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Building Business Credit: Your Roadmap to Financing Success

2025-05-17 01:41:42

Many small business owners don’t know that business credit exists—or if they do know about it, they don’t understand why it matters. Overlooking it can mean losing out on valuable opportunities for financing, contracts, and business growth.

For National Small Business Week, Nav and Startup Nation hosted a webinar for business owners where I laid out a roadmap for building and leveraging business credit.

Here are key takeaways from that event. You can watch the entire recorded webinar here:

Why Business Credit Matters More Than You Think

Business credit isn’t just about getting loans. It impacts multiple aspects of your business operations:

Insurance Coverage: Insurance companies may check business credit when evaluating applications for business insurance. One business owner discovered his insurance was denied due to incorrect information on his business credit report that was mixed up with another company. He fixed it and went on to get the insurance he needed.

Contract Opportunities: Government contracts and large commercial clients may require bonding or special insurance or both—and that may involve a business credit check. Or the commercial client may check credit to help understand whether the business has the capacity to take on the contract.

Financing Options: Whether you’re seeking SBA loans, equipment financing, or supplier credit, the application process may require a strong business credit history or good business credit scores.

Understanding the Business Credit Landscape

Business credit operates differently from personal credit in several key ways:

The Major Players

The three primary business credit bureaus are:

  • Experian Business
  • Dun & Bradstreet
  • Equifax Business

In addition, the Small Business Financial Exchange (SBFE) aggregates payment data from major lenders and makes it available through commercial credit bureaus.

Key Differences from Personal Credit

  1. Anonymous reporting: Business credit reports typically don’t list company names, only account types (such as utilities, credit cards, etc.)
  2. Daily tracking: Business credit uses “days beyond terms” to report payment history. This is different from personal credit, where payment history often falls into 30-day buckets.
  3. Varying Score Ranges: Each bureau uses different scoring models with different ranges, so a good score varies by bureau. See the most popular business credit score ranges here.

Building Your Business Credit Foundation

Step 1: Establish a business entity

While you can build business credit as a sole proprietorship, forming an LLC or corporation offers significant advantages:

  • Legal separation between personal and business finances
  • Easier transition when building credit history
  • Better protection for your personal assets

Step 2: Make your business “legit”

Creditors need to see that your business is legitimate and stable:

  • Get a physical address: You can use your home address if it makes sense for your business, but you’ll likely want another address to use as a mailing address on websites and other public sources.
  • Secure a business phone number: Maintain professional communication channels. Check out Verizon’s plans for small business[1] .
  • Create a business email and website: Establish a digital presence with your own domain.
  • Obtain an EIN: This free tax ID number helps match credit history to your business.

Get Nav’s free Checklist to Make Your Business Legit

Step 3: Know your industry

Industry codes (SIC or NAICS codes) affect your financing opportunities. Choose the code that best represents your main source of income. The Census Bureau offers free tools to help your business understand its NAICS codes.

Step 4: Build credit with trade lines

Trade lines are the foundation of business credit. These are accounts that report your payment history to credit bureaus:

Start with supplier credit: Many suppliers offer net-30 accounts where you can purchase now and pay within 30 days. When you pay on time, they report this positive payment history.

Check out Nav Prime: Get your business credit reports and business credit scores, along with personal credit data, updated monthly. Nav Prime submits your monthly payments as a trade line to the major business credit bureaus.

Use business credit cards: Most small business credit cards report to at least one business credit bureau and can help establish your credit history quickly.

Best Practices for Credit Building

Pay on time, every time

Business credit is incredibly sensitive to payment timing. Being even a day or two late can negatively impact your credit. Set up automatic payments or alerts to avoid missing due dates.

Strategic payment timing

Don’t pay accounts too early. If you pay a net-30 account in 3 days, for example, it may only show as “current” rather than demonstrating active use. You may want to consider paying after the company reports accounts to credit bureaus to demonstrate activity. (Check with the supplier or card issuer to find out when they report.) But always pay by the due date.

Monitor and correct errors

Prior research has found that some 20-25% of business owners find material errors on their credit reports. Check your credit regularly with all three bureaus and dispute any inaccuracies promptly.

Watch for UCC liens

These are public notices that a lender has a security interest in your business property. Lenders don’t always file releases when loans are repaid, so monitor your reports for outdated liens.

The Personal Credit Connection

While building business credit, don’t neglect personal credit:

  • Many business credit applications still require personal credit checks
  • Certain loans (like SBA loans) always check personal credit
  • The FICO SBSS score combines personal and business credit data for some lending decisions

Important tip: Keep an eye on credit utilization for both personal and business credit cards to maximize your scores.

Why Business Credit Cards Matter

Business credit cards are often the most accessible form of credit for new businesses:

  • Often available to very new businesses
  • Usually check personal credit and income from all sources
  • Some offer 0% introductory APR periods of 7-18 months
  • Provide strong fraud protection

These benefits make business credit cards a solid choice when used carefully. Watch out though. Debt can quickly become overwhelming if you’re not careful.

Taking Action

Building business credit takes time and consistent effort, but the rewards can be worth it. Start by:

  1. Establishing your business foundation and infrastructure
  2. Applying for your first trade lines or business credit card
  3. Making on-time payments consistently
  4. Monitoring your credit reports regularly

Remember: the sooner you start building business credit, the more it will benefit you over time. Don’t wait until you need financing—start building your credit foundation today.

Additional Resources

The Start: Become a Better Entrepreneur

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Verizon Small Business Digital Ready

StartupNation partners with Verizon Small Business Digital Ready to help you build your skillset and your community. Digital Ready awards $10,000 grants to small businesses and offers free events and courses with experts you can speak to directly.

Joining the program is free: DigitalReady.VerizonWireless.com

Nav

Nav offers tools and resources to help your small business build, manage and monitor its small business credit profile, as well as build a financially healthy company.

Get Nav’s free Build Business Credit Checklist

The post Building Business Credit: Your Roadmap to Financing Success appeared first on StartupNation.

