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THE ORANGE ECONOMY – WHERE CREATIVITY IS AN ECONOMIC ASSET

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THE ORANGE ECONOMY – WHERE CREATIVITY IS AN ECONOMIC ASSET

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Our economic potential is limited only by our collective imaginations – the right hemisphere of our brains applied to both creative and quantitative endeavors.

Orange, the Color of Creativity

You’ve heard of the green economy and the blue economy. Now, researchers are taking a closer look at the so-called “orange economy”. With no set definition, the core of the orange economy encompasses a wide array of cultural and creative goods and services from architectural design and performing arts to film, games, fashion, music and video games.

Creative goods and services include art you can hang on your wall, print newspapers and crafts, but also works that are “experienced” such as gastronomy and live music. Beyond the physical realm, they include gaming apps on your phone, advertising on TV, and streamed movies. The infrastructure that supports our interaction with creative goods and services are also part of the orange economy, such as stadiums, fiber-optic networks and museums.

Capturing the Value of Creative Output

A 2015 analysis by Ernst & Young presented in their report, Cultural times, attempts to quantify the value generated by cultural and creative industries in the orange economy. It suggests the global industry generated $2.25 billion in revenue, supporting 29.5 million jobs in 2013. At the time, the creative economy exceeded the value of the global telecoms services industry and the entire GDP of India – and this was before the digital streaming boom.

Value of Creative Industries
The Asia-Pacific region accounts for more than one-third of global sales and 43 percent of jobs associated with cultural and creative industries. Visual arts and television broadcasts accounted for nearly 40 percent of the value generated by the industry and 35 percent of jobs. Other parts of the industry such as newspapers and book publishing employ more people but generate less revenue.

The report credits cultural and creative output as driving the online economy’s rapid growth. Sales of e-books, music, videos and games generated $66 billion in 2013. Content sales in turn drove sales of digital devices and subscriptions to online media and streaming platforms and the advertising on them. Ernst & Young estimates creative content yielded $22 billion in advertising revenues in 2013 for online media and free streaming websites such as YouTube.

These figures have probably grown exponentially in subsequent years. Consumer appetite for greater bandwidth and faster networks available on smart, portable devices appears insatiable, and the figures do not include billions in online ticket sales for performances, or all the additional revenue and jobs accruing to creative professional service providers such as digital advertising and media agencies.

Beyond the numbers, nurturing talent in the cultural and creative sector is important to economic development and growth. The industry is characterized by relatively fewer barriers to entry and digital opportunities now abound for creators to grow their business by acquiring a global reputation and audience. Cultural and creative industries tend to employ more youth and women and can offer more flexible work environments.

For example, American artists are 3.5 times more likely to be self-employed than U.S. workers overall. On the downside, many of the associated jobs are gigs – or temporary work – and remuneration might rely heavily on acquiring and asserting intellectual property rights. Without sustained work that is well compensated, creative and cultural work may fail to provide a source of reliable and adequate income.

A Culture of Trading

The beauty of trade in creative goods and services is the ability to enjoy tremendous cultural diversity, ingenuity, and have shared experiences as a global community. When K-pop and K-beauty burst on the scene, everyone could dance Gangnam-style or slather snail slime on their face. Beyond the cultural enrichment, policymakers have noticed the boost to the GDP bottom line of exporting cultural and creative offerings.

The UK is known for world-famous video games. One of its most notable exports is Grand Theft Auto 5, the fastest-selling video game of all time, which grossed $1 billion worldwide in its first three days. The UK government launched a $6.2 million Prototype Fund to help video game start-ups and pledged another $6 million to support a Skills Investment Fund for training in this and other creative sectors.

Canada has long offered tax credits to attract film and video production. An Ontario Music Fund provides grants to address investment gaps in its live and recorded music industry.

Latin telenovelas and music attract global audiences. The many World Heritage sites in Latin America built upon ancient Inca, Maya or Aztec civilizations are magnets for tourism exports (when visitors spend money in your country), supporting both local and national economic development while sharing the region’s rich cultural history.

Orange stroke of paint

Modern and traditional African art, sculpture and music hold wide appeal and are featured in global concerts and festivals. Nigeria’s government supports its film industry (“Nollywood”) which has become the country’s second-largest employer, generating export earnings and tax revenues.

Deploying a different model, Dubai in the UAE has created a cottage industry of hosting international cultural events, boasting the region’s largest indoor exhibition space. The UAE also opened the Louvre Abu Dhabi in 2016 to serve as a focal point for contemporary art in the Middle East and invested $136 million in the Museum of the Future, which showcases futuristic inventions but is also positioned as an incubator for global design innovation.

Colombian President Iván Duque even campaigned on supporting growth of creative industries and set a goal of expanding production and exports to grow Colombia’s orange economy from 3.3 percent to 10 percent of Colombia’s GDP, putting it roughly on par with the manufacturing industry. He held an auction during which more than 320 investors bid on $124 million of “orange bonds” issued by Bancóldex backed by a triple-A rating.

