7 Attributes of an Extraordinary Entrepreneur

Ashton Kutcher made headlines at SXSW this year when he announced the launch of a new investment fund with business partner Guy Oseary. But Kutcher and Oseary are not new to the startup game. In fact, Kutcher made early investments in Uber, Airbnb, and Spotify, showing a keen eye for investing in promising startups. When CNBC’s Maria Bartiromo asked Kutcher what he looks for in new companies, one of his answers was “extraordinary entrepreneurs."

What creates an “extraordinary entrepreneur” in the eyes of an investor? As Founder and CEO of Foxwordy, a startup that is the first private social network for lawyers, as well as a member of one of the largest angel investor groups that invests in Silicon Valley startups, I’ve found there are key qualities that attract investors’ attention and lead to strong, lasting investor/entrepreneur relationships.  

Here are seven key attributes of extraordinary entrepreneurs:

1. Strategic 

When it comes to your funding strategy, there are three schools of thought. One approach is to take only those investments you currently need, while the other approach is to take as much investment as you are able to get. Yet another approach is forget fundraising and focus on building the best business you can and the money will come. While there are pros and cons to each approach, what’s important is to figure out which one makes sense for your venture and stick to it. Defining your strategy in advance helps avoid setting yourself up for unmet expectations or taking your eye off the ball when it needs to be on the product or the business.

2. Frugal

Whatever funding you have must be used wisely. Spend your investors' money as if it were your own. Even better, have it be your own. I am a strong believer in the importance of entrepreneurs investing their own money into their own companies, and it is something investors are bound to appreciate and respect. WhatsApp, for example, hardly spent any of the $8M they raised from early investors, because they didn’t need to, although they certainly could have. Spend when you need to do so and save when you don’t.

3. Expert

Investor Mark Birch explains that prior domain expertise is not always a prerequisite to startup success. However, Birch cautions, “You can’t simply Google and Wikipedia your way to expertise, it requires time, research, talking to knowledgeable people and digging deep into the guts of the matter.”

Indeed, if you are new to your startup’s industry and don’t have the necessary domain expertise, you’ll need to invest time in building knowledge and networks, as well as focus on making key hires that bring domain expertise to the table. Zipcar founder Robin Chase, for example, talked about how she started a car company, yet knew nothing about cars. She made a smart move by hiring a VP of Operations who had deep experience with Hertz. 

4. Decisive 

Investors want to see that you have the backbone to deal with the difficult decisions that inevitably will arise. From having to fire family members to deciding whether to expand from a single location to multiple locations, entrepreneurs face tough calls on a routine basis and how you deal with those decisions demonstrates your leadership abilities.

5. Transparent

Authentic communication is imperative to building trust in any relationship, especially between entrepreneurs and investors. Provide transparency via regular reporting and be sure to share the ups as well as the downs. Investors know how challenging it is to build a new business and open, honest communication about challenges and successes is key.

6. Persistent

You’ve heard it before and it’s true: never give up! Investors want to see determination. In fact, how you deal with setbacks can be the very thing that sets you apart in the eyes of investors.

Richard Branson says, "many venture capital investors evaluate potential partners on how they reacted to a failed business, seeing it as a test of character, rather than a mark against them." The "key," according to Branson, is how entrepreneurs bounce back.

7. Open to advice

Don’t be afraid to connect with potential investors for input and advice. Many investors are entrepreneurs themselves and have immense knowledge and experience to share. Rather than demonstrating uncertainty or lack of knowledge, asking for advice shows a willingness to learn and consider multiple points of view. Doing so may also open the window of opportunity for funding. As Datanyze CEO Ilya Semin noted, "If you want advice, ask for money. But if you want money, ask for advice."

Is there a secret formula to being an "extraordinary entrepreneur"? Probably not. But adopting these seven attributes can certainly help you get recognized for the entrepreneur you are. Moving forward, demonstrating these key qualities will go miles towards ensuring the ongoing relationships with your investors are amazing.

Monica Zent

6 Best Practices for Managing Unhappy Employees

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Leading a team isn’t easy, and it requires specific skills that not everybody has. Even if you have these skills in spades, at some point, you’ll find yourself faced with the challenge of dealing with an unhappy employee.

If you handle this well, you may be able to turn an unhappy performer into a star employee who just needed a little attention and care. If not, you could lose that same would-be star performer due to job dissatisfaction, or worse, find yourself facing legal action from a disgruntled employee.

While it’s rare for things to get that serious, it’s still important to protect yourself by learning the six best practices for managing unhappy employees.

1. Assess the situation thoroughly.

Though only a few letters different in spelling, assess and assume are two very different words. Before you jump to any conclusions, take the time to dig in and really find out what’s going on with the individual. Find out why they’re upset. They could be upset with you, their current job status or another member of the staff. It’s also possible that they are unhappy due to something unrelated to their time at work.

