7Feb
The Case for Inclusion: How Hiring People with Disabilities Benefits Your Business

As we celebrate Jewish Disability Awareness, Acceptance, and Inclusion Month (JDAIM) in February, we can reflect on how our community can grow stronger by embracing inclusion in all aspects of life, particularly the workplace. ProMontreal Entrepreneurs works with businesses and startups that want to create innovation and impact. One of the most important decisions a business leader can make is to create a workplace that welcomes people with disabilities.

Employing people with disabilities is more than just a moral imperative; it’s also a sound business strategy. Here’s why.

1. Access Untapped Talent
People with disabilities are frequently overlooked during the hiring process, despite bringing unique skills, perspectives, and determination to the workplace. Many have developed exceptional problem-solving skills, resilience, and creativity while navigating environments that were not always designed with them in mind. These characteristics can translate into new ideas and innovative approaches that will help your business thrive.

2. Promote Innovation through Diversity
Diversity is a proven driver of innovation, and people with disabilities bring unique perspectives that can help your company reach a larger customer base. According to an Accenture study, companies that embrace disability inclusion generate 28% more revenue, 30% more profit margins, and double the net income of their peers. By cultivating a diverse workforce, your company can better meet the needs of a diverse market.

3. Improve team culture
Hiring individuals with disabilities can have a significant positive impact on workplace culture. It fosters an environment that values empathy, inclusivity, and mutual respect—characteristics that encourage greater collaboration and loyalty among all employees. When your team sees that you value inclusion, it boosts their confidence in the organization and inspires them to give their all.

4. Strengthen Customer Loyalty
Consumers are increasingly drawn to businesses that stand for something more than profit. Committing to inclusion demonstrates your values to customers, clients, and partners. It’s more than just good PR; it fosters trust and loyalty among a growing demographic eager to see businesses do good in the world.

5. Tap into Available Resources
Hiring people with disabilities does not have to be difficult. There are many resources, grants, and training programs available to help businesses create accessible workplaces. Ometz for example, and other community partners can assist you in connecting with qualified candidates, providing workplace accommodation support, and ensuring your company thrives as an inclusive employer.

Take Action During JDAIM.
As business owners, we can influence the future of our community. This Jewish Disability Awareness, Acceptance, and Inclusion Month, let us pledge to break down barriers and ensure that everyone has a seat at the table.

Let’s make inclusion our business.

Are you prepared to take the next step? Contact ProMontreal Entrepreneurs to find out how we can help you connect with organization such as Ometz that can help create a more inclusive workplace.

19Aug
Founder of Naked and Famous Denim: Brandon Svarc

Brandon Svarc; is a founder who decided to do the exact opposite of what his competitors were offering in order to succeed. Naked and Famous Denim is a high-quality denim brand that is not like any other pair of jeans out there. Made out of only the best fabrics and priced at a point where you get your money’s worth. Today’s fashion industry is focused on glamour and celebrities rather than quality. Naked and Famous Denim’s primary focus is quality.

We are proud to have funded this business and once it became successful, founder Brandon Svarc joined the PME committee in order to help other entrepreneurs like himself. We had a chance to speak with Brandon and he shared with us his success story but also gives us insight into what he has noticed while being part of the PME committee. He shares with us some tips and advice he has learned along the way.

What made you start naked and famous denim?

I started Naked and Famous Denim because I wanted to start a brand that was the opposite of all the other denim brands on the market. I realized all high-end denim was based on corrupted values and was highly overpriced for the quality of them. My main motivation was to create the best possible jeans on the market.

How does your denim brand differentiate from other brands?

Our denim differentiates from other brands through our product values. When I started this business in 2008, my competitors were all Hollywood or celebrity-endorsed brands. What they sell are glamour and million-dollar ads, what I sell is quality. It is simple: no ads, no stresses/rips, no product giveaways, and no celebrity endorsement. We are focused very much on the product and quality, that’s it. We stick to a concept my grandfather taught me, making better quality products than your competitors for a better price.

How did you come up with this idea? Why Japan?

