Owning and running a company is no small task. It’s a difficult, stressful, never-ending process that actually gets more complex as you find success. It’s hard enough for people who specifically studied business in school. And for those who didn’t study business, the challenge is even more daunting. When so many former business students fail, it must frequently feel overwhelming for students of other disciplines.
YPO member Yi Li isn’t afraid of a challenge. A lifelong lover of science, she braved a new country and different culture when she left China to pursue her PhD in physics on a full scholarship at Louisiana State University. As she studied energy storage, battery technology and management, and charge control, she realized she had the makings of a great alternative energy company.
Li wasn’t hindered by her lack of business experience–in fact, she started her solar power company in her apartment while she was still a student. Today, Li is the president and CEO of Renogy Solar, which manufactures and sells a wide range of solar-powered products. Renogy was certified by the Women’s Business Enterprise National Council and earned a spot on the Inc. 5000 list of fastest-growing private companies. The company has also won several bronze- and gold-level awards from the Golden Bridge Awards, and was included on the Fastest-Growing Women-Owned Company list released by the Women Presidents’ Organization.
Li didn’t have a business background, but she didn’t let that stop her from founding her own company. “I didn’t have any background or experience or education about running a business, or even financial experience or knowledge. I’d never thought about those difficulties,” she recalls. When she began, it certainly wasn’t all smooth sailing. “I definitely went through a lot of difficulties and challenges, but every time I saw challenges, I thought about my passion. I thought about my purpose.
If that’s my goal, forget about how I feel how difficult it is. Just try to find a solution,” she asserts. Li is also not afraid to admit what she doesn’t know. “If I see I lack knowledge [in a particular area], I’ll get a book or take online classes. I’m really a self-learner, so I learned all that stuff by myself,” she explains. Don’t let your own self-doubt get in the way of pursuing something great.
2. Don’t feel compelled to follow all the rules
While she acknowledges the difficulties inherent in starting a company without a business background, Li also believes there may be some benefit in not being tied to one philosophy. “You need to think outside the box,” she argues. “Don’t follow too many old-school type, book, education principles. Even if it’s a lot of good experience, it may not apply to you.” She encourages entrepreneurs to find their own path. “You can learn, but try to develop something that is unique to you,” she says.
Li believes she has a good example in Jack Ma of Alibaba. “He didn’t have all the necessary professional skills when he started the business–he was a teacher,” Li explains. “When he started the business, not everybody believed his dream. But he ignored all of the voices. If he decided to do something, he was very, very determined.” Ma and Li aren’t afraid to follow their instincts.
3. Be frugal
Li is very blunt about this: “You need to run a business frugally,” she emphasizes. The challenge, of course, is that talent can be expensive. Thankfully, she’s found a way to compensate for that. “My employees truly believe in what we’re doing,” she beams. “We’re still a startup, and we’re not paying as high compared to a lot of Fortune 500 companies,” she admits, but her company is about more than dollars and cents.
“I look for people who truly want to develop themselves, because they’re not here just for the paycheck. We instill a passion and a dream into our employees’ minds. That’s how I recruit people.”
4. Believe in it
Do what you love! It’s exactly what led Li down the path from science to entrepreneurship. “I truly want to be a scientist. I really love physics. What I studied was superconductivity and semiconductor materials. And one of my projects was related to alternative energy studies. So there I saw my passion taking form,” she fondly recalls. Whatever your calling, follow what brings you joy. “I truly believe you have to be a passionate person and do what you truly want to do,” Li states.
It doesn’t mean it will be easy. She explains, “You cannot just do this for money. You have to do this for love. Otherwise, you cannot deal with all of the obstacles you’ll face.” For Li, her mission is clear: “I really think a sustainable future is something we should all work for and fight for,” she says. Wherever your passion lies, pursue happiness.
On Fridays, Kevin explores industry trends, professional development, best practices, and other leadership topics with CEOs from around the world.
Start Your Own Business by Writing Business Plan. How to write a successful business plan for successful startups. Step By Step – How to write a business plan an effectively for starting your own business. Watch 11 Elements of Sample Business Plan – https://www.youtube.com/watch?v=i1b0_… TOP 10 TIPS Before Starting Your OWN BUSINESS : https://youtu.be/wxyGeUkPYFM Join our Young Entrepreneurs Forum – http://www.youngentrepreneursforum.com/#youngentrepreneursforum Do you need a business plan for successful startups in India, USA, UK & Canada. Starting an own business needs working plan which compiles some important details about product & company. Problem Solving Skills To Start a Small Business – https://www.youtube.com/watch?v=I9Ho3…#startsmallbusiness 9 Steps For Writing a Business Plan – Required Steps to Write a Business Plan for your company or service. Step 1 – Define your vision 1:16 Step 2 – Set your goals and objectives for the business 1:50 Step 3 – Define your Unique Selling Proposition 2:29 Step 4 – Know your market 3:02 Step 5 – Know your customer 3:57 Step 6 – Research the demand for your business 4:47 Step 7 – Set your marketing goals 5:52 Step 8 – Define your marketing strategy 6:38 Step 9 – Take Action! 7:20 These all Steps are very important while you are writing a business plan for starting your own business. Life of Riley by Kevin MacLeod is licensed under a Creative Commons Attribution license (https://creativecommons.org/licenses/…) Source: http://incompetech.com/music/royalty-… Artist: http://incompetech.com/ You must have to focus on Idea, Product,Strategy,Team, Marketing and Profit while you are writing business plan for your successful stratups.
As one of the most essential aspects of a business proposal, the financial plan utilizes current financial data to project long-term profits and losses for your company. As a business owner, having a strong financial plan helps you identify potential issues and discrepancies while it’s still early enough to make changes. Having a good financial plan handy also improves your odds of securing funding from banks and other investors by showing you’ve done your due diligence.
Still, first-time entrepreneurs often struggle to create these all-important documents.
Below are five components every financial plan should have, along with suggestions for collecting the necessary data to plan your business’ future.
1. Income statements
Income statements reveal revenue, expenses and profits over a given period of time. Start by making a list of all the costs and expenses associated with running your business. This may include raw materials, suppliers, employee salaries and rent costs. Then record your revenue, which is the money you receive in exchange for providing goods and services. By subtracting your expenses from total revenue, you can determine whether your company can expect to make a profit or suffer a loss.
This information is crucial not only for planning purposes, but it can also help draw potential investors to your business.
While income statements for existing businesses convey data from the past one or two years, startups must instead forecast this information based on their research. When drafting your company’s first income statements, you may need to project profits and losses using information from similar businesses in the area. The goal is to determine if your company can support itself moving forward and make budgetary changes as needed.
Just as with your income statement projections, you’ll have to create a plan of how you expect your cash to flow based on rational observations, predictions and your own research. Again, while it seems frustrating, compiling a schedule of when cash comes in and out can give you (and investors) insight into how much cash you’ll actually have available to operate your business.
By keeping accurate cash flow statements as your business matures, you can identify problem areas before they grow too large to contain. For instance, if your projections suggest you need more immediate cash, you can try strategies to help bring it in, such as turning over inventory more quickly or reducing the length of your billing cycle. However you use it, a cash flow’s primary functions are to assess your company’s financial health and help you make business-development decisions moving forward.
Another thing to keep in mind: When calculating your cash flow projection, you won’t be able to use any revenue amounts from unpaid invoices. The reason? That revenue hasn’t been collected yet and thus isn’t available to go in or out. Yes, you may be able to declare the money from unpaid invoices in your revenue projections, but not as cash on hand.
3. Balance sheet
A balance sheet provides a snapshot of a company’s assets, liabilities and equity at a given time. As its name implies, a balance is struck between a company’s assets, which equal its liability added to the value of its equity.
First, take time to list all assets, including accounts receivable, savings, inventory and equipment. Next, you should detail all liabilities, such as accounts payable, loan payments and credit card balances. Lastly, you can add up the company’s equity, which may take the form of owner equity, investor shares and earnings from stocks. When you’re finished, check to make sure that the total value of assets equals that of your liabilities plus your equity.
