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2009-12-31T12:53:00.001-08:00

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Five signs that you are a small business owner and NOT an entrepreneur

2009-12-12T10:19:00.000-08:00

I sent out a Facebook update a few weeks ago and it got a surprisingly large and positive response. I also Tweeted it this morning to see what came back. It seemed to me that it might be worth writing about. The update was this:

I believe that if you experience just a few moments where you know that you are doing what you are supposed to be doing in life - you've won.

At first, I didn’t think this fluffy, gushy, and mushy statement was even close to being profound. But one of my brilliant thought partners who has a great blog on finance pushed me to explore it a bit further.

It turns out that the essence of entrepreneurship is what that statement is all about. In fact, it is the starting point of what makes the difference between a small business owner and an entrepreneur. Have you ever considered whether you are a small business owner or an entrepreneur? A lot of people haven't.

In my experience, there are five key signs to telling the difference between a small business owner and a true entrepreneur. And I’ll tell ya, investors and customers can spot the difference just as easily. Here are the five signs that you are a small business owner and NOT an entrepreneur:

1.   You don’t get excited about your customers.

Customers are an entrepreneur’s lifeblood. They represent everything from cash, to credibility, to just plain proving the entrepreneur is good at what they do. True entrepreneurs know that when a customer comes into their life, they’ve got one shot and it better be perfect. Oh, and when it is perfect, it feels REALLY good.

2.   You don’t like talking about your company.

We used to have a rule at the entrepreneurship center I ran. The rule was when an entrepreneur called; we did not ask them about their company, we found out what they needed first. It simply took up too much time to learn about every entrepreneur’s story. Sure, once we figured out what they needed, we made the appointment and they had the chance to tell their story – but not until it was the scheduled time to do so. Entrepreneurs are in love with their company and want everyone else to be in love with it too. A simple request like, “So tell me about your company,” led to 20 minutes of listening on the phone – MINIMUM.

3.   You get defensive when a customer complains.

The best customer is one who gives you feedback about their experience. Any entrepreneur should be hungry for that feedback. If a customer tells an entrepreneur that their website is hard to navigate, they will be sure to ask lots of questions to understand how to make it better. They won’t tell the customer they are stupid or worse yet, wrong. Entrepreneurs are always looking for ways to improve.

4.   You don’t see the bigger picture.

Entrepreneurs are all about growth. Here’s an example. If you are running a dry cleaning shop and have no interest in dreaming about how your shop can change the way the dry cleaning industry, you are just a small business owner. There is nothing wrong with that. Its just a fact. An entrepreneur would question the practices and business models of dry cleaning and constantly think about how to make dry cleaning more effective, the process of dry cleaning more efficient, the impact of dry cleaning greener, or even just less expensive. Entrepreneurs want to change the way things are typically done and they aren’t satisfied until they do.

5.   You don’t find meaning in what you do.

This ties it all back to the quote I started this blog with. Entrepreneurs are those wonderful people in the world that believe they are in the world to make something better for someone else. They also strongly believe that what they are doing is worth enough for someone to pay for. Entrepreneurs create a meaningful value exchange in the world. They are also smart enough to build a sustainable business around that value exchange. And they never stop trying to build it.

So, after reading this, if you find that you are indeed an entrepreneur, I take my hat off to you and applaud your efforts. And the next time someone calls you a small business owner, feel free to correct them.

Does your company name suck? Take the ‘Ten Word Test’ to find out.

2009-11-26T07:13:00.000-08:00

The name for your company is about as important as the company itself. It is normally the first encounter anyone has with your company. As the old saying goes, you only get one chance to make a first impression. But your company name may be the only impression you get to make if your company’s name sucks. And I have to say, there are a lot of names out there that do.

I’ve noticed a trend among novice start-up acts; they love to have fancy sounding names that communicate absolutely nothing. They put their name alongside a word like “Group” or “& Associates” or “Consulting” and suddenly they are a high-powered CEO of a company. Their business card gives them permission to believe that their you know what doesn’t stink. Well it does stink!

So, I thought it would be fun to put on the fancy CEO suit for a moment and imagine myself as a new entrepreneur choosing a fancy sounding name for my start up. Take a look at some examples I’ve created for myself: Colleen Post, founder & CEO.

Associated Enterprises, LLC
Strategic Solutions Group, LLC
Post Strategic Alliance, Inc.
Post Consulting & Planning, Inc.
Innovative Business & Solutions, Inc.

Do any of these tell you anything about what I might do? No.
Do any of these tell you what I might specialize in? Nope.
Do they make you a bit more inclined to learn more? No way.
Do they tell you why you might need my company? Absolutely not.

In fact, the only thing that these names tell me about you and your company are that you are either one of two things: inexperienced or egotistical.

So, let’s do a test of YOUR company name. Take a look at this list of ten words and then take a look at your company name and see how many of these words you find:

Business
Solutions
Consulting
Enterprises
Strategies/Strategic
Planning
Group
Innovative
Associated
Alliance

If you have one of these words in your company name, you may want to think about replacing it with something that communicates more about what you do for your customers. You could also just remove the word entirely and save some printing ink.

If you have two or three of these words in your company name – you should probably scrap the whole name and start again.

And if you have more than three of these words in your company name – e-mail it to me, I’d love a good laugh.

I want to start a company. Should I get an MBA?

2009-11-05T10:30:00.000-08:00

If I had a nickel for every time I was asked this question, I would have about $5.

“I want to start a company. Should I go back to school and get an MBA?”

My answer is always this:

An MBA could do several things for you, such as:

Introduce you to a new group of business networks who could help you get a new job or a new sale
Increase your salary at the current company you work for or increase your asking salary when you look for another job
Allow you to use the career services of the school to help you find a new job

Do you notice the theme here? See – the amazing simple truth is this:

GETTING AN MBA CAN HELP YOU GET A BETTER JOB.

Getting an MBA will not help you start a company; in fact, it will probably deter you further from starting your company. Here’s why:

An MBA will cost a minimum of $15,000 to attain – that takes away from possible start-funds you may have available
An MBA will take up a minimum of 10 hours of your time each week – that takes away from time you could spend starting your business
When you get the MBA and get a promotion – that’s more incentive for you to stay in your job and not start that business

If you find yourself in a transitionary phase of life and are thinking about starting a company the last thing you want to do is go back to school. Of course, there are exceptions, for instance if you want to start a chiropractic center and need to get a license to practice, you will need to go to school. But a standard college degree will not help you, and especially not one from a business school. Business schools are great at breeding employees, but the suck at breeding entrepreneurs.

Here’s a typical example:
I have a good friend who wants to start a bakery. He has a great line of recipes from his grandmother and really wants to start a hip little bakery in a cute, urban neighborhood. He currently works in the entertainment industry. He asked me if he should go back to school because he has no business background. I told him, instead of wasting $25K on a degree, take that $25K and support yourself so you can work at a bakery for six months.

Yeah, he thought I was nuts too.

But here is the hard truth: If you want to start a company in an industry – you need experience in that industry. That experience will help you: 

Gain credibility from everyone from your investors to your parents
Help you uncover the problems in the industry that your company can solve
Develop the networks you need in the industry to build a company

Don’t want to give six months of your life up pounding dough? Then I doubt you’ll want to spend the rest of your life doing it.

However, there is another less drastic option available. A great company concept was featured in Entrepreneur Magazine called Vocation Vacations. This company is focusing on just this issue. I am a big fan of this company. It’s a great way to test out an entrepreneurial venture before you decide to bet your house on it.

In my friend’s case, he can go be a baker for a three days and work along side the owner and learn what a day in the life of running a bakery is actually like. Anyone who tries this strategy out is likely to find that there is a big difference between what you think a day of an entrepreneur is like and what a day in the life of an entrepreneur is REALLY like. Just ask one.

The cool part is – you will have found out what you like and what you DON’T like, without ruining your credit.

Biotech Presentation Paralysis - Ok, but what do you DO?

2009-10-14T10:24:00.000-07:00

This week I attended a local venture capital association meeting where I watched a few companies pitch their investment opportunities. One of the presentations was a classic case of what I call a: “Ok, but what do you DO? Presentation.”

As I reflect on the over 500 business plan presentations I’ve seen in my day, it is quite amusing to me that I have seen enough of these “Ok, but what do you DO? Presentations” to actually give them a name. Well, amusing or tragic really – depending on how you look at it.

This particular presentation I saw this week was from a biotech firm.

Slide One: The estimated time to trials and to market.
(Ok, but what do you do?)
Slide Two: The technology phases of development.
(Ok, but what do you do?)
Slide Three: The advisory board bios.
(Hmm…ok, well I guess now I know what THEY do.)
Slide Four: The 50,000-foot view of the economic costs for the disease: 42 Billion.
(Now 10 minutes into the presentation, checking my phone seems much more interesting – I know what THAT does.)
Slide Five: Estimated investment stages
(But what am I investing IN? And what are all those acronyms again? I feel like I’m looking at an eye chart.)
Slide Six: Some microscopic images of animal testing results.
(Oooh, pretty swirly pictures… sorry, what are we talking about?)

I won’t make you endure the confusion anymore. The rest of the presentation had 5 more slides covered in 10 more minutes and not once did we ever get a clear picture of what they were doing. The presentation was filled with acronyms, technical terminology, general statistics, financial estimates, testing results, and fancy names starting with “Dr.”

At the end the room was dead silent. Seriously – even the crickets were too confused to chirp.

Here's why: Since its biotech, no one wants to ask a question because they are terrified of sounding stupid. It’s as though these biotech people belong to this exclusive club and no one is supposed to understand it except for doctors and board members.

Now, I am no biotech expert (evidence of this is seen on my previous post on molecules) – but I can follow an explanation pretty well when it comes to technology. I can also testify that I have seen good biotech presentations that were quite complicated, but enabled everyone in the room to understand it.

So, I nudged my partner to ask the question: “So, what do you DO?” He asked it in a much more expanded way – but you could see the audience sigh of relief when they realized they weren’t the only ones who didn’t get it. The presenter’s explanation of what they did was actually more compelling than the entire presentation. My partner mentioned to the presenter that it would have been helpful to know that at the beginning of the presentation and the presenter retorted: “Well, we just want to say enough to get folks asking questions.”

Dude – the question “Ok, but what do you DO?” is the LAST question you want to hear after a 20-minute presentation. Trust me.

I would argue that ESPECIALLY in biotech pitches, it is important to simplify the language as much as possible so that a 5-year old could understand it. And you have to say it FIRST. Here’s an example:

“Every year, 1 in 30 new parents have to cope with the loss of their newborn baby due to this disease. We have created a treatment that shows promise for curing this disease. The treatment is simple and painless to deliver; in fact, the baby will not even feel it. Let me show you how we do this.”

Oh, THAT’S what you do – now I’m interested. Show me those slides.

Four Words That Suck: Mostly, Very, Really, Only

2009-09-16T05:03:00.000-07:00

One of the key success factors of entrepreneurship is the ability to communicate. An entrepreneur needs to be able to communicate their business concept, their offering, and their value in quick and succinct way. Perfecting this message is one of the best things an entrepreneur can do for their business.

A common trap that I see entrepreneurs fall into is what I call the “embellishment trap.” It is a dangerous and tempting trap too. When entrepreneurs sit down to write out their message, either in an advertisement, a business plan, a letter, or even an email, they are excited. They throw in all of these extra words to show their excitement. And some of them, just come across as stupid.

Why do they come across as stupid? Four simple words:

Mostly
Very
Really
Only

I have to admit that there are a lot of other words an entrepreneur can say to come across as stupid, check out my post on “10 Phrases to Delete from Business Plan NOW “ but for our purposes here, I really want to only focus mostly on these very annoying four words. (You caught that I hope.)

The primary reason I don’t like these four words in entrepreneurial situations is they don’t MEAN anything. They do not indicate any kind of hard data or actual fact and often times, you will write yourself into a trap.

Example: Our mulch consists of mostly recycled compost.

Immediately, my mind asks – mostly? What else is in there? What is mostly? 51%? 99%? There is an immediate reason not to trust the claim. Tell me what mostly means. Otherwise, you are causing doubt in my mind.

Example: Unlike our competitors, we are very committed to our customer’s satisfaction.

Hmmm, so by this you mean…what exactly? It tells me nothing. Are your competitors only partially committed to their customers? Not likely. What makes you so VERY committed – tell me the actual difference in procedures.

Example: We are really confident in our sales force.

Classic favorite. My response: Oh? You are really confident? As opposed to what? Just kinda confident? Give me a break. If you are REALLY confident should I just immediately believe you? Not gonna happen. Tell me about the REAL sales force and why I should be confident in them, I don’t really care how really confident you think you are.

Example: We only have to reach a 10% return on our marketing investment to be profitable.

You ONLY have to reach a 10% return? Does that mean you think that is easy? Often times, it is never as easy as you think it is. You come across sounding naïve. Or does that mean you are lazy? After you get the 10% return, are you going to stop working then? Either way the reader takes it – you sound stupid.

Entrepreneurs are excited, I get it. But using words like mostly, very, really, and only are the equivalent of talking to a valley girl from 1983 who can't stop saying 'like' or 'totally.'

This is an extreme example, but I've seen this type of language in business plans:

Our product, MOSTLY used by medical professions, is a product that doctors REALLY use. We have received a VERY positive response from those that have tested it. MOST of our testers said they would REALLY use it. In order to reach our sales projections, we ONLY need to secure agreements with 15% of the doctors in our area.

Would you buy it after that? I wouldn't.

This week take a look at some of your language that describes your company. Do a little “Find” search and see where these words pop up. Don’t worry, no one has to know, it will be your little secret strategy. You may even find yourself laughing at your use of them. You may also uncover some holes in your language that you hadn’t noticed before.

Mostly though, really try to only use these words very rarely. They suck. You will too if you use them.

Decision Time: How to Stop a Runaway Conversation

2009-09-08T14:53:00.000-07:00

This is a follow-up post to The Fun Box - Entrepreneurship & Decision Making. I received a few e-mails from readers asking:

So what happens when your group won’t get out of the fun box?
What happens when you are in the middle of a runaway conversation?

Well, these runaway conversations are my world a lot of the time working with entrepreneurs. Actually, the most frequent situation I encounter runaway conversations are among community-related boards of directors. Those are my favorite! Give everybody a fancy title with very little actual responsibility and VOILA! You have yourself a really big fun box.

Well, a few months ago after a long and tense meeting, a colleague of mine came up to me after the meeting. He praised my ability to keep the conversation moving in the right direction. I have to admit that at the time, I honestly didn’t know I even HAD a technique. So he explained it to me. Shortly thereafter, I was able to pull some common threads out of it. So, I started testing it more and more and I found that it actually did get people thinking about how to get out of the fun box.

I’ve outlined the steps below and used my example of the target market and website example in my previous post to build off of.

Step One:
Stop the conversation with a smile, by using a cliffhanger. Feel free to make this cliffhanger as dramatic as you like – just be sure that it isn’t personally aimed at anyone in the room. (I tried that once and it wasn't pretty!) Then flash a genuine and friendly smile – this is where confusion and curiosity begins to bubble up JUST enough to get everyone’s attention.
Excuse me; I hate to be the one to say this but… what would happen if we completely forget whether people are married or single? (Smile!)

