How to Hire the RIGHT Employee

When you’re starting up your own business, it might seem like the smart thing to cut corners when you can especially with the budgetary restrictions a new venture brings but that’s definitely something you don’t want to do when looking to hire new employees.  Don’t settle for the first person that’s available.  Really take your time to hunt down the right person who “fits the bill.”  With so many people out of work these days, there’s a lot of great talent poised to take on new opportunities but you should screen carefully before you make a decision on who to hire.  In essence, don’t settle.  So how to find the right employee?

Hire someone who already has the skills needed to do the job.  In larger corporations, there’s more time for a learning curve but not with a new company that’s looking to get off and running quickly.  Budget-starved start-ups don’t have the time, capital and resources to really train someone and allow them that beginner’s learning curve.  Don’t look for people that say they’re “fast learners.”  Look for people that have already “been there and done that.”  People who’ve never done certain tasks before are more likely to make mistakes that can cost your company precious time and money.

Think about the work experience you desire from the right candidate.  Just because someone has had a long tenure in corporate America doesn’t necessarily mean they’re the right fit for the job.  Look at a candidate’s resume thoroughly and see what they’re true experience has been.  Three years completing tasks you’re looking for an employee to do is better than someone who’s been around a decade doing things that might not be the right fit.

Hire competitive, driven people.  Start-ups have to compete aggressively for customers and market their target audience accordingly.  That being said, make it a high priority to hire people that thrive in a competitive work environment.  Great employees embrace competitive challenges and are highly motivated to work hard and exceed expectations.

Look for people that have a long history of “winning.”  Obviously, it’s your job as an entrepreneur to create a work environment that fosters such winning but look for those that already have that drive.  The relationship should be symbiotic.  Both you and your employees should be hungry for success.

Test performance.  Think about hiring on a probationary period and putting your employees under a healthy “pressure” so that they’re motivated to succeed and you can bring out the best in them.  If after say three months, they’re not fitting the bill, look elsewhere for someone who does.

Look for strong attributes.  Evaluate the way a candidate presents themselves, dresses, etc.  Are they articulate and well-spoken?  Are they people persons?  Look for the right attitude.  Just because they’re qualified on paper doesn’t necessarily mean they’re the right fit for your company and the goals you’re looking to achieve.  Look for confidence and positivity.  You want your employees to mesh with the values of your company and those that can boost morale and work in a team environment.

Take what I’ve said here today to heart and think critically before hiring employees.  Remember you want the right candidate not the wrong one.  You want someone who can get acclimated quickly and will bring positivity and drive to the role.  Always do your homework about potential employees.  Check references and as I said, think about a probationary period.  Take these steps and know that you can ultimately hire the right candidate without having to go through the hassle of hiring and rehiring endlessly.

Here are some articles you might want to check out about hiring the right employee:

“How to Hire right and Delegate Well”: http://www.inc.com/marla-tabaka/how-to-hire-right-and-delegate-well.html

“Ten Tips for Hiring the Right Employee”: http://humanresources.about.com/od/recruiting/tp/recruiting_employee.htm

“The Importance of Hiring Right”: http://www.inc.com/michael-alter/the-importance-of-hiring-right-.html

Until next time…

The Importance of Business Mentoring

A close mentoring relationship is important for any young entrepreneur.  It’s like having a close friend or older sibling that can help to guide you as you start on your new venture.  They know the ropes and have a large network that can be of extreme value.  Before you start any new business, it’s important to have someone to guide you through the start-up process and give you advice as you grow with your idea.  Mentors can point you in the right direction and give you referrals.  They can relish in your success and be there through the difficult times as well as be the voice of reason and provide an outsider’s opinion.  Most importantly, you can bounce ideas off of them.

If you look at any successful person, they usually have a mentor.  Nearly all those that thrive in business have someone who they can confide in and learn from when times are tough.  Having someone to look up to is key.  They could very well get you to where they are; to where you want to be.  Most people underestimate the power of having a mentor and that’s one of the biggest reasons for failure in business.  

