Showing posts with label entrepreneurship. Show all posts
Showing posts with label entrepreneurship. Show all posts

Friday, January 27, 2023

Choose Courage Over Confidence


Jonathan Kirn/Getty Images

Summary: Self-doubt is a pervasive and often paralyzing concern, and research has repeatedly shown that it impacts women more than men. So what makes high-achieving women power through their self-doubt? According to the author’s research, they focus on building up their courage, not their confidence. She offers three strategies to help women take bold actions in the face of self-doubt and fear: 1) Don’t underestimate the impact of small, yet significant, acts of courage; 2) Practice courageous acts in all areas of your life; and 3) Try again tomorrow.

Have you ever shied away from taking on a role or opportunity because you didn’t feel confident enough? Perhaps your inner critic told you that you weren’t yet ready, weren’t capable enough, or didn’t have enough experience. Perhaps the voice in your head asked: “Why me?”

If you can relate, you’re among the majority of women with whom I’ve worked. I recently asked more than 120 women, from areas including the U.S., UK, Australia, Georgia, Italy, India, Jamaica, and Bermuda: If you’ve ever avoided risks, what factors and reasons contributed to this? More than 70% reported that self-doubt, or not having enough belief in themselves, their capabilities, or their skills, was a driving factor.

As one high-profile executive told me: “Every day I doubt myself. I doubt that I am good enough to be where I am.”

This shouldn’t come as a surprise. We know self-doubt is a pervasive and often paralyzing concern, particularly for women. A study by psychologists at Cornell and Washington State highlighted higher levels of self-doubt in women. Research has also shown that women will apply for a job only if they meet all of the qualifications, while men will apply when they fulfill only 60%. Another recent study identified a substantial gender gap when it comes to self-promotion, with women systematically providing less favorable assessments of their own past performance and potential future ability. Ultimately, men take more chances on themselves, and that pays dividends in the long run.

Focus on Courage, Not Confidence


While this pattern of self-doubt emerged again and again in studies, my interactions, and my client work, I also noticed another commonality: These women’s self-doubts weren’t sabotaging their success. The vast majority of successful women leaders I’ve interviewed and coached have built vibrant and fulfilling careers even while facing self-doubt.

What these women also had in common is courage in the absence of confidence — a trait that is often weaponized against women and used to explain why they fail to achieve career goals. My work has found that successful women take decisive action to move forward even while grappling with fears and doubts and questioning their own “readiness.”

“As women, we often feel like we have to be 100% ready in order to move forward. But, if you are 50% or 75% there, jump. Just do it,” said Megan Costello, former executive director of the Boston Mayor’s Office for Women’s Advancement.

An added bonus? Confidence is the byproduct of courage. The executives I’ve spoken with shared that with each challenge accepted and conquered, they gained confidence. “Gaining more responsibility has given me reason to believe in myself. Now, I’m the president of a brand,” said Julie Hauser-Blanner, former president of Brioche Dorée, a Canadian bakery chain.

By refocusing our internal narratives on courage instead of confidence, women can take bold actions in the face of self-doubt and fear. Here are three strategies to get you started.

Don’t underestimate the impact of small, yet significant, acts of courage.

Micro acts of courage — seemingly small-scale acts that have incremental impacts over time and long-term returns — are key to unlocking a courageous mindset. As Su-Mei Thompson, CEO of Media Trust, shared: “It is not just about taking a few big risks but about pushing yourself each day to get outside of your comfort zone.”

Early in her career at Unilever, Leena Nair often found herself in rooms with few other women, where it felt intimidating to speak up. She came up with a method to encourage her own micro acts of courage. “I used to have a little book in which every time I spoke up, I would draw a star,” she told me during our discussion at the Global Unilever Headquarters in London. “If I opened my mouth five times, then I would draw five stars. If I made a point that really resonated, I gave myself double stars. By doing this, I kept myself accountable.” These micro acts led to long-term rewards — Nair rose to become the first female, first Asian, and youngest-ever CHRO of Unilever, and then went on to become CEO of Chanel.

Courage begets courage. It’s a muscle that gets stronger each time you use it, no matter how small the act.

Practice courageous acts in all areas of your life.

Nervous to start in your working environment? Start with courageous acts outside work. Courage is a transferable mindset that then permeates all aspects of your life.

One woman with whom I worked made a goal of going on a dinner or date or lunch with someone new every week so that she could expand her friendships and dating prospects in a new city, while becoming more connected. Others will go out of their comfort zone and join a gym or fitness class that they previously would have shied away from. Others started saying no more often and protecting time for themselves, rather than trying to please others.

DEI executive Karen Brown shared that she pushes herself outside of her comfort zone in her personal life by “constantly stretching myself to learn, especially that which is unfamiliar to me. This could range from traveling to countries with cultures that are completely opposite of what I’m accustomed to, attending an event, listening to and/or reading content outside my area of expertise.”

Try again tomorrow.

A strategy used by Dr. Elizabeth O’Day, who founded Olaris, Inc., a precision diagnostics company working to change how diseases are treated, is to continue to make a daily commitment to going beyond her comfort zone, even when met with resistance. Now in her 30s, O’Day serves as the company’s CEO, co-chairs the World Economic Forum’s Global Future Council on Biotechnology, and is a member of Scientific American’s steering committee for the publication’s “Top 10 Emerging Technologies.” However, her impressive résumé doesn’t tell the full story of the challenges she has overcome.

“Every day as a young female scientist CEO in biotech, there are challenges, and it takes a lot of courage to face these challenges,” she said. When her company was in the startup phase, O’Day often faced investors who would ask “ridiculous or sometimes insulting” questions, and even challenge her expertise and achievements. “Every time that I was asked to derive mathematical equations or list a dozen metabolic pathways and their links to disease, I would do it without error. Yet, rarely did it translate into the investment that I was seeing male counterparts with far less data or degrees receive.” O’Day’s experience tracks with the numerous studies showing that women receive more scrutiny, including doubt-generating statements, than their male counterparts.

Does O’Day always feel confident? No. As she shares, “I often remember the quote by Mary Anne Radmacher, ‘Courage does not always roar. Sometimes courage is the quiet voice at the end of the day saying, I will try again tomorrow.’”
. . .

As Anaïs Nin, a twentieth-century French-Cuban-American diarist and writer, said: “Life shrinks or expands in proportion to one’s courage.” Your career is no different. It’s time to refocus your efforts from seeking an elusive feeling of confidence to taking decisive action with courage.

About the author: 

Christie Hunter Arscott is an award-winning advisor, speaker, and author of the book Begin Boldly: How Women Can Reimagine Risk, Embrace Uncertainty, and Launch A Brilliant Career. A Rhodes Scholar, Christie has been named by Thinkers50 as one of the top management thinkers likely to shape the future of business.
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Saturday, December 31, 2022

9 Lessons to Learn From Being in the Entrepreneurial Trenches

Our biggest tips for entrepreneurs on what's worked and what hasn't in our first five years.


By Kyle Hermans

Source: https://tinyurl.com/4u785kyd

Once upon a time, my wife Jenna and I and our three kids under ten moved from San Francisco to Los Angeles, had another baby, and bought our first house together. This, we thought, is the perfect time to quit our jobs and start a business! [eyeroll]

The idea of our company, Be Courageous, was born during the facilitation of a client session when the team was at odds with each other while exploring the future of their business. This quote from George Prince was on the wall: "Another word for creativity is courage."

I realized many of us stay trapped in old thinking and actions when we lack the conditions to be creative and courageous.

A question emerged for me, "What would a world with an abundance of courage look like? How can I help create it?"

With my experience in marketing, strategy and facilitation, and Jenna's in psychology, human resources and operations, we founded our business consultancy, Be Courageous. Every year we've grown. Every year our impact has expanded. Every year we've learned.

Here are some of our biggest learnings for those of you on your entrepreneurial journey.

9 lessons from five years of learning

As any reader here knows, starting and running a business is a piece of cake. Ha!

For real, here is what we learned, having grown our U.S. business of two to a worldwide organization with dozens of clients and 35+ network partners while positively impacting nearly 1 million people in 82 countries.

1. Agility

One of our most in-demand programs with Fortune 500 companies this year has been our training on agile leadership. When you own your own business — the unexpected will happen. A successful entrepreneur adapts to new challenges and situations and creates lemonade from lemons.

