Ent off in the office? Learn to keep your cool. ntrepreneur ° 4 Ee Aeron, ASI ieee mates tang, THE HOT ie STREET SMARTS FORMER GANG MEMBERS ARE LEADING LA'S. HOMEBOY INDUSTRIES TO NEW BUSINESS HEIGHTS PIVOT POINT ISIT TIME FOR YOU TO CHANGE DIRECTION? Crowdfunding, the ultimate launchpad: How these startups raised more than $100 million. Novvaeh 201 |eATREPRENELR.OOM WHEN IT'S TIME TO BREAK UP WITH A CUSTOMERDell recommends Windows. (intel Meet our overachieving tablet family. Dell enue 8 Dell enue 7 Delt Verue 11 Pro Dell Venue & Pro Software/app sold separately aieAp Max Gunawan’s Lumio, a lamp : that unfolds like a book, scored a spot among our Top 100 Crowdfunded Companies. > Features 34 40 82 101 OFF THE STREETS ‘THE PEOPLE HAVE YOUREACHED ——_ACTIVEDUTY INTO BUSINESS HAVE SPOKEN YOUR PIVOT POINT? ——Ourlist of franchises Homeboy Industries We're alli this together: Six signs it may be time that help pay back those iscnamnission tocreste curenchisivelist ofthe toturn your startup in who Rave served {obs for former Los ‘Top 100 Crowdfunded anew direction by Tracy Stapp Herta Angeles gingmembers. Companies. iy Paula Andras With anexpended line By Asha Advant, of products and services 89 finda heightened business 50 THE CASUAL CHEF z vision, this ever-growing AGENT PROVOCATEUR Some of the 3 ‘company is taking good ‘Rude, crude, sexist and country's top 3 ‘works to the neat level, often mvanrepirited, David culionry minds are Sy Metin Newman Portnoy's Barstool Sports looking ta expand : hhas become a go-to for thelr reach with i youngroen wo say they franchined fst- g are disenfranchised by the casual restaurants a mainstream media, But that bring high-quality, : an Portnoy continue to reasonably pri 5 cash in on controversy? meals to the masses, § ‘By Jason Ankeny By Jason Daley On the cover: Typography by Luke Lucas NOVAS 20S REPRE 1CONTENTS ~~ 10 EDITOR'S NOTE In business, there are two ‘camps: the innovators ‘and the old farts. ‘By Amy C. Cosper 12 FEEDBACK Born or made? ‘The debate goes on. 4 ‘CULTURE: BUSINESS UNUSUAL Dirty Girl obstacle-course ‘events run up big bucks. 6 FE ty TRAVEL Rise and shine: Early- ‘morning flights have their advantages. By Bruce Schoenfeld 20 DESIGN ‘Wardrobe change: Refinery29 gets a branding makeover. PLUS: Must-have office staples and smarter ad strategies. 2 "TREPONOMICS: MARKETING. Balancing your personal and professional presence online is a delicate dance. By Ann Handley 28 ‘ASK A PRO. How do I know it's time to break up with a client? 30 ‘THE ETHICS COACH How to run your business during a crisis, and ways to keop networking on the up and up. By Gael O'Brien ESQUIRE GUY ‘Anger management: tips to keep you from losing your cool, By Ross McCammon: Is your company : prepared for the : changing health : care landscape? : Only 21% of : companies are : extremely or : very prepared to : address changes : coming to our : health care : system in 2014- # How will you be prepared? Get our Employer's Guide: aflac.com/HCRGuide Affac.CONTENTS Keep an eye out with an advanced security camera Fanatic unites die-hards ‘of college and pro sports teams in any city 62 ‘What tools should ‘my business invest in for 20147 64 CustomMade.com brings -to-order goods to cheek, please: An unde staffed restaurant turns toaniche hiring site 67 The ig picture: Mosaic’s app stitches together phone and tablet screens. ‘Why do things often go bad between founders and financial managers? By Joe Worth People, not pitches: VCs shift their priorities. By Sam Hogg 2 How to ask Mom and Dad for help. By Michelle Goodman 4 Sometimes debt can give you a financial edge—but {you need to use it wisely. By LD. Roth 7 Gray matters: A chain of brain-fitness stores gets big funding Digital dreams: Smart Pls bring tech to bedtime. ‘Round kicks up