As you may expect, your balance sheet can have a significant effect on your business’ ability to secure the funding it needs to get off the ground. Learn more about how to create a detailed balance sheet to track your startup’s liabilities and equity.
4. Break-even analysis
It’s no secret that startups rarely turn a profit at the onset. If and when your business does cross the threshold from red to black, it will have crossed the break-even point. The break-even point occurs when the expenses of running your business equal the revenue from your products and services. To increase your odds of reaching that crucial turning point, take the time to create a break-even analysis as part of your financial plan.
Along with your company’s fixed and variable costs, the document should include projected prices and account for the value of inflation. Not only does a break-even analysis show potential investors that your company has the potential to succeed, but it also enables you to make better decisions regarding resource allocation. If your break-even point is too high, you may want to consider ways to reduce your cost of business. This might include shopping for new suppliers, increasing prices or even temporarily working out of your home.
5. Financing schedule
Most of us can’t launch a new business entirely on our own. Because loans are an unfortunate fact of life in the startup world, every business plan should include a loan summary and financing schedule. Take note of the types of loans incurred, including interest rates and expected terms as well as securities information. After all, potential lenders want to know that you have a solid plan to pay off existing debts before investing more money in your business venture.
If you’re thinking of starting your own business, then you’ve probably heard the bleak statistics. According to one report, as many as eight in 10 startups fail in the first 18 months. To give your business a fighting chance, you need to have a strong financial plan in place before you launch.
In this video, Kelly discusses how to maximize profits in business in just three simple steps. By taking advantage of what resources you already have within your company, you can maximize profits and grow your business. Your company can figure out how to improve sales by analyzing what your business is doing so already…and what your business is not doing. By putting these steps into action, you can figure out how to attract customers and increase profits Ask yourself: • When was the last time you last raised profits within your business? Are you getting what you want? • Is your business selling the right kinds of stock including individual packages, group packages, etc. for your services? If not, these kinds of products would bring in money that your company is not seeing already. • Are you engaging with previous customers? If not, these customers are just as important to figure out how to attract customers to your business. Want a quick overview of topics? Check out the time stamps below: 00:49 – Charge what you’re worth to grow your business 1:42 – When was the last time you raised your rates? 2:08 – Consider having reoccurring revenue to maximize profits 2:40 – Fortune is in the follow up! Make it your business growth strategy Learn how to improve your outlook on money but also create more income within your business. Not only will you learn to improve your vision of money but rethink your ideas so you can create new ones. ======================================================== THANK YOU for taking the time to watch these videos!! If you like what you’re watching, comment below to start a conversation! =================================================== To learn more about our program that teaches you how to build and scale your business to create more freedom go to: http://www.KellyRoachCoaching.com/yes ======================================================== Visit the Kelly Roach Coaching online store for products and programs to help you grow your business! http://www.kellyroachcoaching.com/shop ======================================================== **Click Below to SUBSCRIBE for More Videos** https://www.youtube.com/channel/UCwyA… ======================================================== Kelly Roach Business Growth Strategist, Rapid Business Growth Coach, Author, Host of Unstoppable Success Radio http://www.KellyRoachCoaching.com ======================================================== Join the conversation: Facebook: http://www.facebook.com/kellyroachint… Twitter: http://www.twitter.com/kellyroachint YouTube: http://www.youtube.com/kellyroach ====================================================== To learn more about how to grow your business and how to increase sales, watch Kelly’s “How to improve your Money Mindset” video at https://youtu.be/1mo_Fvrgpw4
In 2017 Farzan Dehmoubed, a marketer, and his wife Jennifer, a schoolteacher, created the Lotus Trolley Bag, a set of washable bags with attached rods that can be hung inside a shopping cart. The bags, with features like secure pockets for egg cartons and wine bottles and an insulated pocket for frozen foods, quickly became the top-selling reusable bag on Amazon, and are now sold in stores like Wegman’s, Albertson’s, Kroger, and TJ Maxx. But getting to that point required overcoming a mishap that nearly sunk their startup. –As told to Kevin J. Ryan
We invested $45,000 into our first inventory. It sold out in 10 days. We were really excited. We called up our manufacturer and placed another order. We wired them $50,000–everything we made on the first batch and more.
Six weeks later a big container arrived. We had our friends and family help us unload it. We opened up the boxes and looked at the product, and it was nothing like the first set of bags. It looked the same from a distance, but when you actually looked at the stitching and the quality of the printing and the logo, it was not what we had ordered. My wife and I looked at each other and said, “This can’t be real.”
I remember thinking to myself, ‘We can fix this, maybe it’s just some loose thread.’ But it wasn’t salvageable. We placed a complaint with the manufacturer, even though we knew it wouldn’t go anywhere, since we were just a family business with very little leverage. We later learned it had outsourced the order to save pennies on the dollar.
We decided pretty quickly we couldn’t sell the bags. We didn’t feel comfortable putting our name on them. That meant we would have to take the $50,000 loss. I don’t think Jenn and I talked for the rest of the day. It took a day or two to absorb the shock.
Even though the manufacturer promised us they would do better the next time around, we weren’t going to be fooled twice. I flew to multiple manufacturers in Vietnam until we found a new one we were happy with. We hired a third-party quality check company. When the goods were ready to ship, they would go in and do an audit: open up each box and check them, and send us videos. We kicked ourselves for not doing that in the first place.
We placed a new $50,000 order, which required emptying our life savings and practically maxing out our credit cards. It was two months before the new inventory came. We were pretty upfront with our customers during that time. We told them very frankly: The bags didn’t come out the way we ordered them, the shipment is going to be delayed, and we really thank you for your patience.
I think letting your customers know you’re just like them, and that you’re just trying to provide a product that they’ll be happy with, goes a long way. People related to us. They were very understanding.
We still had a lot of orders canceled though, and we gave discounts to customers who had been patient. We were nervous when the new container came–if the product was bad, we would have lost everything. But it was exactly what we’d ordered. We sold out almost right away. Because of the discounts, we didn’t make much money at all on that order, but we had our reputation.
Not putting that product on the market was one of the best decisions we ever made. If we had, I can guarantee you we wouldn’t be where we are right now. It would have killed our reviews. It would have ruined our brand.
We now have a 4.6-star rating on Amazon with more than 700 five-star reviews. We’re on pace for $3 million in sales this year. We just launched our second product, a reusable produce bag, and those same early consumers are buying it.
As a business owner, you have to make your decisions for the long-term. For us to take that financial hit was scary, but we had bigger goals in mind. We got through it. And we made a lot of loyal fans in the process.
I’m the president of a company, a wife, a mother, and an active member of my community. I get stressed out just thinking about the commitment it takes to go to stores in my small town and shop. Truth be told, I don’t have time to do much purchasing that can’t happen on a flight or after I’ve put the kids to bed — even for groceries. If that’s the case for me, I know that it’s the same deal for your potential customers. That’s why, as business owners, it’s important to educate the community about shopping local.
I live in Sonoma County, where the Kincade fire recently devastated the region. Local businesses have been hit especially hard by the fires themselves and by PG&E power outages. The last time I was at the grocery store, it occurred to me that I shouldn’t be buying strawberries from seven states away or a different country. I need to put my money where my mouth is and shop local businesses. I love farmers’ markets, but struggle to make time to get there. I still have to buy groceries, so I’ve switched from my nearby Safeway to a store that sources food only from within Sonoma County called Oliver’s Market.
That’s just one way that I’ve found that I can give a boost to small businesses without going out of my way. In honor of Small Business Saturday, here are others ideas for how to help your area entrepreneurs this holiday season.
Challenge customers to eat local for Thanksgiving and other meals.
I already talked about how I’m doing this every day, but even confirmed local diners sometimes find it challenging for the big events.Your job is to convince your customers that it’s worth the effort.