We have created programs we never thought we would in response to what the world has needed from us.

Have a solid plan, but be flexible.

2. Purpose

We aim to activate courage in companies worldwide and align them with a planet-beneficial future. Yours might be to improve humanity's mental health or lessen people's stress by building an easier-to-use product. Whatever your purpose is, make sure you're deeply passionate about it and that it fuels your actions.

Use the strength of your purpose to courage through challenges.

3. Superpowers (and kryptonite)

We found more success when we identified and focused on our greatest strengths. We aligned our strengths with our values and the services we wanted to provide to our clients to solve a problem they faced.

For example, my superpower is guiding businesses to realize their potential and future. My kryptonite is getting tripped up in the micro-details of spreadsheets. That's where Jenna comes in. She leads operations with her superpower of keeping our company financially stable, growing and on the ground. I'm the visionary, and she makes it possible.

Align your superpowers with your business goals and values. Find people who have superpowers you lack.

4. Curiosity

In an exponentially-changing world, having an open mind is the key to running a successful business. Be curious about skills you don't have and new ways to solve problems. Challenges will arise, but if your curiosity remains peaked, you'll always get to the solution positively. Ask, "What is the courage needed in this situation?"

Curiosity may have killed the cat, but it feeds company growth. (We're a dog company, anyway, no offense to cats.)

5. Healthy company culture


Create a team that feels safe, strong, empowered and able to share and receive ideas. When you foster personal connections with your team and your clients (yes, business is personal), you will thrive beyond competitors who are only in it for the buck.

Develop a positive company culture to unlock the full potential of your team.

6. Operational foundation

While you don't want to get bogged down in systems and processes, your business won't thrive without a solid operational foundation. Get an understanding of legal, financial and team infrastructure.

Stay pragmatic and, as we like to say, "aggressively conservative." We make leaps, but only with a net.

Develop systems to streamline your business, so you can focus on serving your customers.

7. Integrity

Many people make empty promises, which erodes trust over time. It's far better to over-deliver on your word. Pay what you say you will, earlier than you say you will. We've established deep, trusting relationships with our clients. We foster community.

We get callbacks five years after doing one program with a client because we don't burn bridges; we build them.

Show up with your heart, don't be a jerk, and honor your word.

8. Optimism

Never doubt what you can achieve, yet don't be disillusioned. Approach everyone you can as a holistic human being, putting aside bias. Presume positive intent and look for positive solutions. Expect people to be their best until proven otherwise. And even then, be graceful about terminating any relationships.

Work and live from a place of abundance, not scarcity.

9. Mindful hiring

Be thoughtful about who you bring into your organization.

We hire a type of person — not only for the exact level of expertise we need. We hire people in love with our vision. A person who can be adaptive and learn with us. Who is willing to put in the work for a shared purpose.

Hire the right puzzle piece for your vision, not just how they look on paper.

Bottom line

Owning your own business isn't for the faint of heart. It's an ebb and flow of successes and learnings. But 20 years from now, if you look back, would you regret not doing something about your big and burning idea?

Fear will never go away, but when the desire to fulfill your purpose outweighs the fear of risks involved, that's when you know you're made to be an entrepreneur.

Friday, December 9, 2022

Deciding What Kind of Business to Start? Here's a Simple Approach Every Entrepreneur Can Follow

Deciding what kind of business to start begins with defining success, and then considering the role of variance.

Written by: BY JEFF HADEN, CONTRIBUTING EDITOR, INC.@JEFF_HADEN

Photo: Getty Images

While there are countless ways to decide what kind of business to start, for the sake of argument let's imagine there are two basic approaches:

Low variance. Decide to do what other people have successfully done, and with hard work and perseverance you should reach the 80th percentile of success in that pursuit, if only because most people don't work nearly as hard, or as smart, as they like to think.

An example of the low variance path -- lower risk, but lower return -- is a person with solid carpentry skills who decides to go into the deck building business. Lots of customers need decks. Then again, plenty of construction small business owners build decks. Choose that route, and with time and effort you might not get rich... but the odds are good you can make a decent living.

High variance. Think of this as the outlier path. Choose to do what few people have successfully done, and you might -- just might -- become extraordinarily successful. (And rich, if that's your goal.)

Mark Zuckerberg is a good example of the high variance path. Instead of taking a low variance approach and, say, starting a web design business, he launched a new and unproven venture. The odds of success in that high variance approach were naturally extremely low, but in his case the upside turned out to be astronomically high.

Sounds great.

At least for the Zuckster.

Starting a Business With High Variance


The Facebook founder isn't just a high variance outlier. He's also a good example of survivor bias, focusing on people or things that "survived" while overlooking those that did not.

Take Ryan Gosling. He dropped out of high school when he was 17 and moved to L.A. to pursue acting. It worked spectacularly well for him, but what about the thousands of kids who drop out and move to southern California in hopes of making it? Do they all become movie stars?

Of course not.

But you never hear about them.

The same is true for Steve Jobs. Jobs dropped out of Reed College so he could "drop in" on classes that interested him. It worked for the Apple co-founder. (Maybe not so well for this forgotten Apple co-founder who arguably left $75 billion on the table.) But what about the countless people who don't finish college? Do they all become billionaires?

Of course not.

But you never hear about them.

That's why Michael Shermer, the author and publisher of Skeptic magazine, says advice on high variance success distorts perceptions by ignoring all the businesses and college dropouts who failed. And why university of Waterloo professor Larry Smith says, referring to Jobs:

And what about 'John Henry' and the 420,000 other people who tried ventures and failed? It's a classic case of survivor bias.

We make judgments about what we should do based on the people who survived, totally ignoring all the guidance from the people who failed.

The problem with survivor bias is that it doesn't really indicate whether a particular strategy, or technique, or plan will work -- and specially whether it will work for you.

Take the high variance approach by basing your plans -- or your expectations of success -- on a blueprint that worked for an outlier, and the potential outcome may be extraordinarily high. But so will your level of risk.

That's neither a bad nor good thing.

But it is definitely a factor you should consider.

Starting a Business With Low Variance

The flip side is choosing a route with low variance. As Nassim Taleb writes in Fooled by Randomness, "Wild success is attributable to variance. Mild success can be explained by skills and labor."

Keep in mind "mild success" can still be considerable. Say your interest lies in healthcare. The high variance approach would be to launch a startup based on a new wearable device: The odds are low it will capture the market, but if it does... yeah.

The low variance approach could be to go to med school. With time, study, and hard work, you could become a skilled physician. While the upside isn't unlimited, it's still pretty great, especially if you someday scratch your latent entrepreneurial itch and launch your own practice.

To evaluate the odds of success, Taleb advises considering "alternative histories." If you could relive a set of events 1,000 times, what would the range of outcomes be? In a high variance approach -- becoming Steve Jobs, Ryan Gosling, Joe Kudla, or Kirk Hammett -- the odds are (maybe) 1 in 1,000.

In a low variance approach -- say, starting a deck-building business -- the odds are likely considerably better than even. Assuming your level of effort and perseverance remain constant, you'll probably have about the same level of success, and make the same amount of money, 700 or 800 times out of 1,000.

Randomness -- or luck -- won't play much of a role.

And that's an important point, because luck always plays a role in extraordinary success. While if you out-work, out-think, out-skill, and outlast other people you are much more likely to be successful, research shows you also need to get lucky.

Right place, right time. Or right person, right time. Or right idea, right market, or right audience. As Mark Cuban says, "To make billions, you'll have to get lucky."

Bottom line? The lower the variance, the smaller the role luck is likely to play in your success.

Starting a Business Means First Defining "Success"


As you consider which business to start -- or which career path to take -- first decide what "success" means to you. If you want to make a decent living doing something you love, consider a low variance approach; choose a path where effort and skill tends to pay off directly.

If you want to get rich, you'll need to choose a path where effort and skill matter, but so does luck. While survivor bias -- and hindsight bias -- appears to explain success, no path, no plan, and no strategy is ever certain. Success in that case will only seem inevitable in hindsight. "Wild" success will always be at least somewhat random.

But keep in mind that where success is concerned, "mild" is relative. Start a deck building business with one or two employees, and your upside is largely constrained by the hours you work. Build that business by adding services, crews, and locations, and your "mild" success can become considerable.

