Posts Tagged ‘start your own business’
Talent is Overrated by Geoff Colvin..Reviewed by Fiscal Student
Did you ever see someone at work or in school achieve something really great, and think to yourself, you know what, I knew that guy/girl a while back and she didn’t seem that much better than me. Well the good news is your right, the bad news is that they succeeded where you failed through tremendous hard work. Geoff Colvin’s book is quite comprehensive in its study of excellent human performance across multiple fields from chess to golf to business and music. In all cases the greatest performers had been practicing extremely hard for at least 10 years before any exceptional performance was achieved.
You often hear commentators say of Tiger Woods, he makes it look so easy, the truth is that the shot he is playing probably is easier than he’s used to. A good example of this is a technique used frequently by Tiger to practice bunker shots. He drops a couple of balls in the sand trap, and then stands on them, burying them into the sand, before practicing this shot for hours. So if he is faced with what most people would consider a difficult bunker shot in a major tournament, it is much easier than what he has been preparing for. Extraordinary achievers practice consistently over long periods of time and continually make that practice more challenging as their skills improve.
This book comes to the conclusion that while a certain amount of performance is unaccounted for by hard work, the success which is attributed to innate gifts is overrated. If anything is the difference between great performers and the rest of us it is the motivation to do the required work.
This is a well researched and well written book. I also found it very inspiring because what your parents tell you when your younger is true, anything is possible if you work hard enough. Or as the old saying goes, “You know how to get to Carnegie Hall?” practice, practice, practice….
Thank You FiscalStudent….looking forward to reading this one!
www.fiscalstudent.com
The Three Pillars Of Entrepreneurship
Whether you are starting a new business or already running an established one, there are three pillars of entrepreneurship that can make the difference between running a business that just pays the bills – or one that truly thrives. So what are they?
Research
While “research” may seem like a boring word – and can conjure up countless hours in the library or on the internet, or days poring over reports and financials – this should be the foundation for many decisions you make in business. While it may sound glamorous or impulsive to say that you act on gut feel – it’s even better to combine your natural instincts with robust research into the issue at hand.
Apart from talking to people about your business idea, you can conduct market research into whether your product or service will fly. If you have the funds to engage a market research company, that’s great. But, if not, you can still get useful feedback on an informal level. For example:
* Meet with people to gauge their interest in your product or service.
* Hold focus groups where you can discuss any issues associated with your idea.
* Conduct online surveys or polls. You can do this easily with tools such as Survey Monkey or Ask Database.
The results from your research may throw up a range of issues that may impact everything from how you structure your business, how your product is delivered, your pricing – or even whether your idea is feasible at all.
Action
After you’ve done the research, it’s time to take action. The good news is that if you’ve bothered to do the research in the first place – an act that requires some planning and organisation – you will probably have the impetus to take the next step and turn your business idea into reality.
The wheels actually usually fall off in the research stage. I meet so many would-be entrepreneurs who continually talk about their Great Business Idea but never do anything about it. That’s often because the research stage is not the sexy part. They want to go straight from Great Business Idea to an entrepreneur living The Four-Hour Work Week. It doesn’t work that way – and I don’t care what anyone says, you have to put in the hard yards if you want to experience the pay-off.
In order to motivate yourself into action, it’s useful to break down what you need to do into bite-sized chunks. The obstacles appears when we have an item on our “to do” list that looks like: “Research viability of muesli bars for children”. That’s way to big. Instead, sit down with a cup of coffee for an hour and break it down. So your task lists may look like this instead:
1. Visit Dunnes to note down all muesli bar brands.
2. Look up Yellow Pages to find manufacturers of muesli bars.
3. Do online research for manufacturers of muesli bars.
4. Make appointment with nutritionist specialising in children’s diets.
5. Develop list of “must haves” in muesli bars.
6. etc
Then diarise each of those tasks – which are all small enough to be “do-able” – and make a commitment to complete them.
Commitment and belief
If you can be bothered to research and take action, then the final pillar of entrepreneurship is an unswerving belief that you can achieve what you have set out to do. The reality is that this commitment may sometimes be rocked so it’s important to create a supportive environment to buoy you through these times. How can you do that on a practical level?
