Crawl before you walk. Do not bite off more than you can chew. Do not feed a baby steak.
These are all old wise tales which are very true in every sense of the word. This is especially true for business owners and entrepreneurs. Those people who try to start too fast or go after something too big too quickly, usually fail. We all have to start somewhere, but I suggest start at the beginning. Worse than not starting at the beginning is not starting at all. Too many people talk the talk but never back it up by walking the walk.
I suggest to you, just don’t talk but find a way to start. Start small, but start. It is better to have ten small failures before success, than one large failure and never try again. Most entrepreneurs have failed multiple times before achieving success.
Failure is only failure when we quit. If you are going to make mistakes, make them small failures, learn from them and then try again but just take a different route.
Wednesday, December 28, 2011
Saturday, December 17, 2011
Franchisors at or near Bankruptcy
Here is a list of franchisors that have filed bankruptcy, or are reported close to filing bankruptcy. Notice how many of them are food related. In my opinion it would be a smart move to NOT open a food related business (with a few exceptions). There seems to be more safety in non food related type businesses. It is reported franchising in general has a 75% success rate by end of year five. Food related will probably be much lower.
Anyway here is the list of those franchisors at or near Bankruptcy.
• Perkins
• Marie Callender’s
• Giordano’s
• Friendly’s
• Souper Salad
• Dippin’ Dots
• Sbarro
• The Little Gym
• Fatburger (Fatburger parent company not part of bankruptcy
• Mrs. Fields/ TCBY
Anyway here is the list of those franchisors at or near Bankruptcy.
• Perkins
• Marie Callender’s
• Giordano’s
• Friendly’s
• Souper Salad
• Dippin’ Dots
• Sbarro
• The Little Gym
• Fatburger (Fatburger parent company not part of bankruptcy
• Mrs. Fields/ TCBY
Monday, December 12, 2011
Elevator Pitch
What is an elevator pitch? In 20 seconds or less it is explaining what you do for a living. It is hopefully interesting enough where the person you are giving it to will be intrigued and will ask you for your business card.
Successful entrepreneurs try to give their elevator pitch twice a day. It is best done face to face but over the phone can also be successful. This means most good business owners will need to be talking with a few new potential clients every day. A good way to start a conversation, which can lead to an elevator pitch, is to ask others what they do for a living. Generally they will ask you the same question.
Be prepared by always having a couple business cards with you.
Good successful business owners will market themselves or their companies 1 to 2 hours every day. If you are not talking with customers, clients or people on a daily basis you need to get out of your comfort zone and do it. Remember 2 elevator pitches a day will keep the doctor away.
Successful entrepreneurs try to give their elevator pitch twice a day. It is best done face to face but over the phone can also be successful. This means most good business owners will need to be talking with a few new potential clients every day. A good way to start a conversation, which can lead to an elevator pitch, is to ask others what they do for a living. Generally they will ask you the same question.
Be prepared by always having a couple business cards with you.
Good successful business owners will market themselves or their companies 1 to 2 hours every day. If you are not talking with customers, clients or people on a daily basis you need to get out of your comfort zone and do it. Remember 2 elevator pitches a day will keep the doctor away.
Wednesday, November 30, 2011
Social Media
Recently I bought a book called, Facebook Marketing for Dummies. Yes, I am a dummy when it comes to electronic media and many other things.
I have realized our world is changing and the way we market our businesses is changing every day. If we are going to have a successful business, we must adapt. With the invent of social media like Facebook, Twitter, Linkin, Blogs, Google, web sites, I Pads, smart phones and every other new method to get your word out about your company or product, it is important we stay on top of these new marketing instruments.
These tools are increasingly becoming a part of society and for us to reach new customers we either die or make them part of our businesses. Every major brand and company is now using these new marketing methods.
There is only one way to get involved with the electronic age and that is to get in and do it. Like Nike says, “Just Do It!” Read, take classes, search the internet, ask questions and start using the new, helpful marketing knowledge you have at your finger tips.
If you really want to be a business owner and an entrepreneur, forget the old ways to market and change with the times. If you do it right, you can be an overnight success story.
If you want to stay with the old world, you might as well prepare for an early retirement for that is where you might end up sooner than you want to be.
I have realized our world is changing and the way we market our businesses is changing every day. If we are going to have a successful business, we must adapt. With the invent of social media like Facebook, Twitter, Linkin, Blogs, Google, web sites, I Pads, smart phones and every other new method to get your word out about your company or product, it is important we stay on top of these new marketing instruments.
These tools are increasingly becoming a part of society and for us to reach new customers we either die or make them part of our businesses. Every major brand and company is now using these new marketing methods.
There is only one way to get involved with the electronic age and that is to get in and do it. Like Nike says, “Just Do It!” Read, take classes, search the internet, ask questions and start using the new, helpful marketing knowledge you have at your finger tips.
If you really want to be a business owner and an entrepreneur, forget the old ways to market and change with the times. If you do it right, you can be an overnight success story.
If you want to stay with the old world, you might as well prepare for an early retirement for that is where you might end up sooner than you want to be.
Monday, November 21, 2011
Listen to the Billionaires
Get advice from Billionaires on how to become rich. Don’t listen to the college professor making 75k a year, the attorney making 150k or the banker making 100k. Why listen to someone who has never ventured out of their comfort zone. Listen to someone who has been there and done it.
Click here to hear from some billionaires: http://youtu.be/r18WHQX2VWM
Have a great Thanksgiving!
Click here to hear from some billionaires: http://youtu.be/r18WHQX2VWM
Have a great Thanksgiving!
Tuesday, November 15, 2011
Going Nowhere!
Shortly after beginning a journey, Alice reaches a fork in the road and asks the Cheshire Cat:
“Would you tell me, please, which way I ought to go from here?” “That depends a good deal on where you want to go,” said the Cat. “I don’t much care where,” said Alice. “Then…it doesn’t matter which way you go…” said the Cat. “….so long as I get SOMEWHERE.” Alice quickly added as an explanation.
“Oh, you’re sure to do that.” said the Cat. “If you only walk long enough.”
- Lewis Carroll (Alice In Wonderland)
If you do not know where you want to go, it doesn’t matter which direction you need to take, you’ll get to nowhere too late..
We should all decide where we want to be in life, otherwise we will wonder around aimlessly. Set your goals, spiritually, physically, educationally, financially and then when you come to the fork in the road you will know which path to take.
Entrepreneurs are goal setters and are doers, not talkers.
“Would you tell me, please, which way I ought to go from here?” “That depends a good deal on where you want to go,” said the Cat. “I don’t much care where,” said Alice. “Then…it doesn’t matter which way you go…” said the Cat. “….so long as I get SOMEWHERE.” Alice quickly added as an explanation.
“Oh, you’re sure to do that.” said the Cat. “If you only walk long enough.”
- Lewis Carroll (Alice In Wonderland)
If you do not know where you want to go, it doesn’t matter which direction you need to take, you’ll get to nowhere too late..
We should all decide where we want to be in life, otherwise we will wonder around aimlessly. Set your goals, spiritually, physically, educationally, financially and then when you come to the fork in the road you will know which path to take.
Entrepreneurs are goal setters and are doers, not talkers.
Sunday, November 6, 2011
Get good Advice
Good ADVICE can save you time and money and poor advice can kill a good idea before it even begins. Be careful to whom you listen and from whom you seek advice.
This is America. Every one of us bright-eyed, individualistic, intelligent, proud Americans have one common trait, i.e., “We believe we know everything”. Myself included, just ask me!
Too often, candidates take advice from well-intended individuals who know nothing about the business you might be investigating. Make sure the person to whom you listen knows what they are talking about.
The Bank President who gave me my SBA loan to start the Pro Image stated, “This is not going to work. You cannot sell enough hats to pay back this loan and expect me to take your house within a year or two.”
I did pay off the loan within 2 years.
Get advice from someone who has been there and done it. Don’t just take advice from any friend, brother, sister, parent, accountant, attorney or bank president, unless they have been there and done it themselves. If you want to become a millionaire, ask the self made millionaire.
I love the quote from Bill Gates for he sums it up very well how he achieved success. “We were young, but we had good advice and good ideas and lots of enthusiasm.”
This is America. Every one of us bright-eyed, individualistic, intelligent, proud Americans have one common trait, i.e., “We believe we know everything”. Myself included, just ask me!
Too often, candidates take advice from well-intended individuals who know nothing about the business you might be investigating. Make sure the person to whom you listen knows what they are talking about.
The Bank President who gave me my SBA loan to start the Pro Image stated, “This is not going to work. You cannot sell enough hats to pay back this loan and expect me to take your house within a year or two.”
I did pay off the loan within 2 years.
Get advice from someone who has been there and done it. Don’t just take advice from any friend, brother, sister, parent, accountant, attorney or bank president, unless they have been there and done it themselves. If you want to become a millionaire, ask the self made millionaire.
I love the quote from Bill Gates for he sums it up very well how he achieved success. “We were young, but we had good advice and good ideas and lots of enthusiasm.”
Monday, October 31, 2011
COURAGE
We will never get anywhere in life if we don't have the courage to make a move. Without courage to make a stand, venture out or to see what is on the other side of the fence, we will end up as a recluse. An entrepreneur has to have real courage.
Here are some of my favorite quotes about courage. See how they might apply to your own life.
Without courage, all other virtues lose their meaning.
- Winston Churchill
Success is never found. Failure is never fatal. Courage is the only thing.
- Winston Churchill
Courage is the greatest of all the virtues. Because if you haven't courage, you may not have an opportunity to use any of the others.
- Samuel Johnson
Nothing but courage can guide life.
- Vauvenargues
Why not go out on a limb? Isn't that where the fruit is?
- Frank Scully
In times of stress, be bold and valiant.
- Horace
It is the bold man who every time does best, at home or abroad.
- Homer
He who loses wealth loses much; he who loses a friend loses more; but he who loses his courage loses all.
- Miguel de Cervantes
True miracles are created by men when they use the courage and intelligence that God gave them.
- Jean Anouilh
It is a sad day when we are afraid to test the waters and freedom that awaits each of us if we will only try.
Here are some of my favorite quotes about courage. See how they might apply to your own life.
Without courage, all other virtues lose their meaning.
- Winston Churchill
Success is never found. Failure is never fatal. Courage is the only thing.
- Winston Churchill
Courage is the greatest of all the virtues. Because if you haven't courage, you may not have an opportunity to use any of the others.
- Samuel Johnson
Nothing but courage can guide life.
- Vauvenargues
Why not go out on a limb? Isn't that where the fruit is?
- Frank Scully
In times of stress, be bold and valiant.
- Horace
It is the bold man who every time does best, at home or abroad.
- Homer
He who loses wealth loses much; he who loses a friend loses more; but he who loses his courage loses all.
- Miguel de Cervantes
True miracles are created by men when they use the courage and intelligence that God gave them.
- Jean Anouilh
It is a sad day when we are afraid to test the waters and freedom that awaits each of us if we will only try.
Sunday, October 23, 2011
Dull Companies
Warren Buffet said: “Dull companies with steady earnings growth may not make for stimulating cocktail party chatter but over the long haul, they make the best investments.”
If too many people want to do the business, there is too much competition and no one makes much money!
I know a window cleaning franchisor has a franchisee making over 500k profit. It costs less than 100k to open one up. How good of a ROI would that be? Can you imagine becoming a millionaire cleaning windows? I can guarantee you the owner is NOT the one cleaning windows. Some might say anyone can wash window, but most don’t know how to grow big, market themselves or make much money. That is where the system makes a difference.
I know of a home and business restoration franchisor who has franchisee that paid something like 60k to open and now they have 40 trucks and have revues over 6 millions of dollars a year.
