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Small Business

I want to start a small restaurant in my local neighborhood. Any suggestions on where I should start?

7

Answers

Tamer Maher

CTO / COO- M&A Business Consultant MBA & PMP

What foods do you like ? What are the other restaurants in the area? What do they server ? What is your budget ? Is this an upscale neighbourhood ? What about franchising ? Do you have prior experience in the restaurant industry ? Did you work in a restaurant before ? I did multiple business analysis and financial analysis / plan modelling for restaurants before. You may reach me if you need more help.

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Sandra Lewis

Expert on Virtual Assistance

Hi, this is a tough one! We work internationally and use https://transferwise.com to pay many of our providers. The exchange rates are the best on the market (that I have found!) although they obviously fluctuate. Hope this helps somewhat!

Humberto Valle

Get Advice On Growing Your Real Estate Business

In short. As long as it has to be. What to put in it? In short, a step by step instructional on how you will expose your services to the consumer. A business plan and marketing plan are intended to be documents of reference during complex times. When you are losing your focus, gonig through self doubt - you go to these documents. Don't spend too much time on them though. If you have an online business focus on digital marketing steps, if not then make sure to cover the position you will take in the market such as price competitiveness, value proposition, write down examples of why customers might buy in general.

Jason Kanigan

Business Strategist & Conversion Expert

Etsy is a platform for selling craft items like what you're describing. But let's step back. You say you're bored with school. OK: we all were. The question is, how can you inject some excitement into your life so that school becomes interesting? Any business is a challenge. First you have to find out whether people actually want what you have to offer. If they don't, go pick something else. There's the example of a woman who so badly wanted a storefront bakery. But she just couldn't cover the costs of having a storefront. So she rented space at a commercial bakery and did her business that way instead--making the goods and delivering them to her customers but not having the expense of a storefront. Life often gives you what you want, but not necessarily in the exact form you demanded it in. So if your first idea doesn't work out, move on and pick another. That's the spirit of entrepreneurship. Now, as you're researching and putting into action your business ideas, do you think you could look at how what you're learning in school is relevant or could be useful to what you're doing? Sometimes, I know, it can be a stretch (it's 20 years later and I still have not used the 3 years of statistical analysis I learned in college...or the algebra I learned in high school.) Here's an article I wrote--it was a Clarity answer, originally--about what a young person can do with their life: http://www.salestactics.org/what-should-i-do-with-my-life/ It might help you. Running a business is not a cakewalk. It's hard work and requires persistence. Things don't turn out the way you want, and there are a lot of emotional grinding of gears. There are great highs and terrible lows. If you do well, some friends and family are going to resent it and talk behind your back...or in front of you about it. Be ready for all that, if this is the path you choose. No matter what business you're in, you need two things: Traffic and Conversion. Physical stores get traffic from walk-ins (that's why "location location location" is so important) and advertising. Then they convert by presentation, pricing, sales, and a number of other factors within their control. An online store gets traffic from paid advertising, social media clicks (look up "Red Dress Boutique" for a success in this area), and possibly hooking onto someone else's platform eg. Etsy, eBay, Amazon for their traffic & search engine power. Building your business on someone else's platform is ultimately a bad idea, because it can be taken away from you at any time and for no reason. So be wary. It's OK to start there, but as soon as you can, get buyers out of that platform and onto your own. The more you get into business, the more you'll find MATH is necessary. You need to understand your numbers. That's like a doctor checking your pulse and blood pressure. Is the patient doing well, dead, having a heart attack? It would be nice to know, wouldn't it. I was terrible at math in high school. In the course of a few months, when I was 19, I switched around and started becoming very good at math. 99% of it was my attitude. I had *believed* I was bad at math...and so I was. Until I ran into a teacher of a math course I absolutely had to do well in to get into the college I wanted to be in. He taught me that as long as I learned and practiced the method, I would do well. I would get the right answer every time. And I did! Then all through college, math was no big deal. In a business, you need to measure Cost of Customer Acquisition, Cost of Goods Sold, Gross Margin, Net Profit, and so on. These are the heart beat and blood pressure of the business. The alternative is you can not take it seriously, throw a few goods at the market and hope something happens. Who would you rather be? Start watching shows like Shark Tank and The Profit to get an idea of how serious entrepreneurs really work. From Shark Tank, you'll quickly see how important a distribution system is to a business. That's what the Sharks often bring: the ability connect someone's product to a big distribution network, so that many sales can be made. From The Profit, you'll learn how the numbers matter inside the business. Marcus gets in there and finds out the truth--and often, the owners are really flaky and have no idea what's truly going on. Numbers = control. Best of luck to you...and my best advice, which is that sticking with it, or persistence, is more important than any technical skill. You can learn the skill. But if you aren't around to learn it because you got distracted or gave up, well, then it doesn't have any value, does it.

