Getting Started as a Young Entrepreneur in the Midwest

WRITTEN BY RYAN FRANKLIN, BLOGGER AND YOUNG ENTREPRENEUR

Are you a Midwesterner who has an amazing business idea, but think you might be too young to start working towards it? Don’t think that way! You’re never too young to start chasing your dreams. Plus, the Midwest is a great place to launch a business. Startups are flourishing all over the region, due in part to Midwestern values like an enterprising attitude and the willingness to help out our neighbors.

So you have your idea and you’re in a great location; what’s next?

Establish Your Business’s Name
Get the fun stuff out of the way first by letting your creative juices flow. Once you have your idea down, choose a business name and then get it registered with your County Clerk’s office. This way, no other company can come along after your business is established and use your business name legally. Remember, this is not the same thing as getting a trademark of your logo or a copyright of written content on your website. Look into the U.S. Patent Office for steps on doing that. Once you have registered your business name, get online and purchase a domain name. It should be as close to your business name as possible, though you may have to get creative. Set up the placement page so visitors will know your site is under construction, and then create a direct marketing channel by obtaining visitor’s information. This way you can send out a mass email promotion when the site goes live. Avoid spamming—your customers will appreciate it!

Write a Business Plan
Because you are young and have less business experience, it’s likely that you will have to raise some money to achieve your startup capital. Creating a good business plan will be essential for seeking outside funding of your business, and it will also keep you on track on those days when you feel in over your head (and there will be days like that!). Having a business plan will maintain your focus by laying out the future of your business step-by-step. Sections of your business plan that should be included are:

1. Cover Page – Business Name, Address, Phone Number, Website, Logo.
2. Purpose Section – A short summary of the purpose of your business and how it will stand apart from others.
3. Business Structure – How will your business structure be set up? Sole Proprietor, Partnership, LLC, Corporation? 
4. Product or Service – Give more detail about your product or service. Include pictures.
5. Client’s Needs – How will you meet the needs of your clients? 
6. Financial Table – How much will you charge? Expenses of business?
7. Time Table – Break down by quarter what the goals and expectations are. Explain where funds will be spent in company.
8. Management and Staff – List founders, managers, staff, volunteers, vendors, etc. 

Start Marketing
Now that you’ve done all that hard work, there is still one more important thing to consider: marketing. Sometimes, the toughest part of getting your business off the ground is getting your name out there in front of those potential consumers. Plus, learning to set your business apart from the rest is an ever-changing process. However, there are a few tried and true methods to get going:

• Design business cards and flyers to advertise your website. 
• Link your website to every social networking site that makes sense for your business.   
• Create a legitimate SEO campaign to maximize your website’s traffic. 
• Generate traffic to your site through search engines and be select with the ads you allow on your site. 
• Produce great web content.  Remember, there’s nothing worse to an online shopper than landing on a page that’s cluttered with junk. Be mindful of your web content! 

Finally, it is extremely important to remember to take advantage of your supportive community. Don’t overlook any way to network and get your name out there. No connection is unimportant when you are getting your business off the ground!

Ryan Franklin is a blogger and young entrepreneur who writes on behalf of Ordoro.

Get Your Startup Running Lean with Kauffman Labs and Ash Maurya

Ash Maurya, author of Running Lean.

Most new products fail.  It's an grim entrepreneurial reality.  But why do these products fail?  Is it because they are bad ideas?  No.  Is it because entrepreneurs waste money, time and effort in the process? Yes.

This entrepreneurial dilemma is the reason Kauffman Labs is hosting a new workshop, Running Lean, presented by Ash Maurya, author of Running Lean and founder of Spark59.

What's Running Lean all about?
Running Lean is a 1-day, hands-on workshop here in Kansas City where entrepreneurs can learn a systematic methodology that raises their odds of building successful products.  Running Lean, developed through rigorous testing of the Lean Startup, Customer Development and Bootstrapping Techniques, has successfully been applied to dozens of products in many different industries.

What will I learn?

