We asked them: What would be your best advice for a young, passionate entrepreneur or would-be entrepreneur?

Joe Ornato – Founder, Ornato Group

Create a backstage process.  Write down all the steps that it will take to give your customer the ultimate experience.  Natural sales people tend to “do” what they “know” intuitively, without getting into a well-defined process.  Building a process allows for: consistency, duplication, organization (of staff), enhanced service, and quick fixes because you can pinpoint errors.

Ricardo Robles – Founder, Capsity Offices

Focus on building strong relationships and learn how to leverage them.  It doesn’t hurt to know angel investors, venture capitalists, attorney’s, insurance brokers/agents, real estate brokers, etc.  It’s also key to look at building relationships with successful entrepreneurs and have them as mentors.

Laurie Hawkins – Focal Point Coaching

Ensure that you have a “flight plan,” and then execute on that plan.  Leverage all the available resources that are available to you – do not let that EGO have a position on your company!

Karl Allen-Muncey, CuteGecko Design Agency

“Eighty percent of success is just showing up.”  Network, get involved, and follow through!  Networking is about creating relationships and a reputation.  Go to community events, and assist other entrepreneurs where possible.  This process will cultivate your reputation and exposure as a valuable provider.

McKenzie Scott, Young Entrepreneur

As a young entrepreneur, nothing comes easy.  In this stage, persistence is key.  Make sure that you are selling your business in a sense that you actually UNDERSTAND what your customer wants.  Cater your product/service to the customer’s specific needs rather than having a one-size fits all solution.

Ben Yoskovitz – CEO/Co-Founder, Standout Jobs

First, have a mentor (or two, or three).  Find someone that has “been there, done that”.  Once you’ve found them, use them.  Second, get involved in the startup community.  There’s no excuse for not getting involved, participating and networking.

Ashley Bodi – Founder, BusinessBeware.Biz

Never give up!  It’s so easy to feel like you’re defeated when trying to start up a business, but don’t let that stop you.  You’re going to have ups and downs but it’s what you do with the things that get thrown at you that makes you a better entrepreneur.

Ben Walton – Founder, Tiger Networks

Systemize everything FIRST.  Run by the numbers, go faster than everyone else and don’t buy “toys” for your business until you sell up!

Janny Ke – Founder, The NOW Organization

Enjoy the adventure with courage, passion, and perseverance.

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Every year I update a personal inventory as part of my overall personal strategic plan. This strategic plan is separate from the strategic plan for my business. Having an updated personal inventory is helpful when I need to make tough decisions as an entrepreneur.

These are three self assessments you can get started with:

1. Personality Type Assessment -This is an important self-assessment because your personality type is a good indicator of your strengths and weaknesses. As an entrepreneur you need to lead your business with your strengths and find other talented people who can compensate for your weaknesses.

2. Entrepreneurial Self Assessment -This assessment measures you based on 3 criteria: motivations, aptitudes and attitudes. There is no “passing grade” but the assessment results give you some good insights and compare your results to other entrepreneurs.

3. Think and Grow Rich Assessment -This is the ultimate personal assessment. It was first presented by Napoleon Hill in his timeless book, Think and Grow Rich, a must read for entrepreneurs. John Dilbeck posted the assessment on his blog and goes through each question in painstaking detail.

Do you keep a personal inventory? Do you have any recommendations for self-assessments?

Here are our top ten suggestions for young entrepreneurs this holiday season:

10. Ask for a magazine subscription. Although blogs are great resources, a magazine that you can throw on your desk or at your bedside makes for a great gift. Try Inc. Magazine or Fast Company.

9. Look for problems that your parents or relatives talk about over the holidays. Great new ideas come from observations made, or problems that people are experiencing.

8. Spend some time evaluating 2009 and developing a plan of attack for 2010. What did you accomplish in 2009 that you’re proud of? What were you hoping to accomplish? What parts of your business plan need to be changed for 2010? These are all questions you should ask yourself.

7. Set 5 goals you want to accomplish and the steps you’ll need to take to make them happen. Make sure your goals are SMART –specific, measureable, attainable, realistic, and timely. Consider the small steps you will need to take to reach your goals and develop a system to hold yourself accountable.

