In this episode of Investor Connect, Hall T. Martin discusses the essentials of raising funding with a guest who has transitioned from consulting to entrepreneurship. Hall underscores the importance of planning the investor's exit strategy from the beginning, which can involve sales, revenue sharing, or customer prepayments. This approach helps structure an effective funding strategy and attract potential investors.

Hall introduces the idea of anchor clients as a way to fund initial development. By securing contracts with clients willing to pay a premium for custom solutions, startups can build and refine their products while generating early revenue. This method ensures the product meets market needs through real-time feedback.

Consulting work related to the startup's core business is highlighted as a valuable bootstrapping strategy. This not only generates necessary income but also provides insights into the industry and builds a network of potential clients and partners. The guest finds this advice particularly useful for generating revenue and understanding market demands.

The episode concludes with advice on managing equity and partnerships, especially when personal challenges arise. Hall shares strategies for negotiating buyouts and revenue-sharing agreements to ensure business continuity. His insights offer a practical roadmap for navigating the complex landscape of funding, emphasizing adaptability and strategic planning. This episode provides essential tips for entrepreneurs seeking to secure capital and position their startups for success.

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What Is a Family Office?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

A family office is an entity setup to manage the wealth and business activities of a family to promote its values and identity.

Here are some key activities found in many family offices:

Develops and implements the investment strategy of the family business.

This includes financial investments in the stock market, real estate, and other assets.

Identifies and implements tax strategies for the family business.

This could be research into investments with tax advantages.

Performs estate planning.

This includes identifying trusts and other entity structures to preserve the estate.

Implements the philanthropic mission of the family.

This includes identifying non-profits and initiatives that provide a community service and donating resources to that cause.

Develops and implements succession planning.

This provides a plan to pass the estate from one generation to the next.

Manages the physical assets of the family.

This includes overseeing the care of the property of the family including the house and possessions.

A family office structure helps manage the investment and operations of a family.

Consider setting up a family office to oversee these activities in your family.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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How the Board Can Help During a Turnaround

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

During a turnaround the board should help.

Here are some key steps to engage the board in the turnaround process.

Interview the board for their input on the turnaround plan.

Reconfirm the board's role in the company.

Define the specific activities the board should engage in.

Set up the board with goals and objectives with accountability.

Change the board’s operating process to meet the current needs of the company.

For businesses in a steady state a quarterly board meeting is fine.

During a turnaround the board should meet more often such as weekly.

Identify board members with key skills and contacts relevant to the turnaround.

For example, a board member that has a network of investors could be tasked with fundraising.

Another board member with financial expertise could oversee the financial activities.

And yet another board member with public relations experience can help with communicating the turnaround to the outside world. 

Set metrics to track the board’s progress.

Just as the company’s leadership and employees have metrics so too should the board.

Consider these points in engaging the board for your startup turnaround.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Why Turnarounds Fail

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Just as not all startups succeed so not all turnarounds succeed either.

Here’s a list of reasons why turnarounds fail:

Failure to adapt.

The market continually changes so it’s important to keep up.

Make sure you are following the market and change to meet it.

Failure to embrace the challenge.

Turnarounds require major changes to the business.

Plan for these changes as small steps won’t cut it. 

Failure to raise funding.

Turnarounds require funding and lack of funding can kill it.

Check your funding requirements to see how much you need to execute on the plan.

Failure to innovate.

Technology can become obsolete.

Review your offering to see if you are innovating. 

Failure to gain buy-in.

Turnarounds require commitment from the investors, suppliers, employees and others.

Gain commitment for the turnaround from all the stakeholders. 

Failure to commit to the plan.

Everyone needs to contribute to the success of the turnaround through pay cuts and longer hours.

Watch out for these points of failure in your turnaround.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Evaluating Your Startup for a Turnaround

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

If things are not going well at your startup you may want to consider implementing a turnaround program at some level.

Here are key points to evaluate your startup’s need for a turnaround:

What are the customers saying?

Review customer feedback to see where you are succeeding and failing.

Do you have a competitive advantage?

Your business needs to provide something unique.

Do you have the right team for the business?

Make sure everyone on the team fits the requirements and works toward a common goal.

Is the fundamental concept behind the business sound?

Review your value proposition to see if it’s resonating with the market.

Are you executing on the plan?

It takes more than a written business plan to succeed.   You must execute on it.

Does your brand mean something?

If it doesn’t then you need to rebrand or restart your current brand.

Do you have enough funding to accomplish the plan?

If not, you may need to raise additional capital.