I know some carpet cleaning franchisees are making a few hundred thousand dollars a year.
If you want to start a business and want to be successful, find something DULL that few people are willing to do.
If too many people want to do the business, there is too much competition and no one makes much money!
I know a window cleaning franchisor has a franchisee making over 500k profit. It costs less than 100k to open one up. How good of a ROI would that be? Can you imagine becoming a millionaire cleaning windows? I can guarantee you the owner is NOT the one cleaning windows. Some might say anyone can wash window, but most don’t know how to grow big, market themselves or make much money. That is where the system makes a difference.
I know of a home and business restoration franchisor who has franchisee that paid something like 60k to open and now they have 40 trucks and have revues over 6 millions of dollars a year.
I know some carpet cleaning franchisees are making a few hundred thousand dollars a year.
If you want to start a business and want to be successful, find something DULL that few people are willing to do.
Saturday, October 15, 2011
An Entrepreneur was Born
As I reflect on my life, there were many life business experiences that helped mold me into the man I am today, most were good some were bad. Choices any of us make in our youth and as we grow older help define who we become.
When I was 6 or 7 my younger brother Randy would collect pop bottles from our neighbors and then sell them to the local grocery store. I graduated to selling Christmas cards and at the age of 12 took the money and bought a new 3 speed bicycle. I believe this is when an entrepreneur was born in me. No doubt my mission I served for 2 years where I tried to sell nonbelievers about Christ, changed my life.
After my mission I became a salesman where I cold called and sold correspondent courses at a trade school to veterans of the war. I sold real estate. I started a yard care business, then an insect control company. I looked at a multi level marketing company and joined them for about 2 weeks. My younger brother and I started raising rabbits so we could sell their pelts. Even though each endeavor never really made much money, I kept trying to find that home run.
My next experiment was the home run and changed my life again. I will talk about it in my next blog.
When I was 6 or 7 my younger brother Randy would collect pop bottles from our neighbors and then sell them to the local grocery store. I graduated to selling Christmas cards and at the age of 12 took the money and bought a new 3 speed bicycle. I believe this is when an entrepreneur was born in me. No doubt my mission I served for 2 years where I tried to sell nonbelievers about Christ, changed my life.
After my mission I became a salesman where I cold called and sold correspondent courses at a trade school to veterans of the war. I sold real estate. I started a yard care business, then an insect control company. I looked at a multi level marketing company and joined them for about 2 weeks. My younger brother and I started raising rabbits so we could sell their pelts. Even though each endeavor never really made much money, I kept trying to find that home run.
My next experiment was the home run and changed my life again. I will talk about it in my next blog.
Saturday, October 8, 2011
Network Marketing your Business
There are four networking groups I wanted to talk about today. I know there are many more but these four I know work. Networking takes time but is very valuable for a many reasons. Too many times we are stuck behind our desk in our home office. We talk to people on the phone most of the day or we play around on the computer looking for leads. I find this can be hard on me mentally. If I don’t get out, I might not talk with anyone in person other than my wife for days.
Almost with any business you have, networking is invaluable. Not only is getting out of the office refreshing, it produces leads. Usually referral from these groups are golden leads. These type of leads can have a closing rate of 90 % or sometimes even better.
When you get this type of a referral lead, it is like getting a testament from the person who gave it to you. They basically are saying, you are a good guy and I trust this person. Because of this, you must not disappoint or you’ll never get another lead from that person or group.
Here are my 4 favorite groups.
• The BNI networking group is the largest in the World. They get together weekly to share ideas, contacts and most importantly, business referrals. This might be the most effective use of your time in search for referrals.
• The Corporate Alliance does the same thing but normally they are the CEO’s and upper management of different companies. It is a newer national organization but it is growing and can be very effective.
• Your local Chamber of Commerce is a great resource for most companies.
• The last but not least is your local Rotary, Lions, Kiwanis, Elks or other type clubs in your city or county. Serving and making friends return big benefits.
No matter what your business is, effective networking can make the difference between success and failure.
Almost with any business you have, networking is invaluable. Not only is getting out of the office refreshing, it produces leads. Usually referral from these groups are golden leads. These type of leads can have a closing rate of 90 % or sometimes even better.
When you get this type of a referral lead, it is like getting a testament from the person who gave it to you. They basically are saying, you are a good guy and I trust this person. Because of this, you must not disappoint or you’ll never get another lead from that person or group.
Here are my 4 favorite groups.
• The BNI networking group is the largest in the World. They get together weekly to share ideas, contacts and most importantly, business referrals. This might be the most effective use of your time in search for referrals.
• The Corporate Alliance does the same thing but normally they are the CEO’s and upper management of different companies. It is a newer national organization but it is growing and can be very effective.
• Your local Chamber of Commerce is a great resource for most companies.
• The last but not least is your local Rotary, Lions, Kiwanis, Elks or other type clubs in your city or county. Serving and making friends return big benefits.
No matter what your business is, effective networking can make the difference between success and failure.
Monday, October 3, 2011
Franchise Symposium & Expo
In just over a month, on November the 10th the Northfront Business Resource Center at the DATC in Kaysville is sponsoring franchise Symposium, teaching people about franchising. Is buying a franchise right for you? Why is franchising good or bad? How can you finance your small business? How do you tell if you are looking at a great franchise opportunity or a poor one? Those are some of the franchise questions being answered at this franchise Symposium and Expo.
Believe it or not, they have asked me to speak and be on a panel board discussion. You can get details plus more information and register at www.datc.edu/franchise. If you know of anyone who might be interested, please forward them the web site and registration instructions. It costs $15 if you preregister and $20 if you don’t, but you get a breakfast, lunch and materials which come with registering.
If you have ever had an interest in becoming an entrepreneur, financing ANY business or just want to learn a little about starting a business, it will be worth your time.
Our State of Utah Lt. Governor Greg Bell will be the Keynote speaker.
Let me know if you are coming so I can look for you.
Believe it or not, they have asked me to speak and be on a panel board discussion. You can get details plus more information and register at www.datc.edu/franchise. If you know of anyone who might be interested, please forward them the web site and registration instructions. It costs $15 if you preregister and $20 if you don’t, but you get a breakfast, lunch and materials which come with registering.
If you have ever had an interest in becoming an entrepreneur, financing ANY business or just want to learn a little about starting a business, it will be worth your time.
Our State of Utah Lt. Governor Greg Bell will be the Keynote speaker.
Let me know if you are coming so I can look for you.
Sunday, September 25, 2011
Buying a Franchise or Starting on my Own?
Buying a franchise is the safest way to start a business. If someone can afford it, going with a franchise will help protect your investment.
Franchising is where someone has taken a successful business or concept, perfected it and then duplicates it. In most cases buying into a franchise is the safest way to start a business. Quoting the book The E-Myth Revisited, “Over the course of one year, Business Format Franchises have reported a success rate of 95% in contrast to the 50-plus-percent failure rate of new independently owned businesses. Where 80% of all businesses fail in the first 5 years, 75% of all Business Format Franchises succeed!”
If you start your own business with $50,000 and fail, you lose $50,000. If you buy a franchise and invest $100,000 and succeed, it did cost you more to get started but not only did you not lose your 50k but now have a thriving business which is not only provided a good income, you are building equity for when it comes time to sell.
If the average success rate of a franchise company is 75%, then that means half of them are below 75% and are half better. Why not only look at those with a 90% or better chance of success? To do that you will need to do some research or get help from a qualified consulant.
There are many reasons to buy a franchise. First it is a proven concept. They give you a road map to being successful. Buying power, marketing help, accounting procedures set up, employee hiring practices are taught, salesmanship and other special practices are taught to the owners. Customers know if you are a franchise, you will be consistent, give good service and you will be around for years to come.
Is it cheaper to start your own business or to buy a franchise? Just ask the 80% of independents who have failed.
Franchising is where someone has taken a successful business or concept, perfected it and then duplicates it. In most cases buying into a franchise is the safest way to start a business. Quoting the book The E-Myth Revisited, “Over the course of one year, Business Format Franchises have reported a success rate of 95% in contrast to the 50-plus-percent failure rate of new independently owned businesses. Where 80% of all businesses fail in the first 5 years, 75% of all Business Format Franchises succeed!”
If you start your own business with $50,000 and fail, you lose $50,000. If you buy a franchise and invest $100,000 and succeed, it did cost you more to get started but not only did you not lose your 50k but now have a thriving business which is not only provided a good income, you are building equity for when it comes time to sell.
If the average success rate of a franchise company is 75%, then that means half of them are below 75% and are half better. Why not only look at those with a 90% or better chance of success? To do that you will need to do some research or get help from a qualified consulant.
There are many reasons to buy a franchise. First it is a proven concept. They give you a road map to being successful. Buying power, marketing help, accounting procedures set up, employee hiring practices are taught, salesmanship and other special practices are taught to the owners. Customers know if you are a franchise, you will be consistent, give good service and you will be around for years to come.
Is it cheaper to start your own business or to buy a franchise? Just ask the 80% of independents who have failed.
Saturday, September 17, 2011
How safe is a Biz Op
Business Opportunities sometimes referred to as “Biz Op’s or Licensing” is a type of business ownership where a person usually buys a new start-up company (non-franchise). There are very few regulations and laws governing “Biz Op’s or Licensing” and therefore there are many illegitimate and scams with this type of ownership.
Most of the time these type of businesses cost much less than a franchise because they do not give the owner as much help as a franchisor would give. Most of the time they have a high failure rate since they are not regulated very much. Besides giving little help they do not have to disclose their failures. Biz Op’s in my opinion are normally a bad investment. You can sometimes pay much as a franchise to open this type of business yet get no or very little in help in starting or operating it.
There are some good Biz Op’s but most are kind of scary to get into. If you do decide to look at one, research those owners of the company to see what their backgound has been. Be sure to look and research all those owners who have closed their doors. If the company will not give you the list of those closed, do not buy. Also if a company gives you flowery earnings claims without back-up and proven data, then it is probably a scam. Usually they will point to one or two people who have made a lot of money and suggest you can do the same. There is probably a good reason those one or two people have done well. It might take some digging, but if you are serious, it might be worth getting out the shovel.
Just remember most people who buy Biz Op’s or Licienses lose their investment. If you do proper research, you will not be one of them.
Most of the time these type of businesses cost much less than a franchise because they do not give the owner as much help as a franchisor would give. Most of the time they have a high failure rate since they are not regulated very much. Besides giving little help they do not have to disclose their failures. Biz Op’s in my opinion are normally a bad investment. You can sometimes pay much as a franchise to open this type of business yet get no or very little in help in starting or operating it.
There are some good Biz Op’s but most are kind of scary to get into. If you do decide to look at one, research those owners of the company to see what their backgound has been. Be sure to look and research all those owners who have closed their doors. If the company will not give you the list of those closed, do not buy. Also if a company gives you flowery earnings claims without back-up and proven data, then it is probably a scam. Usually they will point to one or two people who have made a lot of money and suggest you can do the same. There is probably a good reason those one or two people have done well. It might take some digging, but if you are serious, it might be worth getting out the shovel.
Just remember most people who buy Biz Op’s or Licienses lose their investment. If you do proper research, you will not be one of them.
Thursday, September 8, 2011
Multi Level Marketing
Multi Level Marketing (MLM) has been a quick way to get a company’s product or service into the market place. It seems these type of companies can spring up and grow rapidly. They can be over night successes or failures.
Multi Level Marketing according to Wikipedia “is a marketing strategy in which the sales force is compensated not only for the sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and the hierarchy of multiple levels of compensation.” Sometimes MLM has been called Network Marketing, Referral Marketing and sometimes Pyramid selling.
