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How to Become Your Company's Chief Following Officer

Posted: 04 Feb 2020 08:00 AM PST

In leadership circles, conversations usually revolve around either leaders or followers. However, leaders must embrace both leadership and followership. In other words, leaders not only lead followers, but leaders are followers as well. It is a paradox in building leaders, an organization must develop good followers. There is no MBA program or business group that elevates the concept of followership as an essential element of learning how to lead a successful enterprise. But followership is essential to leadership done well. Often in order to help organizations and companies grow, leaders often have to step back so others can step forward.  

In good leadership, followership is not an option, but an essential component of working to hear the words well done. Business leaders and CEOs can lead their organizations better when they become not only better leaders but also better followers.  

Become a Better Leader by Learning to Follow 

One of the most critical areas for leading an organization is in the area of followership. Although there are many ways for a leader to follow, consider the following areas, and assess how well you are setting the example of followership for your organization. 

1.   Practice self-control by saying, "No."

Practice self-control by saying, "No" to tasks and projects when others in my organization are more gifted and talented to lead in those areas.  

Leaders who follow well understand and embrace the principle of letting their "yes" be "yes" and their "no" be "no." One area where a leader should practice saying, "No" in their organization is when they know they are responsible for a task or project, but someone else on their team has more gifts, abilities, talents, and experiences in that specific field enabling that team member to complete the job with better results.  

The best leaders are self-aware to know that they do not lead everything well.  The use of leadership assessment and tests can help a leader identify the areas where they need to step back and propel others forward.  The best leader knows themselves and their teams well enough to know where they are weak and where their team is strong.  This knowledge can help a leader to rely on the strengths of others on their team.  When a team leads together they can accomplish more than what one leader on the team can accomplish alone.                              

2.   Practice humility through listening to the ideas of others.  

Humility is essential to good leadership—and good followership.  Leaders who follow well will practice humility in every aspect of their leadership. One way that a leader can show humility is through listening to the ideas of others on their team. When a leader listens to their team, it shows the team that each person is valuable, and everyone's insights are welcomed.  

Do you feel like you have to know all the answers for your organization? Do you elevate those in your organization who have expertise and knowledge in specific areas by honoring them with your questions and listening to their ideas? This habit is a way leaders can honor and lift up their team.  By doing so, you are humbling yourself before your team; they will be impacted by your attitude and want to follow you better.  

Show your team how to follow by practice active listening when you are talking with them about decisions, actions, and tasks that are happening in the organization. Leaders who lead well make focus on each person on the team one at a time. A leader who listens to their team members will find a wealth of information and insight on how to lead the company better.  

3.  Practice belief in my team by rejecting upward delegation.  

Upward delegation is when a designated project leader on your team gives a responsibility or task back to the top leader because they don't know how—or do not want to—complete the task they have been given to complete. Leaders who practice the art of followership will reject upward delegation because it represents an important opportunity for the team member to lead and the leader to follow.  

When a leader delegates effectively, they are practicing good followership. When a leader accepts back responsibilities for tasks they have given to others, they place themselves back into the leadership role and become responsible for the project. Leaders should refuse to accept back those tasks that they have given to others.  A leader will excel in followership when they defeat attempts at upward delegation. When a leader has released responsibility to a team member, they are free to embrace the new project or task that will propel their organization forward.   

Effective leaders know when to step back so that their followers can step forward.  Leaders who delegate effectively will release both tasks and authority.  Team members can often become discouraged and disengaged in organizations when they are not given the authority to make decisions which they think are in the organization's best interests as they lead their department or team.   

Leaders practice followership when they release control to their team, and no longer feel the need to micromanage every decision and action.   These leaders give authority and control and release their teams to act. A leader will practice the best followership when they provide important and essential tasks to their team and release their team to accomplish the task as they see fit.

4.  Practice service by helping my team to succeed.  

Business owners and CEOs practice followership when they communicate that they see themselves as servants to their business and their teams. Leaders should pursue servanthood over greatness. Servant leaders do all that needs to be done. Genuine followership is about having the heart to help another person in a leadership position to accomplish their mission. Leaders who serve their teams encourage them to be successful. By cheering for team members, they convey their belief in them.  

