I just read this really interesting story about Dr. Doreen Orion in Psychology Today and wanted to share it with you.

Dr. Doreen Orion is a psychologist, as is her husband, Tim.

That's why she truly thought her husband was insane when he proposed that they give up everything and travel the country in a converted bus for a year.

But after two years of being nudged to do it, Dr. Orion finally gave in.

So, off they went around the country in their bus. And, during that time, they experienced it all... from a fire, a flood, an armed robbery and finding themselves in a nudist RV park.

Was it worth it?

According to Dr. Orion the answer is a whopping YES. In fact, enough so that she and her husband have decided to sell their home and live on their bus full-time.

So, what did she find? What did she learn?

Dr. Orion learned that "being comfortable" is not all that great. She said, "I hadn't understood how important it is to keep stretching myself, to keep trying new things. A certain spark I hadn't even known was missing suddenly came back into our lives."

The key for me is this -- it is the process of making yourself uncomfortable and stretching yourself when real personal growth and progress is made. As an entrepreneur, you MUST do things that make you uncomfortable. You can not let fear get the best of you.

Consider Johnny Carson who is well known for his severe stage fright. Fortunately that didn't stop him.

And consider the millions of great entrepreneurs who had the courage to develop their business plans and launch their business to the world.

Now, if you haven't truly launched your business, that is, if you haven't developed your business plan and raised capital (if needed for your business), then now is the time to do it.

And, to "make you an offer you can't refuse" (to borrow the line from the great mafia movies), until this Thursday at 5PM EST, I have a really special offer for you.

The offer is this:

For just $1, you can instantly download Growthink's Ultimate Business Plan Template and get a 14-day trial to GrowthinkUniversity.com

To learn more, and take us up on this $1 special offer, click the link below to watch a video that explains it all:

http://www.growthink.com/products/template-special-offer

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The other day I had the pleasure of interviewing someone who I really admire - Dr. Basil Peters.

What I really like about Basil is that he's had success in so many positions. As an entrepreneur, he co-founded Nexus Engineering, which he grew to over 300 employees and sold to Scientific Atlanta.

He's also had success as a venture capitalist as CEO of the venture capital fund, BC Advantage Funds. And he is a successful angel investor, and co-founder and CEO of an angel fund called Fundamental Technologies II.

Basil also writes a blog on best practices for angel investors and entrepreneurs at www.AngelBlog.net and he is an Entrepreneur in Residence at Simon Fraser University where he spent 15 years as an Adjunct Professor of Engineering Sciences.

And finally, Basil is the author of a great book on exit strategies called Early Exits: Exit Strategies for Entrepreneurs and Angel Investors.

So, with this wealth of experience, I knew that I would learn a ton from the interview, and more importantly, be able to pass on several nuggets of wisdom to other entrepreneurs.

And he delivered.

In fact, Basil made one statement during the interview that I've thought about nearly every day since we spoke. Here's what he said:

"...So I've come to believe that it's a law. I believe that successful entrepreneurs have mentors, and I also believe that it's the most controllable success factor - it's the single thing entrepreneurs can do that would dramatically improve their chances of success that they can control."

An entrepreneur's most controllable success factor. Those are pretty strong and pretty wise words. Let's think about this. From the perspective of a proven entrepreneur and investor, having a mentor is one of the smartest thing an entrepreneur can do to improve their chances of success.

And Basil told me that virtually every successful entrepreneur that he has met has had either a formal or informal mentor.

So, why wouldn't every entrepreneur have a mentor?

Let's start with me. I don't have a formal person that I call my mentor and who considers me their mentee.  But I have had several informal mentors. An uncle who's a successful business man. Mega successful Growthink clients (I define "mega successful" as having exited companies for $100 million or more) who I've worked very closely with for years. And professors who have taught me and answered my numerous questions over time.