Do you have a cracker company that would be perfect for a celebratory cheese plate? Consider partnering with a local dairy to get the word out. Whether you’re a turkey farm, are smoking up the best hams in town, or have a small business selling tamales to add variety to shoppers’ holiday tables, your community needs your flavors right now.
Dessert is easy. There are plenty of people looking for local bakeries ready to fill up a flaky crust with pecans or chocolate cream. Being mindful of where your food comes from isn’t just good for local business people, either. It’s better for the environment (bye-bye food miles) and is likely to be healthier, too.
Buy from small businesses on Amazon.
Most of us think of Amazon as the big, bad brother. I mean, it’s been accused of being a monopoly. You can’t get any further away from being a small business. But in reality, there’s more to it than that.
Amazon Sellers are small-business people. They are just using the biggest platform they can to get their products to the masses and I respect that. One user I know is Crystal Swain-Bates, whose excellent line of children’s books ensure black children are highlighted throughout stories. Goldest Karat Publishing made her an Amazon featured seller. For the holidays, I especially love Amazon Handmade, a community just for artisans to sell their handcrafted wares.
But I promise this isn’t just an ad for Amazon. I also love Etsy. You can search it by location so you can specifically choose gifts made by someone in your community. I’m always surprised by all the cool handiwork my neighbors are presenting.
Make time to go analog.
Yes, I know I said I’m too busy to shop downtown, but I can make an exception a few times a year. Heading to Main Street has many advantages. If your business is brick-and-mortar, congratulations. If not, it might be high time to get involved in a holiday market or two.
Connect with real, live people with whom you can have lasting relationships for years to come. As you get to know their likes and dislikes, you’ll help them learn to shop smarter — and with you.
Look at your own company.
OK, you’re not buying your business a Christmas present, but when it comes to shopping for yourself and your team’s daily needs, you can keep small and local in mind. For example, at my company, we use a local business for many of our printing needs. It’s harder than going to Office Depot, but well worth it. In our Houston division, we just moved offices, and we’ve made it a point to work with local designers to get everything on point.
Whether it’s candies or technology, we try to shop among the people who need us most. In my experience, that’s how you find the best gifts of all, just shop small.
Script: “Small businesses are the lifeblood of our communities. Absolutely crucial. Vital. They make it unique and they make you happy to live where you live. It brings a little flair to the towns that we have. On November 26th, you can make a huge impact by shopping small on Small Business Saturday. One purchase. One purchase is all it takes. Pledge to shop small on Small Business Saturday. It will help support your community. And that is a big deal. It’s pretty big. So, pick your favorite local business and join the movement. I pledge to shop small: at Big Top Candy Shop; at Juno Baby Store; Allen’s Boots; Sammy’s Camera. You don’t have to buy the whole store. Make the pledge to shop small. Pleeeease. On Small Business Saturday. [SHOP SMALL] [SMALL BUSINESS SATURDAY – NOV. 26] [American Express – founding partner]
Let us take a minute to salute the international companies, those that have gone multi-market or are on that path. They deserve our applause and respect. When I led market entry programs , I observed that these international firms tended to outperform the purely domestic firms, but for a reason you might not expect.
Companies that were operating in many markets tended to do better than those that had a presence only in their home market, but this had more to do with the international journey than the additional revenue.
The process of going international forced a company to adapt for each new market. As a result, the international firm became a learning organization which encompassed several different successful models, and the lessons from each new market could be applied in other markets. So the international company tended to develop a feedback mechanism and process improvements more readily than the purely domestic company.
Indeed, if you ask the leadership of that purely domestic firm what they want to do tomorrow, you are more likely to hear that they want to do tomorrow what they did yesterday. In other words, many business people (like all of us) have a bias for the familiar. We all like patterns of behavior and we like to stay in our comfort zone. I see this regularly when I discuss China opportunities. We will have a nice conversation with a lovely mid-size company, but unless it has an international culture it will have an overwhelming focus on building out a successful domestic model. The management philosophy at these firms tends to be:
— Reliant on the organic growth that has served them well over the years;
— Highly structured organization, task-driven, with people looking at monthly and quarterly results;
— Heavily product-focused.
These companies tend to dominate their space or be a segment leader. All of this means these companies have a strong incentive not to expand their current set of activities, and not to think about what changes might be in order. The key principle at these firms is MOTS – More of the Same. We do what we did last year, but we do more.
More revenue, more customers, more market share, more net. A pretty common-sense approach. But this is not a strategy. This is a behavior pattern. Let’s do what we have always done, presumably because it has more-or-less worked. This approach makes sense if the world is static. If the world is standing still, if society is standing still, if technology is standing still, and if competitors are standing still– then it is ok if the business stands still as well. But there are moving pieces out there, so you had better move as well. Unless the business incorporates a bit of a change culture, it risks falling behind.
Therefore, some sort of strategy is in order. Strategy can mean the allocation of resources without the normal formula for a return, displaying some capacity for experimentation. Strategy can mean you are doing something different, and the constituency for this change has not yet been established. Strategy can mean clearer costs than benefits.
Strategy can mean a journey into the unknown. You are taking steps that require you to stretch beyond current capabilities. A new product launch could represent a strategy. A new sales channel. Or a new market.
For most companies, the decision to go into a new market is a matter of strategy, because growth is no longer MOTS. The best expression of this might be a decision to go to China. On any given day it might not make sense to have a strategy. It makes sense to do what you did yesterday. But cumulatively, this could lead to a disaster.
On any given day, it might not make sense to go into a new market. But over the long run it could cripple the company to stay only in its home market. I caught up with Jack Ma recently at the Forbes Global CEO Conference. Jack has stepped down as Alibaba ($BABA) chairman, but he is still fiercely passionate about helping companies enter the China market. I had not seen him in almost a year, but we immediately saw this issue eye-to-eye.
Sooner or later, every company needs an international strategy. Sooner or later, every company needs a China strategy. Strategy is possible. Cost-free strategy is not. Those companies that are taking the international journey, we salute you.
Whether in banking, communications, trade negotiations, or e-commerce, my professional life is helping companies enter and succeed in new markets, with a particular focus on China. As Founder and CEO of Export Now, I run the largest international firm in China e-commerce. Export Now provides turn-key services for international brands in China e-commerce, including market strategy and competitive analysis, regulatory approval, store operations and fulfillment, financial settlement and remittance. Previously, I served as Asia Pacific Chair for Edelman Public Affairs and in my last role in government, I served as Undersecretary for International Trade at the U.S. Department of Commerce. Previously, I served as U.S. Ambassador to Singapore. Earlier, I served in Hong Kong and Singapore with Citibank and Bank of America and on the White House and National Security Council staff. New market book: http://amzn.to/2py3kqm WWII history book: http://amzn.to/2qtk0wK
Welcome to the Vodcasts of the IUBH correspondence courses. (http://www.iubh-fernstudium.de). In this video of the course “Managing in a Global Economy”, part of the “Master of Business Administration” program, Jürgen-Mathias Seeler discusses the topic “Strategy Development in International Business”. By the end of this lecture you will be able to understand the meaning of strategy in international business, the potential benefits from global strategies, the most important strategic choices in globalized business operations and how to manage strategy development and strategy adoption successfully. To find out more about the “Master of Business Administration” program, please visit http://www.iubh-fernstudium.de/unsere….
Pivoting is expensive, but so is making smaller changes to your business plan to address the present-day realities of your market, your customers and your company. Revising your plan and implementing those changes can be time-consuming and expensive, and it can result in considerable operational upheaval.
In a startup, momentum is everything. Growth provides the resources to continue to expand, beat the competition, improve quality and service, and increase efficiency through economies of scale.
Unfortunately, most small businesses can’t afford to simply plow additional funds into advertising in order to grow. Keeping customer acquisition costs down — and churn rate down as well — is key in the early stages for any bootstrapped startup.
In that case, growth might require jettisoning — or at the very least de-emphasizing — some products to focus on more profitable products. (See Steve Jobs when he returned to Apple in 1997.) That may require you to shift employees into new seats: sales, service, operations, etc.
