December
9, 2020

6 min read

Opinions expressed by Entrepreneur contributors are their own.

As one gets older there are things that are more difficult to do for the first time , and not so much because of decreased abilities, but rather because of the fear of risks. For example, a child riding a bicycle does not think about the scrapes on his elbows and knees that he will surely have, but about the experience it will bring. If he falls, he will most likely cry and soon get up to pedal again. The same goes for undertaking. It’s relatively easy to do it as a youngster when we are full of energy and responsibilities do not overwhelm us, unlike someone who is close to quiet retirement.

That is the case of Bico Moda and its creator, Margarita Pereira , “my mom”. Graduated in Economics, teacher and university professor for more than two decades (curiously in matters related to business strategies), at 57 she opted for entrepreneurship. In reality, the decision was driven by her three daughters, as she did not dare to take this step. As a good baby boomer, she tends to seek security … and that they are part of a generation that had successful entrepreneurs as parents and millennials as descendants who believe they can do anything.

Her steady job is teaching undergraduate degrees, although her true talent is design and tailoring. When my sisters and I were little, she made us spectacular dresses, but we grew up and gave up this hobby, which she took up again six years ago, with the arrival of our first grandchild. It was then that she bought a new sewing machine, needles and scissors, and we set up a small workshop in the house. The first great challenge was to find distributors of quality children’s fabrics, because in Mexico there are few and they are usually very expensive. It was thanks to Google that he found a small businesswoman in Spain, from which today a large part of her supplies is imported and with whom she has created a very good relationship.

^{Image: Courtesy Bico Moda}

Taking up this activity not only excited her to the point of sleeping every day after two in the morning sewing and knitting, but it also prompted her to look for trends and new models. Invariably, acquaintances and strangers asked my sister where she had bought this or that garment that one of her children wore, to which she proudly replied “my mother made it”. In this way, he discovered an opportunity in the market and began to make custom products, mainly for close people. Combination sets for siblings, personalized kits for newborns, Christening gowns, suits for pages, accessories for strollers, frogs with the baby’s name … things almost impossible to buy in a store.

This first success led to the creation of a commercial image. The name chosen was Bico Moda, and the logo is accompanied by an illustration of a Siberian Husky. The reason is simple and totally sentimental: our dog was called Bico, a Galician word that means “kiss” and that made perfect sense with a children’s brand. This was followed by the choice of boxes and bags, as well as the design of ribbons and size cards with garment care instructions. Each of the elements tries to show that it is a personalized experience with great attention to detail; We even wash clothes with special baby detergent, so when you open it, the packaging smells delicious.

Because opening a physical space is very expensive and we do not have enough inventory to enter a store (since most of them are made to order and made to measure), the natural sales channel has been through the website , as well as Facebook and Instagram . The great advantage of these platforms is that we can know the interests of the users and reach a very segmented audience, something especially important for a niche business like this.

^{Image: Courtesy Bico Moda}

Although it is a young brand, we have faced several difficulties, including the pandemic, which generated a change in consumer habits and problems in obtaining fabrics, as shipments from Spain were suspended for some months. Also, in this short time we have made a mistake by launching promotions and products that failed and we participated in bazaars where we barely recovered the investment. As you might imagine, this has also generated doubts and insecurities in its creator, who, like every entrepreneur, has moments when she mistrusts herself. It is true: numerous challenges have come and will come to transform it into a professional and profitable business, but the dedication that you put into it is reflected in each product, and that is valued by the client.

In her classes – which, due to the pandemic, takes Zoom, which allows me to listen to her many times – my mother constantly encourages her students to undertake and innovate. She, almost without realizing it, is doing it, despite her age and any other real limitations, but above all imaginary, that she may have. Finally, his story is one more lesson that it is we ourselves and not age or context who decide what is possible and what is not possible.

December
8, 2020

7 min read

Opinions expressed by Entrepreneur contributors are their own.

