27 February 2014
26 February 2014
Time to take control of your own future?
World Economic Forum: Book review: The Economy of You. http://google.com/newsstand/s/CBIwkNLY4xE
25 February 2014
An excellent source of information on business locations in Europe
Thanks to Dante ULYSSES for this valuable link to a comprehensive document from Grant Thornton.
22 February 2014
All sensible suggestions for new start-ups
Inc. : 5 Common Startup Mistakes That Will Sink You Later. http://google.com/newsstand/s/CBIwkoCX7RE
What sort of entrepreneur are you?
http://blogs.hbr.org/2014/02/will-your-entrepreneurial-personality-sink-your-start-up/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29
18 February 2014
Don't create a business because you want to create a business
You will not be surprised to learn of how many people, especially students, tell be, "I want to create my own business." My usual response is, "Doing what?" Their most usual response is something like, "I am still looking for ideas" or "I want to work for a few years to get some experience and then decide what to do", or, "I don't have any money now." Sorry folks, but in my experience this type of response is a guarantee that either nothing will happen (ever), or, a business will be created that will fail at the first hurdle.
The secret of success in business is not really about ideas or experience, it is about passion for what you are doing, determination and persistence, and . . . . loving support from somewhere.
The best reason to create a business is that there is something you really, really want do do and you can't find any other way to do it but create a business. You have to be really passionate about what you are doing in order to overcome the problems, the tiredness, the frustrations, the failures. There will be, all too infrequent, flashes of triumph. They will have to serve you day-to-day, though your underlying belief in what you are doing will carry the day and bring you to success.
The need for persistence goes without saying. 'Rome wasn't built in a day", and neither will be your business. This is where the 'loving support from somewhere' comes in. A story: when I created my first consulting business back in 1983 (out of the necessity of staying at home to look after my very sick wife), I first took on any and all work (even some with the eventual promise of payment - they never did - more on this late). However, I was intrigued to notice that some of these embryonic businesses went ahead, others never did. What was the magic difference? It wasn't the ideas - ideas are two a penny and usually have little to do with success. It wasn't the availability, or not, of money - some of the most successful started with virtually none but attracted support because they got customers and credibility. It wasn't the business planning. While it is clear that - with my help - the level of planning was appropriate to the situation. It wasn't the skills and experience of the would-be entrepreneurs. Usually they were all knowledgeable enough in their chosen area to be successful, or they were able to get the help in areas of weakness. No, there was something else!
One day, to continue a lengthy business discussion with one of my clients, I was invited back to his home. So, I got to meet his wife and kids and to understand how important was their support to him in his plans for the future. To explain: he was a successful executive in a company controlled by his parents but now part of a larger group. He was well paid, he had a responsible and very enjoyable job, and a secure future. However, he was frustrated by the restrictions placed on him by his company and wanted to 'fly free' to develop his own business. When I broached the subject of the new business with the family, their response could not have been moving loving: "Yes, it will be hard, and uncertain, but we will find a way to make it happen" was the jist of their reaction. Yes, creating and running the business was tough, but it was a major success. After a very few years the business had a successful IPO on the secondary stock market in the UK, and went on to become a significant player in their market area.
Contrast this with another business that I was being asked to help create. In this case the meeting with the spouse was 'accidental.' The reaction was,"Oh that silly business! It will never happen!" Sorry to say, I decided to walk away from that one after only a few days.
Imagine: a really tough day a couple of months into committing to the new business - one of those days where nothing goes right (they happen!). It is late at night, the brand-new entrepreneur goes home, exhausted, dispirited, and uncertain. At home (I am drawing a very classical picture here): in one case there is a loving hug, a hot meal, and a promise from the spouse of help in the office to sort things out. In the second case, the main reaction is, "See, I told you this would happen!" Tell me: which of these two scenarios suggest a successful future?
I don't want to over-emphasize any one of these three elements: passion, persistence, support. They are the three legs that, together, keep the stool standing whatever weight is put on it.
The 'loving support' need not be from only one quarter: it may be a spouse or partner, a friend, a coach or consultant, . . . that person, or people, with whom you can talk about your dreams and fears without fear of ridicule, and with the expectation of a neutral - though sometimes critical - perspective. Being an entrepreneur can be a very lonely business. Find a way to make that loneliness bearable . . . .
The secret of success in business is not really about ideas or experience, it is about passion for what you are doing, determination and persistence, and . . . . loving support from somewhere.
The best reason to create a business is that there is something you really, really want do do and you can't find any other way to do it but create a business. You have to be really passionate about what you are doing in order to overcome the problems, the tiredness, the frustrations, the failures. There will be, all too infrequent, flashes of triumph. They will have to serve you day-to-day, though your underlying belief in what you are doing will carry the day and bring you to success.