AI and the Coming Agent Economy: ‘Connection Changes Everything’

2025-05-17 00:14:56

This is an excerpt from DIGITAL IMPACT: The Human-Element of AI-Driven Transformation, by Steve Lucas, Chairman and CEO of Boomi.

We’re experiencing a remarkable digital era shift that will impact every aspect of human existence and radically transform business – and sooner than we think.

If you’re waiting for the AI economy to arrive, you missed the launch. It’s already here. There’s a reason why the world’s most valuable technology companies are heavily involved with AI.

In 2024 alone, Microsoft, Google, and Meta all confirmed they would spend billions on new data centers for AI. In the larger business community, Goldman Sachs estimated $200 billion globally would be invested in AI by 2025 as projects go from pilots to scale. One investment that blows my mind is how Microsoft and OpenAI are planning to spend as much as $100 billion over five years on a data center project that includes an AI supercomputer. Analysts estimate $1 trillion could be spent on data centers and energy expenses in the AI boom.

The magnitude of investment is beyond crazy and will reverberate throughout our businesses. It will bring vast disruption and fuel positive transformation at unprecedented speed and scale.

Every company, big or small, regardless of industry, is under enormous pressure to implement AI models to improve customer support, supply chain management, software development, predictive analytics, risk management, fraud detection, human resources, and so much more. The impact will reach every aspect of our business operations.


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A McKinsey & Company study determined that the number one initiative for CEOs in 2024 was finding how to make AI use cases a reality. The consulting firm wrote: “But while innovators dominate headlines, it’s scalers that dominate markets. CEOs need to figure out three things, posthaste: which parts of the business can benefit, how to scale from one application to many, and how the new tools will reshape their industry.”

A 2024 PwC survey of more than 4,700 CEOs put that idea in more stark terms. It found that 45% were not confident that their businesses would survive more than a decade on their current path if they didn’t adjust to fast-moving changes that include AI. Leaders know a tsunami is approaching and will leave their companies underwater if they don’t figure out how to deploy this business-altering technology.

That’s why I believe that if 2024 was the year of AI adoption, then 2025 is the year of AI explosion.

Hello, AI Big Bang!

The cosmic Big Bang created galaxies, stars, planets, and everything we observe in the universe today. Something similar is happening with AI – creating something new and wonderful. It’s like nothing I’ve ever seen in my nearly 30-year career in business, and it’s truly transformative. The universe of business opportunities is expanding exponentially. Right now, “AI” means different things to different people – everything from ChatGPT to fears of Skynet taking over. Sometimes, I get asked to speak to C-level peers about AI developments. At one session with about 200 top leaders, I explained they all needed to get their arms around one game-changing reality: AI agents. These are pieces of software that can mimic human activity. AI agents are programmed to act independently (without direct human intervention) to execute actions, accomplish routine tasks, and automate basic business decision-making.

Think about your typical day. Many of the emails you receive are likely AI-generated. If you scroll through TikTok or Instagram, you’ll see AI’s influence in the choice of videos suggested to you. Any news you might want to read, food you might want to eat, and things you want to purchase? AI’s digital fingerprints are there. And don’t get me started on the ads you see on every website, many of which seem to be following you around the Internet. Even when you’re relaxing and want to binge-watch a show on Netflix, AI is there, serving up recommendations based on your viewing habits.

AI already influences your life to varying degrees hundreds of times each day. But get ready for something even more significant: the agents are coming.

Common AI models, such as the various iterations of ChatGPT, perform functions when a human triggers them. You ask, and they respond. (“Write me a Yoda-style Shakespearean sonnet.”) But autonomous and semi-autonomous agents are next-level AI because they’re not mere chatterboxes. They can use software apps and tools, schedule meetings, send emails, analyze data, and more.

We’ve been ceding ground to forms of AI for at least a decade. But soon, these agents will embed AI even more deeply in our lives. The first generation of agents is impacting customer success, finance, HR, and more as they help humans work more efficiently. This is just the start. Two years from now, agents will be ubiquitous in our businesses. We’ll have agents for everything. Think of them as friendly, valuable minions. I envision organizations deploying small armies of these agents. It will reach the scale where agents will have their own agents to help them accomplish tasks.

The simplest example I can think of is the expense report. Today, managers must approve expenses because we require a human in the loop to interpret and apply company policies. However, within the next 24 months, human approval of expense reports will be a thing of the past. Agents will do it instead.

This is how agents will reinvent how we live and work. We’re at the dawn of “The Agent Economy” in the same way the iPhone led to “The App Economy.” This is our brave new world, where we’ll watch the gap between AI potential and AI value quickly disappear. Right now, it might still be the stuff of science fiction, but soon, we’ll have access to a personal AI agent that knows us and helps with daily, mundane tasks – both in and out of work.

A digital era shift is happening. We’re witnessing a democratization of hyper-advanced technology, and innovation is happening at an unprecedented scale. The speed of AI advances makes weeks feel like an eternity. It’s hard not to think we only know a fraction of what we need to make sense of AI. But we understand that the consequences are severe if we don’t adapt.

Excerpted with permission from the publisher, Wiley, from DIGITAL IMPACT: The Human-Element of AI-Driven Transformation by Steve Lucas. Copyright © 2025 by Boomi, LP. All rights reserved.

The post AI and the Coming Agent Economy: ‘Connection Changes Everything’ appeared first on StartupNation.

Buzz Marketing Unleashed: When Viral Dreams Become Reality

2025-05-15 14:14:11

In the world of modern marketing, where people’s attention spans are shorter than a few seconds, Buzz marketing has emerged as a powerful form of alchemy: It is nudging the public’s brains and transforming the common into the exceptional.

The Pursuit of Controlled Disorder

Visualize this: A perfectly average Tuesday morning at Times Square when hundreds of people abruptly come to a stop mid-stride, forming a living picture that seems to portray time itself as frozen. This was not an error in the Matrix. Rather, it was ImprovEverywhere’s iconic “Frozen Grand Central” campaign, which turned an ordinary commute into a breathtaking experience. The outcome: More than 50 million YouTube views and endless gossip around, “Did you see what transpired at Grand Central?”