Step Two:
Bring back the crystal clear and main “high concept” of the discussion. This is where you remind everyone what you as a group are here to do. It is also about what you understand the grand purpose to be.

Perhaps I am way off base here, but my understanding was that we were here to figure out what types of people will likely get the most benefit from a website that offers discounted tickets.

Step Three:
Remind the individuals in the conversation that the objective is to create value and it needs a plan. Then suggest basic but high level questions for someone to answer. Get someone else to make the move to get out of the fun box – then the herd tends to follow.

We have six talented minds in this room right now. We have spent 35 minutes of everyone’s time on this. We are all marketers – how do we figure out the ideal user of the site? Then, can we get the attention of that ideal user? We need to identify these two answers and drill down with actual research on the answers.

At this point, the conversation gets back on the accountability track. The reason we have so many meetings and waste so much time in group conversations is everyone is either: A. Too afraid to hurt someone’s feelings or B. Too lazy to think. This tactic can give them the catalyst and permission to speak and think freely.

Side Note:
My partner, Dr. Jeff Stamp, is a creativity professor and product inventor. In his 20 years of experience creating companies and products, he has developed a number of well-tested, well-developed strategies and tactics for working inside what I call the “fun box.” After reading my post on the “fun box,” he was kind enough to remind me that when it comes to the creative process, it actually is about the box. That is where the magic happens in creativity.

I tried to argue that I’m a fan of decision making and action plans and task lists and strategy!

Well, then, Dr. Stamp was also kind enough to remind me after that he does eventually get out of the “fun box.” He also has a number of well-tested, well-developed strategies and tactics for getting out of the box. How else do all of his product innovations make it to the shelf?

Speaking of, you might even recognize one of his more famous product innovations that are on the shelf today:

Fine, play in your box Jeff.

.

The Fun Box - Entrepreneurship & Decision Making

2009-08-31T13:44:00.000-07:00

This weekend I was a facilitator for a local Cincinnati non-profit InOneWeekend. It’s a concept improving upon the existing: StartUpWeekend. I was honored to be brought in on the development team last year when it launched its first program.

The concept of InOneWeekend is: 100 people get together and launch a company in one weekend. We start on Friday night and go until Sunday late afternoon. By the time we get to Sunday afternoon, we give birth to a company – or at least a fleshed out concept and feasibility plan.

One of the dangers of this type of event is what I like to call the “runaway conversation” (AKA: shiny ball syndrome). Basically, it’s an inability to focus on the end goal because other distractions are allowed to detour the conversation. I am sure each of you have had this happen in more than one conversation.

Well, as you can probably guess, this happened a LOT this past weekend. It was painful to watch at times. As a facilitator, I was not supposed to intrude too deeply in the conversations. So, without giving an actual example, here’s taste of how the dialogue typically went. To give you a bit of background, this group is trying to decide on a target market for a website. The website connects users with discounted event tickets in the local area. (These aren't real names.)

Brian: We should focus our sales toward single people in the high-income brackets locally.
Jill: I don’t know, my husband and I are always looking for things to do. I mean I would use the website, and I’m married.
Maggie: Yeah, exactly. I mean the single people here all go the same places anyway – they already know where to go.
Brian: Yeah, but do they really know where to go or are they just sticking with what they know? They might be afraid to go to new places because they might not know anyone there.
Chris: Well, we could add a dating and matchmaking piece to the event listing.
Tim: Yeah, we could have people enter information into a profile and then you could see who was going and if you wanted to meet up.
Jill: Well, we have to have a married section then – we could do a couples section for couples looking for other couples.
Maggie: Yeah, you know I’m always looking for cool couples to hang out with.
Jill: Maybe instead of discounted tickets, we offer tickets designed for people to meet up with each other. We would be a dating/event website! Then we could change the name of the website to…

Within two minutes of the conversation – the sales team has reinvented the website. This conversation will go around and around imagining new features and fancy ideas for the website. Typically, they last about 30 minutes. The group gets WAY off track, then realizes they only have 15 minutes left to decide their target market. Frustration kicks in, emotions start to take over, arguments ensue, and the group might make a half-ass decision. Sound familiar? This is a classic case of a “runaway conversation.”

A runaway conversation is like a pinball in a pinball machine – every idea sparks the next. Decisions are NEVER made when a conversation gets in this mode. To give my visual thinkers an idea here, I’d like to refer to the OODA (for Observe, Orient, Decide and Act) loop designed by military strategist and USAF Colonel John Boyd. Basically the framework walks us through the decision making process.

Image Credit: Wikimedia Commons

You see that pretty blue box with all the pretty lines and circles? (BTW :the words there are Cultural Traditions, Genetic Heritage, Analysis & Synthesis, New Information, and Previous Experiences). That pretty blue box is the FUN box. It is fun and EASY to play in the box. This is the box where we get to use our individuality to pose all kinds of what-if scenarios. We get to talk about our likes, our dislikes, our experiences, our culture, and play around with all of them. Everybody get’s to be a critic. We get to dream, imagine, and create all kinds of wonderful scenarios.

But very few people actually ever get out of that box. Why? Well, it’s EASIER to stay in the fun box. It is much easier to talk about what a picture should look like, than it is to actually draw it. It takes COURAGE to leave the fun box.

Notice though, the one thing is that gets you out of the box. A DECISION. And that decision inevitably leads you to an action. So why is that scary? Why does that take courage? The simple answer is that we are all afraid of being wrong. If we make a decision and act upon it, we might be wrong. No one likes being wrong.

See, the best thing about the pretty blue box isn’t that its fun – it’s that YOU ARE NEVER WRONG IN THE BOX.

Well, personally, I get freakin’ bored in the box. I like to make decisions. I like to learn. So, in many ways – while I hate to be wrong – I need to be wrong sometimes in order to be better.

We’ve all met some guy who says – “That was my idea. It got stolen!” Well that guy probably never left the pretty blue box. He never made the decision to take any action on the idea. Ideas are worthless –the decision to implement them makes them valuable.

This past weekend that I spent with 100 people trying to create a company reminded me that difference between a mediocre entrepreneur and a great entrepreneur is the ability to make a friggin’ decision!

So, don’t just think outside the box – actually GET outside of the box.

Why You Might Want to Know What a Molecule Is

2009-08-25T09:42:00.000-07:00

A recent USA Today article titled “Is America scientifically illiterate?” sparked my thinking and reminded me of something I talk about in my lectures quite a bit. It is why most of us hate science – we had bad teachers. But there is hope for us yet.

I can’t believe I am going to put this out there, but I will admit it officially, I got one ‘D’ in all my years of school – it was in high school Earth Science. I hated that class with a passion – I had to memorize all the parts of a plant, all the types of rocks, all the steps in photosynthesis… it just sucked. It was boring and I saw no point in it whatsoever. Then when I asked the teacher: "Why do we have to memorize all this stuff?" I got the typical answer: "Because it will be on the test on Monday." Oh. Great. Thanks.

The article in USA Today quoted political scientist Jon Miller of Michigan State University stating that "No one should graduate from high school without knowing what a molecule is." Five years ago I would have argued why the heck not? What does a molecule have to do with my life?

But, what if how a molecule works could give you some insight on how your business works? Hmmm… interested?

Ok, so first molecules are the small little pieces that make up all living and non-living things. Molecules are made up of atoms. Each molecule is unique and it’s uniqueness is what allows it to interact with other molecules. Example, a single molecule of water is made from two atoms of hydrogen and one atom of oxygen. (Are the circles and pictures beginning to surface from the memory yet?)

Going a bit further – stay with me here – an atom is made up of three kinds of particles: protons, neutrons, and electrons. The protons and the neutrons make up the center of the atom called the nucleus and the electrons fly around above the nucleus in a small cloud. (Ah yes, the memorization of numbers of protons and electrons coming back to you? I hated that class too.)

Now that we’ve had that little flashback – I want to bring up one more concept – thinking scientifically. I’ve learned that science is actually not just a bunch of facts – practicing science is a state of mind and a way of thinking. Scientists solve problems piece by piece, isolating and changing one thing (ok, its called a variable) and keeping all the things (variables) the same to see if that one thing is the cause of the problem (or phenomenon). And then, if you are lucky enough to uncover something, it will bring with it more question than you started with!

Let’s now start to bring this home. What if this week, you started to look SCIENTIFCALLY at your business? If your business is a molecule, what are the atoms (departments or functions) of your molecule? And then, what are the protons, electrons, and neutrons (resources) of your atoms? Breakdown your business into small edible parts – dissect it! Get some paper and a pencil and draw it out! Share it with your partners or employees as a fun new way of thinking about your business not only scientifically, but strategically.

With this molecular model, you can then begin to ask questions like what other molecules are you working with? What do you have to give up or gain by working with them? (Remember for two molecules to join, they gotta share those electrons!) Should you form a compound or a new molecule? Are you formed as the molecule you want to be? Should you be a strongly bonded molecule or one that could easily go into parts? Are your neutrons – those guys that just hang out in the middle of the company – really neutrons? Should they behave more like electrons – always critiquing the actions of the company carefully (remember they are negatively charged!) and protecting it from outside intruders? Do you need more electrons?

Over the weekend visit a science museum and try to make even more comparisons to your business or a challenge you are facing with some of the basic premises of science. If there is one way to break through a mental block, it’s taking a completely new way of looking at something and applying it. More often than not, it comes in the form of a consultant in a suit and a ridiculous fee – but you can use this simple orientation shift on your own!

I hated science. But now, I actually feel quite cheated out of science. I should have learned about formulating problems, creating experiments, using the scientific method, electromagnetism, mechanics, calibration and even physics.

Just like the way entrepreneurship and creativity is not just about ideas, science is not just about facts. It is about critical thinking, deep thinking, discovery, and asking questions.

If you were in a meeting and somebody asked you if you knew why your hand doesn’t go through the table – would you know? (It’s because the density of the molecules in the table and the sorts of bonds they form don’t want to separate – but water is a casual relationship-type of molecule that will easily separate and let you in to party anytime.) How cool would it be to ask someone else that question now that you know the answer? Ha!

Image credit: History for Kids
Suggested reading: The Canon - A Whirligig Tour of the Beautiful Basics of Science by Natalie Angier

Entrepreneurship: A Bad Deal

2009-08-17T21:22:00.000-07:00

Many of you know, I have been in South Africa since early July working with students and entrepreneurs in many of Cape Town’s townships. I just arrived back in the States two weeks ago. While I was away on my month-long excursion, ABC launched a new show called “Shark Tank.” Clearly this is a take off of the BBC version of “Dragon’s Den” – and BBC’s version is a very good show.

I was quite enthusiastic when I sat down to watch an episode of “Shark Tank.” However, after watching three different entrepreneurs pitch to the panel of investors, I was disappointed in their lack of interest in educating the entrepreneurs on what they should do to improve. But the last entrepreneur presentation sent me through the roof.

Admittedly, the entrepreneur’s concept needed work, but it had legs. It was founded by Mark Furigay of Chicago Illinois, a high school English teacher who created Classroom Jams Records. He came in asking for $250,000 for 10% of his company. Yes, this is a ridiculous proposal from a business that had not yet generated sales but let's put that aside for a moment. This entrepreneur had developed an interesting way of turning Shakespeare into “trendy” songs the students could relate to. Apparently, the product had produced tremendous results. Additionally, the entrepreneur himself was passionate, likable, knowledgeable, experienced in the industry, and presented himself well. The investors liked him and his concept.

However, I quickly realized the investors on this show were not there to encourage entrepreneurship. The investors in this show were solely about making money. In this episode, the investors saw an opportunity to take advantage of a green entrepreneur – and frankly, it made me physically ill to watch it. Here are some of the excerpts – not in their entirety:

Investor 1: So you are selling the record label and the rights to all the songs?

Mark: I am not selling the rights to the songs. I’m selling a stake in the record label and publishing house.

Investor 1: Why not the songs?

Mark: The songs are something I would like to keep control of.

Investor 1: You are a nasty man.

RED FLAG NUMBER ONE: If the investor blatantly insults you in this fashion – excuse yourself politely and walk out of the room. Do not go back.

Moving on in the discussions, one of the investors started to take an interest and ask the entrepreneur what his plans were for growing his business. The entrepreneur starts to answer:

Mark: The next three we are planning on, will target three areas: history, science, …

Investor 1:Mark I’d like you to do a favor for me. I’d like you to walk outdoors for a moment and leave us alone.

RED FLAG NUMBER TWO: If, within five minutes of your presentation, the investors ask you to leave the room so they can “talk” – you better believe it is not to benefit you. They are scheming against you. Your guard should be up in full force if you decide to walk back into the room.

This is what was said when the entrepreneur left:

Investor 1: I like this deal. This is why I wanted to call a session. Lets not bid against each other. First of all, there is no way on earth he is walking out of here with the publishing rights in the deal. $250K for 100% of the business and he gets a 5% royalty after we recoup our dough.

Investor 2: I love it, but I’d like to be taller too. I don’t think he’s going to do it.

Investor 1: I’m not giving him any dough unless I have total control and I own all the rights.

Mark re-enters.

Investor 1: Look, I gotta tell you something. You are a very lucky guy today that we met. I’m gonna make you an offer. I’m gonna make you rich I think. But you’re gonna have to really think this through. We form a new company, we own it. We fund it with $250,000. It’s a publishing company for you. Just like a great artist, you’re going to make a royalty. In perpetuity for the rest of your life: 5%.

Mark: Its great to imagine that you would be willing to do that, um, but I’d like to build this company…

Investor 1: Stop right there. Do you want to be rich or not?

Mark: I do want to be rich.

Investor 1: Well, lets get focused on that buddy.

RED FLAG THREE: If you are a true entrepreneur – you are passionate about your business – it is your baby, your lifeblood, your sweat, and your tears. It isn’t just about making money – it’s about creating change and creating value. Investors who aren’t interested in you – have no interest in your business either. If you truly have a desire to create something and not just create wealth for yourself – you should walk away from that investor. Additionally, you should tell all of your friends to do the same. They will eat you for lunch, leave your remains in the parking lot to fry on the hot asphalt, and laugh when another car parks on you. Seriously.

So, we continue:

Mark: I would like to make a counter offer.

Investor 5: We’re all ears.

Mark: I would like to be six players as co-owners of the company.

Investor 1: It’s un-American what you are asking. You don’t want to take any risk. You want us to spend all of our dollars, give you free equity, and get a royalty. Do you see a problem with that?

Mark: I don’t’ see it as free…

Investor 1: And look at how much we are struggling for you to make this work.

Mark: And I appreciate that very much. I don’t see it as free equity.

Investor 2: He’s not gonna do the deal, he’s not stupid.

Investor 1: I didn’t hear that yet.

Investor 2: I mean I went along with the deal because I thought sure if it does the deal, I’m happy to go along with it. But he’s not gonna do the deal.

Investor 5: Mark, you have to start making a decision on this deal, what’s it gonna be?

Mark: That was why I wanted to take notes.

Investor 1: You know the big risk is you are going to walk out the door singing the blues.

Investor 2: You know I’m gonna say the big risk here is I’m gonna say I’m out in less than a minute, we’ve been here for way too long and this is getting way too complicated for me.

Investor 5: Yeah this is getting way too complicated.