Which leads to an even more important point. When you're deciding what kind of business to start, variance matters.

But the most important factor is whether you will get to do work you enjoy: Work that leaves you feeling fulfilled, and satisfied, and happy, and that allows you to control, as best possible, your own destiny.

The beauty of starting a business is that you are free to choose what kind business. Make sure you design and build your business not just on a potential outcome, but also on the process of achieving that outcome.

Then, no matter whether the outcome is mild or wild, you'll still be successful.

Because you will be doing what you love to do.

Wednesday, December 7, 2022

What's the Difference Between a Startup and a Small Business?


Source: https://tinyurl.com/4p4zuuwe

By Erica Dushey Sarway

December 1, 2022

While they sound similar, there are fundamental differences.

Opinions expressed by Entrepreneur contributors are their own.


People often confuse startup companies with small businesses. Sure they sound similar, but the two have fundamentally different meanings and cannot be used interchangeably. They can sound alike because startups are new companies. But while they may begin as tiny in size, their goals and intentions may end up separating them from actual small businesses.

What's a startup?

It is a new company looking to quickly expand into a much larger and much more profitable business. Many times, a startup is looking to build up rapidly in a very short span of time. They're in the beginning stages, experimenting with different models and finding what works best for them to grow while outlining their future. They're finding ways to raise money and enlist backers to help them move their company up to the next level. It's almost as if they're rushing through the stages of growth, from a small enterprise, with few employees, to a larger corporation in a matter of a few years.

Startups are businesses that believe their product or service is in high demand due to analytics and has a lot of potential for disrupting the market. These companies hope that their product is going to see rapid success and become a fixture. They often are looking for investors like venture capitalists or raising money by crowdfunding to invest in the idea and get the company off the ground as soon as possible. From the early stages, the mission, goals, strategy and research need to be defined to anticipate the quick changes the company will endure.

When people think of startups, many think of tech companies and Silicon Valley. While it's true many startups emerge from that area of California, any person with an idea can start a company in their home and grow it from there. Some of the biggest and most well-known companies began as startups and are now publicly traded, including Apple, Microsoft and, more recently, Instacart along with GoPuff.

However, a major downside to startups is the high risk of failure. Many of them crash and burn within a few years of starting due to some reasons like lack of organization, inability to market correctly or running out of investment capital. From the beginning, everything from business plans and models to goals to strategies all needs to be clearly sorted. Long-term goals, shares and equity all need to be defined, key employees must be hired and financial backing needs to be secured.

What's a small business?


It is exactly what the name suggests. They are privately held companies, partnerships or sole proprietorships. Being a small business is based on the amount of revenue brought in and the number of employees. While the government considers companies with up to 1,500 employees to be small businesses, most of them have fewer than twenty. The Small Business Association (SBA) clearly defines everything needed to qualify as a small business.

[It is also worth noting that a recent survey, conducted by SurePayroll, of over 2000 taxpaying Americans found that a whopping 70% of those polled claimed they would skip a nearby chain and trek an average of eight additional miles to support their favorite local and independent business.]

A key element to small businesses is that they are not looking to dominate their market. They are companies that are independently owned and operated, most times selling to the local town while trying to maintain a stable income. There is much less risk of failure with a small business, making them sustainable for the long run.

A startup is looking to expand quickly and become a much bigger company, while a small business is more focused on creating and maintaining a constant and stable revenue stream. They are not necessarily trying to scale up in any way. A startup can eventually go on to become a publicly traded company, raising money from selling shares and scaling up in any way they see fit. Whereas small businesses start and remain privately held with the goal of sustaining while generating profits for as long as possible. Many times small businesses are passed down through families and remain active for generations.

It is also worth noting that a recent survey conducted by SurePayroll of over 2000 taxpaying Americans found that a whopping 70% claimed they would skip a nearby chain and trek an average of eight additional miles to support their favorite local and independent business.

Both types of projects start with a person and an idea. Depending on how said individual decides to go about the goal will determine the type of company they are. If they are looking to take their idea, shake up the industry, become a leader and be willing to take a risk? They're going to be following the startup track. If they want to keep their business small and local but big enough that it's a good source of income while staying at the same level? Then a small business is the way to go.

Tuesday, September 20, 2022

Making Something From Nothing: James R Langabeer Of Yellowstone Research On How To Go From Idea To Launch

Source: https://tinyurl.com/mrrpr6ap

Written by: Fotis Georgiadis

An Interview With Fotis Georgiadis


I wish somebody would have told me was that it just isn’t as fun as you think to be your own boss! You have nobody to blame, or go to for help. Try to find a mentor, or somebody that’s more experienced than you in a similar business or venture. Ask for their help — and take their advice!


As a part of our series called “Making Something From Nothing”, I had the pleasure of interviewing James Langabeer.

James R. Langabeer, PhD is a management strategist, entrepreneur, and professor. He has founded or led several successful companies, including a healthcare information technology company and a business intelligence software firm. He has also developed several large-scale community initiatives and programs as an endowed professor at UTHealth Houston. James is best known for his expertise on management decision-making and founded Yellowstone Research, LLC to provide strategy consulting for leaders in healthcare, supply chain, and consumer goods firms. He was named a finalist for the 2022 Success Magazine most influential leader award, and his writing has been published in Forbes, Psychology Today, and over 125 academic journals. His latest book is The Quest for Wealth: Six Steps for Making Mindful Money Choices (Routledge Press, 2022).

Thank you so much for doing this with us! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a bit about your “childhood backstory”?

Iwas very fortunate to have been born overseas in Tokyo Japan, the middle child of an Air Force officer/Certified Public Accountant, and a loving and energetic mother. They were both from the heart of the Midwest in Peoria, Illinois. We moved around quite a bit, which showed me that growth in life is fed by new opportunities and new scenery. We shouldn’t get complacent, or remain in one place, literally or figuratively, too long. With a military family, you learn a lot about discipline, and I was also taught the importance of money and how to make solid conservative financial choices. Our parents constantly tried to model how important it was to exercise leadership, whether in your work or personal life. I tried to lead, travel, and take advantage of as many opportunities as I could to keep moving forward.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

One thing my father used to always goes something like “a coward dies a thousand deaths, a hero only one.” He encouraged us to take chances, get out there, and do something despite potential consequences. He wasn’t afraid of much, and “action” was always preferable to inaction. I’ve been lucky because I believe that risk-taking is essential for innovation and entrepreneurship, so those early lessons have helped me immensely with my ability to get things done.

Is there a particular book, podcast, or film that significantly impacted you? Can you share a story or explain why it resonated with you so much?

I loved the short story “The Secret Life of Walter Mitty” by James Thurber. We read it in high school I believe, and then much later I saw the film version with Ben Stiller. The story made a lasting impression on me. At its core, I believe it is about the difference between dreamers and doers. There are some people who wish they had a better, more exciting, heroic life. And others who go out there and are brave and courageous. Most importantly, it shows that you can go out there and change your life, and make it all come true.

Also, I read in business school the book “Zen and the Art of Motorcycle Maintenance” by Robert Pirsig. I don’t remember much of it, but what stuck with me was the idea that you can be actually grounded in daily rational thinking (about consequences, the future, planning) yet still be present in the moment. That there can be a balance between being analytical and still be mindful. I think that’s really important for us, since we tend to think of things in extremes rather than harmony, and prefer one way over another. Since I focus on how people make big (strategic) choices, I like to know that you can be congruent between these perspectives.

Ok super. Let’s now shift to the main part of our discussion. There is no shortage of good ideas out there. Many people have good ideas all the time. But people seem to struggle in taking a good idea and translating it into an actual business. Can you share a few ideas from your experience about how to overcome this challenge?