However, marketing buzz is not only about spectacle. It’s about knowing how to get people’s attention and taking advantage of how powerful shared moments can be. Consider Red Bull’s literal leap of faith out of a stratospheric plane. When Felix Baumgartner made the jump from space, he was not simply crossing the sound barrier; he was redefining all marketing norms. As he did it live, eight million people watched in astonishment as a drink company decided to place itself in the realm of extreme human achievement.


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The TABOO Factor: Dancing with Danger

The most exhilarating buzz marketing campaigns tend to skirt the taboo. Not enough to offend but just enough to get the conversation going. Remember when Deadpool’s marketing team created vulgar ads for Valentine’s Day featuring the merc in love? The internet erupted in anger and praise equally.

But here’s what is fascinating: Effective buzz marketing campaigns do not just overstep boundaries; they completely reinvent them. Let’s take the famous ‘Share a Coke’ campaign, which at first glance looks so basic. But by adding names to the bottles, Coca-Cola was able to tap into something so primal: the unabashed need to have everything revolve around us. Sales increased by 2.5% proving that the most powerful taboo of all is shattering the barrier dividing objects and individuals.

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The SECRET Sauce: Phantasms That Turn Into Explosive Sounds

Curiosity is easily piqued, and I can definitely say the “secret” played a game-changing role in Blair Witch Project’s marketing. The marketing team’s usage of “mysterious footage” and “missing person reports” was phenomenal. Instead of just promoting the movie, they managed to get the entire world talking about it which led the film to gross a whopping $248 million having been made with only $60,000. Is it safe to say marketing in today’s world doesn’t really appear to be marketing? 

The UNUSUAL Suspects: Removing Pattern Interruption 

The phrase “drowning in advertisement” while startling at first resonates strongly with most people. The reason here is that advertisers consistently look for the most unorthodox ways to catch the target market’s attention. An instance of the ‘unusual’ in ‘unusual becomes unforgettable’ would be KFC. They didn’t need to fry their chicken; the ‘KFC fireplace logs’ sold out in hours, even if a lot of people didn’t want their houses smelling like fried chicken. Hard to ignore the boldness of that idea.

The COMICAL Truth: Humor as a Form of Currency

While humor can be relative, unrestrained laughter is something every person can relate to. The launch video by Dollar Shave Club is premised on absurdist humor that surpassed a simple go viral; instead, it single-handedly revolutionized an entire industry. The phrase “Our blades are f***ing great” achieved much more than brand recognition; it became a case study on the power of gentle mockery and how it can disrupt powerful industry leaders.

The REMARKABLE Revolution: Beyond the Ordinary

In today’s world of minuscule attention spans, the word remarkable serves as a strategy for survival instead of a compliment. Have a look at how Spotify’s “Wrapped” campaign turned mundane user data into a story worth sharing. It was never just one of a kind, it was exceptional to each of the 456 million users. The ad campaign commodified private listening into social currency, resulting in over 30 million shares in 2023.

The OUTRAGEOUS Gambit: Calculated Chaos

When Wendy’s resolved to “roast” not only their customers but other competitors on twitter, they were not just being sassy – they were rewriting the definition of brand personality. Their fierce and spontaneous social media use catapulted them into a new realm of how brands could interact with their customers. The outcome? A 35% increase in brand engagement and a new army of followers who tune in to see what happens next.

But outrageous is not always equated with controversial. Look at IKEA’s “BookBook” campaign, which claimed to turn their paper catalog into a technological marvel. The Apple product launches are always full of sarcasm, and these commercials are no different. The video received over eighteen million views, which only goes to show that the most radical thing you can do is make an obvious statement without smiling.


Free Skills Training: From Raising Capital to Campaign Marketing


Lessons for the Modern Marketing Alchemist

1. The Authenticity Paradox

Paradoxically, the most successful marketing campaigns employ buzz techniques within an emotional marketing strategy, integrating them so seamlessly that the audience remains unaware of the promotional intent. These campaigns skillfully manipulate emotions and human absurdity. For example, the Dollar Shave Club’s launch video was not just another razor advertisement; rather, it sought to instill a cultural belief that real men do not bow to expensive grooming wares.

2. The Timing Tightrope

The art of going viral usually comes down to luck. Oreo scored huge points for real-time marketing by tweeting “You can still dunk in the dark” during the 2013 Super Bowl blackout. This is one of the best examples of timing. From this, they achieved significant brand awareness for no cost other than the tweet itself. 

3. The Platform Puzzle

One social media platform is not like the other. It is very difficult to transfer the virality techniques from TikTok onto LinkedIn. A clever buzz marketer knows the culture of the platform and crafts the content to suit it. Old Spice achieved mastery with their campaign “The Man Your Man Could Smell Like” by changing the humor whilst retaining its heart and modifying each platform their brand was on.

The Future of Buzz: What Are We Expecting?

Buzz marketing is said to evolve with time, and now that we have entered a reality focused on digital services, it is poised to grow further. New avenues for Virtual campaign strategies are now made possible with the onset of VR, AR, and AI. Imagine virtual flash mobs within the metaverse, or AI programs that craft responsive content in accordance with the viewers’ reactions.

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Learning Lessons for the Future Builders of Tomorrow’s Buzz:

  1. Accept the Authenticity Advantage

The most impactful campaigns are those that are superfluous in detail but authentic at their core. Your audience can sniff out inauthentic campaigns from miles away.

  1. Cultivate the Skills of Narration Marketing

Spread fragments of the overarching storyline on diverse channels, allowing each medium to narrate a different segment.

  1. Construct with the Intent of Sharing

With the rising domination of social media, it is imperative for your advertisement to not only grab attention but also go viral. Provide ample incentive for the public to join the narrative.

  1. Iterate and Test at Scale

The online world is rapidly changing. Today’s success might not work tomorrow. Thus, always be on the lookout to change.


Three Branding Strategies That Made Nutella a Business Success


That last lesson may be the most important. In the end, a successful buzz-marketing strategy has always been about creating moments that matter; in retrospect, it has never been about noise. Great campaigns achieve much more than grabbing attention with humor, shock, intrigue, or just creativity. They earn love and emotion. And that is why they are great.

