What I Learned in My First 365 Days as an Entrepreneur

Even with a cool 18 months on the books the designation as business owner, much less founder, still feels as ill fitting as a speedo. Just as ill fitting? The idea that insights I’ve gleaned so far might help someone else who has just made the same lonely leap feels a little strange. And yet, the road from an office in my kitchen to a "real" office with a team of 20 has taught me so much, I can’t help but hope my lessons learned will assist someone else pursuing a similar path. With that in mind, here are six of the six thousand things I wish I knew back when I was sitting in my kitchen wondering how it would all shake out.

You’ve got this. Early on, I visited bookstore after bookstore, buying a dozen business books (and skimming a hundred more in-store) in hopes of addressing the knowledge gap I was certain I was lugging around. That was an incredible waste of time and energy. Those insights, though well crafted and well intentioned, almost never related back to my situation in a meaningful way. That’s why it was so important to stop trying to find a silver bullet and instead focus on the task at hand, embracing the temerity that comes with it. Turns out that building an airplane and flying it at the same time isn’t that bad of a business plan. 

And when you do have questions, it may be better to turn to people, not books, for insights. Look for other founders that have gone down the same path as you have or mentors that have years under their belts.

Always bet on talent. If I could take back any investment of emotional energy over the past year, it would be the investment in wondering whether to pull the trigger on talent during times when cash flow was tight (which I later found out was always).

In the end, I’ve ended up making the gamble, and each time I’ve been rewarded in ways I’d never have thought possible. It’s hard finding the people whom you know can step in and make a difference, which means that it’s imperative that you grab them up when given the chance

Addition by subtraction. To that end, I'll never again let someone who isn't a good cultural fit drag down our team. I waited too long in one instance, only to see an immediate benefit after making a cut. It wasn’t just a cultural lift that we experienced, our actual work got better once the pallor was lifted -- with measurable results the very first day after the change. It was a hard lesson but one I’m grateful to have gotten early on.

Thanks (for nothing). I went to 10 banks in the first month, looking for a line of credit and a bit of financial air cover. Turns out that banks don't quite like the service industry, much less a youngster with little other than seven figures of purchase orders to show. I can still feel the doors slamming in my face. While the money it didn't come to me, I later realized it was a blessing in disguise. Not having that security blanket made me think scrappy from day one -- and to adopt financially conservative habits that I’d never ever had before. Sure, it would have been great to get a check on day one, but it turns out we never really needed it anyway.

The best new-business strategy? The business. It might sound like a cliché, but it has emerged as a core truth to the business: Doing great work is the best new-business strategy there is and investing in the work vs. fancy marketing or a biz-dev staff has been central to our success. I always thought the hard part would be getting new customers, but I was wrong. The hardest part is keeping the level of excellence up -- every single day -- in a way that inherently drives new business, keeps clients happy and the team engaged and energized to do great work.

Ask for feedback. And then ask again. There is an HR saying about how having an open-door policy doesn't mean that people automatically walk into your office to talk -- an insight that has been spot on. It has taken much more proactivity than I thought it would to get people to share their views, especially given our transparent culture. That said, giving team members every avenue I can to share their feedback with me has been an incredibly worthy endeavor, as I’m always pleasantly surprised by how actionable their insights are. 

I’m looking at an editing room floor with another couple dozen tidbits, from the value of supporting greater good, the importance of getting everything -- and I mean everything -- in writing up front, when to forgive debt and when not to, and on and on and on. But perhaps it’s best to end with the most important thing I’ve learned. It’s ok to stop, slow the spinning wheels of future casting, and go get a nice cold beer. In fact, it’s advice I think I’ll take myself this very moment.

From Entrepreneur

Starting Up Is Hard. Here Are 8 Ideas to Make It Easier

You cannot control how the world will react to your next idea. But there are a surprising number of things you do have control over.

This post is going to be all about you, but to get there I have to spend about 42 seconds talking about me.

