Essentials of Business Success

April 13, 2012 by 4 Comments

What does it take to make a business successful? How can someone who has never run a business before start, build, and run a successful business? This is a really good question, especially since most businesses still fail in the first five years.

I think that there are some essentials of business success that must be considered by every entrepreneur and new business start-up before they turn on the first light, make the first business contact, or open the door for the very first time.

1.    You must develop an entrepreneurial mindset. With this mindset, you will learn to embrace the concept of delayed gratification. You will have thought through the incredibly important question, “How long can I run this business before making a profit?” You will understand that starting a business requires a higher than normal financial risk tolerance.
2.    You must understand how money works. If you don’t really understand the difference between an asset and a liability your chances for success diminish drastically. Managing money correctly in the early stages of your business sets the standard for success in the long run.
3.    You must understand the basics of marketing your business. With all the options today both online and offline, you need to know what will bring you new customers, what will keep existing customers, and what will not! Too many new businesses collapse under the weight of a trial and error marketing plan.
4.    You must understand what it means to be a leader in your chosen field. Every industry is filled with people “just like everyone else.” What you must do to be successful is to set yourself apart as someone with a unique value as a thought leader in your industry.
5.    You must continue to grow as a person. Everyone enters the world of businesses with personal strengths and weaknesses. Working to improve your talents and skill set will allow you to continue to improve the quality of your business for your current clients as well as for new clients that will be added over time.

With an understanding of these essentials of business success, you will give yourself a more than fighting chance to be one of those companies who survive where others will fail.

What other essentials do you think are important for new business start-ups to know and understand?

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How to Make Your Start-up Succeed

March 19, 2012 by Leave a Comment

 

Homeward bound

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In my last post [Where most start-ups fail]I wrote about the negative side of the whole
entrepreneurial “game.” So, I figure that I ought to go the other direction today and look at entrepreneurialism from the positive side and talk about how to make your start-up succeed.

 

  1. Define the word success. It is such a rich word and is filled with so many nuances that a single, sterile definition is simply not applicable in most cases. So, take time to think and wonder to yourself (and even out loud) what does success look like to me?
  2. Take time to do your research. By research, I mean looking at your start-up from every angle. Look at the pros AND the cons. Be diligent and honest about the possibilities, but don’t let the naysayers rob you of your dream either.
  3. DON’T QUIT YOUR DAY JOB!! Since I work almost exclusively with micro-businesses, I can say this without hesitation. Until your business is producing approximately twice your needed earnings don’t quit your day job. There are so many benefits to that paycheck that most start-ups don’t consider that they leave early, only to find that what they had at work was better than what they have in business and that struggle alone and wrest your life’s dream and purpose right out of your hands.

I know that what I have said here isn’t particularly profound, but I also know most entrepreneurs fail in their start-ups for these very reasons (particularly the micro-businesses that I work with everyday). Take stock, take time to think, but, in the end, build, grow, explore, and change your world. Success (by your definition) awaits. Go get it!!

 

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Where Most Start-ups Fail

March 17, 2012 by 3 Comments
Food and Drink(8)

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I was sitting in a local coffee shop the other day and while doing some computer work when the large table in front of me began to fill. The conversation around the table was louder than any other and so my curiosity got the best of me and from my spot hidden in my booth, I listened in.

The conversation was about business (so I interest was piqued even more). There was one central figure in the conversation telling the rest of those around the table (and anyone within earshot) about how he was once a truck driver, deep in debt, but because of his opportunity was now out of debt, making a strong six figure income, and that anyone with the right motivation could do the same thing.

He then explained that the compensation plan was very complicated and would only confuse those at the table if he tried to explain it, but he assured them, it worked and worked well. He also said that all that you had to do to be successful was to use the product and find three other people to use it while everyone taught those using it to find three others to do the same thing.

He then assured these folks that if they would just “go to the website and place their first order, they would be on their way to the success he has come to know.”

As I listened, I thought about what I do (Helping entrepreneurs design success.) And, as I thought, I was struck by this conversation and how it teaches about three areas where most start-ups fail:

  1. They start-up based on the “if I can do it, anybody can do it” philosophy. This is simply not true. There are some things in life that no matter how much we want them and/or how much we practice, we are not going to succeed in doing. (Playing second base for the St. Louis Cardinals as a 56 year old rookie who can’t field, run, or hit a 90 mph fastball would be a good example.)
  2. They start-up based on the “everyone is going to be as excited as you” mentality. As a business start-up you must remember that your enthusiasm is important but that most customers are skeptical and that doesn’t change until you create value for them.
  3. They start-up before they fully understand the risks and how the money is really made. If the way to make money in a business is not clear and/or the person asking you to “get in” can’t/won’t explain it, you are asking for both trouble and eventually the failure of your business.