If the issue stems from something within your company, gather as much information as you can before deciding how to act. But even if it’s a lifestyle factor influencing your employee’s behavior, don’t ignore it just because it comes from outside your four walls. Use it as an opportunity to show them that they’re more than just a name on an HR folder.

Offering assistance, whether through a formal employee assistance program or other means, will build their loyalty to your company.

Related: 5 Ways to Make Your Employees Happier and More Productive

2. Don’t wait.

The best time to address the situation was yesterday. The second best time is today. The longer you wait to address the issue after it’s been identified, the more time it will have to fester, adding fuel to the fire. It may not be a fun-filled conversation, but it needs to happen sooner rather than later.

Additionally, after confronting the situation, it may be necessary to address the rest of the staff. If there is talk amongst your employees, nip rumors in the bud. A short, concise statement letting other employees know that a situation has been addressed can save you a lot of meeting time and HR heartache in the long run.

3. Privacy is key.

While the staff as a whole may need to be addressed after the situation is resolved, initially, it’s best to meet with the unhappy staff member one on one. This option not only protects you from the employee voicing their complaints for everyone else to hear, but also provides a perception of safety to the employee. They may be willing to disclose their real reason for unhappiness and a resolution may be reached in private, one that would not happen without the confidentiality found behind closed doors.

In addition, this privacy will protect both you and the employee legally. Thoroughly document the conversations you have with the employee, as well as the details of any resolutions you come to. Type up your notes, print them out and have the employee sign them to prevent “he said, she said” confusion from affecting your working environment in the future.

4. Cool is the best temperament.

Working in a hot office is uncomfortable, whether you’re referring to the temperature or to the level-headedness of the bosses. It’s more important than ever to keep your head on straight when handling an unhappy employee. If they begin to get upset, simply speak gently and allow them time to calm down. If the situation escalates, ask them kindly to remain professional.

If nothing seems to help, remove yourself from the situation and allow them space to express their anger privately, without you there. Employees who aren’t comfortable handling their emotions may need some time to process them alone before they’re able to come back and have a professional conversation.

Related: 6 Ways to Improve Your Management Style

5. It takes time.

As business professionals, we want to fix things immediately. While this is a great attitude to have overall, it doesn’t work in every situation. A quick turnaround in employee morale can really drive efficiency and productivity, but it isn’t always possible.

Keep in mind when dealing with an unsatisfied staff member that it may take more than one meeting to iron out the problem. If someone has been unhappy for a month, it may not be possible to bring the sunshine out from the rain in just an hour.

This can be frustrating to entrepreneurs who are used to moving quickly, but during these times, remember that you owe it to your company and your employee to continue to work through the situation.

6. Keep records.

Above and beyond all else, document your conversations, meetings and outcomes. This is for your safety and the employee’s, and it just might save you from a lawsuit. We all hope to resolve meetings with everyone wearing a genuine smile, clapping our hands and admiring our dedication as they tell us, “Thank you for everything you’ve done.” Productivity picks up, and everybody goes back to being one big happy working family.

Unfortunately, efforts to address and resolve the issues of unhappy employees don’t all end this way. Instead of a positive outcome, you may find yourself in the position of issuing a performance improvement plan or laying the groundwork for an eventual termination.

Whatever the case may be, make sure to keep records of any warnings given or actions taken. These records may be vital later if the employee takes legal action against your company. As a business owner and leader, it’s important to create and keep handy a number of different standardized human resources documents (such as a disciplinary action form) that you can pull from and use on an ongoing basis. Doing so will help you excel in tough situations where clear processes and documentation are key to bringing about change.

Not every job is right for everyone. Although it’s your job to coach and develop the employees who are the right fit, it’s equally your responsibility to recognize the ones who aren’t and figure out the best time to part ways. If you can’t save a disgruntled employee, it may be time to move on.

Have any other suggestions for handling unhappy employees? Share your experiences by leaving a comment below.

Sujan Patel

Use These Cover Letters That CEOs Read

Last week I wrote about 5 Ridiculous Cover Letter Mistakes. It’s difficult to get past the gatekeepers at an organization and even harder to reach time-challenged CEOs. But as the CEO of a rapidly growing software company like Aha!, which receives hundreds of resumes a month, there are some intro emails that do catch my eye. 

So, what kind of cover letters do CEOs actually read?

A 2014 study by SHRM says that cover letters are still important to many companies in this modern age, even if they are read in under a minute. So even if you are just typing your “cover letter” in the body of your email, please carefully consider your approach.

" Take the time to concisely share your credentials and quantify your accomplishments. If you do, you will see more responses to your notes."

The key is to:

• Do your research
• Send a custom email
• Focus on past achievements
• Provide the link to your LinkedIn profile
• Provide a PDF of your resume (remember that if we are not connected I can not see your entire LinkedIn profile)
• Keep it short

And stop wasting time applying to jobs that you know nothing about or have no credentials for. Here are some cover letter templates that work. I have used these myself and have included two scenarios.

I. When you have relevant experience for an open role

For example, let's imagine I was writing this a few years ago.