I'm in the midst of an 18-month experiment in which I will try to reinvent my career. (The details why are boring.)

I knew going in the reinvention process was going to be difficult. And I also knew there were going to be countless false starts and failures.

And I thought I knew how to handle those failures.

I would follow the advice I had given people for years: I'd make sure that the failures (should they occur) would not hurt me too much financially or in terms of opportunity cost--it might have turned out that the time I spent on X (that didn't work out) would have been better spent trying Y (which might have been a smash).

Well, I was right about the approach, but wrong about having a complete handle on how to deal with the setbacks.

As a result, I have come up with a list of rules that I am now following. They probably will evolve before the 18 months are up, but here's where they stand now.

The idea of taking small steps was right. As was never risking too much money. And so they remain my first two "rules." Here are six others I have come up with.

3. No one cares about your journey but you.

When you are trying to start something new, it would be nice if people were supportive. I have found that they are not. No one has been rude, evil, or mean. People don't care enough to invest in that much reaction. They are concentrating on their lives, and not mine. Understanding that makes the rejections (slightly) easier to take, which leads me to the next point.

4. You are allowed to feel bad for 14.2 minutes.

I simply overlooked the fact that failure makes you feel bad, no matter how you try to rationalize it. Since saying "well, don't feel bad" doesn't work, I now give myself about 15 minute to wallow, and then I try to move on.

5. Take even smaller steps.

I am the world's biggest advocate of taking tiny steps toward your goal, pausing after each one to see what you have learned, and bundling that learning into the next step. I have had that idea confirmed for me during this experiment. But there is a natural tendency to always want to move faster, and that is where I have gotten into trouble. The best way to deal with failure is not to experience it. Taking even smaller, slower steps mitigates potential damage.

6. Assume no money is going to come in.

I figured things might be slow at first, but I should have been even more conservative. The assumption going in should have been that there would be no money coming in during the entire time I was getting underway.

7. It's okay to keep the old stuff that works well.

Just because you are heading off in a new direction doesn't mean you have to jettison everything that you did well in the past. Keep a strong core, if you can, and go from there. Efficient back-office strategies, for example, continue to work well no matter what you are doing.

8. Yes, you certainly want to learn from failure.

But make sure it really is a failure first. Just because the first potential client, or first couple, said no doesn't mean it is truly a bad idea. Only give up on an idea when there is a clear pattern of rejection.

Keeping these thoughts in mind are making my journey a bit easier. They may help you as well.

From Inc. Magazine

How to Know When You Should Start a Company

Five questions you need to ask yourself before you make the leap.

So it has come to this, eh?

Your day job is getting a little dull, the drive across town to the corporate office is a total bear, you can't seem to stop thinking about that new app. Having an idea and an incentive is one thing, but knowing when to start a company is often the hardest part. Should you wait until you have all of your debts paid off? Until you have a more reasonable mortgage? Until the kids are finally out of the home? There are many reasons to start a company. The challenge is knowing when. Here are a few questions to ask yourself.

1. Are there people you know who will benefit?

I'm convinced one of the best reasons to start a company has nothing to do with market trends, or your personal motivations, or even financial gain. Starting a company might benefit people in some tangible way. Let's say you have an idea for a water filtration device that will help people in developing countries. Or maybe it is an app that will finally solve a problem for accountants. Well, why are you standing still? Some of the greatest joys you will experience in life will come from helping people, and a company makes that possible on a grand scale. It's also important to think about whether people you hire will benefit--do a lot of your friends and business associates need a job? That's another good incentive.

2. If you wait, will someone else steal the idea?

This might sound selfish at first, but waiting to start a company might not make sense if someone else swoops in and "borrows" the idea. The key is to determine why that business idea is novel and worth pursuing, which might require some market research. However, don't let the research fool you--if your gut says the idea is novel, it is worth pursuing. You'll need that motivation once you get started. Market research won't create the motivation--it has to come from a place deep inside of you and spur you on. If you embrace the idea as profound, and you race to realize the idea before anyone else, you'll have the personal incentive to keep pursuing it. It's just the fuel you'll need.

