Young Entrepreneur Council (YEC) » Business

43 Troubling Facts About the Youth Unemployment Crisis

Scott Gerber — Tue, 15 May 2012 17:51:23 +0000

Placer Graduation 2008 © by Nick Ares (2008)

The class of 2012 is graduating from community colleges, four-year colleges and universities all across America this month. When they toss their caps in the air, I suggest you duck — because this graduating class has a lot to protest. While overall U.S. unemployment has dropped to about 8 percent — in part because many Americans have simply given up looking for work — recent college grads face a much more dismal reality: one out of every two was either jobless or underemployed in 2011.

To combat this epidemic, the Young Entrepreneur Council recently launched the national #FixYoungAmerica campaign. In April, we held a #FixYoungAmerica rally on 300+ college campuses in all 50 states, in which tens of thousands of students participated, and this week, we released #FixYoungAmerica: How to Rebuild Our Economy and Put Young Americans Back to Work (for Good) a book of essays written by nonprofit founders, educators, politicians and entrepreneurs who shared their own entrepreneurial solutions for ending the youth unemployment crisis in America. Unfortunately, throughout the campaign, what we’ve really uncovered is just how bad chronic unemployment really is for young people right now, including college grads. The fact is, young Americans need all the help they can get, and they need it now.

What’s the class of 2012 up against? Take a look for yourself:

1 out of 2 college grads — about 1.5 million, or about 53.6 percent, of bachelor’s degree holders age 25 or younger — were unemployed or underemployed in 2011.
Fewer than half of college grads from the class of 2008 to today found jobs within a year of graduation — down from 73 percent.
For high school grads (age 17-20), the unemployment rate was 31.1 percent from April 2011-March 2012; underemployment was 54 percent.
For young college grads (age 21-24), unemployment was 9.4 percent last year, while underemployment was 19.1 percent.
3 in 5 young college grads are unemployed or underemployed in the Mountain West region of the United States. The next-worst regions for being a young college grad looking for work? The Southeast and Pacific regions.
The share of employed young adults (aged 18-24) is at a 60-year low. It has dropped to 54.3 percent — the lowest level since government began tracking it in 1948.
The unemployment rate for young Americans under 25 is twice that of the general population.
Only 56 percent of American teenagers believe they’ll be as well off as their parents financially– a 37 percent drop since 2011.
Only 1 in 5 college grads thinks their generation will be more successful than the generations before them.
Only 18 percent of American teens say they’ll be financially independent when they turn 20 — compared to 44 percent in 2011.
The 15-percentage-point gap between young and working-age adults right now is the widest in recorded history.
While overall unemployment is around 8 percent, 29.1 percent of young male veterans and 36.1 percent of young female veterans age 18-24 were unemployed 2011—compared to 17.6 and 14.5 percent, respectively, of nonveteran young men and women.
Young American women still earn less than young American men, regardless of their educational background.
According to some researchers, up to 95 percent of job positions lost occurred in low-tech, middle-income jobs like bank tellers. Gains in jobs are going to workers at the top or the bottom, not in the middle.
More college graduates are getting low-level jobs, period. U.S. bachelor’s degree holders are more likely to wait tables, tend bar or become food-service helpers than to be employed as engineers, physicists, chemists or mathematicians combined — 100,000 versus 90,000.
More recent grads are working in administrative jobs than in all professional computer jobs out there — 163,000 versus 100,000.
More college grads are cashiers, retail clerks or customer representatives than engineers — 125,000 versus 80,000, to be exact.
Of young Americans aged 18-34, half have taken a job they didn’t want in order to pay bills.
Of young college graduates from the class of ’08 to today, four in 10 took jobs just to get by.
24 percent of young Americans aged 18 to 34 said they took an unpaid job for work experience.
According to new U.S. government projections, only three of the 30 occupations with the largest projected number of job openings in the next eight years will require a bachelor’s degree or higher. Most job openings by 2020 will be in low-wage professions like retail sales, fast food and truck driving.
More than 35 percent of young Americans went back to school because of the economy.
31 percent of young Americans postponed getting married or having a baby due to their financial situation.
Since 2006, 40 percent of college grads have put off major purchases like buying homes or cars.
One in four young Americans moved back in with their parents AFTER living on their own.
Median earnings for young African Americans are only 75 percent of the earnings of whites. For young Latinos, the number is even lower — 68 percent.
Between 2000 and 2011, the wages of young high school grads declined by 11.1 percent; of young college grads, 5.4 percent.
Almost half — 41.3 percent — of 25 to 34-year-old young Americans spend more than 30 percent of their income on rent every month.
The majority of recession-era college grads rely on financial help from their families.
Credit card debt has risen 81 percent among young Americans aged 25-34 since 1989.
The student loan default rate rose 31 percent over just two years.
Student loan debt is reaching debt-bubble proportions — it recently topped $1 trillion (and exceeds total credit card debt in the United States).
Two out of three college students now graduate with student loan debt. Average tuition is three times higher today than in 1980.
Average student loan debt is now more than $25,000.
African American students are more likely to take out student loans and graduate, on average, with higher levels of debt.
Federal student loan default rate is 8.8 percent and projected to rise.
Although 92 percent of young Americans aged 21-24 said they felt entrepreneurship education was vital given the realities of the new economy and job market, more than half (56 percent) were never offered entrepreneurship classes at all.*
Most — 62 percent — students who were offered entrepreneurship classes said they didn’t feel the classes prepared them enough to start a business.*
Of employed young Americans aged 18-34, less than half think they have the education and training they need to get ahead in their jobs today.
More than 53 percent of U.S. companies say they’re having trouble finding skilled non-managerial employees, in spite of the high number of unemployed Americans.
72 percent of youth said they do not feel they have enough support from banks, up from 65 percent in 2010.*
86 percent of recent grads feel they do not have enough support from the government (YEC/Buzz 2011).*
Finally, 52 percent of young Americans 18-29 feel the U.S. is headed in the wrong direction.

