THE ENTREPRENEURIAL ALTERNATIVE

Part 2: Identify Attitudes and Behaviors

In Part 1, the discussion centered on the need to change and be ready to unlearn, learn and re-learn. While formal education is expensive, much of the knowledge and skills that can help you as an entrepreneur are readily available and much less expensive on the Internet and through professional organizations.

Using your expertise and training as a consultant is the least expensive way to get started in your own business. Even though you can run your consulting business inexpensively, that has no relationship on the quality of services you can provide to businesses. In fact, consultants and temporary workers are exactly what businesses are seeking today: expertise without paying for benefits or long-term commitments.

There are four “talking points” regarding starting your consulting business:

1. Know your strengths (includes your area of expertise);

2. Be prepared to develop and exploit opportunities;

3. Match your strengths to customer needs; and,

4. Manage customer relations with more energy and attention to detail than you think may be reasonable

Know Your Strengths

Over the past several years Marcus Buckingham has released books and audio presentations on the subject of “Know Your Strengths.” If you want to be an entrepreneur, take time to read these books. For the purposes of this discussion, the two points you want to start with are (1) identify your talents and (2) don’t waste time trying to improve your weaknesses.

It seems like a simple task: identify your talents. Most people make a list and start selling people on the idea that their talents will help an organization make more money. Unfortunately, while your ideas are excellent, the most talented people don’t always get the job. There are literally thousands of people like you saying the same thing. Add to that people who are ready to undercut your bid making completing the task a loss rather than a profit. Government contracts are notorious for selecting the lowest bid, not the most talented people.

The person who has the best opportunity is not the one espousing to solve past or current problems but the person who has a plan to exploit opportunities. Companies don’t make long-term profits by solving yesterday’s problems. In the short-term, problem-solvers will cost companies money (your contract for example) and time. The return may be break even or a little profit at best. And once you are gone, the problems may re-surface. Hence, companies are skeptical about what you can do for them as a problem-solver. If your strongest talent is problem-solving you need to diversify by adding more complementary thinking to your proposals.

A good example is package design. Designers take an under-performing product and design a new package that gives the item zest and appeal. They didn’t try to solve the problem of the product only its presentation.

Taking this example a step further, marketing now takes this old product in the new package and uses demographics to trend its success. Marketing answers the questions of “who, what, where, why, when and how.” This kind of problem-solving is not looking backwards but instead to the future and the steps necessary for a successful outcome.

If your talent is problem-solving, make yourself different by tying together diverse thinking, even if initially, the thoughts seem unrelated. In the science of discovery, many times the outcome is not the one expected but the new discovery proves to have many uses. Show your prospects how simple and sometimes unrelated ideas can suddenly be very profitable.

At one time, the hot dog was a lonely meat item on a sparse dinner plate. Then someone got an idea to take the meat, wrap it in bread and cover it with condiments. The hot dog industry has been worth billions of dollars ever since. If one of your talents is discovering “hot dogs,” you’ll be worth millions in a few short years.

Ignore Your Weaknesses

With respect to working to overcome your weaknesses, that is a plan to fail. If you don’t know package design, then find someone who does know. If you have the latest and greatest hot dog but you can’t bake bread, hire a baker. Talented people know when to surround themselves with complementary people that can complete the task.

If you are a “big” thinker and don’t do project management all that well, don’t start taking classes and buying software to teach yourself how. Find a partner who has that talent. The time you’ll spend trying to overcome your project management weakness will cost you more than hiring a partner. Plus, you may never learn how to do good project management anyway. As a result you lost a potential contract and wasted your financial resources and time.

If anyone ever asks you to identify your weakness, you say “none.” The reason is that you surround yourself with other talented people who have the expertise to fill the gaps. Be like Mission Impossible and put together teams for the tasks.

The only people interested in you for your weaknesses are those selling educational products, seminars, or the so-called “gurus.” The problem is that our entire educational life was spent being told about our weaknesses and as a result we think we need to keep addressing them. Rounding out your personal life by taking special interest classes is a good thing; taking time out of your work week to “upgrade or complete your professional presentation” is wasteful.

