Page 4 – Innovation Cluster

2022.07.07

How to Write a Good Elevator Pitch for Startups

When you’re trying to grow a startup business, entrepreneurs should do a lot of networking to drive brand awareness and connect with the right people. Whether you’re attending a formally organized networking event, an industry conference, or you strike up a conversation with someone in public, it is essential that every startup is ready to go with a well-executed elevator pitch. Having a good elevator pitch can mean the difference between attracting interest from an investor, landing a new client, or connecting with a startup mentor who can contribute significantly to your company’s success. So, what exactly should a good elevator pitch for startups look like?

We have included all the essentials so you are ready to create an elevator pitch that is memorable and effective.

What is an elevator pitch?

An elevator pitch is a concise yet powerful description of your idea, business, or product that can easily be verbalized in the time you would be on a short elevator ride – about 30 seconds or less.

In that half a minute, the person you are pitching to should clearly understand what it is you do but left feeling intrigued, curious, and wanting to learn more.

Nailing your pitch is what will separate you from others, and it will open up large opportunities for your business.

What is an example of an effective elevator pitch?

An example of an effective elevator pitch comes from Text Request, a small business specializing in texting software.

Your business relies on communication with clients, but calls, voicemails, and emails are less effective with people under 40. But almost all texts are read within three minutes. Text Request makes live two-way texting possible for your business with our easy-to-use dashboard. People can text you, too, and we can even use your current phone number in many cases. Other businesses use Text Request to increase leads, grow revenue, improve operations, and drive customer satisfaction, all because of the power to connect instantly.

Using Text Request’s pitch as an example, we will outline how to write an elevator pitch, what information should be included, tips to consider, and things to avoid.

How do you write an elevator pitch for startups?

Capturing a person’s attention in a short amount of time can be a challenge. That is why effective elevator pitches are packed with vital information about the business (without being overbearing).

An effective elevator pitch should include the following important information:

Who you are

Text Request

What you do

Makes live two-way texting possible for your business with our easy-to-use dashboard.

Why you do it

Business relies on communication with clients, but calls, voicemails, and emails are less effective with people under 40.

What makes your product standout

Businesses use Text Request to increase leads, grow revenue, improve operations, and drive customer satisfaction.

Who you serve

Businesses that rely on communication with its clients.

3 Tips for Writing an Elevator Pitch

1. Capture their attention.

Beginning with a question or strong statement that highlights the problem your business is solving is a great way to capture your audience’s attention.

Example: Your business relies on communication with clients, but calls, voicemails, and emails are less effective with people under 40. But almost all texts are read within three minutes.

2. The simpler, the better.

When an elevator pitch gets too technical and complicated, you will lose your audience. Remember, no one knows your business more than you do, and sometimes industry terms and concepts are not as widely known as you may think.

Example: Makes live two-way texting possible for your business with our easy-to-use dashboard.

3. Focus on an issue faced by your target audience.

What issues are they currently struggling with and how does your business solve their problems?

Example: Calls, voicemails, and emails are less effective with people under 40.

3 Mistakes to Avoid When Writing an Elevator Pitch

1. Don’t be a robot.

Having a well-prepared elevator pitch is essential, but you also don’t want to sound too rehearsed. There is a balance between being prepared and sounding like you have memorized your pitch word for word. Practice saying your pitch in a way that seems natural and will flow at networking events.

2. Don’t give too much away.

There is a difference between providing all of the important information about your business and revealing every little detail. You want to leave your listener wanting more.

3. Don’t be pushy.

An overly aggressive salesperson quickly makes people uncomfortable and uninterested. Your pitch should exude confidence, but do not make your audience feel pressured to invest or become a customer on the spot.

How can you improve your elevator pitch?

Improving your elevator pitch really comes down to one word – practice. It takes time to master a pitch. Do not feel discouraged if, in the beginning, you feel a bit shaky in your delivery — the more you do it, the more natural it will come to you.

The mentorship of a startup incubator can help you finesse your pitch, work out the kinks, and help you prepare to “go live” at upcoming networking events.

Startup Fundamentals

2022.06.29

10 Entrepreneurial Skills Every Startup Founder Should Have

The only difference between a great business idea and a great startup business is making the decision to go for it. This can feel like you are standing on the edge of a tall diving board debating whether to take the plunge. If you are contemplating jumping in the water, knowing what entrepreneurial skills are essential for success will help determine if you are ready to embark on this new journey.

Why are entrepreneurial skills so important?

When you first transition from working for a larger organization to becoming a startup business owner, you experience a lot of exciting, new freedoms. What is also new is no longer having a full team of people with interdisciplinary skills to accomplish projects and reach goals.

Acquiring essential entrepreneurial skills will prepare you for the road ahead, especially in the beginning stages. When starting out, you truly are a jack or jill of all trades.

What are the essential entrepreneurial skills for success?

1. Perseverance

Every startup will experience some form of roadblock, rejection, mistakes, failure, and slow progress. These experiences do not determine the fate of your business, but how you react and deal with them can. The ability to persevere through harder times with resilience, optimism, and determination is arguably the most important skill to have as an entrepreneur, and it will ensure that you can keep your eye on growing your business no matter what scenario is thrown your way.