Investor 2: And I’m a simple guy. I just want to make money.

RED FLAG FOUR: The investors have all rallied together, created tension among themselves for the sole purpose of pressuring Mark into a bad deal. If you ever notice dissension in the panel while you are presenting – do not make a deal on the spot. Find whatever reason you can to meet with them one-on-one, at another time, ask for a night to sleep on it, etc. Dirty investors play dirty. Don’t let them bring the dirt onto your turf.

I truly hope that the general public does not watch this show and think that this is entrepreneurship, because in my mind this is the farthest thing from entrepreneurship. Entrepreneurial success comes from passion, competence, capacity, resources, networks, and experience. It stems from taking advantage of gaps in the market, it does not come from taking advantage of people. The behavior of these investors is not ideally entrepreneurship - it is opporpreneurship of the most predatory kind.

Unfortunately, this behavior happens quite frequently, ABC has certainly created a true reality show. At least it provides a practical lesson for nascent entrepreneurs - be prepared. Mark needed more coaching and practice on the possible scenarios that he might hear from the investors. He was clearly off balance with the strategy of a royalty business model vs. the deal he walked in with.

Never be afraid to walk away – as soon as you are, you have lost all power in the situation. If the deal does not work with your vision – don’t do it. There are more investors, and there are GOOD investors who want to work WITH you.

I hope that most of you who choose to watch this piece of garbage watch it for all of the red flags to look for when you are dealing with an investor for your business. If any of the investors in your room even remotely remind you of them – put your guard up, and leave it up.

Especially look out for the type that resembles the balding guy who sits in the middle of the panel and bears a striking resemblance to the character in the film “The Princess Bride” named Vizzini (Wallace Shawn) who utters the word “inconceivable” numerous times in the film clearly not understanding what the word “inconceivable” means.

By the way – Mark took the deal. After Mark left the room:

Investor 2: That was a very good deal, a VERY good deal. He definitely should not have taken it, but it was a very good deal.

Best Entrepreneurial Advice: Shut Up and Listen

2009-08-17T12:55:00.000-07:00

So I am in Chicago’s O’Hare International Airport and I am working on grading final reports from my South Africa trip. However, my interests have been turned toward a young couple that sat down next to me. They are very, what many people would term “granola.” You may know the type just from that word.

Typically, these types consider themselves to be very different from the rest of the world. They see themselves as smarter, more aware, more enlightened, and overall, more unique than “everyone else”. They have no interest whatsoever in “normal” society and “normal” beliefs. They are being “forced” to live amongst people who have no value for the things they have value for. And this couple sitting next to me is a prime example.

But as I started to listen to their conversation, they were actually very interested in the people around them. They commented about people walking by, berating the passer-bys for not having their sense of style. They also made chiding comments about what other people ordered and how they ordered their food. They made a negative comment about how the waitress spoke to them – she was a Hispanic woman who did not speak English clearly. They commented about their own family members who did not act the way they do. They commented about the shrimp in my salad. Then they proceeded to loudly order a VEGETARIAN pizza that they split. These poor souls feel as though the entire world is un-compassionate to their values.

Yet, the waitress they made fun of came over to tell us that she was about to go on break. She had clearly been working for quite some time and seemed very tired. She asked us if we wanted to order anything else and then brought us the check. The female of the couple sitting next to me said, “I’m not done eating, I am not paying the check yet.” Whoa! Where did that compassion go?

So, perhaps 15 minutes after the bill came, they complained about the cost of the pizza (even though the price was clearly listed on the menu when they ordered it), they paid the bill in cash, and left a 10% tip on the table. Then as they left, they complained about the flight travel process as a “Hurry up and wait process.” Well, duh.

I am a big supporter and personal fan of the young free-thinkers in our society who like to buck trends. I fully support looking at the world differently, finding new ways to do things, and having a desire to create systemic change in this world. I love the whole hippy, granola, vegan, and green lifestyle. But if you want to change something – you also have to RESPECT that which you are trying to change.

The truth is, if you really want to change something, you have to really understand it: why it is the way it is now, what was is like before, how it works the way that it does, who is happy with it, why are they happy with it, who is unhappy with it, and why they are unhappy with it, etc. Imagine what kinds of solutions would result if more of these “free-thinkers” actually examined their environments instead of scoffed at them.

I challenge change agents to expand their understanding of why things are they way that they are. For one week, stop pushing for the way you think things must be and honestly look at the way things are. Best advice I’ve ever heard someone give an entrepreneur is “Shut up and listen.”

Our minds and bodies speak to us in many ways, most of the time in very subtle ways. Life does too. Those that can quiet their own thoughts and words long enough are the ones that can hear the secrets life whispers. Opportunity is found there. Listen for a while…

One SIMPLE way to IMPROVE the way you talk about your business

2009-07-03T06:24:00.000-07:00

My last blog post tackled the question of whether or not you really know how to talk about your business. If you haven’t read it, I highly recommend checking it out prior to reading this post:
Do you REALLY know how to talk about your business?

Since that previous posting, a few readers have e-mailed me asking me ways they could improve their introduction. I thought it might be time to share with you one of my favorite exercises for entrepreneurs. In nearly every single case, this simple exercise will help improve just about any kind of introduction for a business.

I call this, the “First Question Test.” The First Question Test works around what the name implies – the FIRST question someone asks you after you introduce your business. Whatever that FIRST question is, tells you what you are NOT explaining well about your business.

Let’s go back to our widget example from my previous post.

A: So, tell me about your business.
B: We are a locally based company dealing plastic widgets globally. We are really proud to have some of the bigger players in the industry as our clients such as Advantage Corporation, Accelerate Media, and Accent Incorporated.
A: So, what do you do in your dealings?
B: We manufacture and distribute.

The widget introduction did not give enough information about what their company actually does with the widgets. That first question indicated that the introduction was not enough for the listener to fully grasp the concept. The listener had to ask a question to clarify the business in their mind.

What the business owner should do now is incorporate that piece of information into his intro:

B: We are a locally based company that manufactures and distributes plastic widgets globally. We are really proud to have some of the bigger players in the industry as our clients such as Advantage Corporation, Accelerate Media, and Accent Incorporated. Are you familiar with the industry?

You want your listener to get it instantly. They should not have to work to understand your business. And it is your job, and YOUR JOB ALONE, to make sure that they get it. In the same way that it is a painter’s job to put the colors and shapes on a canvas in a way that allows you to recognize the picture as a tree. You have the same job painting a picture of your business. Perfect your color palate and your brush strokes with this simple method.

So, take your own introduction – no matter how long you have been using it – and put it to the Question Test. See what the first question people ask is. Then incorporate that answer into your next introduction and put it to the Question Test too. After 5-10 rounds of this, your business description will be tighter, more succinct, and ultimately – more intriguing!

Another fun way to use this is to ask someone ELSE about their business and see what THEY are not including in their introduction. Or better yet, if you are in a group of three or more, ask someone to tell someone else about their business and watch the interaction.

Especially if you have employees in your business, be SURE to watch them tell someone else (preferably who is not familiar with the business) about the business and see what kinds of questions THEY get. You can not only help to improve your own message, but the message others are sending out into the marketplace on your behalf.

Do you know how to talk about your business?

2009-06-22T15:46:00.000-07:00

Lately I have been meeting many types of entrepreneurs here locally in Cincinnati, both accomplished and nascent. I have also watched quite a few students taking entrepreneurship courses give pitches for their businesses since my last post. Every single business and every single entrepreneur is unique in their own way and each has its own strengths and weaknesses.

However, I noticed one thing that nearly all of them had in common. They simply did not know how to properly talk about their business.

It’s a similar problem when say, someone asks you to tell him or her about yourself. I have to admit I have had trouble with it too sometimes when I am caught off guard. Imagine yourself sitting at a bar or at a meeting and someone you don’t know says to you: “So, tell me about yourself.” Most of us can go into brain freeze mode and end up saying something about what we DO. Here is how a typical conversation goes:

A: So, tell me about yourself.
B: Well, I’m a lawyer.
A: Oh, wow. What kind of law do you practice?
B: I’m a family attorney.
A: Oh. So you do like divorces and things?
B: Yeah, I also do prenuptial agreements.
A: Oh.

Exciting huh? Well, that’s the way it goes when I talk to some of these newbie entrepreneurs.

Me: So, tell me about your business.
Them: Well, we sell widgets.
Me: Oh. What kind of widgets do you sell?
Them: Plastic widgets.
Me: Oh, so you distribute them?
Them: Yeah, we also make them.
Me: Oh.

When you are thinking about your business, and yourself too, try to develop a solid statement that gives the listener an immediate picture of what you DO and what you ARE so they can actually ask interesting questions that may get them interested in your business. Test that statement over and over and see what kind of response you get from different statements.

Ideally the conversation should go something like this:

A: So, tell me about your business.
B: I would love to! We are a locally based company that manufactures and distributes plastic widgets globally. We are really proud to have some of the bigger players in the industry as our clients such as Advantage Corporation, Accelerate Media, and Accent Incorporated. Are you familiar with the industry?
A: Yes, actually, I am actually in the market for a new widget supplier.
B: Well, I would love to put you in contact with one of our clients if you’d like to talk to them about our service.
A: That would be great, I appreciate that. The widgets we are using are breaking more and more often. It is really frustrating.
B: I know what you mean, we had this one client…

This intro gives the size, scope, and purpose of the business immediately. We know what they DO and we know what they ARE! So no time is wasted on trying to figure out the boring details. We are immediately able to get to what is INTERESTING about the business.

Don’t make someone work at understanding your business. Make it easy. Get them engaged in your story. You may find they will quickly become engaged in your business.

Gen Y vs. Baby Boomers – An identity crisis?

2009-05-17T16:35:00.000-07:00

Recently, I’ve been scanning the internet and keeping my eye open for leading experts on generational dynamics. I have found a few notable ones that I’d like to lend my support to. I’ve posted them at then end of this blog.

As I scanned the Internet, a trend seemed to be surfacing that was quite surprising. A number of Baby Boomers have proclaimed themselves “Millennial Thinkers.” Boomers are thinking like Millennials and are proud of it. There are even posts that give guidance on how to think like a Millennial in case you need a little help putting on those rose-colored glasses. Here are three examples I saved for your reading pleasure.

Do You Think Like A Millennial?

How to Speak Like a Millennial

Are You Really a Millennial?

I will say that I am slightly bothered that my own generation: Gen X; is not throwing their hat in the ring on this generational divide. But then again, it is just like us to be independent thinkers, out for our own best interests, and not trust anyone – isn’t it? Screw ‘em all we say!

But I digress…

Back to the Boomers and their growing desire to behave like someone they obviously aren’t. I am the first to admit that there are definitely strong generational divides that need to be addressed but I do not believe the solution to the generational pandemonium is to try to act like each other.

But is somewhat alarming to me that the Boomers are rejecting their label and more are following suit. It reminds me of something from my teenage years.

Did you ever have a friend that had one of those moms or dads that wanted to hang out with you when you came over? Some of them even went so far as to drink with you when you were underage? They would use cuss words, tell stories about when they were young, try to say cool expressions, and dress in clothes that were totally wrong for them. Remember how weird that was?

No matter how cool they tried to be, they were still parents. And hanging out with parents was just NOT cool. I mean – it was like creepy when your friend’s dad would laugh and pat your ass (or did that only happen to me?). The mom would drink a bit too much and hang all over the guy that you actually had the crush on (seriously, this happened to you right?). These parents would constantly push the line of appropriateness and you couldn’t really do anything because they were your friend’s parents.

That is exactly how I see the Boomers – parents trying to be cool by hanging out with their kids. And they are starting to pat the Millennials on their butts. If the Boomers aren’t careful, they will end up with a pool of Gen Y’ers who not only see them as weird, but as someone undeserving of their respect. And Boomers – we all know how important respect is to you don’t we?

There are strengths within each generation – Gen Y are optimistic free thinkers, Gen X are independent problem solvers, and Boomers are dedicated and diligent. There are also weaknesses – Gen Y are narcissistic and entitled, Gen X are cynical and jaded, and Boomers are stubborn and self-righteous. But it is these strengths and weaknesses that will balance each other out and help to create innovative solutions for the world’s problems.

I feel compelled to encourage Boomers toward redefining what we think of as a Baby Boomer, rather than redefining themselves into a Millennial.

Good Millennial Blog by Dan Schawbel

Fun to Read Blog with high cuteness factor: Life Before Noon

Great Boomer WSJ Blog by Gary Hamel

Book site for wonderful Boomer writer on Millennials: Ron Alsop

5 Simple Steps BEFORE You Pitch a Sell

2009-04-13T11:16:00.000-07:00

Most of the time, I am thrilled to hear from old students, especially when they tell me that they have kept their business going. This time was NOT one of those times. I got one of those e-mails that reinforces in my mind, why I do what I do.

I must forewarn you that the communication skills in this e-mail come across at a 5th-grade reading level, at best. However, the writer of this e-mail is about 26 years old and a college graduate. This is unfortunately, quite common among this new generation due to texting language, IM conversations, etc. See my earlier post: Over 20 Surprising Spelling Mistakes from College Seniors for examples. To this generation, full sentences and punctuation are considered a hassle. Even reaching a pinky finger over to hit the shift key is too much effort.

What is special about this e-mail is it was actually a sales attempt. So I decided to basically ignore the horrendous grammar and pull some sales tips out of this for your reading pleasure. For confidentiality I swapped the company name and details.

Here is the full e-mail:

Hi Colleen,

i took the business plan course with you on 2007 i think. my project was/is www.AAACompany.com it was about converting presentations into digital presentations...i see you are doing what i tried to do back then with the seminars you offered.

how come you arent using AAA Company services???

i was passing thought your website and found it out...please, let me know if there is any chance to do something together.

thank you

My first reaction is that he is completely self-absorbed in this e-mail. He has no interest in me personally - even though he is trying to leverage a personal relationship with me in order to gain a sale. He also isn't quite sure if it was me or not "i took the business plan course with you on 2007 i think." He THINKS? Sigh...

This e-mail could have been SO much better if he would have written it AFTER following these five simple steps:

1. Try to find out what your prospective customer is using so you can offer ways to improve upon their process. I would have been interested if he had looked at the technology we were using and made some specific suggestions for how he could help us function more efficiently. For example:
I noticed in your webinar registration system that you do not have a recurring customer log-in feature. My company could create this for you. This would enable you to track your recurring customer purchases. We would be happy to add this feature and keep the fees you pay your current supplier at the same level if you moved your work over to our company.

2. Be certain of how you met (or at least seem to be). The fact that he is not even sure if he took a class that I taught could be taken as personally insulting. I could think - wow, he doesn't remember me? I must not be special to him. You NEVER want your customers not to feel special to you. Even if you don't really remember - make it SEEM like you DO! In fact, I may not remember YOU so if you tell me we met at a conference, I'll probably believe you. Don't let me know you have doubts.

3. Develop a short and sweet pitch so I know you are good at what you do. Granted, he did try to do this by reminding me what his concept was in my class: "converting presentations into digital presentations." But it doesn't sell me on the company's ability or competitive edge. Since this was a re-connection e-mail, he could have mentioned how much he had grown since 2007 and how happy his clients were with his services. As a former teacher, I would care about his progress - he could have easily leveraged that.
For example:
I am not sure if you remember my company from your class called AAA Company, but we have grown tremendously the past two years. Our digital production service has grown to serve over X clients, some of our big ones have been Y, Z, and A! I would love to have the opportunity to show you some of the progress we've made.

