Although it can be the most time-consuming and all-encompassing job you've ever had, running a small business offers significant benefits.

If you’ve taken the entrepreneurial leap, you will know it’s not without challenges. Yes, it can be incredibly fulfilling to set your own agenda and make a genuine impact, but it can also fill you with self-doubt and cause many sleepless nights.

Globally, the top three challenges of running a small business are: cash flow, emotional and mental health, and time management

Let’s look at these challenges and how you can overcome them.

Challenge 1: Maintaining cash flow 
If you are an entrepreneur or small business owner, chances are you have worried about money. At least 59% of small business owners experience cash flow issues which have a significant financial impact. No matter how well your company is doing, the amount of cash you have in the bank will always be linked to your future success.

Just because your company looks solid on paper doesn’t mean it can’t take a turn for the worst if clients stop paying on time or your outgoings far outreach your income.

As a small business owner, you have to plan for things not to go as planned.

How to overcome cash flow concerns: It can’t be stressed enough that building up savings before starting a business is essential. Even once your company is up and running, try to save as much of your income as possible.

Consider setting up a separate account for this money. Your client relationships can also affect cash flow, therefore (1) make sure your payment terms and conditions are clearly defined and communicated to your clients from day one since it will cover you legally if a client refuses to pay, and (2) consider asking for a percentage of your fee up front to minimize risk.

Challenge 2: Sustaining your emotional well-being and mental health 
Outside of the cash flow impact that financial challenges can create, they also affect small business owners emotionally.

In fact, 56% of entrepreneurs claim financial issues have a significant impact on their emotional well-being.

It’s not just money worries that affect emotional and mental health either. As a leader, work could potentially consume every hour of your life. Keep in mind that CEOs of major multinational companies learn to set limits on their working time so they can maintain their health and relationships.

How to protect your emotional well-being: Having a leadership role is intense, and therefore your body needs to train just as athletes do.

Keeping your body healthy will help to keep your mind positive. In your downtime, prioritize these three things: (1) rest, (2) health, and (3) fitness

Top CEOs on average spend six hours per day awake and not working. Of this, about half is spent with family. The remaining half is divided into one-third exercising and two-thirds relaxing. Spending time in nature can also help.

Just two hours per week in some sort of green space can result in greater feelings of health and well-being. Even a 20-minute daily walk through a park can be enough to produce these positive feelings.

Challenge 3: Managing your time 
With entrepreneurship comes a constant pressure to achieve and grow the business. Not to mention the sheer number of things that need to be done.

Small business owners also often fear taking time away from the business, so will put holiday on hold– sometimes for years.

If you try to do everything yourself, you will never get it all done.

Too many hours working and a lack of time off brings on fatigue, and with it comes rash or poor decision-making. And your relationships, health, and life outside of work will also suffer.

It is essential to learn how to achieve a work/life balance and manage your time, so the most important things get done well.

How to achieve a work/life balance: Prioritize. This is critical. You must learn what matters to the business and make sure that’s done first.

After this, you need to delegate. Business owners often struggle with this because they fear a loss in quality. But keep in mind this sacrifice should only be temporary. There may be a slight quality dip while the team member gets up to speed, but if you’ve hired the right person it should recover quickly.

With effective time management of work in place, make sure to schedule time for yourself for thinking and learning. You are not expected to know everything about owning and running a small business, so you need to grow into your leadership role. ‘Thinking’ time is crucial.

Consider that Warren Buffett says: ‘I insist on a lot of time being spent, almost every day, to just sit and think.’

As the strategic leader of the company, you are the guide. Force yourself to spend significant stretches of time thinking, with no interruptions. Do this regularly. Put together questions to guide your thinking time so you use it efficiently.

You can even combine ideas and schedule your thinking and planning time when you’re outdoors in green space.

Other ideas for achieving a healthy work/life balance include:

• Block time in your calendar for things that are important to you and/or your family.
• Try setting an alarm on your phone to tell you it’s time for bed.
• Don’t take your electronics to bed with you; keep your bedroom a place of calm and serenity to unwind at the end of the day.

Remember that sleep is so important to your daytime function– getting adequate, quality sleep will improve your concentration, productivity and cognitive function.

Although it can be the most time-consuming and all-encompassing job you’ve ever had, running a small business offers significant benefits. In fact, 97% of self-employed professionals say they would never return to traditional employment.

Take these ideas to make the great challenge of running a startup just a little more manageable.

source: entrepreneur

DentaCarts, an Egyptian one-stop dental marketplace, raises $450,000 in a seed investment round led by Egypt’s AUC Angels, Saudi’s Wadi Makkah, Japan’s AAIC, and US-based global startup empowerment firm 500 Startups.

“We are in a mission to help the dentists in our region by providing them the widest range of authentic products, a premium shopping experience, and the data that can enhance their performance and profitability,” says DentaCarts' CEO, Ahmed Yahia. “The seed is a step in our journey to lead the dental eCommerce in the Middle East and Africa” he added.

Established in 2017 by Yahia and his co-founder Saad Saleh, the startup offers the widest range of authentic and high-quality dental products via authorised dealers in the region. The innovative startup did not specify how this investment with be used, but it has declared its intention to become the leader of dental eCommerce in the Middle East and Africa.

Enabling its strong efforts to disrupt the ecosystem was the Misk500 accelerator programme, where the startup participated in the programme’s first cohort. The startup aims to provide innovative solutions and overcome challenges in the industry, such as access to the market’s limited choice, over-inflated prices, and fake products that cause risk to patents’ health and safety.

The startup claims that, so far, they have served over 1,500 authorised dental clinics, and made over 10,000 delivery orders to Egypt, Saudi Arabia, Kuwait, Kenya, and Ghana. DentaCarts consists of a variety of over 10,000 items on the platform, from monthly supplies to clinic furnishing, and it has over 100 authorized dealers onboard as suppliers.

source: thestartupscene

We all know that startups have gained massive popularity over the past few years.