Do this and the result might be a ripple effect of positives: Shifting employees provides opportunities for them to learn new skills, demonstrate new talents and learn about other functional areas. Moving a few employees into different roles can help re-energize and re-engage a number of other people.
Growth could also require introducing new products or services, especially when they complement existing offerings. Complementary offerings are a great way to re-engage existing customers as well as to bring in new customers who may then purchase other products or services.
In short: If your growth has stalled, what you planned to offer may not be sufficient. So how will you know what changes to make?
Ask your customers. They’ll tell you.
2. The needs of your “ideal” customer have changed.
Every business plan includes information on the target market: Demographics, interests, needs, pain points, etc. Over time, those needs can change (or maybe they never actually existed, at least on a sufficiently broad scale).
If you’re a tech company, evolving technologies can change the way customers interact with your service. If you’re in the restaurant business, today’s hot trend can be tomorrow’s outdated fad.
More likely, as your business has grown, so too has your infrastructure — meaning the level of one-on-one service you planned to provide is no longer necessary. (Or even desired.)
A great business plan lays out a blueprint for meeting customer needs and solving customer pain points. A great business constantly evolves to ensure those needs are met and those pains are eliminated.
Stay on top of metrics like return, service calls, churn rate, etc. to keep up with changing customer needs. Talk to your customers to find out how their needs may have changed.
Then revise your plan to make sure you provide not just what your plan says, but what customers really want and will pay to get.
3. You need full-time people in freelancer seats
Early on you may not have needed — or maybe couldn’t afford — to hire full-time people to perform certain functions. Wisely, you turned to freelancers. Freelancers are great for completing specific tasks, especially when sufficient expertise or specialized knowledge is a necessity.
The problem with freelancers is that they can only perform specific tasks. They can’t step into other roles. They can’t step into other functions. Because they aren’t a part of your company, they can’t learn and grow and develop with your company.
At some point it makes sense to hire a full-time employee. While they might not currently possess every drop of skill and experience they need to succeed in the role, when you hire people who are adaptable and eager to learn, they soon will.
And then they will help create an outstanding foundation upon which your company can grow.
Tutorial starts at 1:20 Whether you’re starting a new business or just trying to get your existing business a bit more organized, writing a business plan is the perfect way to clearly outline how your business operates, declare goals, and set out a strategy to reach those goals. In this video you’ll learn about the six essential pages every business plan should have, what to record on each of those pages, and also how to write your business plan as quickly and easily as possible — even if you’re a complete beginner! 🔹 Download the FREE Six-Step Business Success Plan: https://www.gillianperkins.com/downlo… // WHAT TO WATCH NEXT Six Ways to Earn Six Figures Working from Home https://www.youtube.com/watch?v=Y1i8x… How I (actually) Got My First Client Online https://www.youtube.com/watch?v=AST3P… How I Created Multiple Streams of Income for Myself https://www.youtube.com/watch?v=dfaH_… How to Decide What Business to Start https://www.youtube.com/watch?v=Mid_A… // LINKS Learn more about Gillian and find resources to build your online business: https://www.gillianperkins.com Join our private Facebook group! https://www.facebook.com/groups/start… Follow Gillian on Instagram to get a BTS look at what it’s like to be a digital entrepreneur: https://www.instagram.com/gillianzper… // MAIL Gillian Perkins International P.O. Box 13573 Salem, OR 97309 NOTE: This description may contains affiliate links to products we enjoy using ourselves. Should you choose to use these links, this channel may earn affiliate commissions at no additional cost to you. We appreciate your support! KEYWORDS how to write a business plan, free business plan, do i need a business plan, #entrepreneurship, #gillianperkins, business plan how-to guide, business plan step by step, business plan tips ,gillian perkins, gillianperkins, do you need a business plan, How To Write a Business Plan To Start Your Own Business, how to write a business plan step by step, business plan for beginners, simple business plan, business 101, business plan template, business plan example, how to write a business plan for beginners
Dr. Joe DeSimone took his own path to entrepreneurship. His latest venture, Carbon, is changing the way things are made.
He’s assembled one of the most impressive Board of Directors and line up of investors to transform the $300 billion manufacturing industry.
Joe recently appeared as a guest on the DealMakers Podcast. During his exclusive interview, he shared how his team is transforming how the world makes things, the fundraising process, what it’s like building a nearly 500 person company in less than 6 years, and many more topics.
From Academia to Entrepreneurship
Joe DeSimone was born and raised in the suburbs of Philadelphia. Ever since high school, Joe found he had a knack for chemistry. For both understanding it and for teaching it.
He attended Ursinus College, and then Virginia Tech for his Ph.D. On a tip from a faculty advisor, he went to check out the University of North Carolina, at Chapel Hill—-one of the top 10 chemistry departments in the country.
If he would teach organic and polymer chemistry, then they would give him $500,000 to start a research program. He was convinced. At UNC, he enjoyed a highly successful career as a professor for 25 years.
Joe taught a lot of students chemistry and mentored many researchers. He learned that people have very different learning styles. From his perspective, if you want to be a great teacher, you have to take responsibility for explaining complicated topics in accessible ways.
It turns out that is a really important trait for entrepreneurs too. It’s a valuable skill whether you’re doing it in a classroom setting, talking to VCs or investors, or your own employees. The importance of bringing people along with you.
His position in academia enabled Joe DeSimone to pursue a handful of interesting startups based on his research before he launching his newest venture, Carbon, in 2013.
His first company was BioStent. A partnership with an interventional cardiologist at Duke University. They developed a coronary stent that is polymeric instead of metal-based. It dissolves in the body after 18 months, once blood vessels can operate on their own again. The company was acquired by Guidant, and then Abbott.
Next, it was Liquidia Technologies, a partnership with one of Joe’s Ph.D. students including Jason Rolland, now SVP of Materials at Carbon. Liquidia went IPO last year.
They developed technology that leveraged tools from the computer industry to make precision nanoparticles. It spawned new and more effective ways to deliver medicines to the airway.
It has proven valuable in improving treatment approaches for diseases like pulmonary arterial hypertension, and in creating next-generation vaccine platforms for infectious diseases and certain cancers.
After spending 25 as a faculty member at UNC, the opportunity to go to Silicon Valley and take on a new entrepreneurial challenge was something Joe couldn’t pass up.
UNC agreed he could take a sabbatical to pursue his idea. That was five years ago.
Departing Academia for Silicon Valley
When Joe left North Carolina for Silicon Valley to found Carbon, he didn’t know what the future would hold. Carbon is now one of the world’s leading digital manufacturing companies.
Based in Redwood City, Carbon’s mission is to enable companies to make breakthrough products that can improve human health and well being, transform industries, and change the world.
Joe launched the company and its groundbreaking Digital Light Synthesis™ (DLS) technology on the TED stage in 2015. DLS fuses light and oxygen to rapidly produce products from a pool of resin. Using DLS technology, Carbon is enabling companies like Adidas, Riddell, Ford and Johnson & Johnson to create breakthrough products at speeds and volumes never before possible, finally fulfilling the promise of 3D printing.
Joe believes that empowering product teams to make breakthrough products and bring them to market faster will change the way we live.
Carbon has cracked the code on 3D printing at scale. The manufacturing industry is a $12 trillion market and manufacturing polymers is a $330 billion market. There is enormous potential here for Carbon to lead the digital revolution in manufacturing.
Creating a Company Differentiated by its Technology, Business Model and Team
With a team of nearly 500 employees around the world, Carbon has also assembled an impressive team of board members and investors while raising $680 million in the process at a $2.5 billion valuation.
Carbon’s board includes former Chairman and CEO of DuPont, Ellen Kullman, former CEO of Ford Motor Company, and former CEO of Boeing’s Aircraft Division, Alan Mulally, and Sequoia’s Jim Goetz.
Some of their investors include Sequoia, Google Ventures, GE, Adidas, BMW, Johnson & Johnson, and JSR. They’ve also got Fidelity, Baillie Gifford, and Madrone Capital Partners as well as investment from additional international sovereign funds.
