Category: Business News

With 109.9 million cards in circulation and an estimated valuation of $18.3 billion dollars (according to Interbrand), American Express need never worry about where their next round of funding might come from. Why then, do they continue to set the gold standard for content marketing, hustling to create some of the most trusted, most genuinely useful advice for small business owners and entrepreneurs? Courtney Colwell, director of content marketing at American Express OPEN Forum, says that “It all stems from our mission of helping these businesses do more business. With our small business customers, their growth fuels ours. It’s a win-win if we can help them succeed.”

Related: 6 Super Simple Content Marketing Hacks to Double Your Lead Generation

There are certain fundamental business truths Colwell and the American Express OPEN Forum team adhere to, which are applicable to businesses of any size, as well as startups and even sole proprietors. Whatever your headcount, whatever your industry, responding first and foremost to the needs and wants of customers is the best way of creating loyalty and encouraging growth. Here are some tips from my interview with Colwell.

First, tell us what OPEN Forum is.

Colwell: OPEN Forum is an online community and content site that provides small business owners with insights, ideas and connections to help them grow their businesses. I say community first because that’s where OPEN Forum originated, to enable business owners to connect with other business owners. The content came later, but it also significantly increased engagement, including more connections. So we expanded the types of article, video and other content, but still with the focus on maintaining a peer-to-peer experience. This means that most stories and advice featured are from or about other business owners, rather than from our brand. We like to think of it as a place where businesses convene to exchange ideas and advice, and we’re the host.

Content on OPEN Forum is mostly responsive, meaning that what’s there, is there because real business owners asked for it (for the most part). American Express has the resource to be able to do that, but what might that kind of responsiveness look like for a very small business or entrepreneur?

Colwell: It comes from listening and taking input from your customers through whatever channels you may have. Being a large company, we can gather that input from across a number of channels, from what we hear from customer service and client managers, search and social, as well as from our network of OPEN Forum members. A small business owner may not have all those inputs at his or her disposal, but there is also something to be said for quality compared to quantity. Just getting feedback from a few customers can provide great insights.

Even for large organizations, this kind of highly-involved content marketing is a lot of work. How would you convince small business owners and entrepreneurs to go this route in favor of say, paid advertising?

Colwell: I would not necessarily advocate one over the other for all situations. It depends on your goals. Content marketing may help build a relationship with someone who will, hopefully, remember you. It’s also a way to continue the relationship past the point of sale. It’s about building brand equity. You’re providing value beyond a product or service, making their overall experience with your brand even richer, more memorable, and long-term.  

Related: How Much Should You Invest in Content Marketing?

Many startups find that as they grow, certain aspects of their business begin to slip; usually things which end up distancing them from those people they set out to help in the first place. What are some of the fundamental practices and philosophies you would advise people to hold on to?

Colwell: Having a strong mission for your brand, especially one that has customer at its center, can help you maintain focus. We know our customers want ideas and advice for running their businesses, and we know they want it from other business owners. They want that voice of experience. So while OPEN Forum has grown and evolved over the past ten years, our mission has remained consistent, as has our focus on maintaining a peer-to-peer experience.  

What’s one thing you’d like to see small business owners do more of?

Colwell: Defining a brand mission that can carry through all your marketing efforts, including content marketing. Having a strong idea of what you stand for can help you determine what to try in terms of creative messaging or even channels to test into. It can also help rule out tactics, which can be just as important.  Being willing to experiment is another thing I’d suggest. Speed and agility are advantages small businesses often have over larger companies, so use that. Be the early adopter of a social channel, for example, if it makes sense for your brand and your customers.

What’s one thing you’d like see small business owners do less of?

Colwell: There is a risk of focusing too much on optimization, doing more of what is currently working without that experimentation. You have to plan ahead as your customer’s habits will change. This is especially true in content marketing. We had previously invested very little in video because it didn’t drive as high engagement on our website as other content types, but as our audience has become more mobile and is consuming content in social and other channels, we have seen increased video engagement.  

Related: First Impressions Matter: Here’s How to Make All of Them Great

Listen, learn and respond.

However large or niche your business, at some point what you’re doing ends up in the hands and minds of real people, the ones with the power and the money to allow your brand to grow. It doesn’t matter whether you’re a team of 2 or 2,000; listening to what customers want and what they don’t want, and responding in kind, is the only way to go. Content marketing plays an important role in this, and how you position your strategy to support your mission, is going to be crucial for success.

Disclaimer: Entrepreneur is not affiliated with American Express or OPEN Forum in any way, nor is this a paid piece of content.

Influencer marketing is a great way for companies to boost their reach and get their name out to the world. Tapping into the social followings of celebrities and social media icons is an effective way to get new fans and customers, and while it may feel like it’s at its height right now, influencer marketing actually has an old history. In fact, it dates all the way back to the 1700s.