Subject: SaaS marketing expert interested in your Product Marketing role

Body:
I have 8 years of experience in SaaS Marketing and would like to speak with the right person about your open role. I believe I am a good fit because I have:

- Led over 12 product launches for leading SaaS companies
- Increased leads for the sales team at my current company by 50%
- Established social media marketing programs and have generated over 2,000 followers

Please find my LinkedIn profile here: www.linkedin.com/in/bdehaaff/

I have also attached a PDF version of my resume.

I graduated from Northwestern with a Masters in Marketing and I have a BA from U.C Berkeley in Philosophy. I currently run product marketing for Netli. I am looking to join a high growth company like Aha!

Could we set up a 15 minute intro call?

Best,
Brian

II. When you have relevant experience and are interested in a company but do not see the perfect role

For example, let's imagine Keith was writing this a few years ago.

Subject: Content specialist for top 50 Web property interested in joining Aha!

Body:
I have 5 years experience in SEO, social, and content generation in B-B SaaS. I would like to know if you may have a relevant role that is just not listed on your site yet.

Please find my LinkedIn profile here: www.linkedin.com/in/keithandbrown

I have also attached a PDF version of my resume.

I graduated from Texas and currently run content and SEO for YP. I am looking to join a high growth company like Aha!

Please let me know.

Thanks,
Keith

CEOs are busy people, but we always welcome the right people showing the right interest. We are looking for the best of the best to join our teams. The wisest leaders are committed to surrounding themselves with people who are smarter than they are."

"One important key to success is self-confidence. An important key to self-confidence is being prepared."

So prepare your cover letter carefully, catch our eye quickly, and you should hear back from us. Just don’t copy and paste these templates without making them yours. If I find a BA in Philosophy from U.C. Berkeley in there somewhere, I will smile.

What intro emails or cover letters have worked best for you?

Brian de Haaff

6 Key Tips for Leading by Example

Leading is all about influence. How you present yourself in a leadership role affects your ability to successfully leverage authority and motivate others. Do you inspire people to follow your lead? If not, consider evaluating your performance and addressing crucial gaps.

Tweaking a few key behaviors can make a huge difference in how others perceive you. Many people don’t take this point seriously enough and damage relationships, reputations and careers in the process. Be proactive. Here's the deal: Leading can be a rewarding, yet challenging undertaking. Follow these six tips to model excellence and gracefully inspire others to follow your lead:

1. Establish an impeccable standard of excellence.

Set high expectations at the outset and raise the bar on any crucial factors. The best way to establish a standard is by modeling the expected behavior yourself. Showcase excellence. When your actions have the potential to affect everyone around you and the bottom line, don't dabble in mediocrity. Reflecting excellence is critical to exercising effective leadership. This is ground zero for establishing influence.

2. Deliver on results promised. 

Able leadership requires an ability to deliver results. Rhetoric has little value  if outcomes are what's essential. Instead of touting wins from past performances, focus on capturing tangible gains now.  

Harness the power of chunking, a process for organizing tasks and breaking them down into bite-size pieces to avoid stress and burnout. Remember to follow up and follow through, too.

Engage experts if necessary to timely and competently pull projects forward. In the end, only substance and the final sum will matter. Excuses won’t.

3. Value people and nurture relationships.  

Top-notch people skills are vital to sound leadership. Develop premium listening, communication and decision-making skill sets. Demonstrate integrity by being open, honest and fair.

Your transparency will reap clear rewards. If you treat people well, most will be encouraged to return the favor. By elevating the importance of people and relationships, you enhance your ability to relate to others in an authentic and meaningful way.

4. Promote strategic cooperation.

Collaboration is an indispensable component of leadership as captured in John Donne's line “No man is an island." This is especially true if you can build high-performing teams, according to the Harvard Business Review's site. Isn’t it fascinating that no matter how brilliant people are as individuals, they are often far more effective when working with others?

People often produce higher quality, more efficient work products when collaborating. Commit to this by actively embracing opportunities for healthy cooperation. Make teamwork an attractive aspect of workplace culture. Less burnout, increased trust among peers and enhanced interpersonal relationships will result. 

5. Resolve conflict quickly and effectively.

Approach conflict proactively, which means the sooner you resolve things, the better. As a core leadership competency, conflict resolution is a delicate process that requires thoughtful intervention. Disagreements naturally occur. But persistent hostility should not be tolerated. The bottom line? Conflict gets in the way of everything else. Thus your ability to quickly and effectively facilitate resolution will undoubtedly boost your ability to lead.

6. Freely develop and support others.

Professional development is an extraordinary mechanism for facilitating growth. Demonstrate your commitment to expanding your reach and your team's by prioritizing opportunities for enrichment. Allot time and resources to make the process stress free. Challenge yourself and your team to overcome shortcomings at regular intervals throughout the year. Then acknowledge and reward proactive participation to build enthusiasm and encourage continued progress.

 Karima Mariama - Arthur