Storytelling is everything in fundraising and Carbon was able to master this. Being able to capture the essence of what you are doing in 15 to 20 slides is the key. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Critical Ingredients for a Successful Company
During the interview, Joe shared three of the most important components of building a successful company as being:
1. The importance of IP and patent-protection
2. Building highly differentiated technology
3. Assembling a world class team of people that are committed, passionate, and talented
DeSimone also shared his thoughts on the similarities between academia and entrepreneurship such as the importance of bringing people along with you and painting a vision for the future and how the world can be different.
Listen in to the full podcast episode to find out more, including:
I am a serial entrepreneur and the author of the The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley & Sons, the book was named one of the best books for entrepreneurs. The book offers a step-by-step guide to today‘s way of raising money for entrepreneurs. Most recently, I built and exited CoFoundersLab which is one of the largest communities of founders online. Prior to CoFoundersLab, I worked as a lawyer at King & Spalding where I was involved in one of the biggest investment arbitration cases in history ($113 billion at stake). I am an active speaker and have given guest lectures at the Wharton School of Business, Columbia Business School, and at NYU Stern School of Business. I have been involved with the JOBS Act since inception and was invited to the White House and the US House of Representatives to provide my stands on the new regulatory changes concerning fundraising online
To paraphrase Walter Cronkite, it was, and remains to this day, the greatest adventure in the history of mankind.
The 50th anniversary of the Apollo 11 lunar landing says much about the capability of our country, the miracles of science and engineering and the commitment of the NASA team. But it also offers important lessons on leadership, which are as relevant today as they were in July, 1969.
These are leadership lessons that transcend time and circumstance, which corporate executives and board members may well want to consider as they commemorate this great event.
Lesson #1: Visions Can Come True. JFK’s memorable 1962 “Moon Speech” set forth the vision of Apollo. It included the famous “…because it is hard” acknowledgment, and the equally inspiring charge that “…to do all this, and do it right, and do it first before this decade is out—then we must be bold.” Some 57 years later, vision, boldness and the motivation they generate in others remain essential tools by which leaders take organizations to great heights. Their absence can create insurmountable barriers to growth.
Lesson #2: Teamwork Matters. The three Apollo 11 astronauts were not close friends. They had different personalities. Armstrong was emotionally remote. Aldrin acerbic and abrasive. Collins more “happy go lucky.” But they made it work; they interacted successfully under the most extreme circumstances. For leaders don’t need to be BFFs with their colleagues in order to be effective. They do, however, need to be accepting and respectful of who their colleagues are, and the contributions they offer.
Lesson #3: Confidence. They believed in their systems in spite of the risks: the Saturn V liftoff, the LM ascent engine firing, trans-earth injection, the re-entry and splashdown. Even at NASA’s famous 99.9% reliability standard, much could still go wrong. Yet they moved forward in reliance on confidence in the technical competency of the workforce and the efforts to remove risk from the conceptual design. Where leaders can establish an organizational commitment to quality, safety and risk management, managers can more comfortably implement even the most aggressive of products.
Lesson #4: We Need The Michael Collinses. It was not for Collins to land on the moon. It was for him to orbit the moon in solitude, waiting/hoping for the return of Armstrong and Aldrin from the lunar surface. His glory would be less; history would not treat him nearly as prominently. And he was good with it. Indeed, every organization needs leaders content to do their job, who are willing to be part of a larger effort and not likely to complain or worry about more glamorous tasks being assigned to others.
Lesson #5: Command Decisions Count. The legend is indeed the fact. Armstrong really did land the Lunar Module, manually, with just 16 seconds of fuel remaining. Aborting the descent was not an option. Like all good leaders, Armstrong was in charge. He knew the terrain. He knew his machine. He knew the stakes and he was going to get the job done. The absolute ultimate command decision. Leaders who “sit in the left seat” must be prepared to “make the call,” to make the most difficult of decisions, often in the most trying of circumstances.
Lesson #6: Encourage Ideas. It wasn’t store-bought. There wasn’t a model or prototype. The enormous “crawler” that transported the Saturn V from the Vehicle Assembly Plant to the launchpad was the brainchild of a member of the launch operations team, whose name is now lost to history. He reportedly got the idea from watching the strip-mining process. Ingenuity and creativity often have wildly diverse parentage, and smart leaders will encourage ideas from all elements of the workforce, starting with the mailroom and continuing up the ladder.
Lesson #7: “Code 1202” Events. It was the Apollo version of a “black swan.” On final lunar descent, an unusual program alarm (code 1202) flashed, indicating a problem with the guidance computer. With the landing in balance, a young control officer in Houston, familiar with the code from earlier simulations, provided the critical “go on that alarm” assurance. No company is immune to a Code 1202 event. The unforeseeable will occur. But leadership can set expectations concerning risk evaluation that will help the company respond in crisis situations.
Lesson #8: It Takes A Village. A very big village, in fact. The Apollo project team was estimated at over 300,000 people. It was an amazing partnership between the government, private industry and the astronauts—and, ultimately the American public. And on their final flight transmission, the Apollo astronauts paid a humble video tribute to that partnership. Effective leadership recognizes that success often requires a combination of management vision and workforce commitment. Rarely is it one or the other, and almost never “just about me.”
Lesson #9: Learn from Mistakes. The great success of Apollo 11 was made possible in large part by the tragic failure of Apollo 1. That catastrophe forced NASA to confront its culture of complacency for risk and safety, and to restructure its entire operations. Indeed, great lessons can be learned from failure as well as success; from accepting responsibility for non-performance and moving forward from there. Even on the largest possible scale, leaders never stop learning-even from their own (or their organization’s) mistakes.
Lesson #10: Otherworldly Commitment. Armstrong attributed Apollo’s success to its nature as “a project in which everybody involved was…interested…involved…and fascinated by the job they were doing.” (“Rocket Men: The Epic Story of the First Men on the Moon” by Craig Nelson (Penguin, 2009) In today’s business environment, when leaders are increasingly focused on workforce culture and satisfaction, major initiatives are more likely to succeed when employees, like the Apollo team, are motivated “to [do] their job a little better than they have to.”
There is an understandable tendency to marginalize important events that happened long ago. Men in a spaceship—how interesting, but of course it was long ago, and we’ve progressed so much since then. It’s hardly relevant to our world today. But as to Apollo 11, that would be a huge mistake; it still matters, very much so.
In his Farewell Address to the nation, President Reagan spoke to the lasting value of the American heritage. He warned of an eradication of the American memory that could result, ultimately, in an erosion of the American spirit. “If we forget what we did, we won’t know who we are.” And, one might add, of what we are capable of achieving, as a nation, as individuals—and as organizations. That’s the transcendent lesson of Apollo 11. And it’s a lesson that is meaningful in the boardroom, and the executive suite.
I wish to acknowledge “Rocket Men: The Epic Story of the First Men on the Moon” by Craig Nelson (Penguin, 2009) as a resource in the preparation of this post.
I am a partner in the Chicago office of international law firm McDermott Will & Emery and earned my law degree at Northwestern University. I represent corporations (and their officers and directors) in connection with governance, corporate structure, fiduciary duties, officer-director liability issues, charitable trust law and corporate alliances. Over the course of my 39-year career, I have served as outside governance counsel to many prominent national corporations. I speak and write on a range of emerging trends and issues in corporate governance to help leaders understand the implications and how they might be relevant to their own circumstances. Writing is a passion of mine and I do my best writing on the porch of my home in Michigan.
Each year for the past five, Forbes has searched the country for the 25 fast-growing, venture-backed startups most likely to reach $1 billion in value. Graduates include: food delivery service DoorDash, home seller Opendoor, luggage brand Away and synthetic biology company Ginkgo Bioworks.
This year, with the help of TrueBridge Capital Partners, we scoured the country again for budding unicorns. TrueBridge analyzed the finances of more than 150 startups, then our reporters dug deeper. That research caught problems at San Francisco-based Cleo, a parenting app with a troubled workplace and a CEO who lied about her age and background. The company was removed from consideration after our investigation, and its CEO resigned in mid-June. (The full story is here.)
