What's in Store for Advertisers in the US Market in 2017

A Foresight Factory Report 

To better predict what trends and behaviors will dominate and influence the industry market in the US in the coming year, Foresight Factory, one of the world’s leading independent trends agencies, examines a year’s worth of proprietary consumer research, runs a network of trend–spotters in the US to mine for intelligence, and compares its findings against third party sources to compile into an annual report.

As 2016 quickly nears its close, Foresight Factory’s “Trending 2017” report helps clients forecast trends that will guide consumer and commercial behaviors in the coming year and better help brands determine how to act.

As for the general “mood” for 2017, the report predicts it will be a year of “consumers empowering their on-and-offline lives, of brands seeking new, emotion-rich consumers, and of new technologies promising to augment consumer’s virtual and real world environments.” The report highlights key takeaways, such as action items and predictions, which are divided into several chapters categorized as Be, Buy, Feel, Believe and Transform.

Notable “Action” items throughout the report include investing in augmented emotional intelligence to better understand consumer moods, utilizing livestreaming to build genuine connections between streamer and viewer, and letting consumers “buy their way into calmness” after witnessing a surge in spending around relaxation fads in 2016. Another action item found that linking identity to payment transactions to streamline the process would better encourage consumer spend, noting that 52 percent of US consumers are interested in using their fingerprint to make purchases.

In summary, the report finds 2017 is “a good time to be alive” as trends such as average life expectancy see an uptick, while crises like world hunger and poverty see major movement downwards at a global level.

To see the full report and better examine the findings for 2017 trends, the extended report can be found at  www.foresightfactory.co/trending-2017-report-us-campaign/.

Starbucks CEO Howard Schultz To Step Down

Dec 1 (Reuters) - Starbucks Corp co-founder  Howard Schultz will step down as chief executive to focus on new high-end coffee shops, handing the top job to Chief Operating Officer Kevin Johnson, a long-time technology executive.

Schultz, who will become executive chairman in April 2017, said he would focus on building ultra-premium Reserve stores and showcase Roastery and Tasting Rooms around the world as well as setting the brand’s “social impact agenda” that includes sending employees to college and recruiting veterans.

Starbucks had signaled the change in July, but its shares fell 3.6 percent to $56.41 in extended trading on Thursday, as investors recalled the company’s decline after Schultz handed over the reins in 2000. He returned in 2008.

“Having him step down as CEO raised the anxiety level,” said Stephens analyst Will Slabaugh, who said that Schultz is the heart and soul of the brand, its entrepreneurial leader and its savior.

“We’re in a much better position on every level,” said Schultz, who returned for his second stint as CEO in the depths of the “Great Recession,” when Starbucks’ stock was trading below $10. Late last year, it hit an all-time high above $60. Schultz has put Starbucks in the national spotlight, asking customers not to bring guns into stores and urging conversations on race relations.

Many of the campaigns have generated controversy, but analysts have not seen a hit to financial results and the efforts have raised the profile of the coffee company and cemented Schultz’s status as a national figure.

“The idea that he’s replaceable, I think that’s erroneous,” said Bill Smead, CEO of Smead Capital Management in Seattle, which owns Starbucks shares. He compared the change to the retirement of long-time McDonald’s Corp CEO Ray Kroc, who turned a handful of hamburger stands into the world’s biggest restaurant company.

The announcement on Thursday also came as investors worry about the restaurant industry’s stubborn traffic declines. Starbucks has held up better than most, but it has not been immune.

Johnson is a former technology executive who became president and chief operating officer at Starbucks in March 2015.

Johnson has been on the Starbucks board since 2009 but most of his career was in the technology industry. He was the chief executive of Juniper Networks Inc from September 2008 to January 2014 and prior to that held several senior positions at Microsoft Corp.

On a conference call after the announcement, analysts pressed the company on timing and whether, with Schultz stepping aside, senior management still had the “merchant gene.”

“Not having retail experience could be a problem over time,” said Howard Penney, an analyst at Hedgeye Risk Management.

“I’m not leaving the company and I’m here every day,” said Schultz, whose office is connected to Johnson’s.

Traffic at established Starbucks cafes fell in the last quarter, which Johnson has attributed to a change in the company’s loyalty program, and Starbucks forecast a mid-single-digit rise in 2017 same-store sales.

The company dismissed speculation that Schultz could be preparing for a new career in politics.

“He has no plans to run for political office, as he has said many times, and will remain with the company as Starbucks executive chairman, focusing on premium coffee,” a spokeswoman said.

