friends

The Family Business – For Better or Worse

by Paul Joseph July 27, 2011 Featured

Deciding to go into business with family is an exciting decision that can bring out the best and worst in your collective relationships. There are numerous examples of family businesses that have developed into world-conquering brands: Walmart, Fiat, and the headline-ridden NewsCorp to name but a few. However, what history doesn’t tell us is just how many families have been left in tatters by business partnerships that were never meant to be. To put it simply, a family business raises the stakes and turns simple profit and loss in to a mere afterthought if planned naively. It’s important to be fully prepared before venturing in to any business agreement, especially when you have an informal background with your new partner. What feels like a proposal of mutual benefit today, can rapidly descend in to a personal rift of epic proportions if the ‘terms and conditions’ aren’t as airtight as they would be in any other professional contract. I have one piece of advice for doing business with families and friends: favors do not work. Even if your closest cousin offers you a zero-interest loan with the best of intentions, you probably shouldn’t take it. That is not to dispute the generosity of your loved ones, but to live by a simple truth that businesses fare better where all parties concerned believe that their deal is the best. Everybody should get a fair deal, including those who do you a favor when the banks won’t budge. Especially those people! Banks are notoriously picky about lending money, and angel investors are tough to find on the average street corner, so gaining investment from family and friends is often a convenient road for the entrepreneur. In order to avoid a devastating fall-out with your friendly investors, clarity and transparency are the orders of the day. Draw up exact terms of repayment and systematically dismantle any sense that a favor is owed. Even if you’re taking money from your own mother, be professional and treat the investment as if you’re working with Lord Sugar on The Apprentice. The chances are, if you feel guilty about accepting an investment, the investor is feeling regretful about jumping so eagerly into bed with your business. Make sure that regret is never an issue. What about adding family members to an already successful business? In many situations, once you’ve established a profitable business, you will find that your friends and family come crawling out of the woodwork in search of a job that gets them away from the office cubicle. This is always a tough situation, and I stand firmly by the view that relationships are best kept out of businesses where they haven’t existed since day one. You have to be ruthless. If this means hiring a stranger over your jobless aunty who ‘needs a favor to pay the mortgage’, then unfortunately, so be it. A weak stance will put your own mortgage in danger. There will be instances where the best person for a job genuinely is your friend or relative. In these situations, where applicable, make every attempt to insulate yourself from the management process. If you have a project manager or a senior partner, make the friend or family member report to them rather than yourself. It’s very common, if the relationship isn’t entirely professional, for a worker to start taking liberties based on what he sees as immunity to strict employment guidelines. Your friend may start to enjoy extended weekends, or late arrivals in to the office, or simply the luxury of balancing his own odd-jobs with your designated hours on the clock. These situations are much less likely to arise if you are insulated from the management process, and the friend or relative reports directly to somebody else. If you can’t guarantee such a work structure, be clear that personal favoritism flies out of the window where work is concerned. When the warnings go unheeded, be prepared to fall on your sword by accepting responsibility for damaged relationships if termination is necessary. If this sounds like a scaremongering bid to deter you from going in to business with family, that is not the intention. Family businesses built on the right foundations have proven through the years to be some of the strongest in the world. They comprise loyalty, a sense of shared ambition, and in some cases an invaluable sixth sense. If you instinctively know the strengths and weaknesses of your business partner, and investors, you can concentrate efforts for maximum return. For many entrepreneurs, the actual concept of building a business is deeply rooted to leaving a legacy for future generations. What better legacy than a successful business to pass down to your children? Family is usually a much greater influence than most entrepreneurs give credit to. Even if you don’t consider your business to be family orientated in 2011, your views may well change with time! Martin “Finch” Osborn is a marketing entrepreneur who started his own business at 21, and now works from a laptop while traveling the world. He is a fierce critic of the “get rich quick” online phenomenon. Read more about Finch here .

