| This year more than 17 million people will become | | | | resources are insufficient or the cost is too great, |
| entrepreneurs, according to the National Association | | | | you need to rethink the goal. This does not mean to |
| of Self Employed (NASE). By the end of the year, 8 | | | | reject it as it may simply need to be tweaked |
| million of them will return to the corporate world | | | | slightly. If the goal is too soft, go back to step one |
| because their entrepreneurial effort did not succeed. | | | | and two and increase your expectation or shorten |
| Many will say the businesses failed because of | | | | the timing. If the second phase validates that the |
| insufficient capitalization. Actually under-capitalization is | | | | goal is possible, you can continue the road to |
| not the cause of failure, but a symptom of a far | | | | success!Assess your strengthsThe third component |
| more serious problem.Many experts will say that | | | | to position yourself for success is to assess your |
| undercapitalization is the main reason for the failure | | | | strengths. Assessments are done online by answering |
| of an entrepreneur to achieve the dream of having | | | | a series of questions to reveal your competitiveness, |
| their own business. They will point out that failing | | | | sales drive, persistence, and other aspects of your |
| entrepreneurs did not start with a large enough bank | | | | personality.When I started MaxImpact, a leadership |
| account to offset the period it takes before a | | | | and organization development company in Rochester |
| business is profitable. Statistics always back up this | | | | Hills, Michigan, I decided to take three different |
| theory because, sure enough, the money has run out | | | | assessments. To be honest, I took them because |
| before the business is profitable. Therefore, they | | | | they are a product offering of my company. |
| argue, the theory must be accurate.Hogwash!The | | | | However the information I learned was extremely |
| fact that capital ran out before a business is | | | | valuable. For example, the assessments showed that |
| profitable overlooks other factors having an impact | | | | I had a real challenge in cold-calling.They indicated I |
| on capital. Yes, the business failed because it ran out | | | | would always be reluctant to make the first call, but |
| of money, but under-capitalization is not the culprit. | | | | once I made one call I would find subsequent calls |
| Let me explain.In 1952, an interstate highway was | | | | would be easy for me. As a result I force myself into |
| built to bypass the town of Corbin, Kentucky. A small | | | | the first call by making it a "soft-call". By not allowing |
| motel owner saw this as potentially the end to his | | | | for interruptions, I can continue for dozens of |
| business so sold off his entire operation to pay | | | | additional calls.Assessments are an inexpensive way |
| outstanding debt. Penniless, he took his first social | | | | to enhance your ability to negotiate, close a sale, |
| security check of $105 and decided to use it to start | | | | make decisions and much more. They are a critical |
| a new business. With no other income, no savings to | | | | stop on the road to success.WHEN YOU'RE READY |
| draw on, this small check represented his only | | | | TO GOFind someone to hold you accountableIn |
| capitalization. He developed a product and traveled | | | | corporate America workers always have a supervisor |
| through the area looking for restaurant owners that | | | | to whom they are accountable. On the other hand, |
| would sell it, giving him just five cents for each one | | | | many entrepreneurs feel they are their own boss |
| sold. Twelve years later he sold his business for | | | | and do not need a "supervisor". This view overlooks |
| two-million dollars. Twenty years later the business | | | | the fact that even a corporation's CEO is held |
| would be sold again, this time for $840 million, with | | | | accountable to the Board of Directors.The reality is |
| the stipulation this entrepreneur would remain the | | | | that entrepreneurs with a mentor, accountability |
| spokesperson. It seemed appropriate because the | | | | partner, or one-on-one coach outperform their |
| inventor, a gentleman by the name of Colonel Harlan | | | | competitors. I gained some first hand experience |
| Sanders, had become one of the most recognized | | | | when I started to work with an entrepreneur in |
| people in the world.Dave and Lucile moved into the | | | | Colorado. We had a weekly telephone meeting to |
| first floor flat of a house at 367 Addison Avenue, | | | | share each other's goals and exchange ideas. Initially |