(Reporting by Gayathree Ganesan and Siddharth Cavale in Bengaluru; additional writing by Peter Henderson; Editing by Bill Rigby and Jonathan Oatis)

Startup Idea for SMB Channels in India

If you are trying to sell B-to-B software to Indian SMBs, you know that it's a very big market, and by and large, inaccessible.

There are hardly any mature channels through which to cater to this audience of customers profitably.

There are a couple of companies that have successfully scaled their businesses by selling to Indian SMBs: Greytip (payroll SaaS) and Knowlarity (virtual telephony). To learn more about these two companies, I've interviewed Girish Rowjee of Greytip and Ambarish Gupta of Knowlarity.

VC after VC will tell you that they don't invest in India facing B-to-B SaaS ventures because the channels are not developed to scale fast-growth businesses. Sasha Mirchandani (Kae Capital) and Sandeep Singhal (Nexus Venture) discussed these issues with me recently.

So, what is to be done to unlock this market and make it accessible to SaaS vendors? And to flip the point of view, why should millions of SMBs in India not get the benefit of software? After all, software is eating the world, delivering incredible productivity gains all across the board!

Well, I see opportunity here for a different class of startups: not just the SaaS vendors, but the value added resellers who could build for themselves nice businesses by working with a portfolio of SaaS vendors to bring their technologies to specific regional SMB clusters. Whether it is CRM, HR, ERP, or any other type of software that can help these SMBs, there is clearly an opportunity for VARs to advise, select, implement, and train.

Each VAR should focus on a specific region, and a specific size of SMB and deeply understand the needs of that class of SMBs. This includes understanding the cost structures, the opportunities for delivering ROI with the introduction of software, training needs to fully deliver the benefits thereof. Effectively, for these SMBs, the VARs would be operating as business transformation consultants.

Some numbers:

There will be different segments of SMBs with different budget levels for buying technology. Some will be able to afford $500/month, some $1000/month, some $1500/month and some $2000/month.

Assuming a 40% commission structure, a VAR focused on the $500/month budget segment will need to service ~400 customers to get to $1M. The $1000/month segments will need ~200. The $1500/month segment will need ~150. The $2000/month segment will need ~100.

India has over 50 million SMBs. Only 40% of these are currently using technology in any meaningful way. Even that is 20 million SMBs. So the numbers I am talking about (100-400) are relatively small and quite doable.

In fact, if we can systematically stimulate 100,000 VARs to focus on developing their practices, and build systems and methods to manage 100-400 SMBs effectively, it would be an enormous value creation opportunity for India's technology future.

And, each of these VARs would become good solid livelihood generating million dollar businesses.

Photo credit: Andrés Nieto Porras/Flickr.com.

5 Ways To Check References To Avoid Toxic Employees

Have you ever attempted to check references before hiring, and run into a brick wall with the former employer giving you only name, title, and date of employment? If so, that’s understandable because they fear lawsuits. On the other hand, the former employer may give a glowing reference. And only later you find out that the accolades don’t ring true.

You discover that your newly hired employee is toxic to coworkers. His or her social skills are non-existent; being a “team player” is a foreign concept. This new employee has become a drain on productivity and puts a damper on morale.

It’s far easier—and cheaper––to prevent the problem by non-selecting this applicant in the hiring stage.

To root out this kind of toxic employee at the early stage, I suggest this approach to reference-checking:

Approaches to Reference-Checking

Step 1: Ask the applicant for references among several past supervisors, coworkers, and “other friends.” (The idea behind asking for several is the applicant will find it time-consuming to inform and brief all thoroughly on what to say and what NOT to say in a conversation with you. You, of course, may not check with all, but a list of 3-4 in each category will likely serve your purpose of a candid conversation later.)

Step 2: Call one or two people from each of these categories (supervisors, coworkers, friends) to ask the reference-check questions below.

Step 3: Ask each of the references called in step 2 to give you another name to call to ask the same questions. (You’ll need to modify the questions slightly by explaining, “I was talking with Joe Smoe in regard to hiring Alberta Ditto, and Joe referred me to you, saying you might have a little more insight about Alberta since you two worked closely together. What would you say are …”)

Here are some key questions that tend to help you get an honest assessment of interpersonal skills and emotional stability:

Questions for a Supervisor

• “What would you say are Geri’s top three strengths?” (Does the boss mention any attitude or interpersonal strengths?)
• “We don’t find many perfect employees out there. So we expect that Geri will need some coaching. In what areas would you say she could benefit from coaching?” (Does the boss mention interpersonal issues that you think are not correctable?)
• “Would you say Geri was highly popular with coworkers? Well liked? Or worked better alone? Just how would you describe their coworker relationships?” (If the boss uses the “loner” label, consider this a warning sign.)