4. Develop a way to ask without whining or begging. His question to me was: "how come you arent using AAA Company services???" Let's just pretend for a moment that the grammar isn't pathetic and just look at what his tactic is here. It is almost a whine. Ever heard a kid having a tantrum say, 'HOW COME?'. That is how this reads. Be confident and ask if the customer would be kind enough to hear your story. Do not ask them to answer a lot of questions. Simply, make it seem really easy for your customer to say yes.
For example:
I would love to take you to lunch and update you on my personal progress and also our company's products and services. Is there a time next week we could meet?

5. Google your prospective customer. This was the kicker. The website he was referring to was actually at a university I no longer work at. He obviously has no idea what I am really up to these days and is actually contacting the wrong person for this.

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10 Phrases to Delete From Your Business Plan NOW

2009-04-10T15:38:00.000-07:00

After over seven years of working with entrepreneurs, investors, and professors in the realm of entrepreneurship, new ventures, and business plans; I’ve learned there are some very simple, yet devastating red flags that we all look for in business plans, executive summaries, and concept statements.

Trust me when I say that these top ten words and phrases are glaring indicators that you are either inexperienced, naïve, lazy, or simply not serious about what you are doing. So copy and paste these puppies into your “Find” feature and use each one as an opportunity to make your language more specific.

1. Many – The first question that always comes to mind when I see this word is “HOW MANY?” Relative terms have no place in a document that is trying to establish validity. Show me that you have done the research and that you know your numbers, your market, and your opportunity in a quantifiable way. So often I see sentences that open up with "Many people want..." or "Many experts believe..." Who are these people? Who are these experts? A small focus group would add validity here. "Our independently conducted market research indicated that 7 out of 10 women between the ages of 15 and 20 want..." Much more compelling.

2. Very - Again, this word is simply unquantifiable and a bit extemporaneous. Whether you say something is strong or very strong, really does not tell me HOW MUCH stronger it actually is. Consider substituting "very" with a percentage. For example: "our fabric is 10% stronger than our leading competitor’s fabric." This comes across much more convincing than: "our fabric is very strong."

3. Widely known – YOU may think it is widely known, but it may not be. Also, widely-known by whom? How do you know it’s widely known? Have you talked to your entire “wide market?” Quantify the actual knowledge, and if you can’t – take it out until you can do the research that makes it justifiable enough to put back in.

4. Highest quality and lowest cost – This statement indicates that you simply do not understand revenue models or how they work. If you are going for highest quality, you are assuming that you are creating some added value along with your product or service. If this is indeed true, customers should be willing to pay for that added value. On the flip side, if you are trying to be the lowest cost provider, that indicates that you are going for a no frills model because your research shows that your customers will pay for the basic service or product because they do not value the extra features that ultimately add to the price. Saying you are going to both is a contradiction. You can certainly pitch a new operating model that offers the same quality at a lower cost - but avoid saying you will provide the highest quality AND the lowest cost.

5. We believe (or we feel) - Feelings and beliefs are great for soul searching and personal development seminars - but they have no place in a business plan. What convinces an investor or customer is the physical evidence. I see so many times, "The founders believe this product will..." Investors don't care what the founders believe, investors only care about what the founders can prove. Keep your passionate language for the in-person meeting.

6. The X industry is a $X million industry - This is what I like to call book report language. For some reason, the first instinct for writing about the market is to include the entire supposed market size. It seems that entrepreneurs think this will impress investors and help investors see the possible size of the opportunity. Nothing could be further from the truth. A better way to pitch the market landscape would be to highlight your own research in your primary market. For example: "Our analysis of the Orange County property database indicated that there were approximately 0.6 million homes at least 2,000 sq. ft. or larger." Which would be an appropriate statistic for a home installation company targeting the middle class.

7. We only need 1% of the market - This phrase, whatever the percentage may be is probably one of the biggest red flags there is. It follows up on the points made in number six of this list. The thought process behind saying the market is a $100 million market so we only need to tap into 1% of the market in order to have $1M in revenue is not only unrealistic, but plain idiotic. The actual factors that affect a market are so diverse and unpredictable, a wash over statement like this demonstrates your clear lack of understanding of it. The reasons why you should not use this one phrase is probably a blog topic all its own. For simplicity's sake, here is an example. Lets say a company like Microsoft controls 99% of the $100 million market. Hmmm..... changes the game a bit huh?

8. Conservative financial projections - Experienced investors generally will take any initial pro forma financial statement and double the costs and double the timeline to a positive cash flow. Financial projections, no matter how detailed and researched they may be, are estimates. They do not reflect the actual future, but your best guess at the future. Saying they are conservative are like a "duh." Just call them financial projections and be sure you have assumptions for all of your numbers. Investors know you think they are conservative. The honest truth is, every time they hear the word conservative, they laugh a little on the inside.

9. Our primary marketing strategy will be word of mouth - It saddens me how often I have to explain this, but building something pretty and hoping people talk about it is not a strategy. "If you build it, they will come" only works in corny Kevin Costner movies.

10. We have no competition - No matter what industry you are in, no matter what you are selling, and no matter who you are selling it to: you have competitors. If your customer can spend their money on anything other than what you are selling - that thing is your competition. Especially in this day and age, simply getting attention is difficult enough. In reality, whatever gets your customer's attention away from you is competition. Instead of spending your energy telling me how you have no competition, spend the energy showing me how you are going to get my attention.

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Over 20 Surprising Spelling Mistakes from College Seniors

2009-04-07T10:59:00.000-07:00

Can you spell graduation without a computer? A college senior probably couldn't.

I remember what shocked me the most when I began teaching college students – their poor grammar and spelling skills. I’ve come to realize that the primary reason for their poor spelling and grammar is Microsoft Word. The magic Spell Check and Grammar Check are literally deleting the requirement to remember all those "annoying" writing rules. Without those handy dandy wavy green and red lines – a lot of young college students suddenly become quite uncomfortable.

A colleague of mine and I were talking about this a few weeks ago and he offered to use his upcoming midterm, which was an in-class handwritten essay, as an example for me to review. He shared these with me last week so I could take a look at some of the common errors. The students in this class were all college seniors.

These were the most popular and repeated mistakes I saw. (If you can’t find the errors, don’t worry – I put the corrections in a separate blog called Corrections.)

I don’t want to loose any points.
Because they are experts and your not.
Pay attention to there needs as a customer
On several occassions
Leading resteraunt
Conveinence
Necessaties
Better alterative

Perhaps on a really good day, I can forgive some of the mistakes above. Maybe they were nervous taking the test. Maybe they were in a hurry. But the mistakes listed below are almost unbelievable. Take a look:

Carear Choice
Take those ideas and digg deeper
Start puting those words together
Non literal interperation
Finley aged wiskey
Your punisment
Arodynamic wings
They watched the hole time
On the possitive side, the product may be freasher
Greating cards
Used as a wieght for fishing
Dieing car battery
Horse rase
Creative stimulis
Our staff can renivate an old building
I want the product to reach the customer in tact
Have the person wright it down
Marketing campane

This one is by far my favorite. I couldn’t find a place to cut it into pieces – so I put the HOLE thing in.

"Can I get this service in the middle of no ware? Does the fact that I live in the middle of no ware no cost more? How can you garenty they will be fresh?"

These are COLLEGE SENIORS writing this – on an EXAM. These aren’t casual handwritten notes; they are deliberate statements they prepared to be graded by their professor. They also aren’t simple mistakes like freind or sceince (remember that annoying rule? “I” before “E” except after “C”?). Nor are they mistakes we can all forget at times like “Tommorrow” (Is it one “m” and two “r’s” or vise versa?) or even “Entreprener.” (MOST people can’t spell this one right – its almost as hard to remember as miscellaneous.) The mistakes I found were whoppers. Oh, and I didn’t include all of them, there were more than this.

To their defense, there were some intelligently handwritten essays in the pack. Their handwriting was even pretty. However, it was painfully obvious who was used to writing by hand and who wasn’t. The truth of the matter is –regardless of how smart you think you are – no one will think you are smart if we can’t read your handwriting, or worse – can read your writing and we laugh at your mistakes.

There is value in writing by hand – even if it is just writing a personal journal. Writing by hand isn’t only a mental exercise; it is also a kinesthetic process. Not only do you have to rely on your own grammatical and spelling knowledge, but also you have to think a lot slower because your hand can only write so fast. Your mind and body have to work in a much more coordinated effort.

Asking your brain to communicate to your hand to hand write something is a wonderfully refreshing exercise. I highly recommend it and if you can, try to write at least two pages in one sitting. You might actually be surprised at how many words YOU don’t know how to spell.

For those of you who are interested, the corrections to the above mistakes are posted in a separate blog: Corrections.

Corrections

2009-04-05T09:27:00.000-07:00

These corrections are related to the post 20 Surprising Spelling Mistakes From College Seniors. The corrected statements are pasted below the original statement and marked with a bold font.

I don’t want to loose any points
I don’t want to lose any points

Because they are experts and your not
Because they are experts and you're not

Pay attention to there needs as a customer
Pay attention to their needs as a customer

On several occassions
On several occasions

Leading resteraunt
Leading restaurant

Conveinence
Convenience

Necessaties
Necessities

Better alterative
Better alternative

Perhaps on a really good day, I can forgive some of the mistakes above. Maybe they were nervous taking the test. Maybe they were in a hurry. But the mistakes listed below are almost unbelievable. Take a look:

Carear Choice
Career Choice

Take those ideas and digg deeper
Take those ideas and dig deeper

Start puting those words together
Start putting those words together

Non literal interperation
Non-literal interpretation

Finley aged wiskey
Finely aged whiskey

Your punisment
Your punishment

Arodynamic wings
Aerodynamic wings

They watched the hole time
They watched the whole time

On the possitive side, the product may be freasher
On the positive side, the product may be fresher

Greating cards
Greeting cards

Used as a wieght for fishing
Used as a weight for fishing

Dieing car battery
Dying car battery

Horse rase
Horse race

Creative stimulis
Creative stimulus

Our staff can renivate an old building
Our staff can renovate an old building

I want the product to reach the customer in tact
I want the product to reach the customer intact

Have the person wright it down
Have the person write it down

Marketing campane
Marketing campaign

This one is by far my favorite. I couldn’t find a place to cut it into pieces – so I put the HOLE thing in.

Can I get this service in the middle of no ware? Does the fact that I live in the middle of no ware no cost more? How can you garenty they will be fresh?

Can I get this service in the middle of nowhere? Does the fact that I live in the middle of nowhere cost more? How can you guarantee they will be fresh?

Entrepreneurialshipismish - How to speak entrepreneur

2009-04-03T10:44:00.000-07:00

Working within and around entrepreneurship education brings you in contact with many different types of people. Its actually one of the coolest aspects of teaching entrepreneurship – it excludes no one. We work with every culture, every skill level, every background, every age, and every personality.

That being said – I have discovered that there is a shared pet peeve among my colleagues and I. It is the constant misuse and mispronunciation of the word “entrepreneurship.”

It may seem like a silly topic, but I am actually fairly serious about this. Imagine if you were forced to go through life with someone always saying your name wrong. It would probably bother you too.

As we start to get into this, I must ask that we not get into an argument over the actual definitions I put here. They are in no way all encompassing of all of the academic and professional definitions that have been published. This is just simple layman language here.

CORRECT:

Entrepreneur – the person

Entrepreneurship – the action

Entrepreneurial – a way to describe a person or action that may or may not have something to do with starting an organization (i.e. – it was an entrepreneurial way to approach the challenge )

Now, these next few terms are technically words – but they get on most people’s nerves because they don’t really MEAN anything.

SLIGHTLY ANNOYING:

Entrepreneurialism – I just don’t get this term. Is this supposed to be like a theoretical way of looking at the world? Like Idealism? Or like an economic system a country could take on such as capitalism or socialism? Maybe this is Obama’s new way of running our country? Its just a plain weird use of the word.

Entrepreneurially – This one doesn’t bother quite so much as the one above. I generally don’t mind it if its coupled with something else – like entrepreneurially-minded. But please other than that – it’s just a vague and dumb sounding adverb. Kind of like when people use a word like tumultuously in a casual conversation.

Entrepreneurism – This one disgusts me almost as much as Skyline Chili loaded onto spaghetti. It’s very similar to my above comparison to socialism and capitalism. But the term itself comes across as so restricting and formulaic, which is the very opposite of the essence of entrepreneurship. And how WOULD you use it in a sentence?

Drum roll please... these words below are truly the Sanjaya Malakars of entrepreneurship world. If you use these words, you are just going to seem stupid. The scary part is – I have heard many college faculty members use these terms.

JUST PLAIN WRONG:

Entrepreneural - Its not entrepreneural – It is not neural – its neurIAL. I swear I’ve heard George Bush use this bastardization of the word in a speech. Put ALL the syllables in there.

Entrepreneurialship – Its funny when you see someone say this word – its like they aren’t sure which term is right, so they just put all of the versions together. Even as they say the word – you can see them saying to themselves – crap, I know this wrong.

Entrepreneurshipism – Ok, I admit – I don’t think I’ve ever heard anyone use this non-word, but I’m sure someone somewhere has. It just sounds like a hiccup.

Entrepreneurialistic – This seems like a word the Millennial generation would come up with to describe a positive way to look at life. (Never mind most entrepreneurs go into bankruptcy their first few times out of the gate.) I suppose in a marketing world where they are making up words – like the new Snicker’s campaign: “Learn to Speak Snacklish”– it would be cute, but when you are serious – don’t use it. It’s not a real word.

So, in serious conversations, if you stick with the basic three: entrepreneur, entrepreneurship, and entrepreneurial; you will be in pretty good shape. If you stick to that, we'll even forgive you for needing spell check to write them.

They Stole My Name! Or did they?

2009-03-29T13:04:00.000-07:00

This week, my partner and I headed down to our local business incubator to participate in their Morning Mentoring. It is kind of like a version of speed dating, but designed so that entrepreneurs can get advice from different professionals and experts on the challenges they are facing in their start-ups.

One of the groups of entrepreneurs we met with were very difficult to work with (I won’t mention much about the business). I was really disappointed in their unwillingness to work with us on various ideas for improvement. This entrepreneur was just WAY too in love with her baby to even consider it might be a bit ugly.

However, she did make a comment that I thought was worth addressing here. It was about trademarks. We were discussing her business’s name. Her business was a health-related business and my partner made a comment about a technology development firm in California with the same name. The entrepreneur wanted their contact information because she said that she had the name trademarked. This was a big window into her lack of knowledge surrounding entrepreneurship.

Now, I am no lawyer of any sort, but there are some basic knowledge framworks one should have regarding certain issues. A trademark is a pretty basic concept that anyone in business should understand.

