Entrepreneurs Come in All Ages

When people typically think of entrepreneurs, they think of 20-somethings starting a tech company. But that stereotype is not quite right. Entrepreneurs come in all ages and start businesses in all industries.

A new study sponsored by Babson and Baruch Colleges and the Global Entrepreneurship Monitor (GEM) Consortium shows that 42.7% of people over 65 work for themselves. Over 25% of Americans over 55 own their own businesses. Compare that with 30.5% of 18 to 24-year-olds who have "entrepreneurial intention."

I'm co-writing a book on entrepreneurship right now with a highly successful entrepreneur who started his business when he was in his 30s. So I was quite excited to see these stats. You do have more at stake when starting a businesses at a more mature age, but you also have years of solid business experience on which you can base your venture.

No matter your age or business background, if you have the entrepreneurial spirit in you, listen to it. When our book is closer to publication, I'll start posting some of the principles from our book that can help you achieve success in your new venture.

You can read more about the study in question at: http://www.gemconsortium.org/docs/2804/gem-usa-2012-report.

Bootstrap or Raise Outside Funding?

The New York Times Small Business Column in the Thursday, June 20, 2013, Business Section ran a great article on "Self-Finance or Raise Money? A Quandary for Start-Ups".

Since I've been working with entrepreneurs on developing business plans to raise capital since 1999, you'd expect me to be on the side of raising outside funding. But I'm not most of the time. Sometimes, I even counsel my clients to bootstrap and grow organically. (Organic growth is anathema in Silicon Valley.)

I believe bootstrapping is better. I'm even co-writing a book with a really successful entrepreneur which includes content on how bootstrapping can work in your favor.

For now, read the NY Times article and think about the two sides for yourself.

Self-Finance or Raise Money? A Quandary for Start-Ups

The founders of GoodData and RJMetrics took different approaches to starting their data analysis businesses.

Hearing Bob Dorf at Startup Weekend

When I learned that Bob Dorf was going to speak at Startup Weekend at the Stamford Innovation Center, I was excited. I'd been hearing about Bob Dorf as an entrepreneur, investor and business guru for years. Not only that, I had recently read much of his book, The Startup Owner's Manual, Clearly, I had to attend this event, which happened last Friday, April 26, 2013.

I was not disappointed. Dorf speaks at Startup Weekends all over the world, from the US to Brazil to Russia. In Stamford he spent an hour outlining the essential elements that you must have lined up to launch a new business. He illustrated the points with war stories of successes and failures. Here are a few of the points Dorf  made:

• It's brutally hard to achieve success. Out of the 650,000 businesses that get going annually, only about 12 will go on to become great companies that are wildly successful.
• You do not need a business plan - just a Minimum Viable Plan "MVP"), which can boil down the essentials: value proposition, customer relationships, revenue model, and plan of execution.Get real facts to back up your assertions and assumptions.
• Your business needs to be repeatable, profitable and sustainable.
• Get out of the building! Go out and talk to customers and potential customers to learn if you have a viable idea. Listen to them.
• Pivot if customers are not interested in your product or service or if they suggest modifications. More new businesses fail because they lack customers than for any other reason.
• Put together a team. Every startup needs "a hacker, a hustler and an artiste."
• Come up with a way to make money -- your business model.

I agree with everything Dorf said, probably because I've been saying similar things to my own clients for over a decade. While I am a business plan developer, I haven't written a full business plan since 2005. No one wants to read one, write one or pay for one. What I do now is very close to an MVP -- a three to seven page summary or a one-page angel summary. But what is more important is the planning process -- addressing the points made above, plus a few more.  

Unfortunately, I could not stay to participate in the entire weekend due to family and client obligations. I wish I could have heard the final presentations. But Friday evening was well worth it.

Note: If you live in the Stamford, CT, area, check out the Stamford Innovation Center. They have a lot going on to support new businesses and entrepreneurs.