Now for those of you entrepreneurs who do not have mentors, I'm going to give you a hard time....Let's go over some excuses you might have:

• I don't have enough time
• I'm afraid to ask a potential mentor for fear I might get rejected
• I don't know who to ask to be a mentor

Unfortunately, none of these excuses are valid.

Finding a mentor shouldn't take all that much time, and this time will possibly have the greatest ROI of all your time investments.

Regarding fear of getting rejected, you'll simply have to overcome this. The fact is that you probably will get rejected by some potential mentors. That's ok. But you can't be afraid to ask. And to persevere until you find a great mentor.

Like everything else in entrepreneurship, rarely does your first effort work as planned. You need to persevere and keep trying.

Now finally, with regards to not knowing who to ask, I believe that any business person who has achieved success and who you respect and admire can make a great mentor.

Wow, 500 words so far, and I've only touched on one of Basil's great points. To get many other great insights from Dr. Basil Peters, listen to the interview.

Click below to hear excerpts from the interview:



To download the full interview and/or transcript click here.

I recently had the opportunity to speak with expert entrepreneur and founder/CEO of Lending Club, Renaud Laplanche.

Renaud is an expert in raising capital, as he has successfully raised multiple rounds of venture and other capital -- totaling over $50 million for both Lending Club and Triple Hop Technologies, of which he was also the founder.

So I was excited to ask him questions about raising capital for one's business and how LendingClub can help individuals and entrepreneurs. In the interview we covered:

• How LendingClub works
• The importance of your FICO score in getting a peer to peer loan
• How your track record of success factors into a successful capital raise
• That factor matters the most in selecting a VC
• Renaud's single most important tip for those looking to raise funding

Click below to hear excerpts from the interview:

 

 

To download the full interview and/or transcript click here.

Starting a venture and launching a product/service is not an easy task as can be testified by the thousands of individuals that start a business every year.

Yet many of these individuals overlook what I term, "Creative Transformation," the thought process, emotions, and actions needed to take one's idea and transform it into a viable business.

Often reality is not representative of what we think/dream in our heads. This predicament is often seen in start-ups in which entrepreneurs have a great idea but when developing that idea into a business the results may be a venture that is not representative of what they thought.

What causes this discontinuation?

Each case is different, but for a majority of cases a mix of a misguided thought processes, escalated emotions, and ineffective actions may lead to an unsuccessful venture. A recent client of mine, Alex Wagenheim, has experienced Creative Transformation and exemplifies how an entrepreneur can overcome it.

Alex Wagenheim is an ambitious and true entrepreneur by heart who has identified an unmet need in the small business market: the need for simple and efficient software. Alex's first major obstacle as an entrepreneur was being able to articulate his idea and vision into words so that our consultants could help him craft a business plan.

Alex went through a thought process where he had to analyze his idea and determine the value proposition that his service would provide to his potential customers. This thought process was a struggle as different variables had to be considered such as existing technologies, the market needs, and the level of sophistication of the customer base.

Each of these areas revealed more questions that needed to be answered and from there Alex experienced emotions of excitement when he discovered a large market for his venture.  But he became apprehensive when he realized that in order to launch his venture properly a large amount of work would need to be completed. Alex stayed optimistic and decided to curtail his frustration and create a plan of action.

Overcoming emotions and creating a plan of action is often the breaking point for many entrepreneurs. When the thought process, emotions, and risks are all negative it is typical for an individual to abandon their idea. Plans of action are abandoned and what is left is just an idea of what could have been.

At the onset of Creative Transformation, Alex realized that he needed help to develop his venture and service. The emotions he was feeling prompted Alex to react and seek the consulting advice of experts.

With Growthink's help Alex was able to transition smoothly through Creative Transformation and execute on the proper actions that will increase the success of his business. Creative Transformation was not a breaking point for Alex, but was the catalyst that prompted him to search for help from professionals.

Alex is currently completing a market survey for his target market and will develop the first beta of his software in the near future.

