Mattie, who came to Lisa’s workshop because Mattie gets the TSB emails. Mattie had helped me in a job search years ago. Mattie’s friend came to the workshop too and introduced Lisa to the folks at a very prominent university in the region that is now interested in Lisa’s workshop.

Ellis has developed an IoT platform for use in gathering retail analytics. Ellis got invited to apply to the Mass Tech Leadership Council’s unConference because MTLC extended an invitation and discount to apply to Partner organizations — their network.

It’s all about the network.

If you’re not actively engaged, and giving and taking, then you’re not getting as far as you could as fast as you could.

And THAT can make all the difference.

How to Find the Perfect Business Partner

The road to running a harmonious business often starts with having the right business partner.  Entrepreneurs looking to start their own businesses benefit the most from co-founders.  The wrong partner can commit all sorts of damage to a well-thought out company.  Investing some serious time in order to evaluate who the best co-founder could be will result in long-term benefits.  Here are some things to think about when choosing the right partner for you.

Have you worked with this possible partner before?  Selecting someone that you have amicably worked with in the past is advantageous.  It proves that you and your partner can co-exist in a professional environment while efficiently getting work done.  There is a large difference between already having worked with someone and picturing how it would be to work with someone in the future.  People have the ability to surprise, so working together gets those surprises out of the way.

Would this partnership change the relationship you already have?  Working closely with another person carries the possibility of the relationship turning sour.  Instead of working with a good friend that you have known for a year, how about working with a co-worker that you have known for ten?  If the relationship between you and your co-founder is ironclad, then this marriage of minds should end well.  This being said, cautiously tread into a union between two family members.  Though you may have known the person for your entire life, communicating with them professionally is completely different.

Do you and your possible partner share the same goal for the company?  Your co-founder should be as interested as you are.  If you both agree on the goals stated on your business plan, then you will both work towards a mutual interest.  These goals and expectations should be laid out well before any talk of partnership begins.

Lastly, do you trust your partner?  Trust is by far the most important mutual understanding that a partnership should have.  There should be absolutely no doubt in your mind when having to share confidential information with your co-founder.  Trust is mutual, so you must both trust each other as much as you trust yourselves.

Be sure to ask yourself these questions before joining up with your partner. Before you take the plunge, remember to enjoy the view first.

For a few more tips on how to find a strategic alliance, consider visiting this site.

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!