Three Reasons Entrepreneurs Fail

By Scott Schreiber

While ins the real world there are numerous facts behind the reasons that entrepreneurs fall short. The three I have listed here have a lot to do with it and frankly the third one encompasses the initial two.

What I find fascinating is that I see inventors and business people who would like to be entrepreneurs start with an concept that hasn’t been tested or proven out at any level in the market before they charge off and spends thousands of dollars to develop the next great solution to a problem that doesn’t exist. Sadly, they do not know whether they have a large enough marketplace to maintain the cost of developing that product and bringing it to market, let alone just how much competition they have or what the particulars need to be to satisfy industry needs.

With numerous straightforward tools to work with and available today. it is senseless to not perform at the very least some basic homework to better know you marketplace before you invest capital into an idea that may only accomplish one thing, Making You Broke! If all you did was take a look at Google’s keyword tool, you would be able to see how many individuals are looking for a specific keyword (or set of words), and how much competition exists for that keyword. That’s information that a great many marketers in the 70′s and 80′s paid a lot of money to uncover and you can acquire it at no cost in approximately five minutes.

If you do this, some simple arithmetic will tell you pretty fast if you have a shot. If there are 300 people searching for the key terms associated with your product and you take a look at other web sites and see competitive products selling at $4.00 each and you already know it’s going to cost you $3.95 to manufacture your product, it could be time to go back to the drawing board.

No Planning

OK, so let’s say you find that there’s a marketplace for your product, you see that 10,000 people are clicking on a set of key phrases, the competition isn’t too bad, you feel you’ll be able to validate that your product is unique enough to make a difference and you are feeling you’ll be able to manufacture it at a profit. That’s a good foundation (I would still advocate a bunch more research, but that’s just me).

Now you need to be able to determine how to get your product made, where to get your product made, the amount it will cost, how you will market it, how many you think that you can sell with your advertising and marketing program, why you think you’ll sell that many with the competition breathing down your throat. And Last but not least, how much revenue you will make if you hit your goals.

Lack of doing this kind of exercise will move your company from the skill based business to a business driven by luck. With only 1 out of 5 business’s surviving the first year a lack of a very good plan almost seems like you are taking your company on a suicide run. For those investing your hard earned cash, and aren’t willing to take some time to plan, my suggestion would be to offer it to me. I’ll benefit from using it so you’ll get some satisfaction, rather then watching the daily surprises of business take you down.

One additional point on this, lack of planning deals with too little success and too much success as well, either way can damage your business. A restaurant with a fantastic review, gets a lot more customers, but when they get too many and aren’t ready for it, their product quality and service will suffer, making it a not so great restaurant.

No Money

Thinking of trying to build your company on a shoestring, not such a good idea. This is considered probably the most common reasons that companies fall short. When you do create a plan you have to add in a minimum 20% for stuff you didn’t think about. Believe me, you will find out soon enough what that stuff is. It is going to show up on your doorstep about a day after you officially establish your business and will keep coming. As you gain knowledge of and understand your business, you will require less capital to deal with surprises, but in the early days, expect them to show up a lot.

You also should have enough money to deal with errors and bad decision. By the way, in case you are wondering, you will make a few bad decisions, every business owner does, no matter how good they seem to be. The truth is the really smart ones are usually so smart because they learned from their mistakes. The ones that aren’t so swift are the ones that like to repeat the identical mistakes over and over.

But insufficient funds will take you down hard and fast, when your out of money or low on money, you waste more time on#trying to cover your bills then on building your company. Generally it will result in poor decision making. In some cases it leads to unethical practices, which will (and should) lead to the demise of an organization. It is extremely hard to recover and compete when you’re low on cash, and once it’s gone, well the dance is over.

So if you are serious about this entrepreneur thing, make sure you have adequate funds available based on a first rate plan developed around a solid knowledge that there is a marketplace for your product.