I’m excited to announce that today is the first day of registration for the Capital Raising Bootcamp!

To register your spot, go here.

And here are a couple of important updates about the Bootcamp.  

Update #1: I realize it’s the middle of summer, and many of you have probably planned vacations – or may even be on vacation right now (lucky you!).  To account for this, I’ve decided to provide recordings and transcripts as an added bonus when you register, in case you have to miss all or part of one of the sessions.  

Update #2:  I’ve decided to add an extra day to the Capital Raising Bootcamp curriculum, to allow for questions-and-answer time.  I’m going to dedicate this 4th day (Friday August 7th) entirely to Live Q&A.  

So, now, the finalized Capital Raising Bootcamp curriculum/schedule is as follows:

Day 1: Tuesday, August 4th:  Essential Overview of Raising Capital
Day 2: Wednesday, August 5th:  Venture Capital and Angel Funding
Day 3: Thursday, August 6th:  Debt, Grants, and Creative/Alternative Financing
Day 4: Friday, August 7th: Questions and Answers

(Each session runs from 2:00pm EST to 3:30pm EST).

Remember: There are only 50 spots available.  

We are putting a strict limit on registration in order to make the experience as valuable as possible for each participant – and, most importantly, to allow enough time for each person to have his or her questions answered during the Q&A time.  

To register go here.

Here is a video that explains precisely why raising capital is so important to your business.

And, importantly, it includes details regarding why it’s critical that you understand how to raise capital from multiple sources, even if you currently are only seeking one particular type of capital...

Near the end, I reveal a fantastic (and perhaps my favorite)  tip, which is the single most controllable factor that you have to improve your success in both fundraising and successfully growing you business.

 

Israel, more fondly nicknamed as the “Silicon Valley of the East”, is the largest recipient of United States venture capital, absorbing 7.7% of outbound investment dollars. For a small and relatively new country, Israel has jumped into the limelight as one of the largest producers of new technologies. The country is responsible for some of the most prominent inventions over the past several decades, including drip irrigation, instant messaging (ICQ), Intel’s Centrino computer chip, and voicemail technology.

Israel also holds the second greatest number of foreign companies on the NASDAQ, second only to Canada. Some of the more prominent multi-billion dollar corporations listed on the exchange include TEVA Pharmaceuticals (market cap: $41 billion), the world’s largest generic drug manufacturer, and Gilead Sciences (market cap: $43 billion), which develops therapies for viral diseases, infectious diseases, and cancer.

In 2008, over $2 billion was invested in 480+ Israeli high-tech companies, an increase of 18% over the prior year. Roughly 50% of funds came from outside of Israel, primarily from the United States, which has also shown significant investment in Israel by building Israeli satellite offices for American companies. In 1974, Intel chose Israel as the location for its first design and development center outside the United States, and thereafter opened 8 locations, employing over 5,300 employees. International companies such as Microsoft, IBM, Nokia, and Motorola have also followed in the footsteps of Intel Corporation by opening offices in Israel.

So why has Israel drawn so much VC funding and attention from the international business community?

Israel has the highest number of university degrees relative to the population and the largest number of scientists per capita in the world, with 145 scientists per 10,000 citizens, in comparison with the United States at 85 per 10,000. Additionally, Israel has the highest number of start-up companies in the world outside of the United States.

Israelis also receive extensive technical training through their compulsory military service and have adapted several advanced military technologies to other applications. For example, Given Imaging, which in 1998 came out with the first ingestible disposable video camera for viewing and diagnosing the small intestine, developed and adapted their product from an electro-optical device for military missiles.

The enormous pool of talented workers in Israel is also much more affordable for technology companies than those in Silicon Valley, and the government has been a strong supporter of growth in the hi-tech sector. The Israeli government provides incentives and grants to encourage capital investment and scientific research within the country.

Growthink has worked with dozens of Israeli entrepreneurs throughout its ten years of operations and has several strategic alliances with individuals within the Israeli Venture Capital community.