*Data is from the 2011 Youth Entrepreneurship Survey conducted by Buzz Marketing Group and the Young Entrepreneur Council (of young Americans ages 21-24).

Scott Gerber is a serial entrepreneur, internationally syndicated columnist and TV host, and the founder of the Young Entrepreneur Council. He is also an active angel investor and author of the book Never Get a “Real” Job.

The Young Entrepreneur Council (YEC) is an invite-only nonprofit organization comprised of the world’s most promising young entrepreneurs. The YEC recently published #FixYoungAmerica: How to Rebuild Our Economy and Put Young Americans Back to Work (for Good), a book of 30+ proven solutions to help end youth unemployment.

How to Embrace Your Quirks (and Attract Better Clients)

Steph Auteri — Mon, 14 May 2012 11:00:40 +0000

Zooey Deschanel © by Genevieve (2012)

I’ve been writing about sex for almost as long as I’ve been having it, starting with a college internship at the Boston Phoenix in 2003 (I was a late bloomer). Back then, I didn’t expect to eventually settle into that niche so thoroughly. But here we are, nine years later, and I still write about sex for a living.

For the longest time, I operated as if my brand was split. When I first entered the professional realm, for example, I worked full-time at an academic book publisher. The sex writing, meanwhile, was a sorta-secret side hobby I did in my free time.

Then I went full-time freelance. I was able to devote more time to my writing, and editors were just begging for open and honest sex content that didn’t take itself too seriously. But when I decided to diversify and launch a career coaching company for publishing professionals, I struggled with how to create a cohesive platform.

“Does your sex writing turn off potential coaching clients?” people asked me. I told them I wouldn’t want to work with anyone who was turned off by that aspect of my life. I told them that most of my clients chose me because of my unconventional background. I even mentioned that sex writing and coaching had a lot in common, in that I used humor and honesty as a means of connecting with both my clients and my readers. All of this was true, but it was still tough to market those two sides of myself simultaneously.

Then I took a good, hard look at the mix of work I was doing and asked myself: How can I make my professional brand more integrated and awesome? I realized I would have to embrace my sex writing roots more fully.

I began scaling back on the time I spent marketing my coaching business, and started promoting myself as a ghostwriter, editor, and consultant to mental health professionals, activists and educators specializing in sexual health. I saw it as a way to continue doing the writing I enjoyed while still helping others. I even began writing a prescriptive memoir about being a sex writer with sexual dysfunction. Suddenly, things felt a lot less Jekyll and Hyde.

Basically, I used my more unconventional experience to set myself apart as a professional. You can (and should) do the same. It’ll give you that extra je ne sais quoi that will help you stand out from the other business owners in your niche. How?

The first thing you need to do is pinpoint what sets you apart from others in your field. So what makes you an original? If you’re not sure, ask yourself:

What do you love to do in your spare time? What would you spend your time doing if you didn’t have to worry about the bills?
What do you naturally do well?
What have been your greatest achievements? What heart-exploding accomplishment do you brag about the most?
What do you want to be remembered for?
What do other people consistently ask you for advice on?

Remember to ask other people where your strengths lie, too. You might be surprised by what others see in you.

Then, use this information to figure out a new way of describing yourself to others. For example, instead of introducing myself as a career consultant who sometimes writes about sex, I now present myself as someone who does content marketing and consulting for sexual health professionals.

Of course, it can be tough to draw a line between the personal and the professional when you’re using your personal life as a means of defining your career. So turn inward again and ask yourself: Who is my ideal client? Who do I want to be working with? What do I feel comfortable sharing with them?

Everyone who falls outside the vision of your ideal client — someone who doesn’t judge your hoop-dancing side hobby or your funeral-singing side gig but instead eats it up — well, they can go and hire that other copywriter/web developer/publicist/service provider. The one who’s nothing like you.

Steph Auteri is the founder of Word Nerd Pro, a one-stop word nerd shop offering a variety of writing, editing, and coaching services. She has been published in Playgirl, Time Out New York, Nerve, The Frisky, and other bastions of fine writing.

Can You Handle Working at a Startup?

The Young Entrepreneur Council (YEC) — Fri, 11 May 2012 11:30:51 +0000

Question: How can I determine if I have what it takes to work at a startup? What one quality do I need to have?

Question by: Rachel

Can You Roll With the Punches?