They even got to the point of becoming mass-commercialized all thanks to their presence in different industries and fields. From technology to medicine, startup trends are constantly changing, which makes it difficult to predict.

For startup founders, keeping up with the latest trends can be crucial for success.

At a time when technology development can disrupt entire niches and industries overnight, being unprepared can bring an early conclusion to any business venture.

On the other side, taking advantage of the right trends can easily catapult a startup to stardom.

Running a successful startup business requires at least keeping up with the trends if not setting them.

There are, however, lots of trends that can affect a wide variety of small and large businesses.

The following ones promise to shape entrepreneurship in 2020. Consider how the following startup trends fit into your business plan.

Table of Contents           

1-Offline Retail Will Become A Side Feature

2-Subscription Services Will Continue To Sell Well

3-The Use of AI (Artificial Intelligence) Will Evolve

4-Customers Will Become Abreast of Their Data

5-2020 Is The Year of Voice Recognition Technology

6-Making Use of Voice Search

7-Extended Business Collaboration and Integration

8-Everything That Can Be Personalized Will Be Personalized

9-Blockchain Technology Will Blossom

10-Taking Advantage The Internet of Things

11-Marketing Will Become a Lot More Personal

12-Going Deep Into the Cloud Computing Era

13-Big Data Will Become An Essential Component of Digital Marketing, Healthcare, Security

Offline Retail Will Become A Side Feature

Are we going back in time?

Well, it appears so. However, offline retail is not going to change eCommerce at all. Instead, it will become a side feature of online buying. For example, we all saw that eCommerce companies have been experimenting with small retail stores and setting up experience zones in 2019.

In 2020, customers will be able to interact with the products even more before ordering them online. If you are a startup, think of all the ways you can provide this offline experience for them in detail.

Subscription Services Will Continue To Sell Well

Even though subscription growth has slowed a bit, the industry is still growing with an impressive 1% per month. Apparel, beauty, food, and lifestyle subscription boxes remain the most popular.

The market seems to attract more and more businesses and has plenty of space for new niche subscriptions.

Subscription-based businesses grow revenues 5 times quicker than other businesses. It is no surprise when subscribers place three times more orders than customers of non-subscription businesses.

The Use of AI (Artificial Intelligence) Will Evolve

AI is no longer a concept. In 2020, AI will power a sizable percentage of businesses.

It is everywhere – in your analytics, marketing tools, your customer service platforms, digital ads, and your smartphone.

Most of the people who are actively using AI don’t even know they are using it. That is because AI doesn’t look like what we once expected. It is working in the background to make processes more efficient, faster, and accurate. An AI can do various things that would normally demand human intelligence such as pattern recognition, decision-making, and creative endeavors.

Artificial Intelligence is not the same as machine learning. Machine learning refers to algorithms whose performance enhances as they are exposed to more information.

Startups that find applications for AI will succeed in 2020 as will businesses that bring the study of AI to new heights.

Customers Will Become Abreast of Their Data

Unless you are living under a rock, there is no chance you missed the recent startup trends – which are now dictated by consumers more than ever before.

In the coming year, trends like these are more than just expected. In a nutshell, consumers are very abreast of their data nowadays. So much, that they are always in need of more control over it.

The best way to adapt to this customer-centric future is by leveraging the trend with gift guides, themed polls, quizzes and content that speaks to the needs of your customers in a way that lets them manage their data.

2020 Is The Year of Voice Recognition Technology

Customers were positively surprised by Apple’s virtual assistant – Siri when it was officially released in 2011. One of the most unique features was the fact that you could communicate with Siri, search the web, and complete other tasks at the same time.

These days, voice recognition technology is entering our businesses, our cars, and our homes. Did you know that approximately 40 million Americans own a smart speaker? Apparently, virtual assistants are no longer a mysterious product but a necessity in today’s lifestyle.

To succeed in 2020, startup businesses don’t need to come up with their own voice recognition software. There are plenty of options out there to develop proprietary algorithms, apps, and other functionalities using the voice technology space.

There are opportunities for voice recognition technology in business services, manufacturing, education, healthcare, agriculture, and field service. Combined with Artificial Intelligence, startups can succeed in 2020 by creating voice recognition technologies that meet the needs of a specific niche.

Making Use of Voice Search

If you are rubbing shoulders in the startup crowd, you probably hear the term ‘voice search’ more and more often. The truth is, this kind of search has arrived – and it is bigger than many other forms of search discovered before.

On the question of why this kind of search is hot, we can say that voice recognition is a technology that improves. On another note, it is a technology that is customer-centric and as a result of that, has increased in terms of popularity.

Easy to use, fast and safer for people on the go, its use cases go in line with our fast-paced lifestyle. In 2020, the customers will use their voices to search for Google, and the startups will adapt to these changes.

Extended Business Collaboration and Integration

2020 will also be the year where more startups will collaborate between themselves and open up to potential partnerships and opportunities within and outside of their niche. Most importantly, this form of collaboration can be the perfect way to boost the sale value of your company/startup and make it worth more than before.

We already saw banks partnering with fintech startups – and startups seeking help from other startups, whether with their systems, APIs or data. Going ahead, these forms of collaborations will shape up the startup trends, allowing competitors to collaborate more and sell each other’s products for mutual benefit.

Everything That Can Be Personalized Will Be Personalized

The majority of customers prefer to work with businesses that offer personalized services. Personalization can take different forms, however, the most popular varieties are coupons on customer’s locations, recommendations based on previous purchases, and communications on the customer’s favorite channel.

Another type of personalization is a “channel of choice communication strategy”. Customers are turning away from live conversations as they prefer services that don’t require talking such as social media or SMS. Automated channels are growing in popularity, with more than 40% using chatbots. Around 45% of customers are open to any channel, as long as the service is personalized.

