There are a number of components that make or break a startup business. Over the years there have been a few that stand out above the rest. I have seen startups come and go. And Ivé seen some of them become well-organized, super-effective profit-machines. Unfortunately the former is a lot more common than the latter. Most startups fail, or should I say they fail to provide the founders and the support team around them with adequate pay-off with regards to the often very hard work involved. So what does make one startup a success and another a failure? There are a lot of factors involved and it is difficult to recognize and categorize all of them, but there are some common denominators to those businesses that finally make it. Here is my list, while it may not be complete or correspondent to another man´s list, I have found these qualities to be a good predictor of longer-term startup success:

1. Frugal living. Keeping costs low is one of the most important prerequisites for success. I don´t know why it has such powerful predictive capabilities regarding to ultimate success or failure, but it is a time-tested and empirical piece of the puzzle that cannot be overlooked. First of all, keeping costs low gives entrepreneurs time to get a firm foothold in the market place. Providing that you have something of value, it may take some time before enough people recognize that value, and to survive that time period entrepreneurs need capital. The less capital they need, the easier it is to keep the operation going. Besides this there seems to be something cultural about keeping costs low, i e startups that keep costs low tend to be led by entrepreneurs who live pretty simple and straightforward low-maintenance lifestyles. They keep pushing towards their goals, and money is more of a vehicle in order to realize their dreams than it is a goal in its own right. This brings us to the next item on this list.

2. Singleness of purpose. Those entrepreneurs that tend to make it have a certain type of intensity about them. This does not mean that they are outgoing or outspoken. There seems to be successful entrepreneurs among all different personality types. What it means is that they are often very passionate and knowledgable about their line of business and their enterprise. You can see it in their eyes and hear it in their voice once you start discussing with them. They never get enough. They can sit until 3 am in the morning and discuss what to other individuals would seem as trivial things. To put it bluntly they are, in the purest sense of the word, nerds. They know it. They love it. And the market place often enough loves it as well. There is nothing like a good dose of passion to spark things up. And there is nothing better than pure passion to ignite that very powerful engine inside inside our souls which we refer to as singleness of purpose.

3. Entrepreneurs. The entrepreneurs make up the heart of any business. They are by far the most important component in the equation. I would rather deal with fantastic entrepreneurs with a lousy idea, than I would deal with not-so-great entrepreneurs with a potential blockbuster. Good people tend to do fantastic things, given enough time. Lesser entrepreneurs can screw up a gold mine. If I could just pick one item on this list this would be it. Show me some great entrepreneurs and I will show you a good investment opportunity. Show me founders with heart, passion, smarts and good working ethics and the world will beat a path to your door. Really, it´s that simple.

4. Persistence. No matter what line of business you choose to enter there will be some major obstacles down the road. All businesses move in cycles. There will always be both good and demoralizing, bad times. While the good times often seem to pass by surprisingly fast, it is of paramount importance to withstand the bad times firmly. There is nothing as valuable for an entrepreneur than sheer persistance. It will overcome most obstacles, given enough time. It transcends smarts, capital, connections, even luck to some extent. If you just have sheer persistance things tend to work out- eventually. Whenever you read about a successful entrepreneur in the magazine know this- they have all failed a thousand times. No one knew about them back then. Nobody saw them struggle. Nobody cared. There was no one around to see them tweak their approach a little, try again, try harder, this time with even more determination. The world will notice when you succeed. The thousand mistakes that build up to ultimate success will always go unnoticed. And the story about the persistance so dearly required to succeed in business will be lost somewhere along the way.

5. Provide value to customers. In order to make money from a business idea it needs to solve a problem for potential customers. It needs to bring value to their lives. The more customers you affect with your product or service, the more money you tend to make. But you must provide value. There are a number of ways to provide value. Find an existing product or service and make it better. Or find a need that is not currently being met by the market place. Since the world is a big place and there are a lot of people doing business, many ideas have already been battle-tested and for that reason most businesses evolve around the concept of taking an existing idea and improving on it slightly. Or you take an existing idea and try to convert it to another arena. An example of this would be to take an existing business idea that is bringing value to customers and convert it to the world of online business. Providing you build on the strengths of the new medium, you can very often get some great competitive advantages from making this shift.