A company can have the exact same name as you if they are conducting a different type of business. It all depends on how many identifications a trademark has ownership to. These identifications are designated by the US Patent & Trademark Office. For the full list, take a look here: http://tess2.uspto.gov/netahtml/manual.html

Let’s look at say, an alcohol producer. Depending on they type of alcohol they are producing, depends on how many government assigned identifications they should associate their trademark with:

Alcoholic aperitif bitters
Alcoholic beverage produced from a brewed malt base with natural flavors
Alcoholic beverages of fruit
Alcoholic beverages except beers
Alcoholic beverages containing fruit
Alcoholic beverages, namely, {indicate specific beverages} [cannot include beer since beer and related products such as ale, porter, stout, etc. are classified in Class 32]
Alcoholic bitters
Alcoholic cocktail mixes
Alcoholic cocktails containing milk
Alcoholic coffee-based beverage
Alcoholic eggnog
Alcoholic energy drinks
Alcoholic essences
Alcoholic extracts
Alcoholic fruit cocktail drinks
Alcoholic fruit extracts
Alcoholic malt coolers
Alcoholic punch
Alcoholic punches
Alcoholic tea-based beverage

Regardless of how many types of alcohol the producer thinks they are producing, they should follow what the government has set up for types of alcohol.

Another example: two local knitting shops could not both be named Fuzzy Wuzzies, but a local knitting shop and a local dog groomer could certainly share the same title.

After I've talked about this in groups, a common question I hear is: how is Disney able to monopolize their name? Well, for two pretty simple reasons.

1. I can’t think of much Disney is NOT involved in.
2. And this is the primary reason – do you have the money it would take to fight Disney?

So in the end, similar to a patent – they are only as valuable as you are willing to pay to defend them.

The Millennial Man

2009-03-14T10:15:00.000-07:00

I have an addiction to admit to. My mother introduced me to it.

It is HGTV.

My favorite shows on the Home and Garden TV Network are the home searching shows. I love watching people try to choose between 3 different homes to buy or watch them renovate their homes – it is quite voyeuristic in nature, I admit, but it is just so much fun to watch!

My recent viewing prompted some thoughts on how the image of what a man is and should be is not what it was ten years ago…

There is a relatively new show out this season called Property Virgins that takes a young couple through the process of buying a home for the first time. A realtor named Sandra Rinomato (who bears a strange resemblance to the gal in Nanny 911) helps these first-time buyers figure out what to look out for in homes, what types of things will increase the property value, and how to spot major red flags.

I settled in to check out this new show and this particular episode featured a recently engaged couple in their early 20s. He still lived at home with his parents (and he is proposing?) and she lived in a one-bedroom apartment (and she said yes?).

Together this young couple had about $150,000 to spend on the home with a $10,000 down payment and wanted three bedrooms, 2 baths, a big lot, finished basement, a front porch, and something close to where they worked. (For my Miami friends, who just choked on their own laughter, this episode took place near the Canadian border – I was able to tell by the way everyone kept saying “hoowse”.)

So, Realtor Nanny Sandra took the couple to see three different homes:

“Hoowse One”:
Positive: Great location, spacious, good layout, a bit pricey
Negative: Needed paint, fixtures and cabinets resurfaced
Overall: Good home buyer choice – but a bit over budget

“Hoowse Two”
Positive: Move in ready, updated appliances
Negative: Smaller, difficulty layout, horrible location – across from warehouse complex
Overall: Not a good choice – mainly window dressing makes the house attractive

“Hoowse Three”
Positive: Good layout, updated appliances, good price
Negative: Good location, but far from main areas, needs minor work
Overall: Best choice (the one they picked with help of Realtor Nanny 911)

The learning moment for me here was watching this young couple’s reaction to the second home. Just the fact that they would not have to change anything, update anything, or do any prep work to move in – they were sold. The house had horrible curb appeal – it was right across the street from a large warehouse in an industrial area. They did not even notice it until it was pointed out to them. What this tells me, is window dressing is king.

Millennial marketing is not only about making the world a happier, more meaningful place – it is also about pampering and making everything really easy. This show was not an unusual example. Most of the men in couples I see on this and other home buyer shows, do not want to work on the house. “I am not a handy man” or “We don’t want to do any work” or “I don’t need any more projects” are all HIGHLY common phrases that come out of young men’s mouths.

The odd thing to me was that these men were not ashamed to say these things. In older generations, men were expected to be MANLY – which in those days meant strong, dirty and smelly. “Manly” seems to have developed into a new definition. Celebrated masculinity is now encompassing softer attributes. Simply browsing through Abercrombie & Fitch campaigns over the years, the men in the ads have become less and less muscular. Which implies that the idea of what a man is – is also changing. Photo credit: abercrombieandfitchmodels.blogspot.com

2001 Abercrombie & Fitch:
2009 Abercrombie & Fitch:

Another example that has popped up on my radar is Axe’s new “Hair Crisis Relief Get Girl-Approved Hair” campaign – it even has a dubious web address: http://www.axehaircrisisrelief.org.

Essentially the premise of the campaign is for a guy to get APPROVAL from a girl on their hair. WHOA!! Wait a minute - you mean the GIRL has control now Axe? This seems a far cry from their popular “Get the Axe Effect” campaign ads. The Axe Effect implied that you would have your way with women, they would flock to you. You may remember some of these.

Previous Axe Campaigns:

With these old campaigns Axe stood up for male chauvinists everywhere. Promoting women as playthings that they could use and abuse by the hundreds - just by wearing their cologne! It was good old-fashioned objectifying women marketing. Unilever even caught a lot of negative press because they were running the Axe's Get the Axe Effect campaign alongside Dove's Campaign for Real Beauty. Axe is certainly changing their tune.

As the Millennial male reaches manhood, it seems that the once prized tough, handle-it-all, muscle-bound, and emotionless image of a man is fading into an image of a man that is slim, trendy, sometimes eyeliner doting, introspective, and needing to be pampered man.

In all honesty, the Axe campaign is brilliant. It is helping men everywhere be approved by women before even talking to them.

It’s the always popular no risk/big reward promise.

But then, isn’t that what Internet dating, social networking, and texting is all about?

International Entrepreneurship in Academics

2009-01-07T12:27:00.000-08:00

Every few months or so, an individual in their early to mid-twenties pops up on my radar again with a completely new point of view on life and the world. What was the catalyst? I would say 7 times out of 10 it is traveling or living internationally.

The most common realization is how closed off and unaware American youth tend to be. Then the moment comes when they decide that they are going to try and find a way to change that. That’s where the fun begins.

Ultimately this individual develops some type of concept dedicated to exposing American youth to the rest of the world in one way or another. The international differences normally prompt a wealth of ideas for building bridges across the world’s cultures.

This post was spurred by one such individual who is spearheading a newly launched concept called Next Step China and he asked me if I had any ideas for helping him spread the word on a national scale. I realized that I had seen these academic/internationally-themed concepts done numerous ways in the past. I thought perhaps it merited a full discussion.

Next Step China is a company that offers college-aged individuals an opportunity to travel to China for an extended period of time while also learning the language and meeting other college-aged individuals like themselves. This is certainly a business that is marketed with the Millennial mindset at the forefront.

The marketing of this type of experience should promise customized, fun and challenging scenarios along with a bit of pampering. But how do you reach them with this message? Sure, there are nationally accessible (and free!) tools like social networking sites (i.e. Facebook), but somehow these channels are starting to reach a point of saturation. We simply do not have the time to pay attention to every hit we get on our networks. However, there is an existing network being used by many today that has proven itself to be effective: the university system.

The target demographic for this type of business are students (Millennials) who are interested in the world, interested in being an individual while still remaining a part of a group, and interested in taking a chance on a new experience. These types of people tend to go to college.

Believe it or not, I have seen a number of these kinds of concepts come across my desk. Most of them disappear as quickly as they appeared. However, the ones that have been able to persevere and find a sustainable advantage are those that figured out a way to penetrate the school system.

Two great examples are University Placement Services and Go Global Education. Both of these companies were founded by students at Florida International University while I was there. The primary reason they succeeded was their ability to get buy-in from someone on the inside of a large institution.

The first company, University Placement Services, helps international students, primarily those in South America, apply to American universities. The secret to their success was gaining the buy-in of admissions officers at U.S. universities. There were plenty of travel expenses involved in creating and maintaining these relationships; but they paid off. And they paid off big. The entrepreneur running this company has built a machine that now practically runs itself and he now has time to, yep, you guessed it – start another business!

The second concept focuses on the high school level, but all of the same rules apply here as well. This entrepreneur had to develop relationships with the school districts. He wanted to provide an up-to-the-minute tool for social studies teachers to use in the classroom to help U.S. high school students gain a better grasp of the international world. He has essentially developed a fan base of teachers and administrators who are asking for his product in their classroom! Again, it took time, money, and dedication to penetrate the system – but once you’re in, your golden. (This is where that $50K mentioned in the previous blog comes in pretty handy.)

One last thing I should mention, both of these entrepreneurs have their people skills down to a science. Without a doubt I believe they could charm the dots off of a ladybug if they set their mind to it. Persistence was certainly a primary ingredient in their success, but their demeanor, finesse, warmth, and trustworthy nature make you want to help them in any way you can. Perfecting the art of networking and sales is a definite must when you are trying to penetrate a large bureaucracy like a university or school district.

My advice for Next Step China would be to get their feet wet by speaking to internationally-oriented student organizations at leading universities across the nation. The ideal scenario would be to have a professor (or better yet, dean or department head) gain interest in this concept. Additionally, if there could be college credits earned for students – you would have a re-recurring base of students every semester (or every other semester). Even better, you may find a grant program to work with and that would make you even more attractive to an internationally oriented program or institution.

Keep in mind that you are also competing against summer abroad programs. It needs to be clear to the university administrators, professors, and students why your program is better. And not only better on the whole, but better for THEM. For example: Why should the professor advocate your program versus another one? You should also be familiar with government initiatives like CIBER (if ya don’t know it, ya should – look it up).

It does not take a lot of hoopla to get in these big doors; just the right amount of persistence and charm coupled with that special someone who can open it for you. And once you are in, you can be set for life.

Four Questions to Ask Before Starting a Business

2009-01-02T12:13:00.000-08:00

It’s the New Year and everyone is either reflecting or predicting. What did I learn this year? What will be the big trends of 2009? Will the stock market rebound this year? What the heck is real estate going to do? And of course, will Obama be able to save us all with optimism, hope, and a cute puppy?

In all fairness, I feel pretty good about 2009. I have also run across some interesting discussions about the upcoming year. Check out Robert Hacker’s post for a good example.

This morning I received an e-mail from Amazon.com suggesting a few newly published entrepreneurship books because this is THE year I should start my business idea. Well, that got me thinking (yes, ok I AM reflecting a bit too). A colleague of mine who also works a lot with college-level aspiring entrepreneurs has four questions he always asks before he agrees to help a student launch a business:

1. Do you have $50,000?
2. Can you hire and train someone to replace you?
3. Are you willing to give up your entire personal life?
4. Do you have an idea that you can sell enough of to give you a month’s rent every month?

If the answer to any of these is “No,” or “Not yet,” you may not want to venture into the world of starting a business. However, just like everything in life, there are exceptions to these rules. Question 1 and 4 can be negated if you are a Millennial living at home and have parents who are willing to fund your personal expenses for the next 9 – 18 months. Oh, and you don’t mind planning to live at home for the next 2-3 years.

When I was growing up, this simply was not an option. We were expected to go AWAY to college and STAY away by getting a job fresh out of school. But Millennialland seems to be breeding more and more of the types of parents who not only tolerate their 25 year olds living at home with them, but enjoy having them too!

One last note: while Question 4 can be negated completely via Millennialland Law, Question 1 still stands depending on the type of business you want to launch. The good news is I’ve noticed that Millennial parents will also kick in some support for their children’s dreams of changing the world.

So, Millennial Entrepreneurs, the best thing you may want to do for yourself this year is treat mom and/or dad REALLY well.

Don't Believe the Hype

2008-12-03T06:20:00.000-08:00

Fa la la la la la la la la la. TIS THE SEASON TO BE JOLLY!!!
Fa la la la la la la la la la. DECK THE HALLS WITH BOUGHS AND HOLLY!!!

Normally by this time of year I am literally SICK to my stomach from the Christmas jubilee. Somehow though, this year I’m not that sickened because quite frankly, I don’t think people are really INTO it this year. Christmas seems to be getting it's heart broken this year – “Sorry Christmas, we’re just not that into you.”

But the SPIRIT of Christmas, in terms of giving and spoiling, is still very much alive and well in Millenialland (that’s my new name for anywhere in the Northern United States that have more than 3 Millennials residing in it). For those of you not familiar with this new movement – that’s EVERYWHERE.

I’ll be honest. I think this sudden outpouring of angst (I can be an emo too!) was spurred by the announcement of two entrepreneurship related initiatives. The way these were pitched is just mind boggling to me.

1. The $100,000 Big Idea Business Plan Contest

“Do you have start-up company with great potential? If so, you might check out Pennsylvania’s Big Idea Business Plan Competition sponsored by the Ben Franklin Technology Partnership Program. The contest is looking for firms with innovative ideas that are located, or willing to relocate to, a 32 county region of Pennsylvania. The winner will receive $100,000. The contest is open to all firms, but the contest judges are especially interested in companies in key technology fields. The contest is yet another interesting idea for how states can help stimulate innovation and encourage the growth and development of new technology start-ups. The deadline for applications is December 17, 2008.”

Wow! I have great potential! I have an innovative idea! I could relocate! I deserve $100,000 for my business!

No need to show a sustainable or (heaven forbid) profit-driven business model.
No need to show a genuine NEED in the marketplace for your product or service.
No need to demonstrate your ability to communicate a benefit to the potential consumer.
You definitely do not need to demonstrate your ability in running a business.
You CERTAINLY do not need to substantiate any of these claims either!!

Just show up.
Tell us your idea.
We’ll tell you we love you.
Then, we’ll give you money.
That’s it!
That simple.
You have the idea that will change the world.
Put a second mortgage on your mother’s house and put it all into this idea.
Seriously, it will work.
No need to talk to a potential customer.
It will work.
Why? Because you BELIEVE it will.
And in Millenialland – everybody wins.

I can personally attest to the fact that people BELIEVE this hype. These people have darkened my doorway more than a few times.

My second and probably most disturbing entrepreneurship ‘innovation’:

2. Johnny Money

"The National Federation of Independent Business (NFIB) Young Entrepreneur Foundation has recently unveiled a fun new on-line game called Johnny Money. The game is a free small business simulation that can be used in classrooms or by kids working on their own. It allows kids to set up an on-line business and make the day-to-day decisions that often face new entrepreneurs through a fun and exciting way to learn about the world of entrepreneurship."

Ok, I did this. I set up a Surf & Skate shop called Mac Daddy – yeah I know… the name ROCKS. LOL. (Is LOL an actual sentence that requires punctuation?) We bought inventory, set an advertising budget of $10K and ROCKED our first month. Our first month. Our first month? YES – OUR FIRST MONTH!

Now, perhaps I am SO disconnected from our reality (that is becoming Millenialland) that I have somehow missed that all you have to do is open up a brick & mortar storefront skate shop to turn a profit in a month. Nevermind the fact that you actually have to come up with at least $50,000 just to OPEN.

Every single store-owner entrepreneur I have ever known struggled for months (6 months at least) to turn a profit. Unfortunately, over half of these entrepreneurs were forced to close their shops within 18 months mainly due to cash flow issues.