Getting Paid for Creativity in the Orange Economy

To enable these industries to thrive, governments must shore up their legal frameworks to protect cultural and creative intellectual property from theft. Goods and services in the creative economy usually hold a distinct intellectual property claim, so that when an author or creator exports it, they retain some form of ownership on which to compensate them for use or enjoyment of the work. A developer in the Ukraine or Colombia, for example, would be entitled to receive a royalty each time their copyright-protected and licensed software is downloaded anywhere in the world.

Simply having appropriate intellectual property laws on the books, however, will not be sufficient to protect many creative works. In a survey by the Inter-American Bank, just 34.8 percent of creative entrepreneurs in Latin America and the Caribbean had made some effort to register their rights to intellectual property or obtain a copyright. Of the total of entrepreneurs, 17.4 percent responded they had not done so because they considered it “very expensive,” and another 16.4 percent said they did not know the procedures for getting the registration.

Although the survey was limited to one region, this is likely a familiar refrain globally, including in the United States where creators are familiar with rights available to pursue but find it too costly to obtain representation and navigate complex intellectual property laws. In some industries, creator organizations such as collective management organizations (CMOs) in the music industry, help overcome such challenges by manage licensing and distribution of royalties and remuneration to its member artists. More could be done by governments to help their creators avail themselves of intellectual property protections.

IP in LA for Creatives

An Infinite Economic Asset

Protecting author and creator rights is critical to fuel industry growth and provide returns to authors and creators, particularly as digital platforms expand. Although such platforms enable them to reach global audiences, creators must adopt new business models and strategies to monetize amidst a sea of free content on internet intermediary platforms. Another challenge is that such platforms remain immune from liability despite hosting entities that traffic in products that violate copyright and other intellectual property rights protecting their creative goods and services.

It should also be mentioned that when it comes to cultural and creative experiences, digital and virtual are not forcing the extinction of an analog experience. Before COVID-19, New York City’s Broadway was achieving record sales. World class museums like the Guggenheim and cultural zones like West Kowloon Cultural District in Hong Kong attracted their share of visitors. The Comic Market in Tokyo still drew global fans of Japanese manga and anime.

my visual

Put On Your Thinking Cap

Creativity is rapidly becoming a condition for competing in the globalized economy. It has become among the top ten skills sought by employers. The application of creativity is not limited to cultural goods and services. Scientific creativity drives the pursuit of new ways to study, experiment and resolve societal problems. Creative thinking is applied to design new products, new production processes and commercial practices.

Ernst & Young analysts point out that the world is young – and that young population is increasingly literate, has more means and a global outlook. If policymakers view creativity as a significant economic asset, and nurture and protect it as such, countries can leverage creative output to support jobs and growth.

And – if we can manage to protect freedom of expression and the ability to trade in cultural and creative works – we can simultaneously promote cross-cultural experiences, preserve traditions and heritage, and celebrate diverse aesthetics, which might just make our world more civilized.

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Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fifteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program.

This article originally appeared on TradeVistas.org. Republished with permission.

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Team Leadership in the COVID-19 World

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In 1933, when FDR delivered his first inaugural address, U.S. unemployment stood at 25%, and 7,000 banks had folded in three years. Even as he cautioned his fellow Americans that “the only thing we have to fear is fear itself,” he also conceded that “only a foolish optimist can deny the dark realities of the moment.” The realities of that moment still appear at this instant to be grimmer than those of the current one. Yet with a staggering 26 Million American filing for unemployment over the last five weeks, it’s challenging to dismiss projections of jobless rates reaching or even eclipsing the Depression-era peak that confronted FDR on that very first day of his presidency.

Today’s Americans may not emerge from the coronavirus siege embracing anything approaching the extreme of those directly impacted by the Great Depression, and no reduction in federal responsibilities in the current situation is likely to take the country back to pre-New Deal mode. However, it would be unwise to assume that the severe jolt to our sense of physical as well as material well-being inflicted by this crisis will leave no mark on our human behaviors going forward.

Obvious ones that may never return include handshaking (a tradition long gone in Japan), full-service toll booths, buffets, and sadly free samples at Costco. However, as we dig deeper into the business world, there are less obvious ones that can transition into new ways of doing business. This article seeks to highlight letting go of the past and what to look for in the new COVID-19 World.

We have often heard two widely accepted quotes that seem to contradict each other. The first describes a stonecutter who strikes the rock 100 times with no result. However, on the 101st blow, he sees the rock split. In short, it was not the 101st blow alone that split the stone, but the 100 that went before reinforcing the message of persistence and “staying the course.”

However, the second quote is that the definition of insanity is continuing to do the same thing again and again and expecting different results. The message here is if what you are doing is not working, change what you are doing.

In this COVID-19 World, the question the entrepreneur faces is when to persist and when to change course. The answer depends on the circumstances. To be successful in business in today’s world or any other endeavor, you must be willing to persist when times are tough.