| Palo Alto, California. Soon, Dave would begin working | | | | the calls were nothing more than justifications as to |
| part-time in their garage with Bill, who rented the | | | | why we had not reached our goals from the prior |
| cottage behind the house. Together they had $538 in | | | | week. Eventually we both tired of making excuses |
| working capital and a used Sears-Roebuck drill | | | | and began challenging each other. We developed a |
| press.Bill had been studying negative electronic | | | | model that enabled us to be challenged to make real |
| feedback. They tinkered together and made a | | | | progress in our businesses. In a less than two months |
| gadget they called the audio oscillator which they | | | | we had become so busy it was difficult to schedule |
| called the 200A "because we thought the name | | | | our calls around our increased client appointments.We |
| would make us look like we'd been around for | | | | both continue to use our process to help others |
| awhile," says Dave later. The Walt Disney Company | | | | focus on moving themselves closer to reaching their |
| ordered eight oscillators, giving Bill and Dave's | | | | goals.DifferentiateRobert Middleton, the author of |
| company, Hewlett-Packard, the ability to grow into | | | | "Info Guru", says you must "differentiate or die". He |
| the corporation we know today.These are two of | | | | could not be more correct. Let's say you are one of |
| the more prominent mega-companies that were | | | | the hundreds of realtors in any given area. In a game |
| under-capitalized when they started. Smaller | | | | of numbers you will get a certain amount of business |
| companies share in success despite a lack of start-up | | | | regardless of what you do, but not enough to thrive. |
| capital.Steven and Bennique Blasini started BFX | | | | If you are patient you will pick up referrals from past |
| Imageworks in Hollywood in 2001 without any capital. | | | | customers, but still fall short of real success. Now |
| They lived off savings for six months and used their | | | | imagine that you are able to differentiate yourself. |
| existing home computers to build their business. In a | | | | Let's assume you live in a transient area where |
| few years they grew into a multi-million dollar | | | | people from another geography location, say Texans, |
| company, winning awards for their cinematography | | | | were constantly moving. If you were able to |
| work. | | | | establish yourself as someone who completely |
| These people have proven the secret to success is | | | | understood what a Texan was looking for in housing |
| not capital related. The secret lies within each of us. | | | | style, property amenities, and neighborhood assets, |
| Let's look at what it takes to be a success.BEFORE | | | | you would be able to shorten the time it took |
| YOU STARTSelect the right businessWhen the | | | | Texans to find the home of their desire. Now you |
| entrepreneurial bug bites, many people decide to do | | | | are differentiated.The Blasini's low overhead allows |
| what they have always done. Although this may | | | | them to work with smaller Hollywood Studios that |
| seem to be a logical step, it is not necessarily the | | | | cannot budget to work with the larger competitors. |
| best move. When selecting their entrepreneurial | | | | This is one of their success secrets.You need to find |
| venture, one must consider the lifestyle they desire, | | | | a significant way you add more value than your |
| the business location, what they have to invest in | | | | competition. Something as simple as, "I provide |
| their business, and how they can add value to the | | | | personal service" is not good enough. This type of |
| sea of people already in the same business in the | | | | statement solicits the response, "Well I should hope |
| same area.A friend of mine, Greg Doyle, coaches | | | | so." To make an impact your prospect needs to say, |
| people transitioning from the corporate or academic | | | | "Wow!"The bottom-line: if you cannot make a |
| worlds into the entrepreneurial world. He helps his | | | | compelling argument as to why someone should deal |
| clients discover a business that best matches their | | | | with you instead of your competitor, you are |
| goals. Greg finds that 95% of his clients end up | | | | operating with a huge handicap.AFTER YOU |
| discovering a business that they say they would | | | | OPENUnderstand best-in-class customer serviceMost |
| never had considered on their own, or that they had | | | | entrepreneurs feel they already know enough about |
| prematurely dismissed.Know how to turn dreams into | | | | customer service based on their own experiences as |