I think this is completely correct. So many people think they have ‘killer ideas’, but don’t act on them. Some times, these are just re-do’s of what is already out there. But in other cases, people have really good ideas, but can’t figure out the first few steps. It’s really rare to find somebody with a good idea, that can actually pull it off. That’s why entrepreneurs who can get an idea to the commercialization phase are fairly rare. When I’m advising young entrepreneurs, the first thing I always ask them to do is to make a few notes, briefly detailing these points:
  • What’s the core concept?
  • Why does this inspire you?
  • Why is this unique?
  • What business problem or need does this solve, and for whom specifically?
  • Why are you the right person to tackle it?
  • How might this be monetized?
These just need to be a sentence or two for each point. I don’t recommend a detailed business plan at first. Details in a traditional business plan just bog people down in a writing exercise and make you think about the “practical” matters. Not having answers at first, is what you have to get comfortable with! So don’t worry about all details at first, try to remain conceptual. We tend to go right into the details, and gloss over the most important aspects. This creates too much focus on the wrong components of planning, which are virtually unknowable at this point. I see people worrying about their pricing strategy (how much to charge) when they really don’t even know who they are solving a problem for. These details will all come later, but first, start with the concept and the innovation.

Often when people think of a new idea, they dismiss it saying someone else must have thought of it before. How would you recommend that someone go about researching whether or not their idea has already been created?

People often dismiss their own abilities and their own originality. I think it’s because people are thinking about ideas for things in the wrong way. Even an incrementally better service, product, or even process enhancement can all be ideas that can be innovated. It’s not necessarily just one ‘big thing’. The best way to really know if this is a unique idea is to more carefully explore it. Write down the answers to the conceptual questions earlier. Try asking a few people what they think of this idea, especially those people who might have the need for the product or service you are thinking about. Then, as we all do, “Google it”. See what exists that is out on the public domains. I wouldn’t worry about a patent or trademark or legal matters at this stage — start by asking questions and doing some basic research.

For the benefit of our readers, can you outline the steps one has to go through, from when they think of the idea, until it finally lands in a customer’s hands? In particular, we’d love to hear about how to file a patent, how to source a good manufacturer, and how to find a retailer to distribute it.


Even before this, let’s talk about what’s most important — developing your ‘story’ about this big idea. You want to work on creating a compelling pitch that will seize people’s interest immediately, yet not too much where you lose them. Think of a 15 or 30 second pitch around your vision. Don’t try to confuse people. Simplify as much as possible, as if you’re talking to somebody who knows nothing about this! That is the most important thing — simplify your ideas, and what it could mean for them or others. Give people a reason to be excited and wanting to hear more.

Then, you’ll need to work through the mechanics. You have to have a solid grasp of competitive intelligence — who are the competitors in this area. Not only other companies but competing products that might fill the same need. What are the gaps today? You want to end up with an idea of the size of the market potential. What is the opportunity? What is the up-side?

Once you have this, people should get some validation on their ideas. You tossed the idea around to a few people earlier, but now you need to get serious with some research. A/B testing is a good way to try to see what potential customers might prefer, if you can narrow things down. Surveys, interviews, or small focus groups might help provide insight. Before investing a lot of your personal money, or that of an investor, validate that this makes sense to potential real customers.

Then think through what you need to make this happen from a value-chain perspective: Do you need to manufacture a product? Open a retail location? What suppliers would you need? What are the start-up to do this in the beginning, and and ongoing costs once fully scaled? What would a team or organization look like for this? This is the heart of the financial projections you’ll need to consider.

With all this information, you should be able to now create a revenue model. Think of a small pilot to deploy this, and always build in a lot more time than you think you need to get something out there. In my projections, I usually expect zero revenue for many months, and only expenses. You’ll need to make sure you have at least 6–12 months of expected expenses saved to get going. This is where you might need to consider financial alternatives: self-funded, angel investors, venture capital, or debt (loans).

See how easy it is to get mired down in details? There is a lot to plan. So take it one step at a time!


What are your “5 Things I Wish Someone Told Me When I First Started Leading My Company” and why?

The first thing I wish somebody would have told me was that it just isn’t as fun as you think to be your own boss! You have nobody to blame, or go to for help. Try to find a mentor, or somebody that’s more experienced than you in a similar business or venture. Ask for their help — and take their advice!

Second, I’d say to others don’t sweat all the details too early on. You just get too overwhelmed. At the same time, I wish I would have thought through financial alternatives earlier too. You might reach a point of financial ‘vulnerability’ or even desperation, where you think of don’t have any alternatives. I have found myself taking funding from companies that probably weren’t in the best interest, but I thought I had no other choices at the time. Strategic planning can help you prepare for these times!

I also think I under-estimated the value of a solid team at start-up. Whiel everything starts and stops with you, it’s not just about you anymore. It has to be about finding partners and employees that share your vision and can take it to the next level. When I started up a healthcare information organization, I brought in a few people immediately that could absorb the vision, and create passion and energy. This is essential to the first year of a new venture.

I sometimes wish I wasn’t always so frugal. For instance, now I know that spending money on outside consultants can be useful. I often find myself thinking through things by myself and probably didn’t reach the best option. If I would have spent a little money on an independent management consultant or market research firm, they could have played a more active role in helping me do the research, simulate alternatives, and come up with a better path forward. I strongly recommend the use of a consultant to help go through these steps from idea to implementation.

Lastly, I wish I had thought through this important question a little more closely: “what does success look like”. We get worked up with a few things, such as customer counts, or dollar volumes of sales. Yet, these aren’t the best indicators for most companies. Entrepreneurs often want to create a product and become rich, successful, or well-known — or just create a useful product or service. But articulating that a lot more clearly, with detailed performance indicators and specific goals, could help you gauge success better.

Let’s imagine that a reader reading this interview has an idea for a product that they would like to invent. What are the first few steps that you would recommend that they take?

The very first step is to be able to articulate the vision into a story. Work on refining the message so well that you can literally tell people what it is, what it does, and why they need it without seeing them yawn or turn away. This crafting of a compelling, yet concise, story is what successful entrepreneurs master. Think about your role this way:
  • Messaging. You own the story, the brand, and the vision.
  • Master Planning. The most important choices are yours to make. Develop and maintain a strategy blueprint.
  • Mobilizing. You have to think about your leadership team, resources, partners, and suppliers. These are all vital to early-stage success.
  • Momentum. Focus your energy on maintaining momentum and moving toward your 1, 3, and 5-year goals.
There are many invention development consultants. Would you recommend that a person with a new idea hire such a consultant, or should they try to strike out on their own?

No, not an invention development consultant. But, I would definitely consider using an independent consultant for helping do some of the initial research and providing advice on markets and competitors. You must own the vision the concept, but you can use a consultant to gather the intelligence and the research to create prototypes. Use a consultant to help you with revenue or cost projections. Or, use them to help work on validation and implementation. They can be worth their weight in gold, and allow you bandwidth to focus on what really matters — your message and momentum-building.

What are your thoughts about bootstrapping vs looking for venture capital? What is the best way to decide if you should do either one?

There are some advantages to both. Generally, for most people, I recommend using your own resources for as long as possible. You’ll hold on to more of your “sweat-equity” and future profits. But this can also limit growth considerably. For some types of companies, such as information systems or those requiring significant capital expenditures, it might be necessary to consider outside investors, such as venture capital firms (VC). VC funding can be great and can help the company sustain years of losses since they aren’t always focused on short-term profitability. I’ve gone through multiple rounds of funding, and each time, you lose a little bit more of your ownership. So make sure the growth of the firm outweighs this ownership devaluation. It’s a hard choice to make. In the end, do the one you feel most comfortable with and can sleep best with. If you go the VC route, make sure you do all the due diligence to find the right partner, future board member, and advisor. That relationship is key to your growth and success.

Ok. We are nearly done. Here are our final questions. How have you used your success to make the world a better place?

To me the most important societal areas we have to address with bold ideas are around mental health, homelessness, climate changes, substance use, and immigration. I have tried to create a few programs to address a few of these, but so much more is needed. One really successful project I have created is helping those who are struggling with substance use and mental health disorders, especially opioids. One of these programs, the Houston Emergency Opioid Engagement System (or HEROES) helps provide free integrated treatment and recovery services for people struggling with substance use disorders in Texas. We’ve helped re-build thousands of lives for individuals and their families. As with any initiative, I think it’s important to define a future state that is better than where you are, and do something rather than nothing. We need innovators in these areas, and I applaud the work of people like the Gates Foundation who are using their resources to combat important social issues.

You are an inspiration to a great many people. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.

As somebody who is highly vested in the technology world, I’d have to controversially say that we need a better way to manage mobile technology has taken over our life. We need some kind of controls over how phones and technology are dominating our brains! We need better mental health interventions that can help reduce loneliness and suicide rates. I think mobile technology is one area which can be improved significantly.