Like the stonecutter, you must be willing to continue working hard through patches where there are no visible results. At the same time, success also requires that you be ready to change course when the current path is not getting you where you want to go, especially during a pandemic. Pivoting now and reinventing yourself may help you thrive later.

Depending on the type of business, we see shifts and pivots in commercialization strategies to help organizations recapture, maintain, and ultimately grow revenue. Obvious ones include storefronts to Direct to Consumer or “you come to us” vs. “we come to you,” adding guaranteed supply of hard to get essentials into unique offerings. Less visible but impactful pivots for CFOs include choosing profitability overgrowth. Government Subsidies, forgivable loans, and grants are the preferred option during these times vs. dilutive funding, and traditional bank business loans or lines of credit.

Looking inside and redefining, your organization should include using this crisis to define a new mission. Instead of ducking from the crisis, refine your company, and embrace it. Externally getting to know your clients better and looking at your client’s challenges from an outside perspective is essential. From a business development standpoint, look ahead at tomorrow’s needs. Ask the question: “What’s my unique selling proposition, and what should it be?” This will allow your organization to pivot and redefine itself appropriately.

Most importantly, believe in your business! See the light at the end of the tunnel. The changes you make to your business model will eventually add to the bottom line and improve profitability. When you believe your business can make it now, you will be a stronger, more resilient, less vulnerable company for the future.

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By Frank Orlowski, Founder and President Ation Advisory Group| frank@ationadvisory.com | New York, NY USA

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5 Reasons Company Leaders Resist Needed Change – Even During This Crisis

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The thought of change can be scary, even more so during the type of crisis we’re experiencing now with the COVID-19 pandemic. Although there are business leaders who are already implementing change in response to the challenging economic and operational landscape, many others are not.

“Sometimes the writing is on the wall and organizations are triggered to change,” says Edwin Bosso, Founder and CEO of Myrtle Consulting Group and the ForbesBooks author of 6,000 Dreams: The Leader’s Guide To A Successful Business Transformation Journey. “In fact, members of the organization often are keenly aware that something needs to be done. However, despite that, management does not act, and the cost of inertia can be high.”

According to Bosso, there are five reasons why leaders resist change and, as a consequence, struggle to move their company forward:

They confuse important versus urgent. Leaders sometimes confuse the terms important and urgent. “Important issues are those that do not necessarily have an explicit deadline, like urgent issues, but can effectively have some impact, large or small, on a business,” Bosso says. “The confusion sets in when owners and managers spend too much time putting out fires rather than planning. For example, the company may know that it is important to upgrade its operations. But it doesn’t become urgent until later on when the company looks at the output of its competitors that have completed transformation projects and have become a lot more cost-competitive.”

They lack courage/leadership abilities. Successfully initiating and executing a change process involves numerous leadership skills. “It can be intimidating taking on such a challenge that, to some leaders, may seem like moving a mountain,” Bosso says. “Others are better prepared to take risks, confront reality, envision a better way, make plans, and then act on those plans to lead a change.”

They misalign the incentives. The incentive to change or transform organizations can be misaligned with the incentives of people who are in charge of leading those transformations. “Misalignment of personal incentives can cause us not to act, even when we know it’s the best thing for the company,” Bosso says. “When we are in line for a promotion and higher pay, we certainly don’t want to take on risks that can potentially work against us.”

They lack support and/or resources. Not being afforded the requisite tools or the consensus for necessary transformation can leave a leader feeling powerless. “This is a set of obstacles that many leaders run into,” Bosso says. “The powerlessness can come from the lack of company means, organizational backing, human capital and resources to support the cost of a transformation. After a while, they run out of energy, or time, to make the case.”

They lack a method. It’s not uncommon for leaders to know the difference between where their company is and where it could be, but they don’t know how to proceed. “In such situations, leaders often freeze up and put off the impending need to change, or they approach it through trial and error,” Bosso says. “Having a methodology is beneficial when taking on such an effort. Some leaders take the time and effort to learn what needs to be done, while others bring in experienced people to provide a method for leading a smooth and successful transformation.”

According to Bosso, leaders must understand that there will never be a perfect time for change, but also that often the right change only happens if they force the issue.

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Edwin Bosso, the ForbesBooks author of 6,000 Dreams: The Leader’s Guide To A Successful Business Transformation Journey, is the founder/CEO of Myrtle Consulting Group (www.myrtlegroup.com). Bosso specializes in operations improvement and change management, and his project history includes work for major brands such as Heineken, Texas Petrochemicals, T-Mobile, Anheuser-Busch, Rohm and Haas, Campbells Soup Company, Kellogg’s and Morton Salt. A wide range of assignments has taken him throughout Asia, Europe, and North America. He completed his undergraduate education at The Hague Polytechnic in the Netherlands and earned an MBA from Rice University in Houston.

