You've heard the terms "Diversity, Equity, and Inclusion" (DEI) circulating in workplaces and public discourse. But how often do we truly pause to consider what "equity" really means, and how it differs from "equality"? Many people mistakenly believe DEI is about giving certain groups an "unfair advantage" or simply treating everyone the same. However, at its core, DEI is fundamentally about promoting equity, a concept far more nuanced and impactful than mere equality.

Let's break it down.

Equality: The Same Starting Line

Imagine a group of people, all trying to watch a baseball game over a tall fence. If we applied the principle of equality, we would give everyone a single, identical box to stand on. Sounds fair, right? But what if some people are naturally taller, or shorter? The taller individuals might see perfectly, while the shorter ones still struggle to glimpse the game. While the treatment was equal, the outcome was not. Equality aims to provide everyone with the same resources or opportunities, assuming everyone starts from the same place and has the same needs. In reality, this often fails to address pre-existing disadvantages or systemic barriers.

Equity: The Fair Chance to See the Game

Now, let's apply the principle of equity to our baseball game scenario. Instead of giving everyone the same box, we would assess each person's needs. The tallest person might not need a box at all. The person of average height might get one box. And the shortest person might get two or three boxes, just enough to see over the fence, ensuring they have the same view as everyone else. Equity acknowledges that people start from different places and have different needs. It's about distributing resources and opportunities proportionally to ensure that everyone has a fair and just chance to reach an equal outcome.

Why This Distinction Matters for DEI

DEI initiatives aren't about lowering standards or favoring one group over another. They are about systematically dismantling barriers and providing targeted support where it's needed most to create genuinely level playing fields.

• Addressing Historical Disadvantage: Many groups have faced historical and systemic discrimination, creating entrenched disadvantages in areas like education, wealth accumulation, and career progression. Equity-focused DEI seeks to address these historical imbalances.
  
• Mitigating Unconscious Bias: We all carry unconscious biases that can impact our decisions in hiring, promotions, and team assignments. DEI programs implement strategies like blind resume reviews, structured interviews, and bias training to ensure decisions are based on merit, not bias.
  
• Creating True Belonging: An equitable environment ensures that everyone, regardless of their background, feels valued, respected, and has the opportunity to contribute their full potential. This goes beyond just having diverse faces in a room; it's about diverse voices being heard and equally considered.
  

The Bottom Line

When we talk about DEI, we are striving for a society and workplaces where everyone has a genuine opportunity to thrive. This isn't achieved by simply treating everyone the same, but by understanding and responding to individual and systemic needs. Promoting equity means working towards a future where true potential, not arbitrary factors or historical disadvantage, determines success. It’s about ensuring that everyone, regardless of their starting point, has a fair shot at seeing, and participating in, the game of life.

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When I started this blog I wrote five posts titled “Success Formulas – One through Five, which culminated with Session Five  your presentation to potential investors, be they angel investors or VCs.  Because an entrepreneur only gets a few opportunities, sometime only one, to make a presentation before real potential investors, there are many myths that entrepreneurs are asked to believe in order for their presentations to be successful and result in investment.  The word myth is a clue that these things aren't true. 

Reid Hoffman, co-founder of LinkedIn, and who some have called, arguably  the most successful angel investor in the past decade, wrote and posted a presentation on Slideshare,  identifying what he calls the 7 Myths of Startup Financing.  I found this presentation fascinating since it is presented by someone successful on both sides, that of and entrepreneur looking for financing and on the other side as an investor looking for an opportunity for a super return on his investment.   Mr. Hoffman’s presentation was taken from his blog post “What I Wish I Knew Before Pitching LinkedIn to VCs”, at reidhoffman.org.   Here are his 7 Myths of Startup Financing without edit or comment.

MYTH: The startup financing process is about one thing — money.
TRUTH: A successful financing process results in a partnership that delivers benefits beyond just money.

MYTH: If your team is strong, show the team slide early in your pitch.
TRUTH: Open your pitch with the investment thesis.

MYTH: All investment pitches have the same structure.
TRUTH: Decide whether your pitch is a data pitch or a concept pitch.

MYTH: Avoid bringing up anything that might paint your business as risky and decrease investors’ confidence.
TRUTH: Identify and steer into your risk factors.

MYTH: Arguing that you have no prospective competitors is a strength.
TRUTH: Acknowledge all types of competition and express your competitive advantage.

MYTH: Don’t compare yourself to other companies because you think you’re unique.
TRUTH: Pitch by analogy.

MYTH: Focus on today’s pitch. The future will take care of itself.
TRUTH: Think also about the round after the one you’re currently raising.