Encouragement.  A mentor can encourage you when you are feeling hesitant about the direction your business is taking or if you are having doubts about the potential success of your idea.  “The word encouragement literally means "to give courage," and a good mentor will provide just that.”  There are many people in an entrepreneur’s life that one can turn to for advice – family, friends, co-workers, etc. – but when it comes from someone who knows and understands your business, it means a lot more.  A good mentor can motivate you with simple tips that let you know you are on the right track even if you are getting down on yourself.  They’ve been there before so they have the right advice and wisdom to provide you with.

A mentor can also help you reduce mistakes.  You can make your own mistakes and fail or you can learn from them.  A mentor has already made the mistakes for you, so you don’t have to do it all over again.  In essence, experience is the best teacher even if it’s not your own experience.  If you want to figure out everything all alone, failure could potentially follow.  But you might not have time to make all those mistakes and so a mentor can help prevent them.

Mentors can also help you eliminate weaknesses.  You might not always agree with or like what your mentor has to say if you are stuck in your ways but open yourself up to their advice.  “Their primary role is to be your mentor and their secondary role is to be your friend.”  This is helpful as it’s often easier to accept help from those you see as equals.  While a friend might see you for who you are, a mentor sees you for who you can become.  They might just understand the challenges you face better than you do yourself.  

Mentors can help bring out your strengths.  It takes the right person to bring out the talent and ability of underdeveloped people.  True talent can’t be taught but it can be helped along.  Without good coaching, pure talent is useless.  “A good mentor will help bring out the best in you when you don’t necessarily see the qualities you possess.”

Possibly, and most importantly, a mentor will tell you the honest truth – whether or not you want to hear it.  They do so because their primary objective is to make sure you’re successful.  A friend might tell you what you want to hear whereas a family member might tell you the plain truth as would a mentor.  If you can get past your own ego and take your mentor’s advice, you’ll likely have success.  “A good mentor understands that a day of tension is better than a lifetime of regret and, as such, will always tell you the truth rather than let you believe you have arrived at your destination.”

In typical corporate jobs, you have bosses and co-workers to turn to for advice but when you’re out there on your own, you don’t so a mentor is very important when starting up a new venture.  In corporate America, you have a job description laid out for you and expected goals set.  While you can set those for yourself as an entrepreneur, you might need a little help and mentoring is often a good route to take.

As I’ve discussed, a mentor should guide you and give you constructive criticism to help lead you onto the path to success. While they can make you feel good about yourself, they will also give you the honest truth and help you see other ways of doing things.  Mentors help you become more focused and productive.  They challenge you and expand your belief in what is possible.  They increase your business knowledge and experience.  They support you to help you achieve your objectives.  They understand you and help you improve your relationship with others.  And they support you with a wide range of business challenges.  Take these ideas about mentoring to heart and you might just have a leg up in business.

Here are some articles you might want to check out about business mentoring:

“How Business Mentors Work”: http://money.howstuffworks.com/business/professional-development/business-mentors4.htm

“Learning from Others Will Help Your Business Grow”: http://womeninbusiness.about.com/od/findresourcesandsupport/a/findamentor.htm

“The Value of a Business Mentor”; http://entrepreneurs.about.com/od/businessmentoring/a/valueofamentor.htm

“How Can a Business Mentor Help You and Your Business?”: http://makinithappen.co.uk/Articles/How-Can-A-Business-Mentor-Help-You-And-Your-Business.html

Until next time…

Back to Basics: How to Become An Entrepreneur 101

Sometimes the job you want most doesn’t actually exist in this economy so many have found that they have to make one for themselves.  That’s what, in essence, being an entrepreneur is all about.  Often people find it daunting to take the first step towards entrepreneurship and go out and create something from the ground up and take a passion or hobby and turn it into a thriving business that gives you a feeling of success in the workplace.  Don’t worry, you’re not alone.  That said, many have come to the conclusion that they would rather create work they love, constructed to fit with their own life goals than be a slave to the corporate world.  And, believe it or not, you can do it too!

First and foremost, think of a great idea!  Remember, you always have family, friends and other colleagues you can reach out to help you brainstorm.  And of course, networking is key.  It’s a great way to get help from those who’ve come before you and have done what you are looking to achieve.  When you do come up with that “great idea,” evaluate it to see if it’s actually realistic and can be implemented successfully.  What will its popularity be?  What is a reasonable timeframe to get it off the ground and running?  Think of what your target market will be.  Brainstorm where that target market shops, things they like, etc.  Narrow your idea down and focus.

