Archive for February, 2010

Grow into business

Have you ever earned a dollar that was not part of your salary? I have added this question to the list of many others I ask of those who approach me wanting help to break out of cubicle insanity and become entrepreneurs. Often the answer is no.

The $2500 goal

Here is another good question.

How long will it take you to make $2500 in revenue from your new business?

When I ask this question I can tell a lot about a person. Many people just look very uncertain – almost nervous. This question is serious – a real measurement – a real goal. While $2500 to most of us is not going to be life changing – it strikes fear into many aspiring entrepreneurs.

I can see the answers and the internal argument going on within them? Here is what I read on their faces – their internal conversation.

I have no idea, $2500 is a ton of money for what I do? Yet $2500 is really nothing. If I cannot get $2500, then how can I get $25,000 – or better the $100,000 I am after. This is overwhelming! I can’t do this!

Have you ever had these thoughts? Do you now? Seriously – this is common! If you have comment on where you stand!

Grow into business

Here is the thing – if you want to become an entrepreneur and have not had any significant part time business – you are approaching becoming a fool if you plan to quit the day job and go for it. You have too much to learn – and too far to go. And one of you biggest challenges is YOU.

So start today and begin. Get some money coming in – this creates HUGE momentum. If you can make $100, you can make $1000!

If you can make $1000, you can make $2500 – just keep doing the same thing!

If you can make $2500, you can make $100,000.

Momentum is the key!

Instead of going into business – which seems like a huge leap to so many – just grow into business. Start selling something – products, services, whatever on a small scale. Grow into business!

What are you doing?

If you have done this and met a $2500 mark – leave a comment and tell us how you did it.

If you have the fears I have listed above  – comment on that also!

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Does it pay to be green?

A recent post by Small Business Trends hailed that businesses need to do more than claim they are green and environmentally friendly – now they need to show evidence to their customers of just how green. For example, I have seen some small companies participate in this thinking by posting on their website how many carbon credits they had purchased.

But I have to wonder —–

Do we really care? Really?

Here was my response/comment to the post:

Are we sure? I wonder if there is any research to show that customers really care. And do customers on the west coast care more than others?

And how are the challenges to global warming data changing this game?

On my side I find a lot of people who love the “green” stuff – but I also see people turned off by companies who think they are saving the world.

While I am not commenting so much about is global warming true or not (although as a recovering scientist I do have an opinion about the science) — I am just wondering … are we all jumping up and down thinking our customers care without knowing for sure?

For me, green used ot mean you had an upset stomach – something I might relate to a rough ride while deep sea fishing. Back in the ’70’s Kermit claimed it is “not easy being green.”  How we moved from being hard to be green to it is “good to be green” and now it is “a must to be green” I really am puzzled.

But what I notice is all best intentions in the world – people end up buying value. The idea of being green presupposes customers place a high value on a company spending its money on being green.

I am bettering this is not true. What do you think?

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Be a Do-er NOT a Complain-er

Does complaining really get you ahead? Working can be stressful, but don’t waste time complaining about the boss. Make the most of your time being focused on your future career and making the best of what you have in the present. That way, your free time isn’t spent on complaining, but on accomplishing something great for your entrepreneurial endeavors, your new career, and your financial goals. Be Happy, Be Positive, Be Productive. How are you implementing these positive attitudes in your career? Tell us what you think about choosing productivity and pursuit of future goals over the fleeting, momentary satisfactions of present-tense pity parties.

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Finding freedom as an entrepreneur

Have you ever been told you were wrong? I was — just the other day. I did a re-post of Jonathan Fields blog post called The 4 Delusions of Entrepreneurs.

A friend of mine who is an Internet marketeer very gently blasted me – privately. I was going to add his comments to the post as “comments”  — but I have to think he is so dead on that I just want to make them a new post.

Here are the comments from Patrick Cash.

“Wow. Glad I didn’t read that before I quit my j.o.b. In a way, he makes it sound so gloom and doom.
This little ‘work where I want, when I want’ life o’mine really ain’t that bad at all :)

I have to disagree with some of what he says. A brick and mortar business can be location independent if you work on your business and not in your business. – read Michael Gerber’s ‘The E-myth‘.

