Visit our mobile site

The Globe and Mail

Jump to main navigation
Jump to main content

News Search
Search Stock Quotes
Search The Web
Search People at canada411.ca
Search Businesses at yellowpages.ca
Search Jobs at eluta.ca
Facebook Inc. logo is reflected in the eyeglasses of a user in this arranged photo in San Francisco, Calif. - Facebook Inc. logo is reflected in the eyeglasses of a user in this arranged photo in San Francisco, Calif. | © 2011 Bloomberg Finance LP

Facebook Inc. logo is reflected in the eyeglasses of a user in this arranged photo in San Francisco, Calif.

Facebook Inc. logo is reflected in the eyeglasses of a user in this arranged photo in San Francisco, Calif. - Facebook Inc. logo is reflected in the eyeglasses of a user in this arranged photo in San Francisco, Calif. | © 2011 Bloomberg Finance LP
Enlarge this image

Small Business Briefing

What Facebook's IPO can teach entrepreneurs

Globe and Mail Update

The latest news and information for entrepreneurs from across the web universe, brought to you by the Report on Small Business team. Follow us on Twitter @GlobeSmallBiz

Lessons learned from big business

If Facebook files for an IPO, as expected, its valuation could be one of the largest ever. Shares of the Palo Alto, Calif.-based company will likely debut in May, following the SEC’s review of the file, which normally takes three to four months.

Investors have been longing to get a stake in the biggest trend hitting the Internet since Google brought its powerful search algorithms and lucrative advertising model to the markets in 2004.

In the meantime, smaller companies and their owners, Inc's Erik Sherman writes, can learn some valuable lessons from the path Facebook has followed to the public markets.

Here's a brief look at the six ideas he came up with:

  1. Take your time
  2. Focus on revenue, not just customers
  3. Get ready for the limelight
  4. Banks are not your friends
  5. Things take off after funding
  6. Ask for an allowance when Dad's smiling

Working to 'eliminate open defecation'

BRAC, a global development organization based in Dhaka, Bangladesh is financing the start-up of more small businesses in a bid to reach households trapped in extreme poverty. With a new round of financial assistance from the Bill and Melinda Gates Foundation, the organization is rolling out the second phase of its water and sanitation and hygiene (WASH) program. The first phase has already reached more than 25 million people. “We look forward to the second phase of the program, where we’ll direct our attention to the ultra-poor, or people living at the bottom 10 per cent of the economic pyramid," says program director Babar Kabir. "We are working to eliminate open defecation in Bangladesh.” BRAC is scaling up market-based solutions in 10 countries in Africa, Asia and the Caribbean, with most of them developed in its home country of Bangladesh.

A novel idea in a buyer's market

Marketplace Homes, a business that helps people buy new houses by turning their old ones into rental properties managed by the firm, started in the suburbs of Detroit and has now spread to 17 states. The company payroll has increased to 60 employees from 16 in the past year, Fox Small Business Center reports. "The most common client is a growing family," says owner Mike Kalis. "They feel stuck and a lot of times, because of the economy, their old home isn't worth what it used to be worth. We're telling people there is a simple solution of leasing out your home so that they can get into that new home they really need." In order to qualify, a homeowner needs to be cleared for a second mortgage. If you can meet the requirement, Mr. Kalis said, you can take advantage of the buyer's market. Marketplace gets 6-per-cent to 8-per-cent commission from the builders.

EVENTS AND KEY DATES

Search for the best in the world

Three International finalists from around the world will be chosen for the JCI Creative Young Entrepreneur Award, and they will receive a free round-trip airline ticket to attend the JCI World Congress to be held in November in Taipei. The prize package also includes a free hotel stay at the congress headquarters hotel, and one free JCI World Congress registration. One finalist will be selected by a panel of international judges as the 2012 JCI Creative Young Entrepreneur: the top creative young entrepreneur in the world.

How to leverage social platforms