6. Volunteer. Find a cause you’re passionate about and get involved. It feels good to know you’re helping others. Volunteering can be great for networking too. If you’re looking for a great cause to support, consider providing a microloan to an entrepreneur in a developing country via our Garage Entrepreneurs Lending Group on Kiva.

5. Spend time with family and friends. As an entrepreneur, it’s essential to have a strong support system and these are the people who will stick by you through the challenges you will face as an entrepreneur.

4. Read a book (or two, or three). There are a lot of great (and some free) books for entrepreneurs out there. Right now, I’m reading The Knack: How Street-Smart Entrepreneurs Learn to Handle Whatever Comes Up, and Made to Stick. You might even ask for one as a gift!

3. Exercise. Stay on, or get on an exercise routine through the holiday season. Staying healthy is the only way that you can enjoy the fruits of success as an entrepreneur.

2. Take some great pictures. The holiday season is a great time to get some pictures of family and friends. Perhaps you can use one as a background on your desktop to use as motivation in the new year.

1. Take a much-needed break. Relax a bit; you deserve it! Rest up so that you can tackle 2010 and make it your year to get one step closer to fulfilling your entrepreneurial dreams.

From everyone at Garage Entrepreneurs, Happy Holidays!

The Generals start with a given set of means (military training, political power) and seek to identify the best way to arrive at their goal.  The entrepreneurial Generals begin with a set of means: their abilities, their education/experience, and their networks (who they know) and use this set of means to come up with new ideas/solutions to problems.  They start with a goal (to start a summer business), and look to determine the best (least expensive, fastest, most convenient) way to arrive at their goal.

The Explorers however, are like Christopher Columbus.  They begin their voyages into places they don’t fully understand and allow their destination to emerge over time as they continue on their voyage.  Their business plan may change day-to-day, or month-to-month, but there is always a good story that keeps the team together, and brings in more team members along the way.

So, what type of entrepreneur are you?  An Explorer, or a General?

For the Generals:

• Realize that you can’t fully “learn” entrepreneurship – there are certain things business schools don’t teach (see Tim Berry’s post on this) like how to deal with people, how to find a work-life balance, how to know when to fold (know when it’s time to try something new)
• Your plan will never be perfect, so don’t try to make it that way – it’s an ongoing process
• Always look to expand your set of means: your abilities, your education, your networks – in doing so you will find new opportunities.

For the Explorers:

• Although you can’t “learn” entrepreneurship, there are certain things you CAN learn – meet with experienced entrepreneurs who have been through the process and are willing to share their experiences with you
• Keep yourself motivated by reading entrepreneurial blogs, subscribing to magazines, becoming involved in your entrepreneurial community – you need to keep the vision and the spark alive to bring in talented team members along the way and to keep the team spirit high
• Don’t be discouraged from doing some planning – a plan doesn’t need to be a written document, it’s YOUR plan
• Endurance is key – most people give up just before their first success.

I have a picture in my office depicting the journeys of Christopher Columbus, setting out on voyages into uncharted waters and discovering the New World.  I realize now that our plans are made and unmade on a daily basis.  These changes don’t negate the value of a good plan, but are just a regular part of the entrepreneurial process.

Although the formal business planning is important, the map is a constant reminder to me that I should always be willing to think of my business from an Explorers point of view:  we have a vision for what we’d like to be, and a plan to get us there, but each day presents a new, unique challenge and we should be ready and willing to take it on to move our business forward – so should you.

As an EIT (Entrepreneur-in-Training), you need to realize that a great business idea will never just ‘fall into your lap’.  In my experience, and from speaking to successful young entrepreneurs, you must actively partake in an ideation process.

There are many places that you can look for a good idea, but some of my favorites have been included in a past post that I wrote on Entrepreneurial Resources.  Among those are:

Twitter: Following like-minded entrepreneurs who dedicate their time to reviewing and sharing entrepreneurial resources is very worthwhile.

Google Reader: It’s difficult to follow all the great entrepreneurial blogs out there but Google Reader helps me keep up to date.  It shows all new blog posts and will mark them as ‘unread’ until I read through them – great system.  Ben Yoskovitz mentions a few great ones in his recent post Check Out These Startup Blogs.

Newsletters: Check out Trendwatching and Springwise – enough said.

Magazines: Although I do a lot of online reading, I still enjoy sitting down to read a good old fashioned magazine every once in a while.  I subscribe to Inc., Fast Company, and Canadian Business.