The CEO of Applegate Farms (they are an organic meat producer) only works in the office 1 day a week and has done it this way since the he started the business.

Freedom is the main thing everyone wants. They think they want money, etc but what you really want is the freedom the money gives you.”

I myself argued a bit with Jonathan on his post – pointing out that even working people with a JOB might experience some of the benefits of freedom – with some work. But hearing Patrick’s take on it really hit home – we might be delusional – but fact is that you can reach it.

The point is that I think Jonathan was making was that it is not often what we expect it to be – sometimes it is better.

Just in case you doubt – ask Patrick!

This all reminds me of the quote from the ancient Greek historian Thucydides

“The secret of happiness is freedom.

The secret of freedom is courage.”

So take courage and fight for freedom! Thanks Patrick for keeping me motivated!!!

How about the rest of you? What drives you to want to go it alone?

Freedom?

Money?

Just to know you can?

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The 4 Delusions of Entrepreneurs

This is a re-post of Jonathan Fields Blogpost. Here Jonathan helps to dispel many of the common misconceptions about going it alone. I personally and STILL a proponent of OWNING something as an entrepreneur – but so many of the reasons we have to go it alone are false hopes!

The 4 Delusions of Entrepreneurs
By Jonathan Fields

Ask an aspiring entrepreneur why they’d kill to make the jump and, without fail, four of the top 5 reasons will be:

  • Freedom
  • Control
  • Money
  • Passion

They dream of working their own hours, not having to report to “the Man,” skipping though fields of money, loving what they do every moment of every day and changing the world. All great aspirations.

Question is -

How much is real, and how much is outright fantasy?

Let’s take a deeper look at the 4 big entrepreneurial motivations, bust a few myths and open a few eyes:

1. Freedom.

First let’s break it down. What do people mean when they say freedom? Sometimes they mean geographic freedom or what people have come to know as the ability to be location independent. Sometimes they mean financial freedom. Sometimes it’s the freedom to do what they love. And, other times it’s freedom from a fixed schedule. Or, not having to follow the orders of a boss. Either way, there’s a lot of myth here.

Geographic freedom – If the type of business you are drawn to creating is largely online and the places you’d like to travel to and work from are wi-fi’d up, there’s a good chance the dream of location independence can be real. This was a big theme in Tim Ferriss’ 4 Hour Workweek. And, Lea Woodward, takes it a step deeper in her blog, LocationIndependentParents.com. But, you’ve gotta be realistic. Many other types of businesses that seem to have potential for location independence, upon deeper analysis, don’t. Or, at the very least, the logistical challenges and stress created by them would make it not worth the effort.

Also, if you’re drawn to brick and mortar, especially face-to-face service driven businesses (which, oddly enough, I am), location independence becomes a bit of a myth. You still need to find and locate yourself where the people who are desperate for your solutions work, play and live. Put another way, if you want to surf the big waves, you’ve to go to the ocean. It won’t come to you.

Financial freedom – Okay, how do I answer this. Many entrepreneurs do experience a certain degree of financial freedom, translated roughly as the ability to generate enough consistent money to live well in the world and step away here and there, knowing things won’t crash and burn. But, truth is, with rare exception, the key to the financial freedom doors only open after you’ve stepped up and said, “here’s a massive chunk of my own blood, sweat, tears and money. I am willing to put it at risk and potentially even watch it evaporate into thin air.” And, if you’re entrepreneurial jones leads you down the brick and mortar path, you may also find yourself on the hook for a lot of high fixed monthly costs.

That’s all cool, I’ve lived that burden for a lot of years, especially before much of my efforts moved online. The benefits for me far outweighed the risks and because I’m fairly risk tolerance and passion-driven, I’ve found ways to work through the ebb and flow of entrepreneurial anxiety that always comes.

But, it’s important to go into it knowing that you may well have to put significant money at risk for an extended period of time before you get that warm and fuzzy feeling we like to call financial freedom. This is one of the reasons, most of the people I interviewed for Career Renegade ended up “legging into” their entrepreneurial journey, building on the side, while they still had consistent cash supporting the family until the entrepreneurial venture had proven itself and was generating money.

