Business.com |
- CEO Roundtable Meeting Redefines the Role of a Corporation
- Mistakes That Cause Data-Driven Innovations to Fail
- The Best States for Starting a Business In 2019
- Talking Shop: Small Businesses Can Make Millions From Federal Government Contracts
- Should You Skip College to Start a Business?
- Cybersecurity Activism: A Wake-Up Call for Every Small Business Owner
| CEO Roundtable Meeting Redefines the Role of a Corporation Posted: 20 Aug 2019 09:50 AM PDT 
If participants in this year's Business Roundtable had their way, the function of corporations would shift from the bottom line to the betterment of the country as a whole. That was the message nearly 200 CEOs from some of the top corporations in the world committed to paper yesterday in this year's Principles of Corporate Governance document. The change marks a major shift from a decades-long stance of "shareholder primacy," which stated that a corporation's singular reason for existence was to benefit its shareholders. Officials said yesterday's release overrules those previous notions, replacing them with a "modern standard for corporate responsibility." "Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity," the CEOs wrote in a joint statement. "We believe the free market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all." Jamie Dimon, chairman and CEO of JPMorgan Chase & Co. and chairman of the Business Roundtable, said the American dream is "alive, but fraying." As such, yesterday's change was a reflection of the current economic reality of a possible recession facing millions of Americans. "Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term," Dimon said. "These modernized principles reflect the business community's unwavering commitment to continue to push for an economy that serves all Americans." Modernizing the corporate landscapeSince its founding in 1972, the Business Roundtable has commented on the state of corporate America, often opining on where things should go in the coming years. Its statements on corporate governance began circulation six years later in 1978. This year's statement was signed by some of the biggest names in American business, including Amazon's Jeff Bezos, Apple's Tim Cook and Boeing's Dennis Muilenburg. "This new statement better reflects the way corporations can and should operate today," said Alex Gorsky, chairman and CEO of Johnson & Johnson and chairman of the Business Roundtable Corporate Governance Committee. "It affirms the essential role corporations can play in improving our society when CEOs are truly committed to meeting the needs of all stakeholders." Commitments made through the documentEven though each company that signed on to the document said they would serve their own corporate purpose, each signatory committed to the following:
"This is tremendous news, because it is more critical than ever that businesses in the 21st century are focused on generating long-term value for all stakeholders and addressing the challenges we face, which will result in shared prosperity and sustainability for both business and society," said Darren Walker, president of the Ford Foundation. |
| Mistakes That Cause Data-Driven Innovations to Fail Posted: 20 Aug 2019 08:00 AM PDT  The online marketplace is a very competitive space. A lot of innovation will simply fail before it has a chance to be noticed and adopted by the population. Gartner stated in 2014 that by 2018, less than 0.01% of apps developed for the marketplace will be considered successes by their developers. This seems like a nail in the coffin for those of us who want to innovate, but the problems that innovations face in the current tech space can be boiled down to a few salient points. Relying on external dataOne of the most common mistakes that app developers can face is putting the majority of their stock into data provided by a third party. Third-party data services can prove to be very helpful, but the downside of this is that the data they provide is available to just about anyone. In this case, the challenge of innovation comes from utilizing and presenting this data in a unique way so that users feel more inclined to use your platform over someone else's despite the same data being present in both. Why do so many app developers succumb to this problem? Far too many of them believe that third-party data services can help them cut down on the costs of doing business, but they don't realize that cheap services provide shoddy results. Businesses may be recalcitrant to spend more on data, but the truth of the matter is that you get what you paid for when it comes to digital services. Misunderstanding data as a productData has a tendency of being copied and because of this, a single digital asset can be copied multiple times over when the amount spent initially is simply the amount of a single purchase despite hundreds of copies of the asset existing. This is a serious problem for some innovators leading to a high risk of data breaches. But it is still a problem that entrepreneurs and business innovators can deal with. Data as an asset can keep producing value for the company of origin long after it has been sold. Facebook collects data and has said, according to CNN Business, that it uses this data to improve the accuracy of its own ads as well as help to identify fraudulent accounts. This is a good example of how data can keep working for a company long after it has left the company's possession. Ignorance of Metcalfe's lawTechopedia defines Metcalfe's Law as a method of representing the value of a particular network using the nodes within that network to calculate a relative strength. In layman's terms, the value of a network is equivalent to the square of the number of users on that network. By understanding this, innovators can seek to leverage this fact to promote their innovation. It serves as a useful tool to companies that leverage a lot of the network in their marketing campaigns, but also offers niche situations for smaller companies to get a hold and