2. People Skills

It does not matter what type of business you will have or what industry or sector you will be in – well-developed people skills will always be critical for success.

Whether you are working with a team, corresponding with customers, or acquiring investors, knowing how to properly and effectively communicate and work with people will prove to be an essential part of running your business.

3. Passion

If you do not strongly love and believe in your startup’s product, service, or purpose, you will not have the same drive to reach success.

Passion is the only essential skill that cannot be taught, and it is a key ingredient that will not only help lead to success, but it will make your startup journey so much more enjoyable.

When we refer to passion, we are not saying you need to be head over heels with your business every minute of every day. In fact, there will probably be weeks where you feel deflated. What is important is that overall you have a huge desire to turn your once great idea into a viable business.

4. Communication

Learning how to communicate clearly, effectively, and creatively is what will set you apart as a brand or the next big investment opportunity.

As a startup, networking is a large part of growing a business and forming important connections, but if you do not know how to communicate what sets your brand apart from the competition and why there is a need for your product in the market, you will find it very difficult to win over new customers, investors, and potential new hires.

5. Time Management

This skill cannot be emphasized enough. Learning how to effectively manage your time will keep you working toward your goals and not becoming easily swallowed up by day-to-day operations.

Time management can be a tricky skill to master when it feels like you have a million things to do, but it will provide you with work-life balance which will lead to you being happier, more focused, and rejuvenated to give your best ideas and efforts toward your business.

6. Sales

Sales never end as an entrepreneur. You are constantly selling yourself and your business to everyone you meet whether it is a formal networking event, investor pitch, or you strike up a conversation with someone in public.

As a startup business owner, you are the first salesperson at your company, and you must acquire sales skills to initially get your business off the ground.

7. Ability to Learn

Entrepreneurs are constantly learning. You may have advanced technical expertise, but do you have any experience with marketing or accounting?

When you are first starting out, you will need to embrace the idea of lifelong learning and being open to trying your hand at many new skills to run your business.

Once you reach a certain level of success, you will be able to recruit team members with skill sets and expertise that will be an asset to your startup’s growth. Even once your company has added many team members, you will constantly run into new concepts and things to learn to lead your business in the right direction.

8. Teamwork and Leadership

The skill of working well in a team and leadership are typically referenced separately. However, with entrepreneurship, we feel these two skills are so closely linked that they should be placed together.

At a large corporation, there is a substantial division between team members (employees) and leadership (management). At a newly-formed startup business, teamwork exists daily between business owners and their employees as there are very few people to accomplish many goals.

Strong leadership skills are essential at any stage of growth but don’t forget that having strong teamwork in place will not only make you a better leader, but it will form a healthy work environment that will be most effective at achieving your goals.

9. Critical Thinking

Critical thinking skills are synonymous with entrepreneurial skills – they are required to develop business strategy, problem solve, rethink the effectiveness of projects, and look at situations from varying perspectives.

Critical thinking skills are also necessary for strategic planning and knowing when change should occur to improve your business.

10. Finance Management

Having financial skills does not mean you need to be an accountant. Financial management in this context means that you know how to create a startup budget and understand startup business taxes.

When it comes down to it, if an entrepreneur has many great skills but does not have any in the department of finance management, the business will be in trouble.

How do you develop entrepreneurial skills?

After reading our list of essential skills, you may realize that there are a few that you may need to work on. Not to worry! It is rare that someone has all of the necessary skills when launching a business.

Here are 5 recommended ways to refine your entrepreneurial skills:

Network with other entrepreneurs and industry professionals

Learn what your peers and industry professionals are doing. This can provide great insights!

Find a startup mentor

A fantastic way to develop the skills you need is to connect with a startup mentor.

Learn from a variety of sources

There are many books, articles, webinars, Ted Talks, and magazines that are rich in reliable and educational information. You may also consider registering for a course.

Attend industry or skill-based events

Find out about upcoming conferences, seminars, or online events that can refine your knowledge and skills.

Research the benefits of joining a startup incubator

Startup incubators are great organizations that help entrepreneurs develop a wide range of skills to help their businesses become successful.

How to use entrepreneurial skills to run your startup business?

When you begin running a business, you may have more advanced entrepreneurial skills than you think.

However, sometimes when you’re into the day-to-day operations of your startup, it can be easy for the essential skills to be forgotten.

Try to revisit this list of essential skills regularly and evaluate in which areas you are excelling and others where you could improve.

The key is to remember that no one is perfect, even seasoned entrepreneurs. The idea is to always practice these skills until they become natural in your daily routine.

Operations

2022.06.23

8 Productivity Hacks for Entrepreneurs to Be Successful

It feels great completing a project or task. You feel extremely accomplished like you are making real progress. But this moment is often followed by the realization that three more tasks now need to be done, and it feels like you are always taking one step forward and then three steps back. This feeling is common amongst entrepreneurs, but the key is to learn how to best allocate your time. To help you stay focused and keep your eye on what’s important, we are sharing 8 productivity hacks for entrepreneurs that will help you be more efficient and successful.