There is a fine line between multi level marking and pyramid selling. Pyramid selling is illegal because it is too easy to cheat the buyer. Pyramids are usually low cost investments where the buyers invest money where little or no product or service is rendered. They buyer invests a little money in hopes when others in their downline sign on they will get a piece of the action. Most of the time exaggerated earning claims are given. Chain letters, Ponzi schemes and other consumer fraud scams are prime examples of pyramid type selling. The crook, Bernie Madoff was involved in a high cost pyramid selling. Many fortunes have been lost in this type of pyramid selling.
MLM marketing has succeeded over the years for the most part because they usually sell a legitimate product or service. But there have been many lawsuits with these companies trying to defend themselves. MLM is not a fully regulated business model so there are many exaggerations being made with very little proof of income. Some people can do very well financially if they have the right personalities, work ethic and personal contacts. Usually these companies will point out a few very successful members but never tell you the negative side of the business.
Most of the time these MLM companies are honest and legitimate businesses with well known names, but they still have their own baggage they don't want to talk about. Usually it is a high failure rate or lawsuits from its members (they do not have to disclose). Well known names like Avon, Tupperware, Kirby, Nuskin, Amway and hundreds of others have used MLM to expand the sales of their product.
I have known some who have become millionaires in MLM and some who have made a good living for a number of years. Mostly I have known people (including myself) who have bought into a MLM business and have quit within a short time. Most people joining these businesses never make their investment back. Since it only cost them a few hundred to a few thousand dollars to join, they chalk it up to experience and move on.
As reported in Wikipedia, they quoted “The Times”, "The Government investigation claims to have revealed that just 10% of ____ (one of most popular MLM company) agents in Britain make any profit, with less than one in ten selling a single item of the group's products." According to Newsweek, in one very popular MLM companies own disclosure statement, “fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week.”
The USA today had several articles on MLM. Here is what they reported.
• While earning potential varies by company and sales ability, DSA says the median annual income for those in direct sales is $2,400.
• In an October 15, 2010 article, it was stated that documents of a MLM called ___ reveal that 30 percent of its representatives make no money and that 54 percent of the remaining 70 percent only make $93 a month. The article also states ___ is under investigation by the Attorneys General of Texas, Kentucky, North Dakota, and North Carolina with Missouri, South Carolina, Illinois, and Florida following up complaints against the company.
• A February 10, 2011 article stated "It can be very difficult, if not impossible, for most individuals to make a lot of money through the direct sale of products to consumers. And big money is what recruiters often allude to in their pitches."
• "Roland Whitsell, a former business professor who spent 40 years researching and teaching the pitfalls of multilevel marketing": "You'd be hard-pressed to find anyone making over $1.50 an hour, the primary product is opportunity. The strongest, most powerful motivational force today is false hope."
If you go into and Multi Level Marketing, realize the deck is stacked against you. If you have many contacts outside of your family, friends and are willing to give them a sales pitch, if you are outgoing and have a gregarious personality and if you are willing to work long hours during the evenings, then you might be able to make some money in MLM. If you are planning on selling family and friends, it is the fastest way to alienate yourself from them.
If you do go into MLM, just don’t call me to join for I want to stay your friend.
Multi Level Marketing according to Wikipedia “is a marketing strategy in which the sales force is compensated not only for the sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and the hierarchy of multiple levels of compensation.” Sometimes MLM has been called Network Marketing, Referral Marketing and sometimes Pyramid selling.
There is a fine line between multi level marking and pyramid selling. Pyramid selling is illegal because it is too easy to cheat the buyer. Pyramids are usually low cost investments where the buyers invest money where little or no product or service is rendered. They buyer invests a little money in hopes when others in their downline sign on they will get a piece of the action. Most of the time exaggerated earning claims are given. Chain letters, Ponzi schemes and other consumer fraud scams are prime examples of pyramid type selling. The crook, Bernie Madoff was involved in a high cost pyramid selling. Many fortunes have been lost in this type of pyramid selling.
MLM marketing has succeeded over the years for the most part because they usually sell a legitimate product or service. But there have been many lawsuits with these companies trying to defend themselves. MLM is not a fully regulated business model so there are many exaggerations being made with very little proof of income. Some people can do very well financially if they have the right personalities, work ethic and personal contacts. Usually these companies will point out a few very successful members but never tell you the negative side of the business.
Most of the time these MLM companies are honest and legitimate businesses with well known names, but they still have their own baggage they don't want to talk about. Usually it is a high failure rate or lawsuits from its members (they do not have to disclose). Well known names like Avon, Tupperware, Kirby, Nuskin, Amway and hundreds of others have used MLM to expand the sales of their product.
I have known some who have become millionaires in MLM and some who have made a good living for a number of years. Mostly I have known people (including myself) who have bought into a MLM business and have quit within a short time. Most people joining these businesses never make their investment back. Since it only cost them a few hundred to a few thousand dollars to join, they chalk it up to experience and move on.
As reported in Wikipedia, they quoted “The Times”, "The Government investigation claims to have revealed that just 10% of ____ (one of most popular MLM company) agents in Britain make any profit, with less than one in ten selling a single item of the group's products." According to Newsweek, in one very popular MLM companies own disclosure statement, “fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week.”
The USA today had several articles on MLM. Here is what they reported.
• While earning potential varies by company and sales ability, DSA says the median annual income for those in direct sales is $2,400.
• In an October 15, 2010 article, it was stated that documents of a MLM called ___ reveal that 30 percent of its representatives make no money and that 54 percent of the remaining 70 percent only make $93 a month. The article also states ___ is under investigation by the Attorneys General of Texas, Kentucky, North Dakota, and North Carolina with Missouri, South Carolina, Illinois, and Florida following up complaints against the company.
• A February 10, 2011 article stated "It can be very difficult, if not impossible, for most individuals to make a lot of money through the direct sale of products to consumers. And big money is what recruiters often allude to in their pitches."
• "Roland Whitsell, a former business professor who spent 40 years researching and teaching the pitfalls of multilevel marketing": "You'd be hard-pressed to find anyone making over $1.50 an hour, the primary product is opportunity. The strongest, most powerful motivational force today is false hope."
If you go into and Multi Level Marketing, realize the deck is stacked against you. If you have many contacts outside of your family, friends and are willing to give them a sales pitch, if you are outgoing and have a gregarious personality and if you are willing to work long hours during the evenings, then you might be able to make some money in MLM. If you are planning on selling family and friends, it is the fastest way to alienate yourself from them.
If you do go into MLM, just don’t call me to join for I want to stay your friend.
Saturday, September 3, 2011
Many Ways to Own a Business
There are a few types of businesses a person can own. Over the next couple of weeks I will talk about a few of them. They will include what is called Multi-level marketing, Business Opportunities, Franchising, buying an existing business and starting your own from scratch.
Over the years of have been involved with all of them. I will tell you the good and bad about each. Becoming an entrepreneur is not easy and seems to be a curse or a blessing. If you do it the wrong way, it is a curse. If you do it the right way, it can be fun and very rewarding.
How do you know which is right for you? Read some of my thoughts over the next month and maybe you will have that question answered for you. Remember to always do your homework and don’t let emotions of the moment direct you.
If you know anyone about to start or buy a business, have them read my blog these next few weeks.
Over the years of have been involved with all of them. I will tell you the good and bad about each. Becoming an entrepreneur is not easy and seems to be a curse or a blessing. If you do it the wrong way, it is a curse. If you do it the right way, it can be fun and very rewarding.
How do you know which is right for you? Read some of my thoughts over the next month and maybe you will have that question answered for you. Remember to always do your homework and don’t let emotions of the moment direct you.
If you know anyone about to start or buy a business, have them read my blog these next few weeks.
Saturday, August 27, 2011
Learn, Act & Share
In my religion we have a program to especially help the youth. It is called “Duty to God.” Youth are taught how they can serve God and how to be true Christians. As part of this Duty to God they are encouraged to Learn, Act and Share. There is much to be said about this program in relation to God, but the premises could very well apply to being an Entrepreneur.
Before becoming an entrepreneur you must LEARN a great deal about the product and service you are looking to get involved in. Is it a good product with some sustainability? The last thing you want is to start a business selling a product and have no demand for it. You get stuck with an inventory because the demand dried up too fast. Is it a product with a large or small public demand? If you customer pool is too small your business might not last because of the lack of customers. Are there multiple sources for you to buy the product? If you are only buying from one source and they quit selling to you product, you could be closed within days if not hours. Do you have the talents and skills to run a business? Look at yourself and be honest. Remember if you have the passion, you can learn and be taught most things about running a business. If you do not have the passion and drive to be an entrepreneur, that is OK for it is not for everyone. It is going to take a lot of work, so if you don’t have the passion to run your own business, don’t even try.
After you have LEARNED what you need to make a smart decision, then ACT. Too many people learn but never act. There are those that talk the talk and then there are those that walk the walk. Most of the time skeptical people have too much fear to act. The more information you can learn, the less fear you will have. But there gets to a point where you must act or nothing will ever happen. You will never get 100% of the information and if you think you need it, you will never pull the trigger on anything. I suggest once you have learned most of the important items about the business, make a decision and ACT. Be a doer and not a talker. If you never try, you will never succeed. Once you try, jump in with both feet and don’t look back, but only forward. Work hard and give great customer service and then work some more. Most businesses will not be an overnight success because it can take months or a few years. Once you become an Entrepreneur most will never go back working for someone else again.
The third part of this is SHARING. Once you are successful, reach out and help others. There are not many things more rewarding than sharing what you know and helping others succeed. Be part of the lives of those in need, either by being a mentor, trainer of small business start-ups or a financial contributor to organizations which encourage others to become entrepreneurs. Being able to share your knowledge or wealth is very rewarding personally. If you get help from a person, book, mentor or even a blog, you should “pay if forward”.
LEARN, ACT & SHARE are great principles to live by in church and it works very well for those looking to become entrepreneurs.
Before becoming an entrepreneur you must LEARN a great deal about the product and service you are looking to get involved in. Is it a good product with some sustainability? The last thing you want is to start a business selling a product and have no demand for it. You get stuck with an inventory because the demand dried up too fast. Is it a product with a large or small public demand? If you customer pool is too small your business might not last because of the lack of customers. Are there multiple sources for you to buy the product? If you are only buying from one source and they quit selling to you product, you could be closed within days if not hours. Do you have the talents and skills to run a business? Look at yourself and be honest. Remember if you have the passion, you can learn and be taught most things about running a business. If you do not have the passion and drive to be an entrepreneur, that is OK for it is not for everyone. It is going to take a lot of work, so if you don’t have the passion to run your own business, don’t even try.
After you have LEARNED what you need to make a smart decision, then ACT. Too many people learn but never act. There are those that talk the talk and then there are those that walk the walk. Most of the time skeptical people have too much fear to act. The more information you can learn, the less fear you will have. But there gets to a point where you must act or nothing will ever happen. You will never get 100% of the information and if you think you need it, you will never pull the trigger on anything. I suggest once you have learned most of the important items about the business, make a decision and ACT. Be a doer and not a talker. If you never try, you will never succeed. Once you try, jump in with both feet and don’t look back, but only forward. Work hard and give great customer service and then work some more. Most businesses will not be an overnight success because it can take months or a few years. Once you become an Entrepreneur most will never go back working for someone else again.
The third part of this is SHARING. Once you are successful, reach out and help others. There are not many things more rewarding than sharing what you know and helping others succeed. Be part of the lives of those in need, either by being a mentor, trainer of small business start-ups or a financial contributor to organizations which encourage others to become entrepreneurs. Being able to share your knowledge or wealth is very rewarding personally. If you get help from a person, book, mentor or even a blog, you should “pay if forward”.
LEARN, ACT & SHARE are great principles to live by in church and it works very well for those looking to become entrepreneurs.
