'Why I Never Post Job Openings'

Instead, I give candidates permission to stalk me. They should find out what I'm up to, track me down, introduce themselves, let me get to know them. It works.

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People often ask me how to get a job at my company, User Insight. The truth is, I rarely, if ever, post available jobs. This doesn't mean that I don't have any jobs open--that the company isn't growing, changing, or replacing staff.

It's just that I know, like everyone else, that the current job market is difficult, and I don't have time to go through the hundreds, even thousands, of résumés that would come in after posting a job opening.

In addition, many client staff members approach me about coming to work for User Insight, so I want to protect myself from having to tell current customers they might not be the right fit for open positions.

Here's how I approach recruiting top hires:

I give candidates permission to stalk me.  

I actively discuss via social media and on my company blog which events I will be attending, where I am presenting, and what's going on at my company. This gives candidates plenty of opportunities to find me, engage with me, let me know more about them, and learn how they might fit at User Insight. A candidate could even choose to show up at one of the events I'm attending and introduce herself, then comment on a blog post or give me input on one of my presentations. When I start to consider how I'll fill an opening, I take a few minutes and think about the skill sets of those folks who are readily top of mind.

I expect those who come for an interview to stalk me.

With as much information as my company puts out on social media and the Internet broadly, a candidate should already know a lot about me, what User Insight does, the individuals she might meet on interview day, and what we're all going to talk about. As a result, her questions during the interview can be more directed and the conversation can be more substantial, giving us all a better ability to quickly make a decision about working together.

I stalk potential hires.

I look at what kind of information candidates disseminate about themselves on social media. I want to hire people who are passionate about the type of work my company does. I also want employees who are creative and naturally curious, so I use their social media presences and other content to help me determine whether they could be a good fit.

I believe the future of business is in thought leadership and intellectual property, so I want to hire people for how they think, not just to do a job.

The rules of hiring and job promotion have changed forever. It takes different techniques and approaches to stand out and uncover those opportunities.

Eric V. Holtzclaw is CEO and founder of User Insight, a user-experience strategy and consulting firm. Holtzclaw's weekly radio show, The "Better You" Project, shines a spotlight on entrepreneurs' business journeys. @eholtzclaw

Houses That Entrepreneurship Built

Location: Los Gatos, California

Price: $1.125 million in 1987

Woz's playhouse: Wozniak built the house with kid-friendly features, like a cave in the backyard.

Wozniak, who co-founded Apple with Steve Jobs, purchased this Los Gatos home in 1987 for $1.125 million, about two years after Wozniak had already left Apple to start CL9, a remote control company. Wozniak is well-known for his work with kids, and the house--which he sold in 2004--served as the unofficial headquarters for Unuson, a company Wozniak uses to focus his educational and philanthropic efforts, like computer training for local students. According to a 2003 Wired profile of Wozniak, classes for Unuson were held in his three-car garage, which included "computer equipment, class supplies, and unopened cases of Jolt."

Can Introverts Be Great Entrepreneurs?

Conventional wisdom suggests you must be bold and outgoing to be successful. Here's why the stereotype doesn't hold up.

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Stereotypes can be devastating, especially when you apply them to yourself. One of the most persistent within entrepreneurship is that founders must be true extroverts: gregarious, outgoing, and always ready to press the flesh. If the image of glad-handing your way through a crowd sets your teeth on edge, you might assume that running a business is not for you.

If so, put that thought out of your mind. According to Sophia Dembling, author of The Introvert's Way: Living a Quiet Life in a Noisy World, introverts not only can be effective in business, but they also have traits that support good leadership. The important thing is to understand how to make your psychology work for what you want.

What is an introvert, really?

The first step is to realize that shyness and introversion are not the same. "As one researcher explained it to me, shyness is a behavior in reaction to conditions, and introversion is a motivation," Dembling says. Natural extroverts can actually be shy. Whether introvert or extrovert, it's important to know that shyness can be overcome. "Introversion is hardwired, and there is no reason to want to overcome it," she says.

As Dembling describes it, introverts lose energy from being around people and gain energy from being alone, while extroverts are the opposite. "It's simply a different way of functioning in the world and no better or worse than extroversion, although we've all been told that extroversion is better," she says.

How to work with what you are

When you know how you best function, you can come up with tactics to take advantage of your inclinations. For example, if you must be at a conference and interact with many people, be sure to keep evenings free for some downtime by yourself. "Maybe you don't want to go to group events where you're trying to throw elevator pitches out," Dembling says. "Maybe you need to schedule one-on-one meetings." The entrepreneur might also look for odd moments to recharge during the day, whether taking a walk around the block or lunch by yourself.

Interestingly, public speaking may be fine if you can work from a prepared script or presentation and not improvise. "It's really recognizing where your strengths are and where your weaknesses are and not judging them," she says.

Key decisions to consider

Being introverted will also affect strategic choices of how to structure your business. For example, an introverted business owner or executive might choose to lead a team of extroverts. "Your abilities to listen and process information are real strengths," Dembling says. "You might need to listen, step back, think about it, and come back to them" and avoid being steamrolled by the team members. An extrovert might run into conflicts, competing with extroverted team members, and be better off with a largely introverted team.

An introspective entrepreneur might favor a smaller business run out of a home office, with significant amounts of private time, rather than a larger undertaking. Although it is possible to fall into the trap of isolating yourself too much.

Because of the confusion with shyness or its opposite--boldness--you might want to get a better sense of where you fall on the continuum between introversion and extroversion. Tests like the Myers-Briggs Type Indicator can provide an inexact approach to understanding where you might stand.

Erik Sherman's work has appeared in such publications as The Wall Street Journal, The New York Times Magazine, and Fortune. He is a blogger for CBS MoneyWatch and InsideInvestorRelations.com. @ErikSherman

How You Can Recruit Top Talent

Take a cue or two from Justin Yoshimura, a 23-year-old Silicon Valley serial entrepreneur who is his company's lead headhunter.

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I recently received a note from the CEO of a company in San Francisco who wanted me to check out a letter posted on his website that he uses to attract talented employees. I'm impressed with his unique approach to hiring in what is an incredibly competitive market: software engineers in Silicon Valley.

Before I get more into his hiring strategy, let me tell you more about this CEO. Justin Yoshimura is only 23 years old, and he's already a serial entrepreneur. Like me, he was raised in Los Angeles, but unlike me, he started thinking about business very early. At age 12, he had 25 lemonade stands, and a couple of years later he got into e-commerce selling--a lot--on eBay. He soon realized that the key to customer retention is online loyalty programs, so he built his current company, 500friends, a cloud-based loyalty software-as-a-service that rewards customers.

There are several things I find refreshing about Yoshimura's hiring tack:

1. It's unlike any other I've seen. How many CEOs do you know who personally reach out to find good talent?

2. He's humble. In his letter, he talks about the fact that 500friends sometimes makes mistakes in the hiring process. He also promises to rectify those mistakes quickly.

3. He talks openly about trust. He mentions the relationships a new employee could have with other co-workers at his company, building that sense of trust before an individual even starts his first day on the job.

4. He'll fund employees who want to be entrepreneurs. He recognizes that many of his new employees want to start their own business someday, so he promises them seed capital for new ventures after only two years of employment.

I don't see any gimmicks here. I see someone who is genuine about his recruiting approach. 

And Yoshimura gets big payback. He's been able to recruit and hire senior executives and engineers without ever bringing on a headhunter, even though he's competing with many bigger, better-funded companies with more resources dedicated to finding talent. He's also built a team of trusted employees who are empowered and accept accountability for their successes and failures. And he'll be able to look back and feel rewarded that he had a tremendous impact on the lives of the people he worked with and gave them entrepreneurial opportunities in the process.

So when you're looking for your next key hire, think of Yoshimura and this job well done. If trust, honesty, humility, and opportunity worked for him, think of what they can do for you.

Paul Spiegelman is founder and CEO of BerylHealth, which manages patient interactions for hospitals, and co-founded the Small Giants Community with Inc. editor-at-large Bo Burlingham. Read more at PaulSpiegelman.com. @paulspiegelman

6 Signs You're Not Fit to Lead

Leadership isn't forever. Here are six signs it's time to step down.

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Many leaders remain in power unless a clear mistake derails their tenure. Yet, many leaders also struggle with remaining fully committed to the challenges of leadership. They owe it to themselves, and to their organizations, to honestly determine when their particular role as leader has run its course and to take action.

Here are six patterns that signal it is time to move on.

You can't or won't fire your friends.

This is most prevalent in start-ups, family-owned businesses, or closely held companies. A group of co-founders may select one member to become CEO, and over time that person may not be able to replace colleagues who are ill-suited to their growing roles. In a family-run business, hiring and promotions are used as tools to maintain family harmony, or to appease a relative who has invested capital.