Next, write a business plan.  Include every detail and description you can think of for your idea.  Take your time and evaluate all the possibilities and potential risks.  Think about how you would develop your product and what it would look like.  Think about how you can market it and make it appealing to your target audience.  Do a market analysis of your customer and your competition.  Think about how you’ll sell your product and your estimated sales forecast.  Think about how you’ll make your product and how you’ll manufacture it.  Most importantly, think of financing and how much it will take to make your product and how much start-up capital you’ll need to get things moving forward in the right direction.

Pitch your idea to potential investors.  If you have a really sound, solid idea with a smart business plan in place, you greatly increase your chances of enlisting those with money to invest in your company.  Make a detailed presentation that shows off all the things you’ve laid out in your business plan.

Hang out with like-minded entrepreneurs.  By meeting them socially, you’ll gain contacts and hear about opportunities that might help you succeed.  You can never do too much networking!  Most importantly, you’ll learn what the mindset of a fellow entrepreneur is and that’s invaluable.  You’ll pick up their attitudes and willingness to explore every potential opportunity that comes their way.

Lastly and most importantly, get the word out about your new venture.  Embrace social media platforms like Twitter, Facebook, LinkedIn, YouTube, blogging, etc.  Jump on any marketing or advertising opportunity you come across.  Don’t forget to use basic advertising and marketing tools like word of mouth. 

If you take these steps to heart, you’ll be well on your way to becoming your own boss and finding a niche idea that makes you happy and successful.  If you really do have the right idea and right mindset, you can walk away from corporate America with confidence and really make a go of your idea.  Being a successful entrepreneur isn’t easy – it takes time, careful planning and confidence, but it is, as most things usually are, indeed possible.

Here are some articles you might want to check out on how to truly become an entrepreneur successfully:

“Best Career Advice for Aspiring Entrepreneurs”: http://www.inc.com/jon-burgstone/best-career-advice-for-entrepreneurs.html

“Becoming and Entrepreneur: Four Steps to Entrepreneurship”: http://www.growthink.com/businessplan/help-center/four-steps-entrepreneurship#

“How to be an Entrepreneur: 10 Start-Up Launch Lessons”: http://theyec.org/startup-launch-lessons/

“So, you want to be an Entrepreneur”: http://online.wsj.com/article/SB123498006564714189.html

Until next time…

How to Avoid Failing in Business

Why do some businesses succeed while others fail?  Some people attribute luck to success in business but in reality there are common mistakes that hinder many small businesses before they even get off and running.  If you want to make a go of your business, try avoiding these startup missteps.

Many experts say their number one concern that leads to business failure is growing too fast.  “While growth is desirable, overexpansion is a serious error.”  Try and set realistic goals that you can meet or exceed in order to stay solvent.  Wanting to be the first in the market with a new product or taking on added overhead can cause your business to fail.

Mistaking a business for a hobby is another example.  Just because you love to do something and are passionate about it doesn’t mean it will make a sound business.  Before starting any new venture, research your business ideas to make sure they’re viable.  Too often businesses fail because owners feel their passions are shared by others and they won’t be able to carve out a specific niche in the market or that their ideas aren’t strong enough compared to the competition.

Poor planning.  Are you prepared to handle problems when they arise?  You need a sound business plan in place whether it’s five pages or 50 pages in length.  “Your business plan helps you to focus on your goals and your vision, as well as setting out plans to accomplishing them.  And don’t get mellow – revisit and revise your business plan annually.”  A business plan is where you work out crucial elements your business must have to thrive – finances, marketing, management and strategy.  You must think about the vision for your business and always, what your budget will look like.

Lack of funding.  Many young businesses are not prepared for the monetary restrictions of their businesses.  “Many budding enterprises fail to secure enough operating funds to get off the ground of make it through the crucial first few months.”  It’s easy to underestimate the capital required for all your business needs such as inventory, staffing, office space, vendors, etc.  Always, calculate your potential startup and operating costs.