"Working at a startup means being comfortable with wearing many hats. Unlike bigger organizations, small companies require more flexibility and creativity. If you prefer to work in an environment where there are set positions and goals, then a larger company may be more appropriate. However, if you enjoy dynamic and constantly evolving experiences, then working at a startup could be a good fit!"

- Alexandra Mayzler | Founder and Director, Thinking Caps Tutoring

Follow @ThinkingCapsusa

Endless Motivation

"It's hard to constantly be motivated on what you're working on. Sometimes you just want to take a long break or work on something else temporarily, but it's crucial to stay motivated. The more persistent you are, the greater the chance of success for your startup."

- Ben Lang | Founder, EpicLaunch

Follow @entrepreneurpro

The Hunger to Learn

"If you are on your own, never stop learning. Use everything that happens to you as a learning experience. Use failure that occurs on your path to success as a case study to further improve your business. Continue to sharpen your skill sets and broaden your knowledge base. Never stop learning and never let someone tell you that something can’t be done or you can’t do it. Make things happen."

- Jay Khor | Managing Partner, Versutia_ LLC

Follow @jwkhor

Tolerance of Ambiguity

"When you're involved in starting a company, things change rapidly. What you're doing one day could be completely different the next. This is the biggest difference between startup and corporate culture. Expect to do things outside of your job description and move quickly."

- Nicholas Tart | Founder, 14 Clicks

Follow @14clicksNick

Love of the Circus

"A startup is like a traveling circus, where everyone has a specialty but everyone is also willing to do what needs to be done to get the show unloaded, running smoothly, and then packed up again at the end of the day. Being involved in a startup requires being equally willing to manage, code, consult or empty the trash cans. Be willing, and you'll be golden."

- Colin Wright | CEO, Exile Lifestyle

Follow @colinismyname

Where's Your Drive?

"To work at a startup, one needs to be driven, self-motivated and enthusiastic. This is something I state in all of my job descriptions (even for internships) because I believe each employee needs to have these qualities. It’s also important to have an entrepreneurial spirit and be an independent thinker -- these qualities get you far in the startup world!"

- Heather Huhman | Founder & President, Come Recommended

Follow @heatherhuhman

Ability to Get Things Done

"In a startup, the ability to get things done is the most important quality to have, often with a minimum of resources, funds, and limited information. Being able to push forward, make decisions independently, learn quickly from your mistakes and adapt to constantly changing circumstances and information are qualities that every CEO seeks out."

- Matt Mickiewicz | Co-Founder, Flippa

Follow @sitepointmatt

Incredible Patience

"Things take time. A lot of time. Regardless of how fast you move, your customers and partners aren't nearly as invested in the business as you are. It's important to push as hard as you can, but if you can't deal with waiting, entrepreneurship will be a frustrating experience."

- David Adelman | Founder and CEO, Reel Tributes

Unmatched Perseverance

"Perseverance is a word that summarizes exactly what it takes to be a startup entrepreneur. It means commitment to your company, hard work, patience, and having endurance. Startups are extremely hard and stressful, so if you don't have perseverance, it's going to be impossible for you to be successful."

- Dan Schawbel | Founder, Millennial Branding

Follow @DanSchawbel

Dedication Is Key

"Startup life is only for those with the right mixture of perseverance, initiative, resiliency, and vision. If you have a glamorized view that you’ll spend a few months building a website and then strike it rich, you’ll soon be handed a reality check. Be prepared for the fact that the hours are going to be long and your social life will be nonexistent for a while. Be ready to commit 100 percent."

- Robert Sofia | Co-Founder & COO, Platinum Advisor Marketing Strategies, LLC

Follow @robertsofia

True Grit

"You need to have passion. There is no specific DNA that makes up a specific role in a startup or to be an entrepreneur. If you’re passionate about what you’re doing, there shouldn’t be anything that can get in your way."

- Ryan Holmes | CEO, HootSuite

Follow @invoker

Teamwork Is a Must

"Every successful entrepreneur requires the ability to be a team player. You cannot do everything on your own, so make sure you are willing to share tasks or take on someone else's project. It will help you get through the long hours, and when you hit a goal, you do it as a team."

- Bobby Emamian | CEO, Prolific Interactive

13 Creative Ways to Generate Extra Revenue

The Young Entrepreneur Council (YEC) — Fri, 04 May 2012 11:30:39 +0000

Question: What alternative revenue streams do you use to keep your business afloat during rough patches?

Question by: Frank

Get Creative With Coaching

"Are you an expert in something? I'm guessing so. Take your knowledge and develop a coaching/training service for additional revenue. Hold a free workshop to get the word out and so that people trust you, then offer one-on-one sessions, webinars, or handbooks so customers can get your knowledge."

- John Meyer | Brofounder/CEO, 9 Clouds

Follow @johntmeyer

Can You Consult?

"Complementary brands occasionally tap us for information on how we accomplish various goals. When time and work flow permits, we supplement our revenue by privately working with select clients."

