Although we sold software, the majority of our revenues came from services, so we determined our budget based on how many hours we might bill and projected out from there. Borrowing or raising capital never entered my mind. Oh, I remember stating early on that I wasn’t looking to be the next Microsoft, but I also remember distinctly the reason: I didn’t want to lose control. Even though our company grew to multi-millions in revenues from what I considered being scrappy, I honestly think I was afraid of too much success.

I don’t know if I’ve always been that scrappy, but looking back I realized I needed to be to get through college. I had to work 3 jobs at one time to pay for college myself (eating Ramen Noodles in the tough times) because my parents didn’t have the means at the time. But at least then, I filled out every application for a scholarship I could find and opted for all the student loans possible. So why didn’t that translate into my business years later? In my first business, I never really thought about what I could do with someone else’s money.

Over the past couple months of co-founding a nonprofit, the Path Forward Center for Innovation and Entrepreneurship (the first nonprofit for both me and co-founder Renee Lewis), I’ve been building our financial models from what I thought we could make for our efforts – teaching the ACTiVATE program at UMBC, consulting, training, speaking, and license fees for rolling out the program. How can we make this happen by being scrappy? As we’re getting things moving, I’ve been working 24/7 and pulled in a million directions as happens in any type of start-up and have honestly never worked harder in my whole life nor enjoyed something so much. I can’t NOT do it. And then it hit me.

I was stuck in bootstrap mentality.

Although we have big ideas and visions for the Center, I kept coming back to ‘how can we earn the money to fund these great ideas?’ until I got my own boot in the butt. I kept seeing the signs – from the recent Kauffman study, to the Equity Matters seminar I helped run for Springboard, to the SBA focus group I participated in. This is also where it pays to hang around people smarter than you. All these events, the people around me, and especially the continuing success of our ACTiVATE participants and alum collectively and indirectly helped me realize that what we’re doing is SO powerful and the timing is SO perfect that it can’t wait to be bootstrapped. Bootstrapping isn’t good enough. We need to raise money from the outside.

I know this is contrary to what most people are thinking in this economy. And in fact, outside capital isn’t always the right answer for every business. But when the timing IS right and the idea IS powerful and the market IS ready, waiting to bootstrap can kill an opportunity’s momentum and chances for success as a result. It is a risk, though, as raising money isn’t easy and can consume a lot of time. It is an option that should at least be weighed by entrepreneurs when they start so they can build in the right infrastructure and value to get where they want to go. Neither fear of success nor failure should be among the limiting factors.

The transformation of my thoughts and, as a result, the vision for the Center was so incredible, yet so painful (as all growth is) I realized that many of the women who come through our programs are likely stuck exactly where I was. And now that I’ve gone through it, I am better at recognizing the symptoms in others and developing strategies to address this attitude head-on. If we’re ever going to help women reach the levels of success they are fully equipped to attain, this has to be a part of it (see friend Dr. Sharon Hadary’s recent article in the Wall Street Journal as backup!). And now I know better how to get there! I’ve always believed that pain can have an upside. And I know that ACTiVATE, the Center, and the women we touch will benefit from this pain of my thought evolution as well.

What the group lacked in size (there were only about 5 of us) we made up for with enthusiasm and diversity of perspective. The experiences varied from those of us with fairly low capital needs in the past (I had a line of credit in my first company that I only tapped into two or three times) to the real estate developer whose assets include more than one multi-storied building and borrowing needs well into the millions.  Without breaching confidentiality I can only say that it was a heated, animated discussion which, at times, involved more than one 4-letter word, which really

caused me to think: how many women believe or behave as if wealth – or even money – is a four letter word? Does a woman’s relationship with money impact her business approach and, ultimately, goals?

Over the past 5+ years of teaching in the ACTiVATE program, I’ve seen my fair share of women whose motivation for starting her own business is to change the world. I would say that a good majority actually fall into this bucket at some level or another. I am quick to relay to them, however, that it is easier to change the world when you have money, meaning to get them focused on the success of their business as a means to that end. Oftentimes, my bold statement is met with a skeptical or uncomfortable expression, which tells me more about their relationship with money than anything else. They believe, whether they recognize it or not, that focusing on money and wealth are bad.

Many books on entrepreneurship will tell you that starting a business purely to make money without following your passion is a recipe for lackluster or at least short-term performance or early burnout. The lucky folks are those whose passion actually leads them to a way to make money, which is exactly where we focus our ACTiVATE participants.  But we’ve found that unless they challenge their relationship with money and wealth beyond just a desire for nice material things and into a way to build value, they’ll never be able to cross that chasm so many businesses fail to get across: real, sustainable, profitable growth that can take them a long way to really making some lasting impact.