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The Family Business – For Better or Worse

by Paul Joseph July 27, 2011 Featured

Deciding to go into business with family is an exciting decision that can bring out the best and worst in your collective relationships. There are numerous examples of family businesses that have developed into world-conquering brands: Walmart, Fiat, and the headline-ridden NewsCorp to name but a few. However, what history doesn’t tell us is just how many families have been left in tatters by business partnerships that were never meant to be. To put it simply, a family business raises the stakes and turns simple profit and loss in to a mere afterthought if planned naively. It’s important to be fully prepared before venturing in to any business agreement, especially when you have an informal background with your new partner. What feels like a proposal of mutual benefit today, can rapidly descend in to a personal rift of epic proportions if the ‘terms and conditions’ aren’t as airtight as they would be in any other professional contract. I have one piece of advice for doing business with families and friends: favors do not work. Even if your closest cousin offers you a zero-interest loan with the best of intentions, you probably shouldn’t take it. That is not to dispute the generosity of your loved ones, but to live by a simple truth that businesses fare better where all parties concerned believe that their deal is the best. Everybody should get a fair deal, including those who do you a favor when the banks won’t budge. Especially those people! Banks are notoriously picky about lending money, and angel investors are tough to find on the average street corner, so gaining investment from family and friends is often a convenient road for the entrepreneur. In order to avoid a devastating fall-out with your friendly investors, clarity and transparency are the orders of the day. Draw up exact terms of repayment and systematically dismantle any sense that a favor is owed. Even if you’re taking money from your own mother, be professional and treat the investment as if you’re working with Lord Sugar on The Apprentice. The chances are, if you feel guilty about accepting an investment, the investor is feeling regretful about jumping so eagerly into bed with your business. Make sure that regret is never an issue. What about adding family members to an already successful business? In many situations, once you’ve established a profitable business, you will find that your friends and family come crawling out of the woodwork in search of a job that gets them away from the office cubicle. This is always a tough situation, and I stand firmly by the view that relationships are best kept out of businesses where they haven’t existed since day one. You have to be ruthless. If this means hiring a stranger over your jobless aunty who ‘needs a favor to pay the mortgage’, then unfortunately, so be it. A weak stance will put your own mortgage in danger. There will be instances where the best person for a job genuinely is your friend or relative. In these situations, where applicable, make every attempt to insulate yourself from the management process. If you have a project manager or a senior partner, make the friend or family member report to them rather than yourself. It’s very common, if the relationship isn’t entirely professional, for a worker to start taking liberties based on what he sees as immunity to strict employment guidelines. Your friend may start to enjoy extended weekends, or late arrivals in to the office, or simply the luxury of balancing his own odd-jobs with your designated hours on the clock. These situations are much less likely to arise if you are insulated from the management process, and the friend or relative reports directly to somebody else. If you can’t guarantee such a work structure, be clear that personal favoritism flies out of the window where work is concerned. When the warnings go unheeded, be prepared to fall on your sword by accepting responsibility for damaged relationships if termination is necessary. If this sounds like a scaremongering bid to deter you from going in to business with family, that is not the intention. Family businesses built on the right foundations have proven through the years to be some of the strongest in the world. They comprise loyalty, a sense of shared ambition, and in some cases an invaluable sixth sense. If you instinctively know the strengths and weaknesses of your business partner, and investors, you can concentrate efforts for maximum return. For many entrepreneurs, the actual concept of building a business is deeply rooted to leaving a legacy for future generations. What better legacy than a successful business to pass down to your children? Family is usually a much greater influence than most entrepreneurs give credit to. Even if you don’t consider your business to be family orientated in 2011, your views may well change with time! Martin “Finch” Osborn is a marketing entrepreneur who started his own business at 21, and now works from a laptop while traveling the world. He is a fierce critic of the “get rich quick” online phenomenon. Read more about Finch here .

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Sanjib Parida, Muvi, India’s first and largest movie database

by Paul Joseph June 22, 2011 Featured

Sanjib, please tell us what Muvi is all about. Muvi is basically a movie database. It aggregates movie reviews from all leading critics, twitter(for public opinion) and Facebook(for movie reviews and interest of one’s friends and family).  It also has a social layer that connects to your friends on social networks and show their likes and interest in the movies. (Visit Yourstory.in for full news, other content, and much more!)