FOUNDERS: Michael Gronager (CEO), Jonathan Levin, Jan Moller
EQUITY RAISED: $53 million
ESTIMATED 2018 REVENUE: $8 million
LEAD INVESTORS: Accel, Benchmark
New York-based Chainalysis makes cryptocurrency investigation software that can shine light on how people use bitcoin, ethereum, litecoin and more. Financial institutions use the technology to screen customers and comply with regulations designed to prevent money laundering, while government agencies such as the Internal Revenue Service and the Federal Bureau of Investigation can identify illicit transactions and investigate alleged criminals. Before teaming up to found Chainalysis, CEO Michael Gronager, 49, cofounded cryptocurrency exchange Kraken, while CTO Jan Moller, 47, built the Mycelium cryptocurrency wallet.
FOUNDERS: Arshan Dabirsiaghi, Jeff Williams; CEO: Alan Naumann
EQUITY RAISED: $122 million
ESTIMATED 2018 REVENUE: $25 million
LEAD INVESTORS: Acero Capital, Battery Ventures, General Catalyst, Warburg Pincus
In 2010, software security analyst Jeff Williams, 52, started dedicating resources at his consultancy, Aspect, to developing a program that would automate software security analysis. In 2014, he and former Aspect analyst Arshan Dabirsiaghi, 36, founded Los Altos, California-based Contrast Security to monitor the code within running apps and directly notify developers of potential vulnerabilities. “The work that previously had to go through security experts now goes directly to developers,” says Dabirsiaghi, now the company’s chief scientist. In 2016, the company brought in an outside chief executive, Alan Naumann, formerly CEO of online fraud detection startup 41st Parameter, to expand the business.
FOUNDERS: Lior Div (CEO), Yossi Naar, Yonatan Striem-Amit
EQUITY RAISED: $189 million
ESTIMATED 2018 REVENUE: $50 million
LEAD INVESTORS: CRV, Lockheed Martin, Softbank, Spark Capital
Cofounders Lior Div, Yossi Naar, and Yonatan Striem-Amit met during their service in the Israel Defense Forces’ elite intelligence unit, Unit 8200, fertile ground for many high-tech startups. While working on cybersecurity in the military, they came up with the idea for Cybereason, a cloud-based cybersecurity platform specializing in continuous monitoring and response to advanced cybersecurity threats. The company launched in 2012, and relocated from Israel to Boston the next year. “You provide value by helping a big organization not to be in the news as someone that gets hacked,” says Div, 41.
FOUNDERS: Paras Chitrakar, Jason Wilk (CEO), John Wolanin
EQUITY RAISED: $13 million
ESTIMATED 2018 REVENUE: $19 million
LEAD INVESTORS: Mark Cuban, Section 32
As a college student at Loyola Marymount University, Jason Wilk, now 34, blew through his budget, collecting overdraft fees. Wilk, an avid “Redditor,” saw that overdraft fees are a common complaint among users. So in 2016, he founded Dave, short for David, who beat Goliath, which Wilk sees as the big banks. The app tracks expenses and warns when a user’s account is in danger of being overdrawn. It hit a nerve: Dave was Apple’s “app of the day” in April 2017, and has been downloaded nearly 10 million times in two years. “Entrepreneurs can keep their ear to the ground for the next idea,” Wilk says. “Any idea that can be Reddit tested is a good place to start.”
FOUNDERS: Blake Murray (CEO), Alex Bean
EQUITY RAISED: $257 million
ESTIMATED 2018 REVENUE: $8 million
LEAD INVESTORS: Insight Partners, New Enterprise Associates, Pelion Venture Partners
Expense tracking service Divvy is taking on Concur and Expensify by offering its budgeting, fraud detection, and spend management tools for free. Instead of charging per user, Lehi, Utah-based Divvy gives businesses custom Mastercards and takes a cut of merchants’ fees to the bank when people make purchases. Founders (and high school buddies) Alex Bean and Blake Murray, both 35, have won over more than 3,000 corporate customers so far, including WordPress, Evernote and Qualtrics.
FOUNDERS: Luis von Ahn (CEO), Severin Hacker
EQUITY RAISED: $108 million
ESTIMATED 2018 REVENUE: $36 million
LEAD INVESTORS: CapitalG, Kleiner Perkins, Union Square Ventures
The world’s most popular digital language-learning tool, seven-year-old Duolingo has 28 million monthly active users. Most use the free version of its gamified courses. Revenue, largely from subscription fees from ad-free Duolingo Plus, is expected to double this year. CEO Luis von Ahn, 39, is a 2006 winner of a MacArthur “genius” grant and a former Carnegie Mellon computer science professor. Before founding Pittsburgh-based Duolingo, he sold two inventions to Google, including reCAPTCHA, the software that spits out the squiggly lines you type to alert a website that you are not a bot. An immigrant from Guatemala City who says learning English transformed his life, he’s driven to offer free language education to the masses. For our feature on Duolingo, click here.
FOUNDERS: Marcelo Cortes, Daniele Perito, Max Rhodes (CEO)
EQUITY RAISED: $116 million
ESTIMATED 2018 REVENUE: $100 million
LEAD INVESTORS: Forerunner Ventures, Khosla Ventures, Lightspeed Venture Partners, Y Combinator
In a bid to help mom-and-pop stores survive in the age of Amazon, Faire wants to take the risk and hassle out of wholesale purchasing. The San Francisco-based company helps retailers discover and buy new products online, and will accept free returns from them within 60 days for items that don’t sell. Today, it offers 5,000 brands to 35,000 stores. CEO Max Rhodes, a 32-year-old former Square employee, came up with the idea after he started working with a New Zealand-based umbrella brand and spent thousands of dollars to sit at a tradeshow booth to convince U.S. store owners to stock the high-end umbrellas.
FOUNDERS: Dylan Field (CEO), Evan Wallace
EQUITY RAISED: $83 million
ESTIMATED 2018 REVENUE: $3 million
LEAD INVESTORS: Greylock, Index Ventures, Kleiner Perkins, Sequoia
Figma wants to move design online, casting aside the old model of software downloads and siloed creation in favor of a browser-based tool where designers can work and collaborate together. Founders Evan Wallace, 29, and Dylan Field, 27, met at Brown University—Wallace graduated, Field dropped out with a Thiel Fellowship—and launched the San Francisco-based company in 2012. Five years later, Figma started charging professionals to use its product. (Individuals are still free.) Today, professionals pay $12 per editor per month and businesses $45 per editor month to use Figma. More than 5,000 teams, at companies like Microsoft, Volvo, Uber and Square, are users. “Design is like this viral infectant because once your competitor is well-designed, you have to be well-designed, otherwise you’ll be disrupted,” says Field.
FOUNDERS: Arun Chandrasekaran, Matt Elenjickal (CEO)
EQUITY RAISED: $101 million
ESTIMATED 2018 REVENUE: $16 million
LEAD INVESTORS: August Capital, Bain Capital Ventures, Hyde Park Venture Partners
Matt Elenjickal, 37, a logistics geek with an MBA from Northwestern University’s Kellogg School of Management, founded FourKites in 2014 to help companies know where their deliveries are, when they’ll arrive and what’s going on along the way. Its predictive supply-chain management software is now used by more than 260 of the world’s top shippers — and upwards of 500,000 loads per day — including Best Buy, Kraft Heinz, Nestlé and Smithfield Foods. “If you are a shipper, once the truck leaves your facility you have no idea what is happening,” Elenjickal says. “That is how supply chains are run even now without a solution like FourKites. You cannot compete against Amazon.”