We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US, with whom you would love to have a private breakfast or lunch, and why? He or she might just see this if we tag them.

Being a big fan of great leaders and brand-builders, I would love to meet Oprah Winfrey. She’s so smart, always well prepared, and seems to know everything! Everything she touches turns to gold it seems, from her magazine, books, films, podcasts, and other business ventures. She is a terrific role model!

Thank you for these fantastic insights. We greatly appreciate the time you spent on this.

Addressing Disparities in Finance for Hispanics and Latinos


By: Vianessa Castaños |



 
One of the most significant social issues facing Latinos in America is the myriad obstacles preventing them from building a secure financial future. These financial disparities begin with high-interest lending services, insufficient credit history and higher than average student loan debt, among other factors.

The effects of these disparities appear in the demographics of rental and homeownership rates in many areas. While the homeownership rate among Hispanics increased by 47.5% since 2019, many younger Latinos find that their path to homeownership and financial security are hindered by monthly student loan repayments, which in turn prevents many of them from being able to build up their savings. Meanwhile, other more vulnerable members of the Latino community, such as immigrants and non-native English speakers, face challenges with predatory lending practices and unfavorable financing options.

5 Financial Barriers and Solutions

There are a number of obstacles that prevent the Hispanic and Latino community from being able to grow their savings and achieve their financial goals. Learning to save, predatory lending practices and poor or insufficient credit history are just some of the major barriers that prevent the community from reaching financial stability. And when each of these factors compound, many find themselves in a situation where they are unable to invest their money and create generational wealth.

1. Learning How to Save and Make Investments

Many Latino immigrants are unbanked, meaning that they don’t rely on financial institutions to deposit and save money. This practice stems from a lack of distrust in the financial institutions in their home countries, coupled with a lack of financial education in general. It’s also common for individuals to put their funds toward caring for family members or supporting their children through school rather than saving for their own retirement. And while many Latinos are responsible with their finances, they lack money mentors within their communities who can teach them how to properly plan for retirement or provide guidance on making financial investments.

BEST OPTIONS TO MANAGE SAVING AND INVESTING


If available, take advantage of your employer-sponsored 401(k) or brokerage account. Also, consider an additional savings vehicle, such as an individual retirement account (IRA), Roth IRA or certificate of deposit (CD), which is a type of low-risk federally insured savings account.

2. Predatory Lending Practices

The Hispanic and Latino community can often have limited access to financial literacy materials, which means the community can be left without the tools necessary to manage finances and build up savings. Limited access to resources coupled with the potential financial implications of maintaining a commercial bank account can push individuals to rely on predatory alternative financial services that may be mortgage scams, which can charge upwards of 400% APR. In 2017, people who relied on alternative financial services such as payday loans, check cashing services and rent-to-own stores ended up spending more than $173 billion in fees and interest charges.

BEST OPTIONS TO MANAGE PREDATORY LENDING PRACTICES

Whenever possible, seek out a commercial banking institution and avoid or limit the use of products that do not actually help you build your credit, such as prepaid credit cards. While you may think that you are banking with an accredited institution, many alternative “banking” entities charge above-average interest rates. They may not carry insurance, thereby putting your investment at risk while at the same time doing nothing to help build your credit-worthiness.

Juntos Avanzamos works with a network of 108 credit unions in 26 states that serve to empower Hispanic and immigrant communities. These credit unions will work with you to open a checking or savings account and establish your credit, even if you don’t have a social security number.

3. Limited Access to Credit and Low Credit Scores

The median FICO credit score for Hispanics was 684 in 2018. Compare that to 742 for non-Hispanic whites and 722 for the overall population. You can get a picture of the discrepancy between each demographic. These lower credit scores can be attributed to limited access to credit-building opportunities as well as limited knowledge and access to information on how to build and maintain a healthy credit score. And because credit-worthiness is taken into account when qualifying for loans and mortgages, aspiring Hispanic homeowners can often find their options for financing a new home limited, or they are unable to secure a conventional home loan or down payment altogether.

BEST OPTIONS TO MANAGE LIMITED ACCESS TO CREDIT AND LOW CREDIT SCORES


The first step to improving your credit score is getting a copy of your credit reports from the three nationwide credit reporting companies — Equifax, Experian and TransUnion. You can easily do this by using an online credit report, like a credit report from Central Source LLC, which grants you access to all three credit reports for free once a year. By knowing your credit score isn’t enough, you’ll also want to understand what that score means, which is where the list of consumer reporting companies from the Consumer Financial Protection Bureau can help. The website offers a broad range of financial education materials in nine languages on topics ranging from how to rebuild your credit to how to get a home loan, all available for free.

4. High Cost of Buying a Home Relative to Income

Because Hispanic populations tend to be more concentrated in high-cost markets, the homes Hispanic and Latinos buy are valued at lower than median market rates. But they are more expensive overall relative to their income level. While the majority of Hispanics finance their homes through traditional methods, they disproportionately have to rely on FHA insured mortgage loans. These loans often end up being costlier and can negatively impact lifetime wealth-building potential. Another instance in which Hispanics and Latinos can find themselves in a high-cost market is due to gentrification. Real estate appreciation can often lead to displacement and sees many families priced out of their own communities. Gentrification drives up housing costs and demand for low wage workers, who then, in turn, cannot afford to buy homes in their very communities.

BEST OPTIONS TO MANAGE HIGH COST OF BUYING A HOME RELATIVE TO INCOME


Down payment assistance programs exist to help homebuyers find loans and grants that can help drive down the cost of your potential down payment. These programs are typically meant for first-time homebuyers, but depending on the program, some exceptions can be made. You can also contact local community organizations in your state to inquire about homebuyer education programs that can teach you what to expect when buying a home — from how to select a mortgage to how to negotiate the selling price.

5. Student Loan Debt

Many Latinos are first-generation college students who are left to navigate higher education costs without much guidance. And while there are options for financial aid for Hispanic students available, 72% of Latino students take on student loan debt in order to attend university. In fact, 12 years after starting college, the median Latino student borrower still owes 83% of their initial loan. This debt affects their ability to save money well into adulthood, which is further compounded when they become delinquent or default on payments.

BEST OPTIONS TO MANAGE STUDENT LOAN DEBT


This financial literacy handbook is a great place to start learning about managing your money and navigating major expenses. Also, check out The Hispanic Center for Financial Excellence — it offers free financial education services and can teach you how to reduce your debt and develop a savings strategy.

Expert Insight on Navigating Financial Constraints

What are your own observations about the financial disparities within the Latino/Hispanic community? Why do you think these disparities exist?
Student loan debt is seen as a major barrier to financial security for many. Can you offer any advice on how to tackle (or avoid) student loans?
What are some tips to start saving and develop a strong relationship with money for Hispanics and Latino?
What are the best ways for Hispanics and Latino to get educated on finances? Are there any specific resources you recommend?

Financial Resources for the Hispanic and Latino Community


There are many resources available to help in your journey to financial success. From debt management programs to scholarships and mortgage financing assistance, these organizations and programs can help you get ahead.


Financial Services and Programs

Latino Educational Fund: LEF’s financial literacy courses provide Latinos with the knowledge they need to make informed decisions about their futures and their families’ futures related to banking, credit, bankruptcy and mortgage lending.
Fuente Credito: Fuente Credito, a small-dollar credit pilot program coordinated by UnidosUS, facilitates access to affordable loans. It offers an online credit application designed to provide fast and personalized options for immigrants who need assistance in financing immigration fees related to Deferred Action for Childhood Arrivals (DACA), citizenship or other legal services.
FDIC Money Smart: Money Smart offers a Spanish-language financial education program to help individuals improve their financial health.
Free Financial Literacy Course: This six- to 10-hour course from Alison concentrates on the basics of personal finance. From budgeting and saving to debt management and retirement planning, this class aims to improve your overall financial literacy to ensure you can manage your today and plan for tomorrow.