- Lisa Nicole Bell | CEO, Inspired Life Media Group

Follow @LisaNicoleBell

Diversify Your Portfolio

"As any financial advisor would tell you, the best thing to do is to diversify your portfolio, and the same is true in business. Create different packages of service offerings to appeal to a wider audience. Especially in a difficult economy, people love to see proposals that have a list of different packages that they can customize to their budgetary needs."

- Kris Ruby | President, Ruby Media Group

Follow @sparklingruby

Get With Google AdSense

"Add Google AdSense to your website in order to leverage your existing web traffic to create a constant revenue stream. This will keep you website generating revenue, regardless if the visitors are buying your product/service. Make sure you monitor and remove direct competitors from appearing on your AdSense listings."

- Anthony Saladino | Co-Founder & CEO, Kitchen Cabinet Kings

Follow @cabinetkings

Affiliate Marketing

"Across many of our web properties, we are able to generate additional income by becoming an affiliate with some of the products and services we recommend. If the product is a good fit for our audience, we receive a commission if they buy. This not only diversifies our income but it also provides additional cash flow at little to no cost. In many cases, we would recommend the product anyways."

- Nick Reese | Cheif Executor, Microbrand Media

Gift Cards and Discounts

"With bars, our customers come in and spend money on the spot. So we try our best to give the best customer service and entertainment to get the most out the customer. But sometimes, we hit slow patches in the seasons and need more revenue and fast. At times like this, we offer discounted gift cards and offers with expiration dates, strategically picked to not affect our busy times."

- Michael Sinensky | Owner, Village Pourhouse

Go B-to-B and B-to-C

"The primary focus of my company is offering time coaching to individuals, but since the coaching works, those business-to-consumer contracts come to an end. I've found that also having some recurring monthly "retainer" contracts with a few businesses help to bring in more consistent cash flow."

- Elizabeth Saunders | Founder & CEO, Real Life E®

Follow @RealLifeE

Monetary Mentorships

"I love to help younger writers and entrepreneurs get a glance into what their possible career might look like. I use Vocation Vacation to give people a week in the life of a writer. It is a win-win because they get to see what their career choice might be like, and you get to supplement revenue with a fun mentorship."

- Vanessa Van Petten | CEO and Author, Science of People

Follow @vvanpetten

Real Estate Is Real Money

"I always have my pulse on the real estate market and invest in trustee sales and trust Deeds. Done correctly, investing in distressed assets (the resulting opportunity of this economic downturn) can provide steady cash flow with a good-sized upside, five to ten years down the road."

- Kent Healy | The Uncommon Life

Follow @Kent_Healy

Sell Your By-Products

"One way to generate extra revenue is to sell the by-products your company makes. Is there anything of value that is produced while making your product or service? For example, to bootstrap our startup, we had to learn online marketing and social media. We became very good at getting noticed online. We therefore started a side business -- selling online marketing services to small businesses."

- Kwame Kuadey | CEO & Founder, GiftCardRescue.com

Follow @@kwamekuadey

Speak and Write for Life

"You would be really surprised at what it pays to be an expert in the industry your startup operates in. When you add up consulting, speaking gigs, guest writing, etc. this can account for a considerable amount of additional revenue. This also isn't short-term thinking, as being an expert in your industry will always be in your favor, even after your business gets out of its rough patch."

- Derek Johnson | CEO/Founder, Tatango

Follow @@thederekjohnson

Author It All

"I’ve written several books and eBooks based on my expertise as a career expert and hiring manager. It’s important to develop products that can continue to generate revenue without much ongoing work to keep your business afloat during rough times."

- Heather Huhman | Founder & President, Come Recommended

Follow @heatherhuhman

Create Cross-Promotions

"When times get tough, working with complementary businesses can be beneficial to getting some extra sales and affiliate income. Running a cross promotion and delivering their marketing messages to your customer list -- and vice versa -- is a great way to increase your revenue."

- Lucas Sommer | Founder CEO, Audimated

Follow @audimated

How to Get Noticed in the Fashion Industry

The Young Entrepreneur Council (YEC) — Wed, 02 May 2012 11:30:39 +0000

Question: I run a fashion company. What advice/tips do you have for standing out in such a competitive landscape?

Question by: Lara

Break Into Blogging!

"My best advice for standing out in a competitive landscape in the fashion industry? Blog and define your personal brand and voice. Share your favorite trends/styles and advice on how to obtain the desired "looks." Build a Twitter following and start sharing your blog posts. Use sites like We Heart It to spice up your blog posts with fashion forward photos that will help you stand out!"

- Kris Ruby | President, Ruby Media Group

Follow @sparklingruby

Show Your Work

"If you sell online, invest in good photography and shopping cart tools to help your customers see the product well. Making sure your customers trust your site and visually understand the product gives them buying confidence. Zoom features, large photography and multi-angle shots can be costly, but they lend both sophistication and legitimacy to your brand. Let your customers see your hard work."

- Rochelle Behrens | CEO and Founder, The Shirt by Rochelle Behrens

Follow @TheShirtbyRB

Develop an Attitude

"The most interesting and unique fashion brands have an attitude. They aren't just selling threads; they're selling a lifestyle. Identify who your customer is and what they believe in. Create a line that complements their lifestyle and underscores who they perceive themselves to be. Brands like TOMS, Urban Outfitters, and Christian Louboutin have done a great job of this."