An extreme case is News Corporation, founded and ruled by Rupert Murdoch. He dares shareholders to sell if they object to his preference for running the company as if he were presiding over a raucous dining-room table filled with his children and assorted flatterers.

You don't need to run a global media empire to fall into this trap. If you can't do what is best for the shared purpose by making realistic, objective, and discerning decisions about hiring, promoting, reassigning, and even firing those closest to you, you are not fit to lead. 

Even if you are unaware of this blind spot, others in the company will see your behavior for what it is: favoritism, fickleness, or careless leadership.

You disengage from responsibilities or the peripheries of your organization. 

Every leader prefers certain responsibilities over others, and sometimes it can be easy for a leader to turn a blind eye to the unpleasant tasks in favor of more appealing activities. But consider the cost of not leading the whole organization.

Have you stopped looking into the peripheral corners of your role? Are you deflecting difficult discussions or confrontations with a direct report, team, partner, or customer? 

Leadership requires embracing whole situations, not selective components. The organization may need you to confront the exact person or thing you are avoiding. If you can't do it, the organization needs someone who will.

You believe you are indispensable.

A leader who is 'indispensable' is presiding over an organization incapable of looking after itself. An indispensable leader has enabled the highest form of organization dependency and dysfunction. That is not something to brag about. If you believe you are irreplaceable, you should examine exactly what kind of work you have been engaged in and consider replacing yourself.

Your inner circle stops telling you the truth'because you stop asking.

Leading inside a bubble is a common and dangerous dynamic. The human tendency is to automatically believe in our own positions, abilities, and decisions, and to rely too heavily on our own point of view. Leaders need to press others to provide contrary perspectives. This only happens when a leader insists upon it and provides a safe environment to voice dissenting opinions.

As a leader, if you don't challenge others to challenge you, the odds are that they won't. If you stop asking others to tell you the truth, they will simply tell you what you want to hear.

You do not take responsibility for negative actions of the company.

Rupert Murdoch, again, proves useful. At the height of the London phone-hacking scandal involving one of his newspapers, Murdoch was asked by a government committee whether he was ultimately accountable for those in his employ. He said no; those who engaged in the dubious conduct bore sole responsibility, and it had little to do with him.

While empirically true (after all, we are each responsible for our actions), Murdoch missed the invaluable point. A leader must take the final blame in bad times, because he is looked to as the guiding force during good times. Not even Murdoch can have it both ways. If you are unable to take all of the responsibility, it is time for someone who will.

You fail the middle-of-the-night test.

In the middle of the night when you wake up to go to the bathroom, take a quick look in the mirror. At that moment, no one cares about your job title, your wealth, or your accomplishments. 

In the darkness and quiet, you will glimpse your leadership in the reflection because you will see yourself in vulnerable solitude. What does the reflection say? 

That you are earnestly striving to learn, grow, and be worthy of leadership? Or that your heart is not in the journey and that it is time to move on? 

Life is too short to ignore either answer. So act.

Brian Evje is a management consultant with the organizational-effectiveness practice Slalom Consulting and an advisory board member of Astia, a global not-for-profit dedicated to increasing women's participation in high-growth businesses.

Airbnb: Changing Travel as We Know It

Can you believe the home-rental site that lists properties in 30,000 cities across 192 countries once had trouble raising $20,000? Now it is valued at $2.5 billion.

Courtesy company

Calling All Couches: Nathan Blecharczyk (far left), Brian Chesky (middle), and Joe Gebbia's start-up Airbnb is like a Craigslist for the couch-surfing set.

In many ways, Airbnb is the classic story of Silicon Valley: A clever product, a massive market, and--as one investor would later say--founders who just "won't die."
 
In 2008, the three founders--Brian Chesky, Joe Gebbia, and Nathan Blecharczyk--approached about 20 investors to fund their company, then dubbed "Air Bed and Breakfast." Ten investors returned their e-mail. Three met them for coffee. None invested.
 
After all, two of the three founders were designers--not coders, nor MBAs--so the trio didn't exactly fit the Silicon Valley start-up archetype. But they persisted.
 
Without funding for their start-up--and quickly running out of savings to pay the rent--the founders found other ways to scrape together cash. Using their background in design, they created collectible cereal boxes and sold them online. One of the cereals, Obama O's, "A Breakfast for Change," ended up being a hit.  They netted $30,000, which bought the founders a few more months, and continued to pitch the Airbnb concept to investors.
 
Then, at a dinner with the founders of Justin.tv in November of 2008, they were convinced to apply to Y Combinator, the accelerator founded by Silicon Valley legend Paul Graham.
 
Graham, who would eventually accept the founders into Y Combinator, recalls that he thought the idea for an online bed-and-breakfast search-and-reservation service was "terrible," but he liked that the founders were relentless in their desire to start a business--really any business. They, in his words, just "won't die."

With the acceptance into Y Combinator, the founders raised $20,000, and they kept iterating on the concept. They changed the name to Airbnb and developed a sleeker design.
 
It began to catch on. In 2009, the company raised a seed round of $600,000. A year later, it raised another $7.2 million (and its founders were named to the Inc. 30 Under 30 list). Finally, by February 2012, the company had registered an impressive five million nights booked, a figure that continues to grow. Though the company does not release revenue figures, some back-of-the-envelope calculations reveal it's feasible the company may make nine figures this year.

Here's how we we figure: Airbnb takes a 6% to 12% commission on each room booked. In 2011, about four million nights were booked. Assuming an average price of $100, and a 10% commission--the company made at least $40 million in net revenue in 2011. Numbers from 2012 are already far more impressive: from January to June 2012, the company booked five million nights. Assuming the company's growth stays (at least) constant for the rest of 2012, the year will close out with 10 million nights booked. Using the same averages--10% commission on an average of $100 rooms--Airbnb could be making $100 million in 2012. 
 
In total, Airbnb has raised about $120 million in venture financing from a coterie of high-profile investors (including Andreessen Horowitz, Sequoia Capital, and Jeff Bezos) who have valued the company at $1.3 billion. Last month, it was reported that Peter Thiel considered staking the company with $150 million of his own money, which would have valued it at $2.5 billion. It's an international endeavor, too--the site has locations in 30,000 cities across 192 countries and is boosting new revenue streams into those communities. According to a study Airbnb commissioned, Airbnb travelers spent $56 million in San Francisco from June 2011 to May 2012.

But what's talked about less--both in Silicon Valley circles and outside them--is the cultural effects the company is having on our collective idea of travel. Namely, the idea that Airbnb might subtly be redefining people's attitudes towards adventure and exploration. Because, well, let's face it: letting a total stranger into your home--or entering a stranger's home for a week-long stay--could potentially be the beginning of a horror movie.
 
But for the vast, vast majority of users, that's not the case. In fact--it's quite the opposite.
 
Airbnb has become the go-to facilitator of adventure-esque travel experiences. For many people, now and into the future, the idea of a vacation may no longer be about 'Hey, let's visit City X,' and more about 'Hey, this guy's eco villa in Hua Hin, Thailand, looks amazing, we should go there.'" To that end, the company created its own "Wish List" of outlandish rentals. Spend a few days in a house boat in Spain, a cave in Greece, or a Frank Lloyd Wright home in Wisconsin--it's up to you.
 
"When we created Airbnb, we never dreamed that one day we would be offering everything from treehouses to entire private islands," Brian Chesky, the CEO and co-founder said recently. "Wish Lists allow our community to discover some of the planet's most inspiring destinations."

So in many ways, Airbnb is creating a new class of tourism: the anti-tourist, if you will. The early adopters of Airbnb understand that visiting a new city is much more than visiting the typical cultural touch points--it's about meeting new people, understanding how a community lives, and, whenever possible, finding a unique perch to spend the night.

 

Eric Markowitz reports on start-ups, entrepreneurs, and issues that affect small businesses. Previously, he worked at Vanity Fair. He lives in New York City. @EricMarkowitz

Meet the 'One Size Fits All' Website

You could drive yourself crazy trying to build different versions of your website to fit every screen. Or you could try this strategy.

Flickr photo courtesy of Jeremy Keith

Websites no longer live on the desktop. Your customers are on their tablets and smartphones browsing the Web, seeking information, often with a transactional intent--serving their mobile needs has become paramount.

The trouble comes, however, when you start thinking about how best to build your mobile website. Which devices will you design for? The full-size iPad or the iPad mini? The iPhone 5 or the massive Samsung GS III? It's easy to see how this can become a never-ending problem. Just try opening up your website on multiple devices and see how easy it is to use.

You could go crazy building multiple versions of your website to try to fit every possible screen size--but chances are, your site still won't look quite right on every device. Or you could use what's called responsive Web design, which is a technique that allows your website to adapt, dynamically, to various screen sizes.