work outward. Inability to suit a marketProbably the most significant problem innovators run into is building their application to suit the needs of a target audience. Finding a problem that needs solving is key to success in this area. Once an innovator finds a niche that he or she can successfully publish a solution to, then that application is likely to succeed. However, if the solution published isn't competitive, is derivative or doesn't seek to actually solve a problem, then the innovation will rightfully fail to make an impact. Understanding that users make a communityWhat sets good innovators apart from those that fail to make an impact is how they treat the fans of their innovation. Companies that focus on building a community will get far more out of their innovation than simply throwing it out there. In the innovation space, "Build it and they will come" is not the way you promote a product. Rather, it should be supported by a community, with each stakeholder having input and being able to have an impact on the final product. Many open-source programs go this route. Very savvy developers and innovators understand that their community offers them an ideal way to test-run ambitious new products or services before rolling them out into the larger marketplace. Businesses that fail to solicit feedback from the community by offering open betas and collecting user responses to their experiences are dooming themselves to failure. Sometimes, it can benefit innovators to make their community alluring to prospective new entrants. By demonstrating that the users in your community benefit from your products and services, and by illustrating to them that you care about their needs by collecting their opinions, you'll be building bridges between yourself and a future consumer base which can propel you to greater profits. Finding a nicheThe thing that all innovations that set the trend in a market have in common is that they found a niche they can successfully provide for and created a solution within that niche that is a lot better than the current alternatives or provides a previously unknown service to the market. Finding that niche is the most effective way of making an impactful innovation. Even so, keeping in mind the information mentioned here is crucial to not falling prey to the very real threat of failure. Staying one step ahead of potential problems is a necessity for any developer. How, then, should a business go about finding its niche? This is much easier said than done, as it requires a great deal of introspection and a willingness to confess your weaknesses. Something as simple as a SWOT analysis, however, can go a long way toward teaching you about your strengths and weaknesses. After you've ascertained what your strengths are as an innovator, you can focus on bolstering your weaknesses while simultaneously honing the skills you're already great at. You need better, cleaner dataFinally, most data-driven innovations fail in the business environment because too many entrepreneurs and data professionals rely on unclean, low-quality data that's cheap to attain and store. While cutting down on the costs of doing business by investing in cheap data sources can be a tantalizing option, you need to invest plenty of money into your data generation and maintenance regimes if you want them to pay off in the long run. Don't content yourself with lazy data engineers and analysts who are happy with subpar data; instead, opt for those high-shelf workers who can determine which data is useful for your company and which information is best left ignored. If you're tapping into the best data available to fuel your innovative potential, your ambitious new schemes are much more likely to succeed than those of your competitors who are saving money but losing out on quality when it comes to data. Relying on only the best external data and producing your own high-quality data in-house is the only surefire way to guarantee that your innovative tendencies won't fail. Remember that quality must be elevated above all else, and your data-driven business plan will be far more successful. |
| The Best States for Starting a Business In 2019 Posted: 20 Aug 2019 06:00 AM PDT  Where you operate your business and where you incorporate do not have to be the same. Just because you live in one state does not mean you have to form your company in that state. There are several reasons residents of one state may actually benefit from incorporating in another state, ranging from costs to privacy to corporate environments. So, how do you know which state is right for you? While the right pick should be based on your particular priorities, here are some of our top picks.
1. WyomingWyoming tops the list because of its low cost and the privacy it gives owners. Every state charges filing fees to form your LLC or your corporation, ranging from $50 to more than $500. In addition to the initial filing fee, most states charge an annual report fee. These fees can reach as high as $650. When your company is just starting off or you are forming a holding company, these additional fees add up. In Wyoming, the initial filing fee is only $100, and the cost of the annual report is only $50. Equally important for some business owners is that Wyoming does not require the disclosure of the owners' or the managements' names in the initial filing or the annual reports that can become public. While certain ownership information will always be required with non-public tax filings, it is not easy to find out the names of the owners or officers of Wyoming entities. Reasons you may not want the name of the owners easily accessible to the publicThe mysterious holding company up to no good that is acting as a shell company for some nefarious villainous corporation in a Hollywood conspiracy flick may be the first image you have when you think about private corporate formations. But there are many legitimate reasons people do not want the names of the owners easily accessible with a few clicks on the internet.