Free E-Books: We have many free e-books in our Resources section, but there are many more available on DocStoc.com as well as Google Books.

After you’ve been inspired, there are a few options for figuring out when you should become an entrepreneur.

First, you could put some time into researching and (using some suggested entrepreneurial resources to find an idea now) plan to pursue an idea as soon as you are able.  You could use the above resources and, either individually, or as a team, review new start-up ideas periodically.  In fact, you could start finding an entrepreneurial-minded team today on Garage Entrepreneurs!

You may also keep your eyes open as you pursue other career options.  Many ideas stem from observations that entrepreneurs make in their immediate world.  Entrepreneurs build companies to exploit opportunities or fix problems that get noticed in our own lives and you will be more likely to encounter opportunities when you have a hands-on approach.

Expand your horizons and place yourself in the “idea flow” of new business ideas.  Websites like Springwise and KillerStartups review a large volume of new start-ups every week.  Get a group together and review some of these ideas today!

Eric: How did you start out as an entrepreneur?

Ben: I started my first company in 1996 while I was still at McGill University. I connected with my three partners at the time while working for an online magazine (remember, this was 1996!) They were interested in starting a company, and I joined along with them to help out. That launched me into being an entrepreneur. That company was later acquired by a U.S.-based firm. From that point in 1996 onward, I’ve been an entrepreneur. Incidentally, I did still complete my degree at McGill (which was a BSc. in Psychology).

Eric: Tell me more about Standout Jobs, your current startup.

Ben: I started Standout Jobs in 2007 along with Fred Ngo and Austin Hill. Since starting the company, it’s evolved considerably. Our focus shifted from helping small companies and startups with their recruiting effors, to helping larger companies, with broader recruitment needs.   It [is] really about taking the tools and techniques companies were using for marketing themselves and applying those to recruitment.

Eric: You say that you learned more in 2007 about business and startups than in all years prior – could you elaborate on that?

Ben: In 2007 we founded Standout Jobs. That was a big learning experience versus my previous experience founding companies, because it was done with a much bigger vision. We also raised capital for Standout Jobs from venture capital and angel investors. Up until that time my experience with raising capital was extremely limited.  [Since] Standout had just started, we hired employees, began product development, raised capital and we were racing like maniacs.  It’s been an incredible experience.

Eric: From that experience (2007), what do you think your greatest strength is as an entrepreneur?

Ben: My greatest strength as an entrepreneur is that I get things done. I can be extremely productive, even in a situation that requires you to juggle a ridiculous number of balls simultaneously. I have met a number of entrepreneurs that are stronger when it comes to their vision for the future, but I’ve always leaned more towards execution than anything else.

Eric: Where did you learn all your “entrepreneurial secrets”? What was your biggest source of information/motivation?

Ben: I don’t think there are any real entrepreneurial secrets. Luckily there are a lot of mentors out there who are willing and able to help young and first-time entrepreneurs. I do recommend you find a mentor with previous startup experience; it can be a huge help.

My motivation comes from within. I don’t think it can come from anywhere else for an entrepreneur.

Eric: What is the best advice you would give to an entrepreneur just starting out?

Ben: First, find a mentor (or two, or three). Find someone who has “been there, done that.” And once you’ve found them, use them. Don’t just list them as an “advisor” on your corporate website.

Second, get involved in the startup community. There’s no excuse for not getting involved, participating and networking.

[Finlly], understand customer needs and validate, validate, validate. A common mistake is for people to get a “good” idea, build something right away, launch it and then look for customers. That’s a big mistake. You need to take your idea and validate it against customer needs. I would recommend every entrepreneur reads Steve Blank’s Four Steps to the Epiphany, and that every entrepreneur does a Google search for “lean startup” and looks up the concepts being pushed by folks like Eric Ries.

Eric: Thanks so much Ben! Great lessons for entrepreneurs. I wish you all the best with Standout Jobs.

You can check out Ben’s blog at http://www.instigatorblog.com. Be sure to connect with Ben on Garage Entrepreneurs.  Check out Ben’s profile here.

