This might sound crazy coming from an entrepreneur, but I've always had a thing for honesty. I despise lying and misleading because they inevitably cause more problems and create unnecessary challenges, both in one's personal life and in one's business endeavors.

Admittedly, it's not a common sentiment in the world of business, where the "fake it till you make it" mantra continues to ring loud, where the vast majority of business owners are deathly afraid of any failure and where it takes courts to extract admissions of guilt, incompetence or malfeasance.

As a former investment manager at a VC fund, I've had a front-row seat to entrepreneurship in the startup scene, which trades in smoke and mirrors like a commodity. Let me tell you — it's almost never about blatant lying. Most commonly, it's about twisting reality to craft a suitable narrative, e.g., cherry-picking growth metrics to aggrandize one's company, gaslighting customers despite legitimate complaints, making promises that are nigh-impossible to follow through, etc.
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Some companies, like Theranos, manage to fool everyone—even investors—and become massive success stories, albeit sometimes short-lived. But most startups cannot keep up the charade. In the U.S., half of all startups don't make it to their fifth year.

Of course, failure isn't always because of dishonest practices. There are countless legitimate reasons for a company to go under.

But I know what it's like to be at that critical juncture where your company is at risk, and I know the temptation to try to weasel through it with a seemingly small white lie in the hopes of saving face until things pick up in the future.

In fact, I've been there several times. And, every time, my business and I have come out stronger on the other side by owning up to the issues and tackling them with brutal honesty and transparency. I hope my experience can encourage you to do the same — not just because it's the right thing to do, but because I believe it's good business.

1. Transparency in crisis

My startup, Supliful, is a white-label CPG platform. Our clients are entrepreneurs — influencers, companies and online business owners seeking to launch their own private-label brands effortlessly. Accordingly, when our business runs into trouble, the trouble reverberates down the chain, affecting the operations of our clients.

One such recent case was in January 2024, when we faced many operational issues while moving to a larger warehouse in response to rapid business growth. Our fulfillment times were extremely slow, leading to complaints from our users. Timely delivery is the very core of our business. If we have delivery delays, we make our clients look like fools in the eyes of their own customers — a surefire business killer and not something that can be fixed overnight.

Instead of promising the impossible, ignoring complaints, or giving up, I set up an "ask me anything" session with our customers. I stood before them, let them voice their concerns and complaints and honestly admitted where we had fallen short. After that, I directly addressed the issues, explained our current situation in detail, and provided a realistic roadmap for when things would be resolved.

Our customers are entrepreneurs, too, so they understand what it's like to have business growing pains. They also loved the transparency and appreciated being fully in the know of what exactly is going on with their fulfillment provider, gaining a clearer picture of not only our business but theirs, too. Crucially, we also delivered on the roadmap we promised them.

2. Owning up to your mistakes

Much earlier in Supliful's journey, we had a different issue with an equally critical component of our offering — we encountered a major issue with the quality of one of our products. Customer complaints were piling up, and it became clear that one of our suppliers was not meeting the necessary standards.

Again, we could have tried to brush this under the rug, claim everything's fine with the product or make up excuses to deflect blame. But the reality was that ensuring product quality for our customers is our responsibility and no one else's. If the supplier doesn't cut it, then the onus is on us to find a better one.

We took a hard look at the customer feedback and acknowledged the problem openly with them. We sent out a heartfelt apology, explained the steps we were taking to address the quality issues and took the financial responsibility by offering refunds or replacements, even though our company was already facing rough waters.
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Looking back, the price we paid to retain our clients was a valuable investment — some of those who were most furious at that time are some of our biggest clients today. Again, customers appreciated our honesty, transparency and commitment to resolving the issue. Internally, it prompted us to find more reliable suppliers, ensuring better product quality moving forward.