While technology progresses, it is true that the buzz created needs to be focused on in a world full of digital noise. The only catch is that the success of a particular campaign will not stem from having a greater budget, but from having courageous and bold ideas and executing them seamlessly. Creating true buzz will become far more valuable than it already is.

To quote marketing expert Seth Godin: “Marketing is no longer about the stuff that you make, but about the stories you tell.” It is as important as the campaign itself because the stories that are created in buzz marketing need to be retold over and over again.

Image from Unsplash


Seth Godin Talks the Importance of Seeking the Smallest Viable Market

The post Buzz Marketing Unleashed: When Viral Dreams Become Reality appeared first on StartupNation.

Do Friends Make Good Business Partners? 5 Things to Consider Before Risking It

2025-05-13 13:57:31

Tradition has it that there are three things you should never discuss at the dinner table: politics, religion, and personal finances. Even if you’ve never personally experienced the emotional eruptions that seem to inherently simmer in these topics like lava in an active volcano, common sense whispers that it’s best to avoid them when you’re not 100 percent sure of your audience.

As far as I know, going into business with a friend isn’t a concept that tradition forewarns against with the same sort of memorable pithiness.

As with the example above, common sense might whisper that the arrangement is a potentially dangerous one, but emotions such as shared excitement over the idea of spending your working hours with someone you’re close to can provide a convincing counterargument.


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Experience, as always, is the best teacher to turn to when in doubt – and I have had plenty of experience when it comes to starting businesses with people with whom I also share social ties of one kind or another. I can state with conviction that though it is possible to successfully join financial and emotional forces with someone toward whom you feel affectionate, there’s no guarantee that the relationship will remain the same regardless of the outcome.

With so much on the line, it’s crucial to consider this option deeply and from every angle before making any irrevocable decisions. Happily, a lack of proverbial wisdom about the subject doesn’t mean that its trailblazers haven’t provided a rich fund of practical knowledge for your careful consideration:

1. Clarify Roles, Responsibilities and Expectations

One of the most critical steps in starting a business with a friend is defining each partner’s roles and responsibilities. While it may seem unnecessary at first—especially if you share similar skills or interests—ambiguity in this area can lead to misunderstandings and resentment over time.

  • Assess individual strengths and weaknesses: Identify what each partner brings to the table. For example, one person might excel in marketing and sales while the other is better suited for operations or financial management.
  • Clearly define job titles and duties: Assign specific tasks to each partner to avoid overlap or confusion. This ensures accountability and allows the business to operate efficiently.
  • Set performance expectations: Agree on work hours, deadlines, and levels of commitment. If one partner is working full-time on the business while the other is part-time, this disparity needs to be addressed upfront.

By clarifying these roles early on, you can prevent disputes about who is contributing more or falling short of expectations.


How to Succeed in a Family Business — and Enjoy ‘Succession’


2. Establish a Shared Vision and Goals

A shared vision is the foundation of any successful business partnership. Before committing to a venture, sit down with your friend to discuss your long-term goals for the business.

  • Align on priorities: Ensure you both agree on the purpose of the business. Is it about making money quickly, building a lasting legacy, or pursuing a passion? Misaligned priorities can lead to friction later.
  • Define success: Success means different things to different people. For one partner, it might mean rapid expansion, while for another, it could mean maintaining a small but steady operation.
  • Anticipate future challenges: Discuss potential obstacles and how you plan to handle them. For example, what happens if one partner wants to exit the business or if financial difficulties arise?

Having these conversations early ensures that both partners are on the same page regarding the direction of the business.

 


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3. Draft Legal Agreements

Even if you trust your friend implicitly, formal legal agreements are essential when starting a business together. These documents protect both parties and provide clarity in case disputes arise.

  • Partnership or operating agreements: These agreements outline ownership percentages, profit-sharing arrangements, decision-making authority, and procedures for resolving disputes.
  • Exit strategies: Plan for scenarios such as one partner wanting to leave the business or sell their share. Specify how ownership transfers will work and whether remaining partners have first refusal rights.
  • Contingency plans: Address what happens in case of unforeseen events like bankruptcy, illness, or death. Having these measures in place can prevent emotional and financial turmoil.

A well-drafted legal agreement not only safeguards your interests but also minimizes misunderstandings that could jeopardize your friendship.

 


Shattering Myths: Tips to Successfully Launch and Run a Family Business


4. Communicate Openly and Frequently

Good communication is vital in any partnership but especially important when collaborating with a friend. While you may already have strong personal communication habits, professional relationships require additional layers of transparency and formality.

  • Schedule regular check-ins: Hold weekly or monthly meetings to discuss progress, challenges, and goals. This keeps both partners aligned and ensures issues are addressed promptly.
  • Be honest about concerns: If something isn’t working—whether it’s workload distribution or decision-making processes—address it immediately rather than letting resentment build.
  • Set boundaries between personal and professional life: Avoid letting workplace disagreements spill into your personal relationship. Similarly, don’t let personal issues interfere with business decisions.

Open communication fosters trust and ensures that both partners feel heard and valued.

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5. Evaluate Your Friendship’s Strength

Before diving into business together, take an honest look at your friendship to determine whether it’s strong enough to withstand the pressures of entrepreneurship.

  • Test your working relationship: Consider collaborating on a smaller project before committing to a full-fledged business venture. This allows you to assess how well you work together under pressure.
  • Discuss conflict resolution styles: Everyone handles disagreements differently. Talk about how you’ll approach conflicts—whether through mediation, voting systems, or third-party arbitration.
  • Assess life circumstances: Make sure both partners are in stable positions personally and financially before starting the business. If one partner is dealing with significant life changes (e.g., divorce or debt), it may not be the right time for them to take on additional responsibilities.


How to Find Sponsors for Your Startup: 5 Ideas


I’ve been through the friendship-to-business-partner transition, and it can be done. But it can also go wildly wrong. Keep firmly in mind that you’ll most likely never be able to completely separate the business from the personal. One of my firmest convictions as a lifelong entrepreneur is that those are artificial distinctions whether you’re partnering with your sibling or a college roommate. All business is personal, so make sure you’re ready to weather the storm before risking something as precious as a friendship.

