Opinions expressed by Entrepreneur contributors are their own.
Delivering a good pitch is as much about conveying emotion as conveying information. If you get the opportunity to pitch in front of a live audience, both of those objectives should be top of mind. The phrase, “They don’t care what you know until they know that you care,” is sage advice and is the basis for starting a 10-minute pitch.
Startups are hard work. If you do not particularly care about the market or the problem you are solving, you may bail out when the going gets tough. Investors need to know this is more than just a business.
Related: 4 Powerful Communication Strategies to Win Any Sales Pitch
Minute 1: Personal Introduction
Let the audience know that you, personally, care about the people and the problem you are trying to solve. Use the word “I” instead of “we.” I know you are representing your team and your company, but for now concentrate on establishing your passion and commitment. Tell a quick, personal story about how you stumbled upon the business you are pursuing and what made you realize it was where you wanted to focus most of your waking hours.
Your slide(s) should be simple. They are just there as a backdrop to your opening monologue and should make you look good. I, personally, like to show photos of me and/or customers experiencing the problem first-hand. The focus should be on you and your message.
Step forward to the audience, make gentle eye contact and engage them on a personal level as much as you can. The goal is for them to trust you, have confidence in you and to like you.
Transition out of the personal introduction into the overview of the problem you are trying to solve. Your job is to describe the problem as one that goes well beyond just you and your experience. A nice phrase is, “When I started looking around, I realized that I’m not the only one with X problem. Lots and lots of other people have it too!”
Minute 2: The Problem
Remember to keep an emotional appeal included in your description of the problem. People with this problem are: struggling, irritated, angry, disenfranchised? Keep human emotions real. Break down the problem into its component parts accompanied by a diagram.
Your slides during this minute are simply visual aids that help explain the problem. Like in the introduction, photos can express the human factor, but diagrams can help explain how the problem is experienced by people.
Keep close to the audience and help them empathize with those who experience the problem. As you move into the solution, physically back away from the audience, smile and spread out your arms to make bigger gestures. Your job is to bring up the excitement level in the room.
Related: 4 Ways Emotional Intelligence Can Improve Your Sales
Minute 3: The Solution
At this point, you are going to maximize the crescendo. Show excitement and passion for your businesses solution. Transition to “we” instead of just “I.” Walk the audience not only through how the solution works, but also through the great benefits of the solution.
You need to position your body in front of the room and make it as big and bright as you can with big arm movements, a bright smile, confident voice and lots of eye contact. The audience should begin to share your excitement for your business.
Your slides are visual aids and diagrams. They should contain little to no text. Keep them simple as possible as complexity will only suck the energy out of the room. You don’t have to explain everything your company does, just the main points. Remember, you only have 10 minutes.
It’s good to show images or screenshots of existing products or beta releases and other hard evidence of your execution, but overexplaining the solution will make the presentation less compelling, and it will take too long. You want to leave the audience wanting more.
Once you have your audience feeling great about the solution, it is time to talk money.
Minute 4: Business Model
There are several money-related topics you’ll need to touch on during your pitch, including how you’ll make money, how much money you will make and how much money you will need. Keep these parts separate so they are easier to digest.
Now is the time to tell the audience how you will make money. There are literally dozens of possible business models, including selling the product, selling a subscription, taking a processing fee, licensing and so on. Explain how you are going to charge people for the solution you are offering.
On your slide is an outline of the customer unit economics for your chosen business model — the price they will pay and basic terms of a typical contract. Explain how you will “do the deal” with customers. Whenever you show numbers, stand close to your presentation screen and point to the numbers you are talking about. Numbers are hard to follow. Pointing as you talk will help people stay engaged.
If the business model is attractive, as it should be, you will have to explain who else is going after the customer’s money.
Related: Tips to Follow When Re-Fitting Your Business Model to the New Normal
Minute 5: The Competition
There’s no such thing as a business without competition, and implying that you have none is a major red flag for investors and even potential partners or customers. Whatever problem you are going after is being addressed somehow, maybe not very well, but people experiencing the problem are trying to solve it, and the resources they access to cobble together a solution is where you will define your competition.
The key here is not to avoid the notion that competition exists, but how your company is different. The existence of competition validates the market. Do not talk about how you are “better,” focus on “different.” Your attitude towards the competition gives the audience a peek into your business soul. Are you dutifully respectful of their presences and power or are you arrogant and naïve enough to think your little startup will have no problem beating them? Err on the side of humility.
Your slides should depict your differences from the main competitors. Feature comparisons or positioning charts, for instance, can be effective tools. Many of the questions you will get from the audience will stem from what you say during this minute of your pitch.
Be clear and respectful before you transition to your sales and marketing plan.
Minute 6: Sales and Marketing
During you description of the competition, you struck a respectful tone. It’s now time to amp up the room again as you talk about how many potential customers are out there and how you’re going to get them. Show excitement and confidence as you walk the audience through the market data, your chosen point of entry and your communication strategy.