6. Keep moving forward. The best entrepreneurs tend to always be moving forward. Some of the most successful ones I have met or worked with keep suprising me by always adding small, almost unoticable improvements to their business. They never stop improving. They tend not to be ovely concerned by what their competitors are doing. They are so focused on making their vision a reality, they simply don´t have the time to think about anybody else. Except for their customers. Successful entrepreneurs always try to make their core group of customers happy. In most instances I have found this customer satisfaction focus has less to do with making money than one might realize. Instead it is often rooted in a deep sense of pride and achievement that happy customers brings them. Paradoxically, by not thinking too much about what their competitors are doing or about how to increase profits, and instead focusing on continually improving the customer´s experience, these companies tend to do a lot better than their peers. The empirical evidence I have seen tends to support the idea of launching now, don´t postpone it. After that you need to continuously improve on your business and on the customer experience. An important part of these improvements is to be “close to the customers” and understand their needs and how you can fullfill those needs in the best way possible. Try to improve all the time. If something fails, try again this time with something slightly different. Don´t overanalyze. Don´t procrastinate. Just keep moving forward. Just keep improving the value you are offering to the world. All these small improvements tend to add up pretty impressively over time. A good startup is like a good bottle of wine. It tends to keep improving over the years, if you just give it the time it requires.

So there it is. The six qualities I have found in most successful entrepreneurs, after a lifetime of doing business and what seems like an eternity of learning from my own mistakes. Should you possess most or all of the qualities I have listed above, I can tell you that your prospects of making it as an entrepreneur are exceptional. Most of us have but a few of the qualities on the list, and we need to understand the importance of the others and try to improve on them. Not all people are cut out to be great entrepreneurs, but many can achieve a lot more than they might initially believe. As in most other endeavours in life it very often comes down to persistence and attitude. If you keep trying to do it, and yoy truly believe it can be accomplished very often, life will take you a lot further than you initially thought possibly. Go do it!

There are a large number of apps out there for the budding entrepreneur, but as always there are some who stand out and can be a real asset to your enterprise. What´s even better is that most of these assets are free of charge, or are quite inexpensive at the very least. While all of them might not be a perfect fit for you and your company- check them out and see for yourself if you have overlooked any of these must-have tools.

1. Google Docs. Google docs is an inspiring piece of software, from a company that has virtually flooded the market with inexpensive and useful software. While it has many potential uses the single use I prefer the most is that several people can conduct work on the same document at the same time, regardless of where they are situated. Perfect if you find yourself divided geographically from your co-workers. A masterpiece when you are travelling. You can access your team-work anywhere, anyplace and all it takes to be productive is an internet connection.

2. Dropbox. There are a number of companies that offer free data storage accessible from anywhere. For some reason I quickly grew accustomed to dropbox and the software has been a brilliant, reliable and loyal companion of mine ever since. Dropbox is ideal for file sharing, but you can also use it for backup and as a mobile storage center for all your information and work. Forgot a document? No problem. The cloud is accessible from anywhere. Your laptop crashed? No sweat. Dropbox has you covered. The pricing structure is pretty straightforward. You get a decent amount of space for free, and you need to pay a subscription for additional storage capacity. I got dropbox on all my computers, my iphone and my ipad. It doesn´t get any easier to access files across different platforms than this.

3. Evernote. I use Evernote for so many things I can´t even begin to describe how useful i find this software. I keep my todo-list here and update them along the day. I do this on different devices since I have evernote installed on all of them and the program updates new input automatically across all platforms. I do voice memos or just quick notes when I get a great business idea I want to examine later on. When I find interesting stuff on the internet I use Evernote to save it for later use and reference. I also store some important paperwork and PDF:s in my account, for quick and easy access. I haven´t tried to share evernote yet, but I have heard it is a powerful tool for team-based efforts, much like Google docs. Standard version is free of charge, premium version will cost you a few bucks a month. Try the free version. If you love it as much as I do it´s easy peasy to go premium.

4. Jump Desktop. A good way to be able to access your computer remotely. Basically this app let´s you use your computer asif you were in the same room. All it takes is internet access. While I don´t use this handy software nearly as much as I use some of the other items on this list, there have been times when this application has saved the day. Priced around $ 20 it is a keeper for those of you who want remote control capabilities literally in your pocket.

While there are plenty of useful resources out there these are some of those I consider to bring the highest value at the lowest possible cost. To me, most of these are no-brainers, and if you for some reason haven´t checked them out yet, you definitely should. The freemium model that most of these companies employ lets you try before you buy. There is simply no more excuses. Just go get them and try them out. Enjoy!