What is a responsive website?

It's one website that adapts to every device size, thus eliminating the need to create a mobile-only website. As screen sizes become smaller, a responsive website reprioritizes content and modifies its design on the fly to meet the needs of users on any given device.

The Fork CMS website adapts to varying screen widths from a desktop computer monitor to the screen of an iPhone 3G. 

The Starbucks website can handle every screen size.

What's different here is that most websites cannot adapt to all screen sizes. They either appear in full size on mobile devices or redirect users to a website built specifically for mobile devices. The problem is that between desktops and smartphones, a huge range of device sizes is neglected. Responsive design ensures that every device displays your content in a usable and visually appealing way, without the need to create multiple versions of your site.

Why does it matter if I have a website that adapts to various devices?

You could be thinking that because your website looks just fine on an iPad that you have nothing to worry about. Think again. Tablet users are not using a mouse to browse your website. Instead, they've got only clumsy, inaccurate thumbs and index fingers at their disposal. If you have a list of links with fewer than 40 pixels of space around them, then users are likely to make mistakes when tapping a link. Are you asking users to fill out a lengthy Web form? Forget about it. No one likes typing an essay on an iPad.

Smartphone users have even more needs. Not only are they using their thumbs, but they are also very goal oriented. If a smartphone user is on your website, it's most likely because he or she wants to call you, find you, or quickly get an idea for what it is you do. That means providing those actions explicitly, with large buttons, and having a website that loads quickly.

Finally, responsive Web design has been recommended by Google as ideal for mobile search-engine optimization. It eliminates the need for multiple URLs and better meets the needs of all types of mobile users.

Who is responsive design for?

It can be used for any type of website that is seeing a substantial amount of traffic coming in through mobile devices. Mobile users are as important to your marketing efforts as desktop users are and may be even more valuable in some cases. It's important to give them a positive impression.

If you are planning to redesign your website any time in the next year, I recommend waiting to go responsive until then. Unfortunately, rewiring your existing website to become responsive can be as expensive as getting a new website. It is much more cost effective to make a new website responsive from the get-go.

If you're on a budget and simply need a mobile website immediately, then do things the old way: Create a separate mobile website. Wait until you can overhaul the whole shebang before you make the move to responsive.

Alhan Keser is a conversion optimization specialist and director of training and development at Blue Fountain Media, a digital agency in Manhattan. When not at a computer, he can be found crossfitting, traveling South America, and studying psychology. @AlhanKeser

A Great Leader's Year-end Checklist

The year is almost over. Great leaders know how to tie up loose ends and make sure their employees are happy and ready to move forward.

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Salespeople live and die by the annual review. Auditors have built an entire industry around it. For the next month, print and television media will pour out gallons of coverage of the past year in review.

And yet, as leaders, we often move from one year to the next with little or no time spent reviewing the year just past from a purely leadership perspective. To help counter that, here's my five-point year-end leadership checklist:

1. Manage the narrative. Every business, division, department, project, group, or team ends the year with an often unspoken (but widely accepted) narrative:

--"We blew it."

--"We nailed it."

--"Our customer service team let us down."

--"The first three quarters sucked, but the fourth wasn't too bad."

Your mileage will vary. As the leader, it's your job to understand what narrative has taken hold in your team and to manage it accordingly. 

This isn't the same as PR or spin. Managing the narrative isn't about manipulating what people think. It's about knowing what has taken root in your team's perception and helping the team members understand its importance.

So--as this year closes, what narrative has your group or team subliminally adopted? How accurate is it? Do you need to amplify or clarify any of it? Does it need to be discussed as a group? What lessons can you all learn from the narrative?

2. Straighten the angels. Next week, we'll put up the Christmas tree in our house, and as always, the final thing we'll do is to straighten the angel at the top.

Whether you've had your best year ever or the worst year imaginable, some--probably all--of your top performers will have been bent out of shape getting you through it. 

Some of them will have developed less than helpful traits - of arrogance, perhaps, or gruffness, or maybe just thoughtlessness. Some will be harboring grudges or feeling hurt or confused. Others may have been blindsided by events and are finishing the year off their game. One or two may simply be exhausted.

They're your angels. You're their leader. You need to go straighten them out.

3. Cull. In the course of any year, there's a whole bunch of individual and group dynamics that lose efficacy and that only you can untether. Practices that have become outdated; policies that no longer work; routines, rituals, and habits that now just get in the way; meetings that have lost their purpose.

Ask for nominations of less-than-useful activities from your team, but make the final decision yourself--and make everyone's life simpler by culling those that truly yield no ongoing benefit.  

4. Restock. During the year, you and your team will undoubtedly have used up one or more of the staples of healthy group interaction: energy, perhaps, or enthusiasm. Maybe as a team you've lost a sense of fun, or maybe you've run short on objectivity or perspective.

Take a moment and think about it. Again, take soundings from your colleagues. One way or another, you don't want to start the new year with one or more of those staples missing from your team's pantry. 

When you've identified which is missing or has run down to dangerously low levels, think through how to restock in the next 30 days--can you give the holiday retreat or your end-of-year address a theme? Do you need to give your folks some mentoring or coaching or training; or just a rest or a new perspective?

5. Center yourself. Finally, what about you? How have you changed as a leader this year? 

Draw a line down the center of a page, and list in one column your defining characteristics at the start of the year, and in the other, your defining characteristics at the end of the year. How do the two lists differ, if at all?

Ask someone who knows you well to repeat the exercise, from his or her perspective of you. How similar is his or her list to yours? 

As you look at the two lists, which characteristic of yours most helped your group or team this year? Which characteristic caused the most trouble? (When you've decided, ask your team members if they agree--you may be surprised by how differently they view which characteristics are your strong points and which are weaknesses.)  

Next year, how can you do more of the first characteristic and less of the second?

 

Les McKeown is the author of the bestseller Predictable Success: Getting Your Organization on the Growth Track--and Keeping It There and is the CEO of Predictable Success, a leading advisor on accelerated organizational growth. His latest book is The Synergist: How to Lead Your Team to Predictable Success. @lesmckeown @lesmckeown

5 Smart Ways to Use Holiday Downtime

With these five tips, you can make the most of the holidays to prepare you for the coming year.

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I've come to accept that very little business, aside from retail, gets done from Thanksgiving to January 3. After a few years of chasing people who were party bouncing or traveling, I decided to simply disconnect in December. In 2009, a month in London helped me flesh out a new book concept. Last year, a month spent in Vietnam was an eye-opening cultural learning experience. (It was fairly eye opening for my new Vietnamese in-laws as well.)

Whether you are going to cruise the party scene, manage the buying rush, or simply disconnect, there is no reason you have to let the holidays be less than productive for your business and career. I have personally found a combination of engagement and distance works best for me. Here are the five Rs I will follow this year to maximize the potential of my holiday activities.

1. Reconnect

This is a great time to reach out and make contact with important people you haven't spoken to in a while. Send them a holiday wish or e-card to remind them why they are important to you. Better yet, as long as you are in the holiday mode, get a small gathering of friends together for a little holiday cheer. No need for a big party. Keep it to a few people with whom you really want to spend some quality time. Even if they can't work you into their party schedule, you'll be fresh in their minds to connect in 2013.

2. Reflect

With New Year's around the corner, this is the best chance to look back on the year and think about what you've learned and what's left to resolve. Make a list of your five greatest accomplishments for 2012 and identify any patterns in your behavior that led to the success. For more learning, list five failures from the year and identify behavior patterns you can improve to make for a better 2013.

3. Reposition

It's a good chance to start anew with how you are presenting yourself in the business community. Take a detailed assessment of your website, your marketing materials, your Facebook page, your YouTube page, and especially your LinkedIn profile. Make sure these broadcasting tools present you and your company in a truthful, positive, and up-to-date manner. Make sure what you are projecting is consistent with your values and goals for the future. Make sure your message to the public is clear and compelling for 2013.

4. Recruit

Now is your best opportunity to find those people who will help you soar in 2013. Whether you are seeking new connections, employees, mentors, or partners, the holiday season is timely for beginning those conversations. Many people are reassessing their year and thinking about what's ahead, and the generous, festive atmosphere makes them more open to ideas they wouldn't normally consider. Keep your eyes and ears open at parties and gatherings for those who can help on your journey, and make contact.

5. Relax

Even though you may have extracurricular activity or year-end filings or a retail rush, most of you will still have several days of pure business downtime, much of it from December 21 to January 3. Take advantage of the frequent slow-call days, half-days, and long weekends to rest, regenerate, and recharge. Spend quality family time or alone time to get ready for the year ahead. The first quarter can be the most focused and productive, particularly in cold-weather areas. Start January feeling strong, positive, and raring to achieve your preferred future.