How can entrepreneurs increase productivity?

1. Stop creating to-do lists.

First things first, cancel the idea of to-do lists. You may think they help you stay on track, but they actually just end up making you feel more overwhelmed. We suggest taking your current to-do list and transitioning it onto a calendar.

Begin with one project. Estimate how long it will take you to complete it from start to finish. Then place the project on your calendar, working back from when it needs to be finalized.

If the project will require multiple days, weeks, or even months, schedule time each day to work on it. This will keep you on track, not overwhelmed, and meet your target deadline.

2. Multitasking accomplishes less, not more.

Startup business owners always have a lot on their minds and several projects on the go. As much it may seem that juggling multiple tasks is getting more accomplished, the opposite is true.

Multitasking disrupts your attention and thought process. As a result, you are giving subpar effort to multiple projects rather than exceptional work to one.

Schedule projects on your calendar (as outlined in # 1) so you can give your full attention to one project at a time.

3. Delegating is easier than you think.

Passing the baton to others can be scary. After all, as a startup owner, your business is your baby. However, your company cannot continue to grow when you try to do everything on your own.

Consider if you are ready to hire more team members that can help lighten your load. Hiring team members as a startup opens up a great opportunity to add new skill sets to your company, and you can acquire people who have expertise in areas that you don’t necessarily have.

4. Urgent tasks should not always come first.

Does this one come as a surprise? The truth is, many of us stress or panic when a job is labelled as ‘urgent’ by a client or team member. But urgent does not always mean it should become YOUR highest priority. It is all about balance.

It is of course important to deliver high-quality customer service and work well in a team, but sometimes dropping something important you need to work on is not productive for the company.

5. The word ‘No’ should be a staple in your vocabulary.

‘No’ is a difficult word for many people to spit out, but using it when necessary can be the difference between you being productive and not.

Often startup owners are pulled in many different directions, and their time is being demanded by too many people all at once. In these situations, the word ‘no’ is necessary so you can stay focused on your goals and what will truly make a difference toward your business’ success.

6. Schedule time for emails and messages.

As you are scheduling projects and tasks in your calendar, also schedule daily time slots for you to check and respond to emails, social media messages, or other platforms that may be important for your business.

We suggest scheduling 3 short time slots daily, approximately 10-20 minutes each, keeping strict to your time slot as it is easy to get sucked in by emails. Proper email management is something that can be a game-changer for your productivity.

7. Being detail-oriented can be a major con.

Being described as a detail-oriented person is commonly viewed as being a positive quality, and it certainly can be. But being extremely detailed can also lead to productivity issues.

When you begin tackling a task or project, consider how important it is to your overall business goals. This will guide you on how much time you should spend on it. Remember, it is ok for things to not be perfect, especially the more minor things.

8. Taking care of your mental health always benefits your business.

Simply put, if your mental health begins to suffer, so will your business. Maintaining good mental health is so important as an entrepreneur. Make sure you take time for yourself, exercise, and eat well, all of which contribute to your overall mental well-being.

Contrary to what some people may think, working longer hours does not actually make you more productive – but having a good work-life balance will. When you prioritize time for family, hobbies, and self-care, it actually will make you happier and more focused. This leads to a higher quality of work and allows you to come back to work with fresh ideas and new perspectives.

Lastly, getting at least 7-8 hours of sleep per day is a game-changer not only for productivity but for your physical and mental health. You may think working until 2 am is getting a lot accomplished, but if you need to be up by 6:00 am for your busy day ahead, your late night is not doing you any favours.

Embracing these productivity hacks will not only make your life easier, but it will set you up to grow your startup business more efficiently and quickly!

Recruitment

2022.06.16

Best Recruitment Process for Startups: 7 Dos and Don’ts to Hire a Strong Team

In the beginning stages of launching and operating a startup business, commonly startup founder(s) are doing it all; product development, attracting investors, sales, marketing, bookkeeping, and everything in between. However, when your startup reaches a certain level of success, hiring is essential to continue your growth as it will become impossible to do everything on your own. We have compiled the top dos and don’ts to follow that create the best recruitment process for startups.

What are the challenges of the recruitment process for startups?

Hiring as a startup comes with its own unique set of challenges such as budget limitations and difficulties attracting the right people. When your desirable candidates are considering all of their job options, they will weigh the differences between working for a startup and working for a more established business.

A few notable differences could be:

Modest Compensation vs. Competitive Compensation
Continual Change vs. Steady Routine
Unpredictable Projects vs. Structured Job Responsibilities
Feeling Worried About Job Security vs. Comfortable
Unorthodox Working Hours vs. Standard Working Hours

What is the best hiring process for a startup?

If you have prior experience working for a large company, your idea of how the hiring process works most likely begins with a standard online job posting, an advertised list of sought-after skills and qualifications, followed by a traditional interview process that is primarily facilitated by an HR department.

Due to the differences between startups and larger businesses, you must approach the hiring process more creatively and from a different angle.