Fabian Geyrhalter

Clarity's Top Branding Expert, Founder of FINIEN

Write a few white papers on topics that will be important to your clients to gain new subscribers and to nurture your vision for 2016. Write weekly blog posts and analyze your E-Mail outreach. Write a book about your consultancy's expertise. It's what we did with great success.

Operations Management

When is the right time to get a COO?

3

Answers

Glenn Nishimura

Startup HR & Workplace Culture Expert

it sounds like you've already answered your own question – you needed a COO yesterday. I would disagree with your CMO that adding a COO is just adding "another layer". It is, in fact, what keeps the lights on. If your house isn't in order, everything else falls apart. With 26 employees, one of your biggest ongoing challenges will be your culture, and managing the morale, motivation, and performance of your people. Outside investors are interested in a number of things – not the least of which are your operating margins, who does what, and how efficiently the whole organizational structure is organized and communicates. One last thing: don't make the mistake of just hiring for skills or experiences. Fit is especially critical in a COO role. if you haven't done so already, define your culture, define your vision, define your values. Then work on developing a performance-oriented job description for the COO, then start your search. In that order. I'm happy to jump on a call to talk more, and help to strengthen the business case to your CXX colleagues if needed.

Lee von

Unique Insights, Creative Solutions

It's tough working with freelancers, but as you mentioned, it's sometimes necessary at early stages due to a lack of funds. You can either 1) Learn to code yourself 2) Find a software engineer co-founder 3) Learn a better system for working with freelancers So I'd recommend the 3rd option, and you can always work on the other two in parallel. There are certainly specialized techniques that will let you work more effectively with freelancers (either foreign or local). A good, concise summary of these techniques can be found in a free e-book by Amol Sarva (http://knote.com/wp-content/uploads/2015/02/Ship-While-You-Sleep-Final.pdf). Skip to chapter 2 (page 18) if you want to jump into the meat of it. I co-founded two companies with Amol using the methods discussed there. If you have any further questions about anything you read there feel free to give me a call, all the best, Lee

Kenneth Wolstrup

Value adding advice built on analysis.

There are a number of ways you could go with this: Cost+: Close to what you are suggesting: Calculate your hourly cost, add a profit. Then define your projects with your client, and estimate number of hours of work. That would be your price - like craftspeople do it. The pro for this approach is, that you let your own cost determine your price, which is very inside-out making it easier for you to justify your hourly pay. But the con is, that your customers will challenge your estimate, and you will spend a lot of time quantifying projects. But if you don't know yet how much time each project will take, this could be a way to start off. Benchmark against market price, though or find the price sensitivity of your customers. Create products: When you have more knowledge of clients needs and time used for development, you could package your development into products and charge for that. Small - Medium - Large with a development price for each. You could do it as a one-off, or you could integrate it with a maintenance model - see next. SaaS-model: You could integrate your site development with maintenance, provide SEO and similar service. That would make it very convenient for your customers, and create an ongoing cash flow for you as a subscription fee. Either as a fixed monthly fee or as part of the cash flow through the website, if you want to share risk and upside. But no matter what you do, make sure you know the delivery of your competitors. Where are you unique in your delivery? What do your competitors charge? Unless you deliver something truly unique, you have to be within the same price range. I hope some of this could work for you. If you want to discuss your pricing possibilities further, feel free to mail me or set up a call. Best regards Kenneth Wolstrup

Glenn Nishimura

Startup HR & Workplace Culture Expert

Managing the performance of any employee is difficult, but absolutely necessary. To do it successfully, you need to have a few fundamentals in place first: 1) A current and accurate performance-oriented job description that focuses on accountabilities. This establishes a baseline for expected performance. Without one, you'll be measuring in the dark, and may end up focusing on areas that aren't priorities, and don't drive results. 2) KPIs are always recommended. But whatever you put into place, remember that project management is expectation management, and thus not everything can be measured empirically, like budget deviation or milestones missed. It will be important to consider anecdotal or 'soft' metrics, and get team and client input on how well they communicate, motivate, handle conflict, deal with cross functional issues etc. 3) Measure fit. Too many companies fail in this regard. No matter how well the PM functionally performs as per their job description, it's equally important to measure how well they fit the company's culture, live your purpose and core values, and contribute to achieving the company's overall vision. If you have a capable PM, with strong self initiative, a weekly meeting should be the bare minimum. That said, a quick 5 minute huddle at the beginning of the day is recommended – especially for new hires still in the process of getting their feet wet – followed by another quick 5 minute huddle at the end of the day to recap progress, issues etc. You can loosen or tighten this up as needed, once they begin demonstrating the autonomy and smart decision-making you expect to see. I'm happy to jump on a call with you to talk more specifics, and lay out a plan you can follow.