The need for persistence goes without saying. 'Rome wasn't built in a day", and neither will be your business. This is where the 'loving support from somewhere' comes in. A story: when I created my first consulting business back in 1983 (out of the necessity of staying at home to look after my very sick wife), I first took on any and all work (even some with the eventual promise of payment - they never did - more on this late). However, I was intrigued to notice that some of these embryonic businesses went ahead, others never did. What was the magic difference? It wasn't the ideas - ideas are two a penny and usually have little to do with success. It wasn't the availability, or not, of money - some of the most successful started with virtually none but attracted support because they got customers and credibility. It wasn't the business planning. While it is clear that - with my help - the level of planning was appropriate to the situation. It wasn't the skills and experience of the would-be entrepreneurs. Usually they were all knowledgeable enough in their chosen area to be successful, or they were able to get the help in areas of weakness. No, there was something else!
One day, to continue a lengthy business discussion with one of my clients, I was invited back to his home. So, I got to meet his wife and kids and to understand how important was their support to him in his plans for the future. To explain: he was a successful executive in a company controlled by his parents but now part of a larger group. He was well paid, he had a responsible and very enjoyable job, and a secure future. However, he was frustrated by the restrictions placed on him by his company and wanted to 'fly free' to develop his own business. When I broached the subject of the new business with the family, their response could not have been moving loving: "Yes, it will be hard, and uncertain, but we will find a way to make it happen" was the jist of their reaction. Yes, creating and running the business was tough, but it was a major success. After a very few years the business had a successful IPO on the secondary stock market in the UK, and went on to become a significant player in their market area.
Imagine: a really tough day a couple of months into committing to the new business - one of those days where nothing goes right (they happen!). It is late at night, the brand-new entrepreneur goes home, exhausted, dispirited, and uncertain. At home (I am drawing a very classical picture here): in one case there is a loving hug, a hot meal, and a promise from the spouse of help in the office to sort things out. In the second case, the main reaction is, "See, I told you this would happen!" Tell me: which of these two scenarios suggest a successful future?
I don't want to over-emphasize any one of these three elements: passion, persistence, support. They are the three legs that, together, keep the stool standing whatever weight is put on it.
The 'loving support' need not be from only one quarter: it may be a spouse or partner, a friend, a coach or consultant, . . . that person, or people, with whom you can talk about your dreams and fears without fear of ridicule, and with the expectation of a neutral - though sometimes critical - perspective. Being an entrepreneur can be a very lonely business. Find a way to make that loneliness bearable . . . .
17 February 2014
An alternative view on Business Plans
My friend, Mithun SRIDHARAN (Twitter), argues that the business plan is a waste of time and encouraged me to look at this article from the Inc. website. I agreed with the article, and Mithun, that the focus should be on getting started (an approach I recommended in an article in this blog a while back), on the team, and especially on getting initial sales. However, it sometimes help to find a way to articulate those ideas, and to get input from others. OK, full disclosure: for may years I made most of my income, and still get some, from advising start-ups, and re-ups (my term for firm looking for a new start). For many of these, seeking external funding, a business plan of some sort is usually a requirement. However, my preferred initial approach is mid-way between the 'no business plan' approach that Mithun suggests, and the full BP beloved of entrepreneurship classes. I suggest the Concept Paper. This is a short - maybe two pages long - document that articulates the key points of the business idea, the business model, and, (here I agree with the article from Mithun) about the people that will make it work and why them. Whatever they may say publicly, most 'investors' are essentially investing in the people - the founders - of the business; looking to see what drives them, and how they will react when things go wrong (as they will). So, rather than pushing you to another link, here is my original article in full:
2. Do not start by creating a Business Plan. Start by creating a two page Concept Paper: two pages is too short to be a Business Plan, but too long to allow you to BS. In the Concept Paper, be sure to include the following:
(a) The Big Idea (what is it that you want to do)
(b) The business model (how do you make money)
(c) Why you? (What expertise to you have, or plan to get that will ensure that you have the knowledge of the business/industry)
(d) Who are the customers? (who will buy the product or service that you are offering, at the price you want to charge?)
(e) Why will they buy? (where is the gap in the market that suggests you might have the chance to actually get customers?)
(f) What will be your legal structure? (Different countries have different rules. We will have information by country for freelancers - check it out. In any case you need to have an idea about how you will operate from a legal and fiscal standpoint)
(g) What will you do for resources while the new business is building to a point where you can be, at least, self-supporting?)