Blockchain Technology Will Blossom

Did you know that the demand for blockchain developers is now higher than ever before? Or that they are among the highest-paid developers out there?

Whether you have laid your hands on the blockchain or still haven’t explored this opportunity, you should know that in 2020 it will be very hard to not mention blockchain as part of the growth of a startup. In fact, blockchain is definitely one of the startup trends as the industry matures and its use cases expand.

Many Fortune 500 companies have been already exploring blockchain’s potential in terms of providing security and efficiency to their everyday operations – and this is just the start of it.

Taking Advantage The Internet of Things

In 2020, IoT technology will provide startup businesses with some of the best opportunities to make an impact. The Internet of Things is a system of machines, objects, computers, digital systems and people that are able to transfer data over a network.

When every possible object is a potential computer, IoT technology has limitless applications. Until now, many entrepreneurs have tried to build their own IoT products. Some of them succeed.

As technology gets smarter and smaller, APIs and business cloud services will become more and more standardized, creating a lot of opportunities for IoT projects. By the end of 2020, the IoT market will be worth $581 billion making it one of the most lucrative sectors among startup trends.

Marketing Will Become a Lot More Personal

This trend will keep on going as the user becomes the king. In 2020, we will see more actions that convince customers and speak directly to their needs.

Digital marketing, for example, has evolved quickly that most customers now have high expectations from brands. They want brands to understand them, know their needs, and give them what they want. Customers are looking for information online before buying a product or service. Businesses that provide the right information stand to benefit.

In order to succeed and adapt to these startup trends, you will have to provide high-value and personalized content in every step of the way.

Personalization is a very important startup trend, especially in email marketing. Around 70% of marketers use personalization in their marketing campaigns in the form of purchase histories, transactional information, and other data. Personalization, however, can go beyond greeting an email receipt by their name.

In 2020, we will see the next phase of personalization – hyper-personalization. It involves an in-depth analysis of customer data to provide the best marketing messaging at the right time.

Going Deep Into the Cloud Computing Era

Cloud-based hosting environments can gather hundreds of machines to provide a secure computing environment with no or minimal downtime. Both businesses and consumers have access to cloud storage, communication tools, and other centralized services where there is an internet connection.

Although cloud computing may sound like a dispersed computing environment that the internet brought to us, it isn’t.

There are lots of companies dominating the cloud computing niche. They are reliant on a network of data centers located in protected and secure locations. These centers must communicate with users and with each other which creates the possibility for lower discontinuation and security risks.

With 2020 edge computing, computation is performed on smart or edge devices instead of a centralized cloud environment. Related to the IoT or Internet of Things, edge computing is seen as an important concept for the production of physical computers and smart cities.

In the future, computers the size of your mobile phone may be able to take on workloads that only a data center can handle.

This is one of the most interesting and unexplored startup trends heading into 2020.

Big Data Will Become An Essential Component of Digital Marketing, Healthcare, Security

People think that Big Data means large sets of data. But that’s not the case here. It refers to data sets so large that computation software tools can’t handle them. In order to draw value from the data, AI or other new tools must be applied to find trends and patterns.

In 2020, Big Data will become an essential component for digital marketing, healthcare, supply chain management, industry, etc. Some of the assets that can be derived are:

• Business Process Optimization
• Predictive Analytics
• Cost-Effectiveness
• Organization Optimization
• Market Insight
• High-Performance Computing
• Marketing Effectiveness
• Behavioral Analytics

Startups that don’t accept Big Data will struggle. According to one research, data production by the end of 2020 will increase by 4300%.

As a startup founder, you must scan the horizon for new operational, technological, and financial developments to give your business the best possible chance of success. Knowing what is happening at the moment and what trends are predicted to make changes in the future is going to help you run your startup. You will be better equipped to run a business that takes advantage of favorable trends.

In the end, it is the year-on-year improvements that make the startup world great and innovative as every year goes by. In 2020, there will be many changes and the above-mentioned ones are definitely going to be in the spotlight.

So, do you know a way in which you can adapt to these trends and make use of them?

source: startupbasics

Everywhere you go, you’re in or around an ecosystem. Whether that term is referring to your company’s HR department, a group of products or services or even an entire country, ecosystem has become a catch-all for any entity that encompasses other entities smaller than itself.

In fact, according to Sloan Review, the word shows up 13 times more often in annual reports than it did 10 years ago.

So why the sudden spike in popularity? Is it just because people collectively decided the term was right? Maybe.

More likely, though, the rise of multicompany behemoths such as Alphabet, Apple and AT&T created a new world in which ecosystems are an inextricable part of daily life.

Amazon's recent entrepreneurial incentives are probably one of the most solid examples of this. The company is now offering workers $10,000 and three months of wages to quit working for Amazon and create small businesses that will deliver packages for the company instead.

Its goal is to create a unique ecosystem of businesses designed to support Amazon while still being separate entities.

This is all well and good, but what does an ecosystem actually mean for the people who start small businesses that aren’t part of multibillion-dollar conglomerates? If you’re one of these entrepreneurs, is the term "ecosystem" really relevant to you?The short answer is yes -- if you know how to take advantage of it.

The startup world is full of ecosystems that can help you get a foothold in your chosen industry. You just have to sift through all the buzz and misconceptions to get to what’s useful.

What 'Ecosystem' Means to Entrepreneurs

A healthy ecosystem is one that creates an environment where successful startups grow. Everyone needs to feel bonded to the greater purpose of the whole to create a network effect that drives the flywheel of success. As an entrepreneur, your ecosystem will consist of all of the contributors it takes to build a tech startup: investors, founders, operators, mentors, team members, corporate partners and more. Groups such as Y Combinator and Techstars are perhaps some of the more famous, but startup ecosystems also exist on smaller and local levels.

You don’t have to be plugged into Amazon’s ecosystem in Seattle or Walmart’s in Bentonville, Arkansas. Chances are that your closest metropolitan area has a budding startup ecosystem waiting for you to tap into.

