How Bill Gates Monitored Workplace Productivity

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I recently read an interesting article in the Washington Post about Bill Gates from his early years growing Microsoft to becoming the man invested in many philanthropic efforts with a net worth of $56 billion. During his rise to tech superstardom, Bill Gates was known for pulling all nighters and crashing at the office because of his dislike for downtime. He worked weekends and knew every employee’s license plate to monitor when they would arrive to work. Former colleagues recall his intense passion and describe the early days of the company as a high stress environment. At the same time, Gates respected people who stood their ground and pushed back. Gates understood the talented team he had and how vital they were to Microsoft. As the team grew bigger, he adjusted his management style to create a less hostile and more thriving environment.

What can we learn from this? As a business owner with experience at many start-ups I can relate to being fiercely driven to produce great work. Yet, there has to be a healthy balance to keep employees happy to help you build your business. Having a great team that is collaborative lets you achieve your goals quicker.

As you start your business or are looking to grow your company, think about Bill Gates. You may be wise to adopt some of his common sense methods for increasing productivity while also adopting a more subtle and inspirational approach.

Click here to read the full article.

How much are you worth to Facebook?

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I recently read an interesting article in The Washington Post about how much money you – yes, you – are worth to Facebook. In the United States in 2016, the average Facebook user is worth $13.54.

You read that right – Facebook is making $13.54 off each and every one of us who uses their social network. The value per user is based off of impressions on mobile and video ads and content.

Of course, if you use Facebook to market your business through organic content and ads, you are probably worth a bit more, as you are spending advertising dollars with them. Other interesting takeaways from the article were that Facebook’s active user base was up 14% over 2014, to 1.59 billion total monthly active users. There was also a 52% increase in revenue from the same period in 2014. Facebook had truly stellar performance in the past year.

The next time you log on to Facebook, think about how you are contributing to the bottom-line of one of the hottest-performing technology companies.

Click here to read the full article.

What to Include in Your 2016 Sales Plan

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Here’s a very interesting statistic for you to ponder: 40% of sales reps are going to fall short of their sales quota this year. Think about that: that means that there is a serious issue with a lot of sales teams. I recently read an interesting article that included that statistic, as well as some other interesting numbers.

I’d like to share some of my personal insight from my years of experience founding and operating startups. Here are my thoughts on creating your 2016 sales plan:

  1. Variable pay for salespeople is best. If you want your salespeople to perform well, and exceed the quota set for them, you need to give them major incentives to do so. Too many companies propose and provide salary-only packages that do little to incentivize.
  2. I agree greatly with the article on the idea that the sales plan should be modeled after objective-based initiatives. For example, if you are selling digital marketing products/services, it makes sense to include which specific products/services you want to include in your sales goals.
  3. Additionally, I also agree that your sales team should be determined through affordability of the salespeople. Don’t hire too fast, as that’s a mistake too many employers make. Go slow, hire right, and the results will be well worth it for your business.
  4. Another insight I’d add is to manage the interview process in a smart way: ask the right questions. Too many business owners fail to ask prospective salespeople the tough, pointed questions that shed a lot of light on their character, goals, motivation, etc. Ask and you will know a lot before you hire. This is possibly the most important.

You can read the full article here.

The Dangers and Pitfalls of Trading Dollars for Equity in a Startup

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Recently, I read an article in the New York Times about the pitfalls of taking equity in startups. One big takeaway was simple: how fast things can change in a minute. Startup Good Technology started 2015 off on a great track – its executives and employees expected to launch an IPO late in the year. A few months later, however, the company looked set for financial troubles.

The investors who invested capital into Good Technology made off just fine when dreams of an IPO were dashed and the company was sold to Blackberry. They got a payout. However, the employees did not, as the value of the shares of stock they held in Good Technology plummeted. It was more than just a bad investment outcome, since they actually had already paid taxes on the stock they held.

What can be learned from this? Don’t accept equity-only compensation plans as an employee of a startup. As with any investment, make sure you achieve a healthy balance of equity and cash compensation. Ask your supervisor/manager for updates on company direction and financials from time-to-time, to see if you should be worried about anything. They won’t take it as a bad sign, but rather see it as a responsible commitment to the company. These steps will give you job security, while also proving your commitment to your employer.

Click here to read the full article in the New York Times. I highly recommend it.

2015 Reflections: Make 2016 Better!

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As the new year begins, I encourage everyone to reflect back on 2015; determine what worked and did not work, and use those lessons learned to make 2016 an even better year. Here’s a useful download to help you do that.

Here is a simple one page template that I believe can be extremely helpful for starting the new year off on the right foot, which is something my mother always used to say to me in days gone by. Of course, if you are left handed, I’m sure using the left foot to start the new year will be good too!