3. Is the call so great that you can't not start a business?

Some things in life can't wait--like marriage or getting a college degree or paying off debt. A few of us have an insatiable desire to start something. If you are so firm in your plans to start a company, and absolutely nothing is going to change your mind, you have the motivation you need. Do it. Get the funding, ask friends for help, design a logo. That nagging sense that you have no other option (and I don't mean because your bank account is empty or you are living on the streets) is exactly what you need to run with the idea. If the insatiable desire does not exist, you might be on a fast track to failure.

4. Is your personality a good match?

Skills are important, but they can be learned. Your DNA determines your personality. If you are someone who tends to need constant direction or who gets stuck easily on a myriad of details or who needs some assurances about success, you might be better off sticking with a normal job. Being someone who can't handle the insecurities and intangible nature of starting a company doesn't make you a bad person--it just means you are better off working for someone else. Entrepreneurship is a special kind of risk. If you are the last person in the world who would ever go bungee jumping or try that spicy marinara sauce at that new Italian eatery across town, it's possible you won't enjoy waiting for checks to come in the mail every day or depending entirely on Quickbooks to run a business.

5. Do you know how to persevere through adversity?

The final test for those who are thinking of jumping into entrepreneurship is also the most important one of all. You have to be relentless. The drive to succeed is only a part of the equation. Even more important? The drive to persist. Great companies are started by people who want to succeed, and that's important. Lasting companies are built by people who want to persevere. You'll be dealing with a ton of diversity--the brother-in-law you hired turns out to be a deadbeat, the tax program you used didn't warn you adequately about home-office deductions, the thumb drive you left at Starbucks ends up in the hands of a well-known criminal and he is now demanding a payoff. The desire to succeed won't help you through those scenarios. Only persistence and perseverance will.

From Inc. Magazine

How To Build Habits That Could Make You Rich

Regular exercise is a habit worth building.

According to a 2006 Duke University study, 40% or more of our daily activities are habits.

Habits have a very important purpose: They save the brain from work by relegating certain repetitive tasks to a walnut-sized area in the middle of the brain called the "basal ganglia."

By isolating certain repetitive functions to this very small, almost fractional area, the brain frees itself to expand and perform higher level functions. 

Habits control our lives, unconsciously moving us either toward success and happiness or toward failure and unhappiness.

In my five-year study of the daily habits of 233 wealthy people (those with an annual income of $160,000 or more and a liquid net worth of $3.2 million or more) and 128 poor people (those with an annual income of $35,000 or less and a liquid net worth of $5,000 or less), I uncovered ten keystone habits that separate the rich from the poor.

I call them the Rich Habits.

Those who learned the Rich Habits from their parents, mentor, or through the school of hard knocks, excel in life. Those who never learned these habits, and instead are saddled with what I call Poverty Habits, eke out a living, struggle financially, have poor health, and live unhappy lives.

In order to better understand the process of adding and removing habits, it’s important to understand how habits are formed and removed physiologically within our brains.

Habits compete within the brain.

Neurons (brain cells) compete for something called "cortical space" inside our brains. Think of cortical space as brain real estate. Just like there is strong demand for waterfront property, there is a strong demand for this brain real estate. In order to learn a new skill or fact, or introduce a new habit, we must create a new neural pathway inside our brain.

Creating a new neural pathway, however, is not that easy to do. This is because old neural pathways are very greedy, and don’t like to give up any of their brain real estate. They fight to keep that real estate from other intruding neurons. New activities that are trying to create new neural pathways have to compete for this brain real estate with old neural pathways (old activities).

This is why breaking an old habit is so hard. There is a brain real estate war waging inside our heads when we introduce new habits.