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10 Traits of Successful Entrepreneurs

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Many aspiring entrepreneurs see business ownership as an avenue to quick riches, a path to becoming “that boss” and creating jobs for the less fortunate, as a ticket to the freedom of working how and when they feel like; as they please! But owning a business is not that easy and convenient. If it was, everyone would succeed at it. The truth is that entrepreneurship can be your ticket to wealth, but it definitely is not your ticket to freedom. If anything, it calls for you to work harder than you ever did before, take huge risks, and fail at so many things without giving up. That is the entrepreneurial spirit.

There are many traits that define successful entrepreneurs. Here are 10 of those:

1. They network

Regardless of the niche they are in, or the success they’ve achieved already, successful entrepreneurs never stop networking. They work with influencers on social media, reach out to potential investors via emails, and generate leads by all means necessary. You will find seasoned entrepreneurs networking with freelancers in a coworking space in Chicago or using a shared workspace to get inspiration for business ideas from likeminded individuals. They regularly host events that create an engaging, exciting, and inspirational platform for their employees, clients, and other stakeholders to exchange ideas and challenge the status quo. That helps them to grow and compete more effectively.

2. They are disciplined

Successful entrepreneurs have clear goals and timelines, and data-inspired tactics to accomplish them. They are always ready to cut out anything that weighs them down in order to only focus on things that make their businesses work. They are disciplined enough not to deviate from that path.

3. They are passionate and motivated

They know the problem they want to solve within their niche, and their main motivation is passion; not money. They derive joy in seeing their target clients happy and satisfied. They wake up every morning eager to learn new things; to perfect their skill in order to change the world in a positive way.

4. They are creative

You need a unique, original business idea in order to cut a niche for yourself within a crowded marketplace. And because your fresh idea will always be challenged by newer ideas every single day, you must constantly figure out ways of doing everything better than it’s been done elsewhere. If you wish to remain at the top, you have to challenge the status quo and think outside the box even when you feel like you have the best ideas and strategies. That is why you need to be creative.

5. They are flexible

Flexibility helps entrepreneurs to adjust fast whenever things don’t go as planned, or when new and better opportunities present themselves. Successful entrepreneurs are quick to acknowledge a good idea even when it comes from a competitor. They are always open to their ideas being challenged, and they change tact as soon as they realize things aren’t working as they should.

6. They are persuasive

Entrepreneurs negotiate with stakeholders all the time. You have to persuade the best talents to work for you, clients to trust in your services and/or products, potential investors to buy into your ideas, and your employees to help you actualize your vision. That is why you need to be a persuasive person.

7. They work hard

Entrepreneurs have to work harder than their employees in order to set a good example, and for the fact that they own the vision of their establishments. As much as you can hire department heads to help you manage your business, you must be willing to be the overall supervisor in order to ensure that everything is done as per your directives. Sometimes you will have to work overtime and through weekends in order to catch up with all departments.

8. They are decisive

Entrepreneurs are constantly faced with questions and dilemmas that can make or break their business. Being decisive helps them to make sound judgment under immense pressure.

9. They are futuristic

Future-oriented entrepreneurs know exactly how they want the future of their business to be. They have a plan. They set their goals around a strong vision. They know how to read market trends and predict how those trends will affect their strategies in future.

10. They take risks

You cannot be successful if you aren’t willing to take risks. New marketing strategies, new technologies, and new investment opportunities are all risks that can make or break your business. Some risks are harmful, others are beneficial. To succeed as an entrepreneur, you must know how to distinguish between those two types of risks, when to take the beneficial risks, and how to create a plan B in case plan A backfires.

Conclusion

Entrepreneurship is an art that you have to master. Some of the qualities discussed above are inborn, others have to be developed.  But even as much as some of them come naturally to you, you must identify and perfect them if you are to be the best.

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Metros With the Most Self-Employed Workers

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The coronavirus pandemic has cost a record number of Americans their jobs as much of the economy shut down in mid-March. Even as some states start to reopen, many businesses will remain closed or operate in a reduced capacity, meaning millions of workers will remain unemployed.

According to Census Bureau data, there are over 15 million self-employed workers in the U.S., making up about 9.7% of the nation’s workforce. Self-employed workers are especially vulnerable during economic downturns since they do not have the same type of job protections as other workers. The CARES Act provides emergency government aid to workers affected by the pandemic, including the self-employed, who might normally fall through the social safety net. But these funds have been difficult to secure and can have long wait times. Furthermore, confusing messaging around the loans leave many self-employed workers unsure about what the funds can be used for.

The self-employed, which for the purpose of this analysis includes those adults who operate either incorporated or unincorporated businesses, are represented in every industry sector except public administration. Other services—a catchall industry sector that includes, among others, car repairs, barbershops, salons, dry-cleaning, and pet care services—has the largest share of self-employed workers at nearly 26%. Both the Agriculture, forestry, fishing and hunting, and mining industry and the Construction industry have high rates of self-employment, at 24% and 23% respectively.