Honesty is good business

Today, transparency and honesty are the cornerstones upon which our business is built. For example, I regularly share my business data and performance updates on LinkedIn — even when the figures paint an unfavorable picture. Brutal honesty doesn't have to be a reactive thing to do reserved for when shit hits the fan.

Sharing our story publicly and directly addressing all the issues builds trust with all the partners. This gives new business owners the confidence to partner with us and our long-term customers to stick with us. It has also paid back in spades in terms of business growth.

Sure, sometimes honesty is painful. It's not easy to own up to mistakes, especially when you know that they have negatively impacted others. But doing so is critical for getting to the end goal, namely, building a robust and sustainable business that can weather any storm.



Source: https://www.entrepreneur.com
Image Credit: ​Photo by Jopwell/Pexels.com

​Effectively managing cash flow is essential for covering expenses, investing in growth opportunities, and weathering unexpected challenges—from a long-term vendor leaving to suddenly needing a company vehicle. For new businesses, cash flow can be difficult with unpredictable revenue or limited resources.

Thankfully, seasoned CEOs and founders can offer their learned experience after successfully navigating these complexities. Below, you’ll discover valuable tips and insight on maintaining a healthy financial position through proven methods.

“How do you manage cash flow effectively in a new business?”

1. Start with a Forecast

“Always start with a forecast. A forecast helps preparation as well as helps in knowing when and how much the peak capital requirement will be. All transactions that happen in the day should be noted the same day. I recommend right after the close of business. This ensures all transactions are fresh and accounted for. Then a budget-vs-actual variance analysis needs to be done weekly to ensure that the business is on track with its budget. As a side note, I suggest always having a 1.5x peak capital emergency fund.” ~Kripa Dalal, AK Multinational LLC

2. Regularly Monitor Cash Flow

“Start by creating a detailed cash-flow forecast to project incoming and outgoing cash over a specific period. This helps anticipate financial needs and identify potential shortfalls. Regularly monitor your cash flow by tracking actual figures against your forecasts to ensure you’re staying on track and making adjustments as necessary.

“Prioritize prompt invoicing and follow up on overdue payments to maintain a steady inflow of cash. Implementing efficient inventory-management practices and negotiating favorable payment terms with suppliers can also help balance cash flow. Build a cash reserve to cushion against unexpected expenses or downturns. By maintaining a proactive approach to cash-flow management, you can ensure your new business remains financially stable and poised for growth.” ~Gary Hemming, ABC Finance Limited

3. Use Spreadsheets for Estimates

“Create a spreadsheet that estimates your cash inflows and outflows over a specific period. This lets you anticipate periods of cash surplus and shortages, making informed financial decisions easier. Regularly monitoring your cash flow using accounting software ensures you can accurately track income and expenses and make necessary adjustments. 

“Another vital aspect is managing receivables and payables efficiently. To speed up receivables, implement clear credit terms, and follow up promptly on overdue invoices. You can negotiate favorable payment terms with suppliers to delay outflows and maintain a positive cash flow. Controlling expenses is equally essential; reviewing your expenditures is crucial to identifying and eliminating unnecessary costs. 

“By categorizing expenses into essential and non-essential categories and looking for cost-saving opportunities, such as bulk purchasing or finding more affordable suppliers, you can ensure expenses align with financial goals.” ~Kristin Kimberly Marquet, Marquet Media

4. Focus on Effective Treasury Management

“As others mentioned, managing cash flow starts with a strong cash forecast. Once that is in place, it’s also essential to focus on effective treasury management. This will allow you to maintain liquidity by ensuring sufficient cash reserves to meet short-term obligations and optimize investment returns on surplus cash through safe, short-term investments such as treasuries. Continue to monitor your cash forecast and liquidity positions regularly to ensure effective cash flow management overall.”  ~Jack Perkins, CFO Hub