1. Minimise the time you spend with naysayers.
2. Surround yourself with other enthusiastic entrepreneurs.
3. Join a mastermind group of like-minded business owners.
4. Find yourself a business mentor.
5. Read inspirational business books where you can get ideas and motivation.
Entrepreneurship is a journey. It’s one that can be filled with challenges but can also be very rewarding. Whether you simply want to open a hair salon, transform the diets of children in Ireland (through your muesli bars) or change the behaviour of some of the country’s largest companies (through your consulting) – it can be done. Just remember: If you believe you can change the world – and you act on that conviction – then, chances are, you probably will.
Boom time is over and we are slap bang in the middle of hopefully the worst recession we will ever see.
So is it time for aspiring entrepreneurs to hunker down and wait for the sun to come back out before starting a business?
Not at all.
Recession does indicate a contracting economy but it doesn’t mean that businesses across the board are shrinking and dying. Many businesses and industries buck the trend by growing through the downturn.
You can increase your chances of running one of these businesses by starting a business in an industry that tends to remain resilient, or even prospers, in economic downturns.
So which types of business are good to start in a recession?
Start a business selling essential goods or services
Most businesses are discretionary, meaning that their products and services are non-essential.
Essential items tend to be bought in roughly the same quantities whatever the economic weather. Businesses dealing in food or shelter, two of life’s most fundamental needs, tend to be resilient in an economic dowturns.
There are stark exceptions, however.
Restaurants are enormously susceptible in a recession as the difference in cost compared to eating at home is huge, so meals out are often the first thing to go when people have less money in their pocket.
And the mortgage market can seize up in tough times, like at present, where there’s a squeeze on credit. However, people always need somewhere to live so the lettings market, by contrast tends to remain stable.
Other examples of businesses bracketed in the essential category are law firms, funeral parlours, healthcare businesses, law firms, schools and home maintenance businesses.
Start a business selling guilty pleasures
And yet, somewhat paradoxically, people often increase their spending on non-essentials too, on indulgencies.
For example, Cadbury’s announced a 28% jump in profits in July, and analysts suggest it was, to an extent, because of the recession rather than despite it. In gloomier times people often turn to comfort eating and buy chocolate, ice cream and other treats to make themselves feel better.
People do tend to be more price aware, however, so the emphasis is on affordable luxury. So they’re more likely to plump for Cadbury’s Dairy Milk than Hotel Chocolat truffles.
Start a business selling budget goods
Starting a business selling budget ranges are, unsurprisingly, more prosperous in lean times.
‘Everything for a pound’ shops tend to do well. And with the credit crunch making bank loans hard to come by, pawn shops and cheque cashing shops are enjoying a spike in custom.
In contrast to restaurants, retailers selling budget food ranges are very successful.
Start a business selling goods and services used by the over-50s
They’ve got equity in their property, and they’ve got savings so their earnings rise with interest rates: over 50s have more to spend than younger age groups and they’re also more resilient in a recession.
Buy a franchise
An established franchise will invariably stand a better chance of thriving than a start-up. Many franchise brands have come through previous recessions unscathed so you can be confident they’ll have the means and savvy to do it again.
When the economy contracts some businesses inevitably go under. With their time-honed, streamlined processes and systems, franchises are usually leaner and fitter than their rivals and much less likely to fall by the wayside.
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
Warren Buffett
God decided to take the devil to court and settle their differences once and for all. When Satan heard this, he laughed and said, “And where do you think you’re going to find a lawyer?”
Legal advice is a necessary evil. My advice re lawyers is as follows; to succeed you will need a good team of professionals around you. You will need a great accountant, a Tax adviser and at least one good solicitor. The danger when dealing with professions such as lawyer, accountant etc is to assume that because the person you are dealing with is qualified they must be good.
You need to get the sense that your solicitor is taking you and your case seriously. If your calls are not being returned promptly and you get the impression that you are wasting their valuable time, tell them that you have resolved the issue, settle your surprisingly large bill and walk. Bring the work that the previous crap solicitor did for you to another one and tell them that you fired the last guy because he was not up to scratch.
One letter from a solicitor can cost up to €500 so make sure you have an idea of costs before you engage one. Let them know how much you have to spend. Most business disputes can only be resolved in the high court which will set you back at least 10K so avoid even venturing down the legal road at all costs because the only people who win at the end of the day are you know who!.