I hope these tips serve you well to make for a spectacular 2013. If I can help you in your journey, send me an email, and we can share some holiday cheer and truth any time of year in Manhattan. Happy holidays.

An Inc. 500 entrepreneur with a more than $1 billion sales and marketing track record, Kevin Daum is the best-selling author of Video Marketing for Dummies. @awesomeroar

4 Habits of Bad Decision Makers

Every day, you must make decisions large and small. Here's what's keeping you from making them more confidently.

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Decision making is critical to entrepreneurs. Every day, you have to set out on a course of action, choose tactics, evaluate results, and otherwise choose from arrays of options.

And yet, making decisions can be much trickier than it would seem. Here are four common mistakes that can trip you up.

1. Monumentalizing the Trivial

A recent analysis from University of Florida and Wharton School researchers offers a reason why people get mired in what should be easy and unimportant decisions. They associate important decisions with difficulty. If, for whatever internal or external reason, a decision on an unimportant matter becomes taxing, the importance of the result is magnified. That is particularly true when you think the decision will be easy to make in the first place.

When that type of association starts, it sets off a feedback loop that amps up the impact. As you think the decision is increasingly important, chances are you spend more time and effort on it, increasing the complexity of decision making. One way to deal with it is to place a limit on how long you're willing to spend addressing the issue. When the time ends, make your choice and move on.

2. Dredging Sunk Costs

One of the classic problems in effective decision making is not recognizing sunk costs for what they are. A sunk cost is one that you've made and cannot recover. For example, you invest in new order-taking software and learn that it doesn't work well for your business and is actually creating more work for employees.

But no one likes having thrown money away, so you think if you just spend a little more, you can salvage the previous expense. All too often, that leads to the situation called throwing good money after bad.

When faced with having invested heavily in sunk costs--whether money, time, or emotion--take a step back and forget them for a moment. Look at how much the decision can be worth to you and your business, and estimate how much it would take in total to follow through. If the tally is higher than the benefit, then it's time to change your decision.

3. Drowning in Data

Businesses have gone data crazy, and for good reason. Data and information can help you make smarter decisions. But too much of a good thing can overwhelm you--and lead to analysis paralysis. Similarly, you might have bad data or pay too much attention to factors that confirm what you'd like to think and not necessarily reality.

The first step to cure this is to make sure that the data you have is relevant. If you're charting a course into new markets or product types, realize that historic data probably won't help, because it tells you only where you've been, not where you're going. Look for data that can illuminate the future, not the past.

Next, look for the two-by-four that should be hitting you over the head, not arcane subtleties. There are only so many factors you can keep in your head at any one time. Identify no more than 10 pieces of data that will have a strong impact on your decision's outcome. Then forget everything else. If things go badly, reexamine whether you've chosen the truly important factors.

4. Do-or-Die Mentality

We live in a world of hype, and it's all too easy to overemphasize the importance of anything: a date, an investment, or a business decision. Very rarely must you make a single make-or-break decision, and if you do find yourself there, chances are that you have made many mistakes on the way.

Realize that every decision is temporary. Conditions will change, and you can almost always change your mind and course at a later date. You might lose some time or money in doing so, but better that than racking up the sunk costs and driving into a brick wall from stubbornness. You want your business to last for the long haul, so use an overall decision-making strategy that stretches over time, not that imagines each moment to be the most critical one for the business.

Avoiding these four problems won't guarantee that you make smart decisions, but it will free up time and energy and improve your odds.

Erik Sherman's work has appeared in such publications as The Wall Street Journal, The New York Times Magazine, and Fortune. He is a blogger for CBS MoneyWatch and InsideInvestorRelations.com. @ErikSherman

Feeling Negative? How to Overcome It

Your negative emotions are powerful guides to what needs to change in your life.

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Because you're a human being, you're going to feel emotions while you're at work. It's hoped that the bulk of your emotions will be positive, such as excitement, wonder, gratitude, and joy.

However, it's inevitable that you'll also feel some negative emotions. But here's the thing: The way you handle your negative emotions will largely determine how successful you'll eventually become.

After all, it's easy to manage a business or do a job when everything's all sweetness and light. What's difficult is making things happen when times are rough and things don't work out the way you'd prefer.

With that in mind, here are the six most common negative emotions that people feel at work, along with a plan to transform those emotions into something to help you become more, rather than less, successful.

1. If you're feeling fear...

Step back for a second and try to see the situation objectively. Ask yourself: "Is my business or career truly at risk?" If not, then you may just be feeling nervous and excited rather than fearful, just like when you get on a roller coaster. So enjoy the ride.

If you decide that the situation is truly serious, then do something physical, like taking a walk, to clear your mind. When you return, create an action plan for how you're going to handle the situation right now.

Think of all the times that you've successfully handled similar situations or other situations that were personally challenging. Have faith that you'll be able to do the same this time. Then take the first step in your action plan.

2. If you're feeling rejected...

Decide whether you actually respect the opinion of the person who "rejected" you. If the rejection came from an idiot, a blowhard, or a mooncalf, a "rejection" is actually a backhanded compliment.

If you DO respect the other person's opinion, recognize that you may be interpreting the situation incorrectly. The only way to find out is to ask. Say something like: "The other day, you said ____ and I felt hurt. Can you clarify what happened?"

Finally, realize that, in a very real sense, "rejection" is an illusion. It almost always stems from a difference in the "rules" by which people interpret events. Probably you got "rejected" because the other person had different rules. So where's the sting?

3. If you're feeling angry...

Your first task is get some distance from the situation. If you can, get up and go for a walk, or do something that will distract you for a moment. If you can't take any of those actions, use Mom's old standby and slowly count from one to 10.

Now that you've calmed yourself down, pinpoint the reason that you're angry. You will find that in EVERY case, it's because somebody has violated a rule or standard that is deeply important to you.

Rather then "blowing up" or "letting off steam," figure out how to communicate to the other person the importance of that rule or standard so that the same situation doesn't recur in the future.

4. If you're feeling frustrated...

At work, this emotion emerges when you feel that your results aren't what you expected, given the amount of work and effort that you've expended. You know your goal is achievable, but it continues to seem out of reach.

Your first step here is to reassess your plan and your behavior. Is this really the best way to achieve this goal? If not, your frustration is telling you that you need to change the plan and the execution of the plan.

If your plan is solid and your behavior appropriate, it's time to exercise patience. Stop worrying about the goal. Let go of your results and concentrate on the behavior and have faith that "God's delays are not God's denials."

5. If you're feeling inadequate...

Welcome to the club! Whether people admit it or not, even those who seem the most self-confident secretly worry that they're not going to measure up or that they're ill prepared for the challenges ahead.

The wonderful thing about this emotion is that it's the easiest to handle. Your sense of inadequacy, like everyone else's, stems from a lack of skills, experience, and strategies in an area where you'd like to be successful.

Your plan is therefore simple: Decide that you're going to work on your skills in this area until you master them. Find a role model or a mentor. Read books or take seminars. Worst case, you'll learn in the "school of hard knocks." It's just part of life!

6. If you're feeling stressed...

There's no question that today's business world puts extraordinary demands on people's time and energy. Whether you're an entrepreneur, an executive, a line manager, or a worker, you're constantly being asked to do more with less.

Even so, you (like everybody else) are constrained by the limits of time and space. Regardless of how you feel about it, you've got a limited amount of time to get things done and to keep yourself healthy and happy at the same time.

Therefore, the best way to use stress is as a signal that it's time to prioritize. Do what's important rather than what's urgent. Remember: Twenty percent of your work generally produces 80 percent of your results! So focus on the 20 percent!

By the way, the above is loosely based on some notes I took at an Anthony Robbins seminar a couple of decades ago, along with additional perspectives gleaned from the brilliant speaker and savant Art Mortell.

Like this post? If so, sign up for the free Sales Source newsletter.

Geoffrey James writes the Sales Source column on Inc.com, the world's most visited sales-oriented blog. His newly published book is Business to Business Selling: Power Words and Strategies From the World's Top Sales Experts. @Sales_Source

Secret to Doing More? Work Less

Do you really believe that neglecting yourself and living in overdrive will build your business faster? Time to debunk that myth.

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Imagine that you are a pilot, flying to a dream destination.

Suddenly the air pressure in the cabin drops; your brain goes into overdrive as you frantically assess the problem and work toward the solution. With adrenaline pumping full speed, you refuse to take the time to put on your oxygen mask. Instead, you push harder and worry more.

What are the odds of landing your aircraft safely?

Many entrepreneurs show a similar behavior pattern; wanting to get to the destination of their dreams, oftentimes becoming reckless with their health and well-being while on the journey. Building a business may be hard work--but attempting to go the distance with no gas in the tank is futile.