- Lisa Nicole Bell | CEO, Inspired Life Media Group

Follow @LisaNicoleBell

Quality, Price and Style

"While the fashion industry is very competitive, and is often flooded with product, the truth is, customers are more than happy to buy more than one of the same thing from different brands. What you're offering can differentiate in a few ways, such as quality, price, or style. Some people will only buy high quality clothes, others are real bargain hunters, and some buy any clothes that are stylish."

- Danny Wong | Co-Founder, Blank Label Group, Inc.

Influence the Influencer

"Find out who your market is for your fashion and then find out who they admire. Who is their most popular icon or celebrity? Get them to wear your clothes and endorse your style. This does not have to be complicated -- many times, you just have to ask and send them free clothes, just be sure to get a picture. Place your product at key events and movies so the star can start a trend."

- Louis Lautman | Founder, Young Entrepreneur Society

Follow @louislautman

Listen and Learn

"It sounds simple, but by genuinely listening to your audience and making them part of your decision-making process is key to your success. Fashion designer Rebecca Minkoff has leveraged this strategy -- along with filling a void in the market -- to launch her career to new heights in just a few short years."

- Ryan Stephens | Founder, Ryan Stephens Marketing

Follow @Ryan Stephens

Go Off the Beaten Path

"In fashion, you have your major hubs like New York, Milan and Paris, where many people are thinking along the same lines. By traveling to some place exotic -- like Indonesia or Kenya, for instance -- you'll see extremely different styles and looks that can provide the inspiration needed to design something unique and outside of the mainstream."

- Sean Ogle | Chief Adventurer , Location 180, LLC

Follow @seanogle

Create the Right Content

"There are only two fashion labels I follow, and I keep up with them because of their fantastic newsletter and blog, respectively. I look forward to what they send out and support them with my purchases because of the fantastic content they write and the sheer personality they infuse it with."

- Thursday Bram | Consultant, Hyper Modern Consulting

Follow @ThursdayB

Become a Thought Leader

"Because fashion is such a broad (and competitive) industry, you need to determine your particular audience and niche. Once you have a specific focus, work toward becoming a thought leader and influencer in that niche through sharing relevant content via social media, answering questions on Q&A sites like Quora, networking, blogging, etc."

- Heather Huhman | Founder & President, Come Recommended

Follow @heatherhuhman

Do What Your Competitors Don't

"Look at how all the other fashion companies, blogs, websites and brands are operating, and pick up the slack that they leave behind. Everyone has great designs and creativity, but does everyone have great customer service, delivery time and professionalism? Stand out in the spaces they do not already occupy, and own them."

- Lucas Sommer | Founder CEO, Audimated

Follow @audimated

Where's Your Laser Focus?

"Focus obsessively on a small part of the market. Once you do that, expand your reach. Stand for something, or stand for nothing. Think you're focusing enough? Try focusing even more! It'll pay off."

- Adam Gilbert | Chief Body Tutor, My Body Tutor

Dread Making Sales? A To-Don’t List for Selling More

Neil Patel — Wed, 02 May 2012 11:00:55 +0000

01 (161) © Victor1558 (2012)

Do you want to get good at sales? Because if you do, there is a lot of money to be made. But I need to first teach you what not to do. If you want to make money through selling, you don’t have to be a great salesperson, you just need to avoid these common mistakes:

Don’t forget to qualify

Before you can sell, you have to find someone to sell to. Whether it’s someone coming to you or finding someone to sell to, you have qualify your potential customer. If you forget to do the qualifying step, a large percentage of your time will be wasted on potential customers who don’t really need or can’t afford your offering.

Every opportunity isn’t equal. Through qualifying, you’ll get a better understanding of what each customer wants, when they want it by, what their budget is, and if you’re talking to the person who can actually make the decision. If you aren’t sure how to qualify people, ask them simple questions: What are you looking for specifically? What’s your budget? When are you looking to start?

Don’t be a “yes” man

When a potential customer makes a request, you’re naturally going to want to say “yes.” And once you say “yes” a few times, you’ll realize you’re walking on a slippery slope — the customer will keep making requests, and each one will not only cost you money, but it will let the customer know that they can be demanding and walk all over you.

If you can do what a customer wants and it is profitable for you, say yes. If the request is unreasonable, say no. By setting this precedent early on, you’ll have more happy customers.

Don’t offer too much information

Learn to get your message out in a quick and concise way, as it will be easier to understand. Trying to look smart by using sophisticated language or talking in technical jargon is just dumb!

When pitching customers, make sure you only tell them what they need and want to know. I’ve found that when you tell them more than they want to know by trying to throw in something that’s mind blowing, you’ll only sometimes increase the likelihood of closing the deal. But in most cases, you’ll just bore them to death. People have short attention spans, so be careful about dragging things on.

Don’t over sell

Think of sales like dating — if you reek of desperation, no one will be attracted to you. Be casual with your sales techniques and act like you don’t care. At the end of the day, if your product or service is that good, the person you are selling to should be privileged to use it!