Friday, August 19, 2011
Feeding the Entrepreneur
Most people don’t realize it but networking can be a key to owning a successful business in more ways than one. Entrepreneurs feed off other entrepreneurs. That is one of the reasons you find the most successful ones read self improvement articles and books about successful business owners. Their stories inspire.
If you are able to see how others have made themselves into winners, you will be able to see how you can make yourself a winner. If you believe, you can make it happen! If you do not doubt yourself, you can fulfill your goals and dreams.
Networking with other business owners and entrepreneurs will feed your soul. Not only is reading good books and stories important but talking with other successful people will help you grow into become one. We all have heard of the quote, “You are what you eat.” If you put in garbage, only garbage comes out. If you surround yourself with smart, successful people, you will become one.
If you want to become an entrepreneur, go to your local Chamber of Commerce meetings. Find the local Toastmaster, Dale Carnegie, Business Alliance groups, join and attend their meetings. Their excitement for business will rub off and you will find yourself in places you have in the past only dreaming about.
Success in anything takes work. It is NOT handed to you on a silver platter. If you want to become an entrepreneur, work at it and feed the “animal” good inspiring food.
About the only time you will see a true entrepreneur down is when they have not fed themselves the right food. Do not feed yourself garbage!
If you are able to see how others have made themselves into winners, you will be able to see how you can make yourself a winner. If you believe, you can make it happen! If you do not doubt yourself, you can fulfill your goals and dreams.
Networking with other business owners and entrepreneurs will feed your soul. Not only is reading good books and stories important but talking with other successful people will help you grow into become one. We all have heard of the quote, “You are what you eat.” If you put in garbage, only garbage comes out. If you surround yourself with smart, successful people, you will become one.
If you want to become an entrepreneur, go to your local Chamber of Commerce meetings. Find the local Toastmaster, Dale Carnegie, Business Alliance groups, join and attend their meetings. Their excitement for business will rub off and you will find yourself in places you have in the past only dreaming about.
Success in anything takes work. It is NOT handed to you on a silver platter. If you want to become an entrepreneur, work at it and feed the “animal” good inspiring food.
About the only time you will see a true entrepreneur down is when they have not fed themselves the right food. Do not feed yourself garbage!
Saturday, August 13, 2011
How can you get a SBA loan
Below is a test to see how much you might or might not know about SBA loan programs.
See how you do on this SBA (Small Business Association) Test
(True or False)
1. As you can imagine as with all government programs, there is a lot of red tape, paperwork, and time involved in obtaining an SBA loan especially compared to regular bank loans.
2. SBA loans are lower-interest than most normal business loans.
3. You must be turned down by a bank or credit union before you can obtain an SBA loan.
4. A SBA loan must be fully secured by collateral or it will be declined.
5. SBA business loans are designed to be longer term than traditional loans and do not allow “balloon” or other such call type features.
6. The term of the loan (length of the loan) is actually more important than the interest rate, especially concerning the impact on the cash flow of the business.
7. If I have an SBA loan, it guarantees my business will not fail.
8. Any bank or credit union can help me with an SBA loan.
Answers
1. False. Most SBA loans require about the same amount of paperwork as a regular bank loan. They will require collateral, good credit and probably personal guarantee’s, much the same as a regular bank loan. Banks like to give SBA loans because much of the loan amount is protected and if defaulted on will be repaid by the government.
2. False. Generally they are the same as regular bank or credit union loan interest rates. The SBA do not actually determine the interest rate on each loan and one particular program, the 504 loan program, offers a lower than market rate but many cannot qualify for this loan. Generally the interest rate will be the same or close to the normal rate charged by the bank or credit union.
3. False. Most SBA loans are just bank or credit union loans but are guaranteed by the SBA, therefore they must follow those standards set by the SBA.
4. False. Just like a regular bank or credit union loan, they do not need to be fully collateralized. Depending on the credit worthiness of the individual, 100% collateral aren’t always needed. If the finance company can get a person 100% of it collateralized, they will be happy to take it, but it isn’t always necessary.
5. True. There are stipulations on most SBA loans, so be aware of those stipulations and make sure you can live with them. Sometimes other non-SBA loans are better for a borrower.
6. True. Most of the time a borrower loan payment can be more important than the interest rate a person pays. A longer term of a loan can reduce the amount of the monthly payment and many times is a better deal. Cash flow for a business is very important to success or failure.
7. False. No one can or will guarantee the success or failure of a business. Having an SBA will give you some comfort because they require the bank and the borrower to follow proven steps in researching a business.
8. False. Only those financial institutions who have been approved by the SBA can give these type of loans.
See how you do on this SBA (Small Business Association) Test
(True or False)
1. As you can imagine as with all government programs, there is a lot of red tape, paperwork, and time involved in obtaining an SBA loan especially compared to regular bank loans.
2. SBA loans are lower-interest than most normal business loans.
3. You must be turned down by a bank or credit union before you can obtain an SBA loan.
4. A SBA loan must be fully secured by collateral or it will be declined.
5. SBA business loans are designed to be longer term than traditional loans and do not allow “balloon” or other such call type features.
6. The term of the loan (length of the loan) is actually more important than the interest rate, especially concerning the impact on the cash flow of the business.
7. If I have an SBA loan, it guarantees my business will not fail.
8. Any bank or credit union can help me with an SBA loan.
Answers
1. False. Most SBA loans require about the same amount of paperwork as a regular bank loan. They will require collateral, good credit and probably personal guarantee’s, much the same as a regular bank loan. Banks like to give SBA loans because much of the loan amount is protected and if defaulted on will be repaid by the government.
2. False. Generally they are the same as regular bank or credit union loan interest rates. The SBA do not actually determine the interest rate on each loan and one particular program, the 504 loan program, offers a lower than market rate but many cannot qualify for this loan. Generally the interest rate will be the same or close to the normal rate charged by the bank or credit union.
3. False. Most SBA loans are just bank or credit union loans but are guaranteed by the SBA, therefore they must follow those standards set by the SBA.
4. False. Just like a regular bank or credit union loan, they do not need to be fully collateralized. Depending on the credit worthiness of the individual, 100% collateral aren’t always needed. If the finance company can get a person 100% of it collateralized, they will be happy to take it, but it isn’t always necessary.
5. True. There are stipulations on most SBA loans, so be aware of those stipulations and make sure you can live with them. Sometimes other non-SBA loans are better for a borrower.
6. True. Most of the time a borrower loan payment can be more important than the interest rate a person pays. A longer term of a loan can reduce the amount of the monthly payment and many times is a better deal. Cash flow for a business is very important to success or failure.
7. False. No one can or will guarantee the success or failure of a business. Having an SBA will give you some comfort because they require the bank and the borrower to follow proven steps in researching a business.
8. False. Only those financial institutions who have been approved by the SBA can give these type of loans.
Wednesday, August 3, 2011
Are you Happy?
If you don’t like where you are at in life, try something new. The worst thing we can do to ourselves is live in a mundane existence. Whatever you do, be happy, for life is too short to do something you do not like. If it is your job, your education or the way you feel about yourself, if you don’t feel comfortable about who you are or where you are headed, change! It is never too late.
Almost every potential entrepreneur comes to a cross roads in their life. Do they stay the same or do they venture out and take a risk. The entrepreneur takes the risk. The successful risk taker, does their homework and then makes their decision. They know their chances of failure sky rocket if they do not do the research before taking the risk.
"The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it."
Debbi Fields, founder of Mrs. Fields Cookies
We can sit around and wish for something that is not here, or we can go out and find it. As Debbi says, “The greatest failure is not to try.”
As Steve Jobs said, “Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”
Most people will talk about it; the entrepreneur goes out and makes it happen.
Almost every potential entrepreneur comes to a cross roads in their life. Do they stay the same or do they venture out and take a risk. The entrepreneur takes the risk. The successful risk taker, does their homework and then makes their decision. They know their chances of failure sky rocket if they do not do the research before taking the risk.
"The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it."
Debbi Fields, founder of Mrs. Fields Cookies
We can sit around and wish for something that is not here, or we can go out and find it. As Debbi says, “The greatest failure is not to try.”
As Steve Jobs said, “Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”
Most people will talk about it; the entrepreneur goes out and makes it happen.
Wednesday, July 27, 2011
Buying a Farm or a Business?
I am sure you have heard about the best way to own a small fortune. Start with a large fortune, buy a farm, wait a few years and you’ll have a small fortune. Even though it is a little sad, it is mostly true.
Some people have always had a passion to become a farmer. They buy one, run it for a short time, find it almost impossible to make money and unless they have bought a large farm and are well capitalized they close down as fast as they had opened. Passion to be a farmer only takes you so far.
This is kind of like starting a small business, if you don’t do it right your the chances are you will be closed within a year. Did you know the US Commerce Department did a study and looked at independently owned small business owners? They found that 50% of small business owners were closed down within their first year. Even more alarming 80% of these independently owned small business owners were closed by year 5. When they studied the franchise small business owners, 95% were still open by the end of year one and 75% still open by the end of year 5. The power of buying a franchise is huge!
Almost as good as buying a franchise is buying a business which has been open longer than 5 years. They have gotten to the point where they can prove they have made it past the critical early stages of business development. With an existing business the seller can prove if they are making money and how much they are netting. They can teach the new owner about employee management, marketing, accounting, salesmanship and every other important aspect of running their business.
The longer the companies track record is the greater the information they can provide to the buyer. Knowledge is power. The more knowledge you have about the business you are buying, the better chance you will have to NOT make a mistake.
Starting a business from scratch is scary because of the lack of knowledge of the entrepreneur. That is one of the reasons so many fail. I am not saying, don’t try, but buying an existing business is normally much safer than starting a new one. In some ways it is even as safe as buying a franchise. Either way, do your homework.
Some people have always had a passion to become a farmer. They buy one, run it for a short time, find it almost impossible to make money and unless they have bought a large farm and are well capitalized they close down as fast as they had opened. Passion to be a farmer only takes you so far.
This is kind of like starting a small business, if you don’t do it right your the chances are you will be closed within a year. Did you know the US Commerce Department did a study and looked at independently owned small business owners? They found that 50% of small business owners were closed down within their first year. Even more alarming 80% of these independently owned small business owners were closed by year 5. When they studied the franchise small business owners, 95% were still open by the end of year one and 75% still open by the end of year 5. The power of buying a franchise is huge!
Almost as good as buying a franchise is buying a business which has been open longer than 5 years. They have gotten to the point where they can prove they have made it past the critical early stages of business development. With an existing business the seller can prove if they are making money and how much they are netting. They can teach the new owner about employee management, marketing, accounting, salesmanship and every other important aspect of running their business.
The longer the companies track record is the greater the information they can provide to the buyer. Knowledge is power. The more knowledge you have about the business you are buying, the better chance you will have to NOT make a mistake.
Starting a business from scratch is scary because of the lack of knowledge of the entrepreneur. That is one of the reasons so many fail. I am not saying, don’t try, but buying an existing business is normally much safer than starting a new one. In some ways it is even as safe as buying a franchise. Either way, do your homework.
Thursday, July 21, 2011
Buying an existing Business?
If you can afford it, sometimes the best way to be an entrepreneur is to buy an existing business. Many times buying an existing business can be the best deal, especially if you get it for the right price and you can make some good money from the investment.
Frequently I am asked, “What is a business worth?” There are many answers to that question but the simple answer is whatever someone is willing to pay for it. One book I read said generally it is 2 to 4 times the company’s net yearly earnings plus assets. The longer a business has been going, usually the higher the multiple someone is willing to pay. If the business has been running for 10 to 20 years and has a great track record of income, the more confidence the buyer will have that they can continue making that income. Sometimes businesses which have been in running for years can sell for 6 to 10 times income or more especially if it can be shown the industry and the company is going to remain strong.