Related: How to Create a Successful Influencer Marketing Campaign

The famous potter and entrepreneur Josiah Wedgwood tapped into royalty, getting kings, queens and other nobles to endorse his pottery line. Later, in 1905, Fatty Arbuckle, an American silent film actor, comedian, director and screenwriter, became the first recorded celebrity to endorse a product, which was Murad Cigarettes.

But today, when we think of “celebrity” or “influencer,” stars such as Selena Gomez, Cristiano Ronaldo and DJ Khaled come to mind. And that’s because these celebrities have followings so massive, an endorsement or ad by them is sure to get customers swayed to buy a product or try a service.

Related: Coca-Cola, Dell and PayPal Share Their Influencer Marketing Secrets

While influencer marketing may have started long ago, with the help of social media, it’s reaching new heights today — and it has created an entirely new genre of celebrity. There are a number of famous individuals today who found their fame only because of social media, such as YouTuber Lilly Singh and Vine star Andrew Bachelor. These influencers may be even more effective than celebrities when it comes to endorsing a product — 70 percent of teenage YouTube subscribers say that these influencers are more relatable than celebrities.

To learn more about the evolution of influencers, check out NoGRE.com’s infographic below.

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EPA

Belgium has admitted it knew in June that eggs from Dutch farms might be contaminated with an insecticide – a month before the issue became public.

The information was not shared because of a fraud investigation, a spokeswoman for Belgium’s food safety agency said.

Tests found the chemical fipronil, which can harm people’s kidneys, liver and thyroid glands, in Dutch eggs.

Supermarkets in Belgium, Germany and the Netherlands have removed potentially contaminated eggs.

“We knew since early June there was potentially a problem with fipronil in the poultry sector,” spokeswoman Katrien Stragier told reporters.

“We immediately launched an investigation and we also informed the prosecutor because it was a matter of possible fraud,” she added, without giving more details.

• Aldi pulls eggs from German stores over poison fear

German Agriculture Minister Christian Schmidt expressed concern about the revelation, and planned to call his Belgian counterpart on Monday.

One German official said up to 10 million of the contaminated eggs may have been sold in Germany.

The Netherlands is Europe’s largest exporter of eggs and egg products, and one of the biggest in the world. It exports an estimated 65% of the 10 billion eggs it produces every year.

About 180 poultry farms in the country have been temporarily shut while investigations are held.

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An independent review looking at ways to reduce energy costs has been launched by the government.

The study will examine how the UK can keep household bills down while also meeting its climate change targets.

Oxford University professor Dieter Helm, who is carrying out the work, said he would “sort out the facts from the myths about the cost of energy”.

The launch comes just days after British Gas raised electricity prices by 12.5% for 3m customers.

The study, which is expected to be published in October, will look at the key factors affecting bills – including energy and carbon pricing, efficiency measures and regulation.

It will consider how costs can be reduced at all stages of the energy supply chain, as well as the impact of new technology on the sector.

• How to switch energy supplier

However, it will not examine whether to introduce a cap on energy bills, which was a pre-election pledge by the Conservatives.

Professor Helm said: “My review will be independent and sort out the facts from the myths about the cost of energy, and make recommendations about how to more effectively achieve the overall objectives.”

The government says it is already looking at ways to cut bills and has called upon the energy regulator Ofgem to use its existing powers to reduce prices.

The regulator said it is considering extending a price cap on energy bills to more households on low incomes.

Will Hodson of the Big Deal energy switching group said the review was “kicking the can down the road” and said consumers needed an immediate solution to the rising costs of energy.

He added that households which were constantly switching providers were getting the best deals, but loyal customers were paying significantly higher prices, as they were on a standard variable tariff which fluctuates.

Business and Energy Secretary Greg Clark said: “All homes and businesses rely on an affordable and secure energy supply and the government is upgrading our energy system to make it fit for the future.

“We want to ensure we continue to find the opportunities to keep energy costs as low as possible, while meeting our climate change targets.”

‘Cold comfort’

Lawrence Slade, chief executive of trade body Energy UK, said he welcomed “greater transparency” over energy cost as the UK moves to a decarbonised energy system.

“Using our energy as smartly as possible is critical so energy efficiency must be a national infrastructure priority,” he added.

Consumer group Which? said the review will be “cold comfort” to many households already overpaying on their energy bills.

Alex Neill from Which? said: “Consumers need to see urgent action from the government and regulator to tackle the lack of competition in the market and to ensure they are getting a good deal.”

Announcing the rise in electricity prices, British Gas owner Centrica said it was one of the last suppliers to raise its tariff and the move was a result of transmission and distribution costs and the costs of government policy.

But the government said its policy costs “could not explain” the rises.