However, tapping into an ecosystem and making it work for you isn’t as simple as just showing up somewhere and laying out a sales pitch.

A healthy ecosystem won’t support someone who just takes. It's about sharing experience and skills and bringing in your unique community to work with others.

With that in mind, there are some strong ways to ensure you get the most out of your ecosystem. Here are three.

1-Find your ecosystem center of gravity.

Most places have a central hub where people go to communicate, online or offline.

To find out where your industry’s meeting place is, start by checking with your local economic-development groups, which are active supporters of the ecosystem.

If that doesn’t work, you can also check with your local venture-capital firms, angel groups or even successful startup CEOs.

For me, joining a startup group called Positive Connections in college was an incredibly valuable stepping stone into the startup community.

It led me to my early customers and lifelong mentors, colleagues and friends. By finding your ecosystem’s hub, you'll be on your way to lifelong prosperity in the entrepreneurial world.

2. Schedule your participation.

According to a Gallup poll, even with a booming economy, Americans reported more stress and anger in 2018 than in the year before.

People are overworked and less likely than ever to take time out of their stressful days to go help others, which is why it’s more important than ever to do exactly that.

As an active participant in your ecosystem, it's crucial to show up. When your gathering place hosts events or asks you to judge a competition or volunteer, show up and bring others with you.

It often takes some time before you can start to make withdrawals, so take that opportunity to figure out what you actually want out of what you’re putting in. One useful trick is to end every conversation by asking, “How can I help?"

3. Become a super-connector.

In nearly every startup ecosystem, there are gaps. Play an active role in identifying those gaps and filling them in. Start the organization that you think is missing, and make it a goal to attract more VCs or build bridges between local corporates and startups.

Maintain a customer relationship-management tool that acts as a matchmaker for investors, mentors and founders, and when new folks show up to the ecosystem, embrace them and connect them to the old guard.

Being a super-connector takes time, but the return on investment is worth it.

According to a report from Impact Hub, 84 percent of entrepreneurs valued the sense of community that came with an ecosystem.

For many companies, collaboration in the community ended up resulting in more income and a better product.

By being the entrepreneur responsible for bringing this collaboration about, you can become a pillar in your community and a trusted collaborator in your own right.

So while ecosystem might be an overused term, don’t let that keep you from taking full advantage of the actual entrepreneurial ecosystems available to you. With work and the right collaborative attitude, you can tap into the power of your own and make connections that will last a lifetime.

source: entrepreneur

Even revolutionary ideas need a little help to get rolling. When an entrepreneur has a new business vision, he or she usually needs to raise money for development, marketing, and talent management. Unless the startup founders are high rollers with years of experience, they will look to venture capital and angel investors who will guide them through the first round of funding, the seed stage. 

There are a few guidelines that founders should listen to carefully in order to raise seed capital and grow their startup. First and foremost, leaders should be prepared before meeting with prospective investors, and have a list of references who will back the idea.

Founders should get creative with funding, always willing to put themselves out there beyond a comfortable limit. 

What Is Seed Capital?

Seed capital rounds differ from proceeding rounds quite significantly. More than a few players are involved, as multiple funds invest an average of $200 to $700K each.

In addition, there are usually a few individual angel investors who invest more than just financially in the company. Angel investors usually get to know the founders and have an interest in the business that transcends the necessary belief in a high return on investment (ROI).

Some distinguished angel investors include serial entrepreneurs and former CEOs who have a track record of bringing businesses public. 

The seed stage “plants the seed” for a startup to thrive, in order to launch business operations and show revenue data for the next rounds of funding.

Above All, Be Prepared

Business leaders need to have specified projections and hard numbers ready on demand for venture capitalists before diving head-first into the seed capital round.

A compelling business plan will include strength, weaknesses, opportunities and threats analysis (SWOT). Founders need to have a thorough understanding of how venture capitalists make investment decisions. 

Venture capitalists will need to know exactly how much funding a business will need and specific plans for allocating investment resources.

A detailed cost projection will need to be explained and defended. In order to uphold credibility and shield oneself from entering an unfair deal, founders should have a strong idea of how much of the business they are willing to give up.

They should also have a clear concept of the interests and goals of the investors, and an understanding of the capital structure of proposed funding.

Many upside provisions are confusing and if not understood can prevent founders from realizing future profits. 

Everything should be based on hard numbers that give best-case and worst-case ROI scenarios to founders.

The numbers will ultimately drive negotiations for the VC's percentage stock ownership.

Rob Go, partner at Next View Ventures, a seed stage investment firm, recommends on the company website that leaders develop a list of supporters prior to meeting with venture capitalists. Founders should identify references and make sure that they are on board, understand the business idea and know what to say when questioned by investors. 

Gather Committed Investors

Wait, isn't winning over investors what seed capital rounds are all about? Yes; however, this will be easier if businesses have established themselves prior to seed fundraising. Human psychology has shown time and time again that if someone else already went through the decision process, another will be more comfortable in making the same decision.

No one wants to be the first one to take a risk, even risk-loving venture capitalists. Founders should solidify investor commitments.

This way, when prospective investors make contact, the committed angels can confirm their decision to invest X amount in the startup.

Founders may strategically shoot for relatively small commitments, around $20-$50K.

They should also consider giving reasonable provisions on these promises, such as “provided that the funding round is at least X and reasonable terms are met.” This will make early investors more willing to negotiate, given the downside protection. 

Put Yourself Out There

If a founder doesn’t have mentors and angel investors as contacts, they cannot be afraid to get out there and go to the VC community directly.

Networking is the most essential tool and skill that an entrepreneur needs, ahead of business acumen.

Gagan Biyani, the co-founder of Udemy, a platform for online courses, told his story of seed funding wherein he was initially rejected by over 30 top investors. He wrote on the Udemy blog: “I went to every conference I could and literally killed myself while there.