Slides will depict data, charts, and graphs which you will want to point to as you explain. Images of web sites, brochures, trade show booths in action, etc. are fair game here, too, and will help build excitement in room.
It is important to tie your sales and marketing plans together so it doesn’t look like you are shooting a scatter gun of one-off tactics. Show the logic and flow of lead generation to final sale and how your team plans to take the prospects through the buying process and into the customer experience.
End this minute by translating the marketing sizzle into numbers. It is time to talk about money again!
Minute 7: Money
Earlier, you explained how the business is going to make money. Now, it’s time to tell the audience how much money you are going to make. This is the good part. Your description of the deal shows the unit economics of a single customer (price), and your market description shows how many potential deals are out there (quantity). Armed with this information, you can describe how revenue builds over time.
Break it down for the audience. Show income and expenses in graphical format. Nothing beats a good bar chart, and pretty much anything beats a screenshot of a spreadsheet. Back up to your presentation slide and point to information like the weatherperson points to a weather map on TV.
Keep the tone upbeat and engaging. You’ll want to exude as much confidence as you can. To this end, avoid showing different scenarios in your forecast. Pick the scenario that you think is most likely to happen, and be prepared to defend your assumptions.
To make the business believable, the audience will now need to meet your team.
Minute 8: The Team
It may seem a little strange to wait until towards the end of your pitch to introduce your team, but waiting has benefits. It’s important to introduce your team in the context of the business so the audience understands why it is what it is. If you introduce the team upfront, you will have to circle back to describe their roles later, which wastes time and can get redundant. A 10-minute pitch must eliminate redundancy.
As you introduce the key players on the team, you can highlight what function they will perform and brag (yes, brag) about how great they are at their function and how lucky you are to be working with them. Talk about yourself with humility, and talk about your team like they are the best team in the world.
Rather than showing headshots and bullet points, show images of the team in action or in a group. You want to make sure the audience sees a team, not a collection of individuals.
Next, you will explain the great work this great team has accomplished!
Minute 9: Proof of Concept/Traction
A team without results isn’t much more than a cocktail party. To get investors or customers, you need to show results. What has the team accomplished? Have they launched an MVP? Does the company have revenue? Are the customers happy?
The more traction you can show, the better. This, more than just about any other minute of your pitch, will demonstrate your team’s ability to pull off this business in the real world. Display customer testimonials and read them out loud. Show pictures of your solutions in action. Maximize the excitement in your voice and facial expression. You’re almost at the end of your pitch, so be sure leave it on a high note!
You have one minute left. It’s time to ask for the money.
Minute 10: Ask
Assuming you are pitching your business for the purpose of raising money, you will spend the last minute asking for it. By now, your audience has everything they need to know if they are interested, or not, in working with you. You must paint a clear picture of what you need from the audience and what investing with you will look like.
Investors want their money to be used for growth, not exploration. Show them that everything is in place to grow, you just need to fan the flames.
Many founders aren’t sure how much money they will need and to what terms they will be willing to accept. They are keen to keep things open-ended. In my experience, however, investors want a starting point. Give it to them.
You already showed them how much you are expecting to make. This financial objective is based on many assumptions, not the least of which is how much outside funding will be required to execute the plan. Break it down for the investor. Do you want one main investor or a number of smaller investors?
If, for instance, you are raising $1 million, you could break it into 10 chunks of $100,000 each and say, “We are raising $1 million from up to ten investors in $100,000 units in exchange for a convertible note. How many units do you want?” Your slides can show the breakdown and the high-level terms of the note. This makes the deal easy to understand. An interested investor will not walk away from the deal based on your initial offer, they will counteroffer, and you’ll be off to the negotiating table — mission accomplished!
Express enthusiasm for their participation in your business. Keep the energy levels high.
Conclusion
The trick to delivering a compelling 10-minute pitch is to let the story flow logically and to avoid repeating yourself. It’s not logical, for instance, to introduce the team before anyone knows what kind of team is needed. Likewise, it’s not logical to talk about progress and traction before talking about how the business works.
Each topic in the above outline neatly flows into the next, allowing you to build your story and maintain the energy level in the room. A good pitch lets the story unfold naturally and doesn’t force things together. In this pitch, you may notice that there is no “money” or “financial” section. Making money is simply part of the flow of the story, so it is touched on multiple times during the pitch.
Perfecting the pitch means practicing the pitch. It’s much more than what you say. It’s also about when you say it and how you say it.
Related: Why You Need a Million-Dollar Pitch Before Your Start a Business
What does it take to become a successful entrepreneur and what does “success” even mean today? These are questions worth exploring, especially if you are just starting out.
Shutterstock You can never be fully prepared for the slings and arrows of entrepreneurship. Starting a new company from scratch is one of the hardest things you can do. Every obstacle and challenge will come your way, especially in the early years.
Let’s start with first principles: An entrepreneur’s job is to innovate, create jobs and grow revenues. But before you can do that, you need to determine if you really have the drive, dedication and confidence to fight for your dream every day, despite the obstacles. If you don’t have that hunger and perseverance, then entrepreneurship may not be for you.