You know who you are. You want to do it all and won't let go of the controls, even for a moment. You want to please everyone and typically put your own needs on the back burner to do so. Perhaps you don't see enough of your family, or your stress doesn't allow you to enjoy the time you do have with them.

It's time to reach for the oxygen mask.

But you don't believe that you have the time to relax, eat right, or exercise, do you? That's a misguided belief, because doing these things will actually give you more mental and physical energy, resulting in an ability to achieve more. You will make better decisions, feel less moody, and think more clearly.

In a study published in Psychological Bulletin, researchers analyzed 70 studies on exercise and fatigue involving more than 6,800 people.

"More than 90% of the studies showed the same thing: Sedentary people who completed a regular exercise program reported improved energy levels compared to groups that did not exercise," says Patrick O'Connor, a professor in the department of kinesiology at the University of Georgia. "It's a very consistent effect. The results show that regular exercise increases energy and reduces fatigue."

So rather than sitting sedentary behind your computer for eight (or nine, or 10...) hours, use one of those hours for a good workout. Imagine, a nice run in the woods or a bit of time in the weight room actually being good for your business! Imagine feeling energy instead of fatigue. How much more could you get done in a day?

Adding five to 10 minutes of daily meditation to your exercise routine will compound the effect, offering greater clarity and peace of mind. If you believe you can't meditate, you're wrong. Anyone can meditate, because there are so many ways to do it. For instance, if your mind is always in overdrive, teach yourself to daydream. Imagine a beautiful, peaceful place, and create the feeling of actually being there and doing the things you love most. Or, let your brain relax and wander into daydreams while you mindlessly pull weeds in your garden for 10 minutes.

These simple acts are a form of meditation; although you are not stilling your mind, they offer a similar effect. If you are able to relax, let go of your worries, and imagine peace and tranquility, the answers to your problems will magically appear. As a bonus, mental exercises like these are also good for your heart and overall health.

How often do you skip meals? Or worse, grab a bag of chips to quiet your rumbling tummy? 

"It is very important to maintain a normal blood sugar, and the best way to accomplish this is to eat every few hours," says Dr. Dan Benardot, a nutrition researcher and professor of nutrition at Georgia State University in Atlanta. "But don't overdo it," warns Benardot. "Overeating can be just as bad as starvation. Ingesting large quantities of food stimulates insulin production and the deposition of fat."

Keep healthful snacks readily available. Raw nuts, lean meats, and a moderate amount of fruit are easy to keep on hand. Snack in small amounts every two to three hours, and if you have to skip a proper meal on occasion, these energy snacks will keep the engine running.

Avoid the myth that self-sacrifice leads to greater productivity. It doesn't. In fact, it's entirely counterproductive.

Take time to be with the kids and play with the dog. Be kind to your body and mind. The rewards you receive in return will offer you a smooth ride to that dream destination!

Marla Tabaka is a small-business advisor who helps entrepreneurs around the globe grow their businesses well into the millions. She speaks widely on combining strategic and creative thinking for optimum success and happiness. @MarlaTabaka

Why You Need to Stop Thinking Like a Small Business

There's a reason some businesses grow beyond 'small.' And it's all about mindset.

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It's easy to hunker down and go into reactive mode, constantly responding to one phone call or crisis or emergency after another.  This is especially true in the early days of a small business, when no one really has a job description and everyone pitches in to help however they can.  Unfortunately, for most of the companies I work with, the company keeps operating in that small-business state of mind long after the point that thinking like a midsize-company could make their growth and profitability skyrocket.

I'm not talking about 'small businesses' and 'midsize businesses' the way the Small Business Administration does.  Those definitions are made by government officials and used for tax planning purposes.  I'm talking about the distinct cultural shift that happens when a company stops thinking of itself as a scrappy little underdog and starts thinking of itself as an established mid-size business with a long-term strategy to match.

Failing to take the time to challenge small-business attitudes is a sure-fire way to miss out on the growth your company could easily be ready for.  Here are three major attitude shifts that happen when a small company becomes a midsize company.  Not every company is ready to take the leap, but it's worthwhile to see if it's time for you to take one of these steps.

Invest in Quality Support Staff

Is your neighbor's kid still troubleshooting your IT when he gets home from school?  Sure, he's talented and easy on your pocketbook, but at a certain point, not having the quality support you'd get from a professional costs more money than it saves. 

I did this twice.  At one company I ran, a B2B software services company, we didn't have a receptionist for three years. When we finally hired someone, it transformed the whole office.  None of us had realized how much of our time was taken up handling visitors and phones and office management and supplies. We all juggled travel plans, office management, and company events. Furthermore, having a dedicated, friendly professional to answer the phone and greet visitors created a polished and professional first impression that garnered better-quality customers.

I made the same mistake several years later, at a company that sold CD-ROM games in supermarkets.  (This was right before the advent of affordable DVDs, so the company didn't do too well.)  With my background in finance, I figured we didn't need and couldn't afford a CFO. Wrong! I spent more and more time consumed by the company books. When we finally hired a CFO, it more than doubled the time I had available to spend CEO-ing.

In both these cases, we should have made the choice to invest in quality employees years earlier than we actually did, missing out on tons of productivity and growth. A small company generally can't afford full-time professionals in key support positions. Midsize companies know they can't afford not to.

Turn Customers Away

When you start running a company, it feels like you have to take every order a customer is willing to give you, no matter how small - and sometimes, you do. But when you start getting $10,000 orders, you should be turning away the $1,000 ones. Do the same thing with the $10,000 orders when you start to get $100,000 contracts. 

Making a small sale generally takes as much effort as making a big sale - except that the small one pays a lot less. My wife, an interior designer, recently realized to her astonishment that she spends almost exactly the same amount of time and energy on every project, whether it's a small kitchen renovation or a full-scale floor-to-ceiling remodeling job.  Midsize business owners have shifted from being thrilled to get any customer to knowing that they're big enough to be choosy, and they reap the financial rewards of doing so.

Expand the Management Team

I've seen plenty of partnerships between one person with a great idea and the engineering know-how to make it happen ('the technical guy') and another person who knows how to get customers ('the sales guy').  That pairing can successfully grow a business to a certain point. It starts to founder if the technical guy and the sales guy don't bring in a 'strategy guy' who can develop and implement a successful long-term business plan.

At this point, it may even be time to re-structure the company's ownership, giving the new managers a personal stake in the company's success.  You might also join forces with a strategic partner, or sell part of the company to financial investors in exchange for a shot of growth capital.

If you want to successfully transition to being a mid-size business, it is essential that you stop to assess whether your ownership and management have the right attitude towards your company's growth.  If it's time to take it to the next level, you'd better start making business decisions like midsize companies do.

David Lonsdale became president and co-owner of private investment firm Allegiance Capital in 2005 and, since that time, has helped the company achieve a growth rate of more than 50% per year.

3 Surprising Secrets to Thriving Now

Stop blaming the economy for your troubles, says 'Turnaround King' Grant Cardone. Here's what you should do instead.

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"Turnaround King" Grant Cardone

"It's the economy, stupid." This motto famously hung on the wall at campaign headquarters when Bill Clinton ran for president in 1992. While that dictum may seem even truer today, worrying about the  economy--or blaming it for poor performance--is a dead end for today's business owners. That's the word from Grant Cardone (@GrantCardone on Twitter), star of the reality show Turnaround King, and author of Sell or Be Sold.

Small businesses can thrive in today's challenging economy, but not if they adopt the knee-jerk responses of cutting costs, lowering prices, and hanging on until times get better. Instead, he says, a completely new approach is needed:

1. Accept that this is the new normal.

Don't batten down the hatches and wait for the predicted turnaround to arrive. "I think this is the new norm," Cardone says. "This is not a bad economy, it's the economy, and what you make of it is what you're going to get out of it. We're not going back to the days of free money. Adjust to that way of thinking and you'll be better prepared."

Rather than lamenting the bad economy, Cardone recommends an all-hands meeting to discuss what you and your employees can do to create your own economy. "At my company it's not just an executive meeting, it's down to the receptionist," he says.

2. Focus on revenue, not cost.

In an economy like this one, "Revenue is God," Cardone says. "You have to have a top line. It's one of the problems with the U.S. government--not enough top line."

Most companies during economic contraction focus on cutting costs he says. "They spend all their time and energy on expenses." For a company to thrive, he advises, 95% of its time and attention should be on increasing revenue.

3. Raise (yes, raise!) prices.

Though this may sound like financial suicide during economic hard times, Cardone insists that raising prices--and not offering discounts--is the best way to survive. "Everyone thinks people are more price sensitive during difficult times," he says. "It's not true. People focus on value, not price. They still spend money, but that money gravitates toward the best value not the lowest price. Price and value are not related--they're not even cousins." Besides he says, remember the second point: You need revenue. During an economic downturn, your volume of sales is likely to decline--so don't make matters worse by lowering prices at the same time.