5. Avoid Unjustified Expenses

“Everyone is in business to make a profit. If your line expense is not going to be covered by a revenue stream that you are sure, with a good amount of confidence, will be there, do not spend it. If that expense cannot justify itself from a strategic or tactical standpoint, do not spend it. If the economy is tight and revenue is unsure, reconsider spending for strategic, far-into-the-future benefits unless you really have a hunch it is that important to position for.” ~Zain Jaffer, Zain Ventures

6. Set Up a Solid Accounting System

“Managing cash flow in a new business involves keeping a close watch on your income and expenses. Start by setting up a solid accounting system that tracks every dollar coming in and going out. Regularly review your financial statements to ensure you’re staying on top of your cash flow. It’s also helpful to have a cash buffer to handle any unexpected costs or slow periods.

“In addition, focus on maintaining healthy relationships with your clients and suppliers. For instance, offer incentives for early payments from clients and negotiate longer payment terms with suppliers if possible. This way, you can balance your cash flow and ensure you have the liquidity needed to cover your business expenses without stress.” ~Ryan Kelly, Easy Ice

7. Build Customer Relationships and Flexible Financing

“Focus on customer relationships and flexible financing options. Building strong relationships with your customers can lead to more predictable cash flow. Offering incentives for early payments or setting up subscription models can ensure a steady stream of revenue. 

“You can also explore alternative financing options that can help bridge cash-flow gaps. Consider lines of credit, short-term loans, or even crowdfunding if needed. These options can provide a financial cushion during slower periods or unexpected expenses. We’ve used flexible financing solutions to ensure we have the resources to take advantage of growth opportunities or cover temporary cash shortfalls. By balancing customer loyalty strategies with smart financing, you can keep your cash flow more stable and your business running smoothly.” ~Daisy Cabral, Bella All Natural

8. Create a Detailed Budget and Stick to It

“Managing cash flow in a new business is all about keeping a close eye on money coming in and going out. I start by creating a detailed budget and sticking to it as much as possible. This method helps me avoid overspending and lets me plan for upcoming expenses. I also make sure to invoice clients promptly and offer incentives, like discounts, for early payment to keep cash flowing in. I’ve worked like this since I started my business, and so far, I’ve been able to manage our finances without worrying about running out of money.” ~Daman Jeet Singh, FunnelKit

9. Understand Your Industry’s Unique Challenges

“Managing cash flow effectively in a new business requires a strategic approach tailored to our industry’s unique challenges. The first critical step is to develop a comprehensive understanding of your property portfolio’s income potential and associated costs. This means creating detailed financial projections that account for variables such as occupancy rates, seasonal fluctuations in demand, and potential maintenance expenses. 

“It’s crucial to maintain a conservative outlook, particularly in the early stages of your business. Overestimating income or underestimating expenses can quickly lead to cash-flow problems that are difficult to recover from.” ~John Gluch, Gluch Group

10. Act Quickly and Spot Cash Crunches

“We were able to manage our cash flow by carefully forecasting our expenses at the start of each quarter. My advice is to plan at least 3 months in advance and update weekly. This helps you spot potential cash crunches early. 

“I suggest being conservative in your estimates—overestimate expenses and underestimate income. If you see trouble coming, be sure to act fast. You might need to chase payments, cut costs, or seek additional funding at times, and this is much easier if you have time to act.” ~Chris Christoff, MonsterInsights

11. Predict Expenses with Free Tools

“To manage cash flow effectively in a new business, start by making a budget to predict your expenses and income. Keep some extra money aside for unexpected costs. Make sure to send out invoices on time and follow up if payments are late. Regularly check your cash flow to see where money is coming in and going out. 

“Also, try to save money by negotiating with suppliers and cutting unnecessary costs. Using software can help manage all this, and many are cheap or even free for startups until you make more money and hit their revenue thresholds and have to pay for them.” ~Travis Schreiber, Erase Technologies

12. Stick to the Short-Term 

“I diligently stick to short-term cash-flow forecasting. This way, I can keep track of how much money is coming in and going out over the weeks to spot any cash shortages before they become a problem. If I see that I’m going to be low on cash, I can make some changes, like delaying some expenses or looking for extra funding.