When entrepreneurs ask me what sources of capital to tap to fund their businesses, my answer is generally "as many as you can."

I often point to companies like Google, who relied on credit cards, angels and venture capitalists in its early days.

Recently Animoto heeded my advice. In it's most recent round of funding, Animoto raised $4.4 million from a venture capitalist (Madrona Venture Group), a corporate/strategic investor (Amazon.com), and two angel investors: iStockphoto founder Bruce Livingstone and angel investor Jeff Clavier (Clavier is also the founder and managing partner of SoftTech VC, a seed-stage venture capital firm).

What's even more interesting is what Animoto is. Animoto is a website where you can quickly and easily turn photos into videos. Why is this interesting? Because you can use Animoto to create a video about your company to market it to investors.

So not only is Animoto teaching each of us about how to best raise capital to fund our growth, but is offering a tool to help us market ourselves to investors.

To see how it worked, I created an Animoto account (doesn't cost anything and is quick to do) and created a quick video. I was home at the time with my daughter, so we did it together and created one with a few of her recent horseback riding pictures.

The good news is that it was really simple to create the video. The negatives were that 1) rendering time was slow (plan to wait at least 5 minutes before the video is ready to be viewed for a 30-second clip), and 2) the non-paid version only allows your video to last 30 seconds. Fortunately for $3 per video, or $30 for a year, you can create full-length videos.

Overall, Animoto is a great lesson in capital raising and a great tool to use when raising capital for your business!

While you probably have heard about the Stimulus Package and President Barack Obama’s push toward increased usage of renewable energies, you may not be aware of how this initiative can help your business and where the money is in fact going. The following information will explore the specific allocations of the Energy Stimulus and how you, as a business or as a consumer, can take advantage of this unique opportunity.

One of the most significant components of the $787.2 billion stimulus package signed into effect by President Obama in February 2009 is the initiative to spur development of “Clean, Efficient, American Energy”.  Of the total sum, more than $30 billion will be allocated to transforming the nation’s energy transmission, distribution, and production systems by improving grid design and investing in renewable energy and another $5 billion will be spent on home weatherization. The energy component of the initiative is aimed at reducing the country’s dependence on fossil fuels, spurring innovation, and creating jobs nationwide.

The following outlines the specific initiatives the energy stimulus money will be dispersed to:

• Improvement of Electricity Grid Design - $11 billion to build new power lines and deliver renewable energy
• Grants for Local Governments - $6.3 billion to state and local governments to reduce carbon emissions in their localities
• Renewable Energy Loans - $6 billion for funding renewable energy projects
• Home Weatherization – Weatherization is the process of protecting a structure’s interior from the exterior elements and improving interior energy consumption efficiency through highly effective insulation. The government has allotted $5 billion to lower income housing
• Eco-Friendly Government Buildings - $4.5 billion to make government buildings more energy efficient
• Fossil Energy Cleanup - $3.4 billion for carbon capture technology development
• Green Research – $2.5 billion in grants for universities, companies, and national laboratories that will demonstrate advancements in technology to foster energy independence
• Advanced Battery Grants - $2 billion to spur development of advanced vehicle and other battery systems
• Green Job Training - $500 million to train workers in the green energy sector
• Electric Transportation - $400 million in grants to develop electric vehicles
• Smart Appliances - $300 million in customer rebates for the purchase of energy efficient appliances
• Federal Vehicles - $300 million to replace or retrofit government vehicles to use renewable energies
• Department of Defense - $300 million to develop more energy efficient military equipment and bases
• Local Transportation - $300 million to local governments to purchase buses and trucks that use alternative fuels, and $300 million to replace or retrofit vehicles that use diesel fuels
• Energy Efficient Housing - $250 million to increase energy efficiency in homes, particularly low-income housing

Historically, companies have been reluctant to invest in renewable and clean energy technologies, because they require tremendous economies of scale to be profitable. Since these systems require large capital outlays upfront, it takes a long time to see return on investment. The Stimulus Package aims to combat these hesitations toward switching to renewable energy systems. The initiative will benefit various members of the energy sector from large utility companies upgrading energy grids to small businesses installing solar panels. It also benefits end consumers striving to make their homes more energy efficient through tax breaks and government subsidies.