Private corporate filings do not allow you to avoid taxes, lawsuits or governmental actions. If you actually operate your business in Wyoming, you can also take advantage of their low tax structure. Not only is Wyoming one of the most business-friendly states for tax purposes, but they also have a low cost of living and educated workforce to hire from. A potential downside is the sparse and spread out population, which may make it difficult to hire the high-skilled workers you need. While Wyoming may be a surprise to some, according to Swyft Filings' State of Swyft report, Wyoming has seen an uptick in new business formations. Specifically, the wholesale, retail, and real estate sectors saw large year-over-year growth. Retail, consulting, and real estate meanwhile leads the pack by volume of new businesses formed in Wyoming. Here's a summary of why Wyoming is one of the best states for starting a business:
2. ColoradoColorado enjoys a low barrier to forming your entity with the state filing fee starting at $50 and only a $10 annual fee. The state of Colorado also has an attractive tax rate that is almost half of what it is in California. Colorado has a highly educated workforce and is known to have a high quality of life. It has attracted a young and highly skilled workforce who enjoys the outdoor activities Colorado has to offer. According to Swyft Filings, Colorado has seen tremendous growth in insurance, entertainment and social assistance. By volume, construction was the largest type of new business in 2018, likely to accommodate the quickly growing population. Here's a summary of why Colorado is one of the best states for starting a business:
3. South CarolinaThe Palmetto State is also an attractive place to form your corporation or LLC. The initial fees for South Carolina are a little higher than the others ($235 for corporations and $110 for LLCs), but there is no fee related to the ongoing periodic filing. The tax rate is just slightly higher than Colorado's, but it still competitive compared to other states. Finally, South Carolina provides owners privacy. According to Swyft Filings' data, the City of Columbia is seeing entrepreneurial growth with the largest growth in the technology sector. As the home of the University of South Carolina, the city is making use of its highly educated workforce that enjoys the college-town vibe. Here's a summary of why South Carolina is one of the best states for starting a business:
4. New MexicoNew Mexico rounds out our list, especially when it comes to LLCs. The filing fee is only $50 for an LLC and the ongoing periodic filings do not require a fee. Owners of New Mexico LLCs are not listed on easily searched public records, so owners can protect their privacy. New Mexico might have been higher on the list, but if you decide to file a corporation instead of an LLC, the fees are higher ($100) and you have to list the owners on the original incorporation paperwork causing New Mexico to land at number four on our list. According to the State of Swyft, New Mexico is seeing a surge in construction, retail and accommodations as they make a push to increase tourism. New Mexico also has labor and employment laws that give employers more flexibility than other states. Here's a summary of why New Mexico is one of the best states for starting a business:
But what about Delaware for starting a business?Someone has probably told you that you have to form a Delaware C Corp. The First State is a popular choice for good reasons. Most people recommend that you form a Delaware C Corp because that is the type of entity that banks and venture capital firms prefer. Investors are comfortable investing in Delaware C Corps because they know the rules. Most of America's larger publicly-traded companies are Delaware C Corps. The state has a well-established history of corporate law that is friendly to companies and has a judicial system built around efficiently trying to resolve corporate governance disputes. You can't go wrong choosing Delaware as your state of incorporation – especially if you plan on seeking capital in the first few years. It also a good place if you want to keep ownership information off easily available databases. The initial filing fees are reasonable as well ($89 for a corporation and $90 for an LLC with annual filings at $300). The reason it did not make the top four is that it does cost more than others to file the annual reports every year. If your business is profitable, the $300 annual filing fee is probably not a big deal. When you are forming an entity to hold a house you are flipping or some other strategy that does not involve recurring profits, then every dollar may add up and there are other jurisdictions that provide the same protections with a slightly lower cost. You don't have to fall for the pressure that if you want to be the next $1 billion tech unicorn, you better form a Delaware C Corp. If your business is strong enough, it will attract the necessary capital. Investors would not have turned down Facebook if it were a Wyoming LLC instead of a Delaware C Corp. The investors may make you convert to Delaware C Corp as part of the deal, but don't feel like you need to take on the extra cost, lose tax advantages or the additional administrative burden just in case you attract investors who are more familiar with Delaware C Corps. Nevada is a surprise exclusionNevada is also a common choice, but its popularity is waning. The state tried to attract business formations saying it offered the same protections as Delaware and adopted the same law to give companies and investors more comfort. However, Nevada recently raised its annual statement fees to