Leaders who serve their teams see every task as important. This type of leader is willing to do any and every task in the organization.  One statement that good leaders make to their team members is "your task is important" because the leader understands that every task in the organization is important and essential to the success of the organization.    

Every successful leader knows that they must create a vision in their organization that they are willing to do whatever is necessary in order to help the organization and team move forward together. When a leader shows an attitude of they are willing to do whatever is necessary, they lead the team to develop that same spirit and attitude which will help lead the entire organization to serve one another.  

5. Practice Thoughtfulness by considering other people's points of view.  

The leader who practices good followership understands what is happening the life of the follower.  Team members feel valued when the leader considers their viewpoint.  It is a good leadership attitude to enhance the interests of others before being concerned with your own interests. This is followership. The follower is always interested in what is best for others.  When a team member feels cared for, they will care for the organization.  

Followership teaches leaders to elevate the needs of the team.  Many human resource issues could be resolved in an organization if teams were led by leaders who understood the needs and desires of team members.  When a team understands that their leaders see their point of view, they are more energized to follow the lead of the leader.  It is also good for the leader to practice thoughtfulness to their team.

Leaders who understand their followers will attract and retain the best followers because they will convey that they understand what followers want and need to follow well.  It is only the leader that learns to follow well, who will lead the organization well.  

Conclusion

Leaders who wish to lead their organizations well will intentionally practice followership. They move into the seat of the follower so that others on their team can practice leading. Of all the roles that a leader engages in, one of the most critical to their success is the role of followership. Leaders are both a leader and a follower.  Leaders who wish to lead well will embrace followership by practicing the habits and attitudes of great followers.

5 Ways to Keep Your Resolutions

Posted: 04 Feb 2020 07:00 AM PST

  • Most people never reach the goals they identify as New Year's resolutions because they fail to plan for how they will achieve them.
  • Business owners who write thoughtful, thorough long- and short-term plans are more likely to reach their financial goals.
  • Entrepreneurs can adapt the planning strategies of sales professionals to their own businesses to make their goals a reality.

If your New Year's resolutions included getting more exercise, saving money or eating healthier, you're in good company; the research firm YouGov says those are the top changes Americans promised themselves they would make in 2020.

If you've already blown your resolutions, you're also running with the pack: Research from time management firm Franklin Covey says a third of us ditch our resolve by the end of January, and 88 percent eventually abandon those annual goals.

The reason for the low success rate—no question—is a lack of planning. Success doesn't come from hoping for it or writing a goal on a list of resolutions. Success sprouts from thoughtful, detailed planning.

That's true not only for New Year's resolutions, though. Whether you're trying to quit smoking or hoping to double your small business's profits, a thorough plan will make it far more likely to happen.

Studies have shown that:

  • Companies with plans grow 30 percent faster than those without them.
  • 71 percent of fast-growing, family-owned companies make plans that include budgets and sales and marketing strategies.
  • Investors with plans tend to increase their retirement savings two to three times more than those who do not plan.

The good news: The experience that most successful entrepreneurs have with business planning can make writing new plans for specific goals that much easier.

Sales professionals, for example, are great planners. They set short-term goals for each sale and long-term goals for each year and beyond. They identify five key elements as they make their plans—a process that can help any business owner.

1. Identify your goal

 One of the greatest values of planning is that it forces you to focus on what you really want. If you don't know what you want, you won't be able to plan for it. If you can't plan for it, you are extremely unlikely to get it.

The planning process gives you the opportunity to figure out exactly what it is you want. Once you have a specific goal, you can plot out a strategy for what you have to do to achieve it.

During the exercise of planning, you can identify the people who can help you get what you have decided is important to you. And it will lead you to take the action you need to take in order make it happen.

When you start your plan, look to the end. What's your goal? What does success look like for you?

A long-range plan will direct your steps as you progress in your career or plot out how much you need to earn—and what you have to do to earn it, for example. A plan for how to keep a New Year's resolution or handle a single important transaction, on the other hand, will prepare you for a more immediate goal like asking a new client for business, for example, or recruiting a skilled professional away from a competitor, or shaving 10 percent off of your expenses.

Making a plan, whether it's for your overall success or for a single transaction, can radically improve your chances that you will even take a shot at reaching your goal. It can propel you to take the action you need to achieve your goals. A study published in Small Business Economics, for example, found that entrepreneurs who created business plans were 152 percent more likely to actually start those businesses.