Write out your concept paper. Get down as much of this as you can, then share it with a mentor. Someone who will give you honest feedback. Sorry to say, but family members are often not objective enough. Find a professional coach, or mentor. The idea is to use the Concept Paper as the basis for dialog between you and one or more mentors. Let them ask questions: "What do you mean by . . . . ?". "How does this work in practice?". The idea of the dialog is to get inputs that will allow you to refine, improve, clarify, your ideas to the point where everything seems to hang together, and to make sense. This may take three or more rewrites of the Concept Paper. Frustrating, perhaps, but better to have the frustrations now before you commit, than to go forward with vague ideas, and have mega frustration later. Once the Concept Paper makes sense, with no missing links, that is the time to draft a Business Plan, with some financial stuff to help validate your ideas in operational and financial terms.
So, you want to start a new business?
Don't write a Business Plan (yet!)
1. Do not create a business because you want to create a business. Create a business because there is something that you want to be involved in and the only way you can do that is to create a business. And, make sure that you are fascinated by the business. The first years can be hard, and the rewards few. If you do not love what you are doing it will be too easy to give up. Success with a new venture requires passion and persistence.2. Do not start by creating a Business Plan. Start by creating a two page Concept Paper: two pages is too short to be a Business Plan, but too long to allow you to BS. In the Concept Paper, be sure to include the following:
(a) The Big Idea (what is it that you want to do)
(b) The business model (how do you make money)
(c) Why you? (What expertise to you have, or plan to get that will ensure that you have the knowledge of the business/industry)
(d) Who are the customers? (who will buy the product or service that you are offering, at the price you want to charge?)
(e) Why will they buy? (where is the gap in the market that suggests you might have the chance to actually get customers?)
(f) What will be your legal structure? (Different countries have different rules. We will have information by country for freelancers - check it out. In any case you need to have an idea about how you will operate from a legal and fiscal standpoint)
(g) What will you do for resources while the new business is building to a point where you can be, at least, self-supporting?)
Write out your concept paper. Get down as much of this as you can, then share it with a mentor. Someone who will give you honest feedback. Sorry to say, but family members are often not objective enough. Find a professional coach, or mentor. The idea is to use the Concept Paper as the basis for dialog between you and one or more mentors. Let them ask questions: "What do you mean by . . . . ?". "How does this work in practice?". The idea of the dialog is to get inputs that will allow you to refine, improve, clarify, your ideas to the point where everything seems to hang together, and to make sense. This may take three or more rewrites of the Concept Paper. Frustrating, perhaps, but better to have the frustrations now before you commit, than to go forward with vague ideas, and have mega frustration later. Once the Concept Paper makes sense, with no missing links, that is the time to draft a Business Plan, with some financial stuff to help validate your ideas in operational and financial terms.
More on concept papers
Discussing the concept paper approach with one of my students
today (M) we agree that sometimes it helps to jot down some numbers in
the concept paper just to see if the concept hangs together. We were
discussing an internet idea where the revenue stream depended mainly on
the click-through rate from ads. A few quick numbers showed that the
original concept was a non-starter. This one of the key rationales for
the concept paper. Dialog and work towards a working solution. Your
comments?
15 February 2014
Good prospects for start-ups on Greece
http://www.dw.de/greek-start-ups-a-success-story-amid-the-crisis/a-17421665
14 February 2014
How to make friends and influence people
http://www.inc.com/minda-zetlin/10-secrets-to-influencing-absolutely-anyone.html?cid=sf01002
13 February 2014
A very useful and comprehensive resource for start-ups
Hey folks, although this is labelled about starting a business in Berlin (a great place to do so, BTW), is is one of the most comprehensive resources I have ever seen on the subject. I recommend you to download it here!
Starting a new business in Germany
The German authorities do a very good job of encouraging people to create new businesses (perhaps this is one of the reason why Berlin is said to be the 'internet start-up capital of Europe'). Here is a comprehensive government site in English that will help.
Cautionary tales: but love what do and you may succeed . . .
Is being an entrepreneur a nightmare? http://www.bbc.co.uk/news/business-26030270
12 February 2014
Systematize, simplify, and focus!!
Fast Company: Always Wear The Same Suit: Obama's Presidential Productivity Secrets. http://google.com/producer/s/CBIw28qdjxE
Never give up!
Fast Company: 5 Famous Entrepreneurs Who Learned From Their First Spectacular Failures. http://google.com/producer/s/CBIwzI_6jxE
08 February 2014
Would-be entrepreneur: the best 56 minutes you will ever invest
https://www.youtube.com/watch?v=OjYceP2Fup4&feature=youtube_gdata_player
07 February 2014
Starting your own business - you will not be alone
See the infographic on how important small businesses are in the US (as an example).
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