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On New Year’s Day 1909, more than half a million people aged 70 and more, who had worked all their lives, had passed a means test and were of good character queued up at their post offices for an old age pension of five shillings a week (25p) – around £20 in today’s money.

The pension paid more than a century later is very different. Today nearly 13 million people – men over the age of 65 and women currently over the age of 64 – receive the state pension. A full one is around £160 a week (£8,300 a year) and one in seven pensioners – close on two million people – survive on nothing else.

It costs more than £100bn a year but those costs will rise in the coming decades. The Office for National Statistics projects that the cost will double to £200bn by the mid-2030s and and double again to £400bn in the 2050s.

The reason is simple, according to Michael Johnson, a research fellow at the think tank the Centre for Policy Studies.

“From 1940 to 2010 the state pension age didn’t move at all. In 1940 it was 60 for women, 65 for men, as it was in 2010,” he says.

“But life expectancy over that 70-year period had increased by around 17 years, so we are faced with a fundamental problem that this is something we should have addressed a very long time ago and didn’t and therefore to address it now makes it much, much more challenging.”

• State pension age rise brought forward
• Reality Check: How much does pensions triple lock cost?

Although the state pension is hard to live on alone, to buy an equivalent index-linked income from an insurance company would cost more than £250,000. Investment platform Hargreaves Lansdown estimates that to save that much would require £300 a month for 40 years.

Can we afford to give all workers a pension that generous?

The European Union collates the data on pension spending. On that measure, in 2020, the UK will spend 7.4% of its national income, or GDP, on state pensions. That puts us 25th out of 28 members, well below the average 11.2% of their GDP.

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France, in the middle of the table, has compulsory pensions that replace 56.8% of earnings for someone on average pay. It will spend 14.6% of GDP on them, double what the UK spends. Internationally, we are misers not spendthrifts.

Things look a bit better for the UK in another OECD table which counts all pensions, including occupational and personal ones too. Then we come 22nd out of 34 for those lucky enough to have a pension through their job.

Auto-enrolment is now extending pensions at work to millions more. It counts as a compulsory pension so that will push us a few rungs up the first OECD table but not many.

Ms Queisser says: “We’ve looked at what would happen if the UK had the auto-enrolment scheme as a mandatory scheme, and then indeed the UK would move up to 22nd or 23rd.”

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State pension calculator – check your age and entitlement

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Michael Johnson is unimpressed by the international comparisons. He believes we cannot afford the state pension. GDP estimates, he says, are uncertain and countries that spend more than the UK may not be able to do so for long.

He points out that the National Insurance contributions paid into the National Insurance fund are not always sufficient to cover the cost of paying out pensions. As a result, in 2014-15, a Treasury grant of £4.6bn was required to plug the gap, so what was going out was larger than what was coming in. The following year, 2015-16, that grant had risen to £9.6bn.

He also believes a fixed pension age is an unfair lottery. Some would draw a pension for 10 years, others for 30, but all pay the same National Insurance contributions.

As an example, he says, imagine two 65-year-old men, one living in Chelsea in west London and the other living in Tottenham Green in north London.

“The life expectancy of the 65-year-old Chelsea man is around about 88. For Tottenham Green man it is about 71.

“So Chelsea man will enjoy the state pension for about 22 years and Tottenham Green man will enjoy it for approximately five. That seems extremely unjust to me.”

The growing cost of the state pension – albeit low by international standards – has led some to suggest that it should be means-tested once more.

This could be done either by limiting it to those with an income below the current limit to get means-tested help under the present system, or by taking it away from those who are better off – perhaps aligning it with Child Benefit which is progressively taken away from parents with an income above £50,000 a year.

Listen to more on BBC Radio 4 Money Box’s series on The Death of Retirement – will the State continue to pay our pensions?

With an estimated 99.95 percent of small business owners and entrepreneurs opting for debt financing, knowing how to prepare your business for a loan application is a must.

Among the documents that a lender will review, your personal credit as well as your business credit are criteria that play an important role — both can either assist, or in some cases obstruct, your ability to secure financing.

Let’s review some key strategies that everyone needs to know about personal credit score vs business credit score.

Personal credit score vs. business credit score: what’s the difference?

These two scores are often independent of each other and they measure different things. Your personal credit score measures your creditworthiness — your personal ability to pay back a debt. On the other hand, a business credit score measures the ability of your business to meet its own financial obligations. Let’s take a look at each one in a bit more detail.

Personal Credit

What it is:

Your personal credit score helps a lender evaluate whether or not to offer you credit, how much to lend you and what terms (e.g. APR, requirement of collateral) to use. While different personal credit scores have different ranges, one thing never changes: the higher the score, the more financially trustworthy a borrower is considered to be.

Who and what determines your personal credit score:

Using your Social Security Number (SSN) and your credit history, the three credit reporting bureaus (Equifax, Experian and Transunion) assign your creditworthiness a score, all using variations of the FICO Score algorithm.