My family has been in this industry for 70 years. So, this has always been a part of me. When I was born, my father even made a line of jeans in my name. However, I was still tackling something I didn’t have much experience in. My concept was simple, to make the best product I can sell at the most expensive stores but sell them at the opening price points of those stores. I set a goal and went from there. The first goal I set was to sell at Barneys and we accomplished that in our first season of selling. After that, we continued selling there for 16 more seasons in a row.

In order to make the best possible product on the market I did a lot of research. I knew I wanted to make them locally in Canada because I wanted to support the local market. Next, I needed to find where the best denim fabric is. After countless research, I found it in Japan. When I found the Japanese denim and saw how much they obsess over it I knew this is what I needed. With the amount of detail and innovation that went into the material, stitching, and washing, I knew this was it. My goal was to find the best fabric, and make it in Canada, for the lowest price, with no ads, no celebrities just keep it simple.

What were some of the most challenging obstacles that you had when building your business and how did you overcome them?

Sales were one of the biggest challenges I had when I started out. I had no sales experience. Even though my family was in the clothing industry they still never really targeted what I was going for. This was a big challenge when I wanted to sell in every high-end store with no experience or pre-existing contacts. However, this didn’t stop me from going door to door to every store asking them to sell my brand. By going door to door to different stores, this helped me learn and practice and eventually I became really good at it. I had a lot of people turn me down and even throw me out of their stores but I didn’t give up. Eventually, I had those same people who kicked me out of their stores call me back to ask to sell my brand.

What kind of risks did you need to take as a founder in order to be where you are today?

There are a lot of different risks that every entrepreneur needs to take in order to be successful. Not using ads or following the conventional path that most people in the fashion industry take was a risk but I wasn’t too worried. There are a lot of competitors on the market I was going after, however, I knew if I made the best quality product then the rest would follow.

Most people who work with corporations don’t have the constant anxiety of will my company go out of business. Usually, there is a level of security in those employed positions. As a founder, you don’t have this sort of safety net that is offered when you work for a company. That’s a risk you need to be willing to take. I constantly had this anxiety about if my business will actually make it and if people will buy my product or if this was all for nothing. That’s a risk I was willing to take because I believed in my product and was passionate about what I was selling.

6. If you can give one piece of advice or a golden rule for an entrepreneur starting out what would it be?

One piece of advice I like to share with young founders is something that was told to me. When the time came to sell to high-end stores in Ontario, I set out to find someone with pre-existing knowledge and contacts about the Ontario market. I did not have much experience and I knew I needed to find someone to sell my denim for me. I finally found the perfect person, whom I contacted and arranged a meeting with. After pitching my denim brand to him, he was amazed by my product. However, he declined to sell my denim for me. He declined because he said the best person who can sell my product was me.

No one else has the passion and product knowledge for your own product other than you. You need to sell your product yourself. That’s what I like to tell young entrepreneurs. Even if you have no sales experience or contacts you need to take a chance on yourself because nobody knows the product better than you.

As a board member, you’ve seen many entrepreneurs pitch their ideas. What are some of the biggest mistakes people make when pitching?

The biggest mistake I’ve seen founders make when pitching is over-selling it. Some overestimate their financials and that doesn’t go well with the board. Obviously, these numbers are based on assumption and it’s good to dream big. However, if you’re going to over-exaggerate your numbers you need to be ready to defend those numbers with facts. Be realistic.

Naked and Famous denim is a PME-funded business and you are a board member, what kind of advantages has PME provided to your company along with others you see come in?

Of course, the loan itself can help with the pre-seed funding to get things running. By being a board member, I’ve seen how willing everyone is to make connections for the founder. Even if they don’t get the funding, we will still try to help them in every way possible by connecting them with the right people. Everyone will look through their network in the Jewish community and put them together. We really want everyone to succeed and it’s not just about giving them the money to help them to do that.

Every founder should take note of the passion and dedication that Brandon Svarc exemplifies. He believed in what he was selling and had faith in his product. He had a straightforward, simple concept and executed that successfully. Passion is key when you’re a founder because if you really believe in what you’re doing then everything else will come. His jeans are now sold across numerous stores across the globe.

PME’s goal is to help every entrepreneur that comes in to succeed. It’s not just about giving them the financial tools but also mentoring them and putting them on the right path to succeed.

16Jul
Should You Take Out That Loan or Not?