However, creating a sense of urgency can help close the deal without it seeming like you’re overselling. For example, when I had a consulting company, I would always give potential prospects tight deadlines to decide. When using this tactic, my close ratio went up by over 50 percent. But at the same time, don’t use this unless it’s true, as lying to potential customers is a bad way to start a working relationship.

Don’t lose sight of the goal

You’re in sales meetings to make sales, right? So why would you waste your time chatting about random topics with a potential customer? You don’t have people’s undivided attention forever, so make sure you are keeping track of time and you get your message across as quick as possible. If you have spare time after that, you can chat about common interests to help build a stronger connection, but you shouldn’t do that until you get all of your major points across and have the person on the hook.

Don’t delay your sales

If your product or service isn’t ready, you’ll have a tendency to not sell until it’s ready. You can’t predict when things are going to be ready and, chances are, there will be delays.

Why not start selling now? You don’t have to deliver your product or service right now; you can give them access in the future. And by having them sign up now, offer a discount to entice them. What I like doing is to close the sale ahead of time and tell companies how there is a 30 to 60-day implementation time frame, as this buys me time. This works really well in a service-oriented business.

Don’t talk past the sell

After you close a deal, stop talking. I’ve seen people lose deals because they keep talking after the potential customer is ready to convert. They say something stupid, making that person think twice. Learn to keep your mouth shut after someone tells you they want to be a customer. If you can’t, chat about random, neutral subjects.

Neil Patel is the co-founder of two Internet companies: Crazy Egg and KISSmetrics. Through his entrepreneurial career, he has helped companies such as Amazon, eBay, Expedia, Microsoft, Sun Microsystems, and Walmart make more money from the web.

10 To-Do Items When Pricing Your Product

The Young Entrepreneur Council (YEC) — Mon, 30 Apr 2012 11:30:59 +0000

Question: What are your best tips & strategies for coming up a price point for your product / service?

Question by: Tessa

Shoot for Simplicity

"Pricing communicates a tremendous amount to your prospective customer -- it has an effect before, during and after the sale. That is why creating a simple pricing structure that is easy to understand can a great impact on whether your final price point will resonate with customers in a positive way."

- Dmitriy Katsel | Founder, AdU Network

Survey the Market

"The most effective way to understand the value you offer is to talk with current or potential clients. Ask them what they need most from the product or service and find out how much they value it. Ask them how urgent and important the solution is and use their response to set a price."

- Lisa Nicole Bell | CEO, Inspired Life Media Group

Follow @LisaNicoleBell

What's the Customer Value?

"One of the most important things in pricing is creating strong value for your customers. If priced correctly, your customers think they are getting the best deal possible on a product they desperately need. Consider how much they pay for equivalent products, what they might pay a premium on, and how much of a premium they would pay for small extras."

- Danny Wong | Co-Founder, Blank Label Group, Inc.

What Do You Stand For?

"You need to figure out what you stand for -- best price or highest quality? One will dictate the price that you use. It is a good idea to know what is going on in the marketplace, but if you have the highest quality, you can be the most expensive -- you just need to justify it with that high quality. If you want to be the cheapest, just make sure you still have a margin."

- Louis Lautman | Founder, Young Entrepreneur Society

Follow @louislautman

No Such Thing as Overpriced

"If there's one thing I've learned about pricing our services, it's that there's no such thing as being "overpriced." The only way you fall into that category is if the value you provide doesn't line up with what you charge. Instead of focusing on price, focus on value, and providing a superior product/service to your clients. When value is perceived, price matters very little."

- Matt Cheuvront | Co-Founder, Proof Branding

Don't Stop Testing

"Determining price can seem like the greatest challenge, but it should be the greatest experiment. Talk to your customers, determine your value proposition, and continue to test. If you can drive $2 million in value, you can certainly charge $1 million. Get to that point!"

- John Meyer | Brofounder/CEO, 9 Clouds

Follow @johntmeyer

What Do You Need to Make?

"I recommend deciding on revenue and profit goals first. Then, work backwards and figure out how much you need to charge to meet your goals and cover your expenses, and the time involved in delivering the product or service. If that price is higher than you've been able to charge in the past, try expanding into higher-end markets or investing in sales training."

- Elizabeth Saunders | Founder & CEO, Real Life E®

Follow @RealLifeE

Try Tiered Pricing

"Always offer a free (or almost free) version of your product or service to give them a taste, plus a tiered pricing based on more flexibility, volume, and access. If they can upgrade/downgrade anytime -- no questions asked -- they will absolutely love you."

- Devesh Dwivedi | CEO, Breaking The 9 To 5 Jail

Follow @Break9to55Jail

Research Your Competition

"Call your competitors and ask for a quote from the services they offer to determine price points. That is the fastest easiest way to get a starting number. Ultimately, economics dictates what people are willing to pay, so that will also drive the final price paid for service. You definitely want fixed prices you stick to, but also should be flexible with long-term clients."

- Nick Friedman | President, College Hunks Hauling Junk

Still Strive to Break Even or Profit

"It can be difficult to put a price on something if you’re doing what you love. But, ultimately, you still need to break even or, preferably, make some profit. Survey past and potential clients to determine the value they put on your product or service, look at your competition, and determine how much your expertise is worth to get to a price point you’re comfortable with."