"There's only one lowest-cost provider in any market, and it's a precarious place to be," he says. On the other hand, raising prices forces a company to do a better job of providing value--and explaining to customers what that value is. "Most companies don't take the time to sell the value-add proposition in their products," he says. "A price increase really forces employees and management to answer the question, 'What is our value in the marketplace?'"

Lest you're still skeptical, Cardone says this strategy has worked with many companies he advises. "I work with the most profitable Honda dealership in the world," he says. Car sales are notoriously price sensitive but this store competes by offering better service and giving buyers confidence--with very low turnover, they can count on finding the same sales reps and service people year after year. Not only is it the most profitable Honda dealership but the volume is consistently high as well, he says.

"The big challenge with any company is certainty," he adds. "Everyone in the company has to have complete certainty about the company's value, its pricing, and why it is what it is. Starting from a higher price forces the rest of your hand. It means you have to recognize that we win this game by scoring touchdowns--not by playing defense."

Minda Zetlin is a business technology writer and speaker, co-author of The Geek Gap, and president of the American Society of Journalists and Authors. @MindaZetlin

Do More Faster: 10 Best Apps & Tools

Five-time entrepreneur Frank Addante lists the digital gems that help him be organized and save time.

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1.  Organize your email: Sanebox

Sanebox uses algorithms to organize your email into what's important and what's not. I was skeptical and had trouble giving up control of my inbox, but now I'm hooked. 

Tips: Trust it. Check @SaneLater twice a day, @SaneBulk whenever you feel like reading newsletters or promotions, and @SaneBlackHole for all the junk you never want to see again.

2.  Keep track of all your notes: Evernote 

Evernote stores your notes in the cloud, so you can access them from any computer or mobile device.

Tips: Use Evernote for both business and personal reasons. I take all of my business meeting notes directly in Evernote and scan or fax documents to Evernote that I want to keep. On the personal side, I take photos of wine that I like and store them in a notebook called Favorite Wines and keep copies of all critical identification (like my driver's license, passport, and insurance papers) in a notebook called Wallet.

Download App: iPhone | Android

3.  Store your documents in the cloud: Dropbox

Securely file away your digital documents in the cloud, so you can find and work on them from any computer or mobile device later.

Tips: I created two Dropbox folders--~Working Drafts and ~To File--and put them on my Mac in my Finder Favorites and on my Dock. I set the default sort order to be by Date Modified. This way, my most recent documents show up at the top of the list, and I can quickly drag or find documents there. I use ~Working Drafts as if it's my desktop and never actually store anything on my computer desktop. When I'm finished with a document, I drag it to ~To File, and every once in a while, I go into the folder to organize folders that make more sense long term. Note: I include the tilde (~) in the filenames so that, when sorted alphabetically, these folders always show up at the top.

Download App: iPhone | Android

4.  Prioritize your to-do list: Action Method

It's an online app that helps you organize to-do lists and track and delegate tasks.

Tips: Use Action Method's three color codes to set your priorities. Use orange for tasks that must be done on the scheduled day, blue for tasks that should be done that day but can push a day if necessary, and grey for tasks that you'd like to get done that day but will push if there are other deadlines. I follow the same color code in my calendar. The website is great, but definitely download--and set to open at login--the desktop, iPad, and mobile apps. Start every "to-do" item with an "action" word. The only negative about the Web application is that it can't be used offline. I use either the iPad or iPhone app while on a plane and sometimes will print a PDF of my to-dos before I take off and leave it on my desktop.

Download App: iPhone | Android

5.  Assemble your travel plans: TripIt

TripIt files all your itineraries in one place. You can even have it automatically send your itineraries to your significant other, kids, or always-worried mom. The Pro version alerts you of flight delays and gate changes.

Tips: Download the mobile app and put it on your home screen. Create a contact for plans@tripit.com and forward all itineraries to that contact.

Download App: iPhone | Android

6.  Automatically transcribe your voice-mail messages: YouMail

This voice-mail service transcribes your voice-mail messages and sends them to you by email or text (or both). The mobile app makes it easy to view, listen, read, and forward your voice mails.

Download App: iPhone | Android

7.  Consolidate your social network accounts: HootSuite 

This website allows you to use Twitter, Facebook, LinkedIn, Yammer, and others all from one place.

Tips: I tend to have pockets of time when I can read and post on social media. Try HootSuite's new "auto schedule" feature, so you can spread out your posts and don't flood your networks with many in a row.

Download App: iPhone | Android

8.  Communicate in real time with your whole team: Yammer

Yammer is like a private Twitter stream just for your company.

Tips: Get everyone in your company to sign up, and then use it as your main means of communicating information. This way, everyone will adapt to Yammer, because no one wants to miss out. Allow employees to post things that are "business" material and "fun" material. The fun material makes it more entertaining, and, in turn, the business material is more likely to be read.

Download App: iPhone | Android

9.  Stay fit: miCoach

Exercise keeps your mind sharp. The miCoach iPhone app acts like your personal trainer. I lost 20 pounds using it at home and while on the road.

Tips: Set up your workouts in advance. I selected Get Lean for running and Get Fit for gym workouts. Buy the heart-rate monitor and stride sensor; it's worth it. What gets measured gets done.

Download App: iPhone | Android

10.  Sleep better: iSleep

It's important to get a good night's rest. If you're like me, your mind is constantly racing, and the day's work never ends. The iSleep meditation app helps you fall asleep and stay asleep. It's particularly helpful when you have jet lag or can't fall asleep. I use the Deep Sleep playlist at the end of a long, stressful day.

Download App: iPhone | Android

Frank Addante is founder and CEO of the Rubicon Project, the world's leading real-time trading platform for online ads. A five-time entrepreneur, he sold two companies and took a third public. He is author of FounderBlog.com. @FrankAddante

Are Small-Business Owners Jealous of Tech Start-ups?

Cities are scrambling to create technology hubs to lure talent. But when government programs put financial resources into job creation, certain small-business owners feel ignored.

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NYC Startup Job Fair More than 80 start-up companies were represented, with some 600 job openings for the more than 1,000 applicants who attended the event.

There's no doubt about it: Cities and states across the country have the start-up bug.

You don't have to search too hard to find the enthusiasm, either. In February 2012, the New Jersey Economic Development Authority launched its first-ever state-sponsored tech accelerator, TechLaunch. The public-private partnership allocates about $150,000 from state funds to be invested in start-ups, and each company (there will be about a dozen) will receive about $18,000 in start-up capital. 

In Pennsylvania, the mayor of Philadelphia recently proposed to invest in a new Startup PHL Seed Fund that would spend about $3 million--which would be matched, dollar for dollar, by outside investors--to invest in local start-up entrepreneurs.

And, of course, there's Startup America, the sprawling initiative launched by the Obama administration that's creating miniature start-up ecosystems all around the country by tethering investors to entrepreneurs to economic development boards within cities and towns across the United States.

This should be a good thing, right?

For tech entrepreneurs, absolutely. But for traditional small-business owners? Well, it's a bit unclear.

Many small-business owners, it seems, are beginning to chafe at the idea that precious economic resources--both at the local and federal level--would be spent on fledgling start-ups and not committed to established businesses.

That sentiment was captured recently when Startup Weekend descended upon Denver.

Cori Streetman, the principal of Barefoot PR, a Denver-based public relations firm, recently told the Denver Post that "incubator programs, investor competitions, or the chance to pitch my business idea for a quick turnaround are not the resources that my business or others like mine are looking for."

And Brian Smith, the owner of Space Creators, a small real estate business, told the Post, "Having a focus on the businesses that exist here now and nurturing them will ultimately lead to greater economic impact than any start-up work that we do here in Denver."

That's a fairly bold claim and one that economists have tussled with for years. What sorts of companies create jobs faster? It's a notoriously complex question, mainly because the definitions of small business are varied. So although it's true that anywhere from 75% to 90% of start-ups fail in their first five years, it's difficult to predict which economic policies will--at least in terms of job creation as a barometer of growth--have the most bang for the buck.

So although some business owners grow rankled at the idea of resources being used to fund highly risky start-ups (at the expense of incumbent businesses), the reality is that a hedged approach to investment is perhaps the greatest method of helping both entrepreneurs and more traditional business owners.

Aaron Chatterji, an associate professor at Duke University's Fuqua School of Business and a former senior economist at the White House Council of Economic Advisers, recently said as much in The Wall Street Journal.

"Traditional small businesses are important sources of jobs in every community," he says. "But start-ups with big potential need different kinds of assistance to thrive--and we need them to thrive, especially in today's economy. The one-size-fits-all approach just doesn't make sense any more."