If I could go back in time and give some advice to myself when I was starting my first business, these are the 10 things I would say:

1. This first attempt at this business is going to fail. But do it anyway because you’re going to learn a lot that will make the next attempt successful.
2. Don’t listen to the critics. A lot of people will tell you your idea will never work and to just give up but they didn’t write the business plan and do the research –you did.
3. Listen to the constructive criticism your mentors and supporters give you but don’t feel compelled to accommodate all of their feedback.
4. Being an entrepreneur is tough. Perseverance is key. Stay focused on your vision and don’t even think about giving up.
5. Work on making meaning first. Making money will follow. This may not make sense to you right now but by making meaning, people are going to talk about you and this exposure will bring more opportunities than you would have been able to get without it.
6. Build personal relationships with people even if there’s nothing in it for you. Reach out and help others when you can. People notice the little things you do even when you don’t think they do.
7. You crawl before you walk. You walk before you run. Things may not always move along as fast as you’d like but businesses are built one step at a time.
8. You can’t please everyone. There will always be people that you just can’t please and those people aren’t worth your time.
9. Don’t be afraid to take risks and make major changes if something isn’t working. Entrepreneurs must be dynamic.
10. Follow your gut. If something doesn’t seem right, it probably isn’t. Intuition is a powerful force that you shouldn’t ignore.

As an entrepreneur, or EIT (entrepreneur-in-training) do you sometimes find it difficult to stay on track?

If you don’t set limits on your time, you’ll quickly become overwhelmed.  I’ve come up with a technique that helps me stay on track, it’s called “Buckets“.

About every four months I come up with a list of buckets that are most important to me.  This list is short and sweet – and currently consists of five buckets:

1) Spending time with family/friends.
2) Physical fitness.
3) Building the ‘Me Brand’.
4) Reading.
5) Exploring new opportunities.

Every day, to feel like I’ve accomplished something, I simply need to make a contribution to each ‘bucket’.  These buckets actually guide my daily thinking.

Example 1: Should I take an hour break today to have coffee with a long-time friend or catch up on e-mails?  Do the coffee date!  E-mails can wait, and although a coffee break can sound like procrastinating, it is helping me fill my #1 bucket.

Example 2: Should I kick back and watch TV after a day at the office, or go to the gym?  Get to the gym!  I’ll feel so much better after I’ve contributed to my #2 bucket.

These buckets not only help shape my thinking on a daily basis but I’m able to actually guage how much I’ve achieved in a given day based on how many contributions to each bucket I’ve made!

Today I was able to: Go to the gym with a friend of mine (Bucket #1 and #2), write a new blog post (Bucket #3), attend an entrepreneurship networking event (#3 and #5).

On any given day it can feel like you’ve been ’spinning your tires’.  Develop your own buckets so that you can accomplish something great today.

As an entrepreneur this is going to happen – I can guarantee it. You’re going to make great progress one day, only to realize that the very next you’ve run into a new problem. This is the nature of entrepreneurship. It’s always going to be an uphill battle. Never settle for less. Never admit to an easy defeat. Never sit on your laurels and stay idle while competitors creep up on you. The minute you become idle is the minute you lose your edge, and your edge is what keeps you motivated.

Do you have the entrepreneurial X-factor? Do you have the zeal, the hustle, the dogged determination to make your new idea become the next big thing?

Lean on your business partner.
Fortunately for me, I have a fantastic business partner who has always kept the bigger picture in mind. Before the start of the new year I sat down with my partner for a planning session. In this meeting, we established that I would be very busy during a few key months and I was worried that I would lose track of the big picture. We decided that my partner would be the one to handle the day-to-day operations of the business, and would delegate tasks to me. I would be able to fulfill my end of the commitment by completing tasks that would help achieve our business goals.

Re-igniting the passion.
I am trying my best to stay on top of industry trends, markets changing, new competitors, etc. If I lose touch with the core of my business it will be lost time that I may never make up again. I’ve gained so much domain knowledge over the past six months and it would be a shame to fall behind because of a few months of losing touch. I’m hosting entrepreneurship info sessions with a group of younger entrepreneurs that I mentor, I’m working with Entrepreneurs-in-Residence at my school’s Entrepreneurship Institute, and attending seminars, and lectures and speeches related to entrepreneurship. I’m reading, and writing and staying involved. Being around successful entrepreneurs is inspiring and incredibly motivating.

Planning.
Every week I’m planning out how I’ll fit my business objectives into my personal timetable. Unless I make these actions a priority, they’ll build up and will not get accomplished. If I fall behind, one small step at a time, it will end up pushing my business down my list of priorities, and I may miss out on opportunities. I have created a dual calendar with my business partner on Google including our personal calendars as well as a “Business Calendar”. This way we’re on the same page for meetings, deadlines, etc.