In the professional world, concepts such as VUCA ( Volatility, Uncertainty, Complexity, Ambiguity) became fashionable again; the curve of change; resilience and others of the type. All good theoretically, but in practice difficult to assimilate. From the beginning we have anxiously sought a firm ground, something that helps us overcome the economic-existential crisis between pajamas with jackets, faulty joints, massive layoffs and loss of loved ones. Chaos was present.

^{Change curve / Source: The Persuasion Institute of The Americas}

Nothing has really changed since that beginning, but our mind is more used to the VUCA: the neocortex is no longer sequestered by the amygdala, reason returns little by little and on the curve of change we are already in the decision phase (see figure above ). Now we can ask ourselves again with more probability of success how we can be more resilient.

The answer lies in the two certainties that COVID 19 leaves us: teleworking and teletraining .

Tele-training is targeting in a very “Darwinian” way those who best adapt to the environment, and part of that reality is the lack of both time and desire to take courses.

Let’s review two references on these issues and their opinion.

The Netflix of corporate training

Martha Forero is founder of UBITS, a startup of corporate training that is part of Y Combinator, the accelerator that has promoted companies such as Airbnb and Dropbox . Martha and her organization are betting on a new generation of people who require agility and variety:

“UBITS is the Netflix of corporate training, a microlearning system through short courses (bits) online. When we started UBITS, we observed that in companies there is a very large gap in training: 30% of the budget is allocated to training managers and 70% to the rest of employees, who are 97% of the organization. That money is allocated by the HR manager or director according to what is considered important. We wonder what would happen if the HR director provided more high-quality options that were tailored to the needs of each person and that were universally accessible ”.

“The UBITS catalog includes more than 460 courses whose themes allow the development of soft, strong and technical skills. For the user, it is much more attractive to see a display of possibilities that adapt to their tastes and needs, as in Netflix it happens with movie genres, in addition to being presented by pure stars : company presidents, consultants and experts in each subject . All courses are absolutely practical and without theory. We are the university of bits, small courses ”.

The economic crisis caused by the pandemic caused the resources of many companies to be reduced in several areas. Such is the case of corporate training, an area that 44.6% of the organizations surveyed in November by UBITS reduced their budget. Similarly, the future seems governed by skills that were not so important before, but that the situation gave them a new impetus. The study ‘The future of work in Latin America 2020’ found that more than half of the companies consulted (54.5%) assured that they expect to train their workers in softskills , such as leadership, decision-making and assertive communication.

Strategies

Michael Porter, the great strategy guru, talks about three generic strategies one should consider in any business: differentiation, focus, and price leadership. UBITS represents the different way of tele-training, but what if you add a focus on softskills to tele-training ?

It would also be wise to consider the stark reality that is definitely a certainty in this new age, telecommuting, and if we get even more realistic, layoffs. Who is your hero in business? Branson, Musk, Gates, Jobs … or it could be something more national like Slim or Aramburuzabala: What is the basic advice that any of them would give you?

Follow your passion. If you’re good at it, work on it or get started. “

Who works with a strategy of focus and passion to undertake in softskills issues?

The factory of passionate entrepreneurs

Alvaro Gordoa is rector of the Public Image College, author of the book The HABLA method , famous influencer in social networks and invited in various media as an expert on the subject of public image (Martha Debayle, La Academia, among others). The institution that Alvaro leads, this year celebrated its 20th anniversary.

“The College of Public Image is focused on entrepreneurs who follow their passion and work at it. Of course, studying for a bachelor’s, master’s or doctorate in this fascinating area of knowledge can be very useful in any profession, but we think of the school as a factory for entrepreneurs; of consultants working on what they are really passionate about. In this field there are many opportunities to generate your own employment. You can advise from a politician to an executive, or even an artist on various communication issues such as public speaking, the correct way to express the essence when dressing and the effective way to behave in different professional environments. Also, our graduates successfully advise companies on their environmental, audiovisual and visual image to provoke what we technically call a positive unified collective response ”.

