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.
Saturday, October 15, 2011
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.
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