If a business has only been open for a short time or is losing money, it might sell below what the owner has put into it. If an owner is desperate to sell for whatever the reason, they usually will be forced to sell below cost and sometimes much below. One candidate I am working with wants to open a franchise in the Phoenix, AZ area. It was going to cost him 225k to 275k to open a new franchise in the perfect industry for him. We found him a franchisee with the same franchise company and where the owner is willing to sell his 4 year old business for 115k. It already has over 300 steady paying customers and is making 40 to 50k a year. It seems the only negative is he will have to travel across town to get to his business.
It is almost a no brainer; buy a business for less than half the cost of a new one and it is already making an income. Even if he cannot increase the profits any by giving customer service (which the previous owners have not been doing) he will still payback his investment in just over 2 years.
It is important for anyone buying a business to do it the right way, making sure they are protected. Having professionals involved will be essential to prevent mistakes. Hiring a good business attorney and a CPA will be money well spent. If you are using a business broker (similar to a real estate broker but only sells existing businesses) to help you find a business, they can be of assistance. You need to be a little careful in using their advice too much for they only get paid, if you buy.
I will try to talk more about buying an existing business in my blog next week.
Frequently I am asked, “What is a business worth?” There are many answers to that question but the simple answer is whatever someone is willing to pay for it. One book I read said generally it is 2 to 4 times the company’s net yearly earnings plus assets. The longer a business has been going, usually the higher the multiple someone is willing to pay. If the business has been running for 10 to 20 years and has a great track record of income, the more confidence the buyer will have that they can continue making that income. Sometimes businesses which have been in running for years can sell for 6 to 10 times income or more especially if it can be shown the industry and the company is going to remain strong.
If a business has only been open for a short time or is losing money, it might sell below what the owner has put into it. If an owner is desperate to sell for whatever the reason, they usually will be forced to sell below cost and sometimes much below. One candidate I am working with wants to open a franchise in the Phoenix, AZ area. It was going to cost him 225k to 275k to open a new franchise in the perfect industry for him. We found him a franchisee with the same franchise company and where the owner is willing to sell his 4 year old business for 115k. It already has over 300 steady paying customers and is making 40 to 50k a year. It seems the only negative is he will have to travel across town to get to his business.
It is almost a no brainer; buy a business for less than half the cost of a new one and it is already making an income. Even if he cannot increase the profits any by giving customer service (which the previous owners have not been doing) he will still payback his investment in just over 2 years.
It is important for anyone buying a business to do it the right way, making sure they are protected. Having professionals involved will be essential to prevent mistakes. Hiring a good business attorney and a CPA will be money well spent. If you are using a business broker (similar to a real estate broker but only sells existing businesses) to help you find a business, they can be of assistance. You need to be a little careful in using their advice too much for they only get paid, if you buy.
I will try to talk more about buying an existing business in my blog next week.
Wednesday, July 13, 2011
No Easy Way!
"The quickest way to double your money is to fold it and put it back into your pocket!" (Will Rogers)
There are no quick, easy ways to double your money. If there was everyone would be doing it and the market place would be out of control. Starting a business is not easy. Just ask anyone who has started one.
If you have the desire to become an entrepreneur, get some help. Do NOT do it on your own. There are many ways to find FREE help. Reading a couple good books will get you started. Books like “E Myth Revisited”, “Street Smart Franchising” and “The Educated Franchisee” will get you started and teach you about starting a business.
Your local city, county and State have organizations set up to help those looking to begin a business in their area. Generally these are at little or no cost to the member of the community. In my county we have a Small Business Development Center (SBDC) whose main purpose is to educate, consult and mentor entrepreneurs in our county. The help with business turn around, business start up, business plan development, finance management, loan package preparation, market research and many other very important aspects of starting a business. Our county also has funds set aside to help start-up businesses.
There is an organization called SCORE whose sole purpose is to help people start small businesses. Here is a quote from their web site.
“SCORE is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA), and has been mentoring small business owners for more than forty years.
SCORE is a valuable network of 13,000+ volunteers who offer small business entrepreneurs confidential business counseling services at no charge. SCORE volunteers have the knowledge and experience to help any small business owner get the help they need. Our dedicated volunteers represent over 270,000 years of experience across 62 industries.”
The U.S. government has the SBA there to help small businesses. Sometimes because of the red tape of government, they are not as helpful as they could be, but they are still a good resource. The SBA has helped many businesses get start and there is much to be learned from them and their web site.
Why wouldn’t a person use the FREE valuable resources around them? There are good people willing to give advice and help those in need. It is the smart business person who does their homework and uses the tools available to them.
There are no short cuts. Those that think there are, most of the time FAIL. Take the long way to business ownership, for it is the least risky path.
There are no quick, easy ways to double your money. If there was everyone would be doing it and the market place would be out of control. Starting a business is not easy. Just ask anyone who has started one.
If you have the desire to become an entrepreneur, get some help. Do NOT do it on your own. There are many ways to find FREE help. Reading a couple good books will get you started. Books like “E Myth Revisited”, “Street Smart Franchising” and “The Educated Franchisee” will get you started and teach you about starting a business.
Your local city, county and State have organizations set up to help those looking to begin a business in their area. Generally these are at little or no cost to the member of the community. In my county we have a Small Business Development Center (SBDC) whose main purpose is to educate, consult and mentor entrepreneurs in our county. The help with business turn around, business start up, business plan development, finance management, loan package preparation, market research and many other very important aspects of starting a business. Our county also has funds set aside to help start-up businesses.
There is an organization called SCORE whose sole purpose is to help people start small businesses. Here is a quote from their web site.
“SCORE is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA), and has been mentoring small business owners for more than forty years.
SCORE is a valuable network of 13,000+ volunteers who offer small business entrepreneurs confidential business counseling services at no charge. SCORE volunteers have the knowledge and experience to help any small business owner get the help they need. Our dedicated volunteers represent over 270,000 years of experience across 62 industries.”
The U.S. government has the SBA there to help small businesses. Sometimes because of the red tape of government, they are not as helpful as they could be, but they are still a good resource. The SBA has helped many businesses get start and there is much to be learned from them and their web site.
Why wouldn’t a person use the FREE valuable resources around them? There are good people willing to give advice and help those in need. It is the smart business person who does their homework and uses the tools available to them.
There are no short cuts. Those that think there are, most of the time FAIL. Take the long way to business ownership, for it is the least risky path.
Wednesday, July 6, 2011
Freedom to Choose
Since this is the week of the 4th of July I thought I would write about something which has been on my mind and has been for a few months.
My brother Rocky recently wrote a book about his experiences in Vietnam while serving the United States of America. The book is called, ‘Sgt. Rocky, Last Warrior Standing.’ It is impossible to read his book without feeling appreciative for the soldiers protecting our country. This freedom gives us the right to succeed, to fail, to learn, work hard or do nothing or allows us the right to be anything we want to be.
In 1969 while in Vietnam and after being ambushed by the enemy Rocky wrote home to our parents and said, “I’ve suddenly been impressed with the fact that for those who fought for it, freedom is the taste the protected will never know.” Meaning many of us sit in our homes, do our daily activities and never think about what freedoms we enjoy and who paid the price for that freedom. Soldier’s fight, some die for our country and some come home without limbs. They might be the only ones that know what our freedom is really about. We Americans are being protected and never will fully understand what freedom really is all about.
What does this freedom really have to do with becoming an entrepreneur? It has everything to do with becoming whatever and whoever we want to be. Author and lecturer Wayne Dyer said, “Freedom means you are unobstructed in living your life as you choose. Anything less is a form of slavery.”
If someone wants to become a doctor, teacher, policeman, factory worker, homemaker, entrepreneur or even the President of the United States, we have that freedom. We get to choose. Thousands of Men and Women have died for America in the Philippines, Korea, Vietnam, Germany, France, Iraq, Afghanistan and all over the world to give us that right.
Most people will choose to work for others and some will choose to work for themselves. There is no right or wrong. As philosopher Eric Hoffer once said, “There can be no real freedom without the freedom to fail.” We have the freedom to do it “our way” whatever way this is. If going to school, working for the government or the corporate world is “your way” there is nothing stopping you but yourself. If becoming an entrepreneur and reaching for the sky is your dream, we have the freedom to choose that dream thanks to those soldiers who fought for us.
President Franklin D. Roosevelt said, “Men are not prisoners of fate, but only prisoners of their own minds.”
We must use our minds to improve ourselves, whatever direction we take in life. We should not imprison ourselves by mediocrity. Be better, challenge yourself and enjoy the freedom to be what you want to be. We are being protected, so enjoy our liberty and freedom from those who have laid down their lives so we can have the chance to choose.
Today, go out and thank a soldier or the veteran for his sacrifice he is giving or has given. Never take our freedom for granted.
My brother Rocky recently wrote a book about his experiences in Vietnam while serving the United States of America. The book is called, ‘Sgt. Rocky, Last Warrior Standing.’ It is impossible to read his book without feeling appreciative for the soldiers protecting our country. This freedom gives us the right to succeed, to fail, to learn, work hard or do nothing or allows us the right to be anything we want to be.
In 1969 while in Vietnam and after being ambushed by the enemy Rocky wrote home to our parents and said, “I’ve suddenly been impressed with the fact that for those who fought for it, freedom is the taste the protected will never know.” Meaning many of us sit in our homes, do our daily activities and never think about what freedoms we enjoy and who paid the price for that freedom. Soldier’s fight, some die for our country and some come home without limbs. They might be the only ones that know what our freedom is really about. We Americans are being protected and never will fully understand what freedom really is all about.
What does this freedom really have to do with becoming an entrepreneur? It has everything to do with becoming whatever and whoever we want to be. Author and lecturer Wayne Dyer said, “Freedom means you are unobstructed in living your life as you choose. Anything less is a form of slavery.”
If someone wants to become a doctor, teacher, policeman, factory worker, homemaker, entrepreneur or even the President of the United States, we have that freedom. We get to choose. Thousands of Men and Women have died for America in the Philippines, Korea, Vietnam, Germany, France, Iraq, Afghanistan and all over the world to give us that right.
Most people will choose to work for others and some will choose to work for themselves. There is no right or wrong. As philosopher Eric Hoffer once said, “There can be no real freedom without the freedom to fail.” We have the freedom to do it “our way” whatever way this is. If going to school, working for the government or the corporate world is “your way” there is nothing stopping you but yourself. If becoming an entrepreneur and reaching for the sky is your dream, we have the freedom to choose that dream thanks to those soldiers who fought for us.
President Franklin D. Roosevelt said, “Men are not prisoners of fate, but only prisoners of their own minds.”
We must use our minds to improve ourselves, whatever direction we take in life. We should not imprison ourselves by mediocrity. Be better, challenge yourself and enjoy the freedom to be what you want to be. We are being protected, so enjoy our liberty and freedom from those who have laid down their lives so we can have the chance to choose.
Today, go out and thank a soldier or the veteran for his sacrifice he is giving or has given. Never take our freedom for granted.
Friday, July 1, 2011
Secrets to a successful Entrepreneur
I promised in last week’s blog I would tell you one of the most important ingredients a person must have before becoming and entrepreneur.
Last week I mentioned the Ernst & Young Entrepreneur of the year awards for 2011 were given out for the State of Utah. Two of those honored were a husband and wife team of Heidi and Orville. Even with their old fashion names they had become very successful.
In 2004, Orville started a candle making business and he had gotten it to a point where it wasn’t doing very well. He had a mountain of debt hanging over his head. As a matter of fact he told the 1,100 members of the audience at the awards ceremony he was ready to call it quits and declare bankruptcy. He said his wife, who wasn’t involved in the business at the time convinced him they should work together to turn the company around. She said, “Let’s swing for the fence!” He then told the audience, “I thank her …for setting the direction for our business and our life.”
