Musings of a mostly quiet professional
Running a business is easier than ever before with the resources and technology available to us today. With the ability to start a business, it is more common for entrepreneurs to engage in what is known as parallel entrepreneurship. This is when a business owner is managing the task of running more than one business at a time. Learning how to become successful in this art of entrepreneurship can give you results that you may have only dreamed of in the past.
Learn the art of digital marketing
Digital marketing is going to be a key aspect of growing any successful business in our modern age. It will be important to implement the same type of digital marketing across your different businesses. There are even tools that can help you post relevant content to different social media sites for your different businesses. The more you post online for your businesses, the better you will become at the art of digital marketing.
Become a master at time management
When you feel like there is too much to get done in the day while running multiple businesses, it is important to get on top of your time management. The better you are able to manage your time, the less overwhelmed you will feel. Hiring an assistant is a great idea if you have the funds to do so. If you are lower on funds, there are many digital tools that can help you stay on top of your time management.
Always be learning
There are always new things to learn as an entrepreneur. The more you learn, the more you earn. If you are always learning new things about running businesses and the industries you are in, it will soon become second nature to you. This will help you create skills that will take you far in all of your business and not just one.
Set captivating goals
When you have captivating goals, you will be able to put in the ridiculous hours that it takes to succeed in multiple business ventures. The more captivating your goals are, the better your motivation will be. Make sure that you write these goals in a place where you can see them on a regular basis. This will keep you motivated to wake up early and work the many hours it takes to succeed in more than one business at the same time.
Lean principles were first born in the auto manufacturing industry. They are just one of many strategies adapted for numerous other industries to come out of the Toyota Production System. The TPS was developed by Toyota executive Taiichi Ohno after a visit to Henry Ford’s plant in Highland Park, MI in 1914. Ohno combined the efficiency of Ford’s assembly line with the on-demand methods he discovered at the local Piggly-Wiggly to develop what would eventually become known as lean manufacturing.
Lean principles are particularly useful for startups because the goal of the lean process is to consistently reduce waste while simultaneously increasing output, which creates value. This is particularly important for businesses that are building and developing their processes as they go. With lean methods, you don’t end up spending a fortune on supplies or equipment you don’t need and every employee contributes to helping make processes flow and function more smoothly. When there is a problem or issue, it gets fixed because there is no “buck passing.” Everyone is a stakeholder of sorts, so everyone takes responsibility at every step in a process.
While processes may be easier to see in an assembly line type of environment, the truth is that every business is an assembly line of sorts. People that perform one process depend on people whose processes came before theirs with even more employees further “upstream” depending on them. An example of this is employees who fill out expense reports depend on accounts payable to process them, who depend on accounts receivable to process the funds that accounts payable pays out to employees.
The 5 key principles of lean are:
Value: Determine what is going to offer the most value to your customer
Value stream: Devise a means of delivering that value
Flow: Implement the means you have devised of delivering value
Pull: As you implement the means, the process should begin to speed up so employees can “pull” what they need when they need it to increase the speed with which you are able to deliver your product or service.
Perfection: Once you have your methodology in place, you still need to tweak, test, and hone it to perfection until you have one smooth, well-oiled machine.
Once you have reached the perfecting stage of the last value offering, it’s time to go back to the drawing board and start over by determining the next means of increasing value to your customer. Then repeat the process.
Many young entrepreneurial-minded people have their sights set on living their dreams in San Francisco, specifically, Silicon Valley. It’s the tech and startup capital of the world, so why wouldn’t it be the first place every budding entrepreneur wants to be? Before you pack your bags and hop on the next flight to California, there are a few things you should know.
San Francisco is an expensive city and listed as one of the most expensive cities to live in the world. Rent for a one or two bedroom apartment goes anywhere from 3,000-6,000 at its lowest. The area has been in such high demand and will continue to be as tech and tech companies grow. With the high costs of living comes a higher expectancy for salaries to get the top talent, which inevitably will cut into your reserved capital very quickly.
There is a distinct culture
The business culture in Silicon Valley is like no other. The best way I’ve heard it described is that of a duck. Entrepreneurs will appear calm and collected on the surface, but underneath they are doing everything they can to keep their startup moving and afloat. This business culture is something to get accustomed to, in order to see the company and products you’re passionate about thrive.