cireuit fitness t A sweet internship with Kona lee helps a student ‘work his way up. 128 Don’t be a turkey: Take cour quiz to determine how thankful you'll be this year.panne Z . ZY mal NASP EMSs I Lash ae 2% CASH BACK. amd BULA ha ie Pieevoeam (tN ALL Ls Odin’s Landscaping earns unlimited 2% CASH BACK Crate ) CapitalOneDIGITAL ~~~ Buzz kill \ { energy dri ‘ofa natural boost. / ks in favor | & 8 What's on Entrepreneur.com? LL /e . Save the / Sound lke : customers! \ (you? a = // stare oeusing on service sve quae . tha i, paying tention o \_ shaediysvcen- | /“ Everyone | theestones yu aed will become | _ have, rather than the ones \ fulentrepreneurs. / you're ying to get an entrepreneur / \ woes eset / Freelancers, cheap | overseas labor and how much money \,_ robots—yes, robots. The ‘you save, \ longterm employee may / — \ be atthingf the past. Breakthrough opportunity Join Entrepreneur for a day of inspiration and insight designed to help you break free of business- as-usual thinking. Sign up now for Growth Con 2014 presented by The UPS Store to experience the artistry of visual storytelling with thought leader Erik Wabi, followed by growth-strategy seminars, networking opportunities and more. Registration is free and will fill up fast for this Jan. 22 event in New Orleans. entrepreneur.comgrowthconI make lotions that melt in your hand. But when it comes to printing, Ser a SMALL BUSINESS: YOURE NOT ALONE OUT THERE. Misty, owner of Just Wanna Melt” has a passion for organic lotions that melt in your hand. So when she needed to make her packaging shine, she turned to her locally owned UPS Store. Because while Misty knows smooth hands, The UPS Store® experts know all about creating professionally printed labels, flyers, banners and displays that make her customers just want to melt. At The UPS Store, we love small businesses. We love logistics. WEG LOGISTICS (Check out Misty’s video and leatn how The UPS Store can help your business at smalbiz.theupsstoe.com POSTERS + FLYERS + BROCHURES + BUSINESS CARDS + CERTIFIED PACKING EXPERTS Copighl © 2013 The UPS Soe, ne LAEntrepreneur EDTOR INCHEEYP Amy C. Casper XECUTWE EDITOR Carol Horwite CRERTIVE RECTOR Megan Roy EDITORIAL ASSOCINEEDTOR Michelle uergen SPECIAL PROKECTSEDTOR Tracy Stapp Herold DORAL ASSSTANT Katherine Duncan ‘CONTRIUTINGEDTORS Grant Davis, Margaret Litman, ‘enna Schauer, Shayna Sobol ART DESIGN UESIGNOIRECTOR Richard R. Olson ART DRECTOR Evelyn Good FRODUCTON ASSISTANT Monin tm CCONTREUTINGARTORECTOR Nancy Roy ‘COWTRBLING PHUTOORECTOR Samantha Cassidy ‘CONTRIBUTING WAITERS ‘Ashoesh Advan, Paula Andruse, Jason Ankeny, Mikal, Bliove, 4Isson Daley, Andee Gibbs, Michelle Goodin, Ly Haller, Ann Hanley, (Christopher Hann, Jodi Helmer, Sam Hogs Logan Kugler, Ress McCammon, ‘Malinda Newman, Gas O'Brien, Stophania Orme, fn Patrick Pullen "ED. Roth, Bruce Schoenfol, Matt Villa, Joe Wort ENTREPRENEUR.COM VP.DGTAL Devi Pome EDTORAL DRECTOR Raymond Hennessey EXEOUTVEEDTOR Laura Lorber DEPUTY EDTOR Lanren Covell SPECAL PROJECTSDECTOR Callen DeBaise ‘CONTREUINGEDTOR Diana Ransom TEOINOLOGY FOTOR dase Fell ‘SPECIAL REPORTS EDITOR Linda Lacina ASSOCITEEOTORS Kathleen Davis, Sane Porter ‘AFF URTERS Catherine Clifford, Kate Taylor ASSISTANTEDTORS Brian Eha, Andrea Huspent 'VOE0 PRODUCER Kian CCOMMNTYEDTOR Danielle Marella LUMUCADIINISTRATOR Matthew Vanderhoot ITSUPPORT SPECALIST Davi Rozanic ADOPERATONS ORECTOR Michel Frazier TRAFFIC COORDINATOR dose Paolo Dy COMUNE SHNDICATIN EOTOR Fey Yordanown [DRECTOR, STE OPERATIONS feke Hudson CIGTALMEDIAMANASER Kevin Murray DDGTAL MEOAPRODUGERS Nicholas Janes, Don Lee WUXDESIONER James Sith (ISTAL NENA DES SPECIALIST Austin Allsbroke 'DOTAL VISUAL DESIGNER, OMUNE Amy Miude [OGTALMEQIADESGNER Niele Sacks SENORSOFTWAREMANACER Joseph Noris (WEB DEVELOPERS