“What we designed environmentally and pedagogically as the most beautiful university in Mexico, we also thought from the beginning as tele-training in our Global Campus. We were, without a doubt, the first university to use systems that allowed us to teach live remotely: we used Zoom long before it was famous. Ten years before the pandemic, our professors were already prepared for it, and since then, students from all over the world have learned to be entrepreneurs with a focus on their passion ”.

“You can perfectly be a public image consultant from home if you wish; there is a great blue ocean of telecommuting opportunities to help countless clients ”.

Both in the corporate environment and in self-employment and entrepreneurship, teleworking is here to stay. According to UBITS research, 66.2% of organizations are considering implementing remote work in their company. Of this group, 49% would do it in a mixed way (with face-to-face work in the office during some days of the week); while 40.4% would use the ‘coworking’ modality (the worker goes to the office only on the days that they deem necessary). And only 10.6% would implement remote work 100%.

The reality changed. Volatility, uncertainty, complexity and ambiguity are less so if you are a leader on the change curve (see figure above). Build your differentiation strategy or approach based on these two certainties: teleworking and tele-training. They are part of that firm ground you were waiting for to make smart decisions and embrace success.

December
2, 2020

6 min read

This story originally appeared on StockNews

The ascent of technology stocks that began at the March lows has been nothing short of incredible. The leading technology companies have seen their market caps’, influence, and power expand over the past months. COVID-19 has been the worst health crisis the world’s faced in a century. The virus has had a silver lining for technology companies. They provided the tools and services that allowed some normalcy to continue as people sheltered at home and isolated themselves. The coronavirus has hastened the technology industry’s growth as retail stores closed, people are working from home, and a new normal emerged fueled by technological innovations.

Technology shares have risen to dizzying levels, but many market participants continue to buy. The leaders of these companies face significant pushback from government officials and regulators in the US and Europe. They have expressed growing concerns that the control of data has allowed for an unacceptable level of influence. Cash hordes and trillion-dollar-plus market caps create an environment where antitrust issues impede competition have risen to the surface as we head into 2021.

Meanwhile, the legislators and regulators face a catch-22 situation. Any significant crackdown that breaks up the technology leaders or gets in the way of innovation may hand the leadership role to the Chinese. China’s political structure allows for monopolies as the nation has tight control over every aspect of its economy.

Valuations are at sky-high levels

Since the March low, the leading technology stocks recovered made new record highs and moved to levels where valuations expect a continuous stream of earnings and growth rate. The FAANG stocks, including Facebook (FB – Get Rating), Amazon (AMZN – Get Rating), Apple (AAPL – Get Rating), Netflix (NFLX), and Alphabet (GOOG – Get Rating), had a combined market cap of over 5.80 trillion as of the end of last week. All of the FAANG stocks have soared since the March low.

The Invesco QQQ Trust (QQQ) holds a portfolio of the leading technology companies that comprise the NASDAQ 100.

The fund summary and top holdings include:

QQQ has net assets of around $130 billion, trades an average of over 48.15 million shares each day, and charges a 0.20% expense ratio.

NASDAQ QQQ Invesco ETF (QQQ)

As the chart shows, the QQQ rose from a low of $164.93 to $299.01 at the end of last week, a rise of 81.3%.

The QQQ holds shares in the leading technology stocks, including the FAANG stocks and Tesla (TSLA). TSLA shares were over eight times higher than the March low as of the end of last week.

Innovation continues- Earnings could face roadblocks

Technological innovation will continue, but the trajectory and growth of earnings are more than likely to slow. Expecting the same rate of share price appreciation would require profit levels that are not likely in 2021 and beyond.

Increased regulation under the Biden administration and headwinds from the US Congress and European Commission could weigh on earnings over the coming years. Some politicians would like to see the leading technology companies broken into smaller pieces to foster more competition. Meanwhile, higher corporate tax rates and closing loopholes will weigh on earnings. As the global economy continues to suffer from the worldwide pandemic, increasing prices to cover the tax liabilities is not an option for the tech leaders.