Ranging from 300 to 850, the FICO personal credit score is made of five key components:

• Payment history (35 percent): The most important factor in a FICO score is your payment history to lenders. Your ability to pay on time is the first thing that lenders take a look at.
• Amounts owed (30 percent): The whole point of seeking a high credit score is to be able to borrow money when you need to. Owing money doesn’t necessarily make you a high-risk borrower but maxing out your credit cards and carrying a high balance on them for several months will negatively affect your FICO score.
• Length of credit history (15 percent): It takes time to build a good credit score. In general, the longer a credit history, the higher a FICO credit score.
• Credit mix (10 percent): There are different types of debt, including retail cards, credit cards, car loans and more. Without some form of debt, FICO can’t determine your score. So, you need to responsible use credit cards and installment loans to start (and build up!) your score.
• New credit (10%): FICO believes that opening several new credit accounts within a short period of time increases your credit risk.

Tips to boost your personal credit score:

1. Automate your credit payments. Since paying your lenders on time represents 35 percent of your FICO score, sign up for automatic payments for all of your credit accounts. Most lenders allow you to set up auto payment using your bank’s routing number and account numbers. Another option is to schedule payments using the bill payment service from your bank or a third-party payment processor, such as Mint.com or MyCheckFree.com.
2. Adjust your due dates. You don’t have to settle for a due date that is poorly timed with your paycheck. Except for those of mortgages, most due dates can be adjusted with a quick phone call. Depending on your lender, the change may take two to three bill periods to take effect.
3. Aim for a credit utilization ratio of 30 percent. Whenever you can, pay off your credit cards in full month after month. If that’s not possible, then aim to have a balance of no more than 30 percent than your credit limit for each card. A credit utilization ratio of under 30 percent across all cards is a sign for lenders that you’re managing your credit responsibly.
4. Handle new credit carefully. Chasing too many of those deep discounts for opening store cards will eventually catch up with you. Every time that you open a new account, your FICO score takes a small hit. So, open a new card only when you really need to.
5. Don’t close oldest accounts. The number of years that you have held each one of your cards and debts affects your length of credit history. By closing your oldest account, you may dramatically reduce your length of credit history and negatively affect personal credit score.
6. Order your free credit report every 12 months. FICO and all lenders use your credit history to determine your creditworthiness, so making sure that your credit report is accurate is a must. Every 12 months, request your credit report. Verify that all you personal data, including SSN and mailing address, and listed accounts are correct. To dispute any inconsistencies, follow the instructions on your credit report or file a dispute online with Equifax, Experian or TransUnion.

Business credit

What it is:

Also known as a trade or commercial credit score, your business credit score helps financial institutions to determine whether or not you’re a good candidate for debt financing. A high business credit score can improve your chances of obtaining a business loan — and likely, you’ll be able to receive much more favorable terms. Alternatively, a low score can mean higher interest rates, and in some cases, even prevent you from being eligible to borrow.

Additionally, vendors and suppliers often check your business credit score when considering whether to invoice your business on a Net 30 or Net 60 basis.

Who and what determines your business credit score:

Just like a SSN for individuals, an Employer Identification Number (EIN) allows the IRS and the credit reporting bureaus to track businesses. If your small business is incorporated and has an EIN, registering it with Equifax, Experian or Dun & Bradstreet is the first step to establish your business credit score.

• Equifax: Using your business’ payment history, ratio of available credit to utilized credit, age and size, demographics and public records, Equifax scores your small business credit in a range from 101 to 992 on the Small Business Credit Risk Score for Financial Services and in a range from 101 to 816 on the Small Business Credit Risk Score for Suppliers. Equifax takes the small business owner’s personal credit score into consideration as well.
• Experian: Ranging from 1 to 100, Experian’s business credit score takes into consideration similar factors as Equifax. Experian gathers data from lenders and vendors that have extended a credit line or loaned money to your business and compares all of that data to peers in your industry.
• Dun & Bradstreet: Focusing on the one-year payment history of your business, a financial stress score and other data from at least four vendors, Dunn & Bradstreet’s PAYDEX report uses a 100-point scale to rank your business credit.