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Sanjib Parida, Muvi, India’s first and largest movie database

by Paul Joseph June 22, 2011 Featured

Sanjib, please tell us what Muvi is all about. Muvi is basically a movie database. It aggregates movie reviews from all leading critics, twitter(for public opinion) and Facebook(for movie reviews and interest of one’s friends and family).  It also has a social layer that connects to your friends on social networks and show their likes and interest in the movies. (Visit Yourstory.in for full news, other content, and much more!)

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Mayank Kumar, @Offline, Communication System to Keep in Touch

by Paul Joseph June 22, 2011 Featured

Mayank, please tell us what @Offline is all about. @Offline is basically a web service provider which enables you to ask your friends out for a coffee or make plans to go to your favorite places with them. How is @Offline different from other players in this field? (Visit Yourstory.in for full news, other content, and much more!)

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Mayank Kumar, @Offline, Communication System to Keep in Touch

by Paul Joseph June 22, 2011 Featured

Mayank, please tell us what @Offline is all about. @Offline is basically a web service provider which enables you to ask your friends out for a coffee or make plans to go to your favorite places with them. How is @Offline different from other players in this field? (Visit Yourstory.in for full news, other content, and much more!)

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Ten Quotes from Entrepreneurs Looking to Fail

by Paul Joseph June 20, 2011 Featured

Every entrepreneur needs to be honest about their strengths and weaknesses, and realistic about their reasons for choosing the startup route. For any entrepreneur, even the best business opportunities, if entered for the wrong reasons, will likely fail.  Some of these reasons seem obvious, so forgive me for restating, but I still hear them too often. Statistics show that at least 50% of new startups fail within five years, and many of the survivors eventually fail. If you don’t want to be part of these statistics, consider all the alternatives to starting your own business, especially if you have one of the following perspectives: 1. “I’m tired of working hard and being so stressed all the time.” Starting and growing a business is more work and more stress than any employee role should be.  Perhaps you need to look carefully at the reasons for your weariness and stress at work. Health and personal problems don’t go away when you start a business. 2. “It’s my hobby anyway, so why not make it my business?” The problem here is that most hobbies cost money rather than make money.  Just because you love doing it doesn’t mean anyone will love paying for it. 3. “I’m desperate, since I can’t find a job that suits me.” With the current recession, jobs are indeed hard to find.  But don’t forget that businesses are failing at a higher rate as well. Desperate people don’t make good entrepreneurs, and probably don’t have the resources or fortitude to start a business. 4. “My family has always been in business, so it’s in my genes.” Good entrepreneurs do seem to have certain innate qualities, but it’s not clear that these qualities are automatically passed to offspring. If your passions are elsewhere, don’t try running the family business. 5. “I’ve inherited some money and starting a business should be a good investment.” You can’t start a business without capital, but having capital doesn’t mean you can start one. Learning is expensive and risky. It’s less risky to invest your windfall in someone with a proven business record, or put the money in the bank. 6. “I have some extra time, and I need a second income.” Being an entrepreneur is not a part-time job. A business startup is actually a second expense more than a second income. For supplementary income, you would be better served to take a part-time job with an existing company. 7. “I hate having a boss, and just being an employee.” Don’t start a business for a power trip. When you become a business owner, your customers, suppliers, creditors, partners and a lot of other people will become your new “bosses”. These people may be harder to please than your boss at the office today. 8. “All my friends own hot businesses and seem to be doing well.” You shouldn’t believe all the hype, or all the things said in social circles. Definitely don’t jump into trendy businesses you don’t know just to be popular.  Even good friends tend to forget talking about the years of hard work and sacrifice, in favor of recent success. 9. “I’d like to be rich, so I’ll start a business.” Starting a business with a dream of riches is certain disappointment. There is no evidence that entrepreneurs make more money, on the average, than other professionals. There is much evidence that the risks of failure are higher on the business owner side. 10. “My primary goal is to contribute something to society.” This is laudable, but more effectively addressed after you have built a successful company, not before. If changing the world is your main motivation and money is not a concern, then do it, without allowing the building of a company to slow you down. For anyone with entrepreneurial aspirations, I recommend you start by networking with peer business people and organizations before you commit to a startup of your own.  Ask questions and do everything you can to make sure you are tackling the right business for the right reasons. Your entrepreneurial life depends on it. Martin Zwilling is the founder and chief executive officer of Startup Professionals, a company that provides products and services to start-up founders and small business owners. Read more about Marty here .