There are quite a few pitfalls to be aware of before you start splashing around yuor nest egg on your business idea, however terrific and original it may be. First of all it might be a good idea to start with small baby steps. Just try putting one foot in front of the other and remember that a good defense is most often the best offense. Do you really need to quit your job right away, or can you build your business in the evenings and during weekends in the beginning? Do you really need the fancy business cards or the posh office funrniture? Having build a number of successful businesses myself, and having spent years of my life mentoring younger entrepreneurs there are some prudent advice I would like to give you.

My advice is based on years and years of experience and hard work. I paid dearly to get this experience, and while there may be exceptions to the rules you should at least consider my advice if you are thinking about opening your first business. So here it goes, without further delay, a list of things that might help your first business take off smoothly (and with less anxiety).

1. Don´t quit your day job immediately. There is simply no point in quitting your day job the moment you get a new business idea. Growing a business is a long and tiresome process. It is a marathon, not a sprinting contest. You should expect a lot of time to pass by before you can take out a salary, let alone take home some profits from your business startup. Use the cash flow and sense of security that your day job provides you with, and work your business startup in your spare time. Put aside some extra cash for rainier days, and accept the additional work-load of having a regular day-time job. It is only temporary, and it serves a greater purpose.

2. Test your business idea quickly and effectively. You should try to test your business idea as soon as possible. There has never been a better time in history to take a product to market and test its merits quickly and in an affordable manner. The internet is a great channel for giving your idea a test drive. Go do some face-to-face selling. Phone and e-mail prospective clients. Talk to potential customers and get their input. It is important to talk to real customers, and not family and friends. Get the truth, adapt to it, and only then go build on your product (or service) and brand.

3. Keep costs to a minimum. You don´t really need anything in order to start a new business. It takes a computer, a phone, some spare cash and a lot of determination and hard work. All the fluff, is uneccessary, and you should avoid it like the plague- at least in the beginning. You don´t need a fancy office. You do need to keep your overhead low and your work ethic high. In the long run a profitable and healthy business is more about attitude than props.

4. Stay committed. Persevearence is the number one personality trait to posses if you wish to succeed in business. I have seen many smart individuals fail over the years. I have seen quite a few committed entrepreneurs fail over the years but in general, this group bounces back sooner or later. They learn from their mistakes and they never stop pressing forward, and pursuing their dreams. They will not let a bump in the road interfere with their longer-term visions and goals.

5. Adapt to reality. As Darwin once stated, those who prosper are not the biggest, brightest or best. Those who prosper are good at recognizing and adapting to change. While it is highly desirable to be stubborn as an entrepreneur in pursuing your passions and dreams, do not let yourself become unaware of the world around you. You need to be able to separate a temporary bump in the road from a structural defficiency in your business idea. If something isn´t working it is important to ask yourself why, and come up with an honest answer. Adapt to the truth, and once you do go back to being your old stubborn self and pursuing your dream once again.

While my advice might not work for everybody, I truly believe they will be helpful to most who are thinking about starting their own business. Start small, keep your costs to a minimum, find a (successful) mentor, put your game face on and start chasing your dreams. There is no better thing than to be in control of you own business and taking command of your own destiny. Just make sure to have the defense covered before starting to think about the offense…

The annual top-earner list of Hedge Fund Managers “Absolute Return+Alpha” was interesting reading indeed. The year of 2011 was a difficult one for investors and many hedge fund managers across the globe were caught on the wrong side of some troublesome (european) macro news. The average hedge fund lost more than 2 % last year, but the hedge fund stars on this prestigous list were the exceptions to the rule. The 25 highest earning hedge fund managers on the list made a combined $ 14.4 billion during 2011, which is quite a feat. There were some superstars absent from this year´s list, including George Soros, Bruce Kovner and John Paulson- the man who was top dog of the bunch in last year´s survey (making $ 4.9 billion in 2010).

As we go through the list we recognize most names. It is a “who´s who” with regards to alpha management, and most of the participants are not first-time offenders with regards to being on this list. Let´s have a quick look at those who came out on top during 2011:

1. Raymond Dalio
The founder of the world´s largest hedge fund group Bridgewater Associates Raymond Dalio took home a whopping $ 3.9 billion for 2011. With an impressive gain of some 16.05 % for the firm´s biggest hedge fund “Pure Alpha” and additional gains on his personal assets under management Mr Dalio takes home the sweet spot on last year´s list.

2. Carl Icahn
Carl Icahn of Icahn Capital Management made a respectable $ 2.5 billion during 2011. The high-profile activist racked up an impressive 34,5% gross return for his customers during the year, making his spot on this list not only logical- he deserves it.