Tips to boost your business score:

1. Establish credit lines with vendors and supplies. It takes data to create business credit scores and Dun & Bradstreet requires at least four vendors to generate its report. Take the time to build up relationships with vendors and suppliers so that they’re willing to sell you on credit on 30- or 60-day basis. No matter how small a vendor is, he or she may become a future trade reference for your business at the time of a loan or business credit score request.
2. Make timely payments. Return the favor by paying to those vendors and suppliers on time at all times. This will not only help you create a solid payment history but also make those businesses and individuals more likely to report your payment history to the credit reporting bureaus.
3. Aim to cover all your annual debt obligations with net income. Just because your business can borrow up to $100,000 from a credit line, does not mean you should borrow the full $100,000. A useful rule of thumb is that your net income (revenue after subtracting all costs of doing business) should be at least equal to your annual debt obligations. Showing that your business’ cash inflows is sufficient to meet its obligations has a positive impact on your business credit score.
4. Request your business credit report today. Having a have a couple of months — instead of a couple weeks — makes improving your business credit a more feasible project. Building business credit takes time, so it’s useful to get a picture of what is your current score and what are areas for improvement. Some credit bureaus, such as Experian, provide you reason codes that help explain your score and provide advice on how to improve it.
5. Track your business credit every quarter. That’s how little it can take for your score to change and can give you a heads up on a damaging report from a vendor or on the effects of an increase in your utilized credit. Take the lessons from every credit score report to learn how to become the type of borrower that a lender caters to in the future.
6. Check your report for inaccuracies. If you find an error in your report, report it right away to the relevant bureau using supporting documentation. Pay particular attention to errors in information under public records. Bankruptcies, judgments from debt collection lawsuit, and creditor’s legal rights to seize your property in the past seven years on your report could lead to an automatic denial of your loan application.

Do I really need a business credit score?

Yes, because a business credit score helps you in separating your business from your personal finances. During the application process, your underwriter will take a look at additional documentation, such as bank statements or business credit reports. Keeping your finances separate is important for two key reasons.

• Tax purposes: While you can claim an extensive list of small business tax deductions, you need to provide appropriate supporting documentation. In case of an audit, you need to be able to clearly demonstrate that every single deduction was an actual expense directly related to your business operation. If you’re unable to clearly demonstrate that, you may be subject to penalties, including negligence, late payment and fraud.
• Liability for debts: If your business is structured as a corporation or limited liability company, documenting that your finances are separate prevents a creditor from having a stake on your personal assets to satisfy a debt.

How to do it:

1. Establish a separate legal entity for your business. Choose a business legal structure that works best for your unique situation. If you’re considering to form a corporation, consult with a lawyer and accountant to have a good understanding of applicable rules, including those for tax reporting, compliance and operation.
2. Apply for an EIN online for free. You will need this to stay on top of your small business finances, report to the IRS and establish your business credit score.
3. Establish a business credit score. Because it’s supporting evidence that demonstrates your business’ payment history. It doesn’t hurt that it will also help you secure the necessary debt financing to fuel the growth of your business.
4. Open a business checking account and credit card. Using your EIN, establish separate bank accounts and credit cards for your business. The statements from these accounts are appropriate supporting documentation to keep track of business expenses.
5. Hire a professional bookkeeper or accountant. Commingling your finances can backfire at the time of tax filing or loan application. It’s possible that you misunderstand what would be considered personal debt.  Could be you have business debts you’ve forgotten to include in your financial statements. Hiring the services of a professional bookkeeper or accountant enables you to focus on the core operations of your business. It also helps you better meet compliance requirements. When evaluating bookkeepers and accountants, pay close attention to their schedule of fees and range of services.

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More from Due

Eurie Kim understands what it takes for a company to go from an idea to a living, breathing, money-making reality.

Kim is the general partner of Forerunner Ventures, a venture capital firm focused on early-stage investments in companies that want to take the world of retail and ecommerce by storm.

Prior to her role with the fund, Kim was a management consultant at Bain and Company, an investor at Castanea Partners and founded a luxury leather goods brand called MAVN. She also sits on six of the boards of companies Forerunner has funded.

According to a study by TechCrunch last year, 7 percent of partners at the top 100 VC firms are women. Another 2016 report from the National Venture Capital Association and Deloitte University Leadership Center for Inclusion found that 11 percent of investment partners at 217 firms are women. That makes Forerunner’s team of six — five women and one man — something of a rarity.

Related: New Data Illuminates VC Bias Against Women

Kim says that the core of the firm’s philosophy is being active and engaged investors. “We always joke that being a venture capitalist also means you have to be a therapist. It’s the ability to build that relationship,” she says. “It’s not just about being smart or giving advice, but can you be the first call even when things are bad? Especially when things get bad.”

Since the firm was launched in 2012 by founder and managing partner Kirsten Green, it has backed companies such as Dollar Shave Club, Jet.com, Away, Glossier, Warby Parker and Zola.

More than anything, for entrepreneurs who are just starting out and want to bring their ideas to a venture capitalist, Kim says you need to understand why you are the right founder to grow this business and why this venture is important to you. And it can’t just be because the numbers appear to line up.

“We get a lot of smart people, people who were at the top of their MBA classes. They think [an idea works because] this is a big market or a good business model. But when things get really hard, are you going to be excited? If you quit because it gets hard, then we all fail,” Kim says. “It’s not just about being smart and identifying opportunity. Do you realize how many years you’re going to have to dedicate to this and maybe fail anyway? So why would you do this if you weren’t super passionate?”

