Entrepreneur U

Finding Your Path to Success

2011-06-15T11:37:00.000-04:00

Everyone in the world has been successful at something in their life whether it has been sports, video games, guitar, etc… As people move on in life, they have dreams of success in other things. In my life that has always been success in business. There are plenty of books out there recommending paths to success but I recommend using prior experience. Think back in your life about one thing you were successful at. For example, I was an exceptional wrestler in high school but what steps did I take to become an exceptional wrestler. The most important was the time and effort I put into the sport. There were many small steps in between that took a lot of time and effort and what separated me from the rest is that I took those steps.

The previous example does not apply for everyone but think of someone that is spectacular at Halo (not sure if that is still a relevant game but you get the point). What do they do that makes them better than everyone else? They play Halo for hours at a time against any person they can get to play. When they aren’t playing Halo they discuss it with other people who play. This is what makes them successful.

If you’re looking for success, take a step back and think of your last success. Get a piece of paper and begin to write down each step you took toward achieving that success. Now, place another piece of paper beside it. Look at each step and think of how that would translate into a step toward your new goal. Here is an example of mine:

Wrestling

· Offseason Training

o Personal Workouts

§ Cardio

§ Weightlifting

o Camps

§ Drills

§ Learning new technique

§ Competition

o Other team sports

§ Training

§ Competition

· In-Season

o Practice hard

o Drills

o Mentorship

o Competition

REPEAT THE PROCESS

Business

· Training

o Personal

§ Reading

§ Social Networking

o Events

§ Practice networking

§ Learn new things

§ Learn from experiences

o Joining Groups

§ Network constantly

§ Learn from experiences

· Deal Making

o Do research, know everything

o Prepare/practice repeatedly

o Get mentor/ listen to mentor

o Learn from experiences

REPEAT THE PROCESS

Check This Book Out!

2011-06-07T11:02:00.000-04:00

The book The Art of the Start by Guy Kawasaki is a microcosm of nearly every experience I’ve had with start-up companies, the good, the bad and the ugly. I was hesitant to read the book at first, asking myself what could I learn about something I’ve already experienced. I was definitely wrong. The book did an excellent job of explaining where entrepreneurs go wrong and why. Kawasaki has been at both ends of the spectrum (entrepreneur and investor) giving him an unbiased opinion on the realities of growing a company. While reading the book, I not only received explanation for why things we did went wrong but explanation on why things we did went right. I would recommend this book to any successful entrepreneur not just one at the beginning of their journey.

Moral of the story: you can learn something from every book you read and every situation you’re in as long as you keep your eyes open

Negativity in Michigan

2011-06-01T07:52:00.000-04:00

I would say this has recently come to light in Michigan but I would be lying. Michigan is an overtly pessimistic state whether that is due to lack of sunshine throughout the year or “old-timers” complaining about how things used to be back in the day when everyone had jobs at GM and times were great. Whatever the reason, this view of reality hurts the state. As recently as this morning, I read an article on mlive discussing how two brothers created a hangover cure. Comments from the readers were divided in thirds between the negative, the positive and the confused. The negative comments were the most disturbing not because they each began with a sentence about the product potentially being a hoax but that 85% of the prose was verbally attacking two people they didn’t even know on a personal level. This is what’s wrong with Michigan. This is not an argument on whether the product works or not but an argument on the support of their state. Michigan residents do not understand why young people want to move out of the state, well this is why. Young people want to do big things and change the game not be ridiculed for having the proverbially “balls” to change the game. It takes a lot to start a business but the hardest part is clearing through all the haters that wish they were in your shoes. I will say that there has been some positive light shining through the clouds in the last year but a few rays will not make Michigan a leader in the economy again. It will take the whole state to do this, from young to old.

Focusing on what’s Important

2011-05-19T10:18:00.000-04:00

These days it seems evident that young entrepreneurs get easily distracted by the next new fad. They drift from idea to idea forgetting what made them an entrepreneur in the first place. Constantly having the next best idea isn’t what makes an entrepreneur an entrepreneur, the ability to capitalize and follow-through on new ideas is what makes an entrepreneur. Once an entrepreneur has a great idea, they must focus on executing their strategic plan. They should eat, drink, sleep and live their strategic plan. This is the only way their new idea has a chance to succeed. After that is done, I encourage all entrepreneurs to drift to the next idea and repeat the process.

What the Fed Decision does for Entrepreneurs?