It was reported in the newspaper, this year their company is on track to hit 500 million in revenues.
Almost always a successful entrepreneur has to have both spouses on board and be supportive of the idea and business. To be successful both parties need to be fully committed to the project and be willing to allow the entrepreneur the freedom to do what it takes to become a winner. This can be scary for the other spouse, but sometimes we must “just believe.” You don’t always have to have both working on the project but if one is negative, it is death sentence. It is good to “believe” but as Ronald Reagan said, “Trust, but verify.” Just make sure you both have done your homework before “swinging for the fence.”
In my younger married years I had a good friend who I had known for years as he had been a missionary companion of mine in Oklahoma. For many years he had been my barber and he was the best idea man I had ever met. He was an entrepreneur at heart and as he cut hair he would brain stormed some wonderful thoughts with his customers. I would see my friend almost every month and we would talk over his new business ideas. I loved talking with him and hearing what his next great business venture might be. The problem was he very rarely did any of his ideas. His wife had told him, if he ever tried them, she would leave him.
He was an unhappy entrepreneur with no escape, unless he left his wife.
There is no doubt I would not have been a successful entrepreneur without my wife fully supporting me. She went above and beyond what most spouses would do. If I had married the wrong person, I to could have been a frustrated entrepreneur with no escape.
I would have to say, the one of the most important secrets to a successful entrepreneur is a spouse who says, “Let’s swing for the fence.”
Last week I mentioned the Ernst & Young Entrepreneur of the year awards for 2011 were given out for the State of Utah. Two of those honored were a husband and wife team of Heidi and Orville. Even with their old fashion names they had become very successful.
In 2004, Orville started a candle making business and he had gotten it to a point where it wasn’t doing very well. He had a mountain of debt hanging over his head. As a matter of fact he told the 1,100 members of the audience at the awards ceremony he was ready to call it quits and declare bankruptcy. He said his wife, who wasn’t involved in the business at the time convinced him they should work together to turn the company around. She said, “Let’s swing for the fence!” He then told the audience, “I thank her …for setting the direction for our business and our life.”
It was reported in the newspaper, this year their company is on track to hit 500 million in revenues.
Almost always a successful entrepreneur has to have both spouses on board and be supportive of the idea and business. To be successful both parties need to be fully committed to the project and be willing to allow the entrepreneur the freedom to do what it takes to become a winner. This can be scary for the other spouse, but sometimes we must “just believe.” You don’t always have to have both working on the project but if one is negative, it is death sentence. It is good to “believe” but as Ronald Reagan said, “Trust, but verify.” Just make sure you both have done your homework before “swinging for the fence.”
In my younger married years I had a good friend who I had known for years as he had been a missionary companion of mine in Oklahoma. For many years he had been my barber and he was the best idea man I had ever met. He was an entrepreneur at heart and as he cut hair he would brain stormed some wonderful thoughts with his customers. I would see my friend almost every month and we would talk over his new business ideas. I loved talking with him and hearing what his next great business venture might be. The problem was he very rarely did any of his ideas. His wife had told him, if he ever tried them, she would leave him.
He was an unhappy entrepreneur with no escape, unless he left his wife.
There is no doubt I would not have been a successful entrepreneur without my wife fully supporting me. She went above and beyond what most spouses would do. If I had married the wrong person, I to could have been a frustrated entrepreneur with no escape.
I would have to say, the one of the most important secrets to a successful entrepreneur is a spouse who says, “Let’s swing for the fence.”
Friday, June 24, 2011
Are you ready to be an Entrepreneur?
Yesterday Utah’s top entrepreneurs were honored in an event at the Salt Palace in Salt Lake City and were give awards by Ernst & Young for the year 2011. I know from personal experience they have been honoring entrepreneurs for over 20 years. KSL News anchor, Bruce Lindsay spoke and said about those award winners, “Entrepreneurs are visionary, they are generous and they are inspired.”
I agree with Mr. Lindsay on all accounts. The Bible states, “Without vision, the people perish.” Where would the world be today if people had no vision? Cooked food would not have happened. The first wheel would not have been invented. Electricity, TV, the phone, the airplane, cars nor computers would have been invented. The list is endless.
You and I do not have to invent the next BIG thing, but if you or I want to become an entrepreneur we must have some vision on how to improve a widget, make life easier or provide a solution for a demand that is not being met.
If you feel you have the vision to become one, a few other important personal characters you must have are passion to become a business owner, a relentless drive to succeed and a willingness to work hard. Then the hardest part seems to be, going out and trying, and then trying again!
If you feel you have the above character traits, there is one other VERY important item a person MUST have before becoming an entrepreneur. It is something you have very little control over, but is essential and it is NOT money.
If you really want to be an owner of your own business, watch for next week’s blog.
I agree with Mr. Lindsay on all accounts. The Bible states, “Without vision, the people perish.” Where would the world be today if people had no vision? Cooked food would not have happened. The first wheel would not have been invented. Electricity, TV, the phone, the airplane, cars nor computers would have been invented. The list is endless.
You and I do not have to invent the next BIG thing, but if you or I want to become an entrepreneur we must have some vision on how to improve a widget, make life easier or provide a solution for a demand that is not being met.
If you feel you have the vision to become one, a few other important personal characters you must have are passion to become a business owner, a relentless drive to succeed and a willingness to work hard. Then the hardest part seems to be, going out and trying, and then trying again!
If you feel you have the above character traits, there is one other VERY important item a person MUST have before becoming an entrepreneur. It is something you have very little control over, but is essential and it is NOT money.
If you really want to be an owner of your own business, watch for next week’s blog.
Wednesday, June 15, 2011
Message from Bill Gates
The following story about Bill Gates came out a few years ago. It might or might not be true and does not matter, but it is worth repeating since I believe in its message. Its message is really for all of us and especially for those that feel entitled to other people’s success, time or money.
Bill Gates' Message on Life:
For recent high school and college graduates, here is a list of 11 things
they did not learn in school. In his book, Bill Gates talks about how
feel-good, politically correct teachings created a full generation of
kids with no concept of reality and how this concept set them up for failure in
the real world.
RULE 1......Life is not fair; get used to it.
RULE 2......The world won't care about your self-esteem. The world will expect
you to accomplish something BEFORE you feel good about yourself.
RULE 3......You will NOT make 40 thousand dollars a year right out of
high school. You won't be a vice president with a car phone until you
earn both.
RULE 4......If you think your teacher is tough, wait till you get a boss.
He doesn't have tenure.
RULE 5......Flipping burgers is not beneath your dignity. Your
grandparents had a different word for burger flipping; they called it
opportunity.
RULE 6......If you mess up, it's not your parents' fault, so don't whine
about your mistakes, learn from them.
RULE 7......Before you were born, your parents weren't as boring as they are
now. They got that way from paying your bills, cleaning your clothes and
listening to you talk about how cool you are. So before you save the rain
forest from the parasites of your parents' generation, try delousing"
the closet in your own room.
RULE 8......Your school may have done away with winners and losers, but life
has not. In some schools they have abolished failing grades; they'll give
you as many times as you want to get the right answer. This doesn't bear the
slightest resemblance to ANYTHING in real life.
RULE 9......Life is not divided into semesters. You don't get summers
off, and very few employers are interested in helping you find
yourself. Do that on your own time.
RULE 10.....Television is NOT real life. In real life people actually
have to leave the coffee shop and go to jobs.
RULE 11.....Be nice to nerds. Chances are you'll end up working for one.
Bill Gates' Message on Life:
For recent high school and college graduates, here is a list of 11 things
they did not learn in school. In his book, Bill Gates talks about how
feel-good, politically correct teachings created a full generation of
kids with no concept of reality and how this concept set them up for failure in
the real world.
RULE 1......Life is not fair; get used to it.
RULE 2......The world won't care about your self-esteem. The world will expect
you to accomplish something BEFORE you feel good about yourself.
RULE 3......You will NOT make 40 thousand dollars a year right out of
high school. You won't be a vice president with a car phone until you
earn both.
RULE 4......If you think your teacher is tough, wait till you get a boss.
He doesn't have tenure.
RULE 5......Flipping burgers is not beneath your dignity. Your
grandparents had a different word for burger flipping; they called it
opportunity.
RULE 6......If you mess up, it's not your parents' fault, so don't whine
about your mistakes, learn from them.
RULE 7......Before you were born, your parents weren't as boring as they are
now. They got that way from paying your bills, cleaning your clothes and
listening to you talk about how cool you are. So before you save the rain
forest from the parasites of your parents' generation, try delousing"
the closet in your own room.
RULE 8......Your school may have done away with winners and losers, but life
has not. In some schools they have abolished failing grades; they'll give
you as many times as you want to get the right answer. This doesn't bear the
slightest resemblance to ANYTHING in real life.
RULE 9......Life is not divided into semesters. You don't get summers
off, and very few employers are interested in helping you find
yourself. Do that on your own time.
RULE 10.....Television is NOT real life. In real life people actually
have to leave the coffee shop and go to jobs.
RULE 11.....Be nice to nerds. Chances are you'll end up working for one.
Monday, June 6, 2011
Get out of your Box!
Too many times we sell ourselves short when it comes to breaking away from the job which holds us hostage. We stay when we should leave…..generally because of pressures from those that have never ventured outside their little box. Most of us have a parent, brother, friend, work associate or banker which tells you that you are making a mistake if you leave the security of your full time job. For their whole life they have worked in their little box, they do not want you to leave for fear you will make them look foolish. Every time you come up with an idea for a business or try to venture out, you hit the same resistance and most people back away to never do anything.
When I started my first franchise business, most of my family thought I was crazy, my coworkers laughed at me when I asked them to become partners with me. When I told my friends I had this idea and asked if they want to be a part of it, they said, “No thanks.” The banker who was helping me with my SBA loan, said he did not think I could pay back the loan and expected to take my home when he foreclosed on me in a year or two.
Thank goodness my wife believed in me. She was the only one to fully support me and my idea. A few years later not only did I pay off the bank loan, I paid off my house.
The resistance we hit every time we try to get out of the box can hold us back from doing great things in life. Pretty soon we quit trying to fly away and when we should explore what the world has there for us. If we keep banging our heads against the discouragement around us, we quit. We give up!
Watch this short video on how to train a flea. There is great meaning with it.
Don’t let others keep you penned in when freedom is so close. So what if you bang your head a few times. If you DON’T listen to those “who have never done it” you will be able to have a better chance of finding success in almost everything you do in life. If you want to be the best dancer in the world, singer, athlete or even entrepreneur, train with those who are successful, not with those who have failed.
When I started my first franchise business, most of my family thought I was crazy, my coworkers laughed at me when I asked them to become partners with me. When I told my friends I had this idea and asked if they want to be a part of it, they said, “No thanks.” The banker who was helping me with my SBA loan, said he did not think I could pay back the loan and expected to take my home when he foreclosed on me in a year or two.
Thank goodness my wife believed in me. She was the only one to fully support me and my idea. A few years later not only did I pay off the bank loan, I paid off my house.
The resistance we hit every time we try to get out of the box can hold us back from doing great things in life. Pretty soon we quit trying to fly away and when we should explore what the world has there for us. If we keep banging our heads against the discouragement around us, we quit. We give up!
Watch this short video on how to train a flea. There is great meaning with it.
Don’t let others keep you penned in when freedom is so close. So what if you bang your head a few times. If you DON’T listen to those “who have never done it” you will be able to have a better chance of finding success in almost everything you do in life. If you want to be the best dancer in the world, singer, athlete or even entrepreneur, train with those who are successful, not with those who have failed.