Company: Kids in the Kitchen and Whip It Up
Website: www.kidsinthekitchen.ie and www.whipitup.ie
Founders: Victoria Mackechnie
Age: 29
Based: Dublin
Staff Numbers: 1
Date started: November 2008
Tell us what your business does?
My business involves providing cookery classes to children and adults. The Kids in the Kitchen constitutes the main part of my business through which I work with a number of primary and secondary schools as well community centres in the Greater Dublin Area to educate children about healthy eating and equip them with practical skills to produce tasty dishes for themselves. All of these classes are practical cookery sessions where children are involved in all aspects of cooking from beginning to end. Children then bring home their dishes to share with family and friends.
The Whip It Up business which was just launched in October 2009 aims to teach adults a number of tasty easy recipes and give them new culinary ideas. Each class has a different theme from Mediterannean to Mexican and shellfish to sinful desserts. These cookery classes are demonstration and take part mostly in chq, IFSC, Dublin 1. I work with Mitchell & Son Wine Merchants who teach participants about wine pairing and how to choose different wines to complement food flavours.
Where did the idea for your business come from?
I took a year out and lived in Sydney for a while and had the chance to run children’s cookery classes there. I have always been passionate about food and cookery though and did my first course when I was 9! Starting young stood to me. By acquiring this important life skill at a young age, I feel strongly that children are equipped to make healthy eating choices for themselves.
Have you always wanted to run your own business?
Yes always. In fact I wanted to launch this business when I finished college but felt the market wasnt yet ready. Since then, the obesity epidemic among children has exploded and I think as a nation we have become alot more aware of nutrition and healthy eating, while cookery has gained enormously in popularity, particularly now that people cant afford to eat out as much!
What planning did you do before you started up?
I had already tested the market by speaking directly with schools and also had the benefit of hands on experience from Australia. I was fortunate in that I didnt have a big capital outlay in order to start the busines so was in a position to start trading immediately after setting it up.
How did you raise the money?
I used savings to start the business. However the financial challenges ahead lie in the fact that these programmes are needed most acutely among schools in disadvantaged areas so I am constantly lobbying public and private bodies to fund these cookery programmes in these areas.
What challenges have you faced how have you overcome them?
Financial challenges are always going to be a feature of running your own business. Not having a consistent steady income stream is a big change and one that takes time to get used to. Obviously having a business degree and coming from a financial background helps. You have to become a lot more self disciplined and adept at financial planning. Another challenge for me has been adapting to working by myself. I miss working as part of a team and all the interaction with work colleagues.
How have you promoted your business?
Mostly it has been word of mouth and I have been lucky enough to get some good press coverage.
What has your growth been like?
The business has grown to incorporate a wider number of schools and has expanded to run adult programmes. I soon hope to turn this one woman show into a two person show!
What’s the impact on your home life been like?
I suppose my home life and work life are now very much intertwined. There is no longer a clear delineation between the two. However, I definitely have more flexibility which is something I really value.
Company: Corkage
Website: www.corkage.ie
Founders: Stephen Dillon
Age: 33
Based: Dublin
Staff Numbers: 4
Date started: June 2009
Tell us what your business does?
www.corkage.ie is a supplier of wines for weddings primarily but also for any special occasion or function. We also provide information about the whole topic of corkage, food and wine matching etc.
Where did the idea for your business come from?
The idea came about after several requests from friends and family for advice on wedding wine. I have been interested and involved in the wine industry for years. Many of the people who conatcted me were not happy with the price and quality of wines being offered to them by hotels, venues etc. They were looking for better quality and more choice and were smart enough to realise that by organising your own wine you can save a small fortune and give your guests better wine.
Have you always wanted to run your own business?
Yes. In addition to corkage I also own an off licence and previously an internet cafe.
What planning did you do before you started up?
I did a lot of research on what hotels were charging for corkage and requested copies of wine lists. As I am already in the trade I had a good idea of what they were paying for the wines on the list. The difference convinced me that there was an opportunity to give people an alternative choice.
How did you raise the money?
Luckily the website did not require much investment. I found a great web developper who got the site up and running very quickly (www.complex.ie). Much of the required infrastructure for the business was already in place from the off licence. Raising money for the off licence is another story!