- Heather Huhman | Founder & President, Come Recommended

Follow @heatherhuhman

The Young Entrepreneur Council (YEC) is an invite-only nonprofit organization comprised of the world’s most promising young entrepreneurs. The YEC leads #FixYoungAmerica, a solutions-based movement that aims to end youth unemployment and put young Americans back to work.

Why You Need to Get Obsessed With Product Development

Erica Nicole — Wed, 25 Apr 2012 07:06:26 +0000

Product launches are one of the most exciting, challenging and rewarding processes known to entrepreneurs. If you want to grow a profitable company, then you need to realize the importance of product development and the behind-the-scenes iteration that makes it possible. Who knows? You may become obsessed with launching new ideas too.

What Is Iterative Product Development?

When you’re passionate about any aspect of business, that enthusiasm cultivates repetition. Repeating the product development process (iteration) is not unheard of for enterprise companies. In fact, iteration is what lies behind some of the world’s most successful brands.

If your bright idea sets the stage for a thriving company, imagine the possibilities of “genius on replay” — the consistent process of ideation to creation.

The longer you are in business — by choice or chance – the more likely iterative product development will become. For example, you may need to:

Retool your current product to add value.
Create brand extensions to grow market share.
Address competitive pressures via “new news” initiatives.

If you’re thinking, “Not me, my product is perfect as-is,” think again. How many versions of your smartphone currently exist? Does your wardrobe consist of solely slim-fit and low-rise denim from the same brand? In contrast, do you listen to broken records that play the same track? And wouldn’t it be shameful if your favorite theater only played one movie?

The truth is, your ability to develop new products, iterate and deliver on core competencies will significantly improve and diversify your business in the long run.

How to Launch Market-Leading Products

Not all ideas make it through the full product development process. But the ones that do have huge potential. Here are four tips to help you manage your development obsession and launch market leaders:

Stay true to your main objective. Does a new product support your primary business goal? All paths should lead back to your mission and support “why” you exist.
Clearly define requirements. Do you know everything it takes to create your new widget? Not likely. Start with speculation and end with consultation. Connect with specialists at each checkpoint to assess actual needs. For example, if your widget requires contract labor, set up site visits with manufacturers and learn how they can help you.
Document dirty details. Product launches generally focus on six core areas: ideation, concept testing, business analysis, market testing, production and commercialization. Your process may include some or all of these. Classify the details and streamline to increase efficiency.
Make it sellable, shippable, supportable and scalable. Identify the benefits and features of your product. Then, ensure that it’s ready for end users (i.e. no major functionality problems exist and the production process is clearly defined). Next, guarantee its supportability via quality assurance checks. And lastly, though you would be excited to sell 10 widgets, prepare to sell 10,000!

Erica Nicole is an accomplished serial entrepreneur, acclaimed small business expert, dynamic speaker, syndicated columnist, philanthropist and Christian thought leader. Erica leads a diverse business portfolio across digital media, national speaking, global business development, and electronic equipment industries. She is the CEO and founder of YFS Magazine: Young, Fabulous & Self Employed.

13 Tips for Writing Your First Professional Development Book

The Young Entrepreneur Council (YEC) — Mon, 23 Apr 2012 07:01:26 +0000

Question: I want to write a professional development book. What is your number 1 piece of advice for a first-time author?

Question by: Will

How Will Yours Stand Out?

"It's a popular niche, so you need to ensure that the book you write is going to stand out from the crowd and hold its own against what's already there. Before you even put (virtual) pen to paper, figure out why people should read your book instead of any other and identify what they'll get from doing so, that they can't get anywhere else. Once you've done that, just get writing!"

- Lea Woodward | Co-Founder, Startup Training School

What's Your Personal "Why?"

"I am sure you are very passionate about what you want to write. Take the time to figure out why you want to write the book. Just wanting to prove you can do it is different from really wanting to move units. Know your personal "why" and remember that writing a book is totally different from marketing and selling a book. I learned the hard way."

- Michael Bruny | International Speaker | Coach | Author, Ambassador Bruny.Com

Follow @AmbassadorBruny

Develop Strategies

"Work backwards. First, evaluate what your target market really wants and needs to hear. Then develop your book. As you begin working on your book, start positioning yourself as the go-to person on the subject matter. Write and speak about it as often as you can. Before completing your book, develop a plan for how you'll get it into the hands of people who need it."

- Lisa Nicole Bell | CEO, Inspired Life Media Group

Follow @LisaNicoleBell

Character Trumps Credentials

"Worry less about impressing us. Instead, describe the journey you've been on. What have you learned the hard way that you don't want others to suffer and struggle with? People love to learn from those who have an interesting story to tell. Or better yet, a story to identify with as their own. What's missing from the conversation, but you think really matters? Make that the gift of your book."

- Michael Margolis | President, Get Storied

Follow @getstoried

Ask Writers for Help

"If you're going to engage in something as difficult as authoring a book, make sure you have some help. Find a writing mentor like Carol Tice of MakeaLivingWriting.com and get them to support you as you write your book -- since writing a book is a very different skill from covering news stories and blogging."