As of 2018 (the most recent year of Census data available), these three industry sectors accounted for over 5 million self-employed workers, but a combination of non-essential business closures, disruptions of the food supply chain, and a hold on construction work in many states will likely drive these numbers down.

While almost 10% of workers are self-employed at the national level, the self-employment rate varies considerably across cities and states. Montana and Vermont claim the highest percentages of self-employed workers in the country, at 14% and 13.4%, respectively. On the other end of the spectrum, West Virginia has the lowest share of self-employed workers, with just 6.3% of workers who are self-employed.

To find the locations with the most self-employed workers, researchers at Volusion used data from the U.S. Census Bureau. The researchers ranked metro areas according to the share of workers who are self-employed. Researchers also looked at the total number of self-employed workers, the median income for self-employed workers, and the median income for all workers.

To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis. Additionally, metro areas were grouped into cohorts based on population size. Small metros contain 100,000-349,999 residents, midsize metros contain 350,000-999,999 residents, and large metros contain 1,000,000 residents or more.

Here are the large metropolitan areas with the largest percentage of workers who are self-employed:

For more information, a detailed methodology, and complete results, you can find the original report on Volusion’s website: https://www.volusion.com/blog/cities-with-the-most-self-employed-workers/

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How Entrepreneurs can Respond to the Coronavirus Pandemic

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Within the past couple of weeks, communities across the U.S. have taken swift and drastic action to slow the spread of coronavirus (COVID-19). Schools have been closed, events canceled, and businesses have changed their day-to-day operations.

In times like these—where the stakes are high and everything is rapidly changing, it’s hard to know exactly what to do. That’s especially true for entrepreneurs, who have to manage their business and care for their employees as well as themselves, their families, and their communities.

With that in mind, here are four ways small business owners can stay informed, prepared, and ready to respond.

Stay informed

New stories are breaking every few hours and official recommendations are constantly developing. With so much information out there, it’s easy to get overwhelmed … which can either lead to hours spent scrolling through the news, or tuning it out simply because it seems impossible to filter through everything.

Since it’s important to stay up to date, try putting together a roster of reliable resources you can use to stay on top of the latest news for yourself, your family, and your business—without necessarily spending a lot of time chasing down information.

Here are a handful of sites that might make worthwhile additions to your list.

Health organizations: The Center for Disease Control and the World Health Organization have a suite of medical resources, regular updates on the coronavirus, and guidance for how businesses, schools, and other organizations can protect the health of their communities.

National business organizations: The US Chamber of Commerce is regularly sharing updates and resources focused on businesses and the economic impact of the coronavirus, while the Small Business Administration has resources including employer guidelines, information on their disaster loan program, and a directory of local business organizations.

State and county governments: Local health and business departments are working to take swift action and keep their communities informed as they respond to the coronavirus. Checking in with them can be a great way to understand what’s going on in your community and what services they are offering in response. You can typically find their websites through a quick search.

Look for resources that can help

The sweeping changes we’re seeing in response to the coronavirus are, inevitably, having massive social and economic impacts. With schools closed, events canceled, restaurants vacant, and many other businesses dealing with closures or reduced demand, many people are dealing with reduced income or economic uncertainty.

At this point, nearly everyone is significantly impacted in some way. As a result, we’re seeing government and community organizations come together and try to find new ways to support each other.

If you, or someone you know, is facing challenges as a result of the coronavirus, look for resources that might help. And if you’re not sure where to look, start by checking with your local newspaper or news outlet, or contacting your state or county government for advice.

Here’s a general overview of programs that are already available or in progress:

-Although most schools are closed, many of them are still offering meals to children who rely on school lunches.

-Food pantries are doing their best to adapt to the changing needs of communities.

-The federal government is working to pass response packages that offer economic support to families, communities, and businesses.

-The Small Business Administration is offering resources, including disaster loans, for small businesses.

-Many state and local governments are offering financial relief for small businesses, including tax deferments, grants, legal assistance, and loans.

It’s likely that more and more resources will become available as time goes by. These programs all exist to help businesses, families, and communities get through challenges and bounce back from them, so don’t hesitate to use them.

Find ways to adapt

There are a lot of businesses that are especially hard-hit by the coronavirus. Travel, restaurants, entertainment, events … the list goes on.

And although it would be ridiculous to suggest that all these businesses can mitigate their losses by smart planning and marketing, some are finding ways to cushion the damage a bit. For example, some restaurants are closing their tables but offering delivery or pickup instead. Retail shops are focusing on ecommerce efforts.

If you’re seeing a substantial drop in business, take some time to brainstorm. Talk to other entrepreneurs in your community (perhaps via a virtual meetup). Look for new needs and opportunities, and see if there’s a way your business can pivot or stretch to fill them.

Challenges and obstacles can lead to innovation and new opportunities, if you’re prepared to meet them.

Support your community

It’s a tough time right now. Although many groups are hit harder than others, practically everyone is feeling the strain one way or another.