some of the highest in the nation to drive revenue after the last economic downturn. Nevada's statements fees are now at a level that is more than twice that of Delaware. Moreover, the names of the owners are included in the original filing documents and can be easily accessed online. Nevada took advantage of its incorporation leadership role but may have gotten a short-term gain in revenues at a long-term loss with fewer people filing in the state in the future. The easiest thing to do from a cost and an administrative perspective is to file your company in the state where you operate avoiding the need to foreign in your home state. But if you want to file in another state, make sure you chose the one right for your particular needs. Do you care about costs? Is privacy important to you? Is legal stability? Before picking a state other than your home, figure out what is important to you and then find the state that matches those needs. |
| Talking Shop: Small Businesses Can Make Millions From Federal Government Contracts Posted: 20 Aug 2019 05:45 AM PDT  Finding new customers is a tough task all small businesses face. One option many never consider is taking on the federal government as a client. Government procurement – having the federal government purchase their goods and services – can be a big boon for small businesses. The government needs a lot more than just items for the military, so small businesses that aren't defense contractors shouldn't look the other way on these opportunities. The U.S. government spends hundreds of billions of dollars each year on a wide range of commercial items. While many may think government contracts only go to large corporations, that isn't the case. The law requires the U.S. government, which is the largest customer in the world, to consider buying from small businesses. In total, the federal government awards nearly one-quarter of its service contracts to small businesses, according to the U.S. Small Business Administration.  As the president and CEO of TargetGov – a government contracting, business development and marketing consulting firm – and procurement advisor to American Express, Gloria Larkin knows just how lucrative federal procurement can be for small businesses. Larkin's clients have won more than $4 billion overall in federal agreements. Larkin is also the author of The Basic Guide to Government Contracting and the Educational Foundation Board chair emeritus for Women Impacting Public Policy. We recently had the chance to speak with Larkin about government procurement, procurement policies, the benefits for small businesses of working with the federal government, and how small business owners can put themselves in the best position to beat the competition and land those agreements to become federal contractors for their products and services. How government procurement can benefit small businessesQ: What are the benefits for small businesses to work with government agencies?A: There are four extraordinary benefits for small businesses selling services or products to the U.S. federal customer. First, this is the world's Fortune One customer, meaning it buys more of virtually every product or service than any other customer in the entire world. Every year, the federal government spends more than $500 billion buying from companies of all sizes, and of that, more than $110 billion was purchased from small businesses located throughout the United States. Second, any size small business can sell to federal customers, in any industry, from one-person operations to those with five, 10, or 40 or more employees. The third benefit is that there are federal customers in every state and all major cities, located in business office parks (agencies like Social Security and Health and Human Services) as well as military bases. These federal customers prefer working with businesses that are located near them, so small businesses often have an advantage, especially when located nearby to the targeted government agency/office or military base. The final and critical benefit is that the federal government mandates that small businesses are paid within 15 days of submitting an accurate invoice. Q: How do small businesses find available government contracts?A: The beauty of selling to the federal government is that there are free government-run online tools and databases listing opportunities or contracts. The website used by the majority of federal agencies is called FedBizOpps, and it is available at www.fbo.gov. By clicking on the advanced search form, one can search by keywords describing the products or services, and even add your local state and surrounding states if desired. A tip is to keep the search simple, with just a few criteria at first. Once you see the initial results, if too many, you can always narrow down the search if needed. Please note that any website with a .gov at the end will not charge any fee to access this information. If there is a fee being charged, double-check the web address to confirm the exact .gov address and make sure you are not at a different website. How small businesses can secure government contractsQ: What is required of a small business to become a government contractor?A: There is only one mandatory step required of any business to become a federal contractor, and it is to log in and register at the System for Award Management at www.sam.gov. One can register as a company or even an individual. Once again, this is available at no cost. If you are being charged any money to register, you are not at the sam.gov website. You will need basic information, including a tax identification number for your business. Other information to