Should you take out that loan or not?

There are numerous factors you must consider while expanding a startup. How you plan to finance your business is one of the most crucial factors. Small business loans are frequently used by startups to fund operations, but without sound financial management, taking on more debt could be harmful to the company.

How can you tell if taking on more debt is necessary to run your startup? What inquiries must you make of yourself before submitting a loan application?

5 inquiries to make before incurring debt

Your business may be able to get the funding it needs through a loan in order to expand and grow. You can use it to manage your cash flow and get out of difficult financial situations. However, borrowing money is a big decision that shouldn’t be made hastily. Before taking out a loan, you should ask yourself the following questions:

1. How will I use the funds?

The first thing to think about is what you will need the money for. Small businesses borrow money for many different reasons. Maybe you need to raise money for a renovation or new equipment or perhaps you need to cover unforeseen expenses or changes in your cash flow due to the seasons. Whatever the reason, it is important to understand the rationale behind your loan decisions and how it will help your company.

2. What amount do I need?

After knowing why you need to raise more money, you need to make an educated guess as to how much you’ll need.

The following information will help you decide how much money to borrow from lenders.

You must first estimate how much money you will need based on the anticipated revenue and operating expenses for your business. The loan’s interest rate is the next thing you should think about. As the interest rate rises, so does the cost of the loan. You should also consider your ability to make the loan’s monthly payments. A loan’s associated costs must also be considered. These fees can add up quickly, so you must be careful to include them in your overall borrowing costs.

3. Do I make enough money to take on extra debt?

One of the most important things to think about is whether you will be able to repay the loan you are taking out. If you are unable to pay the loan installments out of your revenue, your business can suffer. You run the risk of losing investors for your startup. Your personal and corporate credit profiles can both suffer as a result.

4. Which finance option will best meet my needs?

It might be difficult to choose the loan type that is best for your business when there are so many different types of loans available. It all comes down to knowing the loan’s purpose. By knowing what you’ll do with the money, you’ll be able to choose the type of loan that best suits your requirements.

You can give us a call if you’re unsure of the kind of loan that would be best for your small business. The PME fund is one option for some to consider.

5. What does my credit profile look like?

A summary of your credit history is included in your credit profile. It contains details about your credit accounts, including loans, credit cards, and mortgages. It also contains details about your credit usage and payment history.

Your company credit score, which ranges from 0 to 100, serves as a representation of your credit profile. Borrowers with a business credit score of at least 75 are frequently approved for loans. If your score is lower than that, you may want to raise it before applying for credit. As a result, your chances of obtaining financing will increase.

It is essential for startups to think carefully about whether taking on debt is the best course of action for their company. In some circumstances, slower growth without borrowing money could be preferable. In other situations, borrowing money could be necessary to achieve the level of growth that the startup needs to be successful.

3May
Tips and Tools for Social Media

Tips and tools for social media. While building up your content will require time and money, you can produce high-quality material with a smartphone and a few simple tools and tips. The main advantage of using social media is that it’s an inexpensive method of raising brand exposure.

Additionally, you might be able to reach your target audience on social media for a lot less money than you would with targeted advertisements.

Social media can be used to achieve a variety of goals, including brand development, credibility building, word-of-mouth marketing, and tightening ties with current clients. Alternatively, you may merely want to use social media to direct visitors to your website, where they may end up becoming paying clients. Remember to communicate with your followers on social media in addition to posting. If someone shows interest in your brand, be there, engage, and interact. Below are some tips and tools for social media success.

Be consistent.

Being consistent is the best thing you can do as a small business when you first start using social media. Too frequently, brands lose faith if they don’t start seeing results right away. Social media growth might be gradual, but like with other things, if you are persistent, you will see benefits. This entails regularly publishing content of a high caliber (at least once a week). There are several reasons why you do this.

The first is that you want users to have a clear understanding of your brand when they do land on your profile. Users will quickly lose interest and leave if your website contains little to no content. For scattered posts, the same is true.

You can share a story on social media. Users will understand what to expect from your page, what your voice is like, and what you have to offer when consistency and coherence are given priority. And in doing so, you’ll draw in your target segment.

Add variety to your content.