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Are you providing customer service or sales assistance?

by Paul Joseph May 30, 2011 Featured

How often have you visited a store and found that the customer service assistant knows less about their products than you do? As a business owner, how much are you paying for “customer service” employees who add little or no value to the customer’s experience in your store? Let me begin with a couple of definitions, which you may agree or disagree with: Customer service employees are knowledgeable, share information that’s valuable to the customer, and provides a positive in-store experience. Employers pay more for that expertise. Sales assistants help customers by letting them know which aisle the widgets they’re looking for can be found in. They add little value to the company or the customer experience, and their cost reflects that value. In the old days, if you needed something, you’d identify the type of thing you’re looking for and get recommendations from your friends and family for which stores you should visit. The store assistants would give you advice to help you narrow down the number of products on your list, and help you figure out if the products in the store met your needs. Then the world went crazy , with every company vying to be the biggest, the best, the most ubiquitous, the most one-stop, all-encompassing, needs-meeting place you could wish to imagine. So answer this question: when you go to Wal-Mart to buy just about anything, or even Home Depot to buy hardware, how many people do you talk to who have less knowledge about how to resolve your problem than you do? In this interaction, shouldn’t the store employee be the expert? Shouldn’t you be able to rely on their advice and recommendations? Instead, many of them simply read the packaging to you, or confirm the research you’ve already done, without actually adding any insight. Customer service should mean something more than customer concierge — more than a switchboard to shuffle you along to the next person who might know more than the last. Retail stores have become homogenized. They fill their staffing needs, not with experts, but with sales assistants. Not people with experience and knowledge of the products they sell. S ales assistants : as though you need someone to hold your hand to the register. Stores now sell such a diverse range of products that the sales assistants are jacks-of-all-trades, but masters of none. They’re there to spoon-feed us the things we choose from their buffet of convenience, not help us make choices that will satisfy our hunger.  And all to often the choice we make is to buy one of many imperfect options suggested to us by the sales assistant. Think about the average computer-buying customer. Their research consists of walking into a Best Buy and asking a disaffected and snarky sales assistant to help them decide what computer they need. But the assistant at Best Buy is not there to solve the customer’s problem, they’re there to sell Best Buy’s product range. And so they address the customer’s problem with the Best Buy product they judge to be the most likely to address it. Which is not always the same thing as solving the problem. If you own a restaurant and a customer comes in looking for a gas station, you wouldn’t try to sell them a case of liquor because that might work in place of gasoline. No, you’d direct them to the nearest gas station, and the customer would remember your kindness and probably come back, or at least pass along this story of your helpfulness. Recognizing that there’s a difference between customer service and sales assistance is the first step to assessing which you’re delivering, which you want to deliver, and whether your choice represents who you want to be. It will help you determine whether what you’re doing represents good value to your company’s stakeholders, and whether these interactions provide enough value to the customer to sustain your business in the long-term. Duncan Connor is a freelance writer for www.Company.com . Read more about Duncan here .

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“With FoodKhoj, the panacea to hunger is just a click away” – Student Entrepreneur Swetansu Mohapatra

by Paul Joseph May 29, 2011 Featured

FoodKhoj is a one stop food ordering portal that allows you to place orders across various restaurants serving a variety of cuisines. FoodKhoj allows you and your friends to order the food of your choice from nearby restaurants according to your convenience of time and place. In a conversation with YourStory.in Swetansu talks about building an online portal for food order and delivery, based on… (Visit Yourstory.in for full news, other content, and much more!)