It seems to me like this NFIB group is selling crack to elementary school level kids. “Here kid, try this –it will make all your dreams come true. No work. Big return.” And the kids buy it – why? They don’t know any better.

Oh, my wise, young friends. I know that nothing I will tell you will sink in any further than Spongebob Squarepants’ red tie (which doesn’t ever seem to float even though he’s underwater). However, I will try anyway.

There is a reason that business investors double expenses, halve revenues, and elongate the overall timeline when they are looking at an investment. Because REAL LIFE and REAL BUSINESS costs a LOT more than you think it will.

Let’s take an example. Let’s pretend that you have budgeted for a few nights in Daytona Beach with some friends for Spring Break.
- You offered to drive, so the group is going to cover the gas.
- A few nights in a cheap hotel room – we’ll say $100 a night to be safe which will be split between you a buddy - $50/night for 3 nights.
- Food will be roughly $30/day.
- Alcohol will be roughly $30/day.
- You may buy a few dumb t-shirts so add an additional $40.

We are now at a grand total of $430. Then, all of a sudden, the day you are supposed to leave, you crash your car. You were everyone’s ride. All of your friends are really upset at you because it turns out the crash was totally your fault. So, now, your have to pay for the hotel room because you got it on hotels.com and there are no cancellations allowed. Not only that, but all 5 of your friends (also renting an additional 2 rooms) are demanding that you cover their hotel fees for that first night too. I mean it is YOUR fault they can’t go on time. THEN you find out its $1,200 to fix the quarter panel and bumper of your car and it will take a week to fix because they can’t get the part any sooner. So NOW you have find transportation up to Daytona Beach for you and 5 of your closest friends because you have actually for the full 3 nights at the hotel up there and you’ll be damned if you don’t get to use some of that hard earned money.

So, you’re in luck. Turns out that someone over 25 is in your group (who is on the 7-year college plan) and is willing to rent a van for the trip. But now you have to shell out cash for the rental. Turns out this 25 year old does not have insurance so a simple $35/day rental turns into a $55/day rental. The costs keep going up and up somehow.

By the end of the trip you have the following extra expenses:

- 3 nights in a hotel for your friends’ first night reservation: $300
- 4 days of rental insurance and fees for the van (split among you not including driver who refuses to pay) - $44
- Splitting the gas costs - $50
- Losing 3 games of Texas Hold ‘em to your ex-girlfriend’s new boyfriend - $50
- Buying a girl drinks at a bar two nights in a row, really thinking you were going to get some - $80
- Don’ forget the $1,200 for the car!!!

In a simple trip to Spring Break that you budgeted $430 for, suddenly has cost you $2,154. Perhaps you think this example is a bit extreme. But the reality is this is kind of like what EVERY DAY in business is like. Everybody does NOT win. No one is praised for a GOOD idea. It is DOG EAT DOG. KILL OR BE KILLED.

Sigh… fa la la la la la la la la.

Ok, so EVEN if, you live in Millenialland and can rise above these challenges, you MUST be prepared to face these challenges. Not all people are nice people. Your family will not always love you for just you. Your friends may become your business partners and your business partners may become anything but your friends.

Where are the organizations that give our new generation this tough skin? A lot of the Millennials I talk to accuse me of being pessimistic. They argue: I will be different! I can change the world! I am special!

Doth I protest in my defense! It is not a pessimistic view I am promoting. I want you to succeed! I am promoting what I like to call active optimism (or being proactive). I define active optimism as the actions involved in creating your desired reality that benefits YOU. I promise! Hype is for the weak and mindless. Don't buy it.

City Girl Meets Dixieland

2008-11-12T18:22:00.000-08:00

Sunday I returned from a relative’s wedding, which was held in Branson, Missouri. For those of you not familiar with Branson, well – the best way I can explain it is Las Vegas gone hillbilly. Every possible family band act you can imagine has its very own theatre on a strip that showcases southern country culture as far as the eye can see. From Dolly Parton’s Dixieland to Presleys’ Country Jubilee, it is truly Dixie Land’s Headquarters.

Admittedly, I was NOT AT ALL familiar with Branson and its many treasures – perhaps if I had been, I would have thought twice before agreeing to go to the wedding. The wedding ceremony, by the way, was held at Silver Dollar City (your imagination can not even begin to reflect the reality). For added fun, the reception dinner was a public buffet line (they let the wedding guests butt in line) that had food that made Golden Corral look gourmet. Keep in mind that both families were dressed to the nines (my dad was in a tuxedo). And are you ready for the kicker? It was a DRY wedding. Gotta love the Bible Belt.

At the end of the trip before heading to the airport (which had SIX gates), we stopped at a Bob Evans’ Restaurant (also a new experience for me) for what was actually a REALLY GOOD breakfast and we reflected on our experience. At the very least, it exposed me to a part of America I would have had to see to believe. I looked around at the other breakfast diners in the restaurant (my favorite was the teenage girl in the tie dye shirt that read “Branson” on the front) and realized how little I really understood about this demographic.

As my fiancé and I chatted over breakfast, we found ourselves truly appreciating this part of the country. I have a lot of respect for someone who is happy and content living the farm life so us city folk can get our milk and eggs. I imagine life on the farm is a tough deal and the trip renewed a sense of respect for these folks who dedicate their lives to the industry.

Then, on our way out, I grabbed a free copy of the “Branson Daily Independent” newspaper and I saw this:

I do not have much else to say about this. I should say that I do have the perspective that life on the farm is different and a lot of families rely on hunting for food (therefore children are taught to shoot guns). But I have to admit – the opening paragraphs of this article threw me for quite a loop. That was the cherry on the sundae.

Thought it was worth sharing.

Proper Etiquette of Social Networking

2008-11-04T07:24:00.000-08:00

Let’s say that you have just heard the funniest joke ever. What do most people do? Well, typically they’ll tell that joke to a friend. Now when you tell the joke again to your friend; lets call him Joe (seems to be the popular name at the moment). The usual opening line is: “Oh! I heard the funniest joke the other day…” No need to say who told you the joke, I mean it feels good to take the credit of making someone laugh right?

Well, now lets say that you’ve told this joke to your friend Joe and the next day you and Joe go out with a group of mutual friends. Guess what? Joe told YOUR joke to the group of friends and doesn’t even say he heard it from you! Now, because you are right there, you are likely to feel an urge to say something reminding Joe that he heard the joke from you. You deserve some of the credit here right? I think most folks would feel at least a twinge of negativity toward Joe for taking credit for “your” joke.

Well, in the world of social networking, links to cool stuff are being shared and passed around constantly. A lot of the time, you’ll get a funny e-mail and pass it along to your friends. Whether you directly forward it doesn’t much matter because most of your friends don’t know your friends.

This is all fine and dandy when we are talking about jokes. But when it comes to passing along knowledge – the rules are a bit different. In the world of social networking – you are ALWAYS out with your friends. In other words, you become the Joe in scenario above if you take credit for someone else’s work, resource, or thought and post it as your own. Its just plain rude!

This happened to me this week.

I forwarded an interesting link from a blog to a group of colleagues. It was relevant to the situation we were all involved in at the time. This was about two weeks ago. Most of the folks on the e-mail replied with comments and some even forwarded my positive comments to the blog author – who was flattered I passed their information along. Well, one individual did not reply, so I figured they did not find it interesting.

What WAS interesting was on Monday I received a newsletter from their company posting the same information AS THEIR OWN! It was at that moment I made the decision never to work with that company or have any kind of involvement with that individual again. In one swift shot, this person killed a relationship. They became just another Joe.

I debated forwarding it to the blog author, but decided against it, as the return did not outweigh the cost.

You’ll notice in previous blogs, when I take information from somewhere, I am clear about where that information came from and will give credit where credit is due. This is not only polite, but it is smart.

If my colleague in the scenario above would have sent me an email – “Great information! Would you mind if I included it in our newsletter?” It would have actually enhanced our relationship because I would have felt valued and special. And isn’t that what we all want to feel? Special? Cheesy, but true my friends.

Another step they could have taken to make me feel MORE special would be to say, “I’d like to cite the original source, but would like to credit you and your company for passing it along.” At that point, not only would I feel special, I would feel indebted to them – and be strongly inclined to promote their services whenever possible. (This is also known as the time tested old strategy of word of mouth.)

But nope. They were rude and a bit sneaky since the assumed I wouldn’t see it – which also indicates they feel my intellectual capacity is lower than theirs.

So, make someone feel good – cite your sources and when possible, let the source know you think they are pretty special too.

President's Job Description - Have you read this lately?

2008-10-21T07:13:00.000-07:00

A colleague and I were chatting about a news story that came on last night about Palin’s campaign and how the parents of children with Down syndrome are big supporters of Palin. These supporters admitted that this is mainly due to the fact that Palin chose to give birth to a child, named Trig (no comment on name choice) with the same condition, rather than aborting the pregnancy. These niche supporters of Palin claim the reasons for their support is that it makes her seem more human and she reveals a real personal side of herself (Gov. Palin cries at each and every one of her appearances).

That is really nice and fuzzy and all – but my colleague and I were talking about the skills necessary for our president. I mean – our president may need to push “THE BUTTON” in order for us to be safe. Are emotions and personal feelings IMPORTANT to fulfilling the job? We joked that the general American public tends to forget what the President DOES. Then we wondered – well, what IS the job description?

So, I went searching…I decided NOT to Google immediately – I wanted to logically search first.

First, I went to the most logical place I could think of – the government’s website. I mean it’s a government position… they certainly have a job description for the most important position on their staff…

The first thing I stumbled upon was something called a government manual. I actually laughed out loud – I was immediately curious on what exactly was in this generically named “manual.” So I clicked on it and was given a search bar. So I typed in “President” – 40 hits. The most relevant one I found (quoted from the Constitution) described the President as:

“The executive Power shall be vested in a President of the United States of America. He shall hold his Office during the Term of four Years, . . . together with the Vice President, chosen for the same Term . . . .'' In addition to the powers set forth in the Constitution, the statutes have conferred upon the President specific authority and responsibility covering a wide range of matters.

The President is the administrative head of the executive branch of the Government, which includes numerous agencies, both temporary and permanent, as well as the 15 executive departments.”

Hmmm…. Not really much there. I mean – what is a “wide range of matters” anyway? And how exactly do I have specific responsibilities on a WIDE RANGE of matters? So I decided to go to the original source – the Constitution. AH! I found qualifications!

"No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President; neither shall any Person be eligible to that Office who shall not have attained to the Age of thirty five Years, and been fourteen Years a Resident within the United States."

Hmmm…ok so they need to be born here and at least 35 years old. Um… ya know, I think if I were to post a job with those qualifications – I’d get sued.

Moving on…

Aha! Compensation!

"The President shall, at stated Times, receive for his Services, a Compensation, which shall neither be encreased nor diminished during the Period for which he shall have been elected, and he shall not receive within that Period any other Emolument from the United States, or any of them."

Ummm… so they get paid what exactly?

Ok, so they go on to talk about his job as Commander in Chief. He (YES HE) has the power to:
- grant reprieves and pardons for offences against the US
- make treaties if the Senate agrees
- appoint ambassadors, supreme court judges, and other officers not specified by policy
- fill up all vacancies that may happen in the Senate

Then they go on to say that “from time to time” (I kid you not that is a quote) give some suggestions and information for Congress to consider and he has the power to call meetings and adjourn meetings at any time.

Finally, they say that he will be fired if he is convicted of treason, bribery, or other misdemeanors.

Wow, so – what I got from that is…. Yeah – I’m gonna keep searching.

So, I went back to the government home page and searched “President Job Description.” I actually got a hit!

Here it is:

"For convenience, we have divided these main powers into three categories: Head of State, Administrative, and Legislative Powers.

As Head of State, the President meets with the leaders of other countries. He has the power to recognize those lands as official countries and to make treaties with them. However, the Senate must approve any treaty before it becomes official. The President also has the power to appoint ambassadors to other countries, with the Senate's approval.

The President is also the official head of the U.S. military. As Commander in Chief, he can authorize the use of troops overseas without declaring war. To declare war officially, though, he must get the approval of the Congress.

The President's administrative duties include appointing the heads of each Executive Branch department. Of course, these appointments are subject to the approval of the Senate. The President also has the power to request the written opinion of the head of each Executive Branch department, regarding any subject relating to their department."

Hmmm…. well, maybe it isn’t so important who the president is. It seems from this job description AND the Constitution, they can’t do much without Congressional approval. The President can do treaties ONLY if the Senate approves, declare war ONLY if Congress approves, appoint heads ONLY if the Senate approves, and is able to ask for opinions… WOW… sounds exciting.

So, unsatisfied with these seemingly vague and noncommittal requirements, I Googled it. I have to admit, I did not find much more. This is basically what we got guys:

Job Description U.S. President
Minimum Requirements:
Must be at least 35 years old
Must be a Citizen of the United States
Must have lived in the United States for at least 14 years

Term of Employment:
4 years, with the possibility of a second 4 years

Salary:
$400,000 plus
$ 50,000 expenses
$ 40,000 transportation
Free room and board

Job Responsibilities:
Choose cabinet members (Hire your staff)
Command the armed services (ONLY if Congress approves)
Meet with leaders of foreign countries (Just say hi, have tea, coffee – SCHMOOZE)
Make treaties with foreign countries (ONLY if Congress approves)
Appoint judges and ambassadors (But your staff will tell you want to do on this one)
Propose new laws (ONLY if Congress approves)
Sign bills into law and veto bills (These will come from Congress so unless you want to piss a lot of people off – you won’t be vetoing much)
Pardon criminals (This is the ONE thing you DON’T need approval for! Keep in mind it is to keep mob and corruption alive and well in the US)
Report to Congress once a year "from time to time" ...or here and there… now and again… whenever…

Does this seem off to anyone else? I think MY job description is more demanding. Huh, well – maybe I’m not so worried about Palin becoming vice president anymore.

Wanted: The Perfect Man

2008-10-19T13:50:00.000-07:00

I had another blog topic planned for my next post. But this one was too good not to share. One of my best friends recently went through a surprise break up (it was a surprise to her). So, for therapy, we got together for some good Greek food paired with lovely Italian wine.

We proceeded to create an advertisement for her next boyfriend. This advertisement turned out to be quite an extensive list of qualifications. We spent about an hour compiling the list and I have to say I am quite proud of it.

Not only am I proud of it, I am thrilled by it. Why? Because I have a man in my life that fits every single qualification. ROCK ON.

Ok so, guys - pay attention. Women - feel free to add to the list.