Technical Tools, Apps and Assistance

Mortgage Calculator: MoneyGeek’s simple and free mortgage calculator helps you estimate your monthly mortgage payment with the principal and interest components, property taxes, homeowner’s insurance and HOA fees. Once you input the numbers, you’ll see a detailed mortgage payment schedule.
Mission Asset Fund: MAF offers loans to help individuals cover their immigration expenses; part of the process includes a financial education course. You can download their app to track your progress, review your loan and track your payment history and credit score.
Mint: Mint is a budget tracker and planner that helps you easily manage your finances. One feature that makes this app so appealing is that it allows you to track your credit score for free.

Professional Organizations

Association of Latino Professionals in Finance and Accounting (ALPFA): The ALPFA provides professional development and career-building opportunities for Latinos. They partner with several educational institutions to help educate Latino leaders in finance.
Hispanic Heritage Foundation: The White House founded the Hispanic Heritage Foundation in 1987. It offers a series of free podcasts and videos focused on money management, debt management and wealth mindset, along with programs to promote leadership and education within the Hispanic community.
Congressional Hispanic Caucus Institute (CHCI): CHCI provides leadership, public service and policy experiences to Latino students and young professionals.
American Society of Hispanic Economists: This professional association of economists is focused on addressing the under-representation of Hispanic Americans in the economics profession. Its work centers on researching policy and economic issues affecting Hispanics in the U.S.
National Organization for Hispanic Real Estate Professionals (NAHREP): The NAHREP work to champion homeownership in the Hispanic community. They are advisers and advocates who are available to help Hispanic families create generational wealth.
United States Hispanic Chamber of Commerce (USHCC): The USHCC promotes the economic growth and development of Hispanic businesses. It provides support to small and minority-owned businesses.
The Hispanic Institute: The Hispanic Institute manages several ongoing projects, including the study of Hispanic economic contributions, media monitoring, consumer fraud protection, citizenship education and technology and telecommunication research.
New America Alliance: This organization of American Latino business leaders promotes the Latino community's economic advancement, focusing on economic and political empowerment and public advocacy to improve the quality of life in the United States.

Advocacy Organizations

UnidosUS: Formerly known as NCLR, Unidos serves the Latino community through nearly 300 affiliates throughout the country. It provides advocacy in civic engagement, civil rights and immigration, education, workforce and the economy, health and housing.
Mission of the League of United Latin American Citizens (LULAC): LULAC is to advance the economic condition, educational attainment, political influence, housing, health and civil rights of the Hispanic population of the United States.
Hispanic Federation (HF): Established in 1990, HF is a nonprofit organization to support the Hispanic community, families and institutions. Its work includes education, health, immigration, civic engagement, finances and the environment. HF offers advocacy services, community assistance programs and capacity-building opportunities.

Community Support Groups

Healthy Hispanic Living (HHL): HHL fosters wellness and quality of life for Hispanics by focusing on all aspects of health — physical, mental, financial and societal. It works to include issues and concerns the community faces from a cultural perspective.
Arte Sana (Art Heals): Arte Sana is a nonprofit organization dedicated to eliminating sexual and gender-based violence. It offers cyber advocacy and survivor activism, prevention and survivor empowerment through art, and training courses on sexual assault in Spanish and English.
National Compadres Network: The National Compadres Network is an organization that works to decrease issues such as domestic violence and child abuse, substance use, gang violence, racial inequity, teen pregnancy and issues around heterosexism. Its goal is to enhance and re-root individuals, families and communities by honoring, rebalancing and redeveloping their traditions, values, practices and identities.

Housing Resources

U.S. Dept. of Housing and Urban Development (HUD): HUD offers housing counseling to help consumers make informed housing decisions. HUD works with organizations, such as UnidosUS, in developing and supporting Latino homeownership programs in various states across the country.
Homeownership Assistance Programs: MoneyGeek’s very own guide to help you better understand the homeownership process. Here, you can find information on grants, loans and home purchasing programs.
Federal Housing Administration (FHA) Loan Requirements: This MoneyGeek guide provides educational resources to educate home buyers about FHA, VA and USDA government-insured mortgage loans.

Scholarships and Financial Aid

Scholarships for Hispanic Students: MoneyGeek offers a full, comprehensive guide to finding scholarships and resources for Hispanic students.
Hispanic Association of Colleges and Universities (HACU): HACU is an advocate for Hispanics in higher education and offers a number of resources, including a scholarship resource list.
TheDream.US: This is the largest college access program for DACA recipients and undocumented students. They offer scholarships to those who do not qualify for federal financial aid or in-state tuition due to their residency status.
FAFSA: The Free Application for Student Financial Aid (FAFSA) is a U.S. Department of Education service for applying for federal financial aid for students.

Health Resources

Medicare Advantage’s Latino Health Resource Guide: Medicare Advantage compiled this resource guide for Latinos and Hispanics to find health care providers by state and categories, such as dental, senior care and caregiving, substance abuse and mental health. This guide is available in Spanish and English.

About the Author

Vianessa Castanos formerly worked as a scriptwriter and producer for personal finance adviser Ramit Sethi of I Will Teach You to be Rich. She is also a culture & lifestyle writer who specializes in issues pertaining to the Latinx community in the U.S. and abroad.


Monday, September 5, 2022

5 Things to Consider Before Becoming a Business Application Freelancer/Independent Consultant



According to a study by McKinsey & Company, 36% of the American workforce participates in the freelance market. This can include the Uber drivers, tutors, and other side hustle. A big portion of the percentage are full-timers. I know from my experience, in the business application space there is a good number of independent/freelancers working implementation projects. If you are thinking about becoming one of these individuals, I have put together a list of 5 things to consider:

1. Your Subject Matter Expertise
- I've connected with a lot of freelance and independents over the last couple of years. I think every business application has its share of independent consultants. For the area you consult or implement in (SCM, HR, Finance, Manufacturing, CRM, BI, etc.) are you experienced or seasoned enough to know the difficult portions? Would you be able to get through a challenging scenario without connecting with a teammate? Make sure you understand your knowledge area, so you can present yourself and your skills appropriately. Stretch assignments are good to take… heck, you know if you were working for a consulting company, they would put you into that position. Think about your industry knowledge as well. If you go into a new industry, would you be able to perform at a high-quality level?


2. The Finances – Do you have savings to get you through the initial phase and the non-project phases? You should have at least 6 months of living expenses ready to go. If you have more than 6 months, you are in good shape. Keep in mind, you might need to fund yourself for the first month while on an engagement. Since this is a contract, you will be sending your invoices to another company. Their payment policy might be a factor. You may need to wait 30 to 45 days after you send the invoice before you see actual income. If you need to travel, you will need to have a credit card with a large available balance as well. This will be another aspect of sending your specific client an invoice to be reimbursed for travel expenses. Plan for your financial situation.

3. Organizational Discipline – You are your boss working for your client. You will need to be very organized with your work and your administrative tasks. You'll need to keep good notes and time tracking. Your time will convert to your invoicing, and it will need to be done in a timely manner (as well as your travel expenses). Additionally, you will be wearing many hats. You will need to be good at sales, contracts, marketing, finance, and of course your delivery activities. You'll need to have good organizational skills.

4. Your Mindset – If you have been an employee your entire career then you are going to need to change your mindset from being an employee to a business owner. Business owners have an ability to have a vision of what they are working towards so when times get tough, they can make something happen to keep the business and themselves going. Do not take this mind shift lightly. Being a business owner is completely different than being an employee. Prepare your mental game for a tough and unknown battle.

5. A Support Community – As an independent consultant, you are on your own team. There will be many days that you feel like you are by yourself, and you'll need to get through these times. This goes along the lines of having a good mindset. A support community can help you work through different situations, can allow you to vent when you need vent, and can encourage you to keep going when you need that too. Your support community can include other freelancers or independents, trusted friends, a spouse, or a mentor/coach.


There are other areas to consider when making the jump. For example, what rate do you charge, do you start as a subcontractor, or can you go straight to the end-user. Do you need official contracts, an attorney, do you need a CPA, and business insurance? These are a few topics to consider. Before you make the leap, do some deep thinking, check with others, and develop a solid action plan.
Next level!

Do you know your next level? Did you know most businesses run on a 3-to-5-year business plan? In some cases, longer strategy plans are put together. What I find interesting is that when I was interviewing to bring new team members on my team, I would ask what their short-term and long-term goals were. Many would struggle with these questions. The short-term goals were usually to get the next new job. I always thought that was a shallow answer. Rare did I come across someone who could articulate where they wanted to be in 3 to 5 years. I wondered why this person would take this job, if they did not know if it would add value to their long-term plan. Do you know where you want to go with your career or are you letting the winds of life and the demands of your job bounce you around?