7 Dos and Don’ts When Hiring as a Startup Business

To ensure you attract people that are a good fit for your business and will be instrumental in helping you achieve growth and success, there are some dos (and supporting don’ts) when preparing for and carrying out your recruitment process.

1. Build an attractive company.

Did you know that 56% of employees want to contribute more to society? Carefully craft your mission, vision, and values to reflect what your company stands for.

Don’t: Speed through this process. Establishing your ‘Brand DNA’ is at the foundation of everything you do, and job seekers are looking to work for a company that has a clearly defined purpose.

2. Create a standout online presence.

Think outside-the-box on how you can set your company apart. When you come across as truly innovative, you will appeal to people who are seeking to work in that type of environment. As a startup, there are low-cost marketing strategies you can follow that will give you the online presence you are aiming for.

Don’t: Underestimate the power of authenticity. There are many flashy websites and social media profiles out there, but do they accurately and genuinely represent the brand? Make sure your online presence is an extension of your startup.

3. Consider alternative platforms.

Research what platforms other startups in your region are using to build their teams. Often startups find talent in places other than popular job boards.

Don’t: Follow a generic job posting format. There will be nothing that sets your startup apart.

4. Highlight what your business can offer that others can’t.

One of the beautiful advantages of a startup is it can offer a unique work experience and benefits. Think deeply about what you can offer and what sets you apart from an employee’s perspective.

Don’t: Lead with compensation. There is no denying that it is very important, but chances are the compensation you can offer will not outdo larger businesses. Lead with the other benefits you can offer.

5. Approach Hiring as a Mutual Partnership

Many job seekers feel it is taking a large risk to work for a startup business. For this reason, you should approach the hiring process as a mutual partnership. What they offer you needs to equally match what you can offer them. Be open to collaboration and negotiation with interested parties to ensure both of you are equally happy and excited to work with one another.

Don’t: Focus all messaging on what you are looking for in a candidate. Focus equally on how your startup can help achieve their goals.

6. Let candidates’ skills and experience help craft new opportunities.

You may not have originally considered including a certain project or skill in your new position, but if the right candidate comes along with valuable ideas and suggestions, staying open can lead to amazing opportunities.

Don’t: Base hiring decisions solely on years of experience or academic qualifications. This is not to say these details can’t factor into your hiring process, but isn’t it true that some of the best entrepreneurial minds have taken the road less travelled? Non-traditional candidates can often end up being an asset to your team.

7. Attitude and outlook count for a lot.

You can teach an employee new skills, you can’t teach them personality or characteristics. Keep an eye out for people who are positive, driven, determined, self-reliant, and love learning new things.

Don’t: Form opinions of people off a formal interaction. Traditional first interviews can be stiff and not bring out an interviewee’s true colours. Because you are a startup, you will be working closely together. Try meeting for coffee for an informal discussion to get to know the person. This can set a more relaxed and natural environment.

Beginning preparations and planning to hire a new team member is often a brand new process for new startup business owners. It may seem overwhelming and you want to make sure you are doing things correctly.

Joining a startup incubator is a fantastic way to receive support, knowledge, and guidance through the hiring process along with countless other elements that you will need to learn as a startup business owner.

Health for entrepreneurs

2022.06.10

How do you manage work-life balance as a startup?

We have all heard the term ‘work-life balance’ – the goal of maintaining equal harmony between our professional and personal lives. However, when you first launch and grow a startup business, there is often lots to accomplish. In fact, you could easily fill up 24 hours a day with work. So how do you find that sweet spot where neither your business nor personal life suffers? This blog provides tips on how to manage work-life balance as a startup and why it is so important.

What is work-life balance and why is it so important?

As self-explanatory as ‘work-life balance’ may seem, it is hard for many entrepreneurs to achieve in reality. In the simplest of terms, having a good work-life balance is when a person equally prioritizes their career and personal/family life, with neither one consistently being put on the backburner.

Being a driven startup business owner can lead to fantastic things, but focusing too heavily on work can cause some negative effects such as:

Feeling burnt out and stressed.

Maintaining good mental health for entrepreneurs is so important, and often it is not prioritized.

Creating tension at home.

If you live with a partner or spouse, or have children, devoting minimal time to being at home and spending time together can lead to problems.

Dropping hobbies or interests.

When you are working hard to ensure your startup succeeds, things like hobbies or interests tend to easily fall to the wayside.

Having hobbies actually makes you more productive and energized for when you are focused on work, and keeping them in your life is just as important as working on the next partnership or product launch.

Distancing yourself from friends

Having a support system around you is really important, but if you stop putting effort into relationships, that support system you once had may begin to dwindle.

3 Tips on How to Improve Work-life Balance

Set strict work hours

As an entrepreneur, it is easy to go down a work rabbit hole. One more hour turns into four more hours, and before you know it it’s 1:00 a.m. Setting strict working hours will lead to many benefits, including making you happier and more creative.

Remember that those emails will always be there when you come back. Often taking a much-needed 5, 10, or 30-minute break will lead to a better response.

Setting strict working hours also means learning how to implement better time management skills, so the hours you do work are meaningful and productive.