2. Identify helpful colleagues

Nobody becomes successful without help from someone. So your plan should identify the people who have the authority to say "yes" to your requests for favors, advice, introductions and whatever else you need to succeed.

It's simply a waste of time, when you're moving toward a good outcome, to ask the wrong person for help. It doesn't do any good to try to negotiate with someone who doesn't have the authority to shake hands on the deal.

Once you identify the right people, do some research on them. Do they have a history of pitching in for your cause or supporting businesses like yours? Are they super busy people who favor early-morning meetings that won't interfere with the work day? Do you know someone who can introduce you? You're the one asking for help, so make it as easy as possible for the other person to help you.

Most important, though, is to include potential benefactors and supporters in your plan. Even the most competent, capable, resourceful business owners need help—and ask for it—on a regular basis. Plan to get the help you need from the people who can definitely help you.

3. Identify gaps

 One thing successful business owners tend to be good at is knowing what they don't know. Once you identify what you need to do to achieve your goal, honestly evaluate whether you have the skills, expertise and time to do those things.

If you don't, include in your plan a strategy for acquiring those skills—whether it's learning them yourself by taking training, asking experts for advice, or hiring staff or consultants to guide you.

Consider this story about the owner of a small interior design business. His staff of half a dozen designers and decorators find their own clients, mostly through friends of friends and referrals from satisfied customers.

Business was good, but the owner knew it could be better if the designers followed a more formal process for bringing in new customers. So he required each one of them to set up social media accounts as a tool to show off their talents and advertise the business.

It was a great idea, but they didn't do it. It turns out, they didn't know how. Neither did the owner.

Do you know how to do what needs doing to reach the goal you're planning to achieve? Does your staff?

There's no shame in asking for help or for enrolling in a class to learn something that will help your business succeed. And if your success depends on your employees or colleagues, it's a good idea to learn if they know how to do what you're asking—instead of assuming that they do.

4. Identify your weaknesses.

 A plan will help you create a strategy to overcome any weaknesses you have so they don't get in your way as you try to reach your goal.

Do you tend to get emotional, angry or offended when you don't get what you need from people you believe could help you? Plan for how you will respond when someone tells you "no" or throws cold water on your ideas.

Planning will help you take a step back before you put yourself in a position to react. It allows you to figure out how you will handle any situation—before you're in it. It will help you figure out how to go about asking for what you want and where else to look for help if your first effort fails.

A plan will give you confidence. It will give you a blueprint for any transaction.

5. Identify your comfort level

 The more you prepare for a transaction that can help you reach your goal, the more confident you will be during that transaction.

Preparation is a confidence booster. Consider how much you would prepare to give a speech to a group of fellow business owners: You would overprepare so you would look confident and sound authoritative.

The same level of planning is necessary before every interaction you expect to have with someone who has the choice of saying "yes" or "no" to whatever you're asking for.

Planning gives you the opportunity to organize your thoughts, do the research that will make you an expert, rehearse the conversation, prepare to answer questions and muster the courage to take the next step—like approaching an important person, asking for a business loan or making a big financial commitment on behalf of your company.

Planning will ensure that you're just as prepared—or better—than anyone you might have to convince in the process of achieving your goals.

Planning leads to confidence. Your own confidence is key to instilling confidence in those who can help you reach your goals. Your confidence is key when it comes time to taking the action that will make your dreams come true.

 

How to Choose the Best Business Loan

Posted: 04 Feb 2020 06:25 AM PST

Having a good idea plays an important role in being a successful entrepreneur and small business owner, but it's not the only requirement. Unless you have the means to self-fund, the first step is to secure a loan. But do you know how to choose the best one for your needs and objectives?

The most common types of business loans

If you don't have any experience in the world of financing, then you probably don't realize that there are many different types of loans. In fact, there are enough different loan types and formats to make your head spin. Before we dig into some tips and tricks for evaluating and choosing the right loan, let's take a brief look at two of the most common types of loans, as well as the individual funding options within each category.

1. Small Business Administration loans

The Small Business Administration (SBA) offers different types of loans specifically designed for small business owners who meet certain requirements and qualifications. Here are the four major types:

7(a) Loan Program 

By far the most basic and popular loan the SBA offers is the 7(a) loan program. These loans can be used for a variety of things, including working capital, to purchase real estate, acquire or expand and even to refinance existing debt.