Sunday, May 29, 2011
Dare mighty things!
Teddy Roosevelt said:
"Far better is it to dare mighty things, to win glorious triumphs, even though checkered with failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the grey twilight that knows no victory nor defeat."
We can sit back, watch the world go by, grow old and never take a chance in life. When all is said and done, we can look back and wonder if we did our best to make a mark in the world or did we do nothing other than just work and exist. When we die will we have our name erased without anyone knowing we were there?
There is nothing wrong with trying to make a difference. Even if we fail a few times, we have only failed if we quit. Wither it is raising a family or starting a business, we only fail if we do not try.
"Far better is it to dare mighty things, to win glorious triumphs, even though checkered with failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the grey twilight that knows no victory nor defeat."
We can sit back, watch the world go by, grow old and never take a chance in life. When all is said and done, we can look back and wonder if we did our best to make a mark in the world or did we do nothing other than just work and exist. When we die will we have our name erased without anyone knowing we were there?
There is nothing wrong with trying to make a difference. Even if we fail a few times, we have only failed if we quit. Wither it is raising a family or starting a business, we only fail if we do not try.
Thursday, May 19, 2011
Little things are important
Before reading my comments on today’s blog, click on the video and watch it. Follow it’s instructions for it will teach you a valuable lesson. It only takes a minute.
Many times we cannot see the forest because of the trees. There are times when something is right in front of us but because we are asking the wrong question, looking for something which is not there or is there but we are blinded and we could miss out on something very important.
When deciding if our idea or concept can work, many times we can be blinded because of the excitement or blinded because of a preconceived notion. If we get too excited or we believe something which might be untrue, we might miss the gorilla in the room. One of the reasons it is so important to make a written business plan is to look at all the good and bad. Knowing where we are going, how to get there and not taking short cuts is important.
A friend of mine wanted to start a small business very bad. He had a good idea, but he did not follow the plan I had suggested for him. He jumped 4 steps ahead without taking the steps in between. He failed. If he would have done steps 2 and 3 he would probably have succeeded for he had a great idea.
Paying attention to detail, following our plan without skipping ahead, can be the difference between success and failure. Knowing if there is a gorilla in the room or if the color of the drapes is changing could be a game changer.
Many times we cannot see the forest because of the trees. There are times when something is right in front of us but because we are asking the wrong question, looking for something which is not there or is there but we are blinded and we could miss out on something very important.
When deciding if our idea or concept can work, many times we can be blinded because of the excitement or blinded because of a preconceived notion. If we get too excited or we believe something which might be untrue, we might miss the gorilla in the room. One of the reasons it is so important to make a written business plan is to look at all the good and bad. Knowing where we are going, how to get there and not taking short cuts is important.
A friend of mine wanted to start a small business very bad. He had a good idea, but he did not follow the plan I had suggested for him. He jumped 4 steps ahead without taking the steps in between. He failed. If he would have done steps 2 and 3 he would probably have succeeded for he had a great idea.
Paying attention to detail, following our plan without skipping ahead, can be the difference between success and failure. Knowing if there is a gorilla in the room or if the color of the drapes is changing could be a game changer.
Friday, May 13, 2011
A Book and a Thought to change your Life!
There is nothing wrong with the direction you are going, if you like where you are headed. One way or another you’re going to get somewhere. For those with direction, goals and a purpose, have a better chance of ending at a place more desirable than those who don’t.
There have been maybe five books I have read which have made a major impact on my life. All have been self improvement type books with two of them being the most popular books in the World. I won’t be talking about those today, but the one I am talking about can touch people spiritually, physically and financially.
In my opinion “debt” can destroy people, lives, marriages and many times can create unhappiness. Sometimes some debt cannot be avoided, but getting out of debt as soon as possible, not using credit cards and paying cash for items is the smart move.
One of my top five books would be “Total Money Make Over” by Dave Ramsey. This book can change your life if you read and then practice what is taught. In my opinion, everyone should read this book before they get married. It can save a lot of heartache that doesn’t need to be there.
What does this have to do with entrepreneurism? Simply put, if you can’t afford it then you shouldn’t do it. Starting a business should be done in baby steps and a person should NOT put all their eggs in one basket. Walk before you run. Start small and test the market before taking the big leap. Prove the business can work before wasting your money.
Knowing where you want to go financially in your own home or in your own business is very important. What are your goals? How are you going to get there? Know where you are headed, otherwise you might end up in a place you don’t want to be.
Monday, May 2, 2011
You can DO IT!
If I am not for myself, then who will be for me? And if I am only for myself, then what am I? And if not now, when?"
--Hillel the Elder
Don’t wait for someone to show you how to make your first million for it will never happen, just go out and do it. Who has the next great idea? Why not you? Don’t let someone tell you it can’t be done. What do they know? Most people who tell you it can’t be done, have never done it. Those that say it can’t be done do not have the courage it takes to be an entrepreneur, inventor or business owner.
If you don’t have the courage to fail and get back up again, then you should stay in your little office and keep working for others your whole life. There is nothing wrong with that, if that is what’s going to make you happy.
If you only want to become wealthy for yourself, then “who are you?” If you are willing to do it for others as much as for yourself, then you are headed in the right direction.
Boyd K. Packer once said, “Things that don’t change, remain the same.”
You and I can keep doing what we have been doing and we’ll continue being what we have been in the past. If you or I want something different, we must choose a different path otherwise we stay the same.
As Hillel the Elder said, “And if not, when?”
If you decide to change, do your homework, then do it NOW! Don’t let negative people control your life. You can do it!
Tuesday, April 26, 2011
Are you a Trekie? It could save you.
If you were ever a Trekie, you will really appreciate the following episode anecdote, but if you have never been one, it still gives a great message about not giving up.
Certain crew members, including Spock, McCoy, and Scott, were part of a shuttle crew lost in space and trapped on a planet without communications. Facing immediate annihilation from the inhabitants of that world, 6 survivors just worked desperately to get the shuttle airborne and back into space. The assumption was that the mother ship, the Enterprise was long gone, and that their life expectancy would be about 2 days based upon fuel and life support before orbit decayed and they burned up in the atmosphere. But they were as good as dead if they stayed another hour on the surface.
Shortly after they were in orbit in the upper atmosphere, Spock suddenly, apparently insanely, ejects the two remaining fuel tanks and detonates them -- leaving them all about 10 minutes to live. McCoy who couldn't stop him just shouts, "Why Spock, why?!" A moment later, Scott's face shines in a big smile, "Why Mr. Spock, you sent up a flare. -- Aye, it was a good gamble." Spock just stares forward blankly and replies, "It was illogical. There's no one out there to see it."
The mother ship the Enterprise was running out of time to leave on an urgent mission to a colony, and the assumption that it was gone was very solid. However, Kirk used every conceivable stall in the book until an accompanying commodore threatened to take command of the ship and probably court martial Kirk if he didn't abandon the crew members and get moving. Still delaying till the last possible moment, he slowed their exit to a crawl as well and ordering scanning to continue even as they were pulling away from the planetary system. Sure enough, they pick up the detonations, and beam the 6 aboard a moment before the shuttle burns up.
When McCoy accuses Spock of a purely emotional act of desperation, Spock points out and Kirk agrees, that under the circumstances (what are two days going to do for you compared to a shot at a full future life), his action was actually the most rational course to pursue.
I know this is a stupid little story, but it has a message. Who knows where you might be in this story. Are you running out of air? Are there rumors of a lay off? Are you living on unemployment? Doing something or make a stand before you get to a serious point in your life, would be the smart move. Plan ahead, brain storm, build a business plan, just do something before you are desperate!
Could becoming a business owner be like Captain Kirk beaming you up at the last second? The problem is not starting a business, for it can happen quickly, but being successful usually takes time and hard work. Becoming an entrepreneur might or might not be your answer, but until you have the facts, do your home work and do your test runs, you’ll never know. Get started on your idea sooner than later, for later might be too late. If you wait too long you will not get beamed up to the Enterprise, for it only can stick around so long.
Wednesday, April 20, 2011
Believe!
Many people do not believe they have what it takes to be successful. Some don’t, but most do. One of the most important things you can do to be successful is believe in yourself. If you don’t believe you can do it, you can’t.
Here on this link is a short story of someone who believes. If this doesn’t inspire you, nothing will.
Check it out: http://www.wimp.com/watchingthis/
Let me know what you think.
Monday, April 18, 2011
Do not let FEAR control your life
Most of us have developed some wonderful skills throughout our lifetime that would really help us in becoming successful in running our own business. Believing in ourselves and overcoming the fear most of us experience, many times is easier said than done. One way to overcome the fear is to NOT make a decision until you have done your home work. The statement, “Knowledge dispels fear” is true.
Most of us are too afraid to become an entrepreneur, but if we do it the right way, it is not so intimidating. Come up with an idea, learn everything you can about the product or service and if it still makes sense, test the waters with baby steps. Do not quit your job or put all your net worth into something without doing your homework. Test market your idea a number of times in a number of ways, starting small and working your way up before jumping in head first.
There is a great book that teaching how to overcome fear. It is called, "Feel the Fear and Do It Anyway." This is one of a few books every entrepreneur should read.
Fear should NOT control our lives. Knowledge will dispel the fear. Gain your knowledge then make a well educated decision. If you decide to start a business after doing your homework, don’t look back. Move forward and just make it work!
Monday, April 11, 2011
Do you need Passion?
I once read an article which was titled, “Do what you love and starve”. Too many times people are looking for the perfect business which will give them both “passion” and “profits”. Usually those businesses don’t exist. Because of this they will never find the perfect business and never become an entrepreneur. Sometimes they think they have found one that they can be passionate about, but they end up never making any money. Their passion can become old rather quickly if they are not making money.
Generally if it is a business they can love, everyone wants to do it. If everyone wants to do it, the price for the product or service is driven down and no one makes any money.
Warren Buffet said,
“Dull companies with steady earnings growth may not make for stimulating cocktail party chatter but over the long haul, they make the best investments.”
There is a reason why “dull companies” are the ones making money. In the book, The Millionaire Next Door, the author describes how owners of the dull companies are generally the ones making the money.
In my opinion people should have a passion for being an entrepreneur, owing their own business and controlling their own destiny and NOT necessarily a passion for the product. Personally, I would much rather be making a good income, work 40 hours a week (with a dull company) and spend time in the evenings and weekends with my family. Working 80 hours a week running a fun restaurant or bicycle shop and NOT make any money will not work for very long.
If you want to get ahead in life, it might be wise to listen to Warren Buffet. He seems to know what he is doing.
Thursday, March 31, 2011
Employers VS Employees
EMPLOYERS VS EMPLOYEES
Have you ever wondered why some people own businesses and others just work for those businesses? What separates people? What makes the difference?
For our purposes today, let us just classify all those who work for someone as EMPLOYEES. May we, also, take the liberty to classify all those who own a business as EMPLOYERS.
What kind of an individual is an EMPLOYER? I strongly believe they are the kind of people who see an opportunity, possess the commitment, and have the guts to go for it. That opportunity may have some obstacles, but the employer sees through them. He knows there will be challenges and even welcomes them. Why? Because, in the end, it reduces his competition as others won’t be so bold and entrepreneurial to tackle those problems. Thus, an employer is one who sees an opportunity, and through his own hard work and the work of his employees, constructs the foundation of a thriving business. Over time, as he becomes more comfortable with employees assuming more of the daily operations, the employer is able to slowly step away from the business, thereby creating a valuable asset that is working for him. He envisioned the end results from the beginning and worked toward establishing that business. Minor challenges were smoothed over, the business opened, and soon the employees provided him with a nice and comfortable living.