Eric Markowitz reports on start-ups, entrepreneurs, and issues that affect small businesses. Previously, he worked at Vanity Fair. He lives in New York City. @EricMarkowitz

Entertain Your Audience: 3 Essentials of Compelling Videos

Kevin Daum, author of Video Marketing for Dummies, says a good story is just one aspect of a memorable video.

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My Wildly Outlandish Holiday Strategy

Wild Creations's founder shares his company's plan to maximize the holiday season.

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As a big fan of the holidays, I get childishly excited when festive decorations start rolling out in stores. As an entrepreneur, I get anxious.

My company, Wild Creations, operates in the toy and game industry, and like most retail product companies, we derive a large part of our yearly revenue during the holiday season. Although we have steady sales throughout the year, the difference between a decent year and a fantastic year depends greatly on our ability to ride the retail wave at Christmas.

Because of this, we have, on occasion and against my better judgment, engaged in wildly outlandish strategies to maximize our holiday business.

A few years back, we started producing the Frog-O-Sphere, a product modeled after our successful EcoAquarium ecosystem habitat with aquatic frogs, for Brookstone. Although we were still relatively small and had limited capacity, we reached an agreement early in the year and excitedly set out to meet the challenge.

As the end of the year approached, we did our own holiday sales projections for Brookstone. What we knew from past years was that our retail partners sold an exceptionally disproportionate number of ecosystem habitats the week leading up to Christmas. The reason: It's a fantastic gift, but because it is sold with aquatic frogs, nobody wanted to keep it for three or four weeks prior to gifting it.

What became clear to us was that Brookstone was grossly UNDERestimating its store demand for the upcoming holiday. Sure, our projections were ambitious and reeked of entrepreneurial enthusiasm, but we had data to back it up. Our attempts at persuading Brookstone to stock more were unsuccessful, though its objection was not necessarily our lofty projections but the limited amount of space in the stores.

So, to ensure we didn't miss out on any holiday sales, we set out on one of our many wildly outlandish strategies.

We rented a couple of temperature-controlled storage units to comfortably stock additional Frog-O-Spheres, with frogs, in and around the Northeast, where the highest concentration of Brookstone stores was located. We hired and trained delivery drivers to take care of the frogs and be on call for two months, especially for the week prior to Christmas, in order to deliver product directly to stores. Our plan (more of a prayer) was for Brookstone to run out of stock, be unable to stock stores from its distribution center in time, and call us in a panic to fill its empty shelves. Then we waited.

Brookstone did call, and we delivered.

Then I exhaled for the first time in two months.

That season was a big success for us, but it came at a huge cost: storage units, employee per diems, lodging, fuel, etc. Not to mention the stress. Sure, we should have used some minimum ROI calculation to determine if the project was worthy of pursuing, but because we were a fledgling company, without the comfort of a war chest of cash on hand to support us, we did what we needed to do. We had a good year that year, but more important, we established our reputation as a company that was willing to go to great extremes (understatement) to ensure our partners had what they needed. That long-term intangible payoff can't be accurately calculated in a cash-flow projection.

What were our takeaways from this experience? Good question. As with most wildly outlandish strategies, this one didn't have a clear set of deliverables. Looking back, I'd say this is what I learned:

1. Take Chances

I had doubts about the plan, given the costs and risks associated with it. My business partner was very persuasive, however, and he hammered home the conviction, "no risk, no reward." In the end, he was right.

2. Put the Customer First

At the forefront of our plan was appeasing our biggest client at the time. It was the first national retail agreement we had signed, and we knew we had a rare opportunity to set a precedent for ourselves. As they say...there are no second first impressions!

3. Think Long Term

Like any loss-leading strategy, ours had a goal to establish a reputation for the future. Fortunately, we did have a small margin built into the product, and the volume made the whole endeavor prosperous. This was just a lucky byproduct of our long-term goal.

4. Mediocrity Sucks

In the end, it came down to doing what we needed to do to build our business. We set out in business not to simply make a living but to build a business we could be proud of. This doesn't happen if you sit around and wait for it to come to you.

5. Pepto-Bismol Rocks

I reiterate...it was not a stress-free holiday season.

Yeah, this is a pretty standard set of takeaways, I understand. Sometimes, however, I find the most rewarding blogs and newsletters to be those that validate something I'm doing. Fellow entrepreneurs who assure me that I am not alone in my insanity. There are numerous articles that will help you estimate sales, manage inventory, or hire the proper help for the holiday. What I hope to do is reach a few entrepreneurs this holiday season who might be considering a wildly outlandish idea but have doubts. To them, I say, simply: Go for it!

Peter Gasca is the co-founder of WildCreations.com and Jumpoff.co, companies that focus on kid-related products and support kid entrepreneurs. @wildcreations

Battle for Resources: Small Business vs. Tech Start-ups

Cities are scrambling to create technology hubs to lure talent. But when government programs put financial resources into job creation, certain small-business owners feel ignored.

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NYC Startup Job Fair More than 80 start-up companies were represented, with some 600 job openings for the more than 1,000 applicants who attended the event.

There's no doubt about it: Cities and states across the country have the start-up bug.

You don't have to search too hard to find the enthusiasm, either. In February 2012, the New Jersey Economic Development Authority launched its first-ever state-sponsored tech accelerator, TechLaunch. The public-private partnership allocates about $150,000 from state funds to be invested in start-ups, and each company (there will be about a dozen) will receive about $18,000 in start-up capital. 

In Pennsylvania, the mayor of Philadelphia recently proposed to invest in a new Startup PHL Seed Fund that would spend about $3 million--which would be matched, dollar for dollar, by outside investors--to invest in local start-up entrepreneurs.

And, of course, there's Startup America, the sprawling initiative launched by the Obama administration that's creating miniature start-up ecosystems all around the country by tethering investors to entrepreneurs to economic development boards within cities and towns across the United States.

This should be a good thing, right?

For tech entrepreneurs, absolutely. But for traditional small-business owners? Well, it's a bit unclear.

Many small-business owners, it seems, are beginning to chafe at the idea that precious economic resources--both at the local and federal level--would be spent on fledgling start-ups and not committed to established businesses.

That sentiment was captured recently when Startup Weekend descended upon Denver.

Cori Streetman, the principal of Barefoot PR, a Denver-based public relations firm, recently told the Denver Post that "incubator programs, investor competitions, or the chance to pitch my business idea for a quick turnaround are not the resources that my business or others like mine are looking for."

And Brian Smith, the owner of Space Creators, a small real estate business, told the Post, "Having a focus on the businesses that exist here now and nurturing them will ultimately lead to greater economic impact than any start-up work that we do here in Denver."

That's a fairly bold claim and one that economists have tussled with for years. What sorts of companies create jobs faster? It's a notoriously complex question, mainly because the definitions of small business are varied. So although it's true that anywhere from 75% to 90% of start-ups fail in their first five years, it's difficult to predict which economic policies will--at least in terms of job creation as a barometer of growth--have the most bang for the buck.

So although some business owners grow rankled at the idea of resources being used to fund highly risky start-ups (at the expense of incumbent businesses), the reality is that a hedged approach to investment is perhaps the greatest method of helping both entrepreneurs and more traditional business owners.

Aaron Chatterji, an associate professor at Duke University's Fuqua School of Business and a former senior economist at the White House Council of Economic Advisers, recently said as much in The Wall Street Journal.

"Traditional small businesses are important sources of jobs in every community," he says. "But start-ups with big potential need different kinds of assistance to thrive--and we need them to thrive, especially in today's economy. The one-size-fits-all approach just doesn't make sense any more."

Eric Markowitz reports on start-ups, entrepreneurs, and issues that affect small businesses. Previously, he worked at Vanity Fair. He lives in New York City. @EricMarkowitz

Simple Trick to Be More Memorable

Want to make sure that investor you met at a conference or networking event remembers you? Try this.

Suresh Eswaran/Flickr

Being memorable isn't hard. But being memorable without seeming like a crackpot or a shameless self-promoter is trickier.

Sure, showing up with a ridiculous hat or boasting about your many, many amazing accomplishments will probably ensure that most folks you meet, no matter how busy they are, will remember you. The obvious downside, though, is they will remember you for being insane, ill dressed, or simply annoying.

But perhaps one can channel the same principle that makes the oddly attired and bizarrely brash stand out in our minds. That's according to a tidbit of wisdom in the business book Dinosaur Brains: Dealing With All Those Impossible People at Work unearthed by Farnam Street, a consistently interesting blog dedicated to hunting down just these sorts of fascinating ideas in out-of-the-way places.