Image by rawpixel.com on Freepik

 

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The post Do Friends Make Good Business Partners? 5 Things to Consider Before Risking It appeared first on StartupNation.

What’s the Cost of an Eco-Friendly Business Model for Startups? 4 Insights

2025-05-10 13:17:51

The growing awareness of climate change and pollution is pushing consumers to demand sustainable options. For startups, the idea of going green can be challenging, especially when budgets are tight.

Is it feasible to be both environmentally friendly and economically viable?


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Sustainability: A Genuine Corporate Interest or a Financial Obligation?

Adopting an eco-friendly business model is essential for future growth, customer loyalty and attracting talent. However, the underlying expenses present a unique situation. While many startup entrepreneurs recognize the need for sustainability action, there’s still a gap between long-term goals and short-term actions.

According to a Capgemini Research Institute report, only 21% of executives believe that the business case for implementing eco-friendly measures is clear.

In the same study, over half of respondents believe that sustainability efforts outweigh the benefits, suggesting that initiatives are obligatory and unprofitable. Consequently, many companies are reaping the benefits of adopting environmentally friendly practices, such as an increase in sales.


How to Create an Eco-Friendly Branding Strategy


Factors That Increase the Cost of Sustainability

What does it take to be an eco-friendly startup? These factors can contribute to the high costs.

1.     Initial Investments

Implementing greener practices can entail high upfront costs for equipment. For example, installing solar energy panels costs around $29,000 before incentives. It’ll take years before you can enjoy savings on energy bills and overhead costs.

2.     Production of Organic and Sustainable Materials

Eco-friendly product production is designed to minimize the environmental impact while still making them economically viable to produce. However, eco-friendly products can be more expensive due to the following reasons:

  • Stringent requirements: For example, organic cotton is more expensive because it’s grown without harmful chemicals or pesticides. Farmers must use physical, mechanical and biological management practices, leading to higher prices.
  • Labor costs: Many green companies believe in fair wages. When a consumer buys from a brand, they know that the product wasn’t made by exploiting laborers in developing countries. While ethically important, this can increase expenses.
  • Packaging materials: Eco-friendly cartons, cardboard, recycled paper and biodegradable plastics are some of the most common packaging materials. They may entail higher upfront costs but can save money overall by reducing waste disposal fees.
  • Supply chain complexity: Sourcing eco-friendly materials can mean working with more specialized suppliers, making the supply chain less efficient than partnering with conventional distributors.
  • Research and development: Developing and testing new offerings and production methods require extensive research. Later on, these costs are often passed on to customers.

Sustainable & Purposeful Startups: 12 Leader Insights


3.     Pricing Dynamics

Around 55% of consumers are willing to spend more on environmentally and socially aware brands. However, in the same study, 41% of customers cited cost as a major hurdle for making purchases. This presents a unique challenge for many businesses.

The key is to balance the product’s inherent value and the target audience’s willingness to pay the supplementary expenses. A successful pricing strategy must help people realize that the high cost is an investment in themselves and the planet.

4.     Eco-Certification Costs

A business must have the credentials to support eco-friendly claims. One of the most renowned eco-certifications is Leadership in Energy and Environmental Design (LEED®) — a globally recognized green building certification system. Fees can go up to tens of thousands of dollars, based on the inclusions. It has four certification levels:

  • LEED® Certified (40 – 49 Points): The base level demonstrating a commitment to sustainable building initiatives.
  • LEED® Silver (50 – 59 Points): This signifies a higher level of sustainability efforts, requiring more advanced implementations.
  • LEED® Gold (60 – 79 Points): A gold certification indicates a company’s comprehensive approach to green building design and processes.
  • LEED® Platinum (80-110 Points): This is the highest level of LEED® certification. These businesses are recognized as green building industry leaders.

Hospitality, health care and retail businesses may pursue this certification to build credibility and attract more customers. Other eco-certifications that may increase sustainability costs include B Corp Certification, Fair Trade Certification and Organic Certification and Accreditation.


Easy Ways to Implement Sustainable Business Practices


The ROI of Sustainability

Using an eco-friendly business model can be costly, but the long-term payoff is significant. Say you want to establish an eco-friendly packaging company. Implementing green practices can save more money by reusing and recycling materials. Minimizing the use of resources means your organization can reduce materials and expenditure production costs. Plus, it can help reduce landfill waste, which accounts for more than 15% of emissions.

Local and federal governments also incentivize businesses that actively engage in eco-friendly practices through green tax credits. These rewards can be leveraged for investments in renewable energy projects, green certifications and energy-efficient equipment.

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What Can Entrepreneurs Do?

Discover cost-effective strategies when building a sustainable business.

1. Implement Cost-Saving Strategies

Smart investments in waste reduction, efficient processes and durable equipment can lead to long-term savings. Simple changes — like switching to LED lights — offer returns that outweigh the initial expense. Automating tasks like customer service and invoicing frees up staff to focus on higher-value tasks.

2. Keep Innovating

Trends, technologies and consumer preferences are constantly evolving, and companies must adapt to stay ahead of the competition. Conducting regular market research and experimenting with new products can help entrepreneurs achieve a larger customer base.

3. Build a Strong Company Culture

Create a workplace environment that promotes creativity, collaboration and employee satisfaction. A solid company culture can attract and retain talent, driving your company to long-term, sustainable success.

Build a Business That’s Good for the Planet

Adopting an eco-friendly business model entails high upfront costs, but the long-term benefits surely outweigh the investment. Take action today and embrace sustainability as a core value. Soon enough, you’ll gain more customers, retain talent and enhance your brand’s image.

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Highlight Your Startup’s Unique Value Proposition in a Pitch Deck

2025-05-08 13:01:22

Unlock the full potential of your startup’s pitch with this straightforward guide that distills expert advice on articulating a unique value proposition. Discover strategies to stand out in the competitive startup landscape and learn how to effectively communicate the unique benefits of your product or service. This article provides actionable insights to refine your pitch deck, ensuring it resonates with investors and paves the way for your startup’s success.