I attending tons of networking events and met as many entrepreneurs and investors as I could."

Startup mentorship programs and incubator firms are open for applications. Y Combinator and TechStars are two well-known programs that churn out a mass of successful startups.

Many programs choose applications that receive on-premise coaching and a small investment to get the businesses off the ground, in turn for a percentage of equity ownership.

Ways to Plant Seeds

In the technology age, it's easier than ever to reach angels, who enjoy using social media channels and interacting with enthusiastic entrepreneurs.

Many lesser-known VC firms focus on local entrepreneurship funding, in counties and communities outside big startup hubs like San Francisco and New York.

Additionally, founders may consider the newly popularized crowdfunding method for raising seed capital. Kickstart.com and many others now act as a platform to match investors and startups.

The Jumpstart Our Business Startups Act, or JOBS Act of 2012, lifted restrictions on investing in early-stage companies so that the common person could have the opportunity to invest.

Companies that aim to raise less than $1 million in total capital can do business with aspiring investors.

source: investopedia

The dawn of the 5G era has arrived. While it might seem too soon to go out and drop serious money on a 5G phone, major carriers such as Verizon have already switched on their 5G networks in a number of American cities, including New York Detroit and Atlanta.

The technology offers huge opportunities, especially for startups.

Think of it this way: If you wanted to connect 10 devices to the internet a couple of years ago, you needed a router.

But large-scale organizations with hundreds or thousands of terminals had to invest serious money in sophisticated networking technology to support their network needs.

Going forward, 5G eliminates that problem. It doesn’t require a router, and the towers can handle a million devices within a square kilometer.

The development of 5G technology is similar to the invention of the internal combustion engine.

It changes the rules of the game, and the massive fall in latency and increase in bandwidth will make new business models possible.

 More processing will happen on the cloud rather than at device level, exponentially reducing software and hardware costs. And by freeing up the lower end of the electronic spectrum, 5G will make it easier to build a massive network of IoT-connected devices.

The opportunity for telecommunications companies to harness the 5G market is obvious, and they’re moving fast to roll out their networks and get staffs ready for changes.

For example, the FCC is working with the National Wireless Safety Alliance to train the 20,000 skilled workers it will take to maintain towers.

On the other side of that, companies that manufacture routers and provide cable internet services are going to come up against some struggles, but that doesn't mean all doors will be closed to them.

The swift transition to 5G will allow new players to move into old industries and adopt disruptive business models.

For example, consumers didn’t buy into Google Glass when it was launched back in 2013. People didn’t see the point, and the company botched its marketing strategy.

 But lower-latency connections and the higher bandwidth that 5G affords will make AR and VR hardware more viable as cloud processing gets faster, making room for innovations that at one time seemed too much like something from The Jetsons.

 Mojo Vision and Focals by North are already demonstrating the new potential for a once-mocked form of technology.

Further, the adoption of smart glasses, smart contact lenses and other AR devices will drive software developments.

New devices open new opportunities for software developers to shape the way consumers interact with technology and the world around them. 

Apple, Google, Microsoft and Amazon are likely all working in secret on new operating systems for smart devices, but it will be interesting to see which new apps and tech take off and flood the market.

But 5G won’t just shake up the consumer market.

Smart devices and sensor technology have serious industrial applications, so you can bet that oil pipelines, factory floors and warehouses will soon be putting them to good use. The diminishing costs of connected devices will also make it easier to leverage technology to drive real innovation in business models that need it most.

Startups need to prepare if they want to reap the full benefits of the 5G revolution, and they need to start now.

Here are three tips on how to get started.

1. Build 5G into the company culture.

Eleven million people will be using 5G smartphones worldwide by the end of 2019, according to research from Statista, a figure that's expected to hit 627 million by 2022.

That’s a 57-fold increase across the span of three years, and the dizzying speed of that change means that employees will need solid support to adapt. 

Training schemes and clear communication strategies are vital for getting everybody on board.

Business leaders can’t assume that everybody will understand what 5G means for the company.

They need to make the innovation a part of the company culture to ensure that everybody buys in.

2. Get everybody on the same page.

Every aspect of a business will be affected by 5G.

A lot of moving parts will need to be coordinated, and old management systems and ways of doing things might have to be abandoned to make companies more agile. Audi has already started working in that "out with the old, in with the new" philosophy by using Wi-Fi to connect the robots on its assembly line, but it has also started testing 5G and expects to roll it out across its German operations in the coming years. 

Companies in other industries can learn from this example, too.

They should set up the processes that will enable them to make a success of 5G technology and make sure every department adapts in response.

3. Open new channels for employee support.

According to Korn Ferry research, demand for skilled labor across the world is expected to exceed supply by more than 85.2 million people by the year 2030. Company leaders need to support their employees to ensure they don’t suffer the consequences of that shortage.

There will always be a learning curve for employees adjusting to new technology and processes in business.

Structured support before, during and after the change will ensure employees stay motivated as 5G technology makes its debut. Amazon, for example, is retraining a third of its employees to help them learn automation, machine learning and 5G, ultimately preparing them for the way of the future.

Make a note, too, that training is one part of the change, but employees need to feel like collaborators, not students.

They need opportunities to give feedback and help shape the process.

The widespread adoption of 5G technology will transform the business world over the next three to four years, so companies that want to experience the benefits need to get ready now.

The future, in the case of 5G, depends on the present.

source: entrepreneur

Every business requires an investment and business owners expect a return on their investments. There sure is an internal reward from the excitement of building something out of nothing, however, at the end of the day, wise entrepreneurs will always factor in the expected outcome of their investment and the potential of the product or service they’re investing to create.

In the technology space, the two biggest expenses required as an initial investment are in product (app) development and marketing.

However, unlike small businesses, even the most successful technology startups will rarely quickly generate revenue to cover operating expenses meaning that entrepreneurs must also have funds to run the venture for at least one year.