2011-04-27T15:33:00.000-04:00

If any entrepreneurs have been watching Federal Reserve Chairman Ben Bernanke explain this year’s FOMC decision, I hope you’re ready for meager profits and slow growth. The FOMC has decided to finish its current round of economic easing and keep the interest rate at 0.25%. Banks and large corporations will be happy because they are, in essence, receiving “free” money leading to the continuation of rising inflation in commodities and the devaluation of the US Dollar.

Cash flow and profits, for startup companies and small businesses, are a delicate balance. Gas prices shooting up a dollar over a two month period can put many small businesses out of business. More small businesses will fail to make it through the rest of the current recession and many startup companies will fail to launch. A squeeze on profits for a company that is barely profitable isn’t sustainable.

Why will large companies succeed? Large companies can survive extended periods of time at low profit margins because of their high volume. If something goes wrong, it is easier for them to gain financing because they can use the millions of dollars of assets on their books as collateral. This allows large companies to expand or maintain while their smaller competition is forced to cut operations or go bankrupt leading to larger more powerful corporations created by the Federal Reserve.

Poor People take Advice from Poor People

2011-04-20T14:18:00.000-04:00

It seems like everyday people give advice about things they shouldn’t be giving advice about. People in bankruptcy court are pretending they know a thing or two about money. People who lost their homes to foreclosure are advising that the best thing to do is buy a house, “It can only go up in value,” they say.

Do you think that makes sense?

I don’t

If you have a problem and are looking for a solution, who do you go to for advice? Has that person solved your specific problem before? If not, then why ask for advice from them?

Many people are facing this problem every day. I’m struggling with this problem right now. It’s always been common for people including me to seek advice from friends and family but they don’t always provide the best advice. Before seeking advice, ask yourself these questions:

1. Who do I know that has been in the same position I am in?

2. Are they where I want to be in life?

3. Are they doing the things I want to do?

These can be hard questions to answer. Sometimes the people you rely on most don’t fit the description of the answers you are looking for. I know the people I usually rely, my parents and friends, have never been in the position I am in now. To get the outcome I want I have to ask someone who has earned the outcome that I want. Always remember to think about who you ask advice from before you ask it.

False Prophets Promote “Intrapreneurship”

2011-04-11T11:31:00.000-04:00

I had the pleasure of attending CMU’s New Venture Competition on Friday. It was exciting to hear some bold new ideas especially from young people. What was not exciting to hear was the use of the word “intrapreneur.” For anyone who doesn’t know, an “intrapreneur” is a person who innovates and improves things within an existing company. If I’m not mistaken, I believe that sounds familiar to the definition of a good employee. Entrepreneurs create jobs they don’t have them. Entrepreneurs create wealth for themselves through the products and services they create. Entrepreneurs do not create wealth for CEOs and Board Members, where their only benefit is a $5,000 increase in their salary.

This post may make me sound bitter, which it should. The reason this word shouldn’t be used is because it doesn’t promote innovation. It promotes becoming a good employee for big business. I spent some time talking with these young entrepreneurs throughout and after the event and I was disheartened. They experienced a whole day of excitement where they competed for a $30,000 prize and a chance to follow their dreams, but in the end they were all talking about getting jobs in the next month. Even the winner of the competition was worried about getting a job after college. Innovation only comes from thinking outside the box and I hardly believe people start thinking outside the box when they are already in it. These young entrepreneurs need to be encouraged to follow their dreams, not the dreams of non-entrepreneurs.

"To get what you want, you must do things you've never done."

Surviving the Home Office Meltdown

2011-04-07T13:15:00.000-04:00

Anyone running a home business or working from home has had some trouble staying focused. Although there are great benefits to working from home, such as no wasted time getting ready in the morning, save on gas and less calls to Jimmy John’s, it can be hard to stay motivated with so many distractions around. I’ve created some guidelines that have helped make my day more efficient and rid myself of some distractions.

1. Dedicate a space of your house just for work. Often working in the same room where you spend your leisure time will result in less work and more leisure time. Get rid of the TV and don’t work from the couch.

2. Keep your work space organized. Keeping your work space organized, no matter your specific organization habits, will prevent you from walking around the house looking for things and noticing unfinished chores that should be left for after your work is done.

3. Don’t be afraid to use inspiration. Even the best need to be inspired in order to keep motivated. Put up inspirational pictures, quotes, etc… Whatever keeps you focused on your goal, keep it close.