• How to define problems worth solving
• How to document a business model
• How to find early customers and get them to want to pay
• How to systematically test a business model
• How to build and measure what customers want 

What's the Running Lean schedule look like? 
It's a full day...make sure you get some sleep the night before!

9:00am:    Coffee, tea, bagels
9:30am:    Running Lean overview
11:00am:  Part 1: Document your plan A
12:00pm:  Lunch
1:30pm:    Part 2: Identify the riskiest parts of your plan
3:30pm:    Short coffee break
4:00pm:    Part 3: Systematically test your plan
5:00pm:    Workshop ends

Running Lean will take place at the Kauffman Foundation from 8:30am-5:00pm on October 9, 2012.  Tickets are $199 and include a copy of Ash Maurya's book, Running Lean and access to the comparison business model validation tool, Lean Canvas.

Follow me! @AllisonThinkBig

The 4 Characteristics VCs Look for in Startups

According to research done by the U.S. Bureau of Labor Statistics, nearly 60% of new businesses shut down within the first four years of operation.  With these slim chances, it seems even more impossible to get funded. But don’t run off to the corporate world yet, entrepreneurs. Instead, check out the top four things venture capitalists look for when selecting a startup to fund:

1. A Coachable and Passionate Management Team
   
   When venture capitalists set out to invest in new projects, they first examine the brains behind it all. Whether your business is run by an individual, a partnership or small management team, the VC wants to be confident that the business is built on a solid foundation. Venture capitalists look for management teams that are goal-oriented and coachable. If the management team is not willing to learn from the VC, the collaboration needed to grow the business is difficult, if not impossible, to establish.
   
   Two important characteristics that entrepreneurs need to be successful are resiliency and emotional intelligence. Resilient entrepreneurs exhibit passion and are the driving force behind the business and its employees. Entrepreneurs who have emotional intelligence also have the intuition to know when to pack up and move on to the next, more viable idea. Great entrepreneurs understand that making mistakes is part of the job description. Venture capitalists value entrepreneurs who can learn from failure and can use it as a motivator.
    
2. Realistic Business Plans and Expectations
   
   An entrepreneur must write a clear and concise business plan that defines what product and/or service their business offers.  Although a long, detailed strategy is not always necessary, a solid written plan assures investors that the entrepreneur has calculated the potential opportunities, risks and competitors in the marketplace. Having the official business name, description, competitive analysis and goals clearly outlined in the business plan will be helpful in the long run.
   
   More often than not, startups take twice as long to get off the ground and cost twice as much as the founders expect. Clear predictions and correct expense calculations are crucial for establishing a business’ credibility to potential VC’s. For more information on what (and what not) to include in your business plan to attract the right VC, see 5 Business Plan Mistakes that Send Investors Packing.
    
3. Ability to Problem Solve and Scalability
   
   Venture capitalists look for businesses that have long-term viability. Successful startups must be scalable in nature (in other words, they must possess the ability to grow and perform with consistent quality). Venture capitalists look for businesses that solve problems that are financially worth solving. The idea is not relevant, or financially viable, if there is not a sizeable, addressable market that cares about the problem the business is trying to solve. The business needs to provide a service that people are willing to take action on, right now.
   
   At the same time, it isn’t just the idea that is important.  In fact, the process could possibly be the most critical for a startup. Herb Sih, startup consultant and co-founder of Think Big Partners, advises that “entrepreneurs seeking to gain funding from a venture capitalist should remember not to fall in love with their idea, but instead fall in love with the idea of solving their problem.”
   
   Business success is not always measured by an end result, but how the leaders react to the obstacles along the way. The ability for an entrepreneur to rebound after failure is an indicator that he or she will be successful in the future.
    
4. Mutually Beneficial Relationship
   
   Venture capitalists are not all the same. At the end of the day, the business in question should fit into the VC’s overall portfolio and the relationship should make sense for both parties.  But how can entrepreneurs connect with venture capitalists in the first place?  To many, they seem extremely difficult to find.
   