“I use simple tools like Excel to create my cash-flow models, and I have a 13-week projection that gives me a clear view of my finances. Plus, I always review these forecasts with my team. It keeps everyone on the same page and focused on our financial health.” ~Gary Gray, CouponChief.com

13. Maintain a Steady Rhythm in Cash Flow“

Think of managing cash flow in a new business like keeping a steady rhythm in a dance. You want to be in sync with your incoming and outgoing money. First, set up a clear budget and monitor your cash flow regularly to ensure you know exactly where your money is going and when. Encourage customers to pay you quickly by sending out invoices immediately and offering small discounts for early payments. 

“On the flip side, keep your expenses low by negotiating better deals with suppliers and cutting any unnecessary costs. Having a cash reserve can be a lifesaver, providing a cushion for unexpected expenses or slower business periods.

“Another important strategy is to avoid overstocking by managing your inventory wisely. This reduces the amount of cash tied up in products sitting on your shelves. If you need a temporary boost, consider short-term financing options like lines of credit, but make sure you understand the terms and manage repayments carefully. Seasonal businesses should save extra cash during peak times to cover expenses during off-seasons. Also, negotiating longer payment terms with suppliers can help keep more cash in your business.” ~Steven Mitts, IVeinte Spirits

14. Prioritize a Cash Reserve

“One tip that I can give to new businesses to manage their cash flow is maintaining a cash reserve. I always aim to have enough cash on hand to cover at least three months of operating expenses. This buffer provides peace of mind and helps weather unexpected setbacks or slow periods. 

“I’m also strategic about timing major purchases or investments, ensuring they align with periods of stronger cash flow. Also, I’ve found that utilizing financial tools like lines of credit can provide additional flexibility when managing cash flow, though I’m cautious about taking on debt unnecessarily.” ~Ben Whitmarsh, Generators for Export

15. Negotiate Favorable Payment Terms with Vendors

“Negotiate favorable payment terms with vendors—even if you don’t need them. As a new business, unexpected costs will arise, and you may need cash urgently. Even if you don’t need NET90 payment terms, figure out a way in which you can work with vendors to get some sort of post-delivery payment plan sorted. 

“This will increase your chances of being able to make strategic—or necessary—investments as needed to grow your business or simply to keep operations going. You’ll be able to operate without having to stress about whether or not sales from this month can cover expenses, especially when seasonality hits.” ~Firas Kittaneh, Amerisleep Mattress



Source: https://smallbiztrends.com/
Image Credit: Envato

In a world increasingly focused on sustainability and social responsibility, building a business with purpose has become a necessity. A purpose-driven business creates a nurturing environment for its stakeholders, which reminds me of some of the underlying principles of running a successful chicken coop and my experience building Chicken Coop Company. Here, we'll explore the lessons we can learn about infusing a business with a strong sense of purpose.

Make no mistake: Having a mission-driven business can significantly impact your success. Even when facing tighter budgets, 70% of consumers, which marks an 11% increase from 2022, consciously choose to back brands that donate money or supplies to causes that are important to them. Italian shoppers are especially enthusiastic, with 84% prioritizing these mission-driven brands.
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To ensure your business operations reflect your values, start by clearly defining your mission and values. Integrate these values into every aspect of your business, from product development to customer service. Just as a chicken coop must have all its components working harmoniously to create a safe haven, your business should have its operations seamlessly aligned with its values.

Conduct regular assessments to ensure your practices line up with your values. This might involve auditing your supply chain for sustainability or implementing employee training programs focused on your mission. Also, communicating your mission effectively is crucial for attracting and retaining customers. Transparency and authenticity are key. Share your story and the impact of your mission through various channels, such as social media, your website and marketing campaigns.
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​This is a great time to make sure your company "voice" is aligned with your purpose-driven mission. For example, if you were reading your website, emails, SMS or other communications, would you clearly be able to hear, perceive and understand the purpose you're trying to communicate? If not, now's the time to put the right words, graphics, gifs and videos together to communicate the benefits of your product or service to the customer and do so on the foundation of your mission-driven purpose.