People are more memorable when their names and faces are linked to stories or experiences. The more associations your new contact has for you, the more likely you will get permanently lodged in his or her long-term memory. This, according to the U.K.'s Guardian newspaper, is the same technique author Joshua Foer used to learn an obscure African language in all of 22 hours--he associated vocabulary with elaborate images or stories, making it easier to recall.

How can you put this insight to use at your next business function? Dinosaur Brains spells it out:

Assume that when people think of you, they will store your name, a mental picture of you, a few words they associate with you and a few stories about your behavior. From this they will make all the decisions they have to make about you.

Name association is a good start for promoting yourself because you can do it in a self-deprecating way. Decide what you want people to remember when they think of you. Then say things about yourself that create those images.

You can say,

"I'm just an old war-horse. I've been around here forever."

or

 "Back in 1967, when I started managing in this division '"

In short, give people pithy and relevant context to help them remember you, and their memory banks are more likely to light up for the right reasons when you follow up later on. (According to 42Floors founder Jason Freedman, it also doesn't hurt to simply remind busy people of the context in which you met them.)

What other nifty tricks do you use to be memorable? 

 

Jessica Stillman is a freelance writer based in London with interests in unconventional career paths, generational differences, and the future of work. She has blogged for CBS MoneyWatch, GigaOM, and Brazen Careerist. @EntryLevelRebel

Is Small Business Saturday Working?

The day celebrating small business has plenty of support (and has amassed criticism). So, three years after its inception, what's it really done to help out the little guy?

Linh H. Nguyen/Flickr

Nearly three years ago, Michael Bloomberg, the mayor of New York City, and Kenneth Chenault, the CEO of American Express, stood together at a press conference in Manhattan to inaugurate the first Small Business Saturday, a nationwide initiative that urges customers to open their wallets during the holiday season to the small and local businesses in their communities.

"This year, if you have the opportunity to shop on the Saturday after Thanksgiving, make it a point to visit local small businesses," Bloomberg pleaded back in 2010. "It really can make an enormous difference for merchants in our communities."

Naturally, the day is as much a celebration of small business as it is a marketing ploy for American Express OPEN Forum, the group that organizes the branding and promotion around the event. Qualifying merchants, for instance, can receive free, geotargeted Facebook ads for the day and download marketing materials to display in store windows. (The American Express logo features prominently in the collateral.)

Consumers, on the other hand, can receive a $25 statement credit for patronizing a small business on Saturday.  The goal, according to American Express, is perhaps a noble one: amidst the stampedes of Black Friday and the frantic website reloading of Cyber Monday, Small Business Saturday is "dedicated to supporting small businesses nationwide."

So, the obvious question: Has it worked?

American Express has gone to great lengths to prove that yes, indeed, it is working. Last year, it even hired its own independent market-research firm, Echo Research, to comb through reams of social data to figure out just how many people shopped at small businesses because of the promotion.

In 2011, about 2.7 million users liked the campaign on Facebook, while 230 organizations and 75 corporations publicly supported the day, the firm found. About 15,000 businesses signed up for free Facebook advertising. In total, the researchers estimate that 103 million Americans shopped at "independently owned businesses" during last year's Small Business Saturday--including President Obama, who took his daughters to an independent bookstore a few blocks from the White House.

It's tough to estimate just how much additional revenue the day injected into the economy (American Express does not release those statistics) but anecdotally, entrepreneurs and small-business owners seem willing to try out the promotion. After all, there's little downside of free visibility, even if the business is piggybacking on another brand's promotion.

"We have participated in Small Business Saturday in the past, and we find it helps our business build awareness in the local community," says Deborah Sweeney, the CEO of MyCorporation.com, a 40-person company in Calabasas, California, that assists small businesses through the incorporation process. "We've found that many small businesses chose that day to get information for incorporating or forming an LLC."

Another entrepreneur, Shahzad Paul, the CEO of BeBodySmart.com, says he made 900 new customers because of the promotion last year.

"That was--and has been--our best sales day so far," he says.

Despite the general enthusiasm, there's been some backlash to the event from independent store owners who say American Express charges high credit fees (they're about 2.5%) and will cut lines of credit when they need them most.

Cindy Baxter, a retail consultant and a prominent voice among independent business owners, was initially tapped to help launch Small Business Saturday but then defected to her own local retail initiative, the 3/50 Project, which "promotes stronger local economies through support of independent retailers."

Last year, she told The Wall Street Journal that for American Express, the promoting of Small Business Saturday is "a monetary boon if they can get more people to use the card'But there's been no reciprocal kindness back to the merchants."

Others are more hopeful. The National Federation of Independent Business released a survey this week showing that 67% of consumers plan to "shop small" on Small Business Saturday--an increase from 44% in 2011.

"Small Business Saturday gives us a chance to show our appreciation and to help America's job creators in a very real way, by patronizing small shops, restaurants, and service providers," NFIB CEO Dan Danner said in a statement. "Anything that helps with sales is certainly appreciated by small-business owners, many of whom have struggled to stay afloat in a rough and uncertain economy."

 

 

Eric Markowitz reports on start-ups, entrepreneurs, and issues that affect small businesses. Previously, he worked at Vanity Fair. He lives in New York City. @EricMarkowitz

10 Unexpected Reasons to Give Thanks

Forget the turkey. This Thanksgiving, be thankful for a few things you might not consider blessings--but should.

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Although for many people, Thanksgiving means family and friends and turkey and stuffing and stuffing ourselves, the day is also a reminder to give thanks.

This Thanksgiving, take a second to be thankful for a few things you might not have considered blessings:

1. Failure.

For most of us, failure isn't the end of the world. Failure is just the end of an idea or a possibility or a dream. When we fail, we can move on to something else, with luck a little wiser and a lot more likely to succeed.

For some, though, failure means going without--or worse, possibly forcing their children to go without.

Failure sucks, but never being able to take a chance on your skills, your experience, and your vision is much, much worse.

Be thankful you have the opportunity to fail on terms you at least partly set. Many people do not.

2. Criticism.

People criticize only when they care. While people still care about you or your business, you have the opportunity to do something better, to do something differently, to change their minds--or to just meet in the middle.

Apathy is much, much worse.

3. Sadness.

When you're sad, that means you care, and caring is the mother of changing things for the better.

Apathy is much, much worse.

4. Respect.

Think of people you admire. Think of people who have earned your trust and esteem.

Be thankful those people are a part of your life. In fact, don't just be privately thankful. Tell them how you feel.

That will make them be grateful for people like you.

5. Options.

You might have so many options and potential choices, both business and personal, that you feel stressed and even overwhelmed.

Flip it around: Imagine how it would feel to have few, if any, options. Imagine how it would feel to have few, if any, viable choices.

Be thankful you have options--the more, the better.

6. Struggle.

Not unintentional struggle. Intentional struggle: like choosing to work incredibly hard or to push through a mental or physical barrier or to make sacrifices for the good of the people who rely on you.

When you struggle and fight and endure, you not only stretch the limits of what you believe you are capable of, but you also sometimes enter a state of grace that you find only when you strip away what is truly nonessential (which turns out to be most of what you worry about).

Struggling helps you learn who you really are--and who you really want to be.

7. Delay.

Remaining patient is rarely fun, but having to wait can be a good thing.

For example, research shows that where vacations are concerned, the biggest boost in happiness comes from planning to get away. And this vacation anticipation boosts happiness for an average of eight weeks.

After the vacation, though, happiness levels quickly drop to baseline levels--usually within days. Soon the people who went on a vacation were no happier than the people who had not.

Be thankful you need to wait--especially for something you really want. The anticipation alone is worth it.

Besides, waiting for what you want--not what you need, but what you want--is a luxury only those who are already blessed can afford.

8. Regret.

Think about something you wish you had done better. Or handled differently. Or think about something you wish you had done but for whatever reason, you didn't.

Painful? Sure. And motivating.

Use that motivation today. Call a friend you've lost touch with. Mend fences with a family member. Be the bigger person and say you're sorry. Do something you wish you had done.

You'll be thankful you did.

9. Family.

Take a look around the table. I know: Uncle Johnny is overbearing. Aunt Shirley can't stay out of anyone's business. Your brother resents you, and your mom can't stop babying you.

They can be terrible--and you'll miss them terribly when they're gone. Smile, see the good in each of them, and be glad you have a family.

Many people would love to have a terrible family like yours.

10. This moment.

Because you have the time and resources to do something like reading this post, that means you have time: to improve yourself, to consider new ideas, to try to be a better person, to build better relationships with family and friends.

Time is our most important asset and what we should all be most thankful for. Time makes everything else possible.

Don't waste it.

Jeff Haden learned much of what he knows about business and technology as he worked his way up in the manufacturing industry. Everything else he picks up from ghostwriting books for some of the smartest leaders he knows in business. @jeff_haden