Consider these points to see if your startup needs to pivot or make other changes.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Managing Employees in a Turnaround

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

During a turnaround it’s important to maintain team morale and involve everyone in the process.

Here are some key steps to managing the team.

Make clear the need for the turnaround.

Employees may not have visibility on the financials and don’t know how much the company is losing.

They also may not know the situation with competitors or see changes in the market.

Involve employees in the decision making.

Gather feedback from the employees on how to cut costs and improve revenue.

Update them on the progress of the business.

Measure performance.

Metric the company’s performance to show where gains are being made.

Give employees the ability to improve the company’s performance.

Recognize excellence.

Provide incentives to employees to achieve key metrics.

Track the metrics and provide rewards to those who achieve it.

Address concerns.

Some employees may not buy into the turnaround plan.

Address their concerns and work to bring them into the process.

Gain alignment.

Make sure employees understand the turnaround process and align with the goals.

Success will depend on employee buy-in for the turnaround process to work.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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The Four Rs To Turnaround a Business

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

A turnaround can take several forms based on the severity of the changes required.

Some businesses require a complete overhaul of their operations while others perform a repositioning or rebranding.

Here are the four Rs to turnaround your startup:

Retrenchment.

In retrenchment the business refocuses on the core business and exits non-core initiatives.

This is often used to move to cash flow positive or break even.

This comes about during downturns in the economy.

Repositioning.

In repositioning the business, it moves the company to a new place in the market landscape.

This comes from changing the price or promotion of the product.

This often happens when new competitors enter the market or the market changes.

Replacement.

In replacement the business replaces the team.

This often occurs as the company grows from seed to Series A and later Series B stages.

The skills required changes so the team must change.

Renewal.

In renewal the business refreshes the management team’s focus.

This often occurs when the business hits a plateau.

While the core business is solid, revenue appears to have stalled.

Renewal gives the business a new mantra and a fresh take on the market.

Consider these levels of restarting your business.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Key Tests of a Turnaround Process

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In turning around a startup there are key tests you must pass to achieve success.

Here’s a list of tests:

Is the core business viable?

If the basic business won’t work then no amount of funding or strategy will save it.

Do the team and the investors buy into the turnaround?

If no one believes it will work then it won’t.

Does the leadership have credibility?

If the leader doesn’t have the credentials, then it’s going to be hard to motivate the team.

Can you get support from the lenders?

If they won’t give you room to try a turnaround then there’s no opportunity.

Can you raise more funding?

If you can raise additional capital you have another shot at the business.

Is there enough cash to run the business for at least a short period of time?

If you have some cash you can make a go of it.

Consider these key tests to determine if you can launch a turnaround.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Best Practices for a Turnaround

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There’s an old saying, ‘never let a good crisis go to waste’.

A turnaround is not only a crisis but also an opportunity to rebrand, redirect and reposition the company.

Here are some best practices in working on a business turnaround.

View each turnaround as unique and customize your approach to fixing it.

Set goals for the turnaround to ensure you are on the right track.

Apply the same standards to your turnaround as you would apply to other businesses.

Review the skills the company needs and adjust the team accordingly.

Review the team and recruit key players who can help with the turnaround.

Engage the board into the process and make sure they are working at their full potential.

Put cash as the central financial metric first and gear all decisions around it.

Just as you have a story for raising funding for the business so you need a story around how the turnaround will work.

Be action oriented and timely in doing so.

Look for some early wins to build momentum with the team for the turnaround.

Take the turnaround as an opportunity to rebuild compensation and incentive plans.

Consider these points in running a turnaround at your company.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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More Best Practices in a Turnaround Process

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Here are more best practices to apply in your turnaround process:

Consider options that go beyond the current resources in the business. 

Consider bringing in additional team members and outside funding.

Get multiple views of the company from the team and investors to build a more holistic plan.

Use multiple touch points and formats to gather information from the team.

This includes not only formal meetings but also informal meetings, calls, and offline discussions.

Review the customers’ situation to see if the company’s offering still meets their needs.

The customer’s requirements may have changed due to the market.

Look at competitors who are successful to see what can be learned from their pricing, positioning, marketing, and strategy.

Consider changing the business model to fit the customer better.

Recurring revenue and pre-payment business models can also improve the financial condition of the business.

Consider changing the product altogether to capture more revenue.

The product may be outdated or undifferentiated in the current market.

Consider initiatives to reduce the operational cost by going paperless and speeding up cash collections.

Automation and improved financial payment tools can decrease costs and improve cash flow.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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How To Turnaround a Business

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

A business turnaround is just like any other aspect of running a business.