gather before registering includes a DUNS number, available at no cost from Dun & Bradstreet, and your bank routing and account numbers. The SAM registration site offers an extensive help site if needed. Q: What does the government look for when choosing which business to award a contract? Does it always come down to price?A: The government customer is very risk-averse. This means that a small business has the best chance of winning business when it can prove its experience and capabilities with strong references. A general rule of thumb is that it is best to build a track record of providing services or selling products to the corporate or consumer customer before tackling the government as a customer. Pricing is also important, and one must be competitive. Additionally, strategies for selling products will differ from strategies for selling services. For example, if a product is a commodity, like a pencil or computer, low price is an important (but not the only) factor. If one has a unique product offering specific benefits, then pricing may be more flexible. A more unexpected way to get a leg up with selling to the government is to market the fact that you accept credit cards as a method of payment. The government uses credit or purchase cards for any single transaction up to $10,000, including services and products, and has made more than $30 billion in purchase on credit/purchase cards every year. The small business benefits because they see the money in their bank [for transactions] less than $10,000. Q: What is the biggest mistake small businesses make when trying to sell to a government agency?A: One of the biggest mistakes a small business makes when trying to sell to a government customer is not realizing that this is mainly a relationship-based market. Decision-makers want to know from whom they are buying, why the service or product is different or better, and the plans in place to deal with any surprises, like delivering products in a challenging environment or providing continued services when an employee quits. Delivering on time and on budget is a basic expectation in the federal market, and developing a strong relationship with buyers before they sign on the dotted line to purchase something is important to success. This takes time and effort and can pay off handsomely when one is successful. Q: Are there certain industries or types of small businesses that are better suited for government procurement?A: The federal government buys virtually any type of service available, including administrative, engineering, janitorial, scientific, accounting, legal, landscaping and even construction services. Products include anything needed to run an office, hospital, military base, airport, cemetery, or to support an education system. If your business sells to the corporate marketplace, there is a very high chance that the government customer will buy from you as well. Rapid-fire questionsQ: What piece of technology could you not live without?A: I could not live without a great customer relationship management (CRM) tool. When the business was just me, I used a CRM system to be my memory assistant. It never let a call, meeting or note fall through the cracks. Then, as we grew and every employee needed to know what was happening with every client and prospect, that CRM system was even more important to track every communication and to-do for every client and prospective client. [Related: Looking for CRM software? Check out our best picks and reviews.] Q: What is the best piece of career advice you have ever been given?A: The best career advice I ever received was on a dark day, when I was let go from a company and I happened to attend a networking event later that same day. As crestfallen as I was, the first person I told gave me a hearty "congratulations!", shook my hand and told me, "Now you can look forward to an even better situation where they appreciate what you do!" This dramatic change in perspective fueled my entrepreneurial spirit, and from that day forward, I never looked back – that was when I decided to start my own company. Q: What's the best book or blog you've read this year?A: I read numerous industry blogs related to government contracting issues, whether they are legal, accounting, rules and regulations, government agency, or business development issues. I find that blog posts by other industry and government experts help keep me informed and challenge my assumptions. My favorites include the PM Legal Minute, WIPP in Action blog, Global Services blog, the Aronson CPA blog and, of course, the TargetGov blog. Q: What's the biggest risk you've taken professionally? Did it pay off?A: The biggest risk I have taken was starting my own business without realizing the financial wherewithal needed to sustain the effort until profitability was reached. Today, I tell new entrepreneurs to plan for at least six and up to 12 months before seeing a profit. This means having funding/savings/loans to meet all business and personal financial obligations as well as fund the new business expenses. If one does not have enough money for all obligations and startup costs, it will take longer to see results and reach a profit – which is what happened to me. I ran the business out of the house a while longer than planned. But eventually, as we outgrew the home office space, hired more employees and moved into a larger office building, I am delighted to say the risk has paid off beautifully. |
| Should You Skip College to Start a Business? Posted: 20 Aug 2019 05:10 AM PDT 