Pros

  • Long repayment time (up to 10 years)
  • No collateral requirements
  • Lower than average interest rates

Cons

  • Difficult qualification process
  • Very specific documentation requirements
  • Personal guarantee

Microloan program

For brand new or growing businesses, the SBA offers small loans in the form of microloans. These loans can be used for many of the same things a 7(a) loan can be used for; they just come in a smaller amount and shorter repayment terms. The average loan is $13,000, and the maximum repayment term is six years.

Pros

  • Very quick distribution (generally 30 days)
  • Lends to businesses that traditional lenders won't work with
  • Used on a variety of business costs (inventory, machinery, working capital, etc.)

Cons

  • Two layers of bureaucracy (government and bank)
  • Spending restrictions (can't buy real estate or pay off debt)

CDC/504 Loan Program 

This loan program gives businesses a long-term fixed rate for major assets like real estate and equipment. The SBA generally provides 40% of the loan, while an approved lender covers as much as 50%. The borrower then has to put up the remaining percentage. The maximum 504 loan is $5.5 million, and details are negotiable to include 10- or 20-year maturity terms.

Pros

  • Affordable fixed interest rates
  • Very large loan amounts
  • Easy qualification process

Cons

  • Strict usage restrictions
  • Must be used to create jobs (one job per $65,000)
  • Must be able to cover 10% of loan on your own

Disaster loans

Finally, there are SBA disaster loans. These loans – which max out at $2 million – can be used to purchase, repair or replace assets that were destroyed as part of a declared disaster.

Pros

  • Higher than average maximum loan amount (up to $2 million)
  • Lenient terms (up to 30 years for repayment)
  • Flexible usage of funds

Cons

  • Very challenging qualification process
  • Affordability depends on other financing options available
  • Must be located in a disaster zone

Editor's Note: Looking for a financing solution for your business? If you're looking for information to help you choose the one that's right for you, use the questionnaire below to have our sister site, BuyerZone, provide you with information from a variety of lenders for free:

 

2. Traditional loans

SBA loans are great … if you qualify. However, for people who don't meet the requirements or need something more flexible, traditional loans offer even more opportunities. Here are some different types of traditional loans.

Equipment loan financing

A lot of small businesses simply need a loan for equipment. With an equipment loan, you can purchase anything from tablets for your employees to new machinery in the warehouse and make monthly payments on the items, as opposed to having to fork over all of the cash at once.

Pros

  • Very flexible terms
  • Fast funding
  • No additional collateral (beyond equipment)

Cons

  • Restricted to equipment
  • Requires equipment purchasing (no leasing)
  • Higher than average interest rates

Line of credit

If your business is more unpredictable and you need cash some months but not other months, a line of credit is perfect. It just sits there until you need it, and you only have to take out the amount that you need.

Pros

  • Only pay for what you use
  • Helps balance cash flow during slower periods
  • Encourages flexibility
  • Helps companies boost business credit score

Cons

  • Strict qualification requirements
  • Lots of additional fees and charges
  • Limited borrowing power

Working capital loan

For lots of small businesses, the cyclical nature of revenue means there are some months when there isn't enough money to keep the lights on. A working capital loan is a short-term solution that enables you to temporarily infuse cash into your business while you find ways to bring in more revenue.

Pros

  • Always have cash on hand
  • Few (if any) spending restrictions
  • No need to put up collateral (if the business has good credit)

Cons

  • Higher than average interest rates
  • Fast repayment requirements

Merchant cash advance

If you run a small business where you get lots of credit card transactions, a merchant cash advance can help keep money flowing. This type of loan is based on the volume of your monthly transactions and gives you an advance of up to 125% of your anticipated volume. You then steadily repay it over the next month with specific terms.

Pros

  • Easy to qualify for
  • Get money fast

Cons

  • Lots of contingencies
  • Higher-than-average fees

Invoice factoring

Invoice factoring is a unique way of increasing cash within your business by leveraging money that's already owed to your business. It works like this: You sell any outstanding invoices you have to a factoring company in return for a lump sum (usually 70 to 90% of the total amount). You're then able to use this cash as you see fit.