Here are some key steps in running a turnaround program for your startup:

Identify the problem to be solved.

There’s typically 2-3 major issues to address.

Develop a plan to move the business in a new direction.

Consider the stage of business and the resources available to it.

Gain commitment on the plan from the team and the investors.

It’s important to get the shareholders on board.

Implement the plan to stabilize the business.

Go for cash flow breakeven and a stable customer base first.

Move the business to profitability.

After stabilizing, start looking to increase profits first.

After achieving profitability, you can start to grow the business.

In the turnaround consider the following actions:

Review all budgets for expenses.

Review past customers to see who can be reactivated.

Reformulate the organization chart.

It’s important to be transparent about the condition of the business.

Be willing to drop favorite projects that no longer fit the core focus of the business.

Show commitment to the new plan and inspire others to support it. 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Hiring a Turnaround CEO

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In many turnaround situations you’ll need to hire a new CEO.

Here are some key points to consider when hiring:

Track record -- look for someone with a proven track record in turning around businesses.

Cash management -- needs to monitor cash on a daily basis and manage all expenses closely.

Operations focus -- must have an operations mindset and the ability to apply it to the startup in a turnaround.

Financial literacy -- must be able to read the financial statements and understand the current state of the business.

Problem solving -- must be able to look at the situation and identify the problems to be solved and come up with initial solutions.

Transparent -- must be able to talk candidly about the business and the proposed solutions.  

Expeditious -- must be able to take action quickly and not get bogged down in consensus-building.

Change management -- must be able to hire and fire people as the needs of the turnaround business will be different from the previous business.

Consider these skills in hiring a turnaround CEO.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Key Steps in a Turnaround

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are many sources of problems in a startup.

For each problem there is a key step to solve it.

Consider these problems to be solved.

Lack of funding.

This is one of the most common reasons businesses fail.  

They lack the capital to carry out the functions of the business.

The solution is to cut expenses and increase sales and consider raising funding.

Shrinking customer base. 

You’re losing customers faster than you're signing them up.

The solution is to identify the ideal customer and make a focused effort to sign up those clients.

Too many bad customers.

There are some customers who cost you more to support than they bring in revenue.

Set a plan to move bad customers out of your business.

Changing markets.

The markets are constantly changing and shifting which can put your business in a difficult position to grow.

The solution is to know your industry and move to update your position in the market when it changes. 

Bad employees.

You may have employees who are running off customers, misspending resources, and demoralizing the other employees.

The solution is to find replacements and move the bad employees out.

Consider these sources of problems and take steps to correct them.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Stages of a Turnaround Process

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are several stages in a business turnaround.

Consider these phases for your startup:

Assessment:

This phase determines the crises and the impact on the business.

This can include both internal and external factors

Triage:

This phase sorts through the potential strategies to recover the business.

This can include reorganizing the company through filing bankruptcy.

Stabilize:

This phase sees actions to reduce losses and moves the business to a stable condition.

This involves reducing the employee count, selling assets, and reducing expenses.

Turnaround:

This phase establishes a plan for recovering the business so it’s profitable.

This involves reducing expenses dramatically and focusing all resources on increasing revenue.

Growth:

This phase establishes a new plan for growing the business.

This typically involves refocusing on the core business and reducing the number of non-core growth initiatives.

Consider these phases in your startup turnaround.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Key Strategies To Turnaround a Business

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

To turnaround a business you must take action early and not wait till it’s too late.

Here are some key strategies to take to turnaround your business:

Assess the situation.

Review the market to see if the company is still competitive in the current landscape.

Check to see if you have sufficient revenue, customers, support, and profit to maintain the business. 

Identify what revenue and cost structure you need to achieve break-even.

Review the outstanding debt to see who is owed and how much.

Solvency may determine the turnaround path and steps.

Check your cash runway to see how much time you have to recover.

Identify the core problem to be solved.

With this information write out a turnaround plan.

Make sure everyone knows the plan and buys into it.

If there are creditors who must be paid then show them the plan and work out a payment schedule.

Renegotiate outstanding debt to give you more time to rebuild the business.

Set up metrics to track the progress on achieving the plan.

Implement strict cash and expense controls.

Strive to hit break even and then profitability without increasing costs.

It’s important to execute on the plan in a timely manner.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Signs the Startup Needs a Turnaround

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Here are some signs your startup needs a turnaround:

You’re close to breaching loan covenants.

The financial performance is still below expectations.

The startup's revenue and profitability is below the industry average.