There is so much possibility for experimentation and creativity on social media. All too often, businesses adopt a single successful strategy.

Social media is continuously changing and evolving. Due to the addition of new features and shifting user habits on various platforms, what worked yesterday might not work today.

Keeping this in mind, experiment as much as you can with content types. For instance, you can only post videos on TikTok. On Facebook, though, you have the choice to go live, post pictures, run polls, and more.

For small businesses, the simplest approach for them to build their audience and grow their following is to create educational and/or compelling material.

We are not saying that small businesses should limit themselves to these two forms of content. They ought to experiment with all their content in order to determine what their audience prefers. However, this can be a good place to start.

Here are some suggestions to get you going:

Customer spotlights

How-to’s

Behind the scenes

Trends (viral sounds and dances)

Product features

Q&As

Facts about your industry

Quality over quantity.

This is true for both the platforms you use and the content you post. While posting frequently on social media is welcomed from a content standpoint, there is a catch. Your posts must all add value. If it doesn’t fit that description, think about a different tactic, such as sharing user-generated content or reposting brand-related content from a non-competitor.

Platforms.

A small business may not have the time or money to maintain an account on every social media network. Concentrate on one to three platforms that have the demographics of your target audience, and then move forward from there.

10Apr
How to Create & Maintain a Balance Sheet

Have you ever wondered how to create & maintain a balance sheet?

The balance sheet provides a summary of your company’s financial situation as of a particular date. The balance sheet explains in non-accounting words what your company possesses (assets), what it owes (liabilities), and what the owner’s interest in the company is (equity).

Essentially, if the financial statements are the story of your company, the balance sheet is the CliffsNotes. Your balance sheet gives you a clear image of what you own and what you owe, as well as a summary of your company’s financial status at a particular point in time. Below you will find information on how to create & maintain a balance sheet.

What are the main parts of a balance sheet?

1. Assets

Assets are the items that your company owns. They are often divided into two sections on balance sheets.

Current assets

Firstly, current assets include cash and other assets that you anticipate selling in the upcoming year. As such, inventory and accounts receivable are examples of current assets.

Fixed assets

Secondly, fixed assets are owned assets or equipment that the business uses to generate revenue from its operations. Fixed assets are things that will not likely be sold and that are bought for a lengthy period of time (longer than one year). As a result of wear and tear, their value depreciates over time. On the income statement, this modification is noted as depreciation.

2. Liabilities

Liabilities are the sums that your company owes to third parties in the next 12 months. More specifically, balance sheets divide liabilities into two divisions. Current liabilities and long-term liabilities.

Examples of current liabilities include accounts payable, credit card bills, sales taxes collected, payroll liabilities, and loan payments. Whereas, examples of long-term liabilities are term loans and mortgages.

3. Shareholders’ Equity

Shareholders’ equity is the value of the company’s obligation to shareholders. It is what the company owes you.

Equity includes:

The amount of money put into the business by its shareholders (startup cash you invested, etc.)

The amount of money generated by a business (amounts you have left in the business over time.)

Any donated capital.

Calculated equity using this formula: Equity = Total Assets – Total Liabilities

A Balance Sheet Preparation Guide

To produce an accurate balance sheet, you can use your accounting software. In every program designed for double-entry bookkeeping, the balance sheet is a standard report.

Firstly, go to the reports section of your accounting program and search for financial reports. The balance sheet should be near the top of the list, frequently right after the profit and loss (or income) statement because it is a common financial statement.

For the balance sheet report, some accounting software asks you to specify a time range. This can sometimes cause confusion. The balance sheet displays information as of a certain date. However, the profit and loss statement only displays information for a specific time period.

Furthermore, along with a financial overview of your company from the beginning to the balance sheet’s “as of” date, this data also provides a financial summary of your company.

The balance sheet’s objective

Primarily, balance sheets are utilized as a method for determining whether or not the accounting procedure produced accurate results. It is easy to spot an error on the balance sheet if assets do not match liabilities plus equity.

Contemporary accounting software does not allow for the recording of transactions that are not balanced, uneven balance sheets are an extremely rare occurrence. An uneven balance sheet typically denotes a software-related issue. Nowadays, balance sheets aren’t needed anymore. However, the balance sheet helps you measure your company’s health and make informed business decisions.