Pros

  • Immediate cash
  • No collateral
  • Flexible use of funds
  • Easy approval

Cons

  • Expensive (reduces profits by 10 to 30%)
  • Liability (can be responsible for unpaid invoices)

Business credit cards

In some cases, a simple business credit card can be used like a line of credit to fund business purchases. However, much like personal credit cards, business credit must be used with extreme caution and discipline; otherwise, costs get out of hand.

Pros

  • Easy and simple qualification
  • Rewards and perks for using credit card
  • Only pay for what you use

Cons

  • Very high interest rates
  • Minimal purchasing protection
  • Possibility of security/fraud issues

Secured loans

A secured business loan is very much a traditional loan in the sense that it's backed by an asset, such as a building, land or equipment. If you're unable to make payments, the collateral can be seized by the lender to offset the money owed.

Pros

  • Low interest rates
  • Easy to obtain
  • Generous repayment terms (as much as 20 or 30 years)

Cons

  • Risk of losing the asset
  • Requires a certain type of asset for approval
  • The business must be established (not ideal for startups)

Unsecured loans

An unsecured loan is the opposite of a secured loan in the sense that no collateral is required. This poses less risk for the business, but it also means you offset the risk in other ways – such as higher interest rates.

Pros

  • No risk of losing your property
  • Shorter-than-average loan application process

Cons

  • Meticulous qualification process
  • Higher interest rates
  • Lower loan amounts

Term loans

A term loan is a very basic type of loan that operates much in the same way as a student loan or home mortgage. The business borrows a lump sum upfront and is then required to repay it in weekly or monthly installments over a predetermined period of time.

Pros

  • Quick processing
  • Lower interest rates
  • High loan limits
  • Simple budgeting

Cons

  • Personal guarantee required (in most cases)
  • High credit score needed
  • Demonstrated profitability preferred
  • Financing fees

Personal loans

While it's not always the first option business owners pursue, personal loans can be used for business purchases and expenses (so long as the lender doesn't have restrictions that state otherwise). Personal loans are considered unsecured debt and are widely used for a variety of purposes.

Pros

  • Extremely versatile
  • Decent interest rates
  • Lots of options for lenders (including peer-to-peer online lenders)

Cons

  • Origination fees
  • Penalties for paying off early (in some cases)
  • Restrictions for business use 

4 tips for evaluating and choosing the right loan

Is your head spinning yet? Those were just a few examples of small business loans – many more exist. Here are some recommendations for choosing the right loan for your situation.

1. Become more self-aware.

Before you do anything else, spend time evaluating your business and how lenders see you. A quick credit check will help you understand your score, which is one factor involved, but you also need to know your debt-to-equity ratio.

According to business consultant David Duryee, this is one of the most important metrics a lender analyzes. "It is a basic financial principle that the more you rely on debt versus equity to finance your business, the more risk you face," he explains. "Therefore, the higher the debt-to-equity ratio, the less safe your business [is]."

2. Consider the interest rate.

You obviously want to consider the interest rate, though this shouldn't be the only determining factor. For example, if a $100,000 loan has repayment terms of five years, a difference of two percentage points really doesn't matter that much in the grand scheme of things. It would, however, matter if the loan were for $1 million spread out over 20 years. Be smart about comparing interest rates, and give more weight to it when terms are higher.

3. Look at repayment terms.

Speaking of repayment terms, what is the length of time? What does the payment schedule look like? Can you pay off the loan early, or do you have to wait until maturation? It's easy for these to seem like small little details in the fine print of a loan, but they can save or cost you tens of thousands of dollars when it's all said and done.

4. Consider application fees.

Are you aware that some lenders actually require you to pay in order to submit an application, while others don't?

"It is important to ask what types of fees are associated with the application," Business News Daily advises. "Some lenders charge an application fee, while others charge fees for items tied into the application, such as the cost to run your credit report or get your collateral appraised."

Take your time

You may feel like you have time against you, but it's OK to slow down a bit. The absolute worst thing you can do is rush into this. Prematurely selecting a loan, only to figure out a month from now that you chose the wrong one, can be devastating to your business. Be patient and carefully evaluate all of your options before proceeding too far in the process.