In today’s competitive funding environment, it’s no longer enough to attract investors with just an idea and even a few customers. Founders must be prepared to last.

Whether your startup idea is worth the investment depends on many variables.

The idea itself plays a big role. Here are what I found to be the three most important factors that will help you better predict the future of your idea based on your available investment resources.

1.The Business Model

Your startup business model is how you deliver your value proposition and make money.

The resources required to launch and operate a startup depend significantly on the validated business model.

For example, nowadays, it is a lot cheaper to start an e-commerce business than build a financial technology (FinTech) startup.

The cost of starting a content site like an online magazine is lower than the investment needed to build a social network.

On demand, virtual goods, auction, software as a service, peer to peer, membership and HealthTech startups vary in many ways, especially the human and financial capital required to start and operate the business.

As discussed in the third point below, the decision of the entrepreneur to invest in a startup idea should first consider their personal expected outcome from the business.

No matter the business model and investments required, everyone will suddenly want to contribute to a promising venture if there are tangible signs of success.

In other words, even if entrepreneurs don’t have the needed personal funds to start and operate a startup with a business model that needs a lot of cash, they should still execute as long as they have enough funds to reach certain levels of validation.

However, if the goal is to run a self-funded business that can quickly generate revenue and become self-sustainable, the business model should be on top of the startup idea evaluation list.

2. The Industry

The three things founders must consider in their decision to invest in their startup ideas with regards to the industry are competition, laws and their industry knowledge.

In a highly competitive industry, while founders may not have control over competitors’ actions, the end user will expect a significantly better solution to justify the switching cost to use their product instead.

Business models like FinTech and HealthTech tend to have more regulatory requirements as compared to other models.

This adds another layer of expenses that should be accounted for in the initial investment.

For entrepreneurs who have never worked or operated a business in a highly competitive and regulated space, the road to meeting their expected outcome is going to be extra challenging and will require significantly more resources.

3. The Resources

The four things founders must consider in their decision to invest in launching their ideas with regards to resources are cash, time, background (expertise) and team.

An incomplete product even if it cost half a million dollars doesn’t add any value to the user unless completed and adjusted to reflect their feedback.

Nowadays, there are many ways founders can release smaller versions of the app in order to quickly validate key hypotheses and build the next versions with higher predictability. While those smaller versions will vary based on the business model, founders who don’t follow this lean approach add another layer of startup risk. Additionally, the lean approach makes it feasible to start with a smaller budget since founders can divide the total investment to build progressively instead of spending it all in a product with many features that may or may not address user needs.

Data collected and analyzed by First Round capital shows that entrepreneurs with a technical background perform 230% better than non-technical founders building enterprise products.

However, the difference between the two backgrounds is not significant when it comes to consumer products. This goes back to the importance of considering the business model and target user in the evaluation of the investment in a startup idea.

Furthermore, the same company showed that teams with more than one founder outperform solo founders by 163%.

Is your startup idea worth your investment? Now you have three evaluation criteria that will help you make a wise investment decision.

The market is filled with business opportunities. Be honest with yourself about the expected return from your startup and keep in mind that no matter the business, success is for those who last.

At the end of the days, overnight success can take up to 10 years.

source: forbes

Egypt is the fastest growing startup ecosystem in the Middle East and North Africa region, according to a report published in 2018 by Magnitt, bagging 22 percent of all deals last year, second only to the United Arab Emirates. The country has also seen a significant spike in the number of venture capital companies, international funds, incubators, and accelerators over the last couple of years, which, along with government initiatives, have made Egypt an attractive hub for startups in the region.

“Egypt is seeing a second wave of entrepreneurs and investors that are more mature and experienced. The population is also starting to embrace technology for everyday activities and we see that large but young tech firms are a great source of talent and inspiration,” Ziad Mokhtar, managing partner at Algebra Ventures was quoted by the Magnitt report as saying.

Following are 5 things to know about this up-and-coming young entrant in the global startup space:

Almost Unicorns

Egypt is still a relatively new startup hub, and while it does not have any unicorns to its name yet, several promising companies are on their way to the $1 billion club.

Swvl, an app that allows customers to book rides on buses and vans in their network, tops the list with a total of $80.5 million raised over four funding rounds so far, according to data aggregator Crunchbase.

Vezeeta, a healthtech platform which allows patients to book doctors on the app, with $23.5 million raised over five funding rounds so far, according to Crunchbase, is next in line. The company closed it latest funding from a series C round in December 2018.

Instabug, Yaoota, Basharsoft, and Halan are some others on the list.

Incubators on the Rise

Flat6Labs is the most prominent accelerator in Egypt, and was the only one in the country up until a few years ago. EdVentures, the corporate VC arm of Nahdet Misr, one of the leading publishing groups of Egypt, is one of the main players in the education startup sector. Sawari, Algebra and Endure Capital are other private VCs.

Falak is a government run accelerator that invests in early-stage startups, and was established to give the startup industry in the country a much needed shot in the arm.

Government Efforts to Scale the Industry

The Egyptian Ministry of Investment and International Cooperation has a number of different startup programs and networks that helps founders develop their entrepreneurial skills, and companies navigate regulations. The initiative by the ministry, called ‘Fekratek Sherkate’ administers these programs, including Falak.

Bedaya, founded by Egypt’s General Authority for Investment and Free Zones, is an incubator that offers funding as well as office space, networking opportunities and manufacturing zones to startups. The incubator’s ‘Bedaya Fund’ provides financing opportunities for startups in the food, agricultural, manufacturing, services, and information technology sectors.

TIEC, or Technology Innovation and Entrepreneurship Center is another government incubator that funds startups in the information and communication technology sector, as part of the government plan to develop the country’s communication infrastructure.