3. James Simons
The head of the “code breakers” at Renaissance Technologies Corp booked $ 2.1 billion in personal profit for the year of 2011. After less than stellar performace during the last couple of year´s Rennaisance is back with a vengeance, posting a 34 % gain for the year of 2011.

4. Kenneth Griffin
Citadel founder Kenneth Griffin netted gains above 20 % for 2011 and earned a neat $ 700 million for his troubles. Thus, Citadel has come back in style after a troublesome 2008 where the losses amounted to a hefty 55 %.

5. Steve Cohen
The founder and head trader of SAC Capitol Advisors raked in $ 585 million in personal profit during 2011. Cohen “only” made 8 % for the year, and yet he might be among the most impressive individuals on this list. He is known for his 50 % performance fee (the fund made 16 % gross) but more importantly he has an outstandingly consistent track record, making impressive returns for his investors for the better part of the last two decades.

The time-span for making it has certainly become a lot shorter during the last couple of decades. Gone are the days where it took a life-time of hard work to become a billionaire, and enter the club of the super-rich. Today, all it seems to take is a laptop, a vision, some serious coding skills, perserverance and luck. During the first Internet boom companies were valued in ridiculous ways, but things have changed. Today a lot of the Internet giants have actually found ways to make money online (who would have guessed) and in some cases they are even raking it in faster than they can count it. But more importantly- the speed with which some of these companies have conquered the world is truly mindblowing.

Apple is at the top of the food chain at the moment, with a market cap of some $ 546 billion and an incredible $ 25 billion in profit for 2011. However, Apple was founded as early as 1976, which essentially means it is an “old”" company by the standards of the industry. Well, what about Google? With a market cap of some $ 204 billion and a 2011 profit of $ 9.4 billion they are certainly a force to be reckoned with. But Google was founded in 1998, which doesn´t necessarily make it “old”, but it´s certainly not ciónsidered a young company. Enter Facebook, the social network giant with a somewhat unidentifiable market cap anywhere in the range of $ 70-100 billion and a net profit for 2011 just shy of $ 1 billion. Facebook has been around since 2004, and many still consider it quite a new kid on the block. And yet, they are not considered a young company. Same goes for LinkedIn, founded in 2002, with a market cap of roughly $ 10 billion and a $ 10 million 2011 profit.

In order to be considered a rather young company you need to have a profile corresponding to Twitter, Zynga or Groupon. Twitter was founded in July of 2006, Zynga was founded in April of 2007 and Groupon was founded in November of 2008. They all have market caps in the range $ 9-10 billion and both Zynga and Groupon made around $ 400 million in profits for 2011. They are the poster boys of the new economy- and a fast-paced and energetic environment with plenty of opportunity. If you make it in this industry- it happens fast and it happens big. There´s of course a flip side to the coin. MySpace and Yahoo were considered champions a while ago. Not so anymore. Instead unknown companies like Pinterest have taken the leap and are toeing the line to dotcom stardom. Change happens quickly. What´s hot today may not be hot tomorrow. All it takes is one small mistake, a new trend or technology and the dotcom battlefield could end up looking very different indeed.

Everybody is looking for the new hot fearless “kid on the block”, and a chance to get in early, before the writing is on the wall. And they should be, because the world around us is changing a lot faster than we might be aware of.

Incredible fortunes are built in shorter time-spans than any other era in world history. These are truly interesting times we are living in…

In a new attempt to take a slice of the highly lucrative market of portable devices Google has made its stand. They are about to launch their new “Ipad-killer”, a neat device running on android (4.0 Ice Cream) or Jelly Bean. Sporting a Nvidial Dual Core processor and a smaller 7-inch screen Google´s newcomer will enter the market at a price range of $150-200. Google has had some success in the smart phone market and the android operating system enjoys a wide following, but Apple has definitely come out on top of the tablet market so far. One year after the launch of the first android-based tablet Ipad is still outselling the rest, roughly 75% of all tablets are of Apple origin.

The Ipad had a first-mover advantage, and it seems most customers still prefer it over the competition. On top of that, Apple has had some success in delaying the competition by handing out some strategic law suits along the way. The tablet wars are far from over though. Google has aquired Motorola recently, Samsung is making its bid to take over the throne longer-term and Amazon´s Kindle has had it´s fair share of success as well. The new Google teblet is coming in at roughly half the price of an Ipad, in the same price range as the Kindle device. While Apple is still the leader of the pack, and its New Ipad remains the premium tablet on the market, there will be plenty of unexpected twists and turns in the tablet wars over the coming years.