Federal Involvement will Spur Investment, Growth, and Job Creation

The influence of government grants, loans, and tax breaks, will help encourage progress for both the supply and demand side of this sector. On the supply side, the government will provide research grants and funds for investing in promising existing and new technologies. On the demand side, the Stimulus Package will help companies and homeowners purchase new green energy systems by making them more affordable. The Stimulus Package will also create thousands of new jobs across the nation fulfilling these initiatives, helping to fuel unemployment and the overall status of the economy. According to Nancy Pelosi, investment in the green sector will create close to 500,000 jobs in 2009, 67,000 of which will be in the solar and wind power installation sector. Ultimately, the energy portion of the stimulus package will reduce American reliance on foreign nations for fossil fuels, generate domestic jobs, and promote innovation and adoption of new renewable energy technologies nationwide.

Access to the Allotted Funds

Whereas other areas of the stimulus package will be distributed through company applications and competitions to receive the funds, the money attributed to the energy sector will be primarily dispersed through tax credits and purchase incentives. For example, within solar and wind energy, the government is now offering a 30% tax credit to offset the cost of installing a solar energy system or wind farm, whereas previously the tax credits had a cap of $2,000 and $4,000, respectively. Some additional credits include up to $7,500 for buying a plug-in hybrid electric car or a 50% tax credit for gas stations or other businesses that install alternative fueling pumps. For more information on the specific types of grants or tax credits offered, please find more information at the following website: http://www.greentechmedia.com/articles/obama-signs-stimulus-package-5736.html.

So What Does This Mean for You?

Energy Companies

If you are involved in the clean energy sector, Growthink recommends additional research into the specific provisions of the stimulus to see if your business will qualify for federal subsidies or research grants. Additionally, Growthink suggests putting together a strong marketing campaign that highlights government support and tax credits for purchasing your products. This will educate the many unaware businesses and consumers that believe switching to alternative energies is outside of their affordability. Additionally, it is a wonderful way to draw positive publicity for your business. Growthink is happy to provide you with complimentary feedback on your current marketing program. We can also assist you by utilizing our expert group of marketing professionals to work with you on creating a Marketing Plan to target your customers in the most effective way possible.

Contracting, Construction, Eco-Friendly Transportation, and Electrical Infrastructure Companies

If you own a contracting, construction, eco-friendly transportation, or electrical infrastructure company, Growthink recommends seeking additional information on how you may bid for funds allocated to electricity grid design, weatherization, environmentally friendly transportation development, energy efficient housing, and building renovations. Growthink can help you with conducting this research and help articulate how your business is the most suited to perform the specified work or receive a government grant.

Consumers

As a consumer, you can reap the benefits of the energy sector stimulus by utilizing the tax incentives to switch to renewable energy systems, such as installation of a solar or wind energy system in your home. The government is also offering customer rebates for those who purchase energy efficient appliances for their homes.

The Obama Stimulus Plan is an unprecedented program that has created unique opportunities for tremendous innovation and growth within energy efficiency. Please contact Growthink for more information on how we can help you position your company to benefit from the billions of dollars allocated to this sector and within your reach.

This is the first article in our “Bottom Line” series focused on the $787 billion plan, where we analyze the spending bill's significance as a stimulus for U.S. entrepreneurs and emerging businesses.

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The figures are mind boggling.  A few billion dollars there, $50 billion there.  And how about the $165 million from the Troubled Asset Relief Program (TARP) that made its way to the executives of bailed-out AIG in the form of bonuses?  The unprecedented amount of public funds being spent to save and spur the economy through recent programs certainly includes a bunch of life vests for those failed companies that are “too big to fail,” but what about for the Entrepreneurial Economy?  