Overspending and lack of capital reserves.  It’s true that many new entrepreneurs burn through their startup capital before they see positive cash flow.  Many young business owners have misconceptions about how business operates.  You should always prepare for unexpected increases in the costs of your operations.  Make sure you have enough reserve cash to help you through the tough times.

Wrong location.  Don’t be fooled by cheap leases that will put you out of a thriving neighborhood where your business is likely to see more traffic.  Consider locating near your competition.  Think about accessibility of store location to your customers.  Is the area well served by public transportation and foot traffic?  Be convenient to your customers.  This can make or break your success.

Failing to change with the times.  You must be flexible and adapt to changing market trends.  The ability to recognize new opportunities as they arise is key.  “Learn how to wear multiple hats, respond nimbly and develop new areas of expertise.”

Underestimating the competition.  You have to earn customer loyalty; it doesn’t just happen overnight.  Watch your competition closely and stay one step ahead of them.  If you underestimate your competition, you’re setting yourself up for failure.  Always keep a competitive analysis of your competition especially if you find yourself in a niche market.  Stay updated on changes in competitive behavior and strategy.  “With a comprehensive understanding of who you’re up against, you’re better positioned to come up with a good idea before they do.”  Customers go where they can find the best products and services.  What makes your product unique and better?  Think about how you can better service your customer and what they want and need.

Ineffective marketing.  “If customers don’t know who you are or even that your business exists, what hope is there to succeed?”  Successful entrepreneurs understand the effective power of marketing and advertising.  It doesn’t cost a lot to do some online advertising or use social media or email listserves to get your name out there.  Successful business owners know who their target audience is and which marketing channels will most effectively reach them.

Hiring the wrong people.  Your business will never succeed without employees who share your vision and are motivated and work hard to satisfy customer demand.  Hiring the right people can be time consuming but it’s worth it as it takes less time and effort in the long run if you don’t have to fire and rehire.  You need employees you can trust to do the job without needing to be micromanaged.

Procrastination and poor time management.  Putting off tasks that you don’t enjoy will sink your business faster than anything else. You can’t afford to waste time on unimportant tasks while critical tasks pile up. All tasks need to be done; if you don’t like to do them (or don’t want to spend your time doing them), hire someone to do them for you. If your time management and prioritizing skills are rusty, hire a small business coach or take a class to help you.

Entrepreneurial burnout.  Owning your own business can be time consuming.  Often you can lose sight of what matters most in your life, such as family and friends.  It’s easy to become consumed by your work and make it the main priority of your life but it shouldn’t be.  Take some time off and maintain a healthy work-life balance.

Putting all your eggs in one basket.  Try some variety in your product offerings.  While one idea might have gotten you off the ground, always think about expanding upon that original idea and branching out into new arenas.  Obviously, you don’t want to spread yourself too thin or lose sight of your original goal, but don’t stand still and stagnate.

Lack of experience in running a business or in the industry you’re entering.  There are so many hats you have to wear, from marketing and selling in order to run a business effectively.  On top of that, you have to understand your industry, the skills required to offer your products and services and the trends in the industry.  “If you don’t know about these basic skills, educate yourself.  Talk to others who are successfully running their own businesses, talk to industry leaders, get a book, find a website, get a coach, do your homework.  And keep increasing your business and industry skills by attending classes or reading new books every year.”

What I’ve discussed here today are some pitfalls to avoid so that your business can succeed through the good and bad times.  Take my advice to heart and try to steer clear of bad habits or patterns of behavior that may eventually be the downfall of your business.

Here are some articles you might want to check out about how to keep your business from failing:

“Why Small Businesses Fail”: http://networkingexchangeblog.att.com/small-business/why-small-businesses-fail/

“The Seven Pitfalls of Business Failure and How to Avoid Them”: http://www.businessknowhow.com/startup/business-failure.htm

“The Top 10 Reasons Small Businesses Fail”: http://boss.blogs.nytimes.com/2011/01/05/top-10-reasons-small-businesses-fail/

“Why Small Businesses Fail to Grow”: http://boss.blogs.nytimes.com/2012/04/10/why-small-businesses-fail-to-grow/

Until next time…