New study shows that failing at business actually helps your chances of future success. Failure: The Secret to Success As business owners, we're all very aware that the odds are against long-term success. But having a business fail doesn’t condemn you to a life of unrealized dreams. New research shows that previous failures in entrepreneurship improve the odds of success for future ventures. Yonkwook Paik, a fellow at the Kauffman Foundation, recently completed a study for his PhD at … [Read more...]
Diagnosing Risky Business Assumptions
Finance expert Mike Periu shares advice on how to Diagnosing Risky Business and to help minimize the chance of failure when starting a small business. According to Diana Kander, Entrepreneur-in-Residence at the Kauffman Foundation, most start-up companies fail because they run out of time or money. This failure doesn't just happen out of the blue—it's usually predicated upon a set of assumptions by the founder or founders that turn out to be mistaken. Growing a business requires that owners … [Read more...]
Business Model Innovation Is a Key Driver of Financial Success
Finance expert Mike Periu on how creative thinking in business models can make your company's success soar. Amancio Ortega is one of the most successful entrepreneurs in the world, growing his clothing manufacturing and fashion company Inditex (owner of Zara boutiques) from zero to over $20 billion in annual revenues. With a personal fortune now in excess of $37 billion, he is the second richest man in Europe and one of the wealthiest in the world. The key driver of Ortega's success, according … [Read more...]
The Best Business Books of 2012
Finance expert Mike Periu on the best business books of 2012 chosen by leaders in their field of expertise. Strategy+Business, the blog for consulting firm Booz & Company, recently announced the winners of its annual best business books competition. Unlike other lists, these books aren't selected based on sales or by popular vote; instead experts in the chosen category choose the winners. The categories themselves vary from year to year depending on what's timely or particularly … [Read more...]
Serial Entrepreneur Offers Advice for Attracting Investors
Finance expert Mike Periu on Key ways for Attracting Investors on next business venture Attracting Investors: Serial entrepreneur Geoffrey Clapp advises business owners to "go do something". Many aspiring moguls spend so much time planning, that they never get around to actually doing something. When Clapp considers potential investments or advisory roles he looks for owners, who have actually done something—even if that "something" turned out to be a failure because the learning that takes … [Read more...]
How Entrepreneurs Should Fund Retirement
If your nest egg is your business, ask yourself these questions to make sure you can sell it for a good price when it's time to retire. In the first part of this series, I discussed how small-business owners can determine how much money they need in order to have a comfortable and dignified retirement. Once you know “how much” you need, the question then becomes “How do I fund this amount?” The money needs to come from somewhere. Knowing that you’ll need $8 million in 15 years is important but … [Read more...]
Should You Fund Your Startup With Convertible Debt?
Should your business offer its investors debt or equity in exchange for capital? The answer may be both. There are many ways for a nascent small business to acquire the money it needs to start operations and expand. By now, many owners realize that the traditional bank loan is the most difficult and least advantageous source of capital for many small businesses. They instead turn to venture capital firms or angel investors. When you finally find the right funding partner and shake hands on the … [Read more...]
Can My Company Be the Next Instagram?
In the wake of the Facebook IPO, many institutional investors considering putting money into Facebook have expressed concerns about Zuckerberg’s management potential and strategic thinking. Among the concerns is the logic behind the $1 billion purchase of photo-sharing app Instagram. See as Instagram was not a household name before the sale, many small businesspeople are logically asking not only how Instagram did it, but also whether their companies can do it, too. Behind the Instagram … [Read more...]
The Myth: Taking Time Off During Holiday Season
A new study suggests that small business owners will spend this holiday season working instead of resting. Every year, studies show that Americans are overworked compared to our European counterparts. U.S. workers average just 13 days’ vacation a year, according to a recent study by Expedia. Some European countries enjoy three times as many days off. During the holiday season, this difference between U.S. and European workers widens. Most small-business owners do not intend to spend the … [Read more...]
Get Your Financials Investor-Ready
As you ring in the new year, make sure your financial models are investor-ready with these helpful tips. As 2011 ends, I’d like to make an appeal that will help aspiring entrepreneurs make money. Get your financial model in investor-ready shape before sending it to potential investors. I recently met with a newly minted entrepreneur who left a successful corporate career to launch a company that he believes will disrupt a $100 billion industry. I went over the business pitch and, more … [Read more...]