Questions for a Coworker

• Geri has given your name, saying you worked together at XYZ. Exactly, how did your jobs relate? (Does this person’s story sync with what Geri has told you? Does this person seem eager or reluctant to talk?)
• Tell me about some of the key strengths Geri brings to a job.
• What did you appreciate most in working with Geri—her skills, her attitude, her personality? (Listen carefully to what this reference says—and doesn’t say. Probe with follow-up questions.)
• Would you please give me the name and number of someone else there who worked closely with Geri? (Call this second person and ask the same questions if you still have doubts about Geri.)

Questions for a Friend

• Geri has applied for a job with our company and has given your name as a reference. Would you tell me how you two met? (Answers to this question and the following will simply reveal more about your applicant because people tend to choose for friends those who are like them, who share common interests, activities, and values.)
• How long have you known Geri?
• In what kinds of situations or activities have you seen Geri?
• What do you love about Geri?
• Does Geri ever do anything that annoys you? Do you two still stay in contact? Why not?
• Is there anything you wouldn’t trust her to handle for you as a friend?

(Of course, you will want to do other types of reference checks with supervisors to verify skills, with universities to verify academic credentials, with credit bureaus to verify financial integrity, and so forth.)

No doubt about it: This approach to reference-checking takes time. But then so does hiring, on-boarding, and training a toxic employee who later has to be replaced.

We’re Just Two Accountants, Standing On A Red Carpet, With The Best Kept Secrets In Hollywood

You may recognize the cadence of this article’s title as an adaptation of the famous line in Notting Hill. In the same scene, the Academy Award-winning actress portraying the character Anna Scott also notes “the fame thing isn’t really real.” Having garnered more than our fair share of recognition safeguarding the names of those who will take home Hollywood’s top honors as co-leaders of PwC’s OscarsⓇ balloting team, we certainly understand what she meant.  

When you sit down to take the CPA exam, you don’t expect that one day you’ll be one of only two people tasked with the responsibility of keeping secrets no one else in the world knows. You don’t imagine yourself walking the red carpet or being photographed in the Los Angeles Times having a briefcase tug-of-war with a Best Actress nominee in the hours before she wins the coveted award. And, yes, this is the same briefcase that has it’s own social media presence.

Additionally, as an accountant, you don’t expect to break new ground as the first Latina to hold the role as co-balloting leader, or to be mic’d up and invited on stage with less than five minutes notice to answer questions during a live broadcast in front of forty million people. You don’t expect A-list movie stars and studio heads to ask you to take a picture with them. And, you definitely don’t expect for your face to be posted on social media and shared side-by-side with an award-winning actor, producer and screenwriter who you may, or may not (depending on who you ask), slightly resemble.

It’s all quite humbling, really.

Still, we can’t deny the opportunities we’ve had as a result. Being two of just over a dozen people to have ever held this role has opened just as many doors for us professionally as we hope to open for others. Many have told us that we’re helping redefine what it means to be an accountant or tax professional, and that we’ve helped them rethink their personal career paths. In an industry that is heavily reliant on attracting diverse talent, that’s a responsibility we don’t take lightly.

But at the end of the day, we do what we do because we believe we can make a difference―for businesses, investors, and the general public―by enabling trust and solving problems. And, the beauty of what we do is in the realization that doing so takes place in many forms - from helping businesses adhere to tax codes, to making sure the individuals who bring films to our screens receive the recognition the Academy members wish to bestow upon them. This is truly a career in which you can find yourself buried deep in regulations one minute and then standing next to athletes, artists, actors and talk show hosts the next. In addition to us, our colleagues can certainly attest to that (see here, here, here and here).

So yes, for us these “red carpet” moments are extremely exciting, and even more surreal. They certainly give us a few cool points with our kids. But, the Academy Awards ceremony itself is just the climax of a year-long engagement that involves dedication from teams of people who assist us in enabling the accuracy, security, and confidentiality of the balloting process. That responsibility, ultimately, is what we find most fulfilling.   

The secrets we hold close are secrets we hold from everyone―even our spouses and most trusted colleagues. We both have a handful of celebrities we admire and would greatly enjoy meeting, but not even they could wrangle the information from our lips. When we’re standing off stage left and stage right, we’re not star-gazing, and when we hand off envelopes to the world’s most famous actors and actresses, we’re not thinking about who is standing in our presence. We’re thinking about the name that’s written on the card, and we don’t rest until the last OscarⓇ winner is announced.