Related Articles For Business Loans:  How to Choose the Best Business Loan

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Reclaiming the Term Angel Investor

Posted: 04 Feb 2020 06:00 AM PST

I love buzzwords. Synergy; disruptive; mission critical. They're meaningless words that simultaneously animate the creator as they baffle the consumer. But, for the most part, they're harmless. Until they're not.

Angel investor is a buzzworthy term whose meaning has strayed far from its original intent. The outcome can have a negative impact on the careers of impressionable entrepreneurs, which is why it is important that the true meaning of the word is reclaimed and used accordingly. 

Let me unpack some of the implications behind what I think is a loaded term. 

Who is not an angel investor

To begin with the word angel immediately sets the power dynamic away from the entrepreneur. The person with money, i.e. the angel investor, is being associated with a supernatural being. Why? For the fact that this person has money to invest? Is that trait alone enough to raise someone beyond the realm of man into lofty angelic heights? 

A lot of people have money. Isn't how they earned their money a far better indicator of what type of investor they will be and if they are relevant to your startup?

For an early-stage company, there are many roadblocks on the path to success. Startup founders need an angel investor who can be called upon to help clear the way thereby accelerating the journey. A person with money, even someone who earned that money through their own hard work and natural talents, like a doctor, lawyer or professional athlete, might not be qualified to help a SaaS business scale. Money alone isn't enough.

In fact, access to money isn't always a good thing. Not all ideas are good and even good ideas might not equate to a profitable business. I know, as a society, we glorify tenacity. We love phrases like "success is simply holding on after others have let go." But sometimes a ship is truly sinking. Receiving outside capital can be a false validator. Angel investment from an inexperienced investor can get you to sea or keep your boat afloat just long enough for you to drown. 

Here's an example that plays nicely with my above boat-themed metaphor: professional baseball player Torii Hunter invested $70,000 in an inflatable raft invention. The pitch was that in the case of a flood, a homeowner could inflate the raft thereby keeping a large piece of furniture dry.   

As you may suspect this idea did not float. But it didn't stop the entrepreneur from returning to Hunter asking for an additional $500,000 in investment. Hunter became enamored with a neat idea that didn't translate to a great business. His angel investment only prolonged an inevitable outcome. 

If the only value add you provide to an entrepreneur is money, you're not an angel investor. You are though angel investing, i.e. there is an incredible act of faith in what you're doing. Investing in early-stage companies is hard. Markets shift. People change. If you're not living and breathing startups, technology trends, acquisitions, funding announcements, etc. then you might as well light your money on fire. Because even when you know all the best entrepreneurs, scaled a successful company and understand product-market fit, it is still hard. But at least when you have all of that going for you you're not hoping for divine intervention, you can play a role in the outcome of a startup. 

All of the above being said, if you have money you're looking to invest in early stage companies you can become a true angel investor. I'll explain that in a bit but first let me be clear: not all investment is created equal. 

Nor are all angels created equal.

Remember, Satan was once an angel. 

Which brings me to the next point on the term angel investor. Angel implies some type of benevolence on behalf of the investor. Our guardian angel, for example, is supposed to protect us as we navigate through life. An unsuspecting entrepreneur may believe that an angel investor has their best interest at heart. More often than not that is the case. There are instances, however, when investors like this early stage because it allows them to negotiate disproportionate equity. If that is your modus operandi as an investor, I would argue that is short-sighted but it is certainly your prerogative. 

I would say though that you are not an angel investor. You're a seed investor. 

Who is an angel investor

Angel investors are people who have more to offer an entrepreneur than capital. They have relevant domain expertise in a field that is applicable to the startup they're hoping to invest in. They understand that investment comes in many forms and that time and sweat are the two that will have the most impact.

They invest first in people and then in the startup. There are no shortage of good ideas out there. But there is a shortage of qualified entrepreneurs who can transform an idea into a reality. Angel investors nurture the next generation of entrepreneurs sharing the tips and tricks they've accumulated along the way. In some ways this is altruistic. Investing in a person means you are investing in their ultimate success. Startups fail in the short term. People generally succeed in the long term. If you're playing the long game and believe in the entrepreneurs you're investing in and your ability to ultimately make them succeed with their startup - even if it is their current startup - then you are an angel investor. 