  • Showcase Your Unique Value Proposition
  • Highlight AI-Driven M&A Integration Benefits
  • Define Problem and Differentiate Solution
  • Focus on Sustainability and Technology Blend
  • Show Emotional Connection with Customers
  • Use Key Metrics to Prove Value
  • Emphasize Clarity and Real-World Examples
  • Highlight Problem and Solution Clearly
  • Lead with Differentiation and Proof
  • Highlight Social-First Gaming Browser Features
  • Show Clear Problem-Solution Fit
  • Tell a Story of Transformation
  • Showcase AI-Improved Solar Technology
  • Highlight Unique Mental Health Platform
  • Use Visuals to Simplify Message
  • Illustrate Market Opportunity and Traction
  • Focus on Understanding, Defensibility, and Storytelling

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Showcase Your Unique Value Proposition

When we were putting together our pitch deck, we focused heavily on showcasing what makes our AI-powered assessment platform different and how it solves real-world problems for businesses. Our unique value proposition (UVP) was at the core of every slide. First, we made sure to clearly define the pain points in the hiring process—inefficiencies, bias, and time-consuming manual tasks. Then, we positioned Testlify as the solution that streamlines hiring while maintaining fairness and accuracy, something many hiring tools lacked.

 

We also focused on how our data-driven insights help HR teams make smarter, more informed decisions—offering not just a tool, but a competitive advantage for businesses. To make the pitch more compelling, we didn’t just talk about the features of the product; we showed real-world examples and data that highlighted the tangible impact we were making.

 

For other entrepreneurs looking to craft a compelling pitch deck, I’d say keep it simple, but impactful. Focus on your UVP, back it up with data, and always show the problem you’re solving in a relatable way. Make sure your storytelling is strong, and be clear about why your solution is needed in the market. Lastly, don’t be afraid to let your passion for what you’re building shine through—it helps investors connect with your vision.

 

Abhishek Shah, Founder, Testlify

Highlight AI-Driven M&A Integration Benefits

In developing our pitch deck, I focused on showcasing how our AI-driven platform directly addresses the complexities of M&A integration, a process I managed extensively at Adobe. Highlighting our unique offering, like the AI Assistant’s ability to provide real-time, context-aware guidance tailored to M&A tasks, was crucial in differentiating us from competitors. This feature alone has empowered integration teams to reduce task completion time by 30%, demonstrating immediate value and efficiency gains. 

 

Incorporating specific case studies, I illustrated how our customizable templates helped a mid-sized company streamline its post-merger process, achieving goals 25% faster. By emphasizing these tangible outcomes, potential investors could clearly see the transformative impact our technology has on achieving successful mergers. For entrepreneurs, back your value proposition with concrete data and real-world success stories to create a compelling narrative in your pitch deck.

 

Ernie Lopez, Founder & CEO, MergerAI

Define Problem and Differentiate Solution

We structured our pitch deck to clearly define the problem, differentiate our solution, and validate our approach with traction. We opened with data on job seekers’ challenges—fragmented tools, inefficiencies, and lack of guidance—then positioned our company as the first AI-powered job application management platform in the US, offering an end-to-end solution. Instead of listing features, we focused on our key differentiator: a one-click AI-driven system that actively increases job seekers’ success rates, contrasting it with traditional passive improvement tools.

 

To make our value proposition compelling, we backed our claims with market data and user engagement metrics, demonstrating demand and growth potential. We highlighted how our platform reduces job search friction, provides real-time resume optimization, and increases application effectiveness. Instead of telling investors why our product is great, we showed why now is the right time for AI-driven job search solutions and how our approach scales.

 

For founders crafting their pitch deck, clarity and impact are key. Start with the problem and make it specific. Define your differentiation in a single sentence. Use data to support every claim and emphasize why your market timing matters. A strong pitch deck isn’t about listing what you do—it’s about proving why your startup is necessary and inevitable.

 

Mohammad Haqqani, Founder, Seekario


The Power of a Well-Designed Pitch Deck for Your Business


Focus on Sustainability and Technology Blend

When crafting our pitch deck, I made our startup’s unique value proposition the centerpiece by focusing on our groundbreaking blend of sustainability and technology. I began with a narrative that clearly outlined the problem we were addressing, then introduced our solution as a transformative breakthrough. I shared a personal anecdote about the moment I realized our idea’s potential at a sustainability summit—it was a turning point that fueled my commitment to our vision.

 

I ensured every slide reinforced our core benefits, using vivid imagery and concise language to showcase how our approach dramatically improved customer engagement and even doubled our operational efficiency in early trials. My advice for other entrepreneurs is to keep your pitch authentic and focused. Avoid clutter by honing in on what truly sets you apart. A clear, story-driven deck not only captures attention but also builds trust with investors. Embrace your journey, let your passion shine through, and ensure every element of your presentation underscores the unique value your startup brings to the market.

 

Gauri Manglik, CEO and Co-Founder, Instrumentl

Show Emotional Connection with Customers

When we were crafting our pitch deck, I knew it had to go beyond just listing features and benefits. The key was to show why we were different and why people would care. We started with our story—how we saw a gap in the wedding gift market and why our approach was a game changer. Instead of just talking about the product, we showcased the emotional connection our customers have with the gifts we offer. I made sure to highlight how we weren’t just selling gifts, but helping couples create lasting memories. This immediately set us apart from other e-commerce businesses that were more focused on just transactions.

 

One piece of advice for entrepreneurs is to keep it clear and concise. People don’t have time to sift through pages of text. Each slide should be punchy and focused. Show the problem you’re solving, how you’re solving it, and why you’re the best at it. Include real-world data when possible. For us, we showed metrics like how our customer retention was 30% higher than the industry average. Keep it personal, keep it human, and don’t be afraid to show your passion. When people see how invested you are, it makes them want to be a part of the journey too.