Ange! Coo, Daniel Sibitky WEBANALYTICS MANAGER Nicole Jurinele MARKETING \VLMARKETING Lisa Murcay SENOR MARKETING COMMUNICATIONS MANAGER, Lacy Glan CCOUNRRETY MARKETING MANAGER Rocky Wy ASSOCIATE MARKETING MANGER Wendy Nanea MURKETINGSPEDIHUST Gildard Jimenez BUSINESS PRESOETICOO Ryan Shea ASSODATE PUBLISHER Justin Koeigeherger ‘ENTREPRENEUR MEDIA NATIONAL ADVERTISING SALES OFFICES ‘New Yk City (212) 568-8080 EGONAL SALES MAMGERS James Clause, Randy Mls EASTERN OWL SALES MANAGER Brian Speranzini ‘SOUTHEAST DIGTBL SLES EXECUTE Patrick Notaro (OFFICE WANAGEREXECLIVE ASSISTANT TOTHEFLBLISHERElvioa Pres (Chicago (312) 923-0818 MOWESTORECTOR OF PAINTSILES Georgiana Toseh MOWEST ORECTOR OF OMUNESHLES Keith Bainbridge ‘SALES ASSISTANT Grace Corey Detroit (248) 644-2786 MOWEST ADVERTISING ORECTOR Lori K.Fyon Atlanta (790) 208-9858 ‘SOUTHERN ADVERTISING DIRECTOR Kelly Hedger San Franisco (45) 439-0441 NAG RECTOR WESTER SALES GROUP Kis Kili! 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Marian O'Reilly, ‘COMSUMER NAKETNG ASSISTANT Shirey Samsun CORECTOR,EATREPRENEURPRESS Jilan McTigue ‘CORPORATE COUNSEL Ronald. Young FAOLUTYADWNESTRATOR Rudy Gusyen EXECUTIVE ADMINISTRATIVE ASSSTANT Yost Med oo mann 21-3 et arty Et Sebi Nauk BES EE Bi Seon PUR ia easeeren Sea see ce eee aid ager serena 2d Da fee Raa doe hae ig Eremane road fe siea the grmeceiateene garage estuaries | Se Tm. ASK febined tance cmaene emratnerinna hee teenie digana ance hatch od ein Ea an cx SUS no 4-608 i 698 See seersomecys | ARMS WislnasLc ors etoinetdneraciees wa | SRSCRTONS ED 2628 2TH ipeccntr ade ari Sheet ‘absorte@enepreneurcom a poles IRENE 2 te a, (919 BH; fac 52-100 crepe Prin nthe GST le 27Teoh Company Founder and One-Woman Call Center It's easy to create your professional name badge instantly. The final result is a polished, memorable, and confident you. y wou wa ! ay LINDA YI ZX EVENT PLANNER the MIGHTY BADGE www.themightybadge.comia. 3)EDITOR'S NOTE Social innovation he approach one takes to anything in business can inevitably be broken into two schools of thought: the innovative and the old- fart-esque. Seriously, it’s that simple—and it has nothing to do with age. I've seen plenty of old-fart startups and plenty of venerable compa- nies that are always innovating. Both strategies have pros and cons. "Those who innovate find strength and power {in experimentation, and they fail alot more ‘often than they succeed. But fear is never pres- cent, and the failures are not dwelled upon. It’s ‘port. In taking risks, these companies uncover new, unimagined opportunities. A side benefit to this path is the adrenaline-producing effect of ‘imminent danger, one that is embraced by great ‘entrepreneurs. Scary? Hell yeah, but that’s where things get interesting. Think Red Bull ‘The old-fart companies, meanwhile, take a “Hey, you kids, get off my lawn” approach. Their ‘thinking tends to be not of what can be, but instead, what was. Clearly, this is a bad tack that ‘can Iead a company to a boneyard of lost opportu- nities or, worse, the purgatory above the bone~ yard: no change, no death, just the endless rock rolls down, push rock up, rock rolls down and repeat, Pretty bleak. The pro here is that it’s easy to keep doing what you've always done. But realy, ‘that’s the only pro. The con is irelevanee. Your ‘competitors are waiting to pounce. So the next ‘time you see kids in your yard, invite them in for nice game of Candy Crush. ‘The conversation with the kids in your yard ‘can and should take place on social media. (Over the past few years, social platforms have blossomed into a marketing playground and proved that communities have power—power to influence, to renew (or destroy) faith in brand, even to upend governments. Its the subtle strength that starts with an individual