I don’t in anyway want to disparage the guy talking at the table that day. He was telling people, most likely what he was taught to tell them. His business might well be the answer for many, but to start-up with such vague promises and such little understanding doesn’t make great business sense. Make sure you know all you need to know and then go out and design success!

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How Much Time Does It Take?

March 15, 2012 by Leave a Comment

How much time does it take to make sure you are doing the right thing in starting a business? That’s a good question. One that unfortunately doesn’t have a cut and dried answer. There are many factors that every new entrepreneur must consider and the time it takes to consider these factors varies person to person.

Here are just a few of the factors new entrepreneurs need to consider:

1.    Building a business based on their life’s purpose. Many have not even considered that their life really has a purpose, so to begin at this spot might take a significant amount of time.
2.    Determining whether or not their business idea can be a function of that purpose. It will take some time research, to structure, and to create the mindset that such a business can be created/profitable.
3.   The new entrepreneur must also consider their current skill set to decide what they know, what they need to know, and how long it will take to gain any additional knowledge as well as how much that knowledge will cost. They then must determine if they can spend the time/resources to gain that knowledge.

This list of considerations is by no means an exhaustive list. On the contrary, it is just a beginning. Each entrepreneur will have these and many other factors on their own list of  potential questions that will need to be asked and answered before any business planning, modeling, or marketing would even begin to take place.

It is possible for some that these questions can be answered quickly and with little effort, but, for most new entrepreneurs, care must be taken and time spent should not be considered wasted if, in the end, the right business is started and the entrepreneur is able to live their dream, according to their purpose, in both life and business.

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What’s Simple Isn’t Always Easy

March 10, 2012 by Leave a Comment

In my last post I wrote about mirco-business start-ups and how they were the wave of the future. As is the case with most posts I had some good comments and some push back. I wanted to take a couple minutes this morning to respond to the push back which centered around the idea that starting a micro-business was not as easy as I made it sound.

A Picture of an Staples, Inc. easy button

Image via Wikipedia

Three things came to mind as I read that comment:

  1. There is a difference between simple and easy. In my mind something that is simple is something that is not complicated. Take for instance the putting stroke in golf. It is a very simple motion, back and forth with the putter face square at impact. But, if you have ever tried it for yourself you know that putting for a birdie with the pressure of winning a round is a lot harder than the simplicity of the stroke would indicate. The fact is that what’s simple isn’t always easy. The carefully thought out steps to establish a micro-business is not complicated, but the application of that simple process is not always easy.
  2. Anything of value in life requires both effort and commitment. Personal health comes from proper diet coupled with exercise (neither are easily accomplished). Creating a successful business requires planning and execution (again not easily accomplished). However, as with personal health, the effort needed and the commitment required are worthy of the outcome. So it is with starting a business. The outcome of being in business for yourself and living your passion is worthy of the effort and commitment it takes to get there.
  3. Business creators thrive on the challenge. I for one will readily admit that I am a terrible employee. My life desires have always tended to the creative and most employers don’t really like their employees being creative. Those employers already have a business culture and don’t particularly care for someone coming into it and trying to change things. The challenge of starting a business and creating a culture that matches who you are is what makes the efforts worth the struggles. Entrepreneurs thrive on overcoming obstacles and turning their dreams into working businesses.

Now I understand the struggles that come with micro-business ownership, but I personally would choose any other life. It is part of what gets me up in the morning and what keeps me up late into the night (sometimes at least). It’s what makes me tick. That said, I know that what’s simple isn’t always easy!

 

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Micro-business Start-ups

March 5, 2012 by 4 Comments

One of the biggest questions I get asked is “Can a person with very little money in their pocket really create and grow a successful business?”

The answer to the question is a very simple one – YES!!!

You see, according to the US Census bureau 60% of businesses start with less than $5,000 in start-up capital. There are some very specific things that micro-business start-ups must do in order to beat the odds and become a solid business that meets the needs of its clients while providing the income necessary for you, its owner.

  1. Make sure that you spend every dollar with a purpose and with a plan. With the financial limitations that micro-business start-ups are under you need to make sure that every dollar spent makes your business stronger and more capable of providing the best product/service to your customers.
  2. Become a master of the creative and innovative. It doesn’t cost anything to think and the most successful businesses are the ones whose creativity and innovation stand out from the crowd. Be that business!
  3. Always keep your passion and vision in mind. Micro-business start-ups have a tendency to look for multiple sources of income rather than remembering why they started their business in the first place and relying on their passion and vision. Don’t do that. Stay with your passion, the money will come as you develop your passion.