What challenges have you faced how have you overcome them?
The economic downturn was obviously a major challenge. The whole wine industry in Ireland is under massive pressure at the moment. The government raising VAT last year just as the UK government dropped their rate sent lots of people shopping up north particularily for big purchases like 200 bottles of wine!. This also created an oppoprtunity as we were able to buy lots of liquidated and bin end stock from hard pressed suppliers in the south. This meant we could find great ‘clearence’ lots for our customers. On one occasion we sourced a wine that normally sold for €20 per bottle for well under €10.,
How have you promoted your business?
Most promotion has been done through google adwords, although this can be expensive you do get pretty instant results once you use the right keywords. I have also linked up with a number of wedding websites again this reaches the target market.
What has your growth been like?
Growth has been steady, we started by supplying wine to people we knew, slowly word started spreading and enquiries and visits to the site are growing every week. We also offer free delivery and a sale or return service this has definately helped sales.
What’s the impact on your home life been like?
There has been no major impact on home life as I have been doing long hours in the off licence already. I have enjoyed updating the blog and checking the number of hits on the site. Compared to retail web based business is a dream!
Starting a business general advice from Ruairi – www.kro.ie
Kro IT Solutions is only a baby still (12 months old, and only about 6 months trading) but already I have learned some serious lessons. I’m happy to share them in the off chance that you are six months behind me and starting out on day one.
My Top Five Tips for New Business Owners
1) Don’t listen to anyone’s advice unless they are a business person who is a success and has walked the talk. Enterprise this and Resource that and your local Rural whatever office are full of farmers daughters who couldn’t sell a bone to a dog. Take their grants if you can get them but don’t let them direct your company. My mistake was almost to stay in Roscommon because the local board there offered me a few bits and bobs. Instead I moved to Galway and opened up much more work for myself. Of course I am asking you to listen to me and I am not a huge success yet, but my advice hopefully takes that into account!
2) If you decide to work for free or at a discount then work as if you are getting paid full price. Lots of people advise against working for free. I agree to some extent but you also need to prove yourself. However my mistake was to take on a fair bit of free or low cost work and then not give it the attention I gave paying work. The result is that work you didn’t get paid for ends up becoming a bad mark on your record and you ultimately begin to lose money because of it. If you decide to do something at a low cost then don’t be fooled into thinking you are working for someone for nothing. You are working for yourself to further your position. If you work for free for a family member then you are giving them a gift so make it the best you can.
3) Don’t offer credit to strangers. Why in this climate would you offer credit to complete strangers when banks won’t offer it to their own customers? An exceptionally good book about starting a [custom software] business is http://www.hentzenwerke.com/catalog/sdg3.htm which outlines some advice to ensure you get paid. The main advice is to draft an acceptance letter stating what work you will complete, how much it will cost, and when you will invoice. Your client is required to sign the acceptance letter and return it before you start work. For all projects over a couple of grand I ask for an acceptance letter to be signed and I insist on staged payments or a retainer. So far only one client has refused and informed me “just do the work and then you will get paid”. As they said in The Holy Grail “run away, run away”.
4) Forget about marketing – it doesn’t work in Ireland (although do it anyway just in case I am wrong). Twitter, advertising, Facebook, etc are all pretty much useless. We all know the old cliché that word of mouth is how all business is done in Ireland. That is unfortunate when you have a big mouthed client who for reasons beyond your control ends up unhappy with your work, however it is also a blessing as it is a damn cheap way to market yourself. You need to start at day 1 and treat your customers like gold. It doesn’t matter who they are or what they are like – if they are your customer then they are your business. Treat them right. I made mistakes with customers and probably will continue to do so but I keep striving to do better every day. In recent weeks I have had to revisit three websites that were completed by my company as the customer was (rightly) not entirely happy. I’ve broke my back and lost a fortune reworking those sites and getting them right but I am now very proud of them and would happily stand over them. So would my customers.