As I was musing over this phenomenon, seemingly from afar, I realized I had my own mind-shift that needed to happen. To learn more about that, look for my next blog on “Bootstrap Mindset.”

Part of this may depend on your entrepreneurial tendency and your sense of personal control. As an entrepreneur, I feel a strong sense of ownership of my efforts and ideas. It’s not about money for me, though. It’s about making sure the fruits of my labor and my creative ventures are being put to good use – that they’re helping change lives. It’s about ensuring my ideas and efforts move forward according to my personal mission. I’m curious – does that matter so much for folks who don’t consider themselves entrepreneurial?

For employees for whom the level of purpose described above is also a key motivator, it is your responsibility to align your job choices with your values. Unfortunately that is not always possible given the current job-market challenges, but ultimately, it is a worthy goal.

Companies that have benefited the most from employee-driven innovation exert effort to make sure their employees are engaged in the process. Whether it is through monetary reward or non-financial recognition, they find ways to motivate folks to contribute their creative ideas to forward the company’s mission. For an enlightening view on what motivates people (and it isn’t always what you think!) check out this great TED Talks video featuring Dan Pink.

The bottom line for employers: it is crucial that you keep in mind that different people are driven by different things and value different types of rewards. Just because something drives you, don’t assume it motivates others.

So can work-for-hire stifle innovation? Only if you let it…

ACTiVATE(R) Class of 2009

incredible women from the ACTiVATE® at UMBC’s Class of 2009. I am sad because we have spent every Monday night of the last year together (OK – we took the summer off!). As with classes before, it’s been a great experience. I felt privileged to witness incredible growth in already strong, accomplished women. Just goes to show – we all have room to grow no matter WHAT stage we’re at!

Dr. Kimberly Brown, ACTiVATE® @ UMBC Class of 2007, did an excellent job at delivering the keynote speech. She talked about what motivates people to make the leap into entrepreneurship – to move from the finite realm of job descriptions to the infinite possibilities entrepreneurship brings. ACTiVATE®, she said, made a difference for her by making the impossible indeed VERY possible. When she joined the program, she was negotiating to buy a business but at a standstill. Some simple advice she received at her interview provided her with the information she needed to move the talks along and purchased a government contract just 2 days into the class. Her company, Amethyst Technologies was born. What started as a 2 person company with 1 client has now grown 20 people with 9 clients, purely through word-of-mouth marketing. Incredible.Getting to know Kimberly through the program and outside of it, I am confident Amethyst is posed for even greater growth and impact under her leadership. Her opportunities are infinite.

Among the benefits Kim talked about receiving from the program, one that stood out in my mind as hard to find elsewhere was the support of and connections with other women like her. ACTiVATE® provided not only a community of smart, successful women focused on the same goal (starting a company), but we were able to provide her with numerous role models and connections to inspire, motivate, and assist her on her path. Emlyn Stancill, one of our current graduates, reiterated Kim’s sentiment at the end of the night. She said she’s so busy with

motherhood and work that she never has the opportunity to meet other women who so ‘get’ what

she’s trying to do. Through the other women in the ACTiVATE® program who get and support her, she’s found her people. And we SO get her because we are just like her!

As with the 4 years prior, another group of women are added to the impressive list of ACTiVATE® graduates. I recommend that you watch out for them…you’ll be seeing their businesses making headlines in no time!

“Last year was a tough one for many organizations, with smaller workforces required to do more with less. The new year looks to be more of the same. How can leaders of such organizations motivate their people as they head into 2010?”

Besides this being somewhat pessimistic about what the year holds in store for us, I found it a pretty broad question with varied answers from the team of business executives chosen to respond. The reply that got my attention came from Beth Brooke with Ernst & Young. She’s also a fellow Corporate Ambassador with Vital Voices. Her answer can be best summed up in her own words: “If cost-cutting wrapped up the last decade, this decade should be launched by innovation stimulated by the friction of diversity.”

She goes on to clarify that she’s about talking diversity not just along the traditional lines of

race and gender, but diversity of thought and experience. And I especially like her use of the word friction because it sounds better than conflict and tends to indicate less hostility. So many thought leaders in management have pointed out (and I learned the hard way) that a team without friction is not likely to be a very innovative team. Why? Because either everyone is thinking alike (not good) or folks are afraid to speak their minds (even worse). Good ideas don’t evolve out of those types of environments.

Instead, out of a confluence of different ideas emerges the next GREAT opportunity when the exchange is handled right. By handled right I mean the different ideas and opinions are productively managed and focused on a positive outcome. Productive conflict.

So the next time you’re in a meeting or talking with a colleague and disagree, remember that it’s a good thing. Diversity of thought can lead to incredible opportunities for innovation.