And, like above, if there’s a way to migrate much of your entrepreneurial jones online, it’s very often way easier and faster to launch, requires you to place far less money at risk and can often move into the black much more quickly.

Freedom to do what you love, work when you want to and not be under the thumb of “The Man” – Much of this is true. You do have a lot more freedom to build your daily activities and long-term vision around passion-driven activities or causes. And, you do have much more control over what you do or don’t do and when you work or take time off.

BUT, reality check, even when you’re an entrepreneur…you still always work for someone else. Your customer or client. Doing what you love doesn’t mean people will line up to pay for your efforts. You’ve got to find the sweet spot between what makes you come alive and what people are willing to pay for. Because, in the end, you always serve someone. And, if you’re not making them happy, you’re not paying your bills.

Same goes for setting your schedule. You may choose and industry where regular hours don’t matter. But, if you want to own a restaurant or retail shop, guess what, those are 7 day a week, 16 hour a day businesses. You don’t get to choose. Here, again, if you’re interests can be satisfied through online entrepreneurship, you still have to find the passion/hunger sweet spot, but you may well have substantially more freedom in where and when you work and the world becomes your market.

2. Control.

This really ties in closely with the discussion about freedom. Because freedom implies a greater opportunity to CONTROL your own destiny, how and where you work, who decides what and when. But, as we’ve seen above, just because you’ve put yourself in the perceived role of top dog in your business doesn’t mean you really are. Whether you work for yourself or someone else, you need to get paid. That means, you need to create a service or product other people value and are willing to exchange money for. And, you need to offer it in a way that is appealing enough to facilitate the sale.

So, do entrepreneurs have more control than lower-level employees, especially in larger organizations?

Very likely yes. Because every layer that lies between you and the ultimate customer is a layer that removes an element of control. But, don’t delude yourself into thinking that when you’re at the top of your business you will have ultimate control. There will always be one person above you. And, that’s you customer.

3. Money.

We’ve talked about money above as well. You may well have the opportunity to generate substantially more cash as an entrepreneur, but not always. And, remember, a fundamental truth in business is that great rewards almost always come as the result of great risk.

We’ve seen that equation degrading more and more and people better understand how to leverage the online world, especially in the context of commodotizing and selling knowledge. But the more traditional your idea, the more likely it is you’ll need to place real money at risk in order to have the opportunity for to get real money back.

And, there will, without fail, be challenges along the way. Times you just want to walk away. Times you wished for…gulp…a consistent paycheck, so you could sleep at night. Even when, most of the time, you love what you do and you still believe in your greater purpose.

Realize, too, it’s important to lead NOT with the quest for money, but with passion. Because the quest for money won’t get you through the dips, while the quest for mad passion may. Then, work like crazy and, if needed, innovative to create unconventional ways to generate an income around the activities, culture and communities that make you come alive.

And, one last thing, there’s a lot of talk these days about setting up supposed “passive streams of income.” Before you dive headlong into that pursuit, you might want to explore the truth about passive income, especially as it relates to making passive income from blogging.

And, if you’re looking for solid advice on about the closest you can come to this vision online, you may want to explore the intersection between your passion and non-smarmy ways to make money online and have a real life by checking out people like Glen Allsopp, Chris Guiilebeau, Brian Clark and Lynn Terry. They have great information and resources in this area.

4. Cause/Passion.

No doubt, for me, one of the greatest elements of entrepreneurship is the ability to pursue a passion or cause. Something capable of serving others, having a profound impact and making me come alive. That very quest, in fact, is often the purest fuel behind the most successful entrepreneurs. In fact a recent study of pentamillionaires found that most were driven not by money, but by passion or the quest to solve a pervasive problem.

BUT, it’s also critically important to explore how you are going to leverage that quest, that passion, that cause into a business and venture that is capable of generating enough cash to live well in the world and, if necessary, support a family. Sometimes there’s a readily available answer. Often times there’s not, and that’s where you have to get hyper-creative. In fact, I wrote Career Renegade largely to answer the question, “how do I take a normally moneyless passion and wrap a living around it?”