Taking lessons from the chicken coop, let's explore practical steps to build a purpose-driven business.

​1. Define your mission and values

​A clear mission and set of values act as a compass for your business decisions and help attract like-minded customers and employees. Whole Foods Market's mission of "Whole Foods, Whole People, Whole Planet" guides their focus on natural and organic products, employee welfare and environmental sustainability. This clear mission has helped them build a strong brand and loyal customer base, even when they are the more expensive option. Just as chickens thrive in an environment designed for their needs, employees and customers are drawn to businesses that reflect their values.

Adding to this, it's crucial for businesses to regularly revisit their mission and values, ensuring they remain relevant as the market evolves. This ongoing alignment not only builds internal coherence but also enhances the external perception of the brand as genuinely committed to its foundational principles.

2. Integrate your values

Integrating values into business practices ensures consistency and builds trust with stakeholders. Dr. Bronner's, the organic soap company, integrates its values by committing to fair trade, organic ingredients and ethical sourcing. They also cap executive salaries and donate a significant portion of their profits to social causes. This commitment has earned them a loyal following and industry respect. Like a well-constructed chicken coop that provides consistent shelter and food, businesses that integrate their values create a reliable and trustworthy environment for their stakeholders.

Companies should consider establishing partnerships and collaborations that reinforce their values. For example, partnering with non-profits that align with a business's mission can enhance credibility and extend its impact beyond direct customers. A great example of this would be a vitamin company aligning with Vitamin Angels to give free vitamins to those who are malnourished.

3. Be transparent

Transparency fosters trust and loyalty among customers and stakeholders. Everlane, a clothing company, practices "radical transparency" by sharing the true cost of its products, detailing the manufacturing process and providing transparent pricing. This approach has resonated with consumers and set them apart in the fashion industry. Transparency in your business, like a clear, clean and open chicken coop, helps build trust and loyalty among those who depend on it.

According to a recent survey by Sprout Social, 86% of Americans believe transparency from businesses is more important than ever before. The same survey found that 73% of consumers are willing to pay more for products that offer complete transparency. Buffer, a social media management platform, practices transparency by openly sharing company financials, salaries and business metrics on its public blog. This transparency builds trust and aligns with their value of openness.

4. Engage your community

Building a community around your business can increase customer loyalty and advocacy. The Honest Company focuses on community engagement through social media, customer feedback and educational content about healthy living. Their approach has helped them build a strong, engaged community of parents who advocate for the brand. Just as a coop is a community for chickens, developing a community around your business creates a supportive and loyal customer base.

To that end, consider hosting community events and workshops that promote your products or services while providing value and enrichment to your audience, thereby strengthening the bonds within your business's community.

Ultimately, building a business with purpose — much like constructing and maintaining a chicken coop — requires dedication, alignment and transparency. By ensuring that your business reflects your personal values and communicates its mission effectively, you can create a positive impact on both your bottom line and the world. Take the lessons from the chicken coop and start building a business that not only thrives but also makes a difference.



Source: https://www.entrepreneur.com
Image Credit: ​Photo by Christina Morillo/Pexels

Creating a trash-bin cleaning business from scratch was a labor of love and came with some unexpected surprises.

The rise of conscious consumers has reshaped market dynamics, creating golden opportunities for niche businesses. This shift illustrates the potential for success when businesses tap into emerging trends. I discovered a similar opportunity in the trash bin cleaning industry, transforming a chance discovery into a leading enterprise.

This is important because recent insights suggest that transitioning to a circular economy, which minimizes waste and maximizes resource use, could generate substantial economic benefits, estimated at $4.5 trillion by 2030. This trend underscores the potential for intrepid businesses, like my trash bin cleaning service, to contribute to sustainability goals by reducing waste and promoting cleaner environments.