Here’s to a successful 2016!

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Social Media Trends for 2016 – Part 2

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Last week, I shared a few social media trends I see taking hold in 2016. It has remained clear that social media will impact small businesses in ways they couldn’t imagine even five years ago. This week, I continue sharing these trends with my readers. Below are some social media trends I see playing a huge role in 2016.

Social media will be happening in the moment, right now

In 2015, we saw the advent of platforms such as Periscope and the recent addition of live video on Facebook. Now, everyone can be a broadcaster on social media at the flick of a switch.

Throughout the coming year, live video and live events will continue to explode on social media, as companies realize their newfound ability to broadcast on the fly to capture customers’ attention. This will mean that companies will have to become more innovative in order to provide the sensory experience that customers will demand on social media.

Google+ may very likely disappear – for good

In 2015, Google continued to promote its own social media platform, Google+. That is, it did until it didn’t. Late in 2015, Google made some sweeping changes to the way Google+ works, and also removed Google authorship permanently earlier this year. What does this mean for 2016?

I believe Google may finally decide to throw in the towel, for good this time, and shut down Google+. The social media platform never took off the way Google intended, and if recent Google behavior is any indicator, it will further streamline its services by removing Google+. Who knows what will happen then?

We’re going to hear about virtual reality a lot

If 2015 was the year that virtual reality graduated to the next level (see Google Cardboard and the NY Times rollout of that product,) 2016 will be the year that virtual reality truly goes mainstream. In 2016, many consumers will be able to get their hands on a low-cost virtual reality viewer, such as Google Cardboard. The result will be companies scrambling to figure out how to take advantage of this new platform.

An interesting question that remains is how social media will be affected by virtual reality. There’s no doubt that live video will play a huge role in this, as 360-video will allow viewers to access new virtual environments previously out of reach (think the jungles of Central America or the plains of Africa.) Will virtual reality experiences be streamed over social media? We will soon find out.

 

Social Media Trends for 2016 – Part 1

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As we wrap up 2015 and look to 2016, it’s clear that social media continues to have a greater impact on small businesses than ever before. In 2016, the ways that businesses use social media will evolve along with the different social platforms themselves. Businesses need to be ready. Below are some of the social media trends I see taking a foothold for 2016.

Influencer marketing will continue to become more important to businesses

2015 was definitely the year that public – and business owners – got familiarized with the term influencer marketing. After all, social media influencers have helped countless businesses promote products and services to large audiences that they previously could not access.

Marketing maven Gerard Boucher, CEO of New York digital agency Boucher + Co., believes that personal branding will become more important, as businesses realize every employee has the ability to become an influencer promoting a company’s products or services. “Influencer marketing within small and medium-sized businesses will be one of the most pronounced trends in the social media business landscape in 2016,” Mr. Boucher was quoted as saying for this blog post.

Video will be even more ubiquitous across social media channels

Video continued to take off in 2015, with more brands taking advantage of the fact that costs of producing high-quality videos have decreased greatly, making great video easily accessible to many businesses. In 2016, that trend will continue, especially with the introduction of new video formats such as 360-degree video.

The ability of businesses to broadcast live video streams on the fly, using a social platform such as Periscope, is a game-changer and will continue to be utilized by more companies in 2016. Recently, Facebook started rolling out live video to a number of businesses, and will continue to do so in 2016, inevitably increasing the utilization of these videos by brands.

Businesses will start to utilize paid social media a lot more

In an ideal world, businesses could post on social media for free, and see their organic content driving tons of engagement and lots of sales. One problem – this is not an ideal world. Almost two years ago, Facebook announced it was shifting its algorithm to focus more on non-sales related content for businesses. This decision greatly reduced the effectiveness of organic social media content promoting a brand’s sales, offers, and revenue-generating products on Facebook.

Since then, paid social media has taken off – forcing businesses to advertise on Facebook in order to reach more customers, drive engagement, and ultimately, drive revenue. This trend will continue to take hold in 2016, as businesses realize the need to make this investment in order to generate revenue and brand equity from social media.

Look for “boosting posts” to become a more widely-understood verb, and Facebook’s revenue to increase as more businesses advertise on that platform.

Please join me next week for Part 2 of this series on Social Media Trends for 2016. 

Is it time for you to sell your business?

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Recently, I came across an article that was published in the New York Times titled, “Baby Boomers Ready to Sell Businesses to the Next Generation.” Naturally, I took notice as I am always looking to evaluate the state of small business acquisitions and mergers, and am always looking for exciting opportunities.

The article discusses how small business owners that were in their late 30s and early 40s in the 1990s, are now reaching retirement age and looking for an exit. I thought this article was relevant, as many of my clients and colleagues are always exploring ways to exit their business and evaluate their options.