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Notes from the Hiring Front

by Paul Joseph May 16, 2011 Featured

Our company is in the fortunate position of growing at a significant rate. We have more than doubled in size in the past year and anticipate the same rate of growth over the next year. Not a day goes by when we don’t have at least one candidate in the office seeking out a job in one of our many departments. For an entrepreneurial company, few decisions are more important than hiring decisions. Every hire is an investment in money, time and effort. A single bad hire can result in a significant setback to a business. A great hire, on the other hand, can be a godsend to a small business. No employer has a perfect record when it comes to hiring. There will always be candidates that seem like a perfect fit and then turn out to be duds… or worse. At Blue Fountain Media, we’ve been fortunate enough to make some tremendous hires, but we’ve also had our share of mistakes. Over the years, though, we’ve gotten much better at identifying individuals both with the talents we are looking for and the personal qualities we seek in our team members. Here’s how we do it: The Job Description Some job descriptions are written like a kid’s list for Santa. They ask for the impossible and hope someone responds who has half the skills listed in the job description. We have found that it is much smarter to take the time to focus on exactly what you’d need from the position and lay it out clearly. If you are an entrepreneurial company where everyone wears many hats, make sure you emphasize that in the job description. A lot of people aren’t cut out for working in small, hectic workplaces and you don’t want to be stuck with someone who can’t handle the pressure. Writing a clear job description also helps you to focus on exactly what skills you need to add to take your team to the next level. Reading the Resume I have found you can learn a lot from a resume. More often than not, a resume will have at least one significant red flag. Make sure you pay attention. Typos, Grammatical Errors, and Terrible Writing Skills: It all goes back to discipline. If you can’t take the time to do things right, then don’t waste my time by sending me your resume. Since I need the members of my department to have excellent writing skills, I always make a major point of this in the job descriptions I write. You’d be amazed how many people who can’t put together two coherent sentences profess to want to be communications or content specialists. The worst instance of this- and I’m not making this up- was a guy who misspelled his own name in his logo ! Ignoring the Job Description: A job description is not a wish list. It is a specific blueprint for the person we feel will be suited to the position. When I say “minimum four years communications experience,” that does not mean four years of texting your friends in college. It means working in the communications field for four years! Self Aggrandizement: When you are applying for a very junior position, don’t call yourself an “expert,” unless you can prove your expertise immediately and convincingly. If you interned at a large company, don’t tell me how you “coordinated the project” you were working on. I really don’t mind that you did grunt work- that’s what interns do . Liars: This may seem like a no-brainer, but misrepresenting your background can come back and bite you in the butt. I routinely do Google searches on job candidates and I can’t tell you how often information on the web contradicts information on a resume or in a cover letter. Social Media Inventory In this day and age, an employer who fails to check out a candidate’s social media presence is making a huge mistake. How a person presents themselves in social media can tell you an enormous amount in relation to what kind of employee they would be. Positives include a network of close friends, creativity, writing ability and humor. The negatives, of course, can range from clear substance issues to a dramatic lack of judgment. Also, social media pages can help verify or put into question information contained on an applicant’s resume. The Interview Don’t waste your time interviewing dozens of candidates for a job. If you’ve reviewed the resumes carefully and done your social media homework, you should be able to narrow the search down to a handful of seemingly qualified applicants. Once I see a candidate face to face, I’m looking for the intangibles. I try to see how quick they are on their feet, how much preparation they’ve done for the interview and how excited they are to be there. You are not looking for your next best friend, but you are looking for someone you will enjoy working with for a long, long time. A candidate who has only the sketchiest idea of what your company does is someone who is either a fool, interviewing at dozens of places or simply has no interest in the job. We have a website that gives great detail on our people, our services and clients. If a candidate can’t take an hour to carefully review our website in anticipation for an interview, then that person is likely to be sloppy or careless in doing Another great “test” of a candidate is to go through the resume and ask about specific results. Anyone can tell you that they are a great marketer or salesperson, but I want to hear them tell me about a project they were involved in, what they contributed to the project and what the specific outcomes were. Even if a candidate is right out of school, I ask them to tell me what you attempted and what the results were: “I wrote an article in the college newspaper about waste in the dining halls and a new program was implemented…” “I organized a fund raising event for my fraternity and due to my efforts (with specifics) we raised $12,000 for…” “While in college I started a web design business and was able to pay my tuition for junior and senior year…” In Conclusion Every hiring decision you make will either advance your business or damage it. Failing to take the hiring process seriously is one of the biggest mistakes entrepreneurs make. When you hire someone, you are putting a piece of your business into their hands. So do it right! Jon Gelberg is the Chief Content Officer at Blue Fountain Media, where he oversees a wide range of content initiatives including Blue Fountain Media’s “Business Learning Center.” Read more about Jon here .

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