When building new habits, think of them as passengers on a train.

Use your old habits to build new ones.

The best way to co-opt brain space taken up by old habits is to stack a new habit on top of an old habit.

Think of an existing habit (existing neural pathway) as a train on a track, except it's inside your brain. If you add your new habit to that same train, as if it were a new passenger, the brain won't put up a fight because you're not trying to take control of the train or the track. You're just taking a ride. When an old habit does not perceive a new habit as a threat, no brain real estate war occurs. And viola, a new habit is born.

Here’s how it works: Let’s say you want to add a new Rich Habit of reading 30 minutes every day for self-education and let’s say you have an old habit of exercising aerobically on the Stairmaster 30 minutes every day. If you were to put a book on the Stairmaster and read that book while you’re exercising, you would form a new joint habit that sticks.

Another example: If you have an old habit of drinking coffee every day and you want to add a new Rich Habit of drinking a glass of water every day, you could drink a glass of water either before or after every cup of coffee. That new joint habit would also stick.

By using this habit formation strategy, you can effortlessly form new, wealth-building success habits that stick. Each habit you add to your life has a cumulative effect. They are like an investment in your success. Over time these success habits move you closer and closer to achieving success in life.

The more good daily success habits you add over time, the closer you get to success. And wealth will eventually follow.

From Business Insider

8 Qualities That Make Great Bosses Unforgettable

I remember all of my bosses. Some were bad. Most were good.

But only one was, in the best possible way, truly memorable.

Unforgettable bosses possess qualities that may not show up on paper but always show up where it matters most -- in the minds and even hearts of the people they lead.

Here are some of the qualities of truly unforgettable bosses:

1. They believe the unbelievable.

Most people try to achieve the achievable; that’s why most goals and targets are incremental rather than inconceivable.

Memorable bosses expect more -- from themselves and from others. Then they show you how to get there. And they bring you along for what turns out to be an unbelievable ride.

2. They see opportunity in instability and uncertainty.

Unexpected problems, unforeseen roadblocks, major crises... most bosses take down the sails, batten the hatches, and hope to wait out the storm.

A few see a crisis as an opportunity. They know it’s extremely difficult to make major changes, even necessary ones, when things are going relatively smoothly.

They know reorganizing an entire sales team is accepted more easily when a major customer goes under. They know creating new sales channels is a lot easier when a major competitor enters the market. They know reorganizing manufacturing operations is a lot easier when the flow of supplies and components gets disrupted.

Memorable bosses see instability and uncertainty not as a barrier but as an enabler. They reorganize, reshape, and re-engineer to reassure, motivate, and inspire -- and in the process make the organization much stronger.

3. They wear their emotions on their sleeves.

Good bosses are professional.

Memorable bosses are highly professional and yet also openly human. They show sincere excitement when things go well. They show sincere appreciation for hard workand extra effort. They show sincere disappointment -- not in others, but in themselves. They celebrate, they empathize, they worry. Sometimes they even get frustrated or angry.

In short, they’re human. And, unlike many bosses, they act as if they know it.

Professionalism is admirable. Professionalism -- with a healthy blend of humanity -- is inspiring.

4. They protect others from the bus.

Terrible bosses throw their employees under the bus.

Good bosses never throw their employees under the bus.

Memorable bosses see the bus coming and pull their employees out of the way often without the employee knowing until much, much later... if ever, because memorable bosses never try to take credit.

And if they can't, they take the hit. (And later speak privately to the employee in question.)

5. They’ve been there, done that... and still do that.

Dues aren't paid, past tense. Dues get paid each and every day. The true measure of value is the tangible contribution we make on a daily basis.

That’s why no matter what they may have accomplished in the past, memorable bosses are never too good to roll up their sleeves, get dirty, and do the “grunt” work. No job is ever too menial, no task ever too unskilled or boring.

Memorable bosses never feel entitled, which means no one feels entitled to anything but the fruits of their labor.