 

Chris Bajda, E-commerce Entrepreneur & Managing Partner, GroomsDay


17 Lessons Learned from Pitch Deck Revisions for Angel Investor Feedback


Use Key Metrics to Prove Value

I carved our value proposition with one single slide that showcased our integrated production chain. I used a simple graph to display our 40% faster turnaround versus competitors and highlighted our 25% lower cost by using our own factory and logistics. I kept the slide clean with just three key numbers and eliminated any fluff to let the data speak.

 

Entrepreneurs should focus on one defining metric that sets them apart. Real, tangible figures win trust and eliminate ambiguity. A clear comparison with industry benchmarks makes the value undeniable. Minimalist design and data-driven visuals demand attention and build credibility. Keeping the message crisp ensures the pitch leaves a lasting impact.

 

That is the secret. The proof is in the figures.

 

Rick Newman, CEO and Founder, UCON Exhibitions

Emphasize Clarity and Real-World Examples

I focused on clarity, storytelling, and data to make my pitch deck compelling. Instead of overwhelming investors with jargon, I made my startup’s unique value crystal clear in one sentence—how we solve a major pain point better than anyone else.

 

One key slide I emphasized was the problem/solution fit, showing real-world examples of businesses struggling with organic traffic and how our AI-driven marketing tools provided measurable growth. Data was critical—I included key metrics, traction, and case studies to back up our claims.

 

My advice? Make every slide matter. Investors don’t want fluff—hook them with a strong narrative, show market potential, and prove traction with numbers. Keep it simple, but powerful.

 

Anatolii Ulitovskyi, Founder, Unmiss

Highlight Problem and Solution Clearly

When we built our pitch deck, we focused on one thing: clarity. Investors see so many pitches that if your value proposition isn’t instantly clear, you’ve already lost them. We made sure to highlight the problem in a way that felt real and urgent, then showed exactly how our solution made life easier for healthcare professionals. Instead of just talking about features, we focused on impact. How much time do we save clinicians? How does that translate into better patient care? Why is this a must-have rather than a nice-to-have?

 

One of the most compelling parts of our deck was using real user stories and data to back up our claims. It’s one thing to say, “Our AI reduces admin work.” It’s another to show a provider who used to spend three hours a day on documentation now getting that time back for patient care. That kind of proof makes your pitch stick.

 

For other entrepreneurs, my advice is simple. Get to the point fast. Make sure your problem and solution are crystal clear. Use real-world proof to show your impact. And don’t overload your deck with too much information. Less is more when it comes to making your message land.

 

Jamie Frew, CEO, Carepatron


Beyond the Pitch Deck: Evaluating Co-Founder Fit for Startup Success


Lead with Differentiation and Proof

For anyone building a pitch deck, I’d recommend leading with what makes you different, but don’t just say it, prove it. Whether it’s through data, market trends, or customer insights, grounding your message in facts makes it more compelling. Our core differentiator is transparency, so we made that the focal point of our pitch deck, and we backed it up with industry data showing why transparency is a crucial factor for customers in our space. 

 

One of the most effective elements was showcasing how lack of transparency has historically been a pain point in our industry and how we’re solving that gap. Framing it this way made our value proposition instantly relatable. This helped investors understand not just what we do but why it matters. We also structured our deck to reflect this principle: clear, concise, and free from unnecessary fluff.

 

Mads Viborg Jørgensen, CEO and Co-Founder, PatentRenewal.com

Highlight Social-First Gaming Browser Features

Our goal was to make it crystal clear why we’re different: a social-first gaming browser built for the new generation of gamers. To highlight this in our pitch deck, we focused on: 

  1. Led with the Problem and Our Solution – We showed how traditional browsers fail to cater to gamers and how Ray Browser integrates gaming, social features, and speed into one seamless experience. 
  2. Clear Differentiation – We emphasized what sets us apart: native game streaming, built-in chat, and optimized browsing for performance. 
  3. Traction & Growth Potential – Investors want to see momentum. To validate demand, we shared early adoption numbers, user engagement metrics, and testimonials.
  4. Monetization Strategy – We outlined how our browser generates revenue, from premium features to partnerships with gaming platforms.
  5. Strong Visuals – We kept slides minimal and visually engaging, using screenshots and infographics rather than walls of text.

Advice for Other Entrepreneurs Crafting a Pitch Deck: 

  1. Start with the “Why” – Investors need to understand the pain point you’re solving and why it matters. 
  2. Keep it Simple & Visual – Your deck should be easy to digest at a glance–avoid information overload. 
  3. Show Traction Early – If you have users, revenue, or partnerships, highlight them early in your pitch. 
  4. Make the Business Model Clear – Investors need to see how your startup will generate and scale revenue. 
  5. Tell a Story – Data matters, but emotion drives decisions. Make your pitch compelling by showing the journey and vision behind your startup. 

When pitching, our focus was on how gaming is evolving and why a browser tailored for gamers is the next big thing. The key is to make your startup’s mission unforgettable!

David Diaz, Co-Founder and Chief Commercial Officer, Ray Browser


What You’re Doing Wrong In Your Pitch Deck


Show Clear Problem-Solution Fit

I built my company from the ground up, bootstrapped it while in college, and later secured $1.2M in funding. Our pitch deck played a huge role in that. I’ve pitched to top investors, and I know what grabs attention fast.

I focused on one thing: why my business had to exist. Too many founders drown investors in features. I made it personal. New moms waste 1,400 hours a year researching baby products. We solve that. One line, instant problem-solution clarity. When investors feel the pain point, they pay attention. The key is making them care.

Then I showed proof. No fluff, just hard numbers. Investors don’t just want a cool idea. They want traction. I highlighted our 245% growth, 14% monthly revenue jumps, and key partnerships with Fisher-Price and Mattel. Investors saw momentum and upside. A strong idea with no traction is just a concept. A growing business is investable.

I kept it clean. No walls of text. No cluttered slides. Investors make decisions fast, so I made it easy for them. Every slide had one clear message. The business model? Simple. The market size? Huge. The vision? Unshakable. The goal isn’t to answer every question, it’s to get to the next meeting.