Tech Leads the Way

Technology is the hottest startup sector in Egypt, with the country poised to lead the way for tech innovation in the Middle East and Africa, a Business Insider report earlier this year said. However, issues with the country’s economy, which has been struggling in the wake of the Arab Spring crises, and the ouster of leader Hosni Mubarak, a generally weaker currency versus the U.S. dollar, and complex bureaucracy make it hard for startups to operate efficiently. Several companies have been forced to relocate to Germany, Dubai, China or the Cayman Islands inorder to take some of the pressure off.

Bootcamps and Events Make Connecting Easier

Events give startups an important opportunity to network, connect and learn from experts and investors around the world.

Egypt has several annual events that help put regional startups on the global map - RiseUp Summit - biggest in the country, Vested, and the Techne Summit, held in Alexandria, are some of the must-attend gatherings.

Techne Summit, in fact, returns for its fifth edition in Alexandria, Egypt, at the end of the week, with topics of discussion ranging from healthtech, e-commerce, and fintech, to retail, marketing and media technology, among others.

The event, slated for September 28 to September 30, will feature the launch of a network comprising angel investors from across the Mediterranean region, called ‘Mediterranean Business Angel Investment Network’, or Med Angels. Investors from France, Greece, Tunisia, Morocco, Egypt, Lebanon, Slovenia, Croatia, among others, are already a part of the network, which aims to “facilitate cross border investing among participating member networks,” as per its press release.

The Med Angels platform claims it will help connect more than 100 networks with nearly 10,000 angel investors, across 24 countries.

Featuring also for the first time will be a global startup competition, called ‘Startup World Cup’ - a competition for seed-stage startups, the winner of which will get a chance to win $1 million, and an entry into the final round in Silicon Valley.

Speakers at the event include Egypt’s Minister of  Communications and Information Technology Amr Talaat, AUC Venture Lab’s director Ayman Ismail, Hadeer Shalaby, regional director of Careem Bus, and representatives from Citibank, Mastercard, AXA, Unilever, IBM, Praxis, Microsoft, and Central Bank of Egypt, among others.

On The Agenda

The 2019 event features several satellite events, or side events, such as air yoga, educational sessions on social media management, Cloud services management etc, at various locations in Alexandria

The main event is replete with workshops on product design, company incorporation procedures, legal issues relating to startup investing, fireside chats on technology and building hospitals of the future, pitching competitions for startups, and 1-to-1 meetings.

Event-goers will also be able to take part in several competitions based on specific themes, or sectors, such as healthcare, women in tech, and fintech companies tackling financial inclusion, payments and SME lending, to name a few.

Techne Summit kickstarted in Egypt in 2015, and, as of 2018, had hosted over 6,000 participants, 130 speakers, 230 startups, and 80 investors from more than 25 countries.

source: Entrepreneur

Investing in startup companies is a very risky business, but can be very rewarding if and when the investments do pay off.

The rise of mobile technology and innovations, such as cloud computing, the sharing economy, and bitcoin, has helped to spur this latest round of tech entrepreneurship.

The majority of new companies or products simply do not make it, so the risk of losing one's entire investment is a real possibility.

The ones that do make it, however, can produce very high returns on investment.

Stages of Startups

Startup companies are those that are just in the idea phase.

They do not yet have a working product, customer base, or revenue stream. These new companies can fund themselves by using founder's savings, by obtaining bank loans, or by issuing equity shares.

Handing over seed money in return for an equity stake is what comes to mind for most people when thinking about what it means to invest in startups.

It is estimated that, worldwide, more than a million new companies are formed each year.

The first money obtained by these companies is usually that of founders, friends, and family (FF&F), known as seed money or seed capital.

These sums are generally small and allow an entrepreneur to prove that his or her idea has a good chance of succeeding.

During the seed phase, the first employees may be hired and prototypes developed to pitch the company's idea to potential customers or later investors.

The money invested will be used for activities like performing market research.

Once a new company moves into operations and starts collecting initial revenues, it has progressed from seed to bona fide startup. At this point, company founders may pitch their idea to angel investors.

An angel investor is usually a private individual with some accumulated wealth who specializes in investing in early stage companies. Angel investors are typically the first source of funding outside of FF&F money.

Angel investments are typically small in size, but angel investors also have much to gain because at this point the company's future prospects are the riskiest. Angel money is used to support initial marketing efforts and move prototypes into production.

At this point, if the company is starting to grow and show promise, it may seek venture capital (VC) funding.

Founders will have developed a solid business plan that dictates the business strategy and projections going forward. Although the company is not yet earning any net profits, it is gaining momentum and reinvesting any revenues back into the company for growth.

Venture capital can refer to an individual, private partnership, or pooled investment fund that seeks to invest and take an active role in promising new companies that have moved past the seed and angel stages. Venture capitalists often take on advisor roles and find a seat on the board of directors for the company. Venture capital may be sought in additional rounds as the company continues to burn through cash in order to achieve the exponential growth expected by VC investors.

Investing in Startups

Unless you happen to be a founder, family member, or close friend of a founder, chances are you will not be able to get in at the very beginning of an exciting new startup. And unless you happen to be a wealthy, accredited investor, you will likely not be able to participate as an angel investor. Today, private individuals can take part to some degree in the venture capital phase by investing in private equity funds that specialize in venture capital funding, allowing for indirect investment in startups.

Private equity funds invest in a large number of promising startups in order to diversify their risk exposure to any one company. According to recent research, the failure rate for a venture fund portfolio is 40%-50% in a given year, and 90% of all companies invested in will not make it beyond the ten year mark. The notion that only one in ten venture capital investments will succeed is now industry expectation. The 10% of companies that do make it big can return many thousands percent to investors.

Typical venture deals are structured over ten years until exit. The ideal exit strategy is for the company to go public via an initial public offering (IPO), which can generate the out-sized returns expected from taking on such risk. Other exit strategies that are less desirable include being acquired by another company, or remaining as a private, profitable venture.