Selling your business is a well-known, but often intimidating exit strategy.

Many small business owners dream of selling their business and retiring on a beach somewhere. However, they are intimidated at what selling their business entails. Other small business owners believe selling their small business is going to be an easy cakewalk – in and out with cash in their pocket after a few weeks.

The reality is that selling your business can be an excellent exit strategy, allowing you to reap the rewards of your hard work over many years. However, it is also a time-consuming, cautious process that promises lots of ups-and-downs.

Think it’s as easy as 1-2-3? Think again.

Selling your small business will require lots of effort, focus, and determination to see the sale close effectively. It may mean that you have to invest some money into the business – possibly cutting into your personal income or profit margin. It will definitely mean cleaning up your books and organizing all financial info. The good news is that all of this hard work will be worth it.

Today’s entrepreneurs have plenty of potential buyers in this market.

It truly is a seller’s market – and entrepreneurs and business owners have a lot to look forward to. There are plenty of prospective buyers waiting for the right business opportunity. If you are looking to exit your business – and potentially sell it, you could always visit a business brokerage website such as BizBuySell.com.

To read about the personal stories of some business owners who recently purchased a business, read the full article.

Creative Methods for Keeping Top Employees are Essential to Startups

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I read a fantastic New York Times article today titled “Small-Business Owners Devise Creative Ways to Keep Workers.” It was a insightful read, and I related it to quickly. As a serial entrepreneur and the founder of a number of startups, I have first-hand experience in the dangers of losing employees to other companies.

The article discusses the ways that business owners discover that key employees are leaving their business. For me, I always found out suddenly. Many times, employees would reach out to me and give me their notice seemingly out of the blue. It was painful and endangered my businesses by negatively affecting a key factor of their success – employing top talent. It would often take many days and weeks to re-fill a given position with replacement talent.

Want to know a secret to surviving employee turnover? Don’t panic.

Here’s my advice to every business owner, startup founder, or manager faced with the problem of employee turnover and sudden employee departure: don’t panic. It may sound easier said than done, but it’s truly the key to keeping your sanity – and your business – intact. The easiest way to stay calm in a stressful situation like this is to constantly develop new talent. Always be on the lookout for top talent and potential new hires. When an employee surprises you, move quickly to reach out to the network of prospective talent. You will develop certainty in your business and get the talent your business needs.

Today’s entrepreneurs have a lot of creative options on the table.

Reading the article also gave me a lot of hope. Today, business owners can look forward to the ability to create their own, original incentives to retain talent. The article mentions how one business treated all of its employees, and their families, to an all-expenses paid cruise after they hit some customer acquisition goals. Another mentions gifting an employee a trip to Paris. Incentives like that will help you counter the fast-moving, ever-changing labor market and bring certainty to your business.

To learn more about other creative incentives created by business owners for their employees, read the full article.

Your Must-Read Business Book List

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When we were children, our parents told us to never stop reading. They were onto something big. As adult business owners, an easy and fun way to develop a competitive advantage and get ahead in today’s fast-paced business world is to read. Reading helps you continue to build your knowledge of business, finance, commerce, and just about any other topic.

Fortunately, there is plenty of reading material for those looking to read the most progressive and insightful business books, and get ahead, in the next several months. Here are four of my favorite business book picks for 2015 and beyond:

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It, by Michael Gerber

This book is one of my must-reads. I highly recommend it to all of my small business clients, and anyone who is thinking of starting, or has, a small business. The book discusses the importance of placing components of your small business on auto-pilot, allowing employees to assist you in the day-to-day execution of tasks, and giving you the peace of mind to strategize the business.

The Intelligent Entrepreneur, by Bill Murphy

Focusing on the experiences of several Harvard University alumni, this book takes a look at those who turned down high-paying, fancy jobs for entrepreneurship. I especially love it because it relates to the many people I meet each week here in New York City. It inspires me to be a better entrepreneur, and has inspired many to take on entrepreneurship.

The Lean Startup, by Eric Ries

I’ve always loved The Lean Startup since the first time I read it, because it truly makes you go through the (sometimes) painful process of elimination that comes with developing a great and viable business idea and product. By facing the hard reality of starting a business early on, first-time entrepreneurs will be more likely to succeed and develop a sustainable, long-term business.

Think and Grow Rich, by Napoleon Hill

This classic is a must-read for any entrepreneur, small business owner, or anyone looking to better understand why certain people have been extremely successful and made a lot of money. Think and Grow Rich is also a very entertaining and insightful read as it dives into the lives of those who have already experienced huge success.

Read the full list of must-read business books here.