Entrepreneur spoke with Kim to get her insights on when you should give yourself permission to take the big leap and why she answers every email — even if the pitch isn’t a good fit.

Related: Only 17 Percent of Venture-Backed Startups Are Led by Women

In your experience, when should an entrepreneur seek out VC support vs. other types of funding?

You have to be willing to grow a gigantic business. No venture capitalist puts money in hoping that they don’t ever get the money out. There’s only a few ways you can get the money out. One of of them is you get acquired for oodles of money. There is a scenario where it’s a good situation — you become a nice business that makes good money. But that’s not venture. The plan is go big or go home. The clear medium path is not venture. The bold, “we can be a publicly traded company” — that’s venture.

So what’s the difference between the two paths? It’s what product differentiation you have, but it’s also how much tenacity and ambition does the founder have? Oftentimes we ask the question, what does success look like for you?

If someone says, “I think we can be $100 million in five years,” [but for venture] $100 million in five years isn’t fast enough. One hundred million dollars in two or three years? Now we’re talking. It’s not crazy, it’s just, what do you have to believe to get there? It isn’t for everybody. If you do take venture funding, you can almost certainly stay in business if you continue on that trajectory. But with venture, you could be going OK, but then not good enough. So no one will give you more money and you go out of business. The pressures are really different.

Related: ThirdLove Founder Heidi Zak on How to Develop Authentic Connections

What advice do you have for women entrepreneurs about advocating for themselves and their ideas in a fundraising environment?

You’ll see a male entrepreneur and a female entrepreneur pitching the same idea. The male entrepreneur will come in and pitch with so much more confidence and so much more aggressively. Whether or not they are flat out lying or wrong about those numbers, you get so absorbed in the story and think, this person is going to crush it. The female entrepreneur is often really thoughtful, but conservative. As a result, [that approach] makes it feel like it’s a small idea. They’re going to hit those numbers, but if they hit those numbers, it’s not that exciting. It’s OK, but it’s not a venture-backable business.

That conservatism isn’t fair because women tend to want to over-exceed expectations and they set the bar low and then they do a lot better. Men tend to go big and if they come up short they just have a bunch of excuses as to why they came up short, like the market changed a little.

But as a result, you get somebody much more excited when you’re talking about the big vision and you’re going to go for gold. I think that is, time and again, the situation, so I’ve given female founders the feedback that you need to crank up your projections. You’re trying to hit better than what you just showed me. If you can’t, you shouldn’t quit your job and do this.

Related: 10 Facts That Will Change How You Think About Opportunity and Entrepreneurship

What advice do you have for people who have never been entrepreneurs before who want to start something new?

If you can’t stop thinking about something and you are honestly OK with making no money, that you just have to do this one thing, then figure out what is the minimum viable product you can build to start testing it out and go and do it. But have a backup plan. You don’t have to willy nilly quit everything just to prove a point.

[Ask yourself], what is it that you’re trying to accomplish? Can you do that with maybe saving 20 grand for the year, figuring out what your prototype looks like, building that on the side and then getting some preorders? There are a lot of ways to do this in a scrappy fashion. We really appreciate that, because a lot of people come in and say well, I need $3 million to start my company. Do you? Before you start taking other people’s money, figure out if you really have something.

Related: The First African-American Woman to Travel to Space Shares How She Finds Solutions to the World’s Biggest Problems

What do you think sets Forerunner’s culture and approach apart from other firms?

There is a Forerunner way of doing things. [We are] super responsive, really humble and really respectful of founders that come in. They’re pitching you their dreams. Whether or not it is the dumbest idea you could possibly imagine, it is still their dream and it’s an honor to be on the other side of the table when you listen to somebody pour their heart out. They’re hoping that they create something special and magical. Whether or not you invest that day is going to make or break their entire idea. It’s a lot of responsibility. We reply back to every single email. We do it with courtesy and we give feedback.

Why not help them? If they honestly shouldn’t be starting this company, I’m just an opinion of one. But if I say, I’ve seen this a few times and these are challenges, maybe it will help you start a different company. Maybe you’ll be an awesome executive at some big company and then one day come help us in another way. The world is so small. That attitude is really important.

Etsy didn’t start a revolution, but it sure as hell capitalized on an emerging market. Today, makers and creators of everything from sustainably sourced jewelry to calligraphy-laced invitations can call themselves true entrepreneurs. And Etsy is collecting millions in the process — especially with big names like the singer Adele announcing that they’re jumping in to scratch an entrepreneurial itch.

As all these hustles move from the sidelines to the front lines, innovators everywhere are discovering the beauty of being their own bosses from the comforts of their own kitchen table (or couch, patio or bedroom). Having a home-based businesses may not have been the dream of past generations, but it’s quickly become a reality for up-and-coming workers.