Friday, September 2, 2022

10 Licencias y permisos para abrir un negocio en USA



Si quieres emprender en uno de los países más desarrollados del mundo necesitas conocer las licencias y permisos para abrir un negocio en Estados Unidos.

Los extranjeros tienen la posibilidad y oportunidad de registrar empresas en este país norteamericano, y de hecho, este es un trámite que pueden hacer desde su propio país de origen.

Básicamente, puedes registrar una compañía en suelo estadounidense desde Colombia, México, España, Argentina, o cualquier rincón del mundo, sin enfrentarte a grandes trabas burocráticas.

Define la estructura del negocio con antelación

Muchos empresarios consideran que el secreto para impulsar negocios rentables radica en desarrollar productos o servicios novedosos.

Pero lo cierto es que para triunfar deben tener en mente otros factores de peso. Y allí es donde entra en juego la estructura del negocio.

Uno de los primeros pasos que debes dar es identificar el tipo de empresa o negocio que deseas emprender en suelo estadounidense.

En la actualidad, las dos estructuras corporativas más populares en Estados Unidos son las Sociedades de Responsabilidad Limitada (LLC), por sus siglas en inglés, y las Corporaciones C.

Por si no lo sabes, el tipo de estructura que escojas tendrá una incidencia directa en la gestión de tu negocio y en el pago de los impuestos.

Aunque las LLC tienen muchas ventajas, la gran mayoría de los empresarios extranjeros prefiere registrar una Corporación C.

Esto se debe a que este tipo de corporaciones son más flexibles y seguras para los inversionistas externos, puesto que les permite captar capital con mayor facilidad.

Aunque las LLC también son muy amigables con los extranjeros, ya que a través de ellas pueden evitar la doble imposición tributaria.
 
¿Cuál es el tipo de empresa ideal en USA?


Si te preguntas cuál te conviene más, ponle atención a esta información: si eres extranjero y quieres iniciar un negocio en Estados Unidos que te permita atraer capital con rapidez, entonces una Corporación C sería idónea.

Pero si ya tienes una empresa exitosa en tu mercado local, y tu siguiente paso consiste en escalarla en Estados Unidos, es probable que una LLC te caiga como anillo al dedo.

Las licencias y permisos para abrir un negocio en Estados Unidos, bajo la estructura de una LLC, son más sencillos y flexibles, lo cual le aporta un gran atractivo.
 
Licencias y permisos para abrir un negocio en Estados Unidos


Ahora bien, todo emprendedor o empresario que desee abrirse paso en el mercado norteamericano necesita conocer las licencias y permisos para abrir un negocio en Estados Unidos.


De lo contrario, podría poner en riesgo su inversión de dineroy destinar su empresa o emprendimiento al fracaso.

En Estados Unidos todas las empresas necesitan tramitar al menos una licencia. Y lo cierto es que este tema es un poco complejo, ya que los permisos varían entre un estado y otro.

En efecto, los empresarios están obligados, legalmente, a tramitar licencias y permisos para abrir un negocio en Estados Unidos en función de:

  • Tipo de industria
  • Sector económico
  • Estado o lugar de residenci
Estas son las principales licencias y permisos para abrir un negocio en Estados Unidos que deberás tramitar para mantener todo en orden (a escala tributaria y legal):
 
1. Licencia comercial general


Esta licencia demuestra que una empresa, marca, o negocio, posee el permiso necesario para dedicarse a una determinada actividad en una zona geográfica específica.

De ella derivan muchas licencias particulares, como sería el caso de la licencia operativa. Esta certifica que el negocio cumple con las normas de seguridad y prevención contra incendios y accidentes.

Para saber cuál es la licencia que debes tramitar necesitas investigar las regulaciones nacionales, estatales y locales.

Además, si existe una comisión, asociación o junta encargada de regular tu industria en el área donde decidas operar tu negocio, también deberás tramitar una certificación a través de ellas.

En caso de que quieras dedicarte a algunas actividades comerciales puntuales, deberás tramitar una licencia federal a través de la Small Business Administration (SBA).

Este sería el caso de la aviación, pesca, energía nuclear, vida silvestre, bebidas alcohólicas, armas de fuego, transporte marítimo y muchas más.

Por ejemplo, el costo de una licencia para vender licores en el estado de Nueva York es de $960 dólares aproximadamente.

Sin embargo, si deseas operar un restaurante y vender tus propias cervezas, el costo de la licencia ascendería a $5.580 dólares.

Costo de una licencia comercial:

El precio de una licencia comercial no es genérico, puesto que existen distintos tipos. Pero en líneas generales el monto mínimo a pagar son $50 dólares.

Dicho precio se divide en la tarifa de procesamiento y en el costo de la licencia en sí mismo, (y dependiendo del estado podría costarte cientos de dólares).

Por ejemplo, en New Jersey la licencia para una guardería infantil cuesta entre $110 y $250 dólares (en función de sus dimensiones o tamaño).

Mientras que en Alaska una licencia comercial con vigencia de dos años puede costarte $50 dólares.
 
2. Licencia de hacer negocios


Con este trámite realizas el registro del nombre comercial de tu negocio.
Debes solicitarla si tienes pensado realizar negocios con un identificativo distinto al nombre legal de tu compañía.

El fin de esto suele ser eminentemente publicitario, y en el mercado existen muchos ejemplos de éxito, como sería el caso de McDonald’s y muchas otras franquicias en Estados Unidos.

El costo de presentación de esta licencia en Nueva York es de $33 dólares para una propiedad y de $34 dólares para una sociedad.
 
3. Licencias estatales especiales

Estas dependerán del tipo de actividad que realizará tu negocio.
En términos generales sirven para demostrarle a las autoridades competentes, y también a los consumidores, que tu empresa respeta los estándares legales y de seguridad establecidos en la norma.

4. Licencia profesional

Es una certificación que avala a los profesionales a desarrollar actividades vinculadas a su actividad o campo de estudio.

Si eres contador, abogado, o agente inmobiliario, y deseas gestionar una empresa en Estados Unidos, deberás tramitar una licencia ocupacional en el estado donde residas.

Por ejemplo, si eres un agente de bienes raíces deberás invertir entre $600 y $1.500 dólares para solicitar tu licencia profesional en el estado de Texas.

Pero si resides en California, esta misma licencia profesional podría costarte entre $515 y $880 dólares. Por su parte, los costos en Florida oscilan entre $400 y $600 dólares.

5. Permiso del Departamento de Bomberos

La mayoría de los negocios deben solicitar el permiso del Departamento de Bomberos. Este avala que un local está acondicionado correctamente para un determinado aforo.

A su vez, certifica que existen suficientes salidas de emergencia y que cuenta con equipos de prevención de incendios.
 
6. Permiso de negocios domésticos

Si quieres ganar dinero desde casa a través de tu propio negocio deberás tramitar un permiso de negocios domésticos.

Lo ideal es que te asesores con un experto, porque tu empresa podría necesitar otros permisos especiales, dependiendo de la actividad del negocio, o del sector y condado en el que cumplirá operaciones.

7. Permiso de edificación

Si tu plan consiste en comprar un local, para luego remodelarlo, deberás pedir un permiso de edificación o construcción ante las autoridades locales.

Estos organismos verificarán si la obra que planeas llevar a cabo se apega a las regulaciones vigentes o no.

Si todo está en orden, es decir, si los trabajos no ponen en riesgo su estructura, recibirás tu respectivo permiso.

El costo de este permiso estará supeditado al tipo de proyecto que deseas ejecutar. En promedio oscila entre $400 y $2.000 dólares (dependiendo del estado).

Aunque en los condados de menor afluencia el costo puede ser más bajo (a diferencia de las grandes ciudades).

En efecto, en ciudades como Nueva York, o Chicago, puedes pagar hasta $10.000 dólares por un permiso de edificación.

8. Permiso de impuestos sobre las ventas

Deberás pedir este permiso si has decidido vender productos en una tienda en línea, o en un local físico.

En ambos casos deberás recaudar el Impuesto Sobre las Ventas, y por ende, deberás contar con el permiso pertinente.