Related: 7 Mindsets That Guarantee Enduring Success
Measure your own success
Fortunately, entrepreneurial success is not a zero-sum game. I don’t compare my success to that of Jeff Bezos or Elon Musk, nor should you. Their success doesn’t impede my own. I look to them for inspiration and ideas. I consider myself successful if I’m a little bit better today than I was yesterday.
I also measure my own success based on fulfillment. You don’t have to change the world to have a fulfilling and successful career as an entrepreneur. Owning a restaurant, bar or a retail or online store can be incredibly rewarding and fulfilling, and so can launching a niche product that creates a new and loyal consumer base. That’s successful entrepreneurship.
You should also keep in mind that success isn’t about the opinions of others; it’s about helping others. We all want to help one another. Human beings are like that. We want to share in each other’s happiness. One way to help others as an entrepreneur is to grow your business and create jobs and livelihoods for your employees and their families. Another way is to touch the lives of customers by providing kind, attentive and respectful service every day.
Rethinking success is also about rethinking greed. For example, today’s technology is now so advanced that it’s given us a lifestyle that previous generations never would have imagined. We should rethink what it means to be wealthy. We can be greedy for the things that generations before us never had — the ability to be more effective at our job and to spend more time with the ones we love.
Related: Figuring Out What Success Really Means to You
Focus on superior products and services
The product or service you’re creating should be your focus. If you have a clear and achievable vision, and your product or service has unique value in the marketplace, then success will come from that. Your customers will tell you if you are successful or not. Everything else should come second to executing your vision and your business plans to deliver a superior product or service that’s in demand. Or creating new demand from scratch with an entirely new consumer category. That’s even better.
Forget about pedigree
I was fortunate to attend Cornell University, a prestigious Ivy League school with arguably the world’s best hospitality school. That undergraduate experience provided me the opportunity to build a stellar network of other success-oriented friends, mentors and business partners. Admittedly, it was a great place to start, but the prestige of my alma mater means very little in the real world. Investors evaluating my company don’t care. I must still execute and deliver every day. No one gives me a pass. Forget about pedigree. Focus on learning your chosen industry’s competitive landscape and what’s going to make your company stand out.
Related: 5 Secrets to Success in Business
Keep pressing on
After college, I realized I still had much to learn before I was ready to launch my own company. I took a job with a bank on Wall Street as an analyst evaluating the business plans of tech-focused start-ups. That experience was incredibly helpful in formulating my own business plans for HotelPlanner soon after. If you’re not quite ready to launch your own business, consider working a few years with a more established company. Think of it as an apprenticeship. But have an exit strategy because no job is permanent.
After two short years, I was laid off during the post-9/11 recession, but it was a blessing in disguise because I realized that I didn’t want to be an employee for others my entire career. I wanted to employ others. I wanted more control of how I shaped my future. When you face setbacks, brush yourself off quickly. Don’t dwell in the mire of feeling sorry for yourself. Keep pressing on. If you want to be a successful entrepreneur for the long-term, resilience is key.
Opinions expressed by Entrepreneur contributors are their own.
Since 2020, millions of office workers have transitioned to working from home, and some of the biggest proponents of long-term remote work have been SaaS (software as a service) companies like Twitter and Amazon Web Services. So as the future of work changes, it begs the question: Does your company need an office?
Why we work in shared spaces
As early as the 17th century, people were gathering at cafes and libraries to work together. Today’s coffee shops are still full of people laboring away, of course, but now they’re doing it remotely from their laptops — instead of collaborating with the people sitting around them, they are connecting with distant colleagues.
Private workrooms began as a way for elite government officials and academics to collaborate, and essentially these first offices weren’t all that different from today’s — spaces that allowed people to communicate easily, because sending letters back and forth took time. Even after telephones were invented, in-person meetings were the most convenient way of exchanging ideas, and offices have remained until very recently the place to foster creativity and collaboration. So, as we consider the future of work, we must also consider the best option of supporting both those qualities.
Office design reflects the times
The history of office design is fascinating. While information on very early ones is limited, we know that 20th-century layouts often changed to reflect work culture. In the early 1900s, most spaces were sizeable open-concept rooms similar to a factory floor and were loud, vibrant environments. Often the supervisor’s office was raised to overlook the shoulder-to-shoulder desk workers.
German office design became influential in the United States beginning in the 1950s, part its intention being to organize space to reflect worker functions. Irregularly spaced desks and conference tables replaced the structured rows of desks in this new Bürolandschaft (literally “office landscape”) style, and the same movement introduced the cubicle, so that workers could have privacy to focus and isolate themselves from collaborative spaces.
Related: In Defense of the Office
By the 2010s, most workplaces had once again adopted the large and open-concept style — cubicles perceived at that time as roadblocks to networking and collaboration. While these designs weren’t always practical (a fact detailed in a 2019 article in the Harvard Business Review), they were still the dominant layout leading into 2020.
Put succinctly, office spaces have always changed to reflect the work culture of the day, and there is potential for them to remain a key business component, as long as they keep up with trends.