We will continue to see new products and services from the technology sector that will revolutionize our lives, but earnings could weigh on share price growth after the incredible appreciation in 2020.

Rising taxes, regulations, and the potential of a breakup of the largest companies could set the stage for a substantial correction in the technology sector. However, the US and European politicians are likely to tread lightly for three reasons.

China could take control if regulators take a hard line on technology in the US and Europe

When it comes to technology, China is hot on the heels of the US technology industry. Any governmental roadblocks to US companies would only clear the road for Chinese companies to take a dominant role.

The Chinese government has allowed entrepreneurs in the technology sector to flourish, but the government keeps a tight grip on the sector as its political system considers technology innovation a matter of national security, and its goal is to dominate on a global basis. A perfect example is Amazon’s competitor Alibaba Group Holdings (BABA).

While Amazon.com, has a market cap of over $1.6 trillion, BABA is hot on its heels with its online and mobile commerce business. BABA’s market cap was at the $742.2 billion levels at the end of last week. Chinese tech companies could challenge all of the US and European tech leaders over the coming years if regulators decide to crack down on the sector.

A powerful lobby in Washington DC

The technology companies have established a powerful lobby in Washington, DC, and Europe to protect the industry. A November 21 article in The Guardian outlines the lobby’s power and influence and its impact on the incoming Biden administration. The title says it all, “If you think Biden’s administration will rein in big tech, think again.”

The President-elect appointed former employees of Facebook (FB) and Amazon (AMZN) to his transition team. Tom Sullivan, from Amazon, is headed for a senior position at the State Department. Mark Schwartz, also from Amazon, is heading for an appointment at the Office of Management and Budget along with Divya Kumaraiah from Airbnb and Brandon Belford from Lyft. These are just a few of the technology sector executives heading for government jobs in the Washington beltway.

A moderate Biden administration will tread lightly because of a fragile economy

With the US economy suffering from the coronavirus and another massive stimulus package on the horizon, President-elect Biden and his team could call off the dogs in the House and Senate regarding onerous regulations on the technology sector. Corporate taxes are likely to rise, but if the Republicans maintain control of the Senate, it could temper corporate increases in 2021 and beyond.

We are likely to see a bit more regulation and higher taxes on the tech industry over the coming two years before the US midterm elections. However, the incoming President’s team’s composition suggests that it will tread lightly because of the fragile economy and ties to the companies that are currently in the crosshairs of some politicians. Moreover, handing the technology power to the Chinese is a matter of national security for the US and Europe, which is a powerful argument for the advocates of the status quo in the technology sector.

Want More Great Investing Ideas?

9 “MUST OWN” Growth Stocks for 2021

Investors: We Have Much to Be Thankful For! (Market outlook and trading strategy plan from Steve Reitmeister)

5 WINNING Stocks Chart Patterns

AMZN shares were trading at $3,162.64 per share on Tuesday morning, down $5.40 (-0.17%). Year-to-date, AMZN has gained 71.15%, versus a 15.41% rise in the benchmark S&P 500 index during the same period.

November
30, 2020

8 min read

Opinions expressed by Entrepreneur contributors are their own.

Editor’s Note: The following excerpt is from the book Total Alignment by Riaz Khadem and Linda Khadem.

The three reports that every manager should use are part of a reporting system that was first described in our book, One Page Management . They are ideal for keeping track of alignment in an organization. Let’s take a closer look at what those three reports can do for you and your teams.

The Focus Report

^{Report: Depositphotos.com}

The Focus Report shows an employee’s performance in relation to the actual status of each of the process indicators assigned to him. The “state” of those indicators is the number that shows the result of the indicator in the previous reporting period. For example, suppose the metric on a scorecard is “Customer Returns Rate” and the return rate for April was 3 percent. Then the status of this metric in your May Focus Report would show that employee performance is 3 percent in the status column. This lets you know how your employee is performing so you can help align their efforts to improve the indicator.