Angel investors obviously want to make money on their investment but they also understand that funding capable entrepreneurs who have the ability to grow businesses is also an investment in their local community. Arming these entrepreneurs with skills and money to gain real world experience is more impactful than writing a check to a local non-profit. As this entrepreneur succeeds, others within the community will rise alongside her. Good companies enrich communities, nurture careers and create wealth and legacy. Angel investors understand legacy is not measured in X% of return. 

To better understand who are actual angel investors, another example will help. Opposite of Torii Hunter, there is Gil Penchina, who was in early at eBay which kickstarted his angel investing career. Gil is someone who understands that alongside the product, there is a person/team that needs investing and guidance. He says "They invest because they want to give back, are excited about the company or personally like the CEO. Sometimes they do it to learn to be a professional investor. There are a lot of ways people get non-economic payback–learning, networking and relationships." when talking about Angels as a whole. Gil is looking for a different type of return when he invests. 

He has the background knowledge to truly offer advice and gain the attention of entrepreneurs. He has been part of a startup that made it big. He has an investment background where there have been huge exits and then some tough losses. Having big wins and losses is all apart of a learning experience that a future entrepreneur can use for future advice. 

Going back to defining an angel investor, angel investors are people who have more to offer an entrepreneur than capital, an exact reason Gil is in the investing game. He cares to help the entrepreneurs out there because new products and crazy ideas excite him, not making more money. He proves this because at the very end of an interview he did, he encourages entrepreneurs to reach out to him and his syndicate as he says, "Lastly, call us. If you are a serious entrepreneur we are here to help." 

Reviewing the above criteria, you'll realize there aren't as many true angel investors as we are led to believe. But there are many wonderful ones out there. And many of them have their own syndicates where they track their investment opportunities and open those up for other investors who maybe don't have the time or background to provide the type of intimate support that helps ensure success. Some people may even call them modern venture capitalists changing an old-school and antiquated game. Find those syndicates and support them and you too will be playing a role as a true angel investor. 

How to Launch a Podcast on a Shoestring Budget

Posted: 04 Feb 2020 05:00 AM PST

For many business owners, the idea of starting a podcast can feel daunting. There is a hefty amount of information available on how to start and produce a podcast effectively, but we don't think it needs to be complicated or expensive. Today we're sharing a behind-the-scenes look of the exact process used to create an episode of The Flight Club podcast.

Before diving in, let's start with some stats to help illustrate this growing medium. Right now, there are more than 700,000 active podcasts and more than 29 million podcast episodes. Some 22% of Americans (approx. 103 million people) are weekly podcast listeners (i.e. listen to podcasts at least once a week). And the average podcast listener listens to seven shows in an average week and subscribes to six.

Step one: Choose your topic

Before you begin obviously you need to decide on "what" it is you want to talk about. Building a podcast is a commitment, so don't do it just because everyone else seems to be. Perhaps you have a unique angle on your industry or access to potential guests who can entertain and educate. Please do your research on existing podcasts related to your topic, so you're not just creating a carbon copy of 100 other podcasts in your segment. I recommend opening the native podcast app on your phone and just start searching and listening. The biggest podcast platform (iTunes/apple) breaks down their podcast into 16 categories (some with subcategories). This is a helpful way to figure out where you fit.

  1. Arts (Design, Fashion & Beauty, Food, Literature, Performing Arts and Visual Arts)

  2. Business (Business News, Careers, Investing, Management & Marketing and Shopping)

  3. Comedy 

  4. Education (Educational Technology, Higher Education, K-12, Language Courses and Training)

  5. Games & Hobbies (Automotive, Aviation, Hobbies, Other Games and Video Games)

  6. Government & Organizations (Local, National, Non-Profit and Regional)

  7. Health (Alternative Health, Fitness & Nutrition, Self-Help and Sexuality)

  8. Kids a d Family 

  9. Music 

  10. News and Politics 

  11. Religion & Spirituality (Buddhism, Christianity, Hinduism, Islam, Judaism, Other and Spirituality)

  12. Science and Medicine (Medicine, Natural Sciences and Social Sciences)

  13. Society and Culture (History, Personal Journals, Philosophy, Places and Travel)

  14. Sports and Recreation (Amateur, College & High School, Outdoor and Professional)

  15. Technology (Gadgets, Podcasting, Software How-To and Tech News)

  16. TV and Film 

iTunes, of course, is not the only podcast platform (although it's the most prominent). You'll also want to feed to Google Play, for Android users, and Stitcher and Spotify, which can be listened to on all devices. These feeds will be set up via your podcast host, discussed in step three.