Keep these myths and the real truth in mind as you prepare your presentation decks after going through the Success Formulas process. 

Happy hunting.

As we end one year and look forward to a new one it is always a time of reflection on the victories and the defeats, the accomplishments and the failures, the reaching of goals or the failure to reach them, the profits or the losses.  If there were more victories than defeats, more accomplishments than failures, we reached more goals than we failed to reach, and we ended with a profit and not a loss then we had a great year.  Even if the opposite of all these things is true and we grew as people and we were able to help our employees, our customers, and our families it was still a good year.  Even if our business failed in 2014 and we still have the drive to try it again, this time armed with more knowledge, it was still a good year.

Since I believe that you are looking at 2015 with optimism, I wanted to give you some things to think about as you go into the New Year.  In thinking about what to write to you I ran across a blog post in the Huffington Post written by John Swanciger, CEO of Manta.   (Read the entire post Here!!)  In it he says, and I agree that, "Changes in technology, growing cybersecurity concerns, and shifts in the political landscape are all top of mind as small business owners enter 2015."

Here are some excerpts from that post:

Changes in Washington, D.C.

With major Republican wins in the November midterm elections, a majority of small business owners across the political spectrum are optimistic there will be policy changes benefiting small businesses.

You know the important role that small business plays in the nation's economy, and so does, government from the smallest township to Washington, DC.  Small businesses hires the most employees, is most innovative, and is most optimistic about the future.  Even though we will face challenges in 2015 there will also be fantastic opportunities.  If you're prepared 2015 will be your best year yet.  Work with your consultants and advisers if you don't have in-house expertise in specific areas.  You as the owner, President, or CEO, have the ideas, the drive, and have taken most of the risks, but that doesn't mean that you know everything that you need to know in order to succeed.  One of the most important decisions you can make in 2015 is to decide to get expert help when you need it.

I pray that 2015 is a breakout year for you even if 2014 was highly successful for you.  Who says that you can't more than one breakout year.  As long as you use the knowledge that you acquired in 2014 and all the years before and you are prepared to use all the expertise that you can get in 2015 you will be poised for success in the New Year beyond.  

What is Factoring? 

A financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital
        
One of the oldest forms of business financing, factoring is the cash-management tool of choice for many companies. Factoring is very common in certain industries where long receivables are part of the business cycle.

When a small business needs a loan, there are a number of different options available to them.  These options depend on the age of the company, credit history,   assets and industry.  Companies in high growth, high-profit industries, can go after venture capital. Established companies, with good credit, can try for a bank loan. Small businesses who have not been in business long, have average credit and few assets will  find it very difficult to get money loaned to them, whether from a bank or from private investors.  Even if you have an above credit score, have a record of success you still may not be able to get a small business loan.

Factoring , also called accounts receivable financing or invoice funding is an option. This type of financing  requires that a company has customers who typically pay on time and have outstanding invoices.   Factoring may not make sense for a company that sends out thousands of small-denomination invoices, because of the service fees a factoring finance company may assess for reviewing each invoice for risk.

Some businesses use factoring to get started. Banks focus on a business’s creditworthiness in considering whether to make a loan, factors look at the financial soundness of a business’s customers.  As a result, firms with little to no or scant credit history may be able to sell their invoices

Here’s how it works

In a typical factoring arrangement, your company makes a sale, delivers the product or service and generates an invoice. The factor buys the right to collect on that invoice by agreeing to pay you the invoice's face value less a discount--typically 2 to 6 percent. The factor pays 75 percent to 80 percent of the face value immediately and forwards the remainder (less the discount) when your customer pays.  It’s that simple.

Because factors extend credit not to your company but to your customers, they are more concerned about your customers' ability to pay than your company's financial status. That means a company with creditworthy customers may be able to factor even if it can't qualify for a loan.

Pros of Factoring

Doesn't require taking on debt

Factoring doesn't require that a company take on additional debt. While you may have some debt to get started and survive the less debt you have the better.  Having debt makes it harder to get loans in the future and also puts a lot of pressure on companies to pay it back. Factoring allows companies to receive funding without the hassle and risk of a loan.

You get the money fast

If your company needs quick, fast, and in a hurry, there are few options better than factoring. Quite often in less than a week, a company can receive  up to 95% of their outstanding invoices. For companies with an established relationship with a factor, this time can be as short as two days. This great when you need cash quickly.

Fewer hoops to jump through

When you go to a bank you need to provide proof  that you are a good credit risk. You need  financial statements, very good credit and an operating history generally two years or more.  For factoring generally you don't need  to provide this information. While a factor may want background information on the particular company they will be doing business with, the biggest concern will be the credit of your customers. This takes a lot of pressure off your company.