In short, a balance sheet is a critical tool for assessing your company’s health and making prudent business decisions.

How to make business decisions using your balance sheet

With a quick glance at the balance sheet, you can assess the financial health of your company. If equity is negative, which means liabilities exceed assets, that may be a sign that your company is having financial problems. Schedule a meeting with your accountant to discuss this.

Further, you can identify three key parameters from your company’s balance statement.

Current ratio

The current ratio gauges the capacity of your company to meet its short-term obligations. The equation is: Current ratio is equal to Current Assets / Current Liabilities.

The current ratio reveals how many times your company’s available cash can cover its current liabilities. Anything below 1 means your company won’t have enough cash or cash equivalents to cover its obligations over the course of the next 12 months.

Quick ratio

This is the quick ratio formula: Quick ratio: Current liabilities / (Cash & cash equivalents + Short-term investments + Accounts receivable)

The quick ratio, which measures liquidity, is frequently identical to the current ratio.

The ratio of debt to equity

The debt-to-equity ratio reveals how much of your company is financed by debt, or how leveraged it is.

The equation is: Debt-to-equity ratio = Total Liabilities / Total Equity

Keep in mind that we are now examining all liabilities, including long-term debt. Between 1 and 1.5 is a healthy debt-to-equity ratio. Anything above that may be a sign that your company is heavily leveraged. This can make it more difficult to find financing at a good rate.

Things to consider

The ratios are useful for making fast assessments of how well your company is performing in a few key areas. Evaluate the balance sheet, the profit and loss, and the cash flow statement in order to make good business decisions.

27Mar
3 Considerations When Planning to Sell Your Business

3 important considerations when planning to sell your business. It’s common knowledge when business owners reach retirement age that they lack a workable exit strategy. This is a step-by-step guide to help you get your company ready for sale while steering clear of any possible pitfalls. When getting ready to sell your company, bear these three points in mind.

Depending on the owner, this may entail selling to a third party or passing the business on to the next generation of the family.

The good news is that you can manage the financial aspects of exiting. Especially, if you want to sell and must find a buyer for your business. Many owners wait to deal with this issue until they are ready to move forward. Often, this causes one to feel stuck. It is not uncommon for the search for the ideal buyer to take three to five years. It’s important to keep in mind that, regardless of a company’s worth, the selling process can take a while. Here are three strategies to start planning your exit in order to do so on your terms:

1. Establish a timeline in advance.

The best time to decide how and when to sell your business is when you’re at the top of your game and not when you’re starting to slow down. Most business owners are most likely in their early 50s. They are not yet ready to retire but have plenty of experience to get the job done.

Having a timeframe will help you make decisions in the interim and give the sale a clear structure.

2. Specify who the buyer is.

A crucial part of preparing your business for sale involves finding a possible buyer. As was previously mentioned, this is a lengthy process that should involve thoroughly vetting prospective purchasers to see if their values, objectives, and ideas for the performance and culture of the company coincide with yours. This is a drawn-out process that needs to be carefully considered. In this manner, you may guarantee that the business is run in your style even after your departure. (This still applies if you’re giving the reins to a close friend or family member.)

3. Consider the how carefully.

Once you have found your buyer, it is critical to think about how the deal will be financed. One possibility is that your buyer has enough cash on hand or bank financing to buy your company entirely, which is fantastic! However, another possibility is that the buyer lacks enough capital (either owned or borrowed) to finance the deal in a single transaction. Instead, you will complete an installment sale in which you agree to the buyer’s repeated payments to you.

These three steps can help you proceed in a way that assures you obtain the best financial result. This result can be good for yourself and for future generations of your family. Preparation is key to success, regardless of the path you choose, the value of your company, or the timing of your exit.

Furthermore, allowing yourself more time to get ready can lessen the emotional toll of departing. When the time comes, it will therefore feel less unexpected and more like a seamless transition into a joyful and carefree life after becoming a business owner.

5Feb
5 Product Pricing Tips to Pump up Profits

5 product pricing tips to pump up profits. It’s critical for small businesses to keep their profit margins strong. Setting prices for products correctly is essential to both boosting present profitability and promoting future growth. The art of pricing for profit is a crucial skill that many entrepreneurs may not naturally possess, so it is imperative that small business owners develop it.