5) Don’t trust anyone, and don’t rely on anyone. Once you enter the world of business it is shocking how people treat you. Everyone considers you a cash cow and everyone is willing to drop their moral standards when dealing with you. You are no longer the bread winner for your family who is doing their best to get by and make an honest living. Once you become XYZ Limited expect your bank to treat you like an almost guaranteed failure and protect their every five euro as if it was the only one they had. Expect former friends to ask you to sponsor every charity event they get involved in without a second thought as to whether you have it or not. Expect people who you get on well with and form a bond with to pay your invoices two months later than they are due. The type of people who would formerly be co-workers that you could have good relationships with are now employees who want to ride you for every cent they can get. To paraphrase Rudyard Kipling “If you can keep your decency when all around you are losing theirs then you’ll be a man my son”. Wish me luck on that one – it’s early days yet. Although being the next Mr Burns has it’s attractions. Exxxcellent.
If I had a 6th tip it would be to find a mentor and make use of them. However 5 tips is a nice length. This is a bloody hard time to start a business in Ireland, but if you didn’t like a challenge you wouldn’t be doing it to begin with. I could finish off by advising you to get a great website and then mentioning that we can do you a deal, but since you have just read number 5 you might not believe me.
Thanks for the post Ruairi!!
http://www.kro.ie/blog/
This book rocks!, hilariously funny and full of great advice. If you looking for a practical how-to, what’s-it-like guide to becoming a rich entrepreneur, written by an expert and eccentric, Felix Dennis’s How To Get Rich is probably for you.
I really like his writing style — direct, bold, and funny in a self-effacing way– truth be told, with a title like “How To Get Rich”, I lowered my expectations a bit in case it turned out to be the usual drivel you usually find in the Business Profiles section of a bookstore. You know, the 18-point font, double-spaced, full-of-motivating-platitudes stuff that you get when flipping through Trump and Kiyosaki or worse. Those books have their use, but in general, once you’ve read one, the next one isn’t going to be much different. (Actually, Dennis has some pretty harsh words for all the authors out there who write how-to-get-rich books without actually having done so, except by selling copies of their how-to books!)
Enter Felix Dennis, a British publishing mogul who loves writing poems, outstanding wines, and telling it like it is. If you’ve never heard of him, he started Dennis Publishing in 1974, hit it big by publishing magazines related to the PC revolution back when no one else thought it would last, and nowadays publishes some of the most successful men’s lifestyle magzines in the US, like Maxim, Stuff, and Blender. By his own estimation, he’s worth about $400-$900M before tax.
Dennis emphasizes in his book that it’s a definitive how-to guide to being rich, and he regularly repeats, more than half-seriously, that if you’re not using his book to get rich, then you’re wasting your time and might as well give it to someone who will use it properly. Though I have no foot to stand on, I disagree wholeheartedly. You’re going to get good advice from this book regardless of whether you’re aiming to become rich, want to run your own simple business, or even if you work for someone else.
Sure, for those who are looking to get filthy rich, Dennis’s advice is probably spot-on. In a nutshell: choose a good industry (he gives some guidelines on what to avoid), mix in some luck (he gives advice on how to improve your chances of catching Lady Luck), and, finally, the most important part, retain 100% ownership of it through thick and thin (much easier said than done). Dennis truly believes that getting rich really isn’t hard, and anyone can do it, as long as they’re willing to make the sacrifices that are required to get there. On this point, I like that Dennis handles being rich even handedly (something you won’t find with Trump or Kiyosaki). He says outright that being rich won’t make anyone happier and is in fact more likely to lead to distress and loneliness, because getting there and maintaining wealth always requires personal sacrifices that most people aren’t willing to make, and for good reason.
So what is it I like so much about this book?
I suppose the reason I enjoy this book so much and will read it over and over again is that you seldom have the opportunity to hear someone’s philosophy and conclusions about living life, let alone someone who has probably done things you’ll never get to do (but might like to). I like that Dennis gives examples of his thought processes, and I don’t mean only on his successful ventures. More often than not, he gives examples of how he missed opportunities and made errors. He talks about what he’d do differently if he had the chance to start over. He gives some advice on managing talent (what he considers the important asset in a business) even though he also says that entrepreneurs shouldn’t be focusing on managing people.
This book will give you perspectives that you’ll seldom hear from other people in your life.
5/5
We rewiew the good, the bad and the ugly of business books. Do you have a favourite business book? why not review it on Startups.