The American Entrepreneurial Economy includes 550,000 new businesses started every month.  It includes the emerging market:  the 2.2 million firms in the US with between 5 and 100 employees.   These are almost all private companies and most are less than 15 years old.   According to the US Small Business Administration (SBA), small businesses (those with fewer than 500 employees) make up 99.7% of all US businesses, account for 50 percent of the gross national product and create between 60 and 80% of the net new jobs each year.  Entrepreneurs are confident – often stubborn – risk takers who take on personal debt so they can follow their dreams of launching new businesses.  They collectively make up the American business engine that largely drives innovation, invents new products, and creates new jobs.   

We at Growthink work with these companies and business owners everyday and have assisted almost 2,000 in the past 10 years.  Due to their impact on the US economy, we sure expect to see incentives for entrepreneurial companies in the stimulus plan, in addition to the $200 billion doled out to some of the largest financial institutions in the US. As a country, we don’t need to “bail out” emerging businesses in the sectors that will drive the economy – young firms that are working to improve healthcare, producing energy efficient products and developing environmentally-friendly pesticides – we need to spur them on.

We are following the distribution of stimulus funding closely.  This means we’ve had to spend countless hours trying to figure out what’s in the plan and who’s getting what – the plan is about eight inches thick and leaves most of the funding details to the various governmental agencies that oversee specific sectors.  It’s been no easy task.  Just because the federal government is giving away an unprecedented amount of money in a record amount of time to save the economy doesn’t mean that it’s not being given away by the same bureaucratic system that existed before the stimulus plan.

In our “Bottom Line” series on the stimulus plan, we’ll focus on just that:  What’s the plan's bottom line for the Entrepreneurial Economy?  During the Series, we’ll provide concise descriptions of the business opportunities in various sectors and provide insight into how to receive funding.   We’ll also provide honest feedback on the results of the program from the perspective of the entrepreneurial community.  

So far, we’ve come across reasons to be optimistic.  The plan includes programs for entrepreneurial sectors and includes promising opportunities for innovative, growth-oriented firms, such as:

• More than $60 billion dollars in funding, grants and tax credits to promote energy efficient and renewable energy programs and products;
• $7 billion to extend broadband services to underserved communities;
• A focus on alternative sources of energy;
• Almost $20 billion for healthcare technology;
• $1 billion for a “Health & Wellness” Fund;
• More than $15 billion for research and upgrading research facilities focused on key areas of innovation, such as climate change, biofuels, disease control and prevention, and technology innovation; and:
• Enhanced and streamlined programs through the SBA.  

We’ve also seen some early outcomes that give us cause for concern.  Of course, there were those AIG bonuses, luxurious private jets flown by executives from failing automakers to beg Congress for bail-out money, and the hundreds of billions of dollars given to the firms that helped get us in this mess in the first place.  And hucksters, of course, have recently populated email spam folders with promises of stimulus funding in return for credit card information. 

But we’ve also seen frustration on the front lines when we’ve spoken and worked directly with leaders of promising businesses in those targeted sectors.   How do I apply for the funding?  Am I eligible?  Where do I even find the information?

Of course, part of the confusion and a lack of clear information are inevitable – current systems to notify businesses of the methods to access these funds are inadequate for such a surge in new programs.  But the confusion is largely due to the same complaints that start-ups and small businesses have expressed about government “support” programs for decades:  It’s difficult to even figure out what’s available and how to apply for the resources, and continues to be in the age of the Internet.  

During the next two weeks, we will provide those answers on a sector by sector basis.  No fluff, no platitudes, just the Bottom Line for your business.    

 

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The next article in our Bottom Line Series will focus on stimulus funds available for entrepreneurial companies in the healthcare sector.