When deciding how much to charge for their products and services, entrepreneurs must take into account the time and inherent value of their work. Customers are frequently prepared to pay more for higher quality, which highlights the importance of strategic pricing. Establishing prices that are excessively high for low-value goods or too low for high-value goods can undermine consumer trust. Take into consideration applying these five pricing strategies to increase profitability and obtain a competitive advantage.

Retail to wholesale:

Calculate the costs of manufacturing and marketing the products. During this process, you must outline your marketing strategy. If you want to sell through retailers, you should budget for commissions. When approaching retailers, your selling price must match the wholesale price. Because shops resell products, it’s critical to avoid competing with them when deciding on retail pricing. The pricing formula is as follows: retail price = wholesale price x 2.5, while wholesale price equals total cost x 2. If you have a wholesale price of $40 and a retail price of $100, your total cost is $20.

Premium costs:

Companies with unique products use this method regularly and charge significant costs. If your product has a patent or trade secret that offers it a competitive advantage, you should utilize it.

Bundled offers:

Multiple items can be offered at a lower price than if they were sold individually. Frequent examples are Buy One Get One Free and Buy One Get One Half Off. This strategy helps you reduce inventory while enhancing the value perception of your customers.

Time-limited offers:

This strategy produces a sense of urgency and compels customers to purchase immediately. Consider using a discount or inventory countdown timer on product pages.

Psychological pricing:

Psychological pricing is a pricing approach that uses psychology or the subconscious to get customers to pay more. For instance, $6.99 is considered to be “cheaper” than $7. The idea is that buyers would view the somewhat reduced cost as a bargain and feel encouraged to make the purchase.

After putting a pricing strategy into action for a few months, review and revise your plan. Depending on the situation, you could need to adjust product prices, deal with a competitor, or adjust pricing to changing market trends. Don’t be afraid to change your direction when it’s required. A solid pricing strategy can help your business maintain its competitive edge and attract new customers.

18Jan
5 Tips on Scaling A Startup

5 tips on scaling a startup. When a business is being scaled up, one foot is in the startup phase while the other is in the maturing, scale-up phase. You are no longer a new startup with a strong sense of entrepreneurial spirit, an MVP solution, or Seed funding. However, you also aren’t (yet) a Fortune 500 company with tens of thousands of loyal clients.

Here are five of the best tips on scaling a startup.

Those that share your ideals will come to you

You must remain innovative, provide an interesting environment, and align your team’s beliefs if you want to draw in the ideal candidates.

This is a lesson that many people learn as they try to keep up with market trends. You must be aware that for your clients to make educated, comprehensive decisions, they need thorough supply chain sustainability data. There has been a rise in demand for environmental, social, and governance (ESG) data and reporting, as a result of the COVID-19 pandemic. Businesses want and need to demonstrate to their clients (B2B) and customers (B2C) that they are abiding by international norms and that their supply chain conforms with laws governing everything from dangerous drugs to modern slavery. By providing essential supply chain data and transparency, you have strategically positioned your business at the confluence of two major market trends.

Plan and prepare the environment

It is crucial to put mechanisms in place before you need them if you want to scale successfully. Take your time to write out a detailed description for each position so that you don’t hire too many or too few people. Create a multi-day onboarding procedure that is well-structured and makes use of a variety of learning approaches.

If you are looking for investment for your business, this requires a thorough due diligence process. The truth is that investors in venture capital thoroughly investigate each company they potentially invest in. Investors are curious as to what else you are managing poorly if you are not set up correctly in a department like HR.

Culture matters a lot

When you find outstanding people, you don’t want to let the competition steal them away. Hiring not only requires time away from routine activities but also costs money. While studies on the expense of a new employee have varied, estimates frequently go beyond $6,000 per candidate. At the heart of our onboarding process is culture. Even before they acquire any technical information about their work, your new hires should sense that right away. Making sure people feel valued is essential, especially when everyone is working from home.

Details are crucial. For instance, email a gift card for Uber Eats on their first day at the company. With a note saying, the meal is on us. Make sure administrative paperwork is finished and that they have their equipment before their first day.