Dream Big.
Remember what you’re in this for. Remember where you started and where you know you’ll one day be. Is it for personal achievement? Do you want to change the way things currently work? Do you want to make pantloads of money? Whatever your motivation is write it down on a sticky note and stick it in your bathroom mirror so that you never forget, and never lose your motivation to move your business forward even when you have difficulty finding time to brush your teeth.

Get up early.
Try getting up an extra half-hour or hour earlier to squeeze more into your day. So many successful entrepreneurs have found time to squeeze in activities that other people do not. Get up, get out of bed, and accomplish something great today.

Stay in shape.
Okay, maybe you think that this doesn’t tie into business success but I would suggest otherwise. Being in great physical condition makes you feel good about yourself, give you confidence, and energizes you. Hammering out an hour in the gym or twenty minutes on the treadmill also allows me the time to forget about everything else. When I’m working out I really am more relaxed than if I were to sit in front of the TV. When I sit on the couch I’m constantly thinking about other things that I should be doing, but when I’m at the gym I forget about everything else – it’s a great release.

Inspire others.
I love talking to other people about our business and what we’re doing. When I land a great new deal, I love talking about it with close friends. By showing them where I’m at, I get a sense of accomplishment and I also get an opportunity to receive feedback from neutral sources. You never know when you might get the feedback that inspires you to take your business to the next level.

When you’re tempted by opportunities that are outside of your core business (in our experience) you’re prone to fall. This is not to say that you should not turn down good opportunities (after all how will you ever discover new oceans if you never lose sight of the shore), however with multiple opportunities, some will fail.

The good news: entrepreneurs can recover. Success never comes right away. In my first student-advertising business I struggled to bring in my first clients, and I was tempted to make changes before I really knew what I was into. I fell after spreading myself too thin, and I began to waiver from what my original goals for the company were. But I recovered after I re-focused and devoted my daily efforts towards those activities that would move my business forward.

For those of you who are new at the entrepreneurial lifestyle I’d be surprised if you don’t soon (or haven’t already) discovered the: tempt, fall, recover routine.

There are a number of resources that we use on a daily basis as entrepreneurs. Most are easy-to-use and require a minimal time commitment. Here are some of our favorite resources:

1. Twitter: You all know what Twitter is, but do you know how to use it? Twitter is a great way to hear what other entrepreneurs are talking about. Our favorite entrepreneurs often share links to articles that they think other entrepreneurs might find interesting or helpful. We update Twitter daily with helpful tips, article and blogs for entrepreneurs and you can see our Garagepreneur Twitter page here. You can also see who we follow and add them to your ‘following’ list. In no time you’ll have a list of entrepreneurs who dedicate their time to sharing great entrepreneurial resources.
2. Google Reader: Blogs are fantastic tools, but no one has time to visit their favorite blogs each and every day – that’s why I use Google Reader. Using Google Reader, you can add subscriptions to your favorite blogs which are compiled in one spot. I subscribe to about 15 blogs. If I miss a day or I’m off for a week at the cottage, I can come home and catch up on all my missed reading on Google Reader. Some great blogs to start out with are: Business Opportunities Weblog, Seth Godin’s Blog, and Small Business Trends…and of course the Garage Entrepreneurs Blog (but you’re already here)!
3. Newsletters: Although I don’t like my e-mail inbox cluttered with newsletters, there are a few that I do enjoy. Entrepreneurs get inspiration from a number of different sources but a big source for me is Springwise. Springwise is a leading source of the world’s best new business ideas which sends out a weekly newsletter – great source of inspiration. Trendwatching is another great site which searches the globe for new consumer trends and then publishes exciting reports on the findings. You can sign up for a newsletter highlighting all the newest trends, or download the full reports from their website.
4. Magazines: No, magazines are not dead! Although blogs are fantastic resources for entrepreneurs, sometimes I like to read something on paper either at the office or with breakfast. To keep up with the newest entrepreneurial thoughts and ideas I subscribe to Inc Magazine ‘The Daily Resource for Entrepreneurs’, Fast Company Magazine, and Canadian Business Magazine (to stay on top of local trends). These subscriptions cost a little under $30 each for the entire year and are well worth the investment.
5. Market Research Reports: Typically entrepreneurs think about doing market research when they are investigating a new business idea – I often do some light reading as an inspiration for a new idea. These reports, which can cost up to $4000 are free to university students! I recently downloaded four $3,000 reports free of charge! These reports are extremely detailed and provide excellent insight into a specific demographic or industry – I’m currently reading “Active and Fit Consumer Products”. If you’re a university student, check out www.MarketResearch.com – you might have free access!
6. Free E-Books: There are some great free e-books for entrepreneurs out there. Check out DocStoc.com, and Google Books for some great free entrepreneurship e-books. We’ve also been working hard to bring you a new free e-book library in our Entrepreneurial Resources Section. We’re working hard to bring you the best resources for young entrepreneurs.