What purposes can an office serve today?
In a world where so many can now operate remotely, you may find yourself wondering, “What is the point of having a collective work space?” (Especially for SaaS companies that don’t need to store physical products.) Actually, they can serve a host of important functions, even for remote-first businesses.
Top factors to consider when deciding if you need one:
• People: Would employees use the office? Even if they can work from home, some may actually prefer to use it a couple of times a week, or even just for key meetings. Hiring new talent can also be easier when you have an onsite location for interviews and training.
• Events: Would your company benefit from having a space to host stakeholder or progress meetings, holiday parties or other gatherings? Investing in a dedicated space can have a positive impact on brand confidence for investors, employees and others.
• Mail: Even if you run a SaaS company, don’t overlook the importance of having a mailing address. To register your company and open bank accounts, you will need one, and an office is an obvious choice.
• Storage: Many companies need storage space for servers, equipment and other items. If that’s the case for yours, then an office space could be a great option. Many buildings, of course, also have built-in security features to help keep them safe.
• Community: Employees may prefer working remotely, but at what cost? If your business is stalling, then an office may get creative collaboration flowing again; face-to-face time with colleagues can encourage new ideas and also build a sense of community.
So, does your company need an office?
The short answer is, maybe. When we started ButterflyMX in 2014, flexibility was already a priority. I wanted my team to be as agile as possible and remote work allowed us to choose the best talent, regardless of location. But even as a globally distributed company, having an office has been vital. We’ve invested in spaces where our employees can meet, create and develop as they see fit. After watching this endeavor grow over the past eight years, I feel confident that the choice to be remote-first with the option to work in the office has been the best choice for us.
Related: How to Transform Your Office Into a Collaboration Destination
There’s a lot to consider before you commit. For many businesses like mine, an office has more pros than cons. If you’re thinking about securing one for your company, then chances are you already know why you need it. The best solution will be unique to you.
Opinions expressed by Entrepreneur contributors are their own.
Every time I send an email newsletter or beta test a new offer, it feels like I’m coming out of the closet again. It’s been over 15 years since I came out, but I can recall the vivid body response like it was yesterday: Pit in the stomach, clammy hands and a tidal wave of irrational mind trash.
I feel the fear and do it anyway. What I’ve realized over the years is that being gay is one of my most powerful weapons as an entrepreneur. It gives me the courage to confront fear, dream big and turn vision into reality. More importantly, putting our successes out there as queer people sets an example for the next generation that life gets better.
According to research aggregated by The Trevor Project, LGB youth are almost five times as likely to have attempted suicide compared to heterosexual youth, and 40% of transgender adults reported having made a suicide attempt.
And when we review data from the Williams Institute at UCLA, the numbers show that queer people as a whole experience higher levels of unemployment, lack of insurance, food insecurity and annual incomes under $24,000. It’s a sharp contrast to the usual media depiction of queer life as glitzy, glamorous and without hardship.
Related: As Pride Month Ends, Here Are 3 Ways To Continue Supporting The LGBTQ+ Community
Seeking different perspectives on resilience, I contacted three fellow LGBTQ entrepreneurs and asked them two questions:
- “How has being a part of the queer community shaped you as an entrepreneur?”
- “What are you working on next in your business?”
Here is what they had to say.
“My queerness influences how I think about business”
Rae McDaniel is a Chicago-based entrepreneur who owns Practical Audacity
, a gender and sex therapy group practice, and Genderfck: The Club, a research-based group program and community.
“Being queer has shaped my identity as an entrepreneur in many ways,” says McDaniel. “The hard truth is that, because of queer identity, I have very little family support and no monetary support other than what I bring in.
This fact has led me to be a bit ‘scrappy’ in my life, choosing to invest in and trust myself, because I had no other option and no backup plan. As an entrepreneur, there is value in being ‘all-in’ on your business. There were many times I might have given up if it had been easy to quit.
My queerness and the queer communities I’m a part of have also greatly influenced how I think about business, capitalism and the tensions of working in a helping field while also needing to build a financially and energetically sustainable business. My queerness connects my work to a strong why: Creating the world we want to live in, a world where we can all live freely as our most authentic selves.”
On the business side, McDaniel is celebrating a period of rapid growth.
“I just signed a new 10-year lease at my dream office building, tripling our physical space and giving us an event space. We went from 10 to 17 employees over the past 18 months. It’s life-giving as an entrepreneur to have a team you trust run most of the day to day operations of the business, and I am so grateful for them.
Having a team gives me the freedom to focus on the big vision for the practice and my work in my coaching program for transgender/non-binary individuals as well as my transgender inclusion and diversity work for corporations and professionals in the medical, mental health and wellness fields. It also has given me the space to work on my passion project: A non-fiction book, which is currently in the works.”
Related: Want to Create a Trans-Inclusive company? Invest in These 2 Things.