His shows contain a lot of great (free!) content so after listening in to our chat via the link below, check out some of his other interviews! You’re bound to learn a lot…

Following is a guest post provided by Anne Barber and Lynne Waymon. I’ve seen Lynne speak and not only is she engaging and fun, but her advice is immediately actionable and valuable!

Taking a scattershot approach when networking to find clients is the biggest mistake we see people make.  Joining all the area Chambers of Commerce and an alphabet soup of civic and service clubs and then attending once, just doesn’t work! Only strategic networking can bring in the business.  Use these tactics to help you become more focused and strategic.

Profile Your Prospects
What kind of people, exactly, do you want to work with?  Write a client description.  One private bank determined that women over 60 were their targets – but women with a certain level of assets.  What would these women be interested in?  Perhaps antiques.  Their marketing included a very posh “cream tea” at an elegant hotel with a speaker from Southby’s and a free antiques appraisal. Current clients were invited to bring their friends – and did.

Know What Networking Is
Think of networking as teaching people (who might become clients or refer clients) who you are and what to come to you for.  The first question that comes up in any conversation with a new contact is, “What do you do.”  Most people give their industry (I’m in financial services.), their company (I’m with Principal.), their occupation (I’m an insurance agent.), or their title (I’m a Wealth Management Advisor with TIAA-CREF.)  If you’ve been saying one of those things, you’re getting the conversation off on the wrong foot.  Instead, say one sentence that tells one specific thing you want people to remember.  If you wear many hats, take them all off but one.  Then say a second sentence that gives a short example of you solving the problem, serving the client, or saving the day.  A CPA says, “I’m a CPA who negotiates with the IRS.  I just convinced the IRS that my client’s horse farm is a business, not a hobby.”  This 2-sentence model guarantees you’ll give people something to talk with you about, rather than just responding, “Oh, nice.” when you give your title.

Teach People To Trust You
You’ve heard it before:  “People want to do business with people they trust.”  Before people will come to you, they want to be assured of your character and competence.  Everything you say and do reveals your character and competence.  Most people wn’t be there when you have your shining moments, so it’s only through conversation that people find out what you’re good at, what to send your way, and what to count on you for.

Pursue Your Passion
Target potential clients based on common interests.  One former pro baseball player targets professional athletes for is financial advisory business.  Instant credibility and rapport.  One young lawyer, who had competed in ballroom dancing, found clients when he attended tea dances on Sunday afternoons. The senior members of his firm sat up and took notice as his dancing partners began to show up on his client list.

Take your networking to the next level.  Be strategic.

Anne Baber and Lynne Waymon are co-authors of Make Your Contacts Count (AMACOM 2007) and co-founders of Contacts Count, the nationwide training company specializing in business and workplace networking. For more information, visit them at www.ContactsCount.com Hone your skills in a webinar with Lynne by going to http://www.contactscount.com/webinars.html

Special thanks to Carol Coughlin, CPA and Principal of Bottom Line Growth Strategies, Inc. for this guest post. Great information everyone can use!

Businesses love sharing news about their successes. Not only do they enjoy tooting their organizational horns, but they should share good news. It’s good business to tell customers, stakeholders and the public in general about the great things that are happening.

However, with a large number of businesses now in adverse financial situations, many owners are questioning whether sharing is such a good idea right now. They are asking:

•    Should we tell our employees about our financial situation and, if so, what exactly should we tell them?
•    How should we manage our Boards, banks and investors?
•    What do we tell our vendors?
•    When and how do we tell them?

Before we get on the loud speaker, call in the troupes for a state of the union or even consider blasting an email, we need to consider one question very seriously: What do people really want to hear?

Regardless of whether or not our own actions are the cause of the company’s current unfavorable financial results, there are significant economic forces above and beyond our control. The question isn’t necessarily who’s at fault? The critical question on our stakeholders mind is this: What are you, Person In Charge, going to do about it?

The answer to this is what’s desperately needed right now: for owners and leadership to fess up to what is happening and clearly state what they’re going to do to change it.

Generally, in communicating adverse financial information, Bottom Line Growth Strategies advocates transparency to key constituents. We are not suggesting you should advertise to the world that you are currently losing money or, perhaps more aptly, having cash flow problems. What we are saying is that your stakeholders want to hear what you are doing to correct your company’s financial hardships and when that correction will occur. And how you send that message depends on which type of stakeholder you are talking to.

Following are the key stakeholder categories and a guide to communicating Not-So-Good Info to each:

Your Staff: We’ve listed your employees first because they are your lifeblood and, as crazy as it may seem, the same employees who have been with you during good times not only can but want to help you to improve the company’s financial situation. All you need to do is give them the opportunity by including them in the discussion. Employees rally around those leaders who allow them to feel part of the inner circle.