These are just a few of our favorite entrepreneurial resources, what are your favorites?

To change things up slightly, I’ve included the slide deck that we’ve used to teach this topic as a lecture in the past. This information has traveled as far as Togliatti, Russia in a lecture to local entrepreneurs looking to understand entrepreneurial marketing concepts.

Feel free to send it to a friend or use it in one of your own lectures!

· Customize your twitter page with your brand’s logo and colours so that your page doesn’t look like every other twitter page.

· Join a directory of twitter users. We’re listed in the entrepreneur and startup category on Just Tweet It and Twellow.

· Poll your followers to get feedback on your ideas and products.

· Follow up with people who are recommending or mentioning you by checking your @replies.

· Automate your twitter experience and track mentions of your name or business by using a program like HootSuite.

· Offer special discounts to your twitter followers. Dell has successfully used twitter to generate around $3 million in sales by offering promotions through its @delloutlet twitter account.

· Recruit employees.

· Incorporate twitter into your business model. For example, @IMshopping answers your shopping questions, and suggests and compares items for you. This works for many other industries.

· Offer customer support on twitter. Jet Blue Airways answers customers’ questions via its twitter account @jetblue.

· Find a mentor by asking questions to experts in your field.

· Connect with businesses to collaborate and partner with.

· Find potential clients and customers by looking at who’s following businesses that offer similar products and services and follow those people.

· If you have a retail location, update people on promotions and what’s going on. A London bakery updates customers on the freshest thing out of the oven via twitter at @bakertweet.

There’s no right or wrong way for your business to use twitter, as long as you’re using it! How are you using twitter to build your business and brand?

The next stage of business development is critical to your success: survival. At this point you’ve proven that your business works and that you have enough customers to keep providing your product/service – the key problem now shifts to the relationship between the money that you take in (revenues) and the money that you put out (expenses). Here you need to generate enough revenues to cover your expenses and finance growth (buying new equipment, hiring new employees).

Here is a critical lesson for entrepreneurs: A company can go bankrupt even if it is profitable. How? Allow me to explain.

Imagine for a moment that you operate a sheet metal company. Your company takes raw materials, flattens them into sheet metal, and ships them out to auto manufacturers. Picture a pile of raw steel that you’ve paid $15,000 for. You take the metal and flatten it into sheet metal, then ship it out to the auto manufacturer at a sale price of $25,000. Often times, customers don’t pay right away and in this instance the auto manufacturer says they’re going to pay you the $25,000 in 60 days. At the same time, you have to pay $5,000 in wages tomorrow and pay for another $15,000 load of steel to start making the next order. You’ve put out $15,000 today, and will be putting out another $20,000 tomorrow but you won’t be getting paid for another 59 days! You’ve got some issues.

In this example, your metal supplier may want payment before they drop off the delivery or they could refuse to supply you-and if you can’t pay for materials you won’t have any products to sell. In addition, if you can’t pay your employees they could quit and then you’ve got even bigger issues!

In order to survive even in the most simple business, you need to understand what your cash INFLOWS are. There are only three basic sources of cash in a typical business:

1. Your customers
2. People who loan you money
3. You (the owner).

You need to rely on these sources to survive so treat them with care. So, how can you improve the cash flow in a business?

Shorten Collections Period: In the above example, negotiate with your customer to reduce the 60-day payable period. Give a slight discount if they pay you in under 15 days and it could motivate them to pay faster.

Extend Payables Period: Negotiate with your suppliers to extend the period of time in which they want to get paid. Ideally you want to match your collections period (time that you get paid) with your payables period (time that you pay).