What kind of an individual is the EMPLOYEE? He is one who would love to be an employer, but sees too many problems in his way. He just wasn’t lucky enough to have found that perfect business like his employer. He discusses matters of the company with other employees, and usually they discuss how they could drastically improve the bottom line. They see all kinds of things wrong with the company and wonder why changes aren’t made. Meanwhile, they continue to punch their timecard, the employer continues to make money off their efforts, and they wonder why the stars have never been perfectly aligned for them to realize their dream; never imaging that the stars have never been perfectly aligned for anyone, including their employer.
Employees vs. employers are much like dreamers vs. doers. Business owners see beyond the barriers of entry into business. Those same barriers block the employee’s vision keeping him in the labor force. The employee, however, continues to see himself as an employer. He just never had the commitment, vision, or the guts to make it happen!
By Brian Melaney
Business owner &
Mayor of West Haven, Utah
Tuesday, March 22, 2011
How 7 young men became millionnaires before 22 years old.
Many people doubt the power of entrepreneurism. Here is a link from Forbes talking about 7 different young men who have become millionaires before the age of 22. All of them did it will little money and all within the last year or two.
If these young people can come up with an idea, so can you. If you want information on how to make a good web site for less than $300, let me know. It might be your first step into becoming a millionaire.
Monday, March 21, 2011
Marketing your business
Marketing is the key to the success of any business. The old saying, "Without advertising, Nothing happens!" is true. Poor advertising is almost as bad as no advertising. Wasting money on the wrong marketing program takes away from getting your information out to the right customer. Free advertising is always best. Many businesses think that just by throwing money at any advertising and they will be fine. They then wonder why customers are not responding.
This video is the new way to advertise and costs very little. There are many other free ways to get your company in front of the customer. Feel free to call or email me for suggestions.
This video is the new way to advertise and costs very little. There are many other free ways to get your company in front of the customer. Feel free to call or email me for suggestions.
Monday, March 14, 2011
Why someone starts a franchise
Why would a doctor leave her practice and buy a “maid service” franchise? Why would a District Manager for “Best Buy” leave his job and buy a “computer service” franchise? Why would a “stay at home” mom decide to get back into the business world and purchase a “tax preparation” franchise?
Over the past couple of years I have helped these and other people find a franchise so they could follow their dreams. We all have our reasons to get out of the “rat race” of the sometimes mundane world that we live in.
Back in 1984, I felt I was being held captive by the corporate world. The pay checks were steady, but more importantly, I was just glad to have a job. I was handcuffed and shackled to my circumstances, which included a house payment, a car payment and providing a living for my wife and 4 children on a salary of $22,000 a year. There was a major personality conflict between my supervisor and myself. I eventually came to the realization that I was not happy working for someone else, that I was an entrepreneur at heart but was being held hostage by my environment. I knew I needed to escape. When you have a wife and children that you love and who depend on you, how can you dare bolt for freedom?
Every day, thousands of men and women find themselves asking the same question. How can I risk my job security and make a break when it could put my family’s well being in jeopardy? That question can make you do a lot of soul searching.
The answer to that question can be answered in many ways. Here is how I answered it. What good am I to my family, if I am angry, unhappy and miserable to be around? How can I contribute if I have nothing to look forward to when going to work? The Bible states, “with no vision, the people will perish.” To properly take care of my family, I knew I had to have vision about how the future could improve.
For months, my supportive wife and I brainstormed, dreamed and tried to create a vision of the future. It was not easy. We tried and tested many different ideas, to no avail. In order to try one of my potential businesses, we sold our house and moved out to a farming community. Even though the business didn’t work, we still enjoyed raising our small children in that environment.
One day while getting ready to leave for a wedding in Los Angeles, my ten year old son asked me if I would bring him back a “real” Dodgers baseball hat. Of course I promised I would. Due to the lack of the “real” Dodger’s caps in any store we visited, this ended up being a promise I could not keep. As my wife and I traveled home, we continued to brainstorm business ideas. Then an idea struck--we should open up a store that sold souvenirs of every fan’s favorite team. I was a Chicago Cub’s fan, my son a Dodgers’ fan and we lived in Utah. There had to be others like us that lived away from their favorite team, but would be interested in buying a hat or t-shirt to show their support. I really believed that we had a winning idea.
To make a long story short, I opened a small store in a local mall. It became successful rather quickly. I even had customers requesting my help in opening their own store. Within six months of opening my first Pro Image store, with the help of my brother, we began franchising. Our company grew rapidly and within 18 months we had 32 Pro Image stores open. By the time we sold the franchise chain nine years later, we had over 250 stores in 46 states and six countries.
This experience taught me how important it is to have someone helping you start a business. Seeing many others try to copy our concept and fail showed me there is a lot more to keeping a business open than just having a great idea. The Small Business Association (SBA) has stated that the chances of success for a franchise company are much greater than someone starting out alone and by themselves. I have read that the majority of non-franchised businesses are closed down within 5 years after starting, whereas in franchising it has been reported after 10 years that most franchised concepts remain open. To me, it is almost a no brainer. Do you want to be open and making money, or closed, having lost your investment.
The reason doctors, bankers, accountants, corporate management and others decide to get out of the “rat race” and break away from those holding them back is to gain their freedom and be their own boss. It is a dream for most of us, to control our own destiny. Hundreds of thousands of people have found that by buying a franchise, they get help in advertising, hiring, management, inventory, start-up procedures, major product discounts among other bonuses. They therefore avoid costly mistakes most independent owners make.
What did I do after starting and then selling two franchise companies? My son, the Dodger’s fan who had just received his MBA, and I purchased three franchises from a local franchise company. If I am going to risk my money, I am not going to reinvent the wheel. I have always said that getting help from a franchisor is the smart way to go. I am just putting my money where my mouth is.
Over the past couple of years I have helped these and other people find a franchise so they could follow their dreams. We all have our reasons to get out of the “rat race” of the sometimes mundane world that we live in.
Back in 1984, I felt I was being held captive by the corporate world. The pay checks were steady, but more importantly, I was just glad to have a job. I was handcuffed and shackled to my circumstances, which included a house payment, a car payment and providing a living for my wife and 4 children on a salary of $22,000 a year. There was a major personality conflict between my supervisor and myself. I eventually came to the realization that I was not happy working for someone else, that I was an entrepreneur at heart but was being held hostage by my environment. I knew I needed to escape. When you have a wife and children that you love and who depend on you, how can you dare bolt for freedom?
Every day, thousands of men and women find themselves asking the same question. How can I risk my job security and make a break when it could put my family’s well being in jeopardy? That question can make you do a lot of soul searching.
The answer to that question can be answered in many ways. Here is how I answered it. What good am I to my family, if I am angry, unhappy and miserable to be around? How can I contribute if I have nothing to look forward to when going to work? The Bible states, “with no vision, the people will perish.” To properly take care of my family, I knew I had to have vision about how the future could improve.
For months, my supportive wife and I brainstormed, dreamed and tried to create a vision of the future. It was not easy. We tried and tested many different ideas, to no avail. In order to try one of my potential businesses, we sold our house and moved out to a farming community. Even though the business didn’t work, we still enjoyed raising our small children in that environment.
One day while getting ready to leave for a wedding in Los Angeles, my ten year old son asked me if I would bring him back a “real” Dodgers baseball hat. Of course I promised I would. Due to the lack of the “real” Dodger’s caps in any store we visited, this ended up being a promise I could not keep. As my wife and I traveled home, we continued to brainstorm business ideas. Then an idea struck--we should open up a store that sold souvenirs of every fan’s favorite team. I was a Chicago Cub’s fan, my son a Dodgers’ fan and we lived in Utah. There had to be others like us that lived away from their favorite team, but would be interested in buying a hat or t-shirt to show their support. I really believed that we had a winning idea.
To make a long story short, I opened a small store in a local mall. It became successful rather quickly. I even had customers requesting my help in opening their own store. Within six months of opening my first Pro Image store, with the help of my brother, we began franchising. Our company grew rapidly and within 18 months we had 32 Pro Image stores open. By the time we sold the franchise chain nine years later, we had over 250 stores in 46 states and six countries.
This experience taught me how important it is to have someone helping you start a business. Seeing many others try to copy our concept and fail showed me there is a lot more to keeping a business open than just having a great idea. The Small Business Association (SBA) has stated that the chances of success for a franchise company are much greater than someone starting out alone and by themselves. I have read that the majority of non-franchised businesses are closed down within 5 years after starting, whereas in franchising it has been reported after 10 years that most franchised concepts remain open. To me, it is almost a no brainer. Do you want to be open and making money, or closed, having lost your investment.
The reason doctors, bankers, accountants, corporate management and others decide to get out of the “rat race” and break away from those holding them back is to gain their freedom and be their own boss. It is a dream for most of us, to control our own destiny. Hundreds of thousands of people have found that by buying a franchise, they get help in advertising, hiring, management, inventory, start-up procedures, major product discounts among other bonuses. They therefore avoid costly mistakes most independent owners make.
What did I do after starting and then selling two franchise companies? My son, the Dodger’s fan who had just received his MBA, and I purchased three franchises from a local franchise company. If I am going to risk my money, I am not going to reinvent the wheel. I have always said that getting help from a franchisor is the smart way to go. I am just putting my money where my mouth is.
Being an entrepreneur and finding a franchise
This blog is set up to give hope to those looking to get out of the rat race of the corporate world, for those dreaming of becoming their own boss by starting your own business. Becoming an entrepreneur is not for everyone and as a matter of fact is NOT for most people.
There are risks a business owner has to take which is not for the faint hearted. Can you imagine risking all or most of your net worth for your dream? If you lose, you are left without a home and can be deeply in debt. You just have to make sure you do not lose!
First, a person needs to have a deep passion and a good reason to break the model of working for others their whole life. Before starting or buying a business; do your homework, know the industry, understands your customer, have a plan and work on the skills to implement the plan. This will give you the best chance to be successful.
In my opinion the benefits of being the ‘owner and not the employee’ out way all the risks a person has to take. The chance at unlimited income, the chance to build equity, control of your own hours and the freedom of answering to no one but yourself and the pleasure of seeing your own business grow far out way the risks someone has to take. You just need to take away most of the risk by doing your research and know what you are getting into.
Remember "Knowledge is Power!"
There is a great business book on franchising called Street Smart Franchising. It talks about the good, the bad and the ugly of being a business owner. This book will help you look at yourself to determine if you might be one of the few who have what it takes to be an entrepreneur. If you have any thoughts of becoming one, it is a must read.
Also feel free to check out my web site at: FranchiseInvestigate.com to learn more about how to start a franchise business and why a consultant might be able to help you.
There are risks a business owner has to take which is not for the faint hearted. Can you imagine risking all or most of your net worth for your dream? If you lose, you are left without a home and can be deeply in debt. You just have to make sure you do not lose!
First, a person needs to have a deep passion and a good reason to break the model of working for others their whole life. Before starting or buying a business; do your homework, know the industry, understands your customer, have a plan and work on the skills to implement the plan. This will give you the best chance to be successful.
In my opinion the benefits of being the ‘owner and not the employee’ out way all the risks a person has to take. The chance at unlimited income, the chance to build equity, control of your own hours and the freedom of answering to no one but yourself and the pleasure of seeing your own business grow far out way the risks someone has to take. You just need to take away most of the risk by doing your research and know what you are getting into.
Remember "Knowledge is Power!"
There is a great business book on franchising called Street Smart Franchising. It talks about the good, the bad and the ugly of being a business owner. This book will help you look at yourself to determine if you might be one of the few who have what it takes to be an entrepreneur. If you have any thoughts of becoming one, it is a must read.
Also feel free to check out my web site at: FranchiseInvestigate.com to learn more about how to start a franchise business and why a consultant might be able to help you.
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