Simple solutions are needed for complex problems

Another tip for scaling a startup is that simple solutions are needed for complex problems. It’s not simple to find qualified people to fill a variety of specialized tasks. Again, plan forward and keep an eye on the future. Momentum reinforces itself, therefore purposefully recruited amazing team members in the first round of hiring. Now you know who to talk to first when hiring someone, great people know great people.

However, great people also like to collaborate in a productive environment with other great people. As part of the hiring process, ensure that team members are exposed to a variety of coworkers. Participating in the hiring process with your employees is another possible aspect to consider. It’s just another way that prosperity feeds prosperity.

Reward the proper behavior

Some developing businesses run into problems when they reward an outcome, such as closing a deal, even if someone pushed others to do so. Or completing a project on time despite the fact that the team leader expected everyone to work late at night and on weekends. If you want your culture to be strong, make sure you’re rewarding behaviors that encourage colleagues to perform at their best and that align with qualities that are fundamental to your culture. One idea to consider is peer recognition and a reward program that is linked to daily operations. One can use their points to donate money to a good cause, buy gift cards, or transfer them. Giving them away to recognize others for outstanding efforts.

You can obtain insightful data with this system. Which teams are interacting with one another? Do marketing and sales exchange more points than usual? This information provides you with clues about what needs your attention. Keep track of this data because it can help you to determine whether teams are collaborating and working well together.

To scale a business successfully, you must have the foresight to realize the benefits of developing a solid team. Additionally, every touchpoint in scaling a startup is crucial because it is so difficult to recruit new talent in the market nowadays.

15Dec
Understanding Term Sheets: A Comprehensive Guide

Term sheets are crucial elements in various business transactions, especially in the world of startups and venture capital. Although they can be daunting at first glance, understanding them is key to successful negotiations and partnerships. This blog post will demystify the term sheet, guiding you through its complex nuances in a clear, accessible manner.

What is a Term Sheet?

A term sheet serves as an agreement that outlines the fundamental terms and conditions for making an investment, without being legally binding. It serves as a template to develop more detailed legal documents. By setting forth the key terms of the investment agreement, it provides a fundamental framework for business negotiations.

The Anatomy of a Term Sheet

Typically, term sheets consist of two main sections: the economic terms and the control terms.

1. Economic Terms: This aspect covers how the financials of the deal will be handled. The terms include details such as the valuation of the company, investment amount, price per share, and liquidation preferences.

2. Control Terms: This outlines how control will be divided among shareholders. It discusses the details about board composition, voting rights, anti-dilution provisions, and protective provisions.

Let’s delve into these key terms a bit more.

3. Valuation

Valuation refers to the worth of the company. It can be before or after investment. The pre-money valuation plus the investment amount equals the post-money valuation. Understanding this is vital as it affects the percentage of ownership you get for your investment.

4. Investment Amount

This is the total capital that investors provide to the company. The amount is usually provided in exchange for an equity stake in the company. The exact amount of equity depends on the valuation and the total investment.

5. Price Per Share

You can calculate this by dividing the pre-money valuation by the number of outstanding shares before the investment. This determines how many shares an investor will get for their investment.

6. Liquidation Preference

The order of payment in the event of a company sale or liquidation is determined by the liquidation preference, which dictates who receives payment first and in what amount. A “1X” liquidation preference means investors get their money back before other shareholders see any return.

7. Board Composition

This section specifies who will sit on the company’s board of directors. It’s essential because the board has significant influence over the company’s direction.

8. Voting Rights

These outline how major decisions are made. Investors often ask for voting rights on certain significant issues, such as issuing new shares or selling the company.

9. Anti-dilution Provisions

The protection mechanism ensures that investors’ stake in the company remains intact even if the company decides to issue additional shares at a lower price per share than the investors’ initial investment.

10. Protective Provisions

These are rights that allow preferred shareholders to veto certain actions by the company, giving investors a degree of control over decisions that could affect their investment.

11. Deciphering the Term Sheet

Term sheets have significant implications. It’s crucial to understand that the terms stated will lay the foundation for the final, legally enforceable investment agreements. Therefore, while the language of term sheets may seem dense, a thorough understanding is critical. Consider consulting with a legal professional who understands startup financing to ensure your interests are adequately represented. While doing so may incur some expense, it could potentially save you a significant amount in the long run.