So, even in our gown and tuxedo, that’s who we are. Two accountants. And, in case you were wondering, that’s why we’re there, standing on the red carpet. Come February, if you see us feel free to ask us about the winners. Just know that we’ll never tell.

How Digital Banking Company WB21 Is Disrupting Fintech

With more than one million customers in less than two years, digital banking business WB21 seems to be the fastest growing FinTech since PayPal's launch in 1999.

This past September, WB21 announced reaching the milestone of its one millionth customer and disclosed in a Forbes interview a $2.2 Billion USD valuation. The valuation of the business was prompted during talks about a $200M private placement deal WB21 is preparing with a leading US Investment Bank.

Taking into account that WB21 had its public launch in December 2015, these numbers would be considered a perfect success for every FinTech Startup. However, the response in the media was controversial, to say the least.

The Wall Street Journal, Forbes and Business Insider reported how founder and CEO Michael Gastauer and his team built this Unicorn in less than two years, calling Gastauer a "Mogul."

Some local German magazines questioned whether or not this kind of hyper growth is plausible. WB21 replied with publishing their latest Google Analytics web statistics showing over 10.1M users in the past three months. Local Berlin based FinTech papers went so far as to go off subject and use the platform to host a "gossip magazine reporting style" digging up ten year old stories from Gastauer`s past with the intention to taint the company.

For sure, WB21's growth is quite unique, being the kind of startup you see every few decades. It is human nature to be skeptical about anything that sounds "too good to be true." However, the greatest inventions in history have always been ahead of their time, with stories that many people found hard to believe. When Wilhelm Roentgen discovered X-Ray, a German Magazine wrote "X-Ray will prove to be a hoax."

What sets visionary entrepreneurs like Michael Gastauer, Elon Musk or Bill Gates apart from others is their ability to find a solution for a global problem and change the standards of an entire industry. They create a solution in an industry when most of their contemporary peers are unable to envision beyond status quo.

One thing is for certain. WB21 is solving a global problem in the banking industry. A problem that is twofold and grows every day. Traditional banks are less and less willing to provide accounts for businesses or private individuals from other countries.

Sending large amounts of money across borders is subject to excruciating scrutiny every day. Most banks make it difficult for their customers to send wires to "exotic" countries.

With ongoing globalization and the use of the Internet and Smartphones, the world is more connected than ever before. WB21 addresses the problem of global retail banking and cross border payments, a $22 trillion USD market. The solution that WB21 provides is revolutionary.

To solve the problem that most Bank have to identify their customers, WB21 addressed the problem and developed a proprietary software called GlobalKYC©. The software allows WB21 to identify customers from 180 countries in real time and to provide them with checking accounts in 22 currencies. Based on the real time identification process, the opening of a business or private account takes less than 8 minutes and can be done remotely over the Internet or on a Smartphone.

When WB21 did a live demo last month at Money 20/20 in Vegas, industry experts of the banking and finance community witnessed first-hand the Uber potential GlobalKYC© has to change the KYC procedures in the banking world. Whereas traditional banks need days or weeks to open an account for an international customer, WB21 takes minutes.

While traditional banks require manual labor to conduct background checks on their non-resident clients, WB21 uses its server power to run a fully automated identification process in real time. Needless to say that the scalability of GlobalKYC© is almost unlimited, which allows WB21 to onboard more than 10,000 customers in 24 hours during peak period times.

When WB21 started to provide checking accounts in minutes to worldwide clientele, offering unlimited wire transfers around the world, the product went viral.

For customers from industries such as Bitcoin, having difficulties to get accounts from traditional banks, WB21 has become the holy grail solving all banking issues in minutes.

How to Turn Your Passion Into a Startup

What does it take to be an entrepreneur? Starting a successful business requires more than a good idea: You also need financial backing, support, and a lot of tenacity. It's not an easy process: About half of Canadian small businesses fail by their fifth year in business.

via Salesforce

But you don't have to accept that fate for your own startup. This article will tell you all about the early stages of building a new business, including finding financial support and how to convince backers that your idea is a profitable one. With some guidance and passion, and a great plan, you should be able to build a business that you're passionate about--and that's profitable, too.

That tells you that running a business is no easy task. So even if you have an idea that you're passionate about and that you think could be successful, you need to work hard in order to make it happen. Even great business ideas have failed due to lack of resources, funding, and proper planning.

Don't fall into those common pitfalls. Make sure you have a plan for making your idea work before investing all your time and energy into building your business.

Develop your idea
Sure, you need much more than an idea in order for your business to be successful. But having a great business idea can make a big difference for your potential for success.