   There are a handful of guidelines about what not to do when approaching investors. One of the worst ways to attract venture capitalists is by unsolicited email. Many times, this demonstrates that the entrepreneur has not done the appropriate research. If you have a particular VC in mind, find a way to get connected through professional acquaintances or at networking events. Use professional social media platforms like LinkedIn to stay connected after the initial meeting and attempt to develop a professional relationship through social media.  And always keep in mind that whether the benefit is high margins, proprietary, patented technology or a different advantage, a VC ultimately cares about their return on investment - and how soon they will get it.
   
   Securing adequate funding can be stressful and time consuming. If you focus on these four tips while planting your small business seed, you will reap the rewards of a credible VC and valuable capital!

Read more articles just like this at www.thinkbigpartners.com! 

Follow Think Big! @thinkbigKC

Follow me! @AllisonThinkBig

3 KC Entrepreneur Competitions You Don't Want to Miss Out On

Fall may be the best time for Kansas City entrepreneurs to get a jump-start on their dream businesses.  Three incredible entrepreneurial competitions and honors have been announced in Kansas City in August alone.  Check out these three opportunities and get registered or nominated today!

The Alliance Project
Presented by Alterra Bank, the Alliance Project asks Kansas City entrepreneurs to "get down to business".  One lucky early-stage company will be awarded $10,000 for being voted an outstanding small business in Kansas City.  But the $10,000 grand prize is not the only benefit that the Alliance Project winner will receive.  The winner will also be awarded complimentary office space from bizperc, scholarship to the FastTrac GrowthVentures program at the Kauffman, logo design from Whiskey Design, 10 hours of legal services from Stinson Morrison Hecker LLP, a year of PR services from Will Gregory, HR support from CBiz, messaging strategy from Kazoo Marketing and a one year supply of coffee from the Roasterie.  Now that's an award worth looking into!

The Gigabit Challenge
The Gigabit Challenge, a business plan competition launched by Think Big Partners, will award one new early-stage business with the opportunity to utilize the new Google Fiber network in order to benefit their company.  As a worldwide business plan competition, the Gigabit Challenge offers not only the chance for competitors to develop next-generation businesses, but will also foster a surge in innovation and disruptive technology linking Kansas City to the world.  More information about the Gigabit Challenge will be released in the following weeks.  But mark your calendars!  The Gigabit Challenge will blast off on October 1st.

Startup Open
Startup Open is a featured event of Global Entrepreneurship Week.  It is a global competition that will identify and recognize startup companies founded between GEW 2010 and GEW 2011.  Startup Open will recognize the GEW 50 (a group of the 50 most promising ventures from around the world) who will be awarded a handful of prizes.  One grand prize winnder with be announced during Global Entrepreneurship Week 2011. 

Don't miss out on these three giant opportunities.  Any three of them could set the precedent for your business and your dream.  Good luck and Think Big!

Written by Allison Way
@AllisonThinkBig

The Evolution of the Entrepreneur

What does an entrepreneur endure while starting a business?  Entrepreneurs progress and advance through many different steps and stages when aspiring to open a new venture. Every entrepreneur is different, as are each of their new businesses.  Therefore, everything moves at a slightly different pace. Some companies will take years before the official launch, while others, like technology companies, will take a matter of weeks. With this being said, there are stages that every entrepreneur will undergo. 

It all starts with an idea.  Anybody can have an idea.  An entrepreneur is someone who does something about it.  Oftentimes, entrepreneurs gain inspiration from something that they are passionate about. Other times, ideas seem to materialize when the entrepreneur is not necessarily looking for one. The foundation of a business is started by an idea, no matter how it is attained.  At this stage, the entrepreneur is ecstatic and cannot wait to get their idea into motion. The next steps show the evolution of the entrepreneur as they form their business. 

After brainstorming an idea, an entrepreneur next must evaluate the idea. Is there really a market for this idea? Is this idea worthy and viable? Will this business work? An entrepreneur must identify the opportunity that comes with this innovative thought. He or she must also recognize the future goal and life plan of this business idea. It is helpful to also decide the business model the entrepreneur wants to build on.