Conclusion

Understanding term sheets can feel like learning a new language. With a clear breakdown of the core elements, it becomes less daunting. These documents are crucial to ensuring all parties have a shared understanding of the investment terms. Having a solid grasp of the structure and purpose of term sheets will better prepare you to navigate the world of business finance and investment.

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Strategies for Working with Influencers

Working with an influencer is a good strategy to expose more people to your business. Utilizing their unique viewpoint, you may ask them to share with their audience their impressions on your product or service. Approaching an influencer about endorsing your good or service can be frightening if you don’t know where to start. Below we have outlined strategies that can help small and medium-sized businesses adopt the best methods for working with influencers.

Transmit a clear offer

To get things going, make a very specific offer so the influencer can decide whether it might be something that works for them and that they are willing to endorse. Make sure to specify the types of posts you want (Stories, TikTok, etc.), the payment amount, the time frame for posting, and the scope of work. Although it will undoubtedly change from there, having a solid starting point makes the process much simpler and will allow the influencer to quickly decide if this is something they are interested in.

Include influencers on your social media pages

On your Instagram and other social media, highlight the work of influencers in your industry. This fulfills a variety of functions. First, folks who follow the influencers may stumble upon you because you connect to their favorite individuals or companies. Then, it’s possible that those same followers will start following you too! Lastly, your support for their brands can even spur well-known influencers to reach out to you to discuss future collaborations.

Allow for creative freedom

Give the influencer you’ve chosen some creative flexibility to carry out your campaign. Since influencers have knowledge from prior experiences, it is generally preferable to have a two-way collaboration when working with them. Certainly, it’s important to offer them a thorough explanation of your ideas, but after that, give them some creative freedom. By doing this, the content you create is distinctive and simultaneously appealing to both of your audiences. Consider it in this manner. You selected this influencer because you enjoy the content they produced. Keep in mind that they are the ones that know their audience the best and what content will appeal to them. Let them provide artistic guidance and asset suggestions.

Set reasonable goals and help

One thing you should remember if you want to work with influencers is that they won’t be able to do everything. You also need to put in some work. Make sure that you’re setting the right expectations for the influencer you are working with. It is important that you supply the appropriate tools ( product samples, information, etc.) to ensure that your product or service is accurately portrayed.

Before approaching an influencer, do some homework. Research them, learn what they like, the people they follow, their areas of interest, and the reasons they enjoy those things. Then, ensure that your brand is appropriately represented in that environment, so that when the influencer posts about it on social media, customers will get an authentic portrayal of what your brand stands for.

Finally, create trust with your influencer from the start so that when they post about your company, it doesn’t feel like simply another paid post, it feels natural and true.

List your deliverables, campaign objectives, hashtags, and tags

Give the influencers you’re working with a one-pager that includes all the information they’ll need for the campaign, such as brand handles, campaign hashtags, the objectives to keep in mind, photo specifications, and brand story, to set them up for success. When shooting and producing the content, it makes their job seamless.

To save costs, collaborate with other brands

By splitting the cost of influencers with partner brands, small businesses can cut spending. When you cohost events, competitions, and influencer outings with other businesses, your company has exposure to even more extensive marketing opportunities than it would ordinarily have. By selecting non-competitor brands, you may still make use of all the collaboration’s advantages without giving up any potential market share.

If you can, pay immediately and on time

Influencers share terrifying tales about companies that are slow to pay or, worse yet, just disappear altogether. Although it’s not always simple to maintain control, it’s crucial to go above and above to ensure timely payment and clear communication about when it will be made. Pay earlier than anticipated as a bonus.

Collaborations with influencers can benefit your company greatly. You can increase brand awareness, foster brand trust, and increase sales by collaborating in meaningful ways.

Use the most effective influencer collaboration strategies now that you are aware of them.

What made you start naked and famous denim?

How does your denim brand differentiate from other brands?

How did you come up with this idea? Why Japan?

What were some of the most challenging obstacles that you had when building your business and how did you overcome them?

What kind of risks did you need to take as a founder in order to be where you are today?