Micro-businesses are the wave of the future. More and more people are going to find their way into the business world through this door. If you are looking at this possibility make sure you take your time, get prepared, and let your vision/passion guide the direction of your business!

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The Art of Discovery

February 20, 2012 by 1 Comment


In my research for a new workshop my good friend Dallon Christensen and I are hosting, I have been amazed with the discovery phase of an entrepreneurs journey in the development of a new business. What has amazed me most is how little real real consideration is made in this phase of business planning. It seems that most entrepreneurs either hear about a “great business idea” or image one themselves and then (in as quick a time as possible) bring the “great business idea” to market.

I think that one of the reasons that the discovery phase is often dramatically shortened if not overlooked all together is that it is really more art than science. It requires a more “emotion based, introspective, who and what do you really want in life” approach than that of the “get a product to market” phase.

Discovery is really about:

  1. Understanding who you really are at your core and then deciding if this “great business idea” allows you to be successful without compromising the real you.
  2. Looking at the business from the perspective of your definition of success and seeing whether bringing this idea to market measures up to success as defined by you.
  3. Understanding your life purpose and then determining whether or not this new venture will enhance or detract form that purpose.

As one who sees the potential in every business deal, I know from personal experience that to fail to learn the art of discovery can bring difficult times to what for an entrepreneur should be a wondrous experience. While you might not see yourself as the introspective type, you skip this step to your own peril. (Not just the time, effort, and resources, but also the heartache and emotional distress that accompanies the failure of living life in alignment with your core purpose.)

Take time to learn the art of discovery. It will make your life/business more successful and your life’s purpose more evident to everyone around you!

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Turning Discovery into Design

February 9, 2012 by 3 Comments

There are so many people who have a great idea for a business living within them. These people just know that if they could discover their life/business passions and develop a plan to bring them to the market that they could create the life of their dreams.

From that group of potential entrepreneurs, a substantial number actually spend time discovering how this big idea fits together with their life and business passions, their definition of success, and their desire to live life on their own terms. After this time of discovery, they are more convinced than ever that their passion is indeed a viable business opportunity.

But, even after all of this discovery, the rate of new business failures among new business start-ups is still incredibly high. I think that the primary reason for this is that most entrepreneurs don’t really understand the principle of turning discovery into design.

Design is the part of your business development that creates a business model, a business plan, and a marketing plan that will allow your vision come to life in a powerful and systematic way. This phase of business development must be accomplished in order to both understand how your definition of success looks from a business point of view and how to track the progress of your business to make sure that you are moving in the direction of that definition.

Without the creation of a business design even the best idea and the greatest passion is doomed to failure or the regret of what I “shoulda” or “coulda” done in life! How have you done in the design stage of your business development? What you recommend people look for when designing success?

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Three Key Pieces to the Business Success Puzzle

January 20, 2012 by 5 Comments
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I meet people on a regular basis who have incredible ideas that they think could become multimillion dollar businesses. In many cases they are right. However, even in those cases where their ideas could indeed create strong and secure businesses, either their amazing idea dies on the vine, unpicked and wasted or they try to pick the grapes at the wrong time and/or they handle them badly and they are spoiled after being picked.

For a business to start right and grow steadily every potential entrepreneur needs to understand the three key pieces to the business success puzzle:

  1. Every potential entrepreneur must discover what they want to do, the price they are willing to pay, and how starting a business will effect the whole of their lives. This time of discovery usually takes longer than the entrepreneur wants to take, but that is why most entrepreneurs fail in the early years of their start-up.
  2. Every potential entrepreneur must take the time to design a solid foundation so that your business will meet both your financial and life goals. I think that it is sad to see really good people who end up building their lives around their businesses rather than building their businesses around their lives.
  3. Every potential entrepreneurs must deliver their new product or service to a customer base developed through a solid marketing strategy that systematically and  consistently creates new business. New business owners think that their zeal for their product or service will create new sales and spend little or no time or resources developing a powerful marketing strategy.

These three keys (discovery, design, and delivery) are absolutely necessary for any business to succeed. If you are in the early stages of a business start-up or have found your young business stuck, consider where you are in relationship to these pieces to the success puzzle.

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The Doulos Group Launches

January 4, 2012 by Leave a Comment
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Baby Boom Entrepreneurs is giving way as a blog to become a part of a broader blog representing the whole business design of The Doulos Group.

I hope all of you will find your way over to the new blog and that you find great value in the information that you find there. I am still very concerned with the direction this current economy is leading we boomers and I am going to do my best to make information available to you that will help you make sense of it all.

See you over at The Doulos Group!

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