Cash flow continues to be a problem.

The startup has been running for a few years but still can’t find breakeven.

Here are some initial steps to take:

Check your top line revenue to see if there’s enough to cover the costs.

If not you may need more sales and marketing.

Are revenues flat or declining?

If so, have you decreased costs accordingly?

Check the cost of acquiring customers to see if it’s still in line with the business model.

If so, you may need to find lower cost channels for acquiring customers. 

Check the cost of goods sold.   

If it has grown recently then you may need to raise your prices. 

Check your pricing. 

If you’re the low-cost provider then you must have a low cost structure for the business.

Analyze the profitability by customer to see if some portion of your customer base is dragging the business down.

Analyze the expenses by category to see which factors are causing the losses.

It’s important to take action on problems found.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Business Turnarounds

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

A business turnaround is taking a company that is underperforming and modifying its operations and strategy so that it recovers financially.

Startups who are candidates for a turnaround are not doing well.

They suffer from a lack of leadership, focus, strategy, or execution. 

Consider these steps in a turnaround situation:

Identify the problem. 

This could be lack of funding, missing leadership, little or no sales and marketing, incomplete products and more.

Set a goal.

Some businesses need years to recover while others can recover more quickly.

Gain consensus on the goal of the recovery.

Determine a strategy.

Focus on the core problem and write out a plan to solve it.

Implement strict financial controls.

Apply strong cash management and tight expense controls.

Work to achieve cash flow breakeven first and then move to profitability.

Increase sales by improving the product, raising the price and converting more leads into revenue.

In running a business, be candid and frank about the current situation.

Be willing to make tough choices around hiring and firing and what roles each one takes.

Everything is open to change including the management team, the product, the target market, and more.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Data Models

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

A data model is a visualization of the data showing the structure, rules, and relationships for how it works.

Here’s a list of key data models to consider for your data program:

Concept -- shows at a high level the overview of the data blocks and what they do.

Logical -- shows the data structures and the attributes of the data held.

Physical -- shows the files structures and database layouts for holding the data.

Hierarchical -- shows the relationship between the data structures using a tree format.

Network -- shows the relationship of the data structures using a network diagram.

Entity relationship -- shows the entities of data being used, their attributes, and how each entity relates to the other.

Graph  -- shows the data using nodes to represent the entity and edges which show the relationship between the nodes.

Use the data model to plan out the capture, storage, and use of the data for your program.

Break the data model into logical subsets for development and maintenance.

Set up the data model to support the goals of the overall data project. 

Use it to educate the team on the data set and how it works.

Consider these points for setting up a data model for your company.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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Data Terms To Know

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In working with data there are key terms used in the industry.

Here is a list of terms to know:

Data governance -- a set of rules and procedures for managing data for integrity, regulatory and security purposes.

Data warehouse -- a central repository for all the data.

Data mining -- process of extracting insights and identifying patterns in the data.

Machine learning -- the process of automatically learning and improving from experience.

Deep learning -- techniques for capturing large amounts of data and finding patterns in it. 

Diagnostic analytics -- explains why something happened.

Predictive analytics -- explains what is likely to happen.

Data visualization -- graphic representation of the data for communicating the insights of the data.

Data storytelling -- crafting a narrative to explain the insights found in the data and how it can be used.

Information design -- storing and presenting data in an understandable way.

Data literacy -- the ability to read and write data in context with reference to data sources and data analysis techniques.

Data culture -- the ability of a business to use data for informed decision making.

Know these data terms for use in your business.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Data Champions

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Moving your company into the data world can be a challenge as it’s a new space and many are not familiar with it.

Consider the Crossing the Chasm paradigm by Geoffrey Moore in which new technologies start with early adopters and technologists.

In building data activity into your business start with these two types before moving into the mainstream.

Take your early adopters and turn them into data champions.

Early adopters are often domain knowledge specialists.

They get excited about new technologies and new ways of doing things.

They have an innate curiosity that drives them to work on new areas.

They are often fast learners and pick up new skills quickly.

Bring them into the program to work on the initial projects.

Give them a voice in the decision-making process.

Make clear to everyone they are working on the project and making a valuable contribution.

It’s not necessary to give formal positions in the company although titles can be helpful.

Give them air time to showcase the results of the data project so everyone is aware of it.

By creating data champions you can encourage others in the group to join in. 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Data Sources for Monetization

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In a startup there are many sources of data to draw from for monetization.

You can capture primary data from your own systems.

Consider this list for gathering data from your startup:

Start with your customer database or CRM.