To be continued in Part 3.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

THE ENTREPRENEURIAL ALTERNATIVE

Part 1: Getting Started

Employment trends over the past 6 years have demonstrated an important new focus for people: you need to re-invent yourself often. Unfortunately, not many people will enjoy lifelong employment (with a defined set of skills) at one company as was the case in previous generations. Alvin Toffler said it best in 1970 when he predicted that people will need to be committed to learning, un-learning and re-learning. This means not being “married” to your college or vocational degree, but instead pursuing continuing education.

Paying for adult education is expensive. Once a person has a college degree, the opportunities to access government sponsored job retraining programs are limited. College degreed individuals can rarely tap training programs like ones for employees terminated from manufacturing or other “blue collar” jobs.

Once a person graduates from college, it is difficult to switch occupational focus and return for a new degree. For example job opportunities for teaching K-12: most potential candidates will need several courses in special education, refresher courses in specific course content and taking standardized tests to demonstrate proficiency in a subject area. For many, the price tag on new job preparation could run more than $10 thousand. The added insult is starting pay at less than $30 thousand per year, hardly enough to justify adding new debt.

Another factor is time. Most people already have significant debt and may be living with parents to pay loans at a faster rate. This may mean more than one full-time job or several part-time jobs to cobble together enough income to accelerate payment of the debt. It becomes difficult to spend the hours needed to attend classes and meet the obligations of coursework when so much time is dedicated to working.

The idea of becoming an entrepreneur is also daunting. If you are already short on funds because of debt, it is not likely you will get or want another loan to start a business. Logically, it is too big of a gamble to start a new venture with limited funds or deep debt.

There are some opportunities, such as freelance teaching or writing that will let you get started using your expertise and training on a limited budget. The Internet gives you potential to reach audiences with a minimum investment. Even if your web design experience is limited or non-existent, you can still build a web site with templates and pre-designed tools that give you a fresh start in your business. Hosting costs are also low enough to keep your new efforts affordable.

Your website is today’s new business card and résumé. You need to consider how your website will represent you and what will be the site’s focus. While it may be tempting to “make money” with advertising, it may compromise your image with potential clients.

Here’s an important note: don’t fall into the multi-level marketing (MLM) trap. There are many so-called opportunities that will entice you with the prospect of quickly making large sums of money. Most of these offers are scams (pyramid schemes) and the only person who earns the big bucks is the one selling you the entrance fee. If you have to pay to work for someone else and the only way you will make your money back is to lure new people to join as your “downline,” you need to stay away. As grandma would say: if it sounds too good to be true, it probably is.

With respect to training, there are many sites that offer continuing education specific to your field of expertise. A search engine query will reveal hundreds of sites that you can research to get started. Once you have identified several that meet your needs, visit often or subscribe. And don’t forget about your local library; you’ll find many books on business, marketing and computer/software training that you can browse without buying.

You can also tap local colleges that offer small business courses or seminars and get good advice from organizations such as SCORE or the Small Business Administration. The real cost is time and you need to spend as much time as possible preparing for the next step. As the saying goes, failure to plan is a plan for failure.

Critical thinking involves the ability to write down abstract ideas so they can be reviewed and improved. That is the main reason why lending institutions want to see a business plan. If you cannot translate the mental picture of your idea(s) to a physical presence on paper, you need to keep thinking and learning. Colleges that offer small business programming can also help you formulate your business plan, usually at no cost.

Your business plan needs to include immediate, short-range and long-range objectives. If you can’t see your project three years from now and how your ideas will have matured, you are not ready so don’t invest. Over 9 out of 10 business ideas fail within two years, so having a plan that gets you through the most daunting early years is critical.

In Part 2 of this series, the personal make-up and dedication of good entrepreneurship will be discussed.

Tidbits

(1) From Kimberly Waltmire, a member of the USA Today 2006 All-USA Teacher Team, a recognition program for outstanding K-12 teachers:

“We often give children a blank piece of paper but we don’t give them the tools to write. Time and time again, their writing is dull and unimaginative and the kids are so stressed they can’t