Humberto Valle

Get Advice On Growing Your Real Estate Business

Great approach! Many people don't realize that campaigns must be created and implemented well ahead of time. Growth hacking for example takes time and a lot of diligence, many think is a quick solve all approach to marketing but contrary to that! I would be willing to help you if you have any questions. I have done several growth campaigns with significant results, you didn't seem to post a question tho. :)

Sheryle Gillihan

Business & Technology Strategy - Nonprofits

Have a look at Digital Globe's map API. We partnered with them recently and I learned about their mapping disaster recovery assistance in Nepal after the quake. I think the maps they offer will meet your needs: http://developer.digitalglobe.com/maps-api/

Bruce Chamoff

WordPress/Public Speaker/Social Media/Podcaster

I am not sure if your courses are video-based, but I have had success with Udemy and Teachable. I teach WordPress and have 7 courses on Udemy right now. They pay instructors based on a percentage and also if the students are part of Udemy already or if you drive traffic to the course from your own internet marketing strategies. I help companies get their courses started on Udemy as well. Also, if you want to control the pricing structure a little more, check out Teachable. They are pretty good and as you requested, they take a small percentage. I hope this helps. Bruce

Shaun Nestor

Content Marketing Advisor & Agency Consultant

I've worked with a couple of CRMs; if you are looking for a custom-like solution, I'd recommend Podio. Salesforce has a lot of options, but tends to overwhelm folks who are not familiar with their tool. If I didn't go with Podio, I'd choose HubSpot because of the integration with their other sales and marketing services. I don't know any other details about your venture, so it is hard to offer a tool that will grow with you. I'm happy to discuss more and give you a more detailed answer. Just book a call and we can get rockin' -Shaun

Yonatan Raz-Fridman

Founder & President at Kano

Hello. My experience showed me that it is definitely not easy to get money from a bank especially in the early stages. It really depends on what type of business you are starting. Banks would usually look for risk management in the form of assets you own in case the business doesn't progress as planned. Unlike venture capitalists who are used to take a risk on startup investment, in the case of a bank it's very different and not trivial but I may not know all the schemes that banks offer in the US (is this where you are located?) I'd be happy to help you on your thinking process and cover the key points over a phone call. Hope this helps Yonatan

Jonathan Tsai

Software Geektrepreneur, Multiple Startups

You already said it: "He isn't interested in salary as much as equity." If this developer is any bit worth his salt, he is worth the equity. A smaller piece of a bigger pie is far more valuable than a big piece of a small (or worthless) pie. Profit sharing is a red flag to me that just sounds "Cheap," unless you guys are making tons and tons of profit already. I don't know where you're based, but In Silicon Valley, a good developer can easily fetch $300-500k (base + bonus + yearly equity). UC Berkeley's average starting salary for NCGs majoring in EECS or Computer Science is $108k. Salary is something a good developer can easily get; why your startup (possibly unstable) rather than another more established company? If as the other person said, he walks and you're company is crippled, give him equity. Happy to chat more.

Ameer Rosic

Entrepreneur, marketer & Blockchain advocate

Good question. However, I think the better question should be; what system and thought process do I need to have for my Company Because. Marketing is just one small factor of your enterprise. Each and every single part of your business needs to be working on all cylinders. Below is a System we use to scale. I call it... 4 Heuristic Chain of Command" #1 High Level Thought Process The Dynamics Between The Founders Creating The Vision For The Company "Painted Picture" The Management and Creation of Your Dream Team (Do you have the right people?) #2 Strategy Creating Fundamental Blueprints For Success (USP, Brand Message, Attractive Character, Product Fit) Find And Establish Key Relationships And Networks (Who, What, Where and How?) Building a Backend sales system. (80/20 Rule of Business) 80% Profits in Backend: Increase Profits #3 Tactics Leverage technology to enable better buying for customers and faster selling (Online Marketing) Leverage Weekly KPI Performance Checks (What doesn't get measurend does not get improved) Leverage Top Platforms For Exponential Growth (Double Down) #4 Execution Day-to-Day optimization of Sales Channels (Paid Traffic, Content Marketing, PR, Direct Sales, Phone sales) Advanced analytics, social strategies and conversion optimization,for your business.(Dynamic, behavioral funnels) Analyse and research, measure metrics, perform technical audits and get competitive intelligence. (Email Marketing) I know this is probably not the answering you are looking for, but I hope you can keep an open mind Adios Ameer

Gregg Kennelly

Building Operations Enthusiast #CRE

Zenefits is top of mind, growing fast and operating all over the U.S., which is incredible because they're only a few years old. All of their HR services are free, like tracking employee PTO, changing 401K contribution amounts etc. etc., but Zenefits also employs a small army of insurance brokers. If you use Zenefits you can continue using your current insurance broker for employee health care policies, but they can offer you a quote as well. That's where a big chunk of their revenue comes from, which is fine. Btw the CEO still serves as the Zenefits administrator for the company, which I think is really cool, but that's coming from a product guy. Anyway I researched this topic last month, hope it helps. Warm regards, Gregg M. Kennelly

Ash Maurya

Author of Running Lean and Creator of Lean Canvas

Falling in love with their solution, not the customer's problem.