6. They lead by permission, not authority.

Every boss has a title. That title gives them the right to direct others, to make decisions, to organize and instruct and discipline.

Memorable bosses lead because their employees want them to lead. Their employees are motivated and inspired by the person, not the title.

Through their words and actions they cause employees feel they work with, not for, a boss. Many bosses don’t even recognize there’s a difference... but memorable bosses do.

7. They embrace a larger purpose.

A good boss works to achieve company goals.

A memorable boss also works to achieve company goals -- and achieves more than other bosses -- but also works to serve a larger purpose: to advance the careers of employees, to rescue struggling employees, to instill a sense of pride and self-worth in others. They aren’t just remembered for nuts and bolts achievements but for helping others on a personal and individual level.

Memorable bosses embrace a larger purpose, because they know business is always personal.

8. They take real, not fake risks.

Many bosses, like many people, try to stand out in some superficial way. Maybe through their clothes, their interests, or a public display of support for a popular initiative. They do stand out but they stand out for reasons of sizzle, not steak.

Memorable bosses stand out because they are willing to take an unpopular stand, take an unpopular step, accept the discomfort of ignoring the status quo, and risk sailing uncharted waters.

They take real risks not for the sake of risk but for the sake of the reward they believe possible. And by their example they inspire others to take risks in order to achieve whatthey believe is possible.

In short, memorable bosses inspire others to achieve their dreams: by words, by actions, and most importantly, by example.

Written by Jeff Haden

WHAT THE MOST PRODUCTIVE PEOPLE DO BEFORE BED

SLEEP IS YOUR BODY'S MOST IMPORTANT PROGRAM. WHICH IS PRECISELY WHY YOU SHOULD HACK IT.

Breaking news: When you're asleep, you're still alive--and you'll probably be alive the next day. So it follows that your circadian style will dictate whether you greet the day like Michael Phelps or a drunk (or, possibly, a drunk Michael Phelps, but we'll leave that for later). If you treat sleep as a stopgap measure between your daily grind and Netflix binges, you're doing it wrong.

Sleep is a problem to be solved, a question to be answered, a cake to be had and eaten, too. While this post won't solve your somnambulating, we can at least help you get a handle on what's going on in bed, so you're not--ahem--asleep at the wheel.

Debunking the bed

As Leo Widrich notes on Buffer, a lot of what we "know" about sleep comes from hearsay, advice your mom told you back in the day and blog posts you clicked on when you were bleary-eyed at work. Let's clear those cobwebs.

First of all, Widrich notes, we don't all need eight hours. It's not a universal rule. He quotes sleep psychiatrist Daniel Kripke--who won't bullshit you--who says that people who sleep from 6.5 to 7.5 hours a night are the longest lived, most productive, and happier than others. And assuming everyone should sleep the same length is like saying everybody should have the same shoe size.

No one can do your sleep for you. While experts inform us that we need to take our sleeping patterns into our own hands (and pillows). Optimal sleep--for optimal productivity--is intensely individual; so do some experiments on yourself. Track what happens when you change your sleep routine. Tinker with 15 minutes earlier to bed or to rise. Flirt with a daily nap. Recognize that your mileage may vary--so track the mileage.

• Nap hard: Realizing that his productivity dipped at 3 p.m., Widrich decided to place a nap right then. And as ASAP Science will tell you, don't sleep more than 20 minutes or you'll fail at degrogging. And like anything else at work, there's an educational component: You need to get buy-in from your boss before you can snooze at work.
• Ritualize it: Make going to bed your little personal ceremony. Give yourself time to read or journal, get any brightly lit screens away from you. That way your mind can tell your body that it's time to rest--and you'll soon sleep like a baby.
• Wear yourself out: As awesome infographics note, elite athletes sleep a staggering amount--evidencing that intense activity leads to intense rest. So if you couple vigorous physical activity with vigorous mental activity, you'll do well at sleeping well.