Man Wanted - See qualifications below:

Loves my quirkiness.
Loves my independence.
Loves a strong woman.
Will stand up to me.
Must be educated.
Must be DRIVEN.
Likes to have fun i.e. not afraid to make a fool out of himself.
STD Free.
Wants to be in love.
Good sense of humor.
Willing to try anything once.
Loves intimacy and sex.
Loves my friends.
Family oriented.
Able to be a social butterfly.
Well mannered and adaptable to any social situation.
Respects my family.
Independent.
No bad current addictions.
Advanced degree,
Secure financially.
Will treat me like a princess.
Understanding and flexible.
A happy person without depressive tendencies.
Loves me for me.
Not sexually deviant.
Embraces my idiosyncrasies.
Wants to massage me and goes out of his way to make me happy.
Loves to spoil me.
Keeps up with my energy.
Not intimidated by PDA.
Loves to dance! Worldly.
Loves to learn and is not afraid to learn from me.
Is not intimidated by my drive and encourages me to better myself.
Is my best friend.
Will take care of me when I am sick.
Will feed me bon bons.
Will not judge me.
Will not walk all over me and finds it morally reprehensible.
Good gift giver.
Creative.
Loves to read and write.
Likes Sushi.
Thinks I am the smartest and most beautiful woman in the world.
Enjoys being faithful and would not have it any other way.
Takes care of himself.
Does not care too much about what other people think.
We know how to toot each others horns and LIKE doing it.
HONEST.
Tidy and responsible.
Wants to make a home.
Is not obsessed with sports.
Straight not gay in any way shape or form.
Open and willing to share.
Willing to give and willing to take.
Loves nature and outdoor activities.
Respects women.
Will enjoy wooing me and not be intimidated.
Respect his parents and family.
Likes to hold my hand.
Loves traveling.
Despises ignorance.
Loves animals.
Energetic strength.
Not violent.
Polite.
Articulate.
Walks well.
Able to listen to George Michael.
Loves music.
Drinks wine and knows about it.
Loves fine dining.
Appreciates the finer things in life.
Wants a partner who is an equal yet.
Always up for a challenge.
Athletic.
Smells good.
Masculine not a pretty boy.
Image conscious but not obsessive.
No propensity for obesity.
Well endowed.
Light skinned.
Strong hands bigger than mine.
Nice straight nose not big.
Beautiful skin.
Nice chest butt and back and legs broad shoulders.
Phenomenal kisser.

Recent Trashy Read

2008-10-14T14:54:00.000-07:00

So, I just finished a week and a half of traveling and when I spend so much time on planes, I tend to read fiction because it passes the time quicker for me than non-fiction. I picked up a book, by chance, called Fourth Comings. It is described on Amazon as:

“Acerbic heroine Jessica Darling is faced with the post-college conundrum—what now?—in McCafferty's fourth (following Sloppy Firsts, Second Helpings and Charmed Thirds). Her answer is to finally break it off with her on-again, off-again boyfriend, Marcus Flutie, who, after cleaning up his drug habit, studying Buddhism and spending some time in Death Valley, is now at Princeton. But before she can break up with him, he pops the question, and she mulls her response for a week.”

Yeah, I know what you are thinking…it sounds just trashy enough to want to read.

That’s what I thought too. It was out of the realm of my normal reading genre and they always say to reach outside your normal tastes in order to expand your thinking. Ok, I REALLY didn’t think that I was expanding my thinking – I knew I was buying a trashy simple book – but that was how I rationalized the $13.95 purchase at the time.

Turns out, it actually was not only a decently entertaining book, but an insight on the Millennial Generation. The gal that wrote this book, Megan McCafferty without a doubt believes that she is quite clever. Not a page goes by without some snarky, yet trendy comparison that demonstrates not only her vocabulary prowess, but also her pop culture knowledge (she is in the KNOW). One of my favorite examples is here:

“It took me several minutes to wend my way through the throng, many of whom were predictably dressed in head-to-toe black. Others – like the Wiggity-Wack Retro-Wigger with his blond Gumby, patchwork Heathcliff Huxtable sweater, and thick dookie rope chains, or Little Miss Indian in her beaded moccasins, red, white, and blue feathered headdress, and pink Pocahontas nightshirt from the Disney Store – presumably saw themselves as 24/7 performance artists whose incontestably retarded fashions put the Care. Okay? and F*%&yomomma crowds to shame, and could inspire even Dexy to pledge evangelical devotion to the Gap.”

(It’s worth mentioning here that “Care. Okay?” is the name of a nonprofit organization in the novel. No, I’m NOT kidding.)

Perhaps it’s been a while since I had read a trashy novel, but it was the first time I had seen IM and texting language in a novel. E-mails, blogs, and text messaging conversations were actually pasted in the book. I even learned a few expressions like OTB (only the best) and SAHMs (stay at home mom’s). While I was reading this book, I have to admit I felt “old.” I felt slightly out of reach of this generation’s thinking. The main character, Jessica, graduated high school in 2002 – I graduated high school in 1995 – so it surprised me how close, yet far away I felt from this generation.

I always tell my students that if MTV is older than you, you’re a Millennial. Its funny, when you call a Millennial, a Millennial – the get very upset and insist they are a Gen Y’er (as if that is somehow different).

If you were wondering the official breakdown – it goes like this (according to Wikipedia – which is as we all know – GOSPEL):

Lost Generation (1883–1900)
Greatest Generation (1901–1924)
Silent Generation (1925–1942)
Baby Boomer (1943–1960)
Generation X (1961–1981)
Generation Y (1982–2001) – AKA – Millennial (older than MTV which aired in 1981)
Generation Z (2001–)

Probably the one primary take away I had from this book was a glimpse into this new generations primal fear: a DECISION. Apparently, the abundance of decisions has debilitated the majority of this generation. Their fear of being WRONG is keeping them from doing anything at all. The over protectiveness of the Baby Boomer parenting style has created a generation of wimps. This is nothing new to most folks that pay attention to the generation gaps and trends – but it was completely validated in this book. The quote from the book is here (I’ve edited a bit for space); Jessica is talking with her mother in this scene:

“You say that you didn’t have as many choices back when you were my age,” I said. “Maybe that was a positive thing. I feel completely paralyzed by all the possibilities.”

I’m not crazy for feeling this way, you know. I’ve read several studies [suggesting] that more choices make people less happy [edited]…And yet, even with science and religion on my side, I was fully aware of how self-centered I sounded. But I was not sufficiently ashamed to shut up.

“By choosing one option, I’m closing myself off to all the others that might be even better. I’m afraid of making the wrong decision. I’m afraid that the mistakes I make now in my twenties will lead to decades of regrets.”

Reading this book was actually a great research tool. If I was marketing to this generation, this is the perfect window into how they think.

As frustrating as this generation may be to us detail-oriented, respectful, and well-written old folk, they are providing entrepreneurs with a huge window of opportunity. If you can offer something to this next generation that makes them feel:
- Safe
- Flexible
- Non-committal
- Confident
- Lazy

…you may find yourself with a multi-millennial…er… multi-million dollar business.

Sales vs. Marketing

2008-10-10T15:39:00.000-07:00

In a previous blog, I brought up the point that most business students are not taught the difference between sales and marketing. Prior to writing this blog I scoped out the web for other viewpoints. Apparently, understanding the difference is quite a widespread problem. There are a surprisingly high number of articles on the distinction. I have pasted two disturbing ones here.

The first comes from a blog written by a consultant of some kind. He explains:

"Marketing is figuring out what the customer needs / is going to need / latent need etc, and finding a way to satisfy the need and make a profit doing it, while Sales, a function within marketing, is responsible for managing the customer interface and making sure it's easy for the customer to get the product/service and pay for it."
http://saktishree.blogspot.com

I can think of many instances where the sales process is highly dependent on customer needs. Think of a car salesman as an example. In this context, I am pretty sure that this explanation does not apply. In fact, the last time I bought a car, I don’t remember the salesman making it easy at ALL!

Completely disgusted with my initial web search, I went to a couple of more “official“ sites that advised businesses and gave tips to a wider audience. This is what they had to say:

"Selling is one activity of the entire marketing process.

In a marketing approach, more listening to and eventual accommodation of the target market occurs. Two-way communication (sometimes between a salesperson and a customer) is emphasized in marketing so learning can take place and product offerings can be improved.

A salesperson using the sales concept, on the other hand, sometimes has the ability to individualize components of a sale, but the emphasis is ordinarily upon helping the customer determine if they want the product, or a variation on it, that is already being offered by the company. In the sales approach, not much time is spent learning what the customer's ideal product would be because the salesperson has little say in seeing that their company's product is modified. Furthermore, they aren't rewarded for spending time listening to the customer's desires unless they have a product to match their desires that will result in a sale."
http://www.smallbusinessnotes.com/

Again, I do not think that this is best or most accurate description of the difference. It is quite limiting actually. There are many instances (I find myself going back to the car salesman example) where the salesperson is rewarded for listening to a customer’s needs. Even though they do not control the design – they can recommend and, in some cases, custom design the option package the product or service offers. In fact, everyone in a company should always be concerned with company needs. And actually, while I’m at it – if a salesperson cannot communicate customer feedback and impact the company’s product or service, they shouldn’t be in business.

The best way I know to explain the difference between sales and marketing is that one simply leads to the other. Guess the direction!

There is a reason that salespeople, in particular, get a bad rap – BAD MARKETING.

If your marketing is not well formulated, you will have customers walking in that are not in your target market and more than likely will WASTE your time. See, most of the time, when a salesperson annoys you, it is because you either don’t want to buy or you haven’t made up your mind to buy (ok, sometimes salespeople really ARE just annoying). If you find yourself in this situation, more than likely, the marketing was not done as well as it could have been.

This is where the concept of the niche comes in to play. You want to communicate a specific message to specific demographic that can resonate with what you have to offer them.

As you design your marketing, you want your message to weed out the roses in the garden for you. In other words, you want your marketing to bring pre-interested and pre-qualified customers to YOU. Good marketing will tell your potential customer everything they need to know in order to make the decision if they have a tendency toward a transaction with your product or service.

So what is in good marketing you ask? Benefits! (NOT features!)

The other thing you want your marketing to do is you want them to communicate benefits of what you have to offer, not necessarily the features. The marketing woos them with the benefits; the sales process woos them with the features. The sales process can be thought of as the translation process of benefits to features.

I talked to a close colleague of mine who is writing a book on this topic, shared a few insights with me he is including it:

“Marketing, with its various techniques and tactics, actually boils down to the communication between the producer and the consumer. Its goal is to filter and find those customers that value your product or services’ benefits. Sales acts as the closer. Remember that people are attracted to features. The sales process take features and translates them into so that the consumer wants to buy. Sales and marketing are not seperable, they are intertwined and their job is to complete transactions. So marketing finds and sorts transactions – sales closes them.”

So think of Marketing as POINT A and Sales as POINT B and Closing as POINT C – get from Point A to Point C. Contextualize you marketing and selling strategies in this fashion and you may find yourself with pleasing results.

Register to Vote

2008-10-07T18:34:00.000-07:00

Halloween is coming – but this is REALLY scary…

2008-10-01T12:38:00.000-07:00

A colleague of mine and I received two very similar e-mails the last week and I thought they were worth sharing. They serve as a scary reality check about this new generation joining the professional world.

Let me preface these e-mails by explaining that this colleague of mine and I receive e-mails like this from students at least once a week. Generally the students are writing about something like:

Can you help me with my business idea?
How do I write a business plan?
How can I get in front of an investor?
Can you introduce me to someone in the industry?
I need a job or want some experience, can you help me?

Here is the first one that went to my colleague (who is a product inventor and professor). The only thing I changed were the names to de-identify it – I SWEAR – NOTHING ELSE!

Subject: new product idea

my name is %%%%% and I am a senior here a %%%. i have heard you speak before in an enturpenurship class took. to tell you the truth that always what i wanted to go into but me and math don't get alone to well. but besides that fact... when you talked to my class you told us about the products you invented... dungaruee (sp) and baked chips. now i have a product that no one has on the market... trust me ive check as many sources as i couldnt find it anywhere. im just asking for a short meeting to tell you my idea and maybe give me some tips letting you in on the product etc..

PHONE NUMBER
E-MAIL

looking forward to you expertise,

%%%%%%

Here is the one I got in my own inbox. I would like to reiterate that I did not change anything other than the name:

Subject: uva

Hello miss Post,

It was a pleasure meeting you at the uva event you were
the second person that actually took time to step out
there boundary and network. Oh Are you going to opening
game and PHASE 1 stadium opener? if so i guess i'll see
u there. I was thinking you all should partner or work
with the SBA.

Oh here is a link to your real pasiion in life... it was forwarded to
afrind of mine on facebook. when i saw it i remembered our conversation
vividly.

http://www.koaa.com/aaaaaa_pets_news/x815232684/Dog-nursing-tiger-cubs-a-miracle-zoo-owner-says

Folks, I kid you not – these are REAL e-mails copied and pasted. Maybe we should throw theory out of the curriculum and just work on communication skills. Critical thinking seems to be WAY to much to expect from college students these days. And don't try to use the argument that these students might have English as a second language - the first e-mail was from a white college student from the Northeast and the second e-mail was from a student that I spoke to and English was his first language.

Oh! By the way, as a follow up from my previous post. The student who asked for my help with her business plan sent me this e-mail as a reply to my reply:

Colleen,

When would be a good time for you to meet up to discuss the business plan?

Sincerely,

Jane Doe

Maybe I’m mean, but I wrote:

Afternoon is typically the best time.
Colleen

Ok, so I guess in THEORY – time could mean date AND time. I have to admit I was turned off by the laziness of her e-mail. There was not a single thank you for meeting with me or thank you for your time. She didn't even say she was looking forward to the meeting. I am volunteering my time to help her; I don’t expect a red carpet, but at least “Thanks!” at the end at least?

I almost wrote back:

1 p.m.

How to ask for help…and maybe actually get it.

2008-09-25T12:56:00.000-07:00

I am going to digress from the theory discussion slightly and share with you an e-mail that came into my inbox yesterday. Being in the academic realm, students often come to me with questions, request for assistance, or other related things. This one came from a doe-eyed sophomore who wandered into my office a few weeks ago and is now sending the follow up e-mail:

“Ms. Colleen Post,

Thank you for taking the time to meet with me a few weeks ago. I apologize for not having more concrete ideas ready at that time. However, after thinking about this for some time, I would like to know if you could help me set up a business plan assignment for next semester. Jane Doe, gave me an old business plan that was used with an class, and I heard that John Doe consulted you on this as well. I would like to tweak the business plan with your help and perfect a task for the class next semester. Can you help me with this? Thank you.”

You know what my answer was?

“Sure, happy to help.”

That’s all I wrote. Still haven’t heard anything back from her. And yep, that pretty much ended the dialogue for me.

Allow me to explain my frustration. Nowhere in this entire e-mail does she suggest anything specifically for me to actually do. She wants me to come up with a game plan to volunteer my time to help her with something she clearly knows nothing about. I’m sure that she thought her e-mail was well written and professional, but the reality is she STILL did not show any thought process on her part (even though she has been “thinking about this for some time”). Initially when she first came into my office, she had asked me to come speak to her class. So I asked her what she wanted me to speak about. Bambi rears his ugly head again – it was as though I asked her to explain quantum physics.

So – lesson here is simply. If you are asking someone for their help, it may help you close the deal by following these simple steps prior to sending any communication:

1. Research the person you are reaching out to. A simply 5-10 minute Google search works wonders. This will give you not only ideas for how this person might be able to help you, but also ways to lure them in. If they are an avid golfer, for example, you can find a way to mention how much you love plaid shorts and white cleets. I once Googled a person I had a meeting with and found out she was from a town just outside where my mother grew up. You better believe I found a way to bring this up in conversation. Connecting with people takes effort and research on YOUR part – not theirs.

2. Develop at least two different ways the person can help you with your task. This shows that you A: know what you don’t know and B: know what you need to know and C: know how this person might be able to help you convert A into B.