Entrepreneurs –Autobiography/ Biography
Business Stripped Bare – Richard Branson (Virgin Books)
This is a sort of update on Sir Richard’s business empire taking a more philosophical view on what makes a business successful. This is not a patch on Losing My Virginity and in fact many of the same stories are repeated. Unless you are planning to take over a chain of banks, buy a railway monopoly from the state or build a spaceship you can live without this one. 2/5
Anyone Can Do It – Building Coffee Republic From Our Kitchen Table – Sahar and Bobby Hashemi (Capstone Publishing)
Sahar and Bobby Hashemi are the sister and brother team who built Coffe Republic the UK high street coffee chain. Giving up highly paid professional jobs, she as a lawyer in London and he an investment banker in New York, they staked everything on their dream. This is a great little book and well worth a read. It takes you step by step through the process of building Coffee Republic , from the original idea and brainstorming to Growth and customer service. 4/5
Making Bread – Brody Sweeney (Liberties Press)
A refreshingly honest, direct and jargon free book, Brody shares his experiences, good, bad and difficult of setting up O’Briens Sandwich Bars. This book is well worth a read as it offers good practical advice from an Irish perspective. The chapter on bank finance is particularly relevant i.e ‘Banks only like lending money to those who don’t need it’ and how to get around this. 4/5
Anyone Can Do It – My Story – Duncan Bannatyne (Orion Books)
Grumpy dragon Duncan tells his story from a tough upbringing in Clydebank, Scotland to multi millionaire entrepreneur. Duncan was a self confessed dosser until he finally set his mind to making money in his thirties. Starting with an ice cream van business he built business after business each more profitable than the last. This book also shows Duncan’s charitable side which is pretty inspiring stuff. 4/5 This book is also reviewed by FiscalStudent (See post below)
Enter the Dragon – Theo Paphitis (Orion Books)
Theo Paphitis has built one of the most successful retail empires in the UK. Theo founded his first company at 23 and his big skill is in seeing untapped potential in loss making business which he then makes profitable. Of particular interest to anyone in retail this is worth a read although there is a big middle padding section where he covers his period in charge of Millwall football club, this is just boring. 3/5
Tycoon – How to turn dreams into millions – Peter Jones (Hodder & Stoughton)
I hated this book and to be honest could not finish it. From the arrogant title ‘Tycoon’ to the incredibly annoying ‘Tycoon Tips’ throughout the book you get the impression of someone who is a bit too dizzy in the glare of fame. Tycoon Tip – Avoid. 0/5
Business Nightmares – When Entrepreneurs Hit Crisis Point – Rachael Elnaugh (Crimson)
A novel approach from the fallen dragon. After the high profile loss of her business ‘Red Letter Days’ and subsequent removal from Dragon’s Den, Rachael interviews other high profile contacts such as Jeffrey Archer and Doug Richard. The book has a pretty bitter and angry tone particularly towards some of the remaining Dragon’s. Despite this it is relevant to see the dark side of business when things go wrong as they do more often than not. There is also some good advice and tips that could save you lots of money and heart ache. 3/5
Dragons’ Den – Success from Pitch to Profit – Peter Jones, Deborah Meaden, Theo Paphitis, Duncan Bannatyne and James Caan (Collins)
This book is a bit of a con. Someone got an hour interview time with each of the Dragon’s and turned it into a lightweight mish mash in order to cash in on the show’s popularity. You will walk away none the wiser. 1/5
How They Started – How 30 good ideas became great businesses – David Lester (Crimson)
This is a great little book, each chapter is a perfect bite size, just long enough to tell each story while maintaining your interest. The book covers businesses such as Bebo, Moneysupermarket.com, Pizza Express and Cobra Beer and gives a brief outline of how they got going and the challenges that they faced along the way. 4/5
Marketing
Purple Cow – Transform your business by being remarkable – Seth Godin (Penguin)
A good ‘Loo’ read. Marketing Guru Seth Godin urges everyone involved in creating, designing or selling to think in new ways about their market. By adopting alternative approaches to your business, you and your company will survive to innovate another day. 3/5
Online Marketing Heroes – Michael Miller (Wiley)
Terrible and boring. Interviews with 25 ‘succesful online marketing guru’s’. If you are having trouble sleeping, this one is perfect for you. 0/5