What do you do each night to ensure you get the best shut-eye--and have you found it makes a big difference to your work the next day? Tell us about it in the comments. 

From Fast Company

9 Things Successful People Do When Working From Home

Working from home can be fantastic, or it can be fraught with peril. Here's 

how to make it work better for you.

I wrote the first draft of this column before 8 a.m. on a Sunday, working in my pajamas at the standing desk in my home office.

A new study says I have good company in that kind of work flexibility, and not just among entrepreneurs and those who work for themselves. Nearly one-third of full-time employees do most of their work in homes, coffee shops, and other remote places, according to the Flex+Strategy Group report.

After extensive study, here are the best ways I've learned to make this arrangement work. 

1. Reclaim your commuting time.

Commuting sucks, and one big advantage of working from home is that you no longer have to deal with it regularly. But it's crucial to reclaim the time you used to devote to travel for something productive. For example, maybe use the first 30 minutes of your day to answer emails you didn't get to the day before and the last half hour to set long-term strategic goals and specific objectives for the next day.

2. Design your space.

You've heard this one before, but it's crucial. Carve out a dedicated space that you only use for work. Preferably, you need natural light and a door, so that you can separate your work from your home life when the workday is done. (Moreover, creating a separate and exclusive space can be necessary if you want to take a tax deduction for a home office.)

3. Project professionalism.

Some people advise dressing as if you were still working in someone else's office. I think that's unnecessary, and maybe even a bit crazy, but you do need to come across as professional and reliable when dealing with clients. Here's an example: If you're doing video calls, consider having a clean dedicated area for them, or at least hanging a backdrop so people aren't distracted by home-office clutter.

4. Track your savings.

Following on the first three items, it helps to track how much you save as a result of working from home. Commuting costs alone can be substantial. Then consider the reduced costs of meals, now that you don't have to rely on take-out lunches and $2.50 cups of coffee, throw in your lower dry-cleaning bills, and the savings add up quickly.

5. Expand your circle.

Working at home can become isolating, unless you make an effort to build your network and maintain relationships. This might be easier in a major metropolitan area with lots of networking opportunities and industry meetings. However even if you have to travel and use lots of virtual tools--LinkedIn is a great place to start--maintaining your network should be on your to-do list every day.

6. Delegate all that you can.

When I wrote recently about delegating things to assistants, I was truly surprised by the blowback. Regardless, this is crucial, especially if you work from home, because it's easy to fall prey to the illusion that you have unlimited time, and can now do everything yourself. However, if you have a business worth doing, you can--and should--delegate things like managing your calendar, doing initial research, and handling household chores. (Yes, this can apply to child care, as well.)

7. Manage your distractions.

Talk about easier said than done, but another danger in working from home is that it's so easy not to work. (Thankfully, they're no longer televising Olympic hockey games in the middle of the workday. I'll have to work something out for the World Cup.) One winning strategy is simply to accept that you'll never be 100 percent productive. That makes it easier to be in control of your "mind-wandering" time at work, and keep it under control.

8. Own your day.

If you find yourself working earlier, take time for yourself and your family later. (Personally, I have ghostwriting clients all over the world, and it's a lot easier to do the occasional 4 a.m. overseas Skype call from my home office.) At the same time, it's great to do errands during low-demand hours. Don't fight the crowds at the mall on a Saturday. Instead, discover the tranquility of 10:30 a.m. on a Tuesday.

9. Own your week.

If you liked the idea of owning your day, just wait until you own your week. If you've wondered how many more runs you could get in on the ski slopes on a Wednesday (or whatever it is you like to do for fun), or how much easier and cheaper it would be to travel during times when fewer people are able, the answer is: a lot. In fact, the only drawback is that friends and family probably don't have the same flexibility. Once you get to the point where you own the week, however, you'll find yourself longing a lot less for the weekend.

From Inc. Magazine