Next, the entrepreneur should develop a business plan. The entrepreneur must define what product and/or service they want to offer and how they are going to do so. From simple steps like determining a name for the new business to deciding the location of the company, the entrepreneur should map it all out. Although a complete 80-page business plan is not always necessary, written direction is essential. This can seem tedious and unnecessary to the entrepreneur, but it will be helpful in the long run.

With an idea and plan in mind, an entrepreneur must find resources to pioneer the business. And the most important resource to find is money.  No matter the size of the business, an entrepreneur is going to need capital to start it. Personal savings, family, friends, angel investors, the SBA and venture capitalists are all some options for funding depending on the type of venture and the amount needed. This can be a stressful time for the entrepreneur for many reasons.  Capital can be hard to find and paying it back can be even harder. The entrepreneur also must obtain assets such as building, land, machinery and equipment for whatever the business may be.

The entrepreneur then will use the resources obtained to implement the business plan. There is a lot of work to be done at this point. Marketing the upcoming business is key and social media is the way to go this day and age. Facebook, Twitter and an email account are critical for the soon-to-be business. Whatever the product or service that will be offered from the business must be tested over and over again to make sure there are no flaws. Employees must be hired and trained if necessary.

Once everything is in place, the business is ready to be launched!   Although it is the most exciting phase in an entrepreneur’s life, this time period will be filled with limited hours of sleep. There will be glitches and the entrepreneur will have to quickly respond effectively. If the entrepreneur is working hard, has planned well, and the market is thriving, their new business is likely to succeed.   

In the end, the entrepreneur will have an exit strategy. Defined in the original business plan, the entrepreneur will know when they want to move on to something else. Some choose to make their venture a family business to be passed down for generations, while others want to build it up and sell as fast as they can. At this time, we hope that the entrepreneur is content with their success and the hard work they put into it. 

Written by Genevieve Alander

@GennaThinkBIG. 

What's it Going to Take to Win Pitch Big?

Pitch Big judge, Chris Geisert fills us in.

TBP: What are you looking forward to most at Think Big Kansas City?

Chris: Any of these events that we go to – it’s all about meeting the entrepreneurs.  Seeing their passion on the frontline and learning about their business ideas. 

TBP: You attended Think Big Kansas City last year.  What are you expecting to see this year?

Chris: It was a great event last year.  This year, I expect more of the same great educational opportunities and the ability to meet and mingle with other entrepreneurs.  I’ll definitely be attending the presentations and the keynote.  I’m really looking forward to it.

TBP: You are participating as a panel judge for Pitch Big. What are you hoping to see from the contestants?

Chris: I want to hear their conviction as to why their ideas is going to work.  I want to hear a well-thought-out idea that is concise, clear and able to be confirmed.  In other words, show me the numbers.  If you can’t explain the benefit of your business or why it’s relevant in 25 words or less, then you probably need to refine your business or your message.

TBP: What are you going to take into consideration most when deciding on a winner of the competition?

Chris: The elevator speech and how they communicate will be a key piece of it.  But at the end of the day, it comes down to whether or not I think they can execute the idea.   Ideas are worthless without execution.  If they can’t execute it, then it doesn’t matter how great the idea is or how great their presentation is.  Another thing will be scalability.  Is this an idea that once it’s proven can accelerate to the next level quickly?

TBP: What’s it going to take to win? 

Chris: Overall to win, it’s going to take the complete package.  The idea, the presentation, and the belief that they can execute on it and that it can be scalable.  So when it comes down to it, I’m sure there are going to be a lot of great presentations, a lot of great ideas, several people that can execute.  But it’s who can pull that all together into one package.

TBP: What made you get involved as a panel judge for the business pitch competition?

Chris: We want to be active in the entrepreneurial community.  Whether we’re funding an idea or not, we want to see entrepreneurs in Kansas City succeed.  Hopefully entrepreneurs will learn something from just meeting with us that they can take and use–even if it’s just one nugget.   We think KC is a great place to start a business, especially a technology business, and anything we can do to foster that, we want to do. 