Schedule time for loved ones

Balancing work life and home life is important. Making sure you schedule time with family and friends will allow you to not only maintain healthy relationships, but it will naturally make you feel a higher sense of work-life balance.

Remember to use this time to have FUN! When we take life too seriously, we forget to enjoy ourselves and our loved ones. By sharing time purposefully with others we reinvigorate our confidence and can feel recharged to work hard on that pending project.

Practice self-care

Every person finds relaxation in different ways. Common activities include exercising, reading, meditation, gardening, a hobby, or simply having quiet time alone. Prioritizing time for yourself may seem irrelevant when you have a million items on your to-do list, but in the end having time for yourself will prove to be beneficial at work and for your overall well-being.

Working more hours does not lead to greater success

Putting in long hours may seem like the logical thing to do when you are really busy, but this extra time and energy is not putting you any further ahead.

Stanford University economics professor, John Pencavel, conducted a study that found that productivity per hour heavily declines after a person works 50 hours a week. In fact, he found that those who work up to 70 hours are equally productive as those who work 55 hours.

How do you start implementing a work-life balance?

Overall, our message is simple: Do your best. We know juggling being an entrepreneur and perhaps also being a spouse or a parent can be very challenging, but making an effort to balance all areas of your life will not only make you a better entrepreneur, but it will make you happier.

It is always about progress rather than perfection. Don’t expect to find this balance right away if this is your first time trying to implement these tips. It is about consistency and exploring what works for you, what feels GOOD. Enjoy the journey of finding your balance. You will not regret it!

Joining a startup incubator is an effective way to see progress and organize your workload. Startup incubators mentor and guide you on how to best operate your business, prioritize goals, and manage the challenges that are unique to entrepreneurship.

For more information and tips on how to achieve a work-life balance, visit the Canadian Mental Health Association.

Money

2022.06.02

6 Tips For Startup Business Taxes in Canada

Millions of Canadians work as employees at organizations and are used to filing standard annual income taxes —a fairly straightforward process for most people. As a new startup business owner, there are now new things to consider, know, and keep track of.

We have provided 6 tips for startup business taxes to make this easy to navigate.

1. Know what expenses you can claim

When you are first getting your business off the ground, there are startup expenses you incur that are necessary for your business to operate. Many reasonable and legitimate expenses can be claimed as business startup tax deductions. Some of these items may include:

Equipment and Technology
Supplies
Business fees and licenses
Vehicle expenses
Legal and accounting fees
Insurance

2. Stay organized and TRACK EVERYTHING

One of the biggest tax tips we can provide to entrepreneurs is to always be organized. From every business expense to income earned, keep receipts and detailed records. The importance of keeping good records cannot be overstated enough for a few reasons:

It is required by law to keep all records. Be aware of your responsibilities and how long you must keep records for, which is generally for a period of six years from the end of the last tax year they relate to.
It will make your life a lot easier and less stressful when it comes time to file your taxes.
In the event you are audited by the Canada Revenue Agency, having clear and organized records will make this process much easier than if you cannot account for your business activities.

3. Be informed of all available tax credits

As a small business startup, tax credits can go a long way. Become familiar with all tax credits you are eligible for which may include:

Canada Caregiver Credit
Health Spending Account (HSA)
Disability Tax Credit
Canada Child Benefit

4. Balance your Dividend/Salary Mix

As a startup business, you can withdraw money from your company either as a dividend or salary. Paying yourself a healthy salary provides an opportunity to maximize your RRSP, but you may also want to take out part of your pay as a dividend to take advantage of a lower tax rate. Knowing how to balance the two can maximize your earnings, but you must be aware that every startup business owner’s circumstances are different. What may be a great decision for one person may not be as smart for another.

5. Consider Income Splitting

Many startup business owners choose to pay family members a salary, as any salary paid out will count as a business deduction. However, the salary must be reasonable in relation to the position your family holds at your company. For example, a typical entry-level position should not be earning a salary that is well over the average in your region.

6. Determine what is best for your budget

In the past you may have been an employee and taxes were deducted from every pay. This hopefully resulted in no large sum of taxes due at the end of the year. Now as a startup business owner, this does not happen. It is your job to determine what fits best within your startup budget. You may want to consider paying income taxes every month to avoid one large payment. This can be set up with the CRA and can be easier to manage throughout the year.

Where do you find help with startup business taxes?

From year to year, there can be changes to tax law and tax credits available to startups. To keep up-to-date, we recommend choosing a CPA firm that understands startups and can advise you on what is best for your business.

In addition to acquiring the services of a tax professional, having a startup mentor is a great way to learn from someone who has been where you are in your journey, or has expertise to advise you to make smart choices. A startup incubator has experienced mentors, fantastic programs, knowledge, and opportunities to help you plan for startup taxes and aid in your company’s overall growth and success.

Growth

2022.05.27

How to grow your startup business

Entrepreneurship is becoming more attractive and popular. In fact, two million Canadians launched startup businesses during the Covid-19 pandemic. But not all one-of-a-kind ideas turn into successful companies; they need to grow to stay alive, remain healthy, and meet customer needs. Determining how to grow your startup business can be a challenge, especially when a one-size-fits-all strategy does not exist.