voice, bocomes a hashtag and coalesces into ‘a community, generating the power to effect. ‘change—a sort of atom smasher for ideas and opinions. And it is unprecedented. But you knew that. That was first-generation social media. What’s happening now is a new frontier in which technological change is merg- ing with armchair economics. Add money to the social media mix and things get really excit- ing—and terrifying. Welcome to the world of crowdiunding, Its a populist form of fundraising ‘that’s expected to generate more than $5 billion this year, ‘Our first-ever feature on the Top 100 Crowd funded Companies, assembled with painstak: ing research by finance expert Asheesh Advani, digs into the trends that are defining this new ‘way for startups to raise money. We look at the companies that have crowadfunded most success~ fully, the sectors they represent and the vari~ ‘ous platforms on which they did it. I's a fascinating lock at what happens when social media and money collide. And it's a testament to the power of the popular voice. Take that, old farts. Amy ©. Cosper Editor in Chief Follow me on Twitter: @EntMagazineAmy E-mail me at: ‘acosper@entreprencur.comI believe GoToMeeting is really that key driver for successful collaborations. Mindjet CMO Jascha Kaykas-Wolff Try it free for 30 days gotomeeting.com MEETING « BELIEVING $3 GoToMeeting citayxFEEDBACK ws :2x01s ane savnc Caring about sharing ‘As someone who runs soelal media campaigns for brands, appreciated your infographic “Friend, Follow, Like, Buy” (October), which helps validate what should be backed up by one’s own analyties. [am working on a strategy for ‘clothing brand, so I found it especially interesting that this is one of the most socially referred product eategories. ‘Additionally, it as become elear that “likes” have less and less value, while engagement metrics such as shares are more important; in particular, the percentage of those ‘who purchase after sharing or “favoriting.” This bodes particularly well for e-commerce companies with a rewards/ loyalty program, and even review sites. Lam curious where ‘YouTube fits into the mix?” ‘Michael Dorman Santa Monica, Calif Does it matter? You just may be Ittook me until my 40th Onto something Dirthday before someone We all know the suecess- asked me whether being ful serial entrepreneurs. an entrepreneur was a ‘They're media darlings. nature vs. nurture ques- But what about those who tion (“Born or made?” are more like me? Having October). Like Steve Jobs created a half-dozen or s0 famously said, it’s all strong business concepts about connecting dots. supported hy pro formas, Dot-connecting is easy marketing plans, market- looking back: alawn and ing research, prototypes lobster business (on Cape _and substantial per- Cod) at 14; father who sonal funding, I'm still in ‘made the switch mid-life entrepreneurial purga- and flourished; andmy tory. Why? I'm constantly personal restlessness in _ sidetracked generating ‘ corporate surround- ‘money to pay family bills. ing. Looking forward and Add that I'm little ADHD connecting the dots on _and very creative; I keep fulfillment, risk profile discovering new business and vision to see a market opportunities. Here's my ‘where others don't are the newest: an unconventional rationale reasons. Forme, business that supports ‘the guttural “I'm meant to and funds talented, do this" drive that burns __ereative entrepreneurs inside precluded me from to generate lots of bright ever asking “Why?” business concepts, vets Jay Sharman them and brings them Chicago to market. Bob Chapin Littleton, Coto. CROWDFUNDING ‘> Total raised in 2012 using crowefunding platforms: $2.7 billion > Total projected to be raised in 2013 using crowdfunding platforms: $5.1 billion > Median raised per campaign: less than $5,000 Src Cowan Academy Srl Business {tnreprncantip Came, Mametuton SSS ao TELLUS ABOUT IT BECOME OUR FAN SHARE YOUR COMMENTS Our Facebook fan, Twitter followers Like us on Facebook: Wie to: Letters Entrepreneur and discussion groups are buzzing about facebook. convEnt Magazine 245 MeCabe Way Ste, 400, lvine, hat matters to entrepreneurs most. Follow us on Twitter: @ErtMagazine Catt 92514; fax (249) 752-180; Come join the conversation, and @EntMagazineAmy or e-mail entmag@entrepreneu.cm.Cul TURE BUSHESS UNUSUAL | UFE | TRAVEL| DESI t started as many side projects do, with a few friends and a few bottles of wine, But the idea really took off once the talk turned dicty Former Seattle Seahawks offensive tackle Chris Melntosh and triathlons, They wonde away athlet na to compete in a traditional Ironman ‘who don't have t event could still experience the positive energy of a collaborative ra In 200, they launched Dirty Gist Mud Run, producing three mud-soaked obstacle-course races for women, in up- state New York, Wisconsin and Colorado, ‘We had no event experience, whieh was blessing. Fgnoranee is bli id not need to abide by industry standards,” says ‘Melntosh, who serves as president of the Delafield, Wis.-hased comps Melntosh, wh cut short by injury, had plenty of spo contacts, which helped make up for his lack of events expertise, Within 90 days of opening reg race had 6,000 registrants. Dirty Girl events~SK adv courses with obstac and mud pits t women wh fitness, Designed to be unintimidating, the events focus on te rather than timed competition. The average participant is 38 years old, but Dirty Girls have ranged in age from 14to 80. (Now and again, men try to “sneak through” registration, but the women- only rule is ironclad.) Ninety percent of entrants participate as part ofa team, many of them holding hands across the finish line, ‘That “we've all in this mud pit togeth~ er” attitude is gaining traction. Dirty Git] will clase 2013 with some 50 events; aver~ age attendance is 7,000. McIntosh won't disclose revenue, but based on registration fees of $65 to $100, sales for 2013 will likely pass $22 million. “This is no longer aside project,’ Metntosh confirms. He credits the company's success to “our customers! evangelism.” Looking ahead, the team is making some changes to sustain growth, For example, they've learned that even in Florida, February temperatures have dissuaded women from participating. So they plan to start the 2014 schedule later in the year, sealing back to 43 events, They're also planning to expand overseas and are considering RUN FOR YOUR LIVES. Zombiephies are chased by the undead and encounter cbstacles like a blood pt, Srrouehouse and maze in this 5K race eld at various locations nationwide. Once Billed as the “happiest SK on the plone,” this untied race inmore than 100 US. cites has only two rules: Wear white atthe starting line, and fish “platted in calored powder. This year's events wll atract move than I milion runners, Up fem 600,000 in 2072. ‘THE GREAT BULL RUN Modeled after Spain's San Fermin festival, this quarter= rile US, version takes pace in large verues (as opposed toaty streets) allowing thril> seekers to “grab Me by the hors.” More about aiding jetting gored than actual run- fing the ace launched this fal in Vigjnia and wil expand to more locations next year More races to get the blood pumping ‘TOUGH MUDDER “Teugh Muder events are untimed 10 to T2-rie ‘bstacle courses designed by Bish Special Forces to test “all-around strength, stamina, ‘mental grit and camaraderie” survivors mate it to the Oniy 78 percent of entrants frishline (the “Safe Zone"), successfully comalete each of iste tocelebrate at the | the 2040.25 challenges, which Apocalypse Party. include plunging into ice water,