Shaun Nestor

Content Marketing Advisor & Agency Consultant

Relentlessly obsess over the problem facing your ideal B2B client and how you will solve that problem for them. I've written hundreds of thousands of words on this topic on my blog: www.shaunnestor.com The highlights are: 1. Know your goals and objectives 2. How how you will measure your performance to those 3. Understand your audience and their needs 4. Articulate how you will meet the needs of that audience on the platform of their choosing 5. Design the content (graphics, text, etc) to roll out 6. Measure, measure, measure 7. Adapt and adjust There is no one-size-fits-all marketing tactic for either B2C or B2B. Just as building a house requires different materials and tools, but the basics are the same. The foundational elements (which I outlined above) are the same regardless of industry, product, customer, or price point. The biggest mistake brands make when creating a marketing strategy is thinking about it from *their* perspective rather than identifying the problem of their customer and solving it. I'd love to help more. Book a call and we can get into the specific tactics you will need. I've helped hundreds of brands around the world create successful social media marketing strategies. All the best, -Shaun

Shaun Nestor

Content Marketing Advisor & Agency Consultant

This is akin to asking: "How much does a car cost?" The most annoying, yet fitting, answer is: "It depends." Are you asking about software? Will you be creating and sending invoices? Do you have employees and HR needs? Do you have a website? Need one? Will you be managing IT needs on-site? Are you asking about hardware? What kind of foosball table? Remote access to the office? Desks and chairs? I'd love to help, but the question is a bit vague. I'm not sure if any other experts will be able to add much value to your inquiry. Please add more detail and we can get rockin' -Shaun

Humberto Valle

Get Advice On Growing Your Real Estate Business

If you are going to train, commission for them only model is out of the question. A nanny service is almost a commodity, there is only so much people are willing to pay, a lot of demand but not acquired by everyone. Your profit margins will most likely be small because essentially you are getting into a brokerage service for the nannies taking a commission off each placement. Because of the low margins, you're better off maximum get each sale. Instead of making the primary business model based off 1 time hires/sales, focus on selling memberships... Try annual or bi-annual memberships that guarantees them a discount when they do actually hire, maybe offer faster or preferred services. This guarantees you operating cash flows month to month on top of the sales off each actual hire that pays for the nanny's hours worked and can give you an additional profit margin as brokerage commission. Monthly + commission - (EBIT + Op. Exp)

Humberto Valle

Get Advice On Growing Your Real Estate Business

Is hard to tell just like that. You can do some research online. Look up what searchers are currently entering into their queries, what does google give as possible search options... Do people search more as a conversation word1 and word2 ? Or without the and? For online sharing purposes you might want a shorter domain but that shouldn't stop you from going with the longer one because you can get "shortlinks" created for Twitter and such, also length is not an issue if you share clickable links that don't have to be retyped by your potential visitor. Your domain had to be SEO friendly... But also not an issue at the beginning, regardless of domain you will have to do a lot of SEO and marketing work to build relevance online so Google shows you in queries that don't include your direct domain name... My suggestion: If your product or brand will be mentioned out loud or read a lot to include the AND then include that in your domain..

Steven Pesavento

Clarity Expert

Hi There, I'd be happy to help walk through the growth process with you directly, but I should be clear that there isn't a "one-size-fits-all-solution". You can't simply "growth hack" anything. But you can quickly find strategies to reach customers, and if you have a product that people want you'll start to see growth! First we'll need to work through the confirming that your product is a real need for customers (product market fit). After we've confirmed this we'll begin setting up a process to brainstorm the top channels for reaching customers and then rapidly testing each of them. At the end of a few iterations you should have some solid information on what works. There is no quick fix or hack to this process, but with a little discipline you should be able to find solid growth.

Cauvee [call-vay]

Here to help you scale!

Samples are traditionally 100+ people. Can you get 100 customers? How many customers (users too) do you have participating on the idea? Once you've shared it past friends and family, strangers are interested in what you're doing I believe that is all that is needed for a product/service to be validated. Feel free to call me on message me on LinkedIn to discuss this more in detail.

Jason Lengstorf

Expert in location independence/work-life balance.

If your goal is a proof of concept, use what you know and don't stress about performance yet. Other options for using a web stack to build native apps include Steroids (native transitions with web views) and React Native. From what you're describing, it doesn't seem like you'll hit any major challenges in the alpha stages. Once the project grows legs, it would probably be worth consulting with an expert to dig deeper into the architecture and requirements to make a more informed judgment. Good luck!

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