​Here's how my journey unfolded and what entrepreneurs can learn from my experience.

It all began by accident. Facing a messy situation with maggot-infested trash bins just before a Fourth of July block party, I was propelled into action by my wife's insistence. The laborious and unpleasant task of manually cleaning the bins under the scorching sun made me realize there had to be a better way. An internet search revealed that professional trash bin cleaning services were already established in Europe but virtually non-existent in the United States.

Recognizing a potential business opportunity, I traded my Lexus for a pickup truck and partnered with a welder to create our first cleaning rig. Sparkling Bins was born, and what started as a local service quickly grew into a manufacturing powerhouse, helping to launch over 800 companies across 46 states.

Learning valuable lessons right away

We quickly learned early on that broad advertising efforts were inefficient. Instead of covering the entire county of 4.5 million people, we narrowed our focus to smaller, densely populated areas. This strategy maximized exposure and minimized travel time, making operations more efficient. This is a key tactic for new entrepreneurs in niche markets — concentrate on a manageable, specific area first. Whether it's a cleaning service, lawn care or another specialized offering, starting small helps build a strong foundation and ensures sustainable growth.

Surprisingly, one of Sparkling Bins' most effective marketing tools turned out to be our own trucks. Cleaning bins during peak hours when people were home created a moving billboard effect. Additionally, participating in local events like parades provided further exposure, often leading to new customers who had never considered professional bin cleaning before.

For any niche business, visibility is crucial. Use your service vehicles as advertisements, and get involved in community events to enhance your brand's presence and credibility.

Getting all your ducks in a row

Before launching your niche business, you should complete the following checklist to better your chances for long-term success:

1. Test your market

Before diving in, conduct thorough market research to validate your business idea. According to CB Insights, 42% of startups fail due to a lack of market need. To avoid this pitfall, engage directly with potential customers through surveys, focus groups and face-to-face interactions.

For instance, we validated our business idea by talking to people at local stores and events, ensuring there was demand for the service. Similarly, Dropbox tested its market with an explainer video that attracted 75,000 sign-ups overnight, demonstrating significant interest before building the actual product.

2. Be financially prepared

Starting a business, especially in a niche market, often requires significant upfront investment and time to become profitable. I leveraged my severance package from my previous corporate job to sustain myself during the initial growth phase. It's essential to ensure you have sufficient financial resources or supplemental income to support your venture during its early stages.

According to the Small Business Administration (SBA), only half of small businesses survive five years, emphasizing the importance of detailed financial planning. Take Elon Musk, who famously invested $100 million of his own money to keep Tesla afloat in its early years. Entrepreneurs should consider securing multiple funding sources, such as personal savings, loans or investor backing. Developing a detailed financial plan can help manage cash flow and anticipate expenses, ensuring the business can weather initial challenges and sustain long-term growth.

3. Stay hands-on

Initially, it's vital to be directly involved in your business operations. This hands-on approach helps you understand the challenges and intricacies of your service, allowing you to make informed decisions and improvements. Howard Schultz, the former CEO of Starbucks, immersed himself in every aspect of the business, from making coffee to managing stores. This deep involvement, which he recommends to Starbucks leadership today, enabled him to refine operations and build a strong company culture.

According to a study by the Harvard Business Review, companies with hands-on founders tend to perform better because these leaders have a clearer understanding of their business and can pivot strategies effectively. Staying involved in day-to-day operations fosters a culture of accountability and innovation, essential for long-term success.

By adhering to these principles, entrepreneurs can navigate the complexities of niche markets and pave their path to success. My personal journey with Sparkling Bins illustrates that with innovation, persistence and a focus on sustainability, any niche business can thrive.



Source: https://www.entrepreneur.com
Image Credit: Photo by Vitaly Gariev/Pexels