No obstante, debes tener presente que este impuesto no es aplicable en todos los estados del país. (De modo que deberás averiguar si es obligatorio en tu lugar de residencia o no).

En Florida este permiso es gratuito (si lo pides en línea). Pero si decides solicitarlo por correo postal tendrías que pagar $5 dólares.

Los únicos estados que no tienen Impuesto Sobre las Ventas en el territorio estadounidense son:
Oregón.
Montana.
Alaska.
Delaware.

9. Permisos sanitarios

Las licencias y permisos para abrir un negocio en Estados Unidos relacionadas con sanidad son muy importantes.

Por ejemplo, si se trata de un restaurante, de un food truck, de un salón de belleza, o un spa, es necesario que tramites un permiso sanitario local con anticipación.

Y no solo eso, también debes asegurarte de que los organismos competentes realicen una inspección anual para corroborar si sigue siendo higiénico.

En el estado de Florida el costo mínimo de un permiso para vender comida en un food truck es de $50 dólares.

Mientras que en Texas el costo de un permiso sanitario está supeditado a las ventas brutas anuales.

Por ejemplo, si las ventas brutas de tu pequeña empresa en Estados Unidos son iguales a $50.000 dólares, el permiso sanitario te costaría $258 dólares.

No obstante, si gestionas un restaurante en este estado, el costo podría ser mayor a $700 dólares (considerando que la mayoría de los que ofrecen un servicio completo generan más de $150.000 dólares en ventas brutas anuales).

10. Requisitos para pedir una licencia comercial en USA

Según un reporte de Forbes, estos son los requisitos básicos para solicitar una licencia comercial en los Estados Unidos:

Establece la estructura comercial de tu negocio:

¿Se tratará de una LLC?, ¿de una Corporación C?, ¿de un Propietario Único?, ¿o de una Sociedad Limitada?

El primer paso que debes dar antes de solicitar licencias y permisos para abrir un negocio en Estados Unidos es establecer su estructura comercial.

Solicita un Número de Identificación Fiscal de Empleador:


Cada estado tiene sus propias políticas, normativas y regulaciones respecto al procesamiento de las licencias comerciales.

Por lo tanto, dependiendo de tu estado es posible que debas incluir este número de identificación fiscal y federal en tu solicitud.
 
Identifica el tipo de licencia que necesitas:

Al principio te dijimos que existen distintos tipos de licencias comerciales, ya que cada entidad es independiente.

Por ende, para saber cuál deberás tramitar en tu estado deberás consultar los requisitos estatales, federales y locales del tipo de negocio que tienes pensado administrar.

Te recomendamos visitar la Oficina del Secretario de Estado, de tu estado, o el Departamento de Ingresos, para consultar información actualizada y confiable.

Asimismo, es muy aconsejables que contactes a un abogado de negocios con experiencia para que te ayude a realizar todo el papeleo con éxito.
Solicita y renueva tu licencia:

Una vez que sepas cuáles son las licencias y permisos para abrir un negocio en Estados Unidos que le compiten a tu propia empresa, procede a formalizar sus solicitudes.

Finalmente, asegúrate de pagar las renovaciones que correspondan para evitar problemas legales, fiscales o tributarios.

Por lo general, las renovaciones deben pagarse cada año, o cada cinco años. En todo caso deberías asesorarte con tu abogado de confianza.
 
Opera tu propio negocio en USA:


Acabamos de compartirte las licencias y permisos para abrir un negocio en Estados Unidos que deberás tramitar si quieres dar este paso tan importante.

Pero debes recordar que estos varían entre un estado y otro. Por ende, deberás consultar información local y estatal para que no cometas errores o pierdas dinero.

Emprender, o gestionar tu propia empresa en suelo estadounidense, podría mejorar tu calidad de vida dramáticamente, a la par de acercarte a tu independencia financiera.

Thursday, August 11, 2022

How to Successfully Launch (And Grow) A Business


Written by: JAVIER SIMON


Four essential steps for Latino leaders, innovators, and visionaries looking to establish themselves as entrepreneurs


As the nation’s businesses recover from the economic fallout of COVID-19, Hispanic entrepreneurs are steaming ahead. In fact, Latinos are kicking off businesses at a faster rate than any other group in the country, according to a recent report published by the Stanford Graduate School of Business.

Over the past decade, Latino-owned businesses have grown by 44 percent, while non-Latino start-ups have grown by just 4 percent. For Hispanic entrepreneurs looking to turn their dreams into a reality, this is promising news. Juan Hernandez, CEO and cofounder of Creser Capital, speaks to these entrepreneurs on a regular basis. His organization provides microloans and other support to small businesses throughout California’s Sonoma County. “Latinos represent 30 percent of Sonoma County, yet hold only one-eighth of the wealth,” Hernandez says. “They’ll be 60 percent of the county by 2060. And if they still hold one-eighth of the wealth, that’s a problem.”

Latinos at large are ready to solve that problem. But they have to start somewhere.
 
1. Plan, Plan, Plan

Just because you believe your business idea is great, that doesn’t mean everyone else would agree. Before you start a business, do some homework.

The US Small Business Administration (SBA) recommends you begin by conducting market research to understand consumer behavior and market trends in your industry. This will give you a pulse on what people want and what competitors are doing to meet that demand. The SBA website even offers some free market research and competitor analysis resources.

Once you’ve determined that your idea is a viable business concept, you can incorporate your research into your business plan. Your business plan is an evolving document that explains why your business rocks and tells investors how you plan to make it profitable.

Some people type out business plans in a Word doc, but others create a multimedia plan. The most effective approach would depend on your business model, but no matter what, your plan should include the following:

  • An executive summary: this is where you present the strongest pitch for your business.
  • A company description: explain the structure and purpose of your business.
  • A market analysis: this is where you present your market research and competitive analysis.
  • A product and service description: explain your products and services.
  • Financials: in this section, you should include your expenses, revenue, debt, and other pertinent financial information. You should also detail any funding you have received thus far and/or make a request for funding that you need—and explain how you will make a profit off that funding.


Your business plan will help you keep the business on track, but it’ll also come in handy when you’re raising funds from investors, as it will clearly show how you plan to run a profitable business that would be worth their investment.
 
2. Secure Your Funds

For most Latino entrepreneurs, securing funding from traditional institutions is rarely an easy task. In fact, the Stanford study found that in 2021, only 46 percent of Latinos were approved for business loans by local banks as opposed to 66 percent for the white population.

However, the same study showed that 64 percent of Latinos were approved for funding by a nonprofit (by contrast, only 45 percent of white business owners were approved for that type of funding). Local nonprofits like Creser specialize in microloans. These are business loans, usually ranging up to $50,000, that are provided by SBA-approved lenders.

But those are not the only funding options available to entrepreneurs. Other solid options include crowdfunding and SBA initiatives like the 8(a) Business Development program.

After you’ve developed your business plan and raised some funds, you may think it’s time to launch the business, whether at a physical location or somewhere in cyberspace.

But before you start making a penny, make sure you’re in the clear with Uncle Sam.

3. Fill Out Your Paperwork

Running a business in the US means operating under a spiderweb of rules and regulations imposed by the IRS and other regulatory bodies. Failure to follow the rules can lead to massive fines or even imprisonment. So, it’s important to cross your t’s and dot your i’s as soon as possible.

The tax documents and forms you’ll need will vary depending on your business, but here are some of the most common ones:

 
4. Never Stop Improving

The work isn’t done once your business has launched—long-term success will depend on your ability (and your business’) to continue growing, improving, and adapting to the market.

Creser Capital raised more than $1 million and lent nearly $400,00 within a year of launching in 2020. Today, Hernandez says that figure is closer to $500,000. But the journey continues: Creser’s current endeavor is to get certified by the Community Development Financial Institution (CDFI) in order to attract more investors and gain the federal government’s seal of approval.

Hernandez calls the application process “a gauntlet” with “red tape” at every turn (Creser’s application was at one point dismissed because a board member who was working from home didn’t make note of the business address), but Hernandez says nothing will stop him from achieving this goal.

That determination stems in part from his belief that he’s part of a greater movement. “There’s no bigger opportunity for the US to grow than investing in the Latino community,” Hernandez says. “I think it’s going to save America.”