A prime example is Google (GOOG), which launched as a startup in 1997 with $1 million in seed money from FF&F. In 1999, the company was growing rapidly and attracted $25 million in venture capital funding, with two VC firms acquiring around 10% each of the company. In August 2004, Google IPO'd, raising over $1.2 billion for the company and almost half a billion dollars for those original investors, a return of almost 1,700%. 

Risk as well as Reward

These large return potentials are the result of an incredible amount of risk inherent in new companies.

Not only will 90% of VC investments fail, but there is a whole host of unique risk factors that must be addressed when considering a new investment in a startup.

The first step in conducting due-diligence for a startup is to critically evaluate the business plan and the model for generating profits and growth in the future.

The economics of the idea must translate into real world returns. Many new ideas are so cutting edge that they risk not gaining market adoption.

Strong competitors or major barriers to entry are also important considerations. Legal, regulatory, and compliance issues are also important to consider for brand new ideas, such as the regulatory hurdles now facing startups Airbnb and Uber.

Many angel and VC investors indicate that the personality and drive of the company founders is just as, or even more important than the business idea itself.

Founders must have the skill, knowledge, and passion to carry them through periods of growing pains and discouragement.

They also have to be open to advice and constructive feedback from inside and outside of the firm.

They must be agile and nimble enough to pivot the company's direction given unexpected economic events or technological changes.

Other questions that must be asked are, if the company is successful, will there be timing risk? Will the financial markets be friendly to an IPO in five or ten years down the road? Is the company going to have grown enough to successfully IPO and provide a solid return on investment?

The Bottom Line

Investing in startups is not for the faint of heart. FF&F money can easily be lost with little to show for it.

Investing in venture capital funds diversifies some of the risk but also forces investors to face the harsh reality that 90% of companies funded will not make it to IPO.

For those that do go public, the returns can be in the thousands of percent, making early investors very wealthy indeed.

source: investopedia

Raising capital is one of the biggest challenges any startup can face, but fortunately, entrepreneurs have more than one option for getting the funding they need. 

Seeking out angel investors has its advantages, but crowdfunding is redefining how fledgling companies get off the ground.

Both have their pros and cons, and it's important to understand how they can impact your startup's long-term outlook before diving in.

Funding a Startup With Angel Investors

The typical angel investor is a high-net-worth individual who has an interest in helping new companies expand.

 These accredited investors provide startups with seed money in exchange for an equity stake in the company.

The idea here is that once the company becomes profitable, the angel investor can sell their shares for a profit.

Angel investors can operate independently or as part of a larger investment group, sometimes known as a syndicate. In terms of how much money angel investors can bring to the table, it's not unusual for a typical investment to range from $25,000 to $100,000.

In some instances, angel investors may be willing to part with even larger sums to assist a startup.

• Angel funding is not a loan. Taking out a small business loan is another way to fund a startup, but it creates a legal obligation to repay what's borrowed. Angel investors, on the other hand, don't expect the money to be repaid. Instead, they're banking on the company increasing in value over time.
• Angel investors can provide more than just money. Angel investors are often established business owners themselves and they have years of experience working with startups. In addition to providing the financial backing you need to get your venture up and running, angel investors will often share their expertise, which can be invaluable to the business's long-term success.
• Angel investors are risk-takers. An unfortunate truth is that the vast majority of startups will fail to become sustainable and from an investor perspective, they're extremely risky.
• Without a solid track record, obtaining a bank loan or getting funding through a venture capitalist can be all but impossible. Angel investors, on the other hand, understand the implied risks, and they're willing to put their own money on the line to support a startup's growth.

• There may be more pressure to succeed. While the desire to help new businesses succeed plays a part in angel investors' decisions, it's not the only motivator at work.                                                                                   They also want to see their investment pay off in a tangible way. That can turn up the heat on startups to churn out a solid rate of return.
• Angel investors aren't hands-off. As mentioned earlier, angel investors receive a certain amount of equity in exchange for providing funding to a startup. Not only are you handing over a set percentage of the business's future profits but you're also sacrificing a certain amount of control concerning decision-making. That can be problematic if conflicts arise surrounding the angel investor's role in business operations.

Using Crowdfunding to Raise Capital

• Funding doesn't have to be equity-based. While startups can use equity to attract investors through a crowdfunding platform, it's not always necessary to give up any ownership control in the company to raise capital. Some platforms allow you to to use a rewards-based approach to generate funding. For example, if your startup centers on creating a specific product, you may make that product available to your investors before rolling it out the general public.
• Attracting investors may be easier. Bringing angel investors on board can be a time-consuming process because it typically involves pitching your startup's concept multiple times. Crowdfunding platforms, on the other hand, streamline the process by allowing startups to post their pitch in one spot where it can be viewed by a broad range of investors.
• Crowdfunding can increase visibility. Marketing can eat up a large part of any startup's budget but using a crowdfunding platform to raise funds is a low-cost way to spread the word. When a crowdfunding campaign is funded relatively quickly, it sends the message that the startup is one to watch.                                                       That can increase the brand's visibility and help to attract additional investors for subsequent funding rounds.

Fundraising is not unlimited. While $1 million may seem like a substantial amount of money, it may not go very far for some startups. Companies that require more funding may have to turn to angel investors or loans to fill the gap once they've exhausted the crowdfunding cap.

• Fees can be expensive. Crowdfunding platforms are focused on connecting investors with startups, but they're also in business to make money. Startups who use these platforms can expect to pay anywhere from 5% to 10% in fees to raise the money they need, which can detract from the amount of capital they have available.

The Bottom Line

Angel investing is a good option for startups to raise large amounts of capital without being constrained by the requirements that go along with taking out a loan. The main disadvantage, however, is the fact that it requires trading off a certain amount of ownership in the company. While rewards-based crowdfunding offers a work-around to that dilemma, the fees can quickly add up. Weighing the loss of equity against cost can make it easier for startups to decide which option is best.

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 source: investopedia