“I listened more to protect myself, and now that serves me as a leader”
Robert Hartwell is the founder of The Broadway Collective, an elite musical theatre training academy based in New York City that features both in-person intensives and online mentorship programs. The company provides curriculum-based musical theatre training, results driven college prep and career mentorship to serious musical theatre students ages 12-18. Hartwell’s story of purchasing a home built in 1820 by slaves created a viral feel-good moment in an otherwise-bleak 2020.
“There is a certain resilience that comes from being a part of the queer community,” Hartwell says. “Growing up, I found myself doing more listening than talking to protect myself, which I think has served me as a leader. I remember seeing RuPaul on talk shows as a kid and thinking this person is fabulous, kind, and brave. I wanted to do the same.”
Hartwell notes that the pandemic forced him to innovate, and as restrictions subside the company is getting back to basics.
“We are currently working on how we can reduce complexity in our business. We added a lot during the pandemic to stay alive, but we’re excited to get back to our simple ingredients that bring us joy.
We are known for producing life changing events that are moving, inspirational, and rooted in ‘doing the work.’ If it doesn’t feel like fun and closer to connection, we aren’t doing it.”
“Feeling like an outsider has helped me serve others who feel like they don’t fit in”
Tyler J. McCall is a business and Instagram marketing strategist for online business owners and entrepreneurs. He draws from his 10 years of experience in nonprofit marketing and community organizing to help entrepreneurs use social media to tell stories, build relationships and convert followers to fans. In addition to his signature program The Follower To Fan Academy, McCall also hosts The Online Business Show podcast.
“Being a queer person who runs their own business is one of my greatest competitive advantages, because I’m able to bring my unique perspective, creativity, and experiences into my work,” McCall says. “My queerness gives me a different lens through which I see the world, build community, cultivate relationships and understand the power dynamics at play in entrepreneurial settings.
Having the experience of being an ‘outsider’ for most of my life has allowed me to create a business that supports and serves others who haven’t always felt like they fit in. It makes the work I do that much more impactful and important.”
Related: How Being an Outsider Helps You Disrupt Industries
McCall notes that navigating the pandemic has influenced not only where he wants to go next in business, but also in life. “Right now I am in my Madonna re-invention era. As I’ve reached the other side of the pandemic, I’m evaluating so many components of my life, my work, and how I spend my day.
The most exciting thing is that I don’t know what I’m doing next. It’s a scary thing for me to admit, being a high-achieving Enneagram 3 who is used to finding my worth through my work. The next chapter of my business will be one that is more holistic and fully integrated with my life while allowing me to have more space and freedom to play, explore and live a life beyond my identity as an entrepreneur.”
For many queer people, thriving means tapping into creativity, resilience and resourcefulness. Here’s the good news: Those skills are also what it takes to become a world-class entrepreneur. Muster up some courage, step into the unknown, and you’ll soon find that being brave takes you exactly where you need to go in business.
These days, if it feels like everybody has a side hustle, it’s because a whole lot of people have a side hustle. More than a third of Americans have a side hustle today, and two-thirds of them started it in the last three years.
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Opinions expressed by Entrepreneur contributors are their own.
Let’s assume we’ve already accepted that keeping an open mind when exploring franchise concepts is a sound strategy. Remember – it’s not about an emotional connection to the product or service your offering, but rather a quest to find a franchise concept that checks the boxes of your entrepreneurship goals.
Employing an advisable strategy is a great start, but to put the finishing touches on your search, here are 4 do’s and 5 don’ts when exploring franchise concepts. We’ll start with the Do’s, and follow up with the Don’ts:
1. Do – review multiple franchise concepts
Searching for a franchise is no time to “stay in your lane,” so to speak. Get out of your comfort zone and investigate a couple of concepts you might never have considered. You may not go with those choices, but the experience in evaluating something completely different has fringe benefits.
Related: 6 Tips to Consider When Searching for a Franchise for the First Time
2. Do – seek the assistance of a consultant or broker
You know how much information is out there on franchising? If you’re overwhelmed and don’t know where to begin, it’ll be worth your time to seek the assistance of a qualified franchise consultant or broker. Not only can they save you an immense amount of time and help find your perfect match, but they can also connect you with additional resources related to legal, accounting, and real estate matters.
3. Do – participate in validation sessions
One of the best aspects of the franchise investigative process is the opportunity to participate in validation sessions. This is your opportunity to have one-on-one discussions with brand representatives and existing franchisees in the system. Go into it with a list of prepared questions and prepare to take plenty of notes – you’re about to find out what franchise ownership is really about.
Related: 6 Important Questions to Ask During the Franchise Validation Process
4. Do – seek a professional review of your ownership plans
When you’ve reached the final stage of the investigative process such as your Discovery Day, you should have an attorney and/or a financial advisor sign off on your ownership plans. You may think you’ve found the perfect fit in a franchise, but a professional review may provide additional insight you never knew you needed.
1. Don’t – get in over your head
Prior to your search, you should be well-informed as to your financial tolerance in buying a franchise. Just like pre-qualifying for a residential real estate purchase, you should run the numbers to discover what your price range is. And stick to it.