A massive talent war
It’s going to be very hard to find the talent you need if you’re a startup that hasn’t gotten attention from a venture capital firm. You need to create a package that is going to entice the best talent for your startup and away from their already high paying jobs at more prominent companies. The high cost of living is what continues to keep competitive wages moving up and is a huge task to consider when looking to Silicon Valley for your next move.
Keeping these few points in the back of your mind when you are looking to grow your startup, can really help to see where your company’s future lies. If you have large venture capital funding and need only the best people to work for you, on your project, then Silicon Valley is the only place to make that happen. Make sure to think about all of your options and which city is right for you to garner the most success.
CBInsights indicates that the world of commerce is currently home to 255 “unicorn” startups. “Unicorns” are business startups that are self-valued at one billion dollars in United States Dollars – at least they’re almost always valued in USD to keep measures of valuation equal throughout the third rock from the Sun.
How is a company valued at $1 billion, anyway? Does that mean such companies possess one billion dollars’ worth of assets? What if they don’t command the control of $1 billion in total assets but have, in fact, been given $1 billion in the form of investments by angel investors and venture capitalists – does that make a startup eligible for the sought-after “unicorn” status?
In the same manner that unicorns aren’t real – they’re merely mythical creatures created by the imagination of people living some 2,400 years ago and have never been found to exist since then – startups labeled as unicorns are more than what meets the proverbial eye.
Understanding how valuations of young startups work is essential to understanding the processes by which unicorns can be considered unicorns
Startups practically always receive substantial investments from alternative asset management firms, private investors, venture capitalists, and angel investors. Without such investments, startups wouldn’t typically be able to achieve the massive scales of growth they frequently do.
Executives, owners, and founders of these startups present the basics of their businesses to private individuals and rooms chock-full of investors to receive such investments. Startups typically seek out investors who have recently poured money into ventures that match their industry – chronic manufacturing-oriented investors won’t pay the same for a tech startup as they will a blue-collar-oriented startup.
Startups are never valued independently – their self-purported values are only true when believed by investors.
Many startups have no revenue
That’s right – countless unicorns are valued as such before making any material earnings if earning anything at all!
One reason why so many startups are in Silicon Valley is that investors located there are more likely to fork obscene amounts of money over. The same goes for Los Angeles and New York City.
Unicorns get many things right – including selling their pitches at the right time
Startups that can tout consistent monthly increases in performance-related metrics typically go all-out as far as their efforts in presenting investment opportunities to potential funders. Prospective unicorns – at least successful ones – always pitch at the right time to secure such an illustrious title.
One might be curious what Silicon Valley will look like in the future. Will it be a giant tech bubble that bursts with countless tech companies buried in their graves, or will this prosperous region in the United States continue to be a land of innovation and opportunity for decades to come?
Innovation Changes Hands
What people have to understand is how innovation has switched cities from time to time. For example, Springfield, Massachusetts, a small town that was smaller than the surrounding cities, sat at one of the most enviable crossroads in trade routes.
Because of its location, Springfield became a weapons manufacturing hub for the United States military. The city drew in some of the best talents from innovative companies. Up until the 1950s, Springfield was the heart thumping pulse of innovation in the United States.
What Happened? Does History Repeat Itself?
Before this time, the city was at the forefront of technological advancements. Sadly, when the 1960s rolled around, eastern manufacturers began to produce cheaper products and the local armory was shut down. This booming city turned into a shadow of its former self as manufacturing companies went out of business and became empty and dilapidated ruins of its former glory.
What Does This Show?
This isn’t to necessarily say that Silicon Valley will lose its title as the giant innovative city, but it shows how fragile this title of innovation can be. No one can predict the future. However, new things come up the pipeline to change how current things happen, and this can lead to a shifting of power. It was only 50 years ago that Silicon Valley became the mecca of the tech world, but some other region in the world could develop and attract the attention away from California.
What history has shown is how power changes hands occasionally, and what was once the economic beating heart of a nation can suddenly lose its power. The tech industry moves in cycles like most of the industries, and it has less to do with the economy over what it has to do with newly emerging technologies.
To give an example of how this works, take a look at the once powerful dot-com companies. When the dot-com crash of 2001 hit, the once prosperous companies like Cisco lost as much as 86 percent of their value. These examples go to show that Silicon Valley might not be as indestructible as what the average person thinks.
The takeaway? Well, it’s certainly not that Silicon Valley doesn’t have much to offer. Instead, focus on your talents, skills, and how you can tangibly implement them in the here and now. The location of talent may change, but developing your talent and working hard is the one true constant you can hold onto in the ever-evolving world of entrepreneurship.