3. Finally, make sure that the person’s initial step to help you is an EASY one. That first ‘yes’ is the hardest one to get to – so make sure it takes very little time and resources on their part to say that magical 3-letter word.

The perfect example to demonstrate this is the request for a letter of recommendation. I get this one a lot.

When you send a request asking someone to write a letter of recommendation on your behalf, let them know that you would happily provide them with pre-written draft that they would simply have to edit, sign, and return to you.

Think about it - if someone wanted you to write a letter about how wonderful they are; would you do it if you didn’t know them that well? Probably not. However, if someone sent you a draft of a letter – you may be more inclined to simply edit and return it.

The other bonus is that you know you will get exactly what you need in your letter. Quite often graduate schools will ask for letters of recommendation demonstrating a specific trait in a person. For instance, a law school may want to know you are extremely detail oriented and somewhat of a perfectionist. The only way to ensure that gets in that letter is if you PUT it in there. It’s a win-win for all of us.

Happy help hunting!

Theory, theory, theory… blah, blah, blah – not so fast. (Part 1)

2008-09-16T14:15:00.000-07:00

It’s true what they say – you never know what is going to get brain juices flowing. The previously posted blog prompted a few interesting, eloquent and thought provoking comments. Please check them out if you haven’t already:
https://www.blogger.com/comment.g?blogID=377154939981257077&postID=3587072961622985611

So, I decided to take this topic one step further and conduct an informal survey within some of the academic chat groups I subscribe to and asked their thoughts. (Imagine that – asking other people’s opinion on a question I want some perspective on. Millennials – pay attention here.)

I put it out there like this:

We all know that professors need to understand theory - but why do they need to understand it? Does it help them teach? Does it help them research?
Do students need to understand theory in order to learn the material?
Do students only need to understand the application of the theory and learn the theory if they are interested?

Admittedly, the wording of the question was perhaps a bit too direct and I got a nasty e-mail from a peeved Swede who stated:

“As a European I almost become offended by your questions. Theory helps teachers to teach, for instance by knowing how to teach (learning theories anyone?), it is also close to impossible to publish good research without a clear grasp of theory.”

Guess the European professors are the only professors who are experts on theory? That’s why he is offended as a European? As opposed to…what exactly? Ah academics – gotta love it. I think the IQ level of my blog just dropped 20 points merely by pasting that quote in here.

But in all seriousness, an interesting phrase kept popping up when professors (those that were not offended as Europeans) talked about the disconnect between theory and practice:

CRITICAL THINKING

And the majority of those who wrote to me about this issue heavily supported the view that a focus on critical thinking skills is lacking in the classroom today. One of the most talented critical thinkers I know, Bob Hacker (http://sophisticatedfinance.typepad.com/) explained it as fishing. While one can teach someone to fish in a river by example – but only with the combination of teaching fishing by example in the river COMBINED with the theory of fishing will they be able to fish in the ocean or in a lake regardless of whether they have actually done it before.

It kind of goes like this:

EXPERIENTIAL LEARNING + THEORY = CRITICAL THINKING

Along with the critical thinking comments, I also heard a lot of complaints about how students simply do not want to learn theory – its boring, hard to grasp, and takes more effort to teach.

Here’s another comment from our peeved Swede:

“Students rarely like to learn theory though, and therefore some universities vote in favor of populism and teach with song and dance only. For good course evaluations, this can sometimes be as successful.”

But I tend to believe that it is not the students that are lacking in their interest in theory, but the professor’s ability and enthusiasm for showing the value of theory. This comment, in particular, was one of my favorites:

“Critical thinking is something that can be taught--but it is hard to do. It takes more preparation and is opens up classroom discussion to more negotiation over strategy and interpretation. It also asks more of the students in the classroom as well. So students are resistant to both making any extra effort and to taking risks in the classroom – especially when grades are on the line.”

Taking the issue of critical thinking one step further, there was also an argument that critical thinking is not enough:

“I have known many excellent critical thinkers who could not manage themselves out of a paper bag. They could analyze and analyze but never be effective leaders or managers.”

Perhaps, critical thinking, in order to be valuable, needs practicality to it. Perhaps the formula should look more like this:

EXPERIENTIAL LEARNING + THEORY = CRITICAL THINKING + PRACTICAL SKILLS

Perhaps this is the balance to be sought after. I am sure there are many educational theories related to this somehow – and if anyone would like to share a good base to read from, I would welcome the suggestion. But then that begs the question – I am currently working toward my doctorate degree and no one has asked me to be familiar with teaching methods, educational theories, or anything along these lines…

More on this to come…

Where B-Schools are Failing

2008-09-11T08:47:00.000-07:00

I run workshops on how to write business plans and will occasionally teach a college course or two in that subject as well. We will normally address issues such as marketing, finance, operations, opportunity, concept development, management, and a variety of other business-related topics.

It was in this environment that I initially realized the huge disconnect between what business schools were teaching and what professionals (more specifically entrepreneurial types) need to know. I found myself doing a lot of remedial education – teaching (or giving the b-school professors the benefit of the doubt – RE-teaching) what a market is, how to read a cash flow statement, what the different types of corporations are, etc.

Granted, as an MBA graduate myself I do recall sitting in my marketing management class saying to myself “when would we EVER use this?” I also said that to myself in my operations management class, managerial economics class, corporate simulation class, organizational behavior class, corporate strategy class…in fact, I don’t really remember ANY class I didn’t say that to myself in. AH, no – a few exceptions were my business law, entrepreneurship, business plan development, and sales strategies. (And the last three were actually ELECTIVES.)

But I digress. Allow me to get back to the disconnects between what students are taught and what they should know:

- Students are taught how to read financial statements published by Fortune 500 companies. However, they are NEVER taught how to CREATE a financial statement. As a result, even accounting majors cannot build any kind of pro-forma financial statement – such as a small business’s projected cash flow for the next year.

- Students are taught how to take data from a marketing research firm, apply formulas, and come up with a projected target market share. They are NEVER taught how to go out and GET your own market research (i.e. focus groups, interviews, marketplace observation). And heaven forbid you ask a business student to tell you what the market results MEAN. (Actually, its kind of fun to ask them this and see the “Bambi in headlights” reaction).

- Students are taught how analyze the size of a market based on case study information that is already provided to them. They are given information to plug in a formula like the one below:

Market size = number of buyers in the market
X 
quantity purchased by an average buyer in the market per year
X
price of an average unit

Boom! That’s it! You have your market size! The students are GIVEN the answers to plug in. I was stunned when I told my first business plan development to go find out how many customers they thought they could have for their product or service – they literally asked: “Well, what numbers do we use?”

- Students are never taught sales. There are surprisingly very few respected universities offering courses in sales – let alone degrees in sales. Most of the courses that are in sales are graduate level. I don’t know about the type of job YOU got right out of college, but most of the fresh bachelor degree laden students are offered SALES JOBS.

- Along the same vein, students are also never taught the difference between advertising, marketing, sales, and public relations. In fact, most students think they are all the same thing.

As my blogging continues, I will touch upon each of these in further detail. For now, I will simply say that the future track of business schools in America are leading students down a road that gives them no practical skills, no critical thinking tools, no concept of real world business, and a false sense of security that THE RIGHT ANSWER to any problem is in out there somewhere in a $135 thirteenth edition textbook written by the professors teaching these students.

Hi, its my blog - read it.

2008-09-04T10:46:00.000-07:00

I love my friends dearly. I adore many of the folks I have business relationships with. I truly care about what these individuals think, feel, and desire. I am one of those people who are quite selective about the people in my life. Admittedly, I also have high quality control standards. So, like anyone else who cares about anyone else, when I get a call from someone I care about - I want to know what is going on. And if you know me well, you know I am busy and that I may not be able to answer the call when it rings.

Ok, I'll just share with you a message I got yesterday:

"Hi Colleen, its me. Call me."

I will admit, I knew who it was from the voice - but I hadn't heard from this person for over 3 months! Her voice was very stern and I immediately thought something was wrong. I called her back within 20 minutes (which was as soon as I had a chance to hear the message). I still have not heard back from her.

Needless to say, this frustrated me to no end.

For those of you who may have been living in isolation in somwhere like Zaraysk, Russia and are not aware of female tendencies - we obsess - a LOT. I started wondering about the health of her baby, the status of her marriage, her health, and a bazillion other crises that she could be facing right now.

Now, I know her pretty well and as I calmed down and started to look at this realistically within its context, she was probably calling to see if I was planning to go to any Miami Dolphins football games this season.

This led me to an old tip list I uncovered a few years ago on how to leave a good voice message. Although it was written for business purposes, I've realized it has the same application to personal phone calls as well. (That is, if you LIKE the person you are calling and want them to enjoy your message.)

1. Say your name. Imagine if you get a message from someone and you don't know who they are until the very end of the message. Take the pressure off at the very beginning.

2. Say your number right after your name. This one is huge for me - imagine if you missed the phone number that they say at the end of the message and then you have to listen to the entire message again to get it right.

3. Repeat your phone number. We are all guilty of saying our phone numbers way too fast - so say it again so the person has time to write it down.

4. State the purpose of your call. I am calling you because... Please tell me this at the beginning. It will help me get in the mindset of what I am about to hear.

5. Be brief. There IS an exception to this rule. There are times when you have to leave a long message. An example may be you are about to get on a plane and you need to get information to this person while you'll be in flight. In these very rare cases - WARN the person on the front end: "Hi Jon, its Jill. My number is 305-555-5678, that's 305-555-5678. I am calling because I have to give you a set of instructions for feeding my dog. This message may be quite long..." See? Now I can immediately choose to continue listening or save the message when I need those instructions.

6. Leave a specific request. This may be more applicable in business situations when you have tasks to accomplish. What do you need this person to do for you? Send you some information? (tell them the info you need!) Set up an appointment? (tell them when you want it!) HELP THEM HELP YOU!!!

7. Consider leaving your e-mail address. In our new digital age, people have become terrified of actually communicating with each other in a live venue. Be nice to our socially challenged millenial counterparts and let them e-mail you back their answer.

8. End your message with a funny joke. Ok, so probably not - but I DID have this one guy at work who would always end his voice messages with jokes. But I have to admit, I always listened to the entire message!!!

So now my friends, I hope you get the reason for the title of my blog. Hmm... but maybe now no one will read this....

And now for my joke (ok, its not my joke - it came from my DC/VA buddy):

How do you get a Kleenex to dance?

....put a little boogey in it!

Ludacris vs. Obama

2008-07-31T12:51:00.000-07:00

The hot news this week is Ludacris's new song "Politics as Usual." In typical "Luda" fashion, it is brash, loud, and angry while still thought provoking and produced with decent quality. He has created a song (and perhaps a new movement) supporting the Obama campaign and announcing the first U.S. black president has arrived, all while slamming McCain.

This will be a very interesting notch in the belt of social history from an anthropological and sociological perspective. I highly encourage graduate students to begin documenting this as it unfolds. This is the tip of the iceberg.

For those not yet familiar with the issue, you can check out some of the latest stories here:
Obama slams Ludacris rap lyrics BBC News
Ludacris 'Should Be Ashamed' Of Lyrics Bashing Bush And McCain ... MTV.com
Ludacris' Rap Raises Ruffled Response ShortNews.com

The reactions that follow suit from the different social groups are, by and large, still fairly predictable. Obama's camp will likely be furious because what Ludacris has essentially done with this song is remind everyone in America that he is black. And in the ignorant mind's eye, because he is black, he can then be associated with thugs.

This is unfortunate for the Obama camp because Obama had clearly and successfully made it to "Tiger Woods" status. Stereotypical white America has accepted Tiger as an adopted son that they admire, envy, and accept although they still make fun of behind closed doors. I've seen it happen first hand at cocktail parties in middle-class white American kitchens. In public settings, white suburbans will love and respect Tiger, you get a bunch of them in a room of their "own kind" and you'll hear quite a different story. But so far, that's as good as we seem to have gotten in America. And Obama had just about reached that promise land. He was about to be adopted.

I personally admire Ludacris as an artist - he is one of the few actually out there with a social message and some intelligence behind that social message. Similar to Rage Against the Machine a few years back. But Ludacris, in his effort to bring a desire to vote to the masses of popular culture, he may have pushed the swing voters back to McCain's camp. I mean, how many white suburbanites want to vote for a thug? Take it a step further - how many white suburbanites want to vote for someone who is even associated with a thug? Its a numbers game now...

He Said, She Said - Do the right thing

2008-07-24T07:25:00.000-07:00

Last night one of our student entrepreneurship teams met with a self selected group of mentors (myself included). This group's mission is to help this student business prove their concept in order to attract investments. It was a wonderful meeting and everyone there was donating their time to be there - NO EQUITY NECESSARY!!! WOW!

The meeting last night went surprisingly well - better than most I have attended. We started at 5 p.m. and went until 9 p.m. without breaks! On the drive home, I realized WHY the meeting went so well. Somehow, this group intuitively knew that as we started to develop and frame ideas - the credit of WHO came up with the idea or suggestion was tracked continually. Here are some examples to demonstrate this:

"Yes, I think that may work, but if we add Ed's idea of a touch screen, I think then we'd really have something!"

"I'd like to actually go back a bit and talk about Ana's point on the technology interface..."

"Well, I also remember Howard's valid concern about the IP issue. I think if we take that into consideration when we are developing..."

"I agree with that completely, I think Colleen's suggestion of creating levels of service is absolutely necessary..."

Ed's idea... Ana's point... Howard's valid concern... Colleen's suggestion...

Through the night, the tracking system of WHO said WHAT was continuous. Everyone felt like they were being listened to and credited with their contribution. What was the result? Everyone wanted to contribute and in return, credit other contributions!

I was chatting about this phenomenon with one of my corporate veteran friends and he said that in large meetings, they always tried to make that a practice - but it was a FORCED practice, so it didn't work that well.

I think the reason ours worked so well last night, is it developed organically - rather than being superficially imposed upon the group. And it all started with one person crediting someone one else. Go ahead, you know you want to...

Jeeze! What happened to writing skills?

2008-07-21T17:14:00.000-07:00

So, I'm a bit of a cynic - I can admit to my faults (or in some cases I suppose is a plus). However, I am ultimately frustrated with the university methods of teaching students to write. I am an adjunct professor and I teach business plan development and I am constantly having to "un-teach" what these college students have learned.

My first and most troublesome complaint is about how universities teach their students to write. The main problem is the PAGE MINIMUM associated with assignments. How many of us have completed an essay assignment and sighed in satisfaction at your work. Then you look at the instructions and see there is a 10 page minimum. You refer back to your own work and realize you are only at 8 pages. SO YOU HAVE TO WRITE MORE THAN YOU FEEL IS NECESSARY TO GET YOUR POINT ACROSS.

You end up futzing with margins, fonts (courier new is the best!), font size, and paragraph structure all in an effort to make it seem like you've WRITTEN MORE.

How wonderful would it be if our youth were learning how to communicate with LESS? Efficient, effective, and succinct writing skills are seriously lacking in most professionals today.

When I give my assignments, students are often terrified. Why? Because I will give them a 5 page MAXIMUM. If you can't tell me what you need to tell me in 5 pages, you don't know it that well.