Related: Starting a Franchise But Need Financing? Here’s What to Do.
2. Don’t – rush the process
Going into business for yourself is a big decision and it’s no time to rush through the process – even if you are excited about the franchise you want to buy. The franchise buying process is regulated by the FTC, which sets aside a certain amount of time that must pass before you can sign on the dotted line. That guardrail is there for a reason. Be patient and do the requisite amount of due diligence.
3. Don’t – miss the fine print
When you get serious about a particular franchise, you’ll request and receive the brand’s Franchise Disclosure Document (FDD). It has 23 sections, spelling out the who, what, where, when, why, and how much. It also includes finer details about financial performance, any pending litigation against the brand, and precisely what your role in the agreement will be. This isn’t a safety waiver from a water park. Along with the franchise agreement, it’s one of the most important documents you’ll review.
Related: 7 Things Not to Miss in the FDD
4. Don’t – fail to explore all of your funding options
Perhaps you already have your financing lined up and, if so, great. But even still, it doesn’t hurt to contrast and compare a few other funding routes to make sure you’re getting the best deal you can. There’s always the Small Business Administration and a few funding partners that work exclusively with franchisees. It never hurts to consider all of your options.
5. Don’t – assume you’ll be an overnight success
As a franchise owner, it’s mighty difficult to break even a week after your grand opening. Hopefully, you’ve put together a business plan and proforma that indicate when you’ll reach breakeven status. Like anything else, getting to that point and becoming a successful business owner likely won’t happen overnight. Franchise owners should plan for the long-haul road to success. Just follow your proven business model and the rest should take care of itself.
Opinions expressed by Entrepreneur contributors are their own.
The EB-5 Immigrant Investor Program allows foreign investors who meet a specific set of requirements to obtain permanent U.S. residency. In effect since 1990, it has gained particular traction in recent years among business owners and project developers, who have come to regard the EB-5 investment industry as a secure and reliable source of capital. The program has poured billions of dollars into U.S. businesses and created thousands of full-time jobs. It also encourages investment in targeted employment areas (TEAs), which are either rural or are experiencing high unemployment. EB-5 investors who choose projects located in TEAs are granted a lower investment requirement of only $500,000, as opposed to the at-least $1,000,000 required for non-TEA projects.
U.S. business leaders can often access EB-5 investment funding at below-market rates, but they must keep in mind that United States Citizenship and Immigration Services (USCIS) closely regulates the industry. If an EB-5 investor does not follow USCIS guidelines, he or she will be ineligible for a U.S. Green Card. As a result, project developers must take care to ensure compliance with such policies.
In my experience as the managing partner of an EB-5 consulting firm, I have noticed that a USCIS-compliant business plan is one of the most important elements in considering such an investment.
Related: What Is the EB-5 Immigrant Investor Program?
The importance of a solid plan
USCIS examines EB-5 business plans carefully before granting approval to a project’s investors. In essence, plans must show that the project is financially viable and compliant with regulations. Issued by the USCIS Administrative Appeals Office (AAO) in 1998, the “Matter of Ho” decision provides insights into how USCIS evaluates business plans, especially regarding accuracy, detail and transparency. There has been additional information concerning plan requirements released since, so business owners should make a point of working with immigration attorneys and EB-5 consultants when structuring their offerings.
It is particularly important for plans to show how the EB-5 project will strengthen the U.S. economy and create at least 10 job positions per investor — the two principal objectives of the program. Moreover, investors are unlikely to subscribe to a project with an unconvincing or poorly written plan; investors gravitate toward those that clearly adhere to USCIS standards and thereby offer a higher chance of successful immigration.
Business leaders interested in raising EB-5 investment capital should consider the following components of a solid plan, which will make their offerings attractive to investors from a wide variety of markets.
Related: The 5 Best Markets for Raising EB-5 Investment Funds
1. Potential for job creation
Since one of the main objectives of the EB-5 program is to reduce unemployment, an associated project’s potential for job creation is essential. If a plan does not explain how at least 10 jobs per investor will be created, USCIS is unlikely to approve the investors’ visa petitions. Therefore, it must include details such as the number of projected jobs, a description of each position and a hiring timetable.
Employment calculation methods are different for direct versus regional center-sponsored projects. The former can count only full-time positions that appear on the business’s payroll, while regional center projects can also include indirect and induced employment (calculated by recording a project’s development expenditures and operating revenues).
2. Financial viability
EB-5 plans must provide evidence of the project’s financial viability. To this end, business owners should commission a third-party analysis that gauges potential for success and explains how the investment funds will be used. It’s also important to include details such as projected revenue and expenses, and that the budget is sufficient to cover expenses related to employment creation.
3. Marketing strategy
Every EB-5 project should have a strategy to attract potential clients and investors. Marketing plans typically include hiring foreign migration agents, producing appealing marketing materials and offering informational seminars for interested investors.
Owners should additionally keep in mind that foreign nationals from varying geographic regions have different expectations and preferences when selecting an EB-5 investment opportunity. Consequently, marketing strategy should consider the needs and preferences of the project’s target markets.