Raise Prices: Although this could lead to decreased sales, sometimes a slight price increase can create some extra cashflow for your business.

Reduce Costs: Are you paying yourself or an employee too much? Can you switch to basic internet instead of premium? Where can you cut some corners and operate your business more profitably?

Approach the Bank to Finance Shortfall: Sometimes a bank (or a friend) will lend you money to finance the gap between what you have coming in and what you need to pay out. Approaching a bank is a big step and requires quite a bit of preparation (to be provided in a later post).

To keep track of all this information, try creating a simple cash budget showing the following:

• A schedule of the expected timing of your cash coming in (sales made, sale of assets, loans)
• A schedule of priorities for paying debts (paying wages, purchase of new equipment, loan payments)
• Also try to factor in a bit of a cushion for unexpected changes in circumstances (drop in sales, etc.)

Remember that this budget will not be entirely accurate, and is not immune from changing circumstances; it is an ongoing process. When changes occur, revise the budget to determine the impact on your business.

Here are some more common mistakes that entrepreneurs make which strain cash flow:

1. Producing too much inventory to keep per unit costs low – If you started a design company, don’t purchase 50,000 blank business cards when you only need 5,000 just because the unit cost is lower.
2. Extending too much credit to risky customers – When you cut your Uncle Jim’s lawn, don’t tell him that he can pay you whenever he wants if he hasn’t paid you for the last five lawn cuttings.
3. Growing too fast without planning for increases in cash requirements – Like in the steel example above, realize that if you grow quickly, you’re going to have to put out a lot of money in order to make a lot of money. Plan for that GAP in what you make vs. what you owe.
4. Over estimating demand in business – When budgeting, be conservative. Don’t guess that business is going to grow 500% over the next year; do a high/low scenario showing an optimistic/pessimistic outlook. Can you still cover your cash needs if you don’t hit sales growth targets?
5. Borrowing too much – Don’t get stuck financing the GAP too much. What if Aunt Lisa has loaned you $500 to start your business and suddenly she wants it back next week; will you be able to continue?

Some of these concepts can be hard to grasp initially but they are incredibly important – if you have further questions please ask.

Now that you can manage some of that cash, how can you grow your business? See our next post in the series on Entrepreneurial Marketing.

I love talking to entrepreneurs, people who don’t follow the typical path, people who explore the road less traveled. Reminds me of a quote that I came across recently that I loved: “Do not go where the path may lead. Go instead where there is no path and leave a trail.” Very entrepreneurial, very motivating, very reassuring, especially when you are first contemplating a path less traveled and starting your own business.

In speaking with this entrepreneur I became excited about what he was telling me, I effectually became excited about his business and the renewable energy industry, an industry that I previously had little interest in. The passion that this individual has and is able to convey to others is incredible…and it made me wonder if that passion could ever be extinguished. I too am in the middle of launching a new business with a few partners and I’m extremely excited about what I’m getting into. Often when my peers ask me what my plans are in the near future and I explain what my business does they ask tough questions, they prod for holes in my business model, they’re critical. Until recently I found myself getting frustrated with these individuals. I felt their prodding for errors in my logic to be disrespectful, and I asked this entrepreneur about these individuals. “How do you deal with the criticism all the time” I asked. “I listen to it” he responded. I listen to it.

He realized very early on the value in the critical assessment of his projects by his peers, a lesson that I learned only recently. These critical questions and comments can be hard to handle sometimes but maybe it does hold weight. He suggested I listen to these critics and take the free advice, and take it I have. I now have a more refreshed attitude towards fielding tough questions and I voice the concerns of my peers at business meetings with my partners. More often than not the critiques can be documented and overlooked, but every so often a few have weight, and we have actually modified our business model slightly to incorporate these “criticisms” which have actually turned into considerations and sometimes into marked improvements. This new attitude towards critical questions has refreshed my own excitement about my new business venture.

Listen to your critics – take the free advice.

All great businesses start as 'ideas' - it's up to you to make them grow into something great.