Although every business’ journey is different, we have chosen our top 6 pieces of advice for startup entrepreneurs that should be taken into consideration when trying to grow a business.

6 Tips to Grow Your Startup Business

1. Identify a real market need

New inventions and technologies are fantastic, but even the most innovative idea or product will not succeed if there is no demand from consumers. Discovering what consumer needs are not being met, and then offering a solution to their problem, will put you on track to quickly grow sales.

2. Be the tortoise, not the hare

We have all seen headlines about startups that found overnight success. This is not your typical success story. Almost always, slow and steady wins the race. Some startups want to sprint right from the start and begin allocating funds across a variety of channels in hopes of landing big customer acquisitions. However, spreading your resources too thin will not attract quality leads. Slow down and begin strategically focusing on smaller, qualified audience segments by applying low-cost marketing strategies.

3. Quality before quantity

Startups need to make money quickly, but the quality of your product or service should not take a hit in order to do so. If you cut corners to save on costs, your customers will notice and your brand will lose credibility. In the beginning stages of your company, the quality of your product is what will attract customers to buy, become repeat customers, and recommend your product to others.

4. Remember your purpose

It is normal in the beginning to develop tunnel vision when you are focused on achieving growth. However, creating a successful business involves connecting all decisions you make back to the reason or purpose for launching your startup. Strong brands are able to connect with customers because they have never lost sight of who they are, their mission, or their reason for existing.

5. Set your priorities (and follow them)

Let’s face it, as a startup business owner you always have a lot you want to accomplish. This is why defining a clear priority list will keep you on track with what matters most. After launching your business, your top priority is to drive growth and you do not want to get distracted by projects that will not directly aid in this goal. Creating a priority list also prevents you from getting overwhelmed so you can maintain good mental health while being a busy entrepreneur.

6. Build a team that supports your culture

One of the most effective ways to achieve growth is for every member of your team to be an ambassador of your brand and someone who enhances your business culture. Customer perception accounts for a whole lot, and they can easily detect when a brand is not authentic. If your messaging is happy-go-lucky but your company culture is not, this will seep through to consumers.

Startup incubators help grow your startup business

One of the most effective ways to grow your business is to join a startup incubator that offers support, knowledge, business expertise, skills training, workshops, networking opportunities, and mentorship. When you are unsure of what steps to take next, startup incubators provide guidance to help you make decisions that will be best for your business.

Innovation Cluster Peterborough and the Kawarthas have helped hundreds of startups launch, grow, and scale their businesses successfully. Learn more about its programs and apply at innovationcluster.ca.

Health for entrepreneurs

2022.05.19

Why is good mental health for entrepreneurs so important?

Being an entrepreneur has many advantages. It allows you to follow your passion, set your own schedule, and be your own boss. But any experienced entrepreneur will tell you that the road to success does not go without challenges or obstacles. Working through problems is a priority as a startup business owner, but mental health for entrepreneurs needs to be given the same level of importance.

Why is mental health important for entrepreneurs?

From a mental health survey of more than 300 entrepreneurs, 63% reported dealing with burnout and 59% dealing with anxiety – a far cry from the glamourized entrepreneurial lifestyle that populates our Instagram feeds.

Although being an entrepreneur can be an amazing lifestyle, in reality, it is common for individuals to have stressors over finances, the day-to-day, or keeping a work-life balance. To ensure these natural thoughts do not escalate into larger problems, knowing how to properly identify signs of poor mental health and its effects needs to be more openly discussed.

Common symptoms of poor mental health amongst entrepreneurs

Inability to focus

When you feel overwhelmed by the laundry list of projects you need to complete, it can be extremely difficult to focus on any of them. This can lead to feeling more stressed or overwhelmed because it is taking much longer to scratch tasks off your list.

Exhaustion

Regardless of how much sleep you are getting, chronically feeling mentally and physically exhausted is a sign you are headed for burnout. When you no longer have the energy to do the work you once loved, this is something to take note of.

Decreased performance

Due to exhaustion and an inability to focus, you begin to notice a decrease in the quality of your work. Creativity and innovation are best fueled by a clear mind, but when you have a lot on your mind and you are not well-rested, this can hinder bringing forth your best self.

Anxiety

Feeling anxious all the time is a sign that something needs to change. Experiencing a small dose of anxiety over an upcoming investor pitch or sales meeting is quite common, but this anxiety should not be a daily occurrence.

Lack of patience

If you tend to be a fairly patient person but find yourself becoming short with team members or others around you, this can begin to negatively affect relationships which can impact your business.

How can entrepreneurs manage their mental health?

Practice self-care

Rest, sleep, exercise, eat healthily, meditate, and disconnect.

Don’t keep emotions bottled

Chances are if you do, it will build to become worse. Talk to other entrepreneurs or trusted people to who you can vent and go for advice.

Slow down your pace

Entrepreneurs often have many jobs on the go. Sometimes the best way to lower stress and have better mental health is to take a breath and slow down.