When your status is assessed against some agreed upon criteria, you can determine whether it was “good” or “bad.” We like to use goals to establish those criteria. So for each critical factor on a scorecard, you will set three levels of objectives: minimal, satisfactory, and outstanding. The minimum target is the level below performance that is not acceptable. Satisfactory is the level that would make you feel good about your performance, and outstanding is the level of excellence.

For some factors, such as “number of units produced”, more is better. For other factors, such as “scrap percentage,” less is better. This is why you should set a “minimum or maximum target”. In this way, you can identify acceptable performance as being above the minimum level or below the maximum level, depending on the type of factor. With these criteria, you can determine three scenarios:

1. Excellent performance when the status is better than the pending objective.
2. Good performance or positive exception when status is better than satisfactory goal.
3. Poor performance or negative exception when the status is worse than the minimum target.

Besides “status” and “targets”, other important information is “trend”. The trend shows whether an employee’s status is getting better or worse. For example, your performance last month could be worse than the minimum, but the trend in the last five periods could be good. On the contrary, its performance last month could be better than satisfactory, but the trend could be bad. This is useful information.

Completing focus reports for your employees is a rewarding exercise. It allows you to reflect more deeply on the success factors you have assigned to them, the formula that defines them, the data that goes into your calculation, and the positive action they will require.

The Feedback Report

^{Image: Depositphotos.com}

The second report is called the Feedback Report. This report is a summary of the “good news” and the “bad news” based on the status of your employee’s indicators. It illustrates the factors that have fallen below the unacceptable range in the state and those that are above the satisfactory level. Those that fall between the two are considered in the acceptable range.

This report also illustrates the number of time periods in a row where the factor has been better than the satisfactory goal or worse than the Min / Max goal. At a glance, you can see the feedback on your performance. You try to build feedback reports for each of your employees. Look at each factor on your Focus Report and compare their status to the goals you set for them. Consider whether it is better than the successful goal or worse than the minimum / maximum goal. You also need to take into account how many times in a row this factor has performed better than the successful goal or worse than the minimum / maximum goal.

The Management Report

^{Image: Depositphotos.com}

As a manager, you will need to know the reality of what is happening in your pyramid of responsibility, from the bottom up and from the top down. To do this, you can study the individual focus reports of those who report to you directly and indirectly, although this could be time consuming and ineffective. To provide you with performance insights in a more useful way, there is a third report, the Management Report, which gives you a quick overview of the highlights of the Feedback Reports from everyone in your accountability pyramid, the people who inform you directly and indirectly.

This approach is “management by exception”. What does that mean? People who perform within the acceptable range will not appear in this report; they are doing a satisfying job, and at this point you have little need to address their individual performance. But star performers as well as those who are having challenges will show up. You are looking for the exceptions at both ends of the performance spectrum in this report. Obviously, reporting on all exceptions in the Management Report would saturate this report and reduce its effectiveness. Therefore, an escalation scheme is built into the reporting system to determine which exceptions are reported upstream.

Based on a customizable escalation rule, positive and negative exceptions increase when they are recurring. The rule we recommend is two or more consecutive exceptions worse than the Min / Max level or above the satisfactory level to start moving up to the next level. Beyond that, the speed of the climb depends on the importance of the factor. Some can quickly climb to the next level after three consecutive exceptions and others more slowly.

The rationale for the escalation rule is that, for example, a supervisor who has a rebate problem may have little time to resolve it. If not, notification of the problem will escalate. The boss has a predetermined period of time to help him fix it. If the problem continues, the next level is alerted and so on. If it’s a serious problem and no one seems to have the answer, then the most important person in the organization finds out. Most likely it is a systemic problem that is beyond the control of the supervisor who is at fault. When the problem appears in your Management Report, you know that everyone has tried to fix it. Now you have the opportunity to step in and solve the problem.

You’ll get good news too: with the Management Report, performance is transparent. Outstanding performance is reported upward and the right person is recognized.