Your company never has to pay back the money

Because the money given out is not a loan, it does not have to be paid back. There are no payments, principal and interest, to be made. The factor is paid back after they collect the invoices.

Factors handle collection duties

Not only will a factor give your company a lump sum of money up-front, they will also handle collection duties. 

Cons of Factoring

The service can be costly — several percentage points more than a conventional lender.

The factoring industry is extremely fragmented 

There is a a wide variety in the quality of factoring companies. Take care to find someone who has an established track record and won't try to tie you up with additional non-standard requirements that are unduly onerous.

See a review of factoring companies at Top Ten Reviews.com. Factoring Services Review for a comparison of their top ten factoring companies on eight important questions you should ask when looking for a factoring company.

Another approach is to use an online marketplace, such as The Receivables Exchange, where you can post your receivables on a private Web site and have financial institutions bid on them. As a result, you are likely to get more competitive financing rates (there are also no minimum post amounts). The Receivables Exchange says it has access to about $8 billion, though your company must meet the following requirements: two years of operational history, $1.5 million in annual revenue, and no tax liens.

May Damage Your Business’s Reputation

 Imagine a factor's  collector hammering on one of your customers to collect a receivable. Their only interest is in collecting the invoice they are not concerned with the relationship that you have with your customer. Their motivation is to get the money that is owed regardless.   The  impact on business and its reputation in this kind of situation is obvious.

Some final Thoughts 

Factoring is a short term solution.  Most companies factor for two years or less.  The factor's role, in the life of a company,  is to help them make the transition to traditional financing. Your banker may be able to refer you to a factor. Shop around for someone who understands your industry, can customize a package for you, and has the financial resources you need.  So what do you think, will factoring work for you?


 

A great idea, a new exciting technology, a new process is not enough.  Your business needs money to survive and grow.   There are a number of sources for funding.  They vary in what’s best for a particular business and in the way they provide funding.  They all have good and bad points.  I addressed some of these sources in other posts on this blog.  This post includes those as well as other sources.   This post is to provide you with the types of sources only and is not a recommendation for any of them.  Your business is unique so work with your accountants, attorneys, and business consultants to find the best route for your business.  Don't focus on a single source, to the exclusion of others, but should look at multiple ones at the same time just in case your first choice doesn't work out.  

Friends, and Family.  This is largest potential source of funding for your business.  It may not be the greatest in dollars but it is certainly the greatest in numbers.  These people usually know you and know your need for funds.  They may also be familiar with the history and operations of your business.  It may be easier to interest them in providing funds but,  keep in mind that state and federal securities do apply if you issue stock or other securities in exchange for funding. Talk with your attorney before entering into any agreement just as you should when working with someone who is not a friend or relative
 
Angels. Angels are high-net-worth individuals looking for high-risk/high-return investment opportunities. They can be a good source of seed capital for a business start-up.  They may also be a source of funding between larger funding rounds.  They are usually more difficult to find because they are individuals and often look for funding opportunities that have an emotional pull in addition to the potential for a high return for their investment.  In recent years groups of angels have formed associations, clubs, and other organizations in order to see more and perhaps better investment opportunities.  By working together they are able to better scrutinize these opportunities and do a better job of due diligence.  It also makes it easier for businesses looking for funding to find them.  The Angel Capital Association (ACA)  provides a listing the angel groups that are members of their association.  This may be a place to start when looking of angels in your region.  One word of caution in looking for angels, trying to solicit or advertise for them may be a violation of federal or state securities laws so consult with your attorney before trying either of these methods. 
 
Government Programs. Government agencies are probably the largest source of funding available to small business.   These programs while government backed are not completely funded by the government agencies.  The U.S. Small Business Administration (SBA) has several programs including their 7(a) and other loan programs where they guarantee loans made by banks and other lending sources.   Take a look at their website to learn more about these programs Here!.   oThe U.S.Department of the Treasury has the Small Business Lending Fund (SBLF) which is a  dedicated fund designed to provide capital to qualified community banks and community development loan funds (CDLFs) in order to encourage small business lending.  “The purpose of the SBLF is to encourage Main Street banks and small businesses to work together, help create jobs, and promote economic growth in communities across the nation.”  You can find participating lending instutuions on their website Here!

A search of other federal government agencies will reveal other financing/funding programs.   State and local governments also provide financial assistance, based on the company’s industry and location.
 