Realize, too, that, in every professional venture, be it writing, creating a product, building a company or offering a service, there will be times you get to do what you love…and times you are forced to do what you hate. I’ve taught 100 people in a sweaty, vibing, blissed out yoga class, only to find myself cleaning toilets 20 minutes later, because in the early days of a business, I did every job. It makes it better that you’re on a mission…but cleaning toilets is still cleaning toilets.

What about the giant benefit nobody talks about?

In light of all the challenges laid out above, I am still a huge proponent of entrepreneurship. In part, because of everything I just shared, but there’s one giant benefit most people never focus on. As an entrepreneur, I get to create the culture and pick the people I surround myself with

We don’t often realize how mission critical the people we surround ourselves with are in our ability to not only thrive in business, but feel fulfilled or just love every day. In the brick and mortar businesses I’ve built, I’ve taken years to build families of people, from managers to services providers to receptionists and volunteers, who are the very people who make ME come alive. And, I’ve taken it a step further and become insanely selective with what vendors I work with and who I take on as customers, students and clients.

Because, the nature of the people you surround yourself with everyday will have a profound impact on the way you experience your life. That’s why, when I’ve realized I’ve made bad decisions, I’ve not only fired employees, I’ve also fired vendors and clients.

You cannot pay me enough to take someone else’s money when I know the interaction with that person will end up sucking the life out of me.

People matter more than you realize. So, if you choose to follow the entrepreneurial path, make them a priority.

Realize, too, entrepreneurship CAN happen WITHIN the walls of a company or organization you don’t own. I’m a big believer in larger companies fostering empowered, innovation-driven entrepreneurial pockets and projects. It’s rare, but if you have an entrepreneurial jones but would really rather work within the support structure and tap the resources of a larger entity, work to find one that supports and empowers original thought, innovation, service and freedom.

Entrepreneurship can be an immensely rewarding life, especially when things go right.

But, make no mistake, rewarding does not mean easy, certain or stress-free.

So, if you choose to enter the waters, do so with your eyes open.

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Do I Need a Business License?

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Dealing With FEAR Part 2

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Get more done in less time

Do you struggle with getting it all done? Are there things you just do not like doing, but have to do? Have you ever tried delegating those tasks?

Delegating work and chores can really add some horsepower to our productivity – for those who are entrepreneurs as well as those who are working for the man.

I write this now because I struggle with delegation both in my personal life and in my companies. I want to do it all myself because I want to get it done my way and the cheap way.

However, I recognize that often I am NOT the best person for the job. Then other times when I do delegate I wish I had not. So what is the secret? Here is what I have determined that seems to work pretty well.

1. Define the desired outcomes

Knowing what I expect is the biggest mistake I make. Before you start to delegate, clearly define what you expect the outcome to look like. In fact, this should be done with ALL projects. In his book Getting Things Done David Allen explains that many companies fail to decide on the desired outcome of the projects they undertake. This key element can really help you avoid many mistakes.

2. Decide who should do it

This is critical! Who you give the work to means how much or little frustration you will have during the project. Resist the temptation to delegate or contract work to a friend, relative, or other person who you know unless they happen to be an expert. Helping someone go into business or just make a few bucks is not a good way to get your work done. You will likely spend more money and have greater frustration. Instead – find the right person! I like to use Elance for a lot of electronic work I need done – I can check people out to see what they have done and what others say about their work. But always ask for references.

3. Communicate the desired outcomes

If you are like me, this is an area of many struggles. I assume people can read my mind – and they cannot. (I really am thankful they can’t!!!) We need to clearly state what we want the resulting work to look like. Best way I have found to do this is to attempt to be clear and then have them tell me what they heard. I do this until we both are saying the same thing. I do this even if it is written instructions. After all, many a lawyer makes his living trying to determine the intent of written documents.

4. Follow-up

Yes – you must follow-up. If it is a long project you need to set some dates (and put on your calendar) to check up on how things are going on the project.

And what if you have no one to delegate to? Try is anyway! Even in your day job – can you delegate some of your work out? For a wonderful exploration of this concept see Tim Ferris’s book The 4-Hour Workweek.

That is my view of what works – a pretty simple outlook. Do you have anything I am missing – I am always looking to learn more.

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Dealing With FEAR

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