| goalsThis could very well be the biggest stumbling | | | | a consumer. The shortcoming of this belief is that |
| block for new entrepreneurs, and continues to be a | | | | they only know the specific things they have |
| struggle for experienced businesspeople.It is easy to | | | | conscientiously noticed. Best-in-class customer service |
| have dreams. Young girls dream about meeting a | | | | is more like elevator music - you don't notice it until it |
| handsome prince and having a magnificent wedding. A | | | | is missing.Customer relations are vital to the success |
| young boy becomes captivated by a sport and | | | | of a business. Every professional should personally |
| dreams about making the final play to win the | | | | understand how to deliver customer service that will |
| championship. A new entrepreneur dreams about | | | | not only retain their existing customers; it will create |
| opening their business and then retiring on the beach | | | | a customer base that is consistently telling others |
| in Maui. Why is it that only a small handful of people | | | | about what a great person or company you are to |
| attain these, or any dreams? The answer is really | | | | deal with.Best-in-class customer service is not a |
| quite simple; they know how to turn their dreams | | | | one-time lesson to be learned, it is a continuous |
| into goals.Success is a matter of taking a dream and | | | | learning process taking advantage of personal ideas |
| turning it into a goal. It is more than semantics. A | | | | coupled with the experiences of others.Putting it all |
| dream is a desire while a goal is an actionable plan.The | | | | togetherAlthough it would be naive to suggest capital |
| transition from dream to goal involves four steps:1. | | | | is not important in a business, having validated goals, |
| Assign measurable actions. Determine what needs to | | | | as mentioned here, are much more important. These |
| be done in pursuit of your dream. Be specific, listing | | | | goals are bolstered if the business has a personal |
| big actions first, then "chunk" the actions into the | | | | match to one's interests and desires, if a qualified |
| smaller components that will make them happen.2. | | | | accountability partner is enlisted, strengths are |
| Apply an element of time. Take each of the | | | | understood and exploited, and the entrepreneur is |
| measurable actions and assign a start and end date | | | | continually looking to increase knowledge and skills - |
| to it. It is acceptable to have more than one activity | | | | especially with regard to customer retention.Any |
| at the same time unless the task requires your full | | | | entrepreneur CAN succeed if they follow these six |
| attention.3. Examine your resources. Even people that | | | | steps, whether or not they take them in order. The |
| have mastered the first two steps falter at this step. | | | | key is to admit to yourself that no matter how |
| Examining your resources requires a hard look at | | | | successful you have been in the past, the world of |
| what you have at your disposal. Resource needs | | | | entrepreneurialism requires special knowledge and |
| could include licensing, knowledge, office or retail | | | | accountability. If you are entering into this very |
| space, materials, vendors, office supplies, a method | | | | rewarding world, make sure you get the help you |
| to receive and deposit income, bookkeeping, referral | | | | need.Rick Weaver is President of Max Impact, a |
| sources, and a variety of other possibilities. Be | | | | national leadership and organization development |
| extensive in your list of resource needs by thinking | | | | company based in Rochester Hills, Michigan. Rick is an |
| of different customers from the time you get their | | | | accomplished business executive with experience in |
| attention until post-sale.4. Examine the cost. Look at | | | | retail, market analysis, supply chain and project |
| both financial and opportunity costs required to | | | | management, team building, and process |
| achieve your goal. Financial costs include the cost of | | | | improvement. He has worked with hundreds of |
| opening and sustaining your business until it becomes | | | | companies to improve sales, processes, and |
| profitable. Opportunity costs refers to what you will | | | | bottom-line results. MaxImpact offers leadership and |
| have to put on hold in pursuit of attaining you goal. | | | | organizational development services along with |
| For example, you may find that boosting your sales | | | | employee assessments and background checks. |
| will mean you forego a vacation next summer.If | | | | |