Take up a hobby

When you are already super busy, adding another element to your life can seem impossible. However, taking time to focus on a passion unrelated to your business can bring more joy and balance to your life.

Set clear boundaries

We know that at times you would be able to fill 24 hours of your day with work. This is why it is healthy to set clear boundaries such as firm working hours, device-free time, and when you have set aside time for yourself or your family.

Join a startup incubator

Startup incubators help entrepreneurs work through all the steps to launch and grow a successful business. Having mentors to keep you focused and stay on the right track can alleviate a lot of stress and overall, improve your mental health.

Visit Innovation Cluster Peterborough and the Kawarthas to discover how they help entrepreneurs launch, grow, and scale their businesses in a welcoming, inclusive, and stress-free environment.

Startup Incubator

2022.05.12

Everything you need to know about having a startup mentor

When launching a startup, acquiring a lot of knowledge and skills is an ongoing process. Thanks to our technology-driven world, there are unlimited resources available at our fingertips. But as convenient and accessible as these online materials may be, they do not understand your business, are not able to give tailored advice, and the information may not always be accurate or trustworthy. Learning from a startup mentor – their lived experiences, industry expertise, and path to success – is arguably one of the most valuable ingredients that will set your business up for success.

What is a startup mentor?

A startup mentor is someone who provides guidance and advice as you navigate launching, operating, and growing your startup business. Commonly they are a seasoned and successful entrepreneur, have had years of relevant experience within your industry, or are an expert in a field crucial to your startup’s success.

Startup businesses can either form a relationship with one sole mentor, or due to the various types of mentors that exist they may acquire many with each serving a different purpose.

Types of Startup Mentors

Successful Entrepreneurs

Company founders who are mentored by successful entrepreneurs are more than 3x more likely to become top performers. Simply put, business mentors for startups who are successful entrepreneurs have been in your shoes in one way or another and have the first-hand experience to guide you through the different stages of your company’s growth.

Every successful entrepreneur has had some major wins along their journey, but it is often their failures where you will learn the biggest lessons. Their years of experience can provide you with insider tips, teach you critical skills, secure strategic partnerships, and provide networking opportunities that can lead to introductions with investors or key suppliers.

Industry Expert

Industry experts who become startup mentors have the ability to teach entrepreneurs crucial knowledge, existing regulations, the industry’s competitive landscape, and popular trends and preferences among customers.

Due to their years of experience and expertise, they have formed deep connections with important players that can lead to promising introductions, and they have an ability to sense where the industry is headed.

Field Expert

Field experts may or may not work within your startup’s given industry, but they have deep experience, knowledge, and skillsets in a particular area that is of great value to your business. Examples of this may be a sales executive, seasoned marketing professional, engineer, software developer, or technical expert to name a few.

Receiving mentorship from a professional in an area that is critical to your company’s success such as startup marketing is a huge benefit and can avoid having to navigate these areas on your own.

Roles of Startup Mentors

No matter what type of mentor you choose, there are various roles they can play in helping to launch, grow, and scale your business.

5 Major Roles of a Mentor in a Startup

Guide – Navigated by their experience, they ensure startups are headed in the right direction.
Brings Customer Perspective – Has knowledge of the current customer profile through research or expertise.
Investor Relations – Helps gain access to startup investors, secure funds, and can help as a liaison once they have come onboard.
Teacher – Business mentors for startups often have skills that require training to learn. Examples could be training on a particular software or technology or it could be communication skills that will help with things like networking, public speaking, or communicating effectively with your team.
Sounding Board – Innovative ideas are what have made some of the best companies successful, but not all ideas will be successful on the market. It is a huge benefit to have a mentor act as a sounding board to listen to all of your ideas and provide constructive feedback.

How do mentors help startups?

Approximately 70% of mentored businesses survive five years which is more than double the rate of non-mentored companies. The reason for this is simple: startup mentors provide many benefits that prepare them to succeed in today’s market but also protect them from making big mistakes that could significantly hinder their company’s growth.

5 Benefits of Startup Mentors

Develop new skills and training

When you are first starting your business, you most likely do not have a large amount of cash available in your startup budget to spend on training workshops and seminars. Mentors possess a wide range of skills that you can learn from.

You don’t face challenges alone

Every startup no matter how brilliant or funded is at some point going to face challenges. Quite often as a new business owner, you will come across issues you have never dealt with before.

Startup mentors have been where you are and have been up against a lot of adversity. They can provide invaluable advice and tips on how to navigate problems, and are there for support as you make your way through them.

Greater opportunities for growth

Learning from startup mentors provides you the opportunity to learn from the areas in which they have succeeded, and have had losses, and to learn how to make educated business decisions based on these experiences. In addition, mentors have the knowledge, skills, and connections to aid in your business’ overall growth.

Connections

Over many years as an entrepreneur, working in their industry, or refining their skill set, all startup mentors have formed connections with other professionals, investors, suppliers, and contractors and their introduction to these individuals can give you a foot in the door that you need.

Build Confidence

Launching and operating a startup business can be overwhelming and at times, nerve-racking. Having the guidance and support of an experienced mentor can boost your confidence as a business owner and provide reassurance that you are on the right path.