TBP: Why is a Pitch Big so important for Think Big Kansas City and what can it do for the entrepreneurial community? 

Chris: I think it’s important for entrepreneurs to get out and meet other entrepreneurs.  Whether they’re in Pitch Big or not, it’s important to get out, see what others are doing, know that they’re not alone–because sometimes being an entrepreneur can be a very lonely business–so I think it’s good for them to get out an mingle.  For those that are participating, I think it’s a great time for them to practice giving their message in front of an audience, get feedback, refine their message for the next time they present; that’s how they improve.

TBP: How do you Think Big? 

Chris: I Think Big by trying to figure out how to scale a business.  Once we understand a business, how do we immediately try and scale it as big as possible.  Within Tradebot Ventures, it’s finding an entrepreneur, figuring out if that idea is going to work, and if it is, how do we scale it.  I think scaling is the biggest way that we Think Big.

Interested in applying for Pitch Big?  Apply here. 

Interview conducted by Allison Way.
@AllisonThinkBig

Are You Ready to Pitch Big?

Do you Think Big? If so, we have the business pitch competition for you. If you're an entrepreneur, innovator or creator with the next big idea or high growth opportunity, Think Big Kansas City is hosting a competition to find the next big thing...and it could be from you!

Maybe you've seen ABC's hit reality TV show Shark Tank, where entrepreneurs present their ideas to a panel of investors in the hopes of winning major cash and a chance to achieve the American Dream. Well guess what? Think Big Kansas City is hosting a Shark Tank of our own – but with our own Kansas City twist.

We're calling it Pitch Big: "Shark Tank" Style.

If you think that you've got what it takes—drive, creativity, innovation, and a winning attitude—now is your chance to pitch your big idea to a VC panel of judges and win prizes made just for your startup!

Learn more about Pitch Big: "Shark Tank" Style, see rules and regulations and fill out the application by clicking here! 

Written by Allison Way.

@AllisonThinkBig

WARNING: Non-Competition Agreements & the Entrepreneur

There are many challenges that an entrepreneur may face—raising capital, sustaining the business, hiring effective employees—the list goes on and on.  And although you may be focused solely on your business, your sales, your employees, your success, as a result, you may lose sight of another important aspect: the competition.

As an entrepreneur, it’s important for you to understand the notion of non-competition agreements.  Believe it or not, this may be the one thing that is standing in between you and your small business.  If you have signed a non-competition agreement (often referred to as a “non-compete”) with a former employer, you may find a few roadblocks on the way to self-employment.

Non-competes are often signed at the beginning of a term of employment and kick in at the end of the employer/employee relationship.  They are for the protection of the employer’s trade secrets, business plans, marketing strategies, customer lists, etc.  Most non-competes specify a specific time and geographic area that the former employee is to refrain from engaging in activities that will place him or her in direct competition with the former employer.

Generally speaking, in states where non-competes are legal, they will be enforceable if, at a minimum, they are:

1)     Designed to protect the former employer’s legitimate business interests;

2)    Limited both in duration and in geographical area; and

3)    Not contrary to the public interest.

Courts generally disapprove of non-competes that are so broad that they unfairly impede a former employee’s right to earn a living.  If a court finds a non-compete overbroad, it may narrow the duration and/or scope of the agreement or refuse to enforce it all together.

So if think you may be covered by a non-compete, here are a few things to think about:

1)    Non-competes must be reasonable in duration.  Generally, the time frame ranges from one to two years, but may be as high as five.  If the former employer’s restriction prevents you from doing business for an excessive amount of time, it is probably too broad. 

2)   The geographical area covered by the non-compete must also be reasonable.  Generally, courts will not allow a non-compete to prevent you from working in a geographic area where the former employer does not do business.

3)   Even if you think your non-compete is overbroad or unreasonable, seek out some legal guidance first to discuss your rights and risks.

Enforceable non-competes are about the balancing of interests.  Employers have a legitimate right to protect their customer relationships and confidential information, but former employees also have a right to earn a living in their chosen endeavor.  If you have questions about your non-compete, consult a business attorney.