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5 Tips to Engage Business Professional Learners Using Solution Focus

By Alan C Kay

I recently taught a group the first of a 3 day course on leadership and collaboration. I noticed they had a few of the ‘low energy’ moments that can happen in a daylong session. When this happens, the group is not getting full value from the learning. It’s the presenter’s responsibility to minimize the lows.

I had tried several approaches to maintain energy. At the end of the session I asked them, what worked and what could be better next time. They told me the session was fine, but I persisted in asking them what could have been better.

They said, “you gave us a few too many small group activities and work sheets — next time, could you answer more of our questions directly and work more from the slides?” I asked, “So, You want more instructive learning, vs. interactive learning?” They agreed and I thanked them for the input.

Learners give me some great feedback when I focus on them as ‘customers’. A great deal of their satisfaction/feedback comes from using interactivity and action learning tools. So what was different about this group? Every group is different — individually and collectively. At the start of our session together, I helped the learners set out their learning action goals, but we might have spent time assessing their preferred learning styles instead.

When you use solution focus in your teaching both as a learning tool and as a program content tool, your learners will notice a difference right away.

Here are a few Solution Focus tips for you to try out at your next presentation:

1. Assess what the participant’s preferred learning styles are by asking — when you had a great experience at a previous learning event like this, what worked?

2. Have learners talk about and scale their learning goals in the context of the work they will be doing in their workplace after the session. For example, I want to guide them in taking a more collaborative approach when we develop concepts.

3. Ask frequently — How do you see this being useful to you so far in the context of your work or with the issues you face?

4. Help them understand their accountability for the learning by asking — suppose you make the most of this learning at work, what will people see you doing to put it in action?

5. Do solution focus like role model exercises to let them see the learning and the ideas in action.

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Slow Start Cleaning Business

By Dolson McArt

A recent study showed that there has not been enough government support for start ups. In this study, there was a differentiation between the types of start-ups. However, there was no quantification between start-up types. It would have shown what the motivation was for these entrepreneurs in starting a business. With an economic downturn and an extended financial crisis, it seems that a lot of new start-ups come into being in order to feed the family. In short, these companies were started because the owner was eased out or laid off.

For a cleaning service, this is most probably true. Business people would start cleaning business because there is a good markup for the business. A cleaning service can be a lucrative start up assuming that the business is run wisely.

When you start cleaning business, you have to remember that it is a business. You have to keep track of the costs and expenses. You have to market and sell your services. Since the business is still in its infancy, it has not yet established a name for itself, there would be more work in sales and marketing than in other parts of the business.

To start cleaning business, you have to introduce your company and its service offerings to the community or city. It usually doesn’t matter if there are more established cleaning businesses in the area. What’s important is for the owner of the new company to show that it can compete in terms of price and performance. Getting a foot in the door might be easy, but really getting the business and then holding on to it takes effort and a lot of commitment.

There are a lot of ways to market a cleaning service, but it takes perseverance and creativity to convert the marketing effort to sales. A first time client has to see that the new cleaning service can deliver on it’s promise. The cleaning company has to prove itself with actual work. The contract might be won because of the low price. But repeat sales and referrals would roll in only through exemplary work.

One advantage of owning your own company is that you can earn as much as you want or need. Your efforts and work done is almost directly proportional to the income you earn. The more work you do, the more money you take home. Of course, when you start cleaning business, there would be a lot of effort with a low success rate. This should be expected. Think of it as baby steps, you need to learn to walk first before you can run. In this case, each failed attempt is part of the learning process. At some point, your batting average should increase, which should lead to more sales and contracts.

When you start cleaning business, one advantage which you will realize early on is that you don’t need personnel who are college graduates for the cleaning crews. The disadvantage of that is the training your crew has to undergo prior to being sent to clean up an office or a home. What you need are trustworthy, trainable people who can follow instructions. Cleaning is a matter of following instructions to the letter. In doing so, they will be sure to do a thorough cleaning of the office or home. Additionally, doing things by the book will save you a lot of money because of prudent use of cleaning supplies.

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