Step two: Invite and schedule your podcast guests

Sending the invitation

Inviting a guest to be on your show doesn't have to be complicated. Use your favorite note-keeping app like Google Keep or simply whatever note keeper is available on your phone or computer to create the script that you will use to invite your guest. Additionally, you can share this information with other team members who can reach out to invite guests. Be sure to include important information about your podcasts like testimonials from past guests and a link to schedule the interview. It is also helpful to share a previous episode so guests can get an idea of how to prepare. Not all podcasts need to be heavily scripted. Here's an example of a simple webpage that provides information for people you invite.

Scheduling the recording date

To simplify scheduling consider using scheduling software that integrates with your calendar, like Acuity Scheduling. This allows guests to easily pick a date that is available on your calendar for the time frame needed to record. Include day-of instructions or set up reminder emails to help automate the process and keep everyone on the same page. It is also easy for guests to reschedule when you choose to use a scheduling platform, saving you time and energy.

Utilizing your intake form

Most scheduling software includes the ability to add a form. Forms will let you easily collect important information like social media handles, websites and the bio of your guest. The content submitted by your guest will be saved to the calendar event created post scheduling. This can make handing off important information over to your team members a breeze. If you choose to keep to a specific script or outline, you can also use your intake form to further prepare guests for the upcoming interview, by sending questions prior to the interview.

Step three: Record and publish your podcast

Recording the episode

It's the day of your interview and you're ready to go. Recording your podcast doesn't necessarily require a fancy studio and expensive equipment. For recording the episode, there are options such as UberConference, Zoom and Skype.  We've chosen to use the free service that UberConference provides. Giving your guest the option to join by phone as well as the computer makes recording simple for the host and the interviewee.

As far as equipment goes, I simply use the old school iPhone headphones (with the 3.5 mm audio jack) and record via my laptop. If you're on go, like I am, this keeps things easy. Another reason for choosing simple equipment is there is no major audio disparity between you and your guest.  Why go to all the trouble and expense to have a professional microphone and then stress about the set-up of your guest. My rule is to keep it simple.

If you do want to go with higher quality equipment, Pat Flynn has some great tips in his guide and via this video.  As he notes, one of the most popular podcasting microphones on the market is the Audio-Technica ATR2100-USB. 

Prepare your podcast for publishing

It is pretty standard practice to have a recorded intro/outro for your podcast. To keep things free and simple I recommend sourcing free (and royalty free) music. You can then hire someone to read a short script for the intro/outro via sites like Fiverr.com. Once you have the .mp3 file you can splice it into your podcast recording using an application like GarageBand (for iOs users) or Audacity (for Windows users). Tip: Hire a Virtual Assistant to do all the editing and uploading (next step) for you for only $5 per hour. This is not something you should be messing with yourself.

Publishing your podcast

Once your podcast audio file is ready to go, you must upload it to a hosting platform.  At Hera Hub, we use Libsyn, however, there are others you can choose from like, Buzzsprout, PodBean and newcomer, Transistor.  Take your time to choose what works best for you and your budget because changing platforms is a lot of work.  We like Libsyn because it is simple and syndicates to all major podcasting streaming services like Stitcher, iTunes, Google Play and Spotify. Libsyn does have a monthly fee, starting at just $5 per month, depending on your storage.

Again, hiring a Virtual Assistant to do the back-end legwork of preparing and publishing your content is very affordable and saves time. Check sites like Upwork.com. Hera Hub also offers virtual assistant placement services to help you find and hire a qualified virtual assistant. 

Step four: Market your podcast episode

Once your podcast is finished has been syndicated on Libsyn, or your chosen podcast host now is the time to share it with your audience… aka marketing. There are several ways you can repurpose your content for sharing.

  • Publish and embed the episode on your website as a blog post. 

  • Share the blog post with your podcast guest and invite them to share it with their audience.

  • Share the episode on Facebook, Instagram, LinkedIn, and Twitter. Be sure to tag your guest for additional reach.

  • Publish your recorded episode on YouTube.

 
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