That’s why, if you can, it’s more important than ever to volunteer, donate, and find other ways to support your local businesses and communities. Here are just a handful of ideas:

-If local restaurants sell gift cards, consider buying one (or a handful) to show your support. You can also look for small independent retailers who offer delivery or online sales instead of turning to bigger businesses.

-Consider donating to your local food bank or Meals on Wheels.

-If you can, give blood. There’s currently a severe blood shortage, and the Red Cross has put together guidelines on donating blood during the coronavirus pandemic.

-Help neighbors who are especially vulnerable to the virus due to age or pre-existing health conditions.

-Find and support local nonprofits whose services are likely to be strained by the virus. The impact is potentially wider-reaching than you might think, but nonprofits that focus on food, healthcare, and housing are a great place to start.

It can be especially challenging to donate or volunteer when you’re feeling anxious or economically strained, but every little bit counts. One thing we do know about the pandemic is that working together, as a community, is critical—so keep looking for ways we can all support each other through this.

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Chelsea Hoffer is a writer at Azlo, an online banking solution for entrepreneurs, where she gathers and shares knowledge about building successful businesses.

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How Downtime Forced by Coronavirus Could Be An Entrepreneurial Opportunity

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For would-be entrepreneurs who have longed to turn a side hustle into their main hustle, the shutdown created by the coronavirus may have provided that long-awaited opportunity.

Often, a lack of time is one of the major reasons people give for not starting their own businesses. But these days – with everyone urged to stay home and outside activities limited – those newfound extra hours could be invested in taking steps toward creating that business, says Shravan Parsi, CEO and founder of American Ventures, a commercial real estate company, and ForbesBooks author of The Science of the Deal: The DNA of Multifamily and Commercial Real Estate Investing (www.scienceofthedeal.com).

“It definitely takes effort, energy, and a willingness to step out there, but the rewards can be great,” Parsi says.

Parsi was a full-time pharmaceutical research scientist working 9 to 5 and dabbling in real estate on the side when he realized his regular job was hampering his real estate deals because he wasn’t available to talk with people or show a house during the day. Eventually, he bid farewell to his old career and launched his new one in commercial real estate.

Parsi has a few tips for those who long to shake loose from their current careers and venture into something that drives their passions:

Be bold and flexible. A willingness to take chances and adapt to changing circumstances is critical. Even in seventh grade in his native India, ambition boiled in Parsi. He realized that to become the kind of global leader he aspired to be, he would need to know English. So, he transferred to an English school. “My parents supported my decision even though they knew it would be challenging,” he says.

Be interested in everything and observe closely. You never know when opportunities to expand your knowledge – and be inspired by new ideas – will present themselves. Parsi says he learned this lesson at age 14. His father was a doctor who himself invested in real estate as a passive investment and was having a two-story house built – one story for the family and one as a rental. “He pointed out that I had time to kill over summer vacation and recommended I watch the process,” Parsi says. “So my brother and I watched the construction and supervised the contractors. It left a strong impression on me.”

Pivot when necessary. Life doesn’t always go as planned – as the coronavirus has shown – so you need to be prepared to change direction, Parsi says. As an example, Parsi originally planned to follow in his father’s footsteps and become a doctor. But admission to medical school in India is highly competitive and he missed the cutoff criteria by one-tenth of a point. That’s when he pivoted and became a pharmaceutical scientist instead.

Learn how to sell anything. At different periods in his life, Parsi worked in a cell phone store, sold Amway products, and sold nutritional supplements. Those experiences weren’t always the best, he acknowledges, but he did gain something from them. “I realized that if I can sell the products and a story and recruit others, then I can sell anything,” Parsi says. “Selling is a pivotal skill most entrepreneurs must have.”

Anyone who is inspired to get their entrepreneurial drive moving during the current downtime should not completely throw caution to the wind, Parsi says.

“I did not quit my pharmaceutical job right away,” he says. “I had an objective to stay in that job until the real estate income was twice the value of my salary. When I hit that objective – when real estate was no longer a side hustle – I decided it made sense to invest more time in real estate than the scientific position.”

Now American Ventures is a successful multifamily and commercial real estate investment firm with a proven track record.

“Never settle for less,” Parsi says.

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Shravan Parsi, CEO and founder of American Ventures, a commercial real estate company, is author of The Science of the Deal: The DNA of Multifamily and Commercial Real Estate Investing (www.scienceofthedeal.com). Parsi is an entrepreneur and innovator with a background in the diverse fields of real estate investing and pharmaceutical research. He has been involved in Texas real estate since 2003. Born in India, Parsi developed a life-long interest in business and investing from watching his father, a medical doctor, invest in real estate. Parsi has acquired several apartment complexes in aggregate of over 4000 units  and several commercial properties by co-investing with private equity groups, pension funds, sovereign wealth funds, family offices, and accredited investors.