Review the webforms that capture inbound user traffic.

Review your online and mobile ads for data sources.

Research surveys your company has done.

Check your email subscription list.

If you have a community of users, review the constituency for affiliations.

Check social media follows, likes, and other interactions.

Review your financial payments system for sources of data.

If you have an e-commerce business, review the online traffic to the products page.

Look for purchase history information.

Review your customer support for service history.

Consider your customer reviews and comments.

Check your website analytics for additional information.

You can also capture secondary information which is data from outside sources.

This often comes in the form of publicly available data.

Most startups already have a rich set of data for monetization so start there.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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In this episode of Investor Connect, host Hall T. Martin sits down with Fred Gumbinner, President and Managing Partner of Keiretsu Forum, a global investment community. Keiretsu Forum connects accredited private equity angel investors, venture capitalists, and corporate institutional investors across 53 chapters on four continents, fostering diverse investment opportunities.

Fred shares his journey from a legal background to entrepreneurship, specializing in alternative energy products. His transition to early-stage venture involvement aligned perfectly with Keiretsu Forum's interests, focusing on micro private equity, venture capital, and special situation funding.

Throughout the interview, Fred emphasizes the importance of key strategies in identifying promising early-stage investment opportunities, highlighting the critical role of strong management, competitive advantage, market size, and business plan.

As President of the Keiretsu Forum DC Metro chapter, Fred discusses the organization's contributions to fostering innovation in the local startup ecosystem. He emphasizes their involvement in partnering with various organizations and participating in panels to educate entrepreneurs and support the community.

Fred elaborates on the types of projects Keiretsu Forum typically supports, emphasizing their focus on providing "red zone capital" to ventures nearing significant milestones. He discusses their unique approach, resembling an old-time merchant bank, which allows for creative structuring of deals that traditional institutional investors might overlook.

To learn more about Keiretsu Forum or connect with Fred Gumbinner, visit http://www.keiretsuforum-midatlantic.com/, or via Linkedin: https://www.linkedin.com/in/fredric-gumbinner-915a986/ or reach out via email at fgumbinner@keiretsuforum.net.

_______________________________________________________
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Privacy Issues With Data Monetization

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Many startups collect data from users that is useful to other companies.

Those companies are not interested in the raw data but rather the insight into the behaviors of the users.

For example, users who use the app at the same time of day give an indication of their schedule.

This can be used by other companies such as providing ads to that user at that time.

In monetizing your data, consider the privacy issues that come with it.

Consider taking these steps to ensure the privacy of your users:

Make clear your data policy to users.

Collect only the data you need.

Anonymize the data so no one’s personal identity is made known.

Give the user the ability to opt out of the data sharing process.

Give the user the ability to delete their data.

Provide security around the data you are collecting to prevent unauthorized use of it by hackers.

Abide by the current regulations set forth by the industry, the state, and other authorities around data usage.

Data monetization can create new revenue streams for your company, but you must ensure the privacy of users. 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Building Trust With Data

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In building a data business you’ll need to establish confidence in the data you are collecting and using.

It’s often the case, the team will not trust the data at first.

Here are some key steps to consider in building trust with data:

Establish a level of data literacy with the team so everyone understands the data.

The team may not know what to expect and therefore they mistrust it.

To overcome this, establish a baseline of data and metrics for your team and introduce new team members to that baseline data set.

The data may not match what the team expects.

To overcome this, show the data methodology and the results from the tests to establish trust in the data.

The team may not trust the data analyst.

To overcome this build rapport between the data analyst and the rest of the team. 

The current data set has too many holes in it.

To overcome this take the data set and rebuild it one component at a time.

Establish some overall data metrics to build the team’s trust in the data.

The data set will never be perfect but remember you are seeking excellence, not perfection.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Key Factors in Building a Data Business

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In building a data business here are some key factors to focus on:

Provide high quality data that provides value to the customer.

Low quality data commands a lower revenue rate.

Look for data that others don’t have.

The more unique the data the higher the monetization value.

Focus on critical needs in the data you build.

Nice to haves don’t command as much attention.

Must have data generates higher revenue rates.

Foster a culture of innovation.

Give employees the freedom to experiment and explore new opportunities.

Start with the data you have.

Mine the data in your customer/prospect database first.

Consider bundling the data with the product to make it more valuable.

Aim to be the leader in your space for data and data products.

Leadership brings additional value in the form of branding, exposure, and access.

Consider these factors in building your data business. 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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For Investors check out: https://tencapital.group/investor-landing/ 
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