Related: The ‘Etsy Economy’ and Changing the Way We Shop

It all makes sense. Who wouldn’t want to avoid traffic frustrations, clock-punching and feeling as though they’re earning for someone else? Yet, despite your excitement at getting started, it’s important — especially if you’ve never run a company — to carefully prepare for this adventure of a lifetime. Otherwise, they could find yourself knee-deep in debt and confusion.

For every at-home challenge, a solution awaits

Inventors and producers who have turned themselves into home-based entrepreneurs understand the innate challenges of working from home, such as barking dogs, ringing doorbells and impatient toddlers. Such nagging distractions can make your days more chaotic than angelic.

But those issues are to be expected. Less talked about are the bigger woes many people face in adjusting to a merged home-work lifestyle. Fortunately, even the toughest of these have smart fixes:

Problem 1: Getting goods from here to there

Residential life affords only so many delivery and transportation opportunities, which limits many entrepreneurs’ reach. Thankfully, easier, faster and better options are available. Consider the case of Cleveland-based entrepreneur Fred DuBois. DuBois struggled to meet free shipping demands via FedEx ground, with daily costs soaring upwards of $500 and destroying his bottom line.

However, the solution of diversifying with multiple carriers (depending on the customer’s location) allowed him to cut his overhead cost in half.

By comparison-shopping the carriers available, you can significantly lower costs. Even small-scale businesses have the power to create bidding wars among vendors that will help keep these expenses to a minimum. Additionally, driverless cars and, eventually, drones, will soon allow home-based entrepreneurs to do more. Services like Uber and the fractional use of delivery trucks and off-site storage facilities, meanwhile, can provide further reasonable options to this genuine issue.

Problem 2: Tracking business performance

Every business owner needs to track data, and the best way to do that is with a strong software package focused on analytics. Still, KPMG International reports that only 51 percent of C-suite executives actually support data and analytics at their organizations, according to their subordinates responding to the survey.

How could a home-based entrepreneur hope to have any better success?

The trick is to find an intuitive platform that won’t break the bank. Systems such as the Google Analytics Application Gallery are completely free to use and offer a wealth of information that solo entrepreneurs could never gather themselves. Artificial intelligence-based platforms are starting to allow entrepreneurs to better gauge how their small businesses are operating; and these products are getting more economical all the time, making them reasonable choices even for solo founders.

Problem 3: No direction

Did your Etsy business spring up overnight? Have you hit the ground running, only to realize you’re barefoot with no shoes in sight? The answer is a plan. A formal business plan would be best, but if you don’t have the expertise, time, patience or desire for one, you should at least have an informal written document outlining where you were, where you are and where you want to go.

A study by Startup Genome determined that many failed businesses it studied had attempted to scale too quickly, proving that a sensible, conservative growth plan is essential. The more work you put into the plan, the better. Consider your competition today and tomorrow, and frequently check in with your plan to see how you are progressing.

Related: Growth-Hacking 101

Problem 4: Wrangling taxes and payments

Did you know that your business should ideally have an identity separate from your own that is registered with your state and possibly your city? You’ll also need to contact the IRS to get a federal ID number so you don’t have to use your personal Social Security number. That way, you can more easily navigate tax time.

Oh, and remember to set up quarterly tax payments with the IRS so you aren’t shocked when April 15 rolls around. The New York Times reported that unpaid taxes nationwide reached $458 billion in 2016; the paper also noted that the tax agency is on the lookout for violators, via audits and enforcement actions to regain lost cash flow; and the IRS often turns to entrepreneurs for those missing funds.

Next, there’s the daunting task of paying employees. Your friend can supply you with services, but he or she will need to be listed as an employee or independent contractor. Neither type is innately better or worse, but you — with or without the assistance of an accountant — will have to produce proper W2s and 1099s for taxes.

Problem 5: Broadband issues

When the broadband goes out, what will you do? Will you simply hope that your iPhone’s personal hotspot saves the day? Don’t count on fulfilling your responsibilities if you don’t have great broadband at your fingertips. A survey by the British Chambers of Commerce found that 99 percent of the businesses the association surveyed saw reliable broadband as essential, yet one-fifth of those businesses found their connections to be unreliable.

As a solution, consider paying for two broadband providers, such as Verizon Fios and Comcast. Yes, this is costlier in the short term, but it can keep your business afloat and hone a professional image for the long haul. No more worrying about problems with audio, video, screen-sharing or keeping up with social media management because of dropped service.

Problem 6: All those phone calls

Do you give clients your cell phone number? Your home number? Many entrepreneurs feel squeamish at the thought, and for good reason: It’s simply wise to keep the personal and work separate. Plus, if you build a team of employees, you might be better off with a cloud-based phone service that keeps team members unified on one business phone-service account. Never underestimate the power of a first impression: Having a reliable phone system grounded by technology gives you an image of success.