Related: How to Build Trust With EB-5 Investors
4. Detailed project description
An EB-5 business plan must describe the project’s scope, business type, operational plan and timeline. There should also be information on its management team, employees, immigration attorneys and other professionals involved. Owners should aim to provide USCIS with a detailed overview of the organizational structure, which will enhance the plan’s credibility and transparency.
Structuring a successful EB-5 project is often a multi-year process that requires careful preparation. Still, many business leaders have found that the effort is well worth it, especially in light of this sector’s current success and its potential to fuel accessible funding.
How many times have you been told “that will never work”? Probably not as often as Netflix co-founder Marc Randolph. The veteran Silicon Valley entrepreneur provides a healthy dose of humor, and actionable advice that will benefit founders – and would-be founders – at every stage of their business journey.
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Mara Smith’s search to find a gluten-free, cleanly produced spirit inspired her to start Inspiro Tequila, and she recently sat down with Entrepreneur to discuss her journey, along with advice for women looking to re-enter the workforce.
Tell us a little bit about your background before starting Inspiro.
I have no experience in the spirits industry. I started my career at one of the largest law firms in Chicago. It was an amazing experience. You get thrown into the fire right away, and I learned so much really quickly. It was very exciting and exhausting. After years at the law firm, I decided to make a career pivot, and I joined the Corporate Strategy and Business Development Group at McDonald’s Corporation. That experience really sparked my entrepreneurial spirit. While I was there, I became pregnant with twins, and my corporate career came to a screeching halt when I was put on an emergency bed rest. My twins were born prematurely, so I decided to stay home and became CEO of my home. All this time though, I always had it in the back of my head that I wanted to start my own company.
Related: Jessica Simpson’s Billion-Dollar Secret: ‘Being Underestimated Is a Superpower’
What inspired you to start a tequila company?
If I was going to start a company, I wanted it to be around a product that I personally enjoy. I became a tequila drinker years ago, when I was looking for a cleaner spirit option that fit into my more active lifestyle. I’ve been gluten-free for over 10 years. Drinks that add a lot of sugar to them, like wine, I just wouldn’t feel good the next day when I woke up. So I turned to tequila, and I started converting many girlfriends to becoming tequila drinkers. I discovered that a lot of women were actually choosing tequila as their drink of choice. But I just didn’t think any of the brands really focused on them as a primary consumer — from marketing materials featuring scantily clad women, or dark bar scenes that did not personally resonate with me, to even the bottle designs just being dar and stout, and stocky. I thought there was an opportunity to innovate, and bring a different perspective, and focus on an overlooked consumer. I also discovered that many of the tequila brands that we know and love actually contain additives, flavoring, glycerin and coloring. I thought, “Okay, I was choosing tequila because it’s a cleaner drink option, but I don’t want additives in my tequila.” There are so few women in the spirits industry in general, I thought if I was going to do something, I wanted to do something where I could make an impact. Here was an opportunity to bring a female perspective and have women involved in every part of the process, from creating our taste profiles to getting it on the shelves. So Inspiro Tequila is actually women-owned, led and created.
How did you prepare to enter a totally new industry?
It is not easy to enter a new industry as an outsider, but it’s also not impossible. It just required digging in and doing a lot of due diligence. Everything from reading books on the tequila industry and all the women in tequila, to taste testing brands (which was the fun part), to listening to podcasts and reviews about tequila, reading industry news reports and reaching out to people in the industry. I even took a course that was offered by the CRT, which is the governing body in Mexico for tequila, to become certified in the history and production of tequila making.
What are some of the main things you’ve learned along the way?
There have been so many learnings on the journey. The most exciting part is this deep learning curve. A few key takeaways for me have been, first, you need to remain intellectually curious if you want to try and innovate in an industry. As an outsider, one benefit I have is that I look at everything with a fresh set of eyes and how we could do things differently. But I think it’s important to always keep that perspective.
I like to live by the motto: Be a learn-it-all and not a know-it-all. You have to continuously want to learn and think of new approaches. Another key learning for me is that you just can’t do everything on your own. I recently discovered the Sarah Blakely quote that, basically, “If somebody can do something 80% as good as you can, you should let them do it.” Initially, I was trying to do everything myself, from filing for barcodes to drafting contracts. But now, I’m trying to let other people handle some of the other aspects of the business.
What do you want to say to other women who want to re-enter the workforce?
It’s not too late. You can innovate in an industry, even if you’re an outsider, if you’re willing to put in the hard work and do the research. The more prepared you are, the better. I think the second thing is that you just can’t do it all alone. Reach out to people that you think can help you. Creating a network of amazing female founders and leaders has been critical to me launching Inspiro. Again though, I’d say do your research first. When you reach out to someone, make sure you’re very specific in your request and that you’ve researched them and know about their background and history, and you can say something that sounds really personal. They’re more likely to respond.