Trying to Hook That Big Fish? Make Sure You’re Using the Right Bait

2011-04-04T17:42:00.000-04:00

It seems harder than ever these days to locate funding for your next big project. There is virtually no Angel Investing going on right now in the State of Michigan and the banks are coming up with excuse after excuse on why YOU are not qualified to receive a loan. What can you do? Traditionally, investors and banks want to see a business plan. Investors will take business plans seriously if they are well written and thought out. They aren’t too picky, just looking for a few things:

· What problem is your product or service the solution for?

· How is it going to make money (your business model)?

· How much will it take to get started?

· How much money will it make them?

· Most importantly, who is going to get the job done (your management team)?

Before you can “reel them in,” you need a killer executive summary. If it’s good enough, they will jump in the boat for you.

Banks on the other hand are a nightmare. A business plan used to work but now banks are requiring:

· Business Plan

· Promises from vendors

· Collateral

· Legal Documents

o Franchise agreement

o Commercial leases

o Contracts with third parties

· Schematics for your building

· What color carpeting is in the building?

Ok, so I made the last one up but once you have everything a bank is looking for which is usually more than I listed, they will ask for something else. These days the best way to go is with an Investor but you have to be prepared if you want to get funding.

Do You Know Your Numbers?

2011-03-30T16:04:00.000-04:00

Large corporations know their numbers but I bet most small businesses don’t know theirs. I know it’s not my strong suit but I’m glad I found out what my numbers were. What I mean by “knowing your numbers,” is knowing how many leads you must get if you’re a salesman, how many potential customers must walkthrough your store if you own a shop or how many people you must add to your network if you’re a consultant. These numbers are extremely important to the success of any company. As a young entrepreneur, I thought in terms of sales instead of thinking in terms of what leads to my sales. Before I realized it, my sales were dwindling because I was focusing on the wrong things. If you are trying to achieve a goal, find your number by playing the law of averages. The law says that one person in ten will say “yes” to what you’re offering so if you want ten more clients this year, plan on shaking hands with at least 100 new faces. One success for every nine failures sounds bad, but it could be worse.

"I have not failed. I've just found 10,000 ways that won't work." - Thomas Edison

Local Events Promote Entrepreneurship

2011-03-29T08:10:00.000-04:00

There is a new wave of young entrepreneurs poised to take over Michigan. A colleague of mine participated in Startup Weekend Kalamazoo last weekend, where entrepreneurs pitch their ideas and form teams to start the company in a mere three days. At the end of this three day event, in which entrepreneurs spend over 12 hours each day working on their idea, entrepreneurs present their ideas again with awards going to the top companies. My calendar is filled with more of these exciting events that are coming up in April. Central Michigan University is sponsoring a New Venture Competition with awards totaling $45,000. There will be another Startup Weekend this time in East Lansing. Even Detroit is getting in to the mix with the Ignite Detroit event at Motor City Casino. These are great networking events for young entrepreneurs to attend. Even if you’re not participating, you need to get out and meet people.

“The only difference between where you are now and where you’ll be five years from now are the people you meet and the books you read.” –Charlie “Tremendous” Jones

What Most Small Businesses Don’t Have?

2011-03-28T09:52:00.000-04:00

I’ve been talking with small business owners and entrepreneurs for a number of years now. One thing I know for certain is that most of them lack project management skills. They have fantastic ideas and even larger dreams but they only see the end goal. They have a hard time grasping what steps it takes to get to the end goal. To me, the best analogy for getting to that end goal is similar to playing sports or trying to lose weight. Everyone starts with a certain set of statistics they wish to achieve the next season or a goal weight they wish to achieve by a certain date. An entrepreneur’s dream is no different. If you wish to lose weight, you know that by working out for 30 minutes a day everyday for two months will get you closer to your goal, and then add in a better diet over the same period of time and you can get there. A business is no different, just figure out the steps and follow them.

1. Goal. What are you trying to achieve? Write it down.

2. Steps. What do I have to do to get to the end goal? Write everything down that must be done.

3. Timeline. Where do I start? Number the order the steps need to be done.

NOW GET TO WORK!

Who Says Social Media isn’t Worth It?

2011-03-22T09:56:00.000-04:00

I constantly hear from the non-believers that social media doesn’t work. That it’s just something people do to pass their time. I say “Nay” to that concept. These people merely do not understand how important social media is. As a matter of fact, Coca-Cola decreased their mainstream advertising budget by 6.6% and focused more of their budget on social media. If the one of the world’s most recognized brands is taking social media seriously, then why shouldn’t you? If you are at all serious about your business, you must adapt to using social media. If you don’t, not only you but your business will be left behind.