Entrepreneurs
Archives, Global Trade Daily, Special Reports, State Spotlight

Metros With the Most Successful Entrepreneurs

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Many Americans dream of quitting their job and becoming their own boss. Whether the goal is to live the laptop lifestyle or turn a creative pursuit into a full-time business, entrepreneurship offers flexibility and excitement, but it is not without risks. While the potential upside of starting a successful business is appealing, it often takes years for a new firm to become profitable, and many entrepreneurs do not earn as much as they did in their previous jobs. According to data from the U.S. Census Bureau, the median annual income for full-time entrepreneurs is $50,000, which is the same as the median income for all full-time workers.

At a more granular level, full-time entrepreneurs (defined here as self-employed workers in their own incorporated or unincorporated businesses) tend to report higher incomes than full-time employees at for-profit businesses. However, the typical full-time entrepreneur makes less than both full-time employees of non-profit organizations and full-time government workers. Interestingly, Census data shows that federal employees enjoy the highest median income at $65,000 per year, followed by non-profit employees at just under $53,000.

While nationally the median income for entrepreneurs is the same as the median income for all workers, there are big differences at the state and city level. At the high end, entrepreneurs in Rhode Island and North Dakota have median incomes that are 28.3 and 20.0 percent higher, respectively, than the median income of all workers. On the low end, entrepreneurs in Vermont and Delaware have median incomes that are 18.8 and 16.7 percent lower, respectively, than that of all workers.

To determine the metropolitan areas with the most successful entrepreneurs, researchers at ZenBusiness analyzed data from the U.S Census Bureau. The researchers ranked metros according to the income premium for entrepreneurs, which is defined as the percentage difference between the median income for full-time entrepreneurs and the median income for all full-time workers.

Here are the top 15 large metropolitan areas with the most successful entrepreneurs:

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For more information, a detailed methodology, and complete results for all metros, you can find the original report on ZenBusiness’s website: https://www.zenbusiness.com/blog/cities-with-the-most-successful-entrepreneurs/

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Archives, Global Trade Daily, Special Reports

Are Growing Pains Afflicting Your Business? How To Successfully Scale Your Company.

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Ambitious entrepreneurs often are determined to grow their businesses by expanding into new areas, adding new products, and increasing the size of their workforce.

But growth comes with potential hazards, which is why one of the leading causes of business failure is overexpansion – growing too much too fast.

“There are so many complexities involved with growing a company” says Shawn Burcham (www.shawnburcham.com), author of Keeping Score with GRITT: Straight Talk Strategies for Success, and founder and CEO of PFSbrands, the parent company of Champs Chicken, Cooper’s Express and BluTaco.

“If you’ve been a parent and raised kids, you can relate it to the various ages of kids. Much like your kids need different things at different ages, your business has different needs at different stages of growth.”

To stay on track with those needs, Burcham says business leaders need to:

Constantly evaluate employees. When a company is growing and improving, employees need to do the same, Burcham says. He’s an advocate of lifelong learning and expects employees to commit to continual personal improvement through reading, seminars or other educational efforts. In addition, while Burcham likes to promote from within, he will look elsewhere when necessary. “Scaling requires your team to evolve, but it also requires new blood,” he says. “As a company is growing, sometimes you have to go out and recruit the talent to help you get to that next level.”

Protect the brand. As the business grows, it’s crucial to adhere to standards and have quality controls in place. Otherwise, the business won’t build brand loyalty. “If you go into McDonald’s and you get a Big Mac or a Quarter Pounder, you want that Big Mac or Quarter Pounder to taste the same in every location,” Burcham says. “That’s ultimately what every national brand is working toward.” In his own business, he has seen competitors of PFSbrands locate in supermarkets and convenience stores with loose standards.  “In some cases, we lose business to these competitors who are lenient and have lower standards,” Burcham says.

Embrace the future. Scaling is all about embracing the future, and that includes understanding millennials who will make up 75 percent of the workforce by 2025, Burcham says. “Younger generations want to know why they’re doing something, and that makes a lot of sense when you think about how they grew up with their electronic devices,” he says. “They have been able to get answers anytime they want them.” Burcham’s company uses an open-book management approach that fits well with the transparency younger workers desire, he says. “Personal growth, education, and continuous learning are also things they are looking for. If companies today want to scale, then they need to embrace millennials and work to create an environment where they are engaged.”

Take their time back.“To be an effective leader as your business grows, you need to consistently work on time management,” Burcham says. He has five steps for doing this. 1. Decide what’s important and focus on two or three top priorities each day. 2. Stop doing some tasks. Instead, delegate or automate them. 3. Start on the most important thing first. 4. Learn to say no. 5. Block out time for self-improvement and life needs.

“Scaling is a process, not a destination,” Burcham says. “If you really want your business to grow, you need to be constantly moving, constantly evaluating and constantly improving.”