Related: This Teen Paid for College by Selling on Etsy. Here Are 5 Ways She Did It.

The acceptance of home-based businesses is on the rise, but that doesn’t mean you should relax your standards as an entrepreneur. Sure, it’s fine to be transparent with clients, but commit to showcasing an unwavering level of discipline, regardless of whether you’re home in your pajamas.

Can you imagine leaving your home, risking it all for the promise of a better life in a new country? It’s no accident that immigrants represent a significant percentage of new businesses in the U.S. They’re eager to build their own version of the American dream. Founder and chairman of Buffini & Company and author of The Emigrant Edge: How to Make it Big in America, Brian Buffini, shares seven core characteristics that successful immigrants have in common. Learn how you can apply these traits to achieve prosperity.

• [00:00:00] American Dream Instills Entrepreneurial Edge
• [00:05:57] Gratitude vs. Entitlement Breeds Success
• [00:11:30] Personal Growth: Develop Your Most Valuable Asset
• [00:18:20] The Law of Harvest: Reap What You Sow
• [00:26:47] Achieve Long-term Wealth With Compound Interest
• [00:33:21] Know Your History, Shape Your Future

Related: The Struggles of Success: Managing Growth and Finding Balance

Discover more about segments and guests below . . .

[00:00:00] American Dream Instills Entrepreneurial Edge

According to a Harvard Institute of Politics survey, 48 percent of millennials believe the American dream is dead. Outraged by this statistic, founder and chairman of Buffini & Company, Brian Buffini, created a modern guidebook to thriving in the U.S. The Emigrant Edge: How to Make it Big in America distills seven intrinsic traits immigrants possess which give them an edge in contemporary business. (Psst, you don’t have to be a foreigner to use these habits to your advantage). 

[00:05:57] Gratitude vs. Entitlement Breeds Success

From bold investing strategies to a voracious appetite for learning, immigrants exhibit hallmark characteristics and work ethic. Buffini gets granular on one such quality, a deep appreciation for a prosperous life in the land of the free. To underscore this point, Buffini tells a story about the life and death of WWII refugee, Peter Petrasek. Petrasek and his wife Joan made the press wire after bestowing the U.S. Department of the Treasury with their entire life-savings: $847,215.57. Hear this tremendous tale of gratitude now.

[00:11:30] Personal Growth: Develop Your Most Valuable Asset

When moving to a foreign country, willingness to master new skills and a different culture comes with the territory for immigrants. This eagerness to learn is an integral stepping stone to affluence, according to Buffini. To prosper, you must embrace America’s rich tradition of personal growth and development beyond formal education. When coupled with a do-whatever-it-takes attitude, you’re sure to catapult ahead of the competition. Are you ready to roll up your sleeves and get to work?

[00:18:20] The Law of Harvest: Reap What You Sow

See ya later, get rich quick schemes! It may take decades of sacrifice, hard work and discipline to become an “overnight” success story. It’s going to be challenging and you’ll often need to forgo unnecessary indulgences, but delaying gratification in the short term will yield greater rewards. Buffini explains why Thomas Edison, B.B. King and the humble bamboo farmer should be your next business mentors.

[00:26:47] Achieve Long-term Wealth With Compound Interest

Do you feel comfortable monetarily? Take warning: Complacency is the No. 1 threat to building fortune. We discuss the glory of compound interest, risk management and long-haul investing with Buffini. Discover how you can tap into a bolder investment strategy, today.

[00:33:21] Know Your History, Shape Your Future

Our actions have a ripple effect. Just as you influence others, your ancestors have helped shape your life. If you’re searching for a dose of motivation and inspiration, look no further than your family tree. Buffini urges listeners to trace their genealogy back to a generation of immigrants. Remembering where you come from, Buffini says, will ignite the entrepreneurial spirit within you. Are you ready to stoke the fire of your career? 

Entrepreneur Radio, hosted by award-winning broadcast professional, Alan Taylor, equips fans with the critical information necessary to grow their business through practical advice and thought-provoking interviews. Tune in live on Saturdays 2 p.m. EST/11 a.m. PST and Sundays 10 a.m. EST/7 a.m. PST and listen to weekly episodes on demand on Entrepreneur.com.

Tired of being shut down by the “big guys” Andreas Koutsoudakis of Trading Table needed to find a way for small business restaurants to get up to speed with larger corporations. After deciding to tackle the ordering and operating backend systems, he set out to seek advice from the “big guys” themselves. All wished him luck to his face but when it came time to buy his product they turned him away. In this episode, learn how to not take no for an answer and how to turn that no to a yes. 

Watch the full episode on Alley’s YouTube channel.

Related: How To Satisfy Your Customers When Your Product’s Delayed

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