FOUNDERS: Mathilde Collin (CEO), Laurent Perrin
EQUITY RAISED: $79 million
ESTIMATED 2018 REVENUE: $16 million
LEAD INVESTORS: Sequoia, Uncork Capital
Mathilde Collin, an alumna of Forbes’ 30 Under 30 list, got the idea for Front while at her first job after graduate school. “I saw how much time was wasted with people sorting through their emails,” she says. So in 2013, she launched the San Francisco-based startup to help companies become more productive with a shared email inbox that incorporates Facebook, Twitter and SMS, and encourages team collaboration. Today, Front has 5,000 customers including Shopify, MailChimp and Stripe.
FOUNDERS: Sung Ho Choi, David Gandler (CEO), Alberto Horihuela
EQUITY RAISED: $145 million
ESTIMATED 2018 REVENUE: $74 million
LEAD INVESTORS: 21st Century Fox, Northzone, Sky
David Gandler, 44, a longtime network sales exec, launched FuboTV in 2015 to tap into pent-up demand in the United States for overseas soccer leagues. FuboTV offered live streams of soccer channels such as GolTV and Benfica TV to start, then expanded programming through deals with beIN Sports and Univision. Today, New York-based FuboTV is generally a cheaper alternative to cable (starting at $54.99 a month) that offers more than 90 channels.
FOUNDERS: Chris Clark, Stuart Landesberg (CEO), Jordan Savage
EQUITY RAISED: $213 million
ESTIMATED 2018 REVENUE: $104 million
LEAD INVESTORS: Bullpen Capital, General Atlantic, Lone Pine Ventures, Mayfield Fund, Norwest Venture Partners, Serious Change
Ask Grove Collaborative CEO Stuart Landesberg, 34, who his typical customer is, and he’ll give you a specific answer: “A 29-year-old mother of two working as a substitute teacher in Lawrence, Kansas.” Even in the age of Amazon, Grove has carved out a $104 million niche in e-commerce by selling natural products, from laundry detergent to sponges, in easy-to-order shipments. Around 60% of its revenue comes from products not sold on Amazon, says Landesberg. But he wants to do more than sell Seventh Generation or Method soaps online. In 2016, Grove started to manufacture its own all-natural products that now make up nearly 50% of its sales. The key? Designing products that are easier to ship. Its glass cleaner, for example, is highly-concentrated and smaller than a tube of toothpaste.
FOUNDERS: Augusto Marietti (CEO), Marco Palladino
EQUITY RAISED: $71 million
ESTIMATED 2018 REVENUE: $5 million
LEAD INVESTORS: Andreessen Horowitz, CRV, Index Ventures, New Enterprise Associates
Kong acts as a gatekeeper to companies’ APIs (code developers use to build apps) and monitors how often they’re used. Augusto Marietti, 31, and Marco Palladino, 30, launched the company out of a garage in Milan, where they both attended university, and were constantly flying back and forth to Silicon Valley to fundraise. “At this stage, we barely had enough money to eat,” Marietti says. “We definitely lost a few pounds when we were first starting up.” Now based in San Francisco, Kong has successfully penetrated the enterprise market with 130 customers that include SoulCycle, Yahoo Japan and WeWork.
FOUNDERS: Jack Altman (CEO), Eric Koslow
EQUITY RAISED: $27 million
ESTIMATED 2018 REVENUE: $7 million
LEAD INVESTORS: Shasta Ventures, Thrive Capital
Lattice founders Jack Altman, 30, and Eric Koslow, 28, learned first-hand the impact of work culture while working at startup Teespring, which sells custom t-shirts. In 2015, they decided to do something about it, starting Lattice. The San Francisco-based company’s human resources software uses surveys to shift the focus of performance management from employee evaluation to career development. Today, Lattice works with 1,300 customers, including Coinbase, Instacart, Slack and WeWork. “Employees are looking for more meaning from work than ever before, and have more visibility into and access to other jobs than ever before,” Altman says. Lattice helps their employers step up.
FOUNDERS: Elton Chung, Lidia Yan (CEO)
EQUITY RAISED: $125 million
ESTIMATED 2018 REVENUE: $46 million
LEAD INVESTORS: Brookfield Ventures, China Energy Group, Sequoia
Cofounded by husband and wife team Elton Chung and Lidia Yan in 2015, Los Angeles-based Next Trucking is moving freight brokerage online. While other startups like Convoy and Uber Freight move cargo from point A to point B, Next Trucking focuses on drayage, or the “first-mile” of transferring goods from port to warehouse. “Drayage is a lot more complicated because it involves terminals and ports,” says Yan, 38. As a result, Next Trucking has doubled revenue every year since 2016, reaching $46 million in 2018. Yan forecasts revenue will hit $120 million this year, helped by large contracts with retailers Dollar General, Rite Aid and Steve Madden. For our feature on Next Trucking, click here.
FOUNDERS: Jack Conte (CEO), Sam Yam
EQUITY RAISED: $166 million
ESTIMATED 2018 REVENUE: $35 million
LEAD INVESTORS: Freestyle Capital, Glade Brook Capital Partners, Index Ventures, Thrive Capital
Musician turned entrepreneur, Jack Conte, 35, wants to break the “starving artist” archetype by helping creators earn a regular income. “Deciding to be an artist shouldn’t have to be a difficult conversation,” says Conte. “It should feel like a viable career choice.” Using Patreon, artists offer exclusive experiences in return for contributions from their subscribers or “patrons.” HBO’s Issa Rae, Humans of New York founder Brandon Stanton and comedian Heather McDonald are some of the creators currently using Patreon and by 2019, the company expects to pay out more than $1 billion to its users.
FOUNDERS: Denis Mars (CEO), Simon Ratner
EQUITY RAISED: $14 million
ESTIMATED 2018 REVENUE: $1 million
LEAD INVESTOR: Kleiner Perkins
The Proxy app is like having a set of keys on your smartphone: Your profile’s signal gives you access to any building where you’re registered, eliminating the need for traditional ID cards and keys. It’s a straightforward idea, but Australian-expat founders Denis Mars, 42, and Simon Ratner, 39, are confident that they’ve just scratched the surface of its potential. So far, San Francisco-based Proxy has proven popular with commercial real estate clients like WeWork. Mars and Ratner now hope to expand their technology (which includes the app, management platform and signal-reading hardware) to identity verification for ride-sharing and event check-in.
FOUNDERS: Ofer Bengal (CEO), Yiftach Shoolman
EQUITY RAISED: $147 million
ESTIMATED 2018 REVENUE: $50 million
LEAD INVESTORS: Bain Capital Ventures, Francisco Partners, Goldman Sachs, Viola Ventures
Israeli tech veterans Ofer Bengal and Yiftach Shoolman set up a fast-database service, in 2011, to help businesses looking to speed up responses on their apps. Redis Labs relies on what’s known as NoSQL, an alternative form of compiling data that is faster than traditional models. That lightening-fast processing speed has helped it sign on FedEx, Mastercard and other corporate behemoths. To scale up quickly, the Mountain View, California-based company offered a free, open-source version to hook developers. In 2013, it rolled out a paid version with costs starting at $5 per month per gigabyte. “You can’t do without open source if you want rapid adoption,” says Bengal.
FOUNDERS: Shivaas Gulati, Josh Hug, Matt Oppenheimer (CEO)
EQUITY RAISED: $312 million
ESTIMATED 2018 REVENUE: $80 million
LEAD INVESTORS: Bezos Expeditions, DFJ Venture Capital (now Threshold Ventures), Generation Investment Management, Naspers’ PayU, QED Investors, Stripes Group
Remitly is taking on Western Union with lower fees — estimated 1.5% on average vs. the money-transfer giant’s 5%. Matt Oppenheimer, who had worked for Barclays in Kenya, and his cofounders launched the business in 2011 to help people in developed nations like the U.S. and Australia send money cheaply to relatives in developing countries like Mexico and the Philippines. Today, Remitly serves 60 countries and processes $6 billion a year in money transfers, about 1% of the nearly $700 billion remittance market. Already one of the largest fintech firms targeting immigrants, the Seattle startup’s long-term goal is to branch out into other financial services, potentially including credit cards, personal loans and auto loans.