For an idea to be truly great, it needs to help people in some way. Otherwise, why would customers buy from you? So your product, service, or offering should have the potential to fill a need or provide some kind of value to consumers. If you've got a general idea for a business offering, do some research to get specific and build on that idea to continue going forward.

Turn it into a specific offering
Once you have your general idea, figure out what that means in terms of a product or service. Say your idea is to start a company that provides design services to businesses and website owners. From there, you need to create packages of services or produce the products that you can sell. You may determine a few different packages that customers can purchase based on whether they need full web design, logos, or some other branding work. Or you could create web design templates that people can purchase and install themselves.

There are plenty of ways you can format your offerings. You need to decide on exactly what you want that to look like for your own business before you continue building your business.

Get the right skills
If your idea is something you're passionate about, then it's likely something you already know something about. However, you may need to hone your skills before launching a business around them.

For example, consider taking a class or becoming an apprentice for an expert in your industry. If you feel confident you have the skills necessary for creating your products or services, then learn the support skills required to run a business. These skills, like bookkeeping and clerical work, are just as important for running a successful startup.

Determine your market
Now you need to decide exactly who you are likely to sell your products or services to. You may think your idea can help people, but if there aren't customers who are actually willing to pay for it, then you're not going to get very far.

That means you need to have a very clear picture of your target customer as you get started. Determine who is likely to buy your products or services so you can be better prepared to research your audience, build products around their needs, and market to them when the time is right.

Gather any startup funds
Not every business needs tons of startup cash to get off the ground. But you will likely need at least some funding for basic business expenses like permits, employees, and legal fees.

Since you'll need to invest in your business before you ever start selling any products or services, you need to find cash. You can fund the early stages of your business yourself, seek outside investors, ask friends, or use crowdfunding. Or you can lower your startup costs as much as possible so you don't need as much to get started. Then you can fund the growth of your business through the revenue you bring in over time.

Do your research
As mentioned previously, it's important to have an idea of who your target customers are. But once you've outlined the general characteristics of your target market--and created personas--the work isn't over. You need to find out what your target customers' preferences are in relation to your offerings.

To illustrate, if you're a web designer targeting young tech startup founders, find out what the members of that audience think about their current options when it comes to web design.

Are they satisfied with what's out there?
Is there something missing that they need someone to offer?
What would they be willing to pay for such a product or service?
Finding out those answers early on can help you shape your business into something that's likely to appeal to customers and, thus, one that is likely to be profitable.

Create a plan for profit
It's now time to come up with a business plan.

How are you going to make money?
How many products or services do you need to sell in order to turn a profit?
How are you going to make all those sales?
Your plan should include topics like marketing strategies, expenses, and sales data. It's important to have a good idea of what is necessary to reach your business goals before you even make your first sale. This type of plan may also be necessary in order for you to seek outside investors or supporters for your business.

Pitch your idea
If you do decide you need more funding to get your startup off the ground, then you'll need to take your business plan and present it to investors. Try to set up meetings with venture firms or secure funding from angel investors. There are also startup accelerators, events, and programs where you can build your ideas and present them to potential supporters or investors.

But you'll need to be able to show them exactly how your business is going to work and why it would be beneficial for them to invest. If they don't see the potential for your idea to succeed or don't see a benefit for themselves, they aren't likely to show support for your idea.

Create a marketing plan
It's time to decide how you're going to market your products and services to potential customers. There are many different routes you can take, from blogging and social media to online advertising, local events, and more.

Depending on the type of business you're starting, some methods are likely to be more effective than others. If your business is aimed at customers who need internet-based services, it probably wouldn't be worth the time and effort to launch a local marketing campaign. Online advertising and social media promotions will likely be beneficial.

Employ a few marketing methods to see what works best over time. Create a budget, research and write down a plan based on your business goals and objectives, and then keep an eye on what methods bring you the most paying customers.

Launch your offering
Once everything in place, it's time to launch. Ideally, you'll have built up some buzz by this point. And if you've secured funding from investors, you should be able to continue getting the word out about your startup while continuously working to improve your business. You'll also need to focus on things like customer service to make sure your business builds a strong reputation going forward.

Provide good service and create a quality offering that people actually know about through your marketing efforts. Follow these steps and you should be well on your way to building a successful startup that actually lasts.

This post originally appeared on the Salesforce Canada blog and is republished with permission.

Jonha Richman is an advocate of innovation, women in tech and ecommerce. She's also a marketing consultant for SaaS startups and a StartupWeekend mentor. She's also a contributor for Entrepreneur, Fast Company, Business Insider, among others. You may connect with her on Twitter and LinkedIn.