Lastly, don’t devalue the skills that you had before you left the workforce, as well as the skills that you’ve honed while at home and parenting. A lot of those skills are very applicable to starting a company. I had preemie twins, and I can multitask like the best of them. I also think I learned a lot of flexibility because, as you know, with children no day ever goes as planned. It’s the same for a startup: You’re always having to think of Plan B and Plan C. I just think that recognizing that there are a lot of skills that you use while you’re home that are directly applicable to the business world.
Related: ‘Breakfast Club’ Co-Host Angela Yee’s Black-Owned Health and Nutrition Businesses Serve Up Community Support
Finally, what else are you looking forward to in the months ahead?
Right now, Inspiro is only available on our website and on some other marketplaces. I’m really excited to enter into retailers so people can find us locally in, initially starting in my hometown of the Chicagoland area, and then branching out from there to other strategic geographic locations. I’m just really excited for our consumers to learn about our tequila, have an opportunity to taste it and fall in love with it.
Opinions expressed by Entrepreneur contributors are their own.
Successful entrepreneurs are strategic, and know that it is one thing to conceive an idea, quite another to bring it to the market. In a competitive world, you must learn to think ahead of other entrepreneurs; it’s the only way to stay on top of your game.
A guide to how you can pursue that great idea.
Non-primary business product idea development
Not every product developer or inventor designs products for a living. It may be the case that product development is a side-hustle for you, however, you should look before you leap. It is never in your best interest to dive straight into development without first mapping out a plan.
The first step is to carry out comprehensive research on the product you want to design. Online, there will likely be an abundance of information on similar concepts, through which you will see companies that have tried and either succeeded or failed. Take a notepad and pen down why on both counts.
Related: How to Research Your Business Idea
The next step is to determine how you can include such a project in your schedule. You must be able to keep track of the progress and also set milestones. In addition, new developers must learn to measure gaps in their skills and resources, so you also need to establish what you need to do to cover these lapses.
After you have learned these basics, talk to experienced developers (make sure that your notes and reference materials are organized prior to such a meeting). This is also a good time to develop a plan with milestones, and to define your responsibilities — both one-time and recurring tasks, to see what can be delegated or outsourced.
Determining if an idea is worth it
It is unwise to spend time, energy and resources on a project that will most likely not materialize. Hence, you should probe its potential and know if the idea is worth pursuing.
Firstly, new developers ought to do a proper guestimate on market size — both the total addressable market (TAM) and serviceable addressable market (SAM). Once that is done, estimate potential sales and profits, which will be a smart way of decoding what amount to pump into a project as capital. And don’t hesitate to check out market data about trends that are looking upward.
If your products have already been developed, try to sell them on platforms like Etsy or launch a Kickstarter. This process is called “pretotyping,” aka a pre-sale launch wherein you are testing the interests of potential customers and their acceptance.
How to develop a creation plan
Having a plan helps you achieve goals faster. If you are set to draw out a plan for your project, using a product-development map is a good idea. Also, some pre and post-production activities and expenses will go a long way in determining success, including investments in legal and marketing.
When entrepreneurs find it hard to succeed, it’s typically not because they lack drive or creativity. In most cases, new ones simply lack consistency. So, you must determine how much time you can allocate to a project per week and ensure you meet that target. An additional piece of advice is that you talk to potential engineers and manufacturers to find out their lead times. This will put you in a position to establish the best moment to launch (you may decide to hit the Christmas sales season or other strategic times).
Finally, don’t beat yourself up if it’s taking longer than anticipated. Turning in excellent products, particularly if you are not yet a professional in this realm, requires time.
Related: Why Consistency Is the Key To Success, Learn From These Entrepreneurs
Finding development providers
Winding up with a winning product is very difficult to do alone. You need partners whom you can collaborate with, whether in marketing, accounting, sales, engineering or all four. So a next vital task is to write a job description for each of these potential partners/suppliers — a clear understanding of what you need from each of them. At this stage, make the internet your best friend: Open your PC and search for the partners via Quora, Reddit, LinkedIn, Facebook, you name it. Don’t forget to also rely on word-of mouth references from colleagues concerning professional developers, accelerators and incubators as well as potential partners.
Defining end goals
Before committing to product development, there are metrics and other indicators you need to set. Knowing when to stop product development, for example, is critical in the event that an idea is not sustainable. At such a moment, pre-determined by metrics established early, you will know that shouldn’t consider making an endeavor your primary source of income. You also need to estimate the lifetime of a product, and when will you need to raise additional capital, if need be. Likewise, you must determine what it means to you and your other business(es) if the project is successful.
Related: 5 Goals New Product Prototype Development Will Help You Achieve
Position yourself for success
Funding is the backbone of any successful project. Hence, you should be on the lookout for investors and clearly evaluate your monthly allowances (like spare cash). It’s easy to waste resources as a result of lack of such attention. Your energy should be channeled towards actualizing goals as a developer; I cannot overemphasize that point.
And, of course, things might not go as planned. It’s a given that entrepreneurs experience challenges in their journeys. There will be bad days and good days, but tough times don’t last — only tough people do — so stay motivated and keep your head in the game.