How to choose the right startup mentor for your business

Thus far we have outlined the types of mentors, the roles they play, and their benefits, but how to choose the right mentor for your business is equally important. Aside from the obvious factors including their business experience, industry knowledge, and skillset, often these “on paper” qualifications are not enough. Just like not every qualified candidate for a job position is going to be a good fit, neither are mentors.

It all comes down to characteristics.

Characteristics of a strong mentor

Has good chemistry with you

Sometimes how or if you bond with a person is the deciding factor. If your relationship seems forced, you will not feel comfortable approaching them regularly with concerns.

Makes themselves available

A good startup mentor should not be difficult to connect with. Depending on the needs of your business and what stage you are in, scheduling regular meetings or phone calls would be the best scenario. This way, you can bring any items you want to discuss with your mentor to your regularly scheduled meetings rather than emailing or calling every time you need their advice or input.

A good listener

Receiving advice, being told stories, and learning new skills is fantastic, but sometimes you need someone who will actively listen to you and provide their thoughts.

Positive attitude

Encouragement and keeping a positive attitude go a long way. As experienced and knowledgeable as a mentor may be, if they are always negative and shutting down your ideas this will not benefit you or your startup.

Honesty

Being “too nice” also exists, and this is not good either. There is a tactful way mentors can tell you your idea is not strong or there are issues with your business plan. If you are about to make a poor decision or your idea poses some serious red flags, you want a mentor who is not afraid to constructively point out problems.

How to find a startup mentor for your business

Networking events

Attending local events, tradeshows, conferences, and workshops geared toward the business community or your specific industry is a fantastic way to find mentors for startups. Have a casual yet polished business pitch ready so you can convey the essence of your business clearly to many people.

Online business platforms

There are great digital platforms that present opportunities to not only connect with mentors in your local region but across the world. Platforms like LinkedIn and Twitter are used heavily by business professionals and are great places to begin building connections.

Startup Incubators

Startup incubators offer mentorship, programming, workshops, and networking opportunities that heavily increase the success rate of their clients. In fact, using a startup incubator increases a company’s survival rate to 87%.

Innovation Cluster Peterborough and the Kawarthas, a startup incubator that supports technology and innovation-driven companies, is located between Toronto and Ottawa and is led by Innovation Specialists who are seasoned entrepreneurs that are passionate about being a tech startup mentor. To learn more and apply, visit www.innovationcluster.ca.

Money

2022.05.05

How to find investors for your startup business

Launching a startup business is a significant accomplishment. It takes lots of drive, commitment, and courage to transition your innovative idea into a legitimate business. But it is no secret that even the most passionate and brilliant entrepreneurs will face greater challenges if their businesses do not have proper financial support. Exploring how to find investors for your startup business, and more precisely, attracting ones that will have the expertise to take your company to the next level, is critical in your startup’s early stages to set yourself up for long-term success.

Where to find investors for your startup business

There are different types of investors for startups, each with its own set of perks. It is important when looking for investors for your startup business to recognize what stage your startup is currently in, how much funding you require, and if your company is what a particular investor will be looking to invest in.

Here we will look at three types of equity financing — receiving funding in exchange for a share of your company.

Family and Friends

This avenue can be really attractive as the conditions of investment are typically more lenient and advantageous. There are many things to consider when approaching family and friends, but two of the most important are deciding whether your agreement will be a loan or an investment, and ensuring the terms of your agreement are clear.

For example, will they expect interest paid on the loan? If it is an investment, what percentage of future profits will they receive? Your terms must be clear and in writing so there is no confusion or problems down the road.

Angel Investors

Angel investors are people with significant disposable funds who seek promising investment opportunities. Typically, investment in your startup is exchanged for equity in your business. The difference between angel investors for startups and venture capitalists is they usually are not only interested in generating a return on their investment but are also invested in your company’s long-term future.

Angel investors not only can provide funding, but offer years of industry expertise that can be of equal value when working to grow and scale your business. Well-established angel networks like the Peterborough Region Angel Network located in Peterborough, Ontario, invest in promising startup businesses and care about helping companies achieve success.

Venture Capitalists

Venture capitalists are investors who provide businesses capital in exchange for benefits such as company equity, a seat on your board of directors, or a percentage of future profits. Venture capitalists can either be individuals or large firms and they gravitate toward startups with above-average growth potential.

How to get investors for your startup

With an overview of where to begin looking for investment opportunities, you may be wondering how to attract investors for startups and get them to invest.

The answer is networking.

Networking helps your startup business grow, and by attending industry events and forming connections you will gain knowledge about the best investment opportunities. Even if you do not network directly with investors, meeting other business owners and leaders opens up doors to get an introduction with an investor they may have in their network.

An effective way to increase your networking and connect with investors is through a startup incubator. Startup incubators host events and workshops, are closely connected with angel networks and offer knowledge and tips on how to successfully give a business pitch and secure investor funding.

Innovation Cluster Peterborough and the Kawarthas offers year-round networking and mentorship that helps startups find and attract investors.

To learn more, visit https://www.innovationcluster.ca/.