All entrepreneurs begin with three “assets”:
Who they are – their character traits, their abilities, their time commitment, their tastes
What they know – their training, expertise, experience; and,
Whom they know – their social and professional networks

These are the starting points for any entrepreneur, and from these points one can begin to brainstorm possible effects that can be created with them. To illustrate this point, I turn to the case of Chip Wilson, CEO and Founder of Lululemon Athletica:

After 20 years in the surf, skate and snowboard business, Wilson took the first commercial yoga class offered in Vancouver and loved it. The post-yoga feeling was so close to surfing and snowboarding that it seemed obvious that yoga was an emerging trend. Cotton clothing was being used for sweaty, stretchy power yoga and seemed inappropriate to Chip, whose passion lay in technical athletic fabrics. From this, a design studio was born that became a yoga studio at night to pay the rent. Clothing was offered for sale and an underground clothing movement was born. Lululemon started in 1998 and is now a national retailing powerhouse valued at more than $225 million.

The message here is that successful entrepreneurs are not necessarily those who have a solid long-term plan or who know what their market will look like in the future. Instead, they look at the resources they have available (abilities, knowledge, contacts) and with that develop an idea into a business. In the case of Lululemon:

Who – Chip was looking for a new challenge and was very motivated and looking for new opportunities.

What – Chip was aready in the athletic apparel business and knew it well.

Whom – Chip had connections in the athletic apparel and yoga areas and was able to pull them together.

Anyone can be an entrepreneur if they have the passion. Future posts will reveal how to turn ideas into business but let’s first narrow down how to think of your next idea. We’ve already covered how to assess your three assets, now you need to take those and determine what idea makes sense in the context of those assets.

For the most part, ideas don’t just happen – the best way to find a good idea is to LOOK for a good idea. Follow these tips to help you out:

Follow Your Gut: Chances are you’ve had some ideas before, some good, some bad. If there is one that stands out in your mind, give it a chance to develop. Write it down, do some serious thinking about it, schedule some time to sit down and hash out some details – but most importantly don’t dismiss it!

Don’t Give Up: Just to re-iterate, most breakthrough ideas are not the result of one defining moment. They have evolved over time, and become better and better. Give your idea the chance to become better – don’t give up on it.

Change It Up: Ideas don’t have to be new, they can be improvements over existing models, or a new combination of old ideas. Think outside of the box and think of new ways to combine old ideas. I just did a phone interview with the CEO of Autohound.ca, the new competitor to AutoTrader. Autohound focuses on the user experience and providing more value to car dealers; not exactly a revolutionary idea, but a marked improvement over the old one!

Dream: Don’t be afraid to let your mind wander. Think of a current problem that you’re facing and come up with the ideal solution withNO LIMITS (Time, Money, Laws of Physics, etc). Is there a way to turn this dream idea into a reality?

Keep an Idea Journal: During a brainstorming session it is critical to write everything down; seemingly good or bad. Some of the best ideas come after struggling, and quitting, and giving it another go. Write down all your ideas, and dream solutions in an idea journal and review them frequently.

Walk Away: You’re not going to get your dream idea by sitting in a locked room for 48-hours straight. Walk away from the idea journal, go for a run, but keep thinking.

Notice Changes: Take note of the way things are, today, and imagine how they will change in 5, 10, 25 years. Here are a few trends off the top of my head: We have an aging population, children are living increasingly more sedentary lifestyles, employers are finding it difficult to hire new employees, more organizations are promoting the reduction of wasteful consumption, more businesses are looking for ways to advertise to the student demographic.

Find New Friends: This year I made a habit of socializing with a different group of people. I learned new things, and definitely got a lot of new ideas. Hang out with people who might challenge your thoughts and put you outside of your comfort zone.

Get Creative: Sometimes you need a helping hand. Read creative thinking books, or use THIS LINK to help you think outside of the box.

Although these steps cannot guarantee that you think of a good idea, they’re a great start. Try some of these techniques and be sure to check out the next post in the series “Screening Your Idea”.

In reading about author/entrepreneur Timothy Ferriss’ ‘Low Information Diet’ he says that you need to either use the information that you read right away or you will forget it.  I found that I was taking in a lot of great info on a daily basis but not retaining a ton, so I bought a small 9 x 7″ notebook, and I decided that I would use the notebook to write down cool thoughts/lessons learned and read it over every so often.

I find that as I read articles/blogs, what I’m reading is often not immediately relevant, but may come into play down the road – could be a day, a week, or a year but eventually it will be meaningful.  Start keeping track of the quotes, comments or ideas that really strike a chord with you – you never know when they might be of use to you (or others)!