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Shawn Burcham (www.shawnburcham.com), author of Keeping Score with GRITT: Straight Talk Strategies for Success, is the founder & CEO of PFSbrands, which he and his wife, Julie, started out of their home in 1998. The company has over 1,500 branded foodservice locations across 40 states and is best known for their Champs Chicken franchise brand which was started in 1999. Prior to starting PFSbrands, Burcham spent five years with a Fortune 100 company, Mid-America Dairymen (now Dairy Farmers of America). He also worked for three years as a Regional Sales Manager for a midwest Chester’s Fried chicken distributor.

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Archives, Global Trade Daily

Starting a Small Business in California Is Easiest with Incfile

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We’re living in a time when anyone with entrepreneurial aspirations has ample resources to make their dreams a reality. So your new limited liability company has plenty of company, especially if you’re operating out of California.

The Golden State is a known haven for some of the biggest companies in the world, and if you’re looking to kick off your latest business venture in California, Incfile can certainly help you get started with a bang.

In fact, starting a business in California is much easier when you have Incfile’s extensive resources and expert assistance to guide you. But what does it take to launch a small business in California? Let’s investigate.

Getting Started

If you’re launching a startup or a small-to-medium-sized business in California, an LLC is most likely your best bet as far as structure is concerned. This allows you to enjoy the primary benefits of larger corporations without overcomplicating your finances.

As an LLC, you’ll enjoy liability protection that keeps your personal assets distinctly separate from your business interests, as well as the pass-through taxation that can save you money. In just a few simple steps, you’ll be ready to leverage the advantages of operating a small business in California.

Naming Your California Business

What’s in a name? A lot, as it turns out. After all, your name needs to set your company apart, establish your mission and connect with your potential customer base in an instant. With so many businesses already based in California, you may have to dig deep to uncover the perfect name for your company. But it can be done. You’ll need to understand the rules involved and search through the California Secretary of State’s business register.

If that sounds overwhelming already, we completely understand. Naming a business is an art really. If you need guidance along the way, Incfile can help you navigate the vast landscape of California LLC fictitious names and trademarks and file the necessary form with your county administration once you do settle on your company’s name. We can even reserve the business name for you if you’re not ready to move on it or get to work on the Articles of Organization if you are.

Finding a California Registered Agent

Your business needs a registered agent on record whom you can trust to receive correspondence and forward these on to you for further action. When you start your business in California, you’ll need to appoint one. Being a registered agent is a big responsibility upon which hangs the fate of your business.

So, if you are having difficulty finding an eligible person or entity to name as your registered agent, Incfile provides a complete service for your California-based business, including acting as your registered agent. We’re always available to accept your documents and automatically notify you when we receive anything new, sending it directly to whichever address you select. Moreover, if you incorporate with Incfile, we’ll include this Registered Agent service free for your first year.

Filing Requirements for California

With any business venture, you will always be confronted with a variety of fees and filing requirements. These will, of course, vary based on the specifics of your business (which licenses and permits do you need, for example?), but when you form your California LLC with Incfile, we’ll automatically charge you the state filing fee and forward it to the California Secretary of State on your behalf.

In addition, Incfile can obtain an Employer Identification Number (EIN) for your business — which you will need for tax, banking and payroll purposes — and can likewise secure a foreign qualification (also known as a Certificate of Authority) if you plan to operate outside of California state lines.

From the very first steps to completing your California Statement of Information, we can handle all your key filing needs.

Licenses and Permits

Depending on the nature of your business or your location within California, you may need to secure a range of licenses or permits before you begin operation. If you fail to do so, you could be facing serious consequences, especially if you run afoul of compliance regulations.

Through Incfile’s Business License Research Package, you’ll receive a complete report on all licenses, permits and tax registrations you need in California, as well as the application forms to file with the appropriate authorities.

Thoroughness is the name of the game if you hope to avoid placing your young LLC at risk and incurring significant fees, and Incfile is prepared to help you sidestep any such obstacles.

Taxes for Your California Business

In the business world, taxes are an unfortunate reality and one that can become more complicated as time goes by. California LLCs may be subject to everything up to and including self-employment, payroll, federal, state and state sales taxes.

Luckily, Incfile has you covered here too. Our Business Tax Filing service can provide the assistance you need to make sense of your tax filing and ensure that you complete all necessary documentation accurately and on time. Don’t let your new California-based business suffer during tax season, especially when you have a resource like Incfile on hand to provide guidance and save money and time with your filing.

Next Steps After Starting a Business in California

After your LLC is formed, the work has only begun. So there’s no time to waste. While the process we’ve discussed might seem arduous, you’re still in easily one of the best states to make it as a small business. And, with Incfile on your side, those odds are even more encouraging.

Now, are you ready to start your small business in California? We’re ready to help you get there, all the while preparing you to face your competition head-on and with confidence that your company is built to last, no matter the market conditions. To learn more about how we can help, check out our website and get started today!

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This article was originally published on the Incfile Blog.

Robert Yaniz Jr. has been a professional writer since 2004, including print and online publications. Much of his experience centers on the business world, including work for a major regional business newspaper and a global law firm.