Zarina Bahadur, CEO and Founder, 123 Baby Box

Tell a Story of Transformation

A powerful pitch is about connection. In crafting my pitch for Yogilachi, I didn’t just present a fitness program—I told the story of how holistic movement, mindset, and energy alignment transform lives. My advice? Focus on the experience you create for your customers. Investors want to see your unique edge, but they also need to feel the demand for your solution. Use clear, high-impact messaging, compelling visuals, and proof of traction. And remember, confidence is key—when you fully believe in your vision, others will too.

Stephana Johnson, Founder, Powerhouse Leaders


5 Practical Tips on Creating a Pitch Deck for Your Startup


Showcase AI-Improved Solar Technology

Our pitch deck was built around showcasing our AI-improved solar technology. By integrating advanced artificial intelligence, we’ve transformed standard solar panels into dynamic energy management systems, setting ourselves apart from the traditional solar market. This innovative approach allowed us to present our technology as not just sustainable but smart, focusing on how it empowers homeowners through increased energy efficiency and customization.

 

For instance, we highlighted a case where our systems reduced energy costs by up to 40% for a local community in Wellington. This example provided tangible evidence of our technology’s impact, framing our AI as a tool that learns and adapts to consumer habits. Investors appreciated the clarity and real-world applications, which turned an abstract AI concept into a concrete benefit.

 

I suggest entrepreneurs pinpoint how their technology or service offers a significant leap over current industry norms. Use specific success stories that demonstrate value—like savings or efficiency gains—directly to potential clients or end users. Tailoring the pitch with clear, relatable data ensures your value proposition is both compelling and memorable.

 

Spencer Gordon, CEO & President, NextEnergy.ai

Highlight Unique Mental Health Platform

When crafting my pitch deck, I focused on highlighting our unique position as a HIPAA-compliant, all-in-one platform custom specifically for virtual mental health support groups. I backed up this value proposition with data-driven evidence, demonstrating that using our platform led to a 30% improvement in health outcomes for customers. This showcased real-world impact and resonated with investors looking for tangible results in health tech.

 

A critical component was emphasizing how our platform addresses provider burnout by streamlining administrative tasks and offering secure, private virtual group sessions. I shared a case study of a behavioral health hospital in Los Angeles that saw a 70% improvement in participant emotional stability and a 90% attendance rate due to these features. This not only underlined our solution’s effectiveness but also painted a vivid picture of how we solve concrete pain points in the mental health space.

 

In my pitch deck, storytelling was key. I shared my personal journey of dealing with anxiety and the gap I found in mental health support. This narrative helped humanize the pitch, connecting our mission to my personal drive, adding credibility and emotional depth to the presentation. When developing your deck, intertwine your personal experiences to create a compelling and relatable narrative that speaks to investors’ values and objectives.

Tamar Blue, Chief Executive Officer, MentalHappy

Use Visuals to Simplify Message

Sometimes, complex technology or services can be difficult to explain simply. In my pitch deck, I used visual metaphors and infographics to make these ideas more digestible for the audience. These visuals allowed investors to grasp the concept instantly without getting bogged down in technical jargon. 

 

The best advice I can give to other entrepreneurs is to use visuals to simplify your message and make it more relatable. A well-crafted diagram or analogy can speak volumes, making your pitch more memorable and accessible. Visuals help break down barriers and let your audience see the potential of your technology right away. They can be the key to making your idea click with investors and partners.

Samuel Charmetant, Founder, ArtMajeur by YourArt

Illustrate Market Opportunity and Traction

We began with a very strong market opportunity, supported by powerful data. Using a graphics-heavy presentation, we illustrated, among other things, that the total addressable market (TAM) for premium dietary supplements was expected to grow to $230 billion by 2027, and zoomed in on our serviceable obtainable market (SOM) from there, specifically targeting health-conscious consumers who were willing to pay for clean, science-backed products. 

 

We also highlighted current market trends—the increased demand for immune support and gut health—which were a great fit for our product line. We illustrated not only the number of opportunities but the urgency of the need for our solution by basing our pitch around data and trends. This methodology allowed investors to visualize scalability and revenue potential.

 

Showing our traction and milestones was another very important aspect of our pitch deck. Right away, we highlighted essential accomplishments, like a 300 percent increase in revenue, year-over-year, in year one and partnerships with respected influencers in the wellness space. We also shared our roadmap and the next phases through product launches and entering new markets. For example, we announced our intention to implement a subscription model, expected to drive a 25% increase in revenue.

 

My advice for fellow entrepreneurs is to look for what differentiates your startup and make sure to have proven results and a vision going forward. Investors want evidence that you’ve gained traction and a plan for how you’re going to keep the momentum going. An effective pitch deck is more than a flashy design—it’s the story of a market opportunity, evidenced success, and a path to growth.

 

James Wilkinson, CEO, Balance One Supplements

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Focus on Understanding, Defensibility, and Storytelling

I have three things that seem to be generally compelling to our investors when they see pitch decks.

 

First, Ease of understanding.

 

The best product does not help you if the people reading your pitch have no clue what exactly you mean, or do, or who for. Long-stringed, buzzword-layered explanations are particularly bad. Keep it concise, maybe even add some graphics to illustrate your point if you can. My rule of thumb: If my mom understands it, I’m good to go.

 

Second, defensibility.

 

Great stuff you innovate, but how do you defend it against other competitors? What is your unfair advantage? And how exactly do you differentiate that claim from this competitor who already does similar? For those who really know the market vertical you play in, seeing a defensible value prop will be like a dopamine shot.

 

Third, storytelling.

 

People understand stories. If you can have your whole pitch deck form one coherent narrative, that is logical to follow with a flow from one to the next, you can force “aha” effects in your audience, without needing to tell them what the “aha” is. This is especially true for pitching competitions, where audiences probably already have a sensory information overload and only limited time to digest the data presented.

 

If you use these three as a rough guide, the whole rest of the deck falls pretty much in place.

Make sure to show it to some trusted people to test and reiterate a few times.

 

Andreas Rüegger, Lead Business Development, zevvy

 

Image by DC Studio on Freepik


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