At this point, entrepreneurship and Silicon Valley are synonymous with one another. To the extent that many view the separate consumption of peanut butter and chocolate as a mortal sin, so too do people see the separation of startups and silicon valley as impending doom for the former. Listen, I don’t have to make an argument for the staggering success of entrepreneurship in Silicon Valley, its immense benefits for the country and the world as a whole, or the fact that talent abounds there. My goal is not to dismiss anything about the Bay Area, but whether to explore whether it is possible to posit other cities as promising and proven hubs for entrepreneurship, too.
In a digital world that is becoming increasingly flexible, it shouldn’t be a surprise that many are wondering if their business can thrive outside of the technologically-oversaturated Bay Area of America’s 31st state. Just as workers long for more flexibility, so to do startups founders and CEOs long for more geographical fluidity.
Are There Any Other Worthwhile Cities?
Californians often fall into the fallacious thinking that they are the only state in the country (or at least the only one worth living in if you wish to succeed) but the truth is, a lot of places are thriving — even places in the middle of the country. So, to name a few:
Yes, you read that correctly. Richmond has been on the rise for the past couple of years but was slow moving due to a lack of education. However, the current environment is one of bustling energy with an “on the come up” feel. The city is beautiful, historical, quaint, and looking to emerge on the entrepreneurship scene as a city that blends its historic roots with the exploding age of modernity in an unprecedented fashion. In fact, the town hosts the startup accelerator Lighthouse Lab, run by Larkin Garbee. The city also has an impressive art and culture scene, establishing itself as a hotbed for activity on the east coast.
In the past couple years alone, Cincinnati has seen a startup growth rate of 74%. Something unique about this city is its ability to draw in a host of different types of startups – everything ranging from Silicon Valley tech-style startups to advertising agencies and health and data companies – you can find it all in the home of the Browns. I wouldn’t be too surprised if journalists started to mention Cincinnati in tandem with Silicon Valley.
Combine the strong, small business feel with the added benefit of a lower cost of living, and you have Oklahoma City. Not only is this city listed as one of the places with affordable luxury apartments, but it also offers the ease of paperwork for starting a business – one can finish the paperwork in about a day. Oklahoma City is a great place for recent college graduates trying to make a name for themselves, as well as anyone who wants to get out to the home of the Sooners and make something happen.
Sure, developing that perfect resume, optimizing your Linkedin, and diligently applying to jobs that interest you are all highly effective ways of marketing yourself as a professional in the career sector you desire to enter. But what if you feel called to something deeper than the ‘typical’ job? What if the entrepreneurial spirit is not something you can disassociate from your innovative and enthusiastic will?
If you wish to capitalize on your business-centric mindset, you may need to start thinking outside of the box to make valuable connections and business relationships. And while you shouldn’t slack on the basics, you’ll want to focus on integrating yourself into the local community, positioning yourself as an innovative thinker, and taking those extra steps to elevate yourself as a cut above the rest of the crowd.
Constant Community Integration
Perhaps the best way to learn about entrepreneurship is to learn from business owners themselves. Now, this doesn’t mean you have to hunt down a curated group of digital darlings and media moguls. Simply finding people who work for themselves, especially those that operate in a relevant industry, is an excellent way to familiarize yourself with entrepreneurship. Not only is this an excellent means of gaining invaluable insight, but it’s also a great way to meet people of power who can help you along in your business dreams and ventures.
Getting out to your community events, joining groups on various social profiles, and positioning yourself as someone who is willing to learn and willing to offer a helping hand is crucial throughout this process.
Don’t Buy Into the Hype
Most people are overwhelmed by the business world, especially when they think about themselves as the leader of their own business. But it’s important to demystify business-talk if you wish to enter entrepreneurship with confidence. The truth is, owning and operating a business is not as mysterious and evasive of a process as some people tend to think. This is also another reason why immersing yourself in the business culture is important; it’s not as difficult (in some aspects) as some say.
There are also many great, free platforms to learn the ways of business if finding a mentor is currently out of the question. Forbes.com, Harvardbusinessreview.org, and entrepreneur.com are a few great sites that serve as an excellent source of insider business knowledge.
Success – thought it might appear as such from an outside perspective – is not an overnight process. Taking these simple but important steps towards your entrepreneurial future certainly won’t ensure you obtain all of your future business dreams, but they will certainly help prepare and instill you with the needed confidence, knowledge, and wisdom.
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