Venture Capital. Venture capital investors (VCs) include those organizations with funds from private sources only and those that use both government and private funds to invest in businesses. Depending on their source of funds, VCs may make their investments in loans or convertible debentures or by preferred or common stock. VCs include private equity funds, small business investment companies (SBICs), and business development companies.  You can find Entrepreneur Magazines list of  “The Top 100 Venture Capital Firms” Here 
 
Corporate Partners. Corporate partnering often involves debt or equity funding by a corporation and is quite often tied to a business relationship. It usually includes a contract of some sort but does not become a new entity.  The goal for your business in this arrangement is funding and other help including your partner becoming one of your major customers or suppliers. 
 
Institutional Sources. Commercial banks, finance companies, insurance companies, pension funds, and other institutional lenders are a major source of private financing.  Funding is usually in to form of loans, but you may be able to negotiate the interest rate, and maturity  Terms of the loan can also include warrants or other equity instruments that can help in the negotiation of interest, maturity, and prepayment.  Consult with your attorney and/or accountant if you want to explore these possibilities with institutional sources.  This financing may also have restrictive covenants that affect future funding, business operations and other things.  Again consult with your attorney before entering into any funding arrangements with institutional sources.  
 
Incubators and Accelerators. Incubators and accelerators provide new small business with mentors, advisers, and practical training on technical, business, and fundraising to help them get from idea to product launch and beyond. They also may provide small amounts of funding for small ownership positions. Accelerators provide mentorship to new ventures and generally operate 3- to 4-month “boot camp” style programs.
 
Crowdfunding.  Crowdfunding is a way to fund a project or business venture through small dollars from a large number of people, typically over the Internet, and using social media. There are a number crowdfunding sites on the Internet (e.g., Kickstarter and IndieGoGo), The early crowdfundng  sites were only allowed to operate on a donation or reward basis, by offering a product, discount, or other inducement in exchange for money. The Jumpstart Our Business Startups Act (JOBS Act) (Pub L 112–106, 126 Stat 306) established a new crowdfunding exemption from registration under Securities Act §4(a)(6) (15 USC §77d(a)(6)). This exemption will allow companies to issue securities in exchange for contributions from people who don’t qualify as “accredited investors.”  Consult with your attorney and/accountant if you are considering using crowdfunding.  Entrepreneur Magazine published an article in October 2013 titled“Top 10 Crowdfunding Websites”.  The article groups the companies into Reward, Debt, and Equity categories.
 
As I have said a number of times in this posts consult with your attorney, accountant, and business consultants before making a decision as to which funding sources to go after.  It is very important that you know the pros and cons of each of them.

If you have any questions or want more information leave me a comment or Email me with this Link.   

I’ve been asked this question more times than I can remember.   In most cases I have to answer that it’s very likely that your idea does already exist especially if it addresses a real need in the marketplace but that shouldn’t stop you from pursuing it. 

I found the best answer to this question that I have seen in a very long time, it may be the best answer I’ve ever seen.  It was written by Carlos Del Carpio as the answer on Quora.  I haven’t change a thing.

“The founder of Dropbox was pitching in front of an investor one day, and the investor asked him: "there are similar companies out there doing the same as dropbox, why should I invest in just another similar company?"

His reply: "Yes. There are similar companies out there doing the same as dropbox. But do you use any of them?"

"No."

"Why?"

"Because they are bad."

"Ok. That's what Dropbox wants to solve."

So bottomline: Ask your potential customers.

Any business idea is a solution to someone's problem out there. Ask them if they are solving it, how they are solving it, and if they would be willing to pay to have it solved.”

That’s the answer to the question.

Now that you've read the four previous blog posts and completed the exercises described in them you are ready to prepare your presentation to potential investors, or lenders.  Your presentation may be made to an individual, to a group of potential investors at a conference, a meeting of an angels club or group, or another event that where entrepreneurs have the opportunity to present their business to potential investors.  

Prepare your presentation using Microsoft Powerpoint or a similar product.  Using these tools will allow you to paint a graphic picture that should hold the interest of your audience whether it's one person or hundreds.  It will also allow you to have hard copies of the presentation to give to those in your audience that exhibit particular interest.  If you're not comfortable in using one of the presentation software packages get somebody to help you with it.  

Who Should Make the Presentation?

The best person to make the presentation is the company founder and developer of the product or service however if that person is not good at making presentations to an audience that is not expert in the company's product or service have someone else make the presentation.  That person should be someone who is essential in the operations of the company.  If not a founder, an officer, a board member, or a significant investor.   

Presentation Tips 

• One Major Topic Per Slide
  
• Stay Concise (Elaborate Verbally)
  
• Stay Consistent (Fonts & Layouts)
  
• Minimum: 32 Point Font Size
  
• Use Color/Visuals to Enhance
  

Presentation Outline

This could be your first slide.

Now go get'em.  If you have any questions or want more information on Formulas to Success email me Here!