Entrepreneurship can be a great way to financial freedom, but building a successful business takes a lot of time, hard work and perseverance. Many young workers are left wondering when they should start a business and what education is required to do so. A college degree is not required to start a business, but it certainly helps. College not only teaches students educational topics that can be helpful in starting a business, but also soft skills, like how to be lifelong learners. Lauren Grech, CEO and co-founder of international event management firm LLG Events, said your industry will guide what type of education you need, but she recommended that every entrepreneur be at least familiar with some basic business topics. "It depends on what type of business and industry you're entering; however, everyone should have some basic knowledge in business management, marketing, taxes and sales," Grech told Business News Daily. "Legal terminology can be foreign at first and really difficult to navigate, so it's essential to have a general understanding." Although you may know that it is technically possible to start a business without a college education, how do you know which career path is right for you? It is important to answer several key questions before making a decision about starting a business versus pursuing higher education. Those facing this decision should take the time to answer these questions honestly and evaluate if the pros of starting a business will outweigh the cons of quitting school. [Get inspired by these stories of amazing young entrepreneurs.] Will a college education help in your respective field or industry?Do you need a degree to start a business? Technically, no, but that doesn't mean you shouldn't get one. Especially for industries that are more technical and complex in nature, a college degree can be very beneficial, sometimes even necessary, to your success. If you have little to no knowledge about how business works, or plan on managing complex documents and processes, it may be in your best interest to brush up on your skills with a few college courses. Grech said getting a degree, or at least some form of higher education, can be very helpful for starting your own business. She said the college experience teaches you skills like ownership, accountability, time management, prioritizing and emotional maturity. "It may not be essential within certain career choices; however, it really helped me personally," said Grech. "My education helped me develop a proper business model, enabled me to understand certain law documents or tax laws by giving me the ability to think critically and analytically, and provided the tools necessary to read through these documents thoroughly." Even if you can successfully break into your industry without a college degree, you will likely need some form of continued education to be an entrepreneur – even if that education is informal. Do you have the entrepreneurial spirit and skills needed to succeed?Before you dive into your startup, you must be certain that it is what you want to do. Starting a company is very different from working as an employee at someone else's business, and many responsibilities and stressors come with the territory. If you are motivated and inspired to start, don't doubt yourself. However, if you are not positive about how you feel, don't jump in too quickly. "True entrepreneurship is a full-time, 24/7 job," said Tom Portesy, president of MFV Expositions, producers of Franchise Expo West, Franchise Expo South and the International Franchise Expo. "Are you ready for time away from friends [and] family? Are you ready for rejection, disappointment and failure? Are you prepared for countless sleepless nights – risking everything you've got? It can be immensely rewarding, but do you have the spirit to excel?" Grech added that entrepreneurs must have patience and perseverance, even in the face of failure. "If you're someone who needs reliability and consistency, do not open a business," said Grech. "There are no guarantees when starting your own company. The highs are high, and the lows are low, and it's important to maintain your patience when the business is not going in the direction you're steering." Does your passion exceed your patience?Sometimes, great ideas can't wait, and spending four years in college will result in missed opportunities. This was the case for Taso Du Val, founder and CEO of global tech industry network Toptal. "I wanted to go to MIT, but the thought of waiting for four years before starting my career troubled me," Du Val said. "So, I started pursuing my passion for entrepreneurship at a young age and, years later, ended up fixing a problem I noticed in the IT outsourcing industry. It's just something I had to do. I was not going to sit around for years, listening to information I would never need in my life." If you wholeheartedly believe that your business idea can't wait four years to pursue, skipping college may be the right track. Many young entrepreneurs tackle their business ideas as passion projects while they attend college, but it is important to identify at what point your business needs your full attention. Do you have any real-world experience in the industry?Hands-on experience in the industry you are pursuing is helpful, giving you the knowledge to see if you are on the right track. If you are unsure about starting a business without a degree, consider diving into your chosen industry to gain experience – perhaps working on your company as a side project before turning your idea into a full-time business. Grech recommended volunteering with someone in the field before starting your own business, to learn if you like the industry, people, hours, etc. People in some industries benefit from an apprenticeship or an internship. "This