With all of the challenges of launching a startup, it is easy to miss something like non-competes.  Don’t let this important factor sidetrack you from Thinking Big!

 

Written by: Donald R. Simon, J.D./LL.M., is president and CEO of Simon Business Consulting, Inc., a firm providing consulting services such as business and marketing plan development, incorporations, intellectual property advising, franchising regulatory assistance, and presentations on the basics of starting a small business.  Send questions or comments to don@simonbizconsulting.com.  This blog is provided as a source of information and is not to be construed as legal advice or opinion, or to form an attorney-client relationship.  For legal advice, please consult an attorney.

Edited by: Allison Way.

Top 10 New Years Resolutions for Entrepreneurs

Happy New Year from Think Big Kansas City!

Entrepreneurs, are you committing yourself to a New Years Resolution in 2011? If you haven't thought of a way to improve your business life, social life, family life, or startup life, then maybe this Top 10 New Years Resolution list for entrepreneurs will help you to see the light!  So let's make a toast- to all entrepreneurs and their dreams.  May you find happiness and prosperity in 2011 and beyond!

10. Survey your employees

Sometimes, the biggest employee dissatisfaction are the easiest things to fix! Know what changes your employees would like to make in their work lives and do your best to increase their quality of work life. In the long run, this can increase your employees' productivity and therefore, help your business.

9. Get to know other 'preneurs!

Meeting new successful entrepreneurs can give you access to mentoring and networking. By joining business networking groups, you will have the capacity to meet dozens of entrepreneurs-from aspiring to seasoned. Conversing with other entrepreneurs will help you feel a sense of community and support to build your business.

8. Set the goals (and stick to 'em!)

If you haven't written your business plan, starting one for 2011 would be a great resolution. If you do have a business plan, be sure to stick to your goals displayed in it for 2011.

7. Attend entrepreneurship classes

When you take the time to learn something new, you are adding value to your business instantaneously. Be sure to check out all of the free online courses that many websites offer. Additionally, check out any classes that entrepreneurial resources offer (for example, business incubators or organizations).

6. Make business planning a top priority

It is important to focus on your businesses' future success throughout 2011. To actively make business planning a priority, try to plan every morning for thirty minutes or so.

5. Open your mind

There are more ways to continue your business learning than just attending entrepreneurial classes. Stay updated on your industry and beyond by reading blogs, books, newspapers and magazine. Other great ways to expand your mind: listen to interviews, turn on an audiobook, and tune into a podcast.

4. Get a business coach

One (almost) sure-fire way to improve your business is by hiring a business coach. Business coaches can help turn your dreams into a reality. Make sure you enlist someone that you can trust to give you objective feedback and create deadlines for your planned successes.

3. Make a toast (Celebrate!)

New Year is all about drinking champagne and counting down with friends.  So why not make a New Years resolution that allows you and your co-workers to celebrate more often?  If you and your team have accomplished something great, celebrate! Carve out time for celebratory lunches, cocktails, dinners and parties with your partners and employees.

2. Give back

Giving back to a community is one of the fundamental New Years Resolutions. There are many different ways to give back to those who helped you succeed and there are thousands of organizations that would love your help. Find a cause that matters to you and devote a couple hours a month. This will help you get your business's name out there and will help you feel good about yourself.

1. Get a life!

Managing your work-life balance is critical to a happy life. It is crucial that you take breaks from your business to enjoy life. Make a resolution to enjoy physical as well as mental vacations from your business every once in awhile. This is not only good for your health, sanity and relationships, but it is also good for business! You'll gain relief from the stresses of growing your business, and once you return, you'll be reinvigorated with a new perspective on your challenges and opportunities.

What are you doing to make 2011 the best year yet?

Written by Allison Way.  Allison is a writer and videographer for Think Big Partners.  Check out more of Allison's work on the Kansas City Entrepreneurship Examiner, Helium, BrooWaha and eZine.

Only one day left!!  What do you want to see from the entrepreneurial community in 2011?  Let us know by taking our poll!