You don’t need to hand out printed financial reports; instead give an update on how the company did in the past year, how it is currently doing, current factors influencing the results and, ESPECIALLY, the actions you are taking to fix the situation. Avoid making promises you can’t keep. This includes telling your folks there will be no layoffs or salary/benefit cuts. Making this promise and then needing to break it destroys your credibility. Instead, take this opportunity to emphasis teamwork and how you will all “get through this together.”

Right before you is an opportunity to get feedback on areas of waste, cost savings or, even better, increasing revenue. If you don’t talk, endless speculation and back channel communication may result. If you do talk, that time may be spent brainstorming new solutions and ways of working with the current reality. Take advantage of your employee’s knowledge.

Your Board, Your Bank, Your Investors: When managing and working with a Board (or other vested parties), honesty is always a good policy. But again don’t over- or under-promise by creating overly optimistic or pessimistic projections. Prepare projections you believe your company has a good chance of achieving. Boards, investors and the like don’t want surprises, especially bad ones. They want to know that you have a handle on the issues and, again, what you are doing to fix the problem. Always be one step ahead by anticipating their questions and hot buttons. It’s likely many of your Board members and/or investors have been (or are currently in) your exact shoes and you will build super-solid credibility with them by being honest and open during this time.

Your Vendors: Every business has key strategic vendors that need to be included in the Not-So-Good Info communication loop specifically so that they can assist your company in getting through tough times. If you communicate appropriately with vendors during financial adversity, not only telling them what is going on, but also what you are doing about it, they may be more flexible and collaborative about payments and other issues than you would have imagined. You do not need to go into a great detail with this group – just give them the bottom line – most importantly, your action plan.

Employees, vendors, Board members and investors have one thing in common: They are PEOPLE. And, generally, people are more than willing to work with and support someone in difficult times if they believe that person is honest, credible and, most critically, has a plan.

Communicating in business is not so different from communicating with friends, family or any other group that is in some sense vested in you. Human qualities like compassion, teamwork, perseverance, commitment, empathy and even love, rise up to meet the business owner who has the guts to face tough times head on with honesty and with integrity.

Certainly, we want you to be strategic in your conversations, but when you are sitting at your desk pondering whether silence really isn’t golden, remember this: You, them, us – we really are in this together.

Gloria never really set off to start her own business. She became enamored with cruising on her honeymoon. They had been upgraded to a suite on the QE2 and had such a delightful time, Gloria caught the cruising bug. The next cruise she took, however, didn’t include an upgrade to a suite, but she couldn’t help but notice all the upgraded travel agents. She wanted what they had – access to travel opportunities. And that is how the idea for Omega World Travel was born. As she framed it, “Inspiration carries us where we didn’t even know we wanted to go”.

Over the 34+ years that Gloria operated and grew her company, innovation in all forms was at the core of the company’s success. Gloria credits their “gearshift” mentality – flexibility with ability to change directions – as crucial to survival and sustainable growth. They had to continually understand and tap into their clients’ evolving needs. She also saw huge benefits in making everyone in the company think entrepreneurial – a philosophy that we both share.

In fact, attitude is so important at Omega World Travel that Gloria wore a pin given to all employees that has the word “Attitude” on it as a reminder. She shared her belief that it is up to you to “decide how you’re going to meet challenges.” Indeed, the right attitude coupled with action can make all the difference!

ACTiVATE at Texas State

In the all-day session we led, we focused on helping them get to know each other and build community while exploring their personal goals for starting their own business. In addition to having a lot of fun, we saw some real potential. I have no doubt there will be some great new technology-based businesses coming out of that program.

Special thanks to Kris Appel, Founder and CEO of Encore Path, Kimberly Brown, CEO of Amethyst Technologies, and Linda Burger of the Howard County Economic Development Authority, all ACTiVATE alum, for joining us and sharing their inspiring stories on how to make the most out of the program.

At the end of the day (which FLEW by!), I asked the ladies how the day would have been different if it had been mixed gender. While I’ve seen first-hand the benefits of having ACTiVATE be a women’s-only program, I was honestly pleasantly surprised by some of their answers.

If the class had included both men and women, all agreed that the day would have had a different dynamic.  One woman observed that when men are in the room, some women tend to let them take over, especially when they’re unsure about something.  Having men in the room can make them more self-conscious, especially when learning new skills or trying something new – like starting a tech business.

With the single-gender focus, the women noted the free flow of ideas as well as the team spirit that began to develop among these accomplished, driven women. One woman mentioned that they “get” each other – the decisions they’ve made and challenges they’ve experienced throughout their lives and careers.  Certainly, as we all agreed, the volume level in the room throughout the day remained at a higher level than it would have in mixed company.

The day left us all energized and pleased to welcome our Texas friends into the ACTiVATE community of women entrepreneurs. The whole trip left me personally jazzed about the program and prospects of helping it continue to expand.