- Danny Wong | Co-Founder, Blank Label Group, Inc.

Start Today!

"Stop talking and start writing today. It doesn't matter where you are in the process, but in order for your book to become a reality, you must begin. Make an outline of the chapters you want to include, then map out the main points in each chapter. This skeletal foundation is easy to do and will give you an outline for the rest of the book."

- Louis Lautman | Founder, Young Entrepreneur Society

Follow @louislautman

Write a Proposal First

"Instead of plunging into writing a book, write a book proposal first. This document will help you to clarify what your book is about, who is in your target market, and what is your competition. This is also what you will need to show to a book agent if you're planning on pursuing a publishing contract."

- Elizabeth Saunders | Founder & CEO, Real Life E®

Follow @RealLifeE

Build Your Audience While Writing

"The best piece of advice I was given was to market the book while writing it. Publishers print books without marketing them. As the author, you are in charge with building awareness for your book and selling copies. I built my following, shared the books ideas, and got publicity for it -- over a year in advance of publication!"

- Dan Schawbel | Founder, Millennial Branding

Follow @DanSchawbel

Get a Great Agent

"If you can get a great agent, you are already halfway there. It is extremely hard to get the attention of a publisher, but it is very important to tap into publishers for their distribution networks and media connections. Agents are the best way to get a great publisher and big advance. They can also help you write a killer book proposal."

- Vanessa Van Petten | CEO and Author, Science of People

Follow @vvanpetten

Niche, Niche, and Niche Some More

"As the CEO of a company that publishes over 100 business, motivation, and self-help books every year, I've seen about everything! Nothing makes me cringe more than when I hear an author proudly proclaim, "My book is for everyone." Success for the non-household name is a matter of being important to a small niche of people. Craft your book to a specific subgroup, and own that sliver of pie!"

- Adam Witty | Founder & CEO, Advantage Media Group

Follow @@adamwitty

Get a Fantastic Editor

"Many books do not become great books because of the lack of professional editing in the interior. Hire yourself a fantastic editor who can work with your book and make unemotional, unbiased suggestions and corrections. This will take your book from good to great, and will leave you feeling much more confident as the book is shipped to your reader's hands."

- Erin Blaskie | CEO, BSETC

Follow @ErinBlaskie

Is Your Content Even Original?

"Buy every book that's already been written on your specific topic, and read (or at least skim) them all. That way, you'll know a specific angle you can take that hasn't already been covered. The top mistake first-time authors make is writing a proposal for a "me too" book that's already been written by someone else. Then, convey in your proposal why you are credible to speak on that fresh angle."

- Michael Ellsberg | Author, Penguin and HarperCollins

Follow @michaelellsberg

Don't Even Think About It

"Who is going to buy your book? How are they going to know about it? First, you need fans of your work -- a blog is the perfect place to start. Very quickly, you'll realize whether or not your ideas have merit. If they aren't spreading, well, you just saved yourself a lot of time and effort. The book is the easy part; creating a loyal fan base is the hard but critical part."

- Adam Gilbert | Chief Body Tutor, My Body Tutor

How Not to Screw Up a New Business Relationship

Lauren Perkins — Fri, 13 Apr 2012 07:33:36 +0000

Building professional relationships can be treacherous, and you always hope to put your best foot forward when meeting new colleagues, clients and partners. Luckily, this phase is similar to the initial process of dating — it’s the time when the precedent is set for months and years to come.

This article gives you the skinny on the governing principles of how to use tried-and-true dating principles to help building personable and lasting relationships in the workplace. Whether you’re dating someone new or pursuing a new business relationship, there are always three governing principles to keep in mind: expectations, communication, and timing.

Stick to these three tenets to successfully navigate that early “get to know each other” phase:

Expectations. In the early stages of a relationship, it’s very important to establish expectations. One easy way to do so is to discuss objectives and determine what each person is anticipating from the business deal or the relationship. In order to avoid potential “snafus,” it’s a good idea to make sure expectations are clear from the very beginning.
Communication. We all know how important communication is in dating! Nobody is a mind reader, and you can’t expect someone to know what you’re thinking if you don’t tell them. It’s also a good idea to feel out how frequent and what types of communication you should use with a new relationship. Nobody likes an over-communicator, but you want to let the person know that you’re interested in taking the relationship further.
Timing. Just as in dating, the timing of a new business relationship must be right. Have you ever met someone you thought was fantastic but the pace was just too fast or slow? Admit it, you have. Given the fast pace of today’s business environment, timing is just as key to building professional relationships as it is with personal ones. From the professional side of relationships, this is the most important of the three governing principles because you can’t prepare for communication needs or think about fulfilling expectations if you don’t know the intended timing.

Knowing expectations, leveraging communication, and confirming timing are all essential to relationship success. If you put these core principles to work at the beginning of any new relationship (business or otherwise), you’ll be well-prepared to build fulfilling, mutually beneficial relationships.

Lauren Perkins is a brand evangelist and digital tastemaker who delivers integrated solutions from a unique entrepreneurial perspective. She is currently the CEO and Founder of Perks Consulting, a digital and creative services marketing agency specializing in the fusion of lifestyle and technology based in New York City.