FOUNDERS: Xuan Yong (CEO), Mike Witte
EQUITY RAISED: $94 million
ESTIMATED 2018 REVENUE: $21 million
LEAD INVESTORS: Bedrock Capital, Founders Fund, Quantum Energy Partners
There are nearly 1,000 rigs drilling for oil and gas in the U.S. Each well requires the input of dozens of service companies and workers — everything from high-horsepower compressors for fracking, to miles of steel pipe, and millions of gallons of water and truckloads of sand. Cofounder Xuan Yong, formerly of Citadel and D.E. Shaw, believes RigUp can improve on the good ol’ boy network by more efficiently connecting the “hyperfragmented” market of roughnecks, engineers and business owners with the big oil companies that call the shots. RigUp pre-vets workers and vendors, and creams an estimated 4% off every contract made via its online platform. Yong isn’t worried about machines invading the oilpatch. “Even with A.I. there will be demand growth for labor,” he says. “Field tickets are still signed on paper and stamped.” For now.
FOUNDERS: Stephen Hawthornthwaite, Roth Martin (interim CEO)
EQUITY RAISED: $42 million
ESTIMATED 2018 REVENUE: $140 million
LEAD INVESTORS: Goldman Sachs, Lightspeed Venture Partners
Founders Roth Martin, a former art gallery owner, and Stephen Hawthornthwaite (aka “Hawthy”), a former investment banker, launched the footwear brand after listening to their wives complain about the lack of stylish, comfortable shoes. Rothy’s 3D-knitted round-toe and point-toe flats, made from recycled plastic water bottles, have gained cult status. In just three years, it expanded rapidly with direct-to-consumer sales online, reaching revenue of $140 million last year. For our feature on Rothy’s, click here.
FOUNDERS: Phillip Liu, Karthik Rau (CEO)
EQUITY RAISED: $179 million
ESTIMATED 2018 REVENUE: $25 million
LEAD INVESTORS: Andreessen Horowitz, CRV, General Catalyst, Tiger Global Management
SignalFx monitors cloud infrastructure in real time for companies like Yelp, Shutterfly and HubSpot. In 2013, Karthik Rau, 41, who previously worked at tech startups LoudCloud and VMware, founded the company with ex-Facebook software architect Phillip Liu, 51. While competitors collect and query data in batches every two to three minutes, SignalFx evaluates and alerts users to anomalies in two to five seconds. “The difference between getting reliable alerts within seconds and getting them in minutes is the difference of seamlessly dealing with an issue,” says Rau. “Or having all of your users on Twitter complaining.”
FOUNDERS: Paul Dabrowski (CEO), Michael Dabrowski
EQUITY RAISED: $157 million
ESTIMATED 2018 REVENUE: $20 million
LEAD INVESTORS: Founders Fund, 8VC
Gene-editing tool Crispr has unleashed a gold rush for new products made possible by cheaply and easily editing DNA. Synthego is cashing in by selling the genomic equivalent of pickaxes, shovels, maps and other tools. Its ready-made and custom kits allow researchers in academia and the private sector to rapidly develop gene-edited products, including new medical treatments. Its founders, brothers Paul and Michael Dabrowski, 34 and 38, previously worked at SpaceX as engineers and drew on that experience to bring a new way of thinking to biotech.
FOUNDERS: Umar Afridi (CEO), Sid Viswanathan
EQUITY RAISED: $13 million
ESTIMATED 2018 REVENUE: $48 million
LEAD INVESTOR: Initialized Capital
If you buy birth control from Nurx or hair-loss products from Hims, behind-the-scenes pharmacy Truepill will actually fill and deliver your prescription. The three-year-old startup’s founders Umar Afridi, 37, a former retail pharmacist, and Sid Viswanathan, 35, who previously worked at Johnson & Johnson and LinkedIn, see a growing market in bringing technology and efficiency to pharmacy. Although Truepill started with direct-to-consumer brands, it’s now making a bigger play to bring on corporate customers with pricey, specialty medications.
FOUNDERS: Benjamin Bercovitz, Filip Kaliszan (CEO), James Ren, Hans Robertson
EQUITY RAISED: $59 million
ESTIMATED 2018 REVENUE: $20 million
LEAD INVESTORS: First Round, Meritech, Next47, Sequoia
While many startups have tackled the “smart home” with varying degrees of success, Verkada has exploded in shy of two years on the market by offering big businesses, municipalities and schools a cloud-based system that combines hardware and software to detect movement and easily store and share surveillance streams. In 2019, the company founded by three Stanford graduates and the former cofounder of Meraki (a cloud startup since acquired by Cisco) signed on the city of Memphis — a nearly 1,000-camera contract — Juul Labs and Newtown Public School District, the district of the 2012 Sandy Hook Elementary School shooting tragedy.
Additional reporting by Susan Adams, Elisabeth Brier, Dawn Chmielewski, Lauren Debter, Michael del Castillo, Jillian D’Onfro, Christopher Helman, Jeff Kauflin, Alex Knapp, Alex Konrad, Christian Kreznar and Monica Melton
Cover Photographs by Tim Pannell for Forbes | Illustrations by David Wilson
Philippines President Rodrigo Duterte has a terrible human rights record. But the average Filipino is doing better under Duterte.
When it comes to per-capita gross domestic product (GDP), that is. That’s a measure of the total output of a country divided by the number of people in that country.
The Philippines’ per-capita GDP was last recorded at an all-time high of 2,891.36 U.S. dollars in 2017, according to Tradingeconomics.com. That’s well above the average of 1,627.98 USD for the period 1960-2017.
Also, Filipinos are doing better under Duterte when per-capita GDP is adjusted by purchasing power parity (PPP). That measure, too, reached a record 7,599.19 U.S. dollars in 2017, well above the average of 4969.71 USD for the period 1990-2017.
Per Capita GDP
Per Capita GDP PPP
GDP Annual Growth Rate
Source: Tradingeconomics.com 10/26/2018
To be fair, comparing per-capita GDP in USD for different time periods is a tricky exercise. Numbers can be distorted by population growth and currency fluctuations. For instance, the climb in the Philippines per capita GDP has been helped by a slow-down in population growth. It’s also an ongoing trend that can be traced back to the Aquino administration, which brought macroeconomic stability to the country.
“Aquino is delegating power to competent technocrats and seems to understand what needs to be done to get the lights back on,” wrote Ruchir Sharma in Break Out Nations.
Macroeconomic stability has helped the Philippines economy demonstrate a great deal of resilience in recent years. At the end of 2017, it grew at an annual 6.9% in the September quarter. That’s the strongest growth since the third quarter 2016. And the Philippines’ economy was still growing at 6% at the end of 2018.
Tracing per-capita GDP growth back to the Aquino period certainly raises the question: Who should take credit for the record per-capita GDP, Aquino or Duterte?
Philippines iShares MSCI ETF
Meanwhile, a recent McKinsey Global Institute (MGI) study places the Philippines among the few emerging market economies that are well-prepared to achieve sustained growth over the next decade.
That’s thanks to a rise in gross fixed-capital formation (investment). It reached 695,414.08 PHP million in the second quarter of 2018 from roughly 450,000 PHP million in July of 2015–well above the 303,138.16 PHP million for the period 1998 until 2018, and an all-time high.
Still, the Philippines’ per-capita GDP is equivalent to 23% of the world’s average, which makes Filipinos poor. And a resurgence in the cost of living in recent months makes things worse for them. The Philippines’ annual inflation rate rose to 6.7% in September of 2018 from 6.4% in the August, and compared to market expectations of 6.8%.
That’s the highest reading since February 2009, thanks to soaring food, transportation and utility prices.
Inflation, together with revolution and corruption, has suspended Philippines economic progress before, and it will do it again, if they aren’t addressed effectively.
Pilippines Corruption Rank
So rather than celebrating record per capita GDP, Duterte’s administration should keep an eye on the price of bread and rice. And he should look at his human rights record, which cannot be balanced by any economic record.
My recent book The Ten Golden Rules Of Leadership is published by AMACOM, and can be found here.