Many people don’t know how to use social media properly but it’s as easy as reading a book or searching for some how-to videos on YouTube. If you are uncertain about the importance of social media in your business, I suggest reading the book 33 Million People in the Room by Juliette Powell for some insight.

“The definition of intelligence is having the ability to adapt the environment around you.” -Unknown

What business are you in?

2011-03-16T16:23:00.000-04:00

Many people come up with the greatest new invention or idea, quit their job and start their own business. What exactly does that mean?

Did they start their own company or are they self-employed?

Doesn’t self-employed mean they own their own business?

Owning a company or being self-employed is the same thing, if you have to show up for work every day. The real business you are in is owning a job not a business. Sure, if you’re self-employed you can choose whether you work or not, but if you don’t work you don’t get paid. Doesn’t sound like a business to me (sarcastic voice). A real business can run on its own without you. So the question you must ask yourself is, do I own a business or does my business own me? I hope you answer yes to owning a business but if you unfortunately found out that your business owns you, I strongly recommend reading the book E-Myth Revisited by Michael Gerber. This book is the beginning to freeing yourself from your business and seeing it a different light.

“Life isn’t about finding yourself, it is about creating yourself” –unknown.

Don’t find a business you can work in, create one that works for you.

Think you know how to research online? – 5 steps to do it better

2011-03-15T10:30:00.000-04:00

You might think you know how to research online. After all, Google’s been around since 2002. Well, think again! Finding the information you seek takes more than keying a couple words into a search engine. Follow these 5 steps and see if your findings improve.

First, let’s pick a topic to search. Currently, I’m doing some research for a product in the boating industry. Let’s work with that topic as an example. The following steps work well to gather information online for any project.

1. Start simple: First things first, always start off simple and go to Google, Bing or Yahoo. I prefer Google. Type in the topic and scan the first two to three pages that show up on the search engine. You will most likely not find what you are looking for. Using the boating theme, my guess is you typed in “boats” or “boating industry” and most of the links that came up were for boating related products for sale in your area.

2. Make query specific: Searches need to be specific. Make a list of all the specific information you want to find. For example, I’m looking for how many boaters are in the U.S., demographics and buying patterns. Try typing in “How many boaters are in the US” into the search engine. Scan the first two pages again. This time you’re likely to find a couple good links. For even better information keep tweaking the query and re-entering it into the search engine. Try “How many boats are in the US” or “What state has the most boats.” Keep changing the queries until you have found at least three to four different links that have consistent useful information.

3. Check trade/government association websites: Chances are you won’t get all of your questions answered through this process. Through your initial research some of the links that pop up should be for trade or government associations in the industry you are researching. These organizations usually offer information for free. If you are lucky, they will provide their annual reports or statistics for the industry for free. Perform searches for industry related organizations such as “boating associations” or “boating industry associations.” These searches should come up with some respectable associations like the US Coast Guard and the NMMA.

4. Dig deeper – industry magazines: These associations have a lot of knowledge on the industry as whole but not in-depth information on the consumers themselves. Using government resources like census.gov, Michigan.gov and others, you can find demographic information on where people live, how old they are and how much money they make per year. This information is important and useful but to dig deeper and fully understand consumers, search for industry magazines. Every magazine is looking for advertisers. In order to get them in the magazine, they provide what is called a media kit. This media kit is full of reader demographics and buying habits. Search “boating magazine Michigan” one of the links should be for Great Lakes Boating magazine. Take a look at their media kit and you’ll find lots of worthwhile information.

5. Finally, use your library resources. If you have access to a college library many of them have subscriptions to market research reports. This is always the first place I look when doing research but only because I have access to it. Even if you do not have access to many of the market research reports, search for them anyway because there is still useful information in the summary they provide for the report.

Following these steps will set your search in the right direction. You may not get every question answered initially, but as you learn the process, finding information will become quicker and easier.

Welcome to the world of online researching. Happy searching!

Go Out on a Limb and Grab that Fruit

2011-03-15T10:29:00.000-04:00

So you want to start your own business?

You better get started!

But I don’t know how? I’m afraid? What if it doesn’t work?

Entrepreneurs deal with these fears everyday by planning for them. Most by answering these simple questions:

1. Who is currently doing what I want to do?

2. Can I do it better?

3. Are there enough people who want what I am selling?

4. Are they capable of paying for it?

5. What do I need to get started?

6. How much do I charge to break-even?

Finding the answers to these questions is the first step and the first step is always the hardest.

"Don't be afraid to go out on a limb. That's where the fruit is." - H. Jackson Browne

P.S. Just remember to check the limb for fruit before you venture on to it.