will help you decide if you like the career enough to dedicate the time to starting your own business, and it will also help you assess your skills to know if you need further education to establish yourself as a professional in that field," said Grech. For Randy Wyner, founder and president of the restaurant franchise Chronic Tacos, there was no choice when it came to getting a college education. His responsibility to support his young son meant he had to get a job instead of going to school. After working his way up to a managerial position at Jiffy Lube in just a few years, Wyner knew he had all the experience and drive he needed to go into business for himself. He allowed himself time to develop his entrepreneurial spirit before starting his journey. "Hands-on learning helped me understand how to manage a business quicker, whereas college students learn mostly by memorization techniques and tricks," Wyner said. "Following this path helped me grasp what to do and what not to do when running a business. Although college may educate you on business elements, you can't learn how to run a business until you actually become an entrepreneur." Are you financially stable enough?While college is an investment, so is your business. You'll need to calculate your expenses, create a budget and plan your timeline accordingly before dedicating your life to the project. "Understanding the total costs is crucial," said Portesy. "Before you pursue a new business opportunity, map out the total investment – purchase costs, opening inventory and how much working capital you will need before you break even." Sometimes, students will go for a degree and work in an industry for a few years, or on the side, to earn money to support their entrepreneurial journey. If you don't think you can cut it without a sustainable career to leverage your success, then you might want to focus on school first. However, if you're currently in school and feel strongly about devoting all your time to testing or growing your business, check with your college about its leave-of-absence policy. Do you have a strong support system?Even if you are starting your business by yourself, entrepreneurship is not a solo feat. Portesy said it helps to rely on friends, family, business partners, franchisors or other entrepreneurs for support. Wyner also acknowledged that his entrepreneurial success couldn't have happened without the support of his family and friends. "Surround yourself with savvy, educated people," Wyner said. "I was very lucky to have some strong mentors in my corner. Having experienced, wise people there to guide and support you is critical." If you don't have a strong personal support system of friends and family, you can join groups in your local community or online that cater to small business owners. Networking with others who are on a similar journey to your own can be extremely helpful. "Do your due diligence and connect with other small business owners who have succeeded and struggled," Portesy said. "Learn about the challenges overcome, and welcome guidance and best practices." Do you have a good reason for starting a business without a degree?This is perhaps the most important question: Is there a good enough reason for you to stay in college, or for you to drop out? Matt Brown, co-founder and CEO of freelance management platform Bonsai, is also a volunteer advisor with the Thiel Fellowship mentor network. Thiel selects and grants funding to high-achieving students who could do more good in the world by not attending college, focusing on research and innovation instead. "Everyone should think critically about the value of investing four years and an incredible amount of money into a university education," Brown said. "Is there somewhere else where you can be learning faster, meeting more interesting people and working on projects you care about? Do you want to drop out because you have a burning need to create something and being in school blocks that, or are you dropping out because it seems cool and the Facebook guys did it?" Dropping out of college without a good reason is just as silly as staying in school without one, Brown added. "Just think for yourself." Additional reporting by Sammi Caramela and Nicole Fallon. Some source interviews were conducted for a previous version of this article. |
| Cybersecurity Activism: A Wake-Up Call for Every Small Business Owner Posted: 20 Aug 2019 05:00 AM PDT  There's often a tacit sense of accomplishment when something once on the margins goes mainstream. Mobile payments, cutting the cord, home automation, that kind of thing. Cyberattacks are increasing and their effect is widespreadCyberattacks are an exception. It's not that they haven't gone mainstream; they have, and with a vengeance, but there's zero satisfaction in their newly entrenched status. While technology providers are obviously on the hook, mainstream businesses – small businesses in particular – aren't mere bystanders. A handful of recent headlines underscore the point. According to a recent CNBC report, "Hacks are affecting everyday life … cyberattacks on supply chains, governments and financial institutions are bad for not only those directly affected but also customers, suppliers and residents," the network said, citing tax delays and canceled home sales as among the "costly ripple effects" of porous cybersecurity. In that same vein, a Kaspersky Lab report indicated that companies moving to the cloud "still ignore security concerns – 9 in 10 cloud breaches occur due to employee mistakes." And Dror Liwer in his article for business.com pulled no punches in describing the peril of cyber complacency, suggesting cyberattacks on small and midsize businesses could trigger a "trickle-up recession." Recently, a major cloud-based payroll software provider suffered a crushing ransomware attack earlier this year, taking down payroll management services for hundreds of the company's customers over a three-day period. Faced with the threat of an extended outage, provoked by a destructive strain that encrypts computer files and demands payment for a digital key needed to unscramble the data, the company paid the ransom and began restoring service. The target organization's reach was significant, touching payroll service bureaus that cater to small businesses nationwide. Payroll customers, in turn, were beside themselves. While one key provider was battling pneumonia, everyone else caught a cold. Business owners, small and large, need to be vigilant and united against online threatsThe fact is, in cyberspace, everyone's ox is (potentially) gored. An estimated 60% of companies have experienced a hack of some kind. And that being the case, it behooves every business to take cloud security seriously, for the greater good. Cyber engagement is no longer an option but a requirement. Small businesses need to have each other's backs. They need to defend themselves against things they didn't do and that were not personally directed at them. They need to be good stewards by implementing policies and practices that acknowledge what is almost a fiduciary duty to the market at large – a tough pill to swallow given the rough-and-tumble nature of everyday competition. Practically speaking, what does it mean for an SMB to be a good steward in this brave new cyber world? Companies can start by becoming familiar with online threats and at least somewhat conversant with tools to arrest them – no single system can circumvent vulnerabilities that haven't been patched. Still, there are things that businesses can and should do to maximize their safety and, indirectly, make the cloud a more secure place in which to compute. You might think of these as steps – concentric circles, really – for SMBs on the road to good stewardship:
The human element remains the most important social engineering piece of this construct. It's always best to stop a problem early – before it festers and productivity suffers – think smoke detectors versus sprinkler systems. There's no quick fix, but there are fixes. High-profile companies need to take cloud security seriously, not just for themselves and their users, but for just about everyone. One misstep by one well-placed player can easily overlap and affect others. Everyone needs to treat user data with respect or risk ripples with untold consequences. Corporate responsibility – what companies owe their stakeholders, whoever they may be – is the embodiment of enlightened self-interest. By holding itself to a higher standard than just getting by, an organization generates goodwill, cements customer relationships and, to an extent, inoculates itself against trouble down the road. "Cybersecurity activism," for lack of a better term, isn't a marketing strategy but, instead, is central to this "good stewardship" mindset. Case in point: Every organization needs to have some kind of business continuity plan, whether that plan is simple or complex – a plan that provides a course of action when the worst of the worst happens. Business continuity needs to be part of every SMB's cybersecurity planCybersecurity is but one bullet point in that plan. Disaster recovery shouldn't be treated as a siloed task, a matter of too little encryption, porous firewalls or some other technology-driven glitch that, once fixed, doesn't actually move the business any closer to seamless operations. "Business continuity" is all-encompassing, full stop. Every organization should be in the business of mitigating risk. Because cybersecurity is of the moment, its value lies in part in raising awareness among companies that haven't fully thought about the big picture, of which cybersecurity is simply an element. So what does your plan look like? In the event of a quake or a hurricane, do you have a way to restore your business processes, not just your data? How do users function? How do you serve customers? Can you answer the phone? Can you continue to sell your services, even after the event? If your employees can't work, where's the continuity? The astute way to frame this discussion is to think of the gestalt of the cloud, not of the roles of the various actors (innocent, complacent, negligent, etc.). Any platform or environment succeeds only to the extent that users/stakeholders trust it. Responsibility for fostering trust isn't "out there," with the IT or tech support; it rests with rank-and-file users. That's why every company doing business in the cloud (that is, off-premises, remotely) needs to understand that failing to arrest breaches harms the business community as a whole. The fiduciary mindset is the right response to hacks and ransomware and cyberattacks, because it affirms that everyone has skin in the game. Indeed, users are central to the security model. Users, not techies, deserve an informed, even sophisticated, approach to the seemingly mundane practice of opening (or not opening) emails and attachments. The bottom lineThe strangely good news is that technology won't save us. What will, however, are changes in attitude and awareness. Both are more powerful than policies and procedures. Responsible cybersecurity means small businesses are in this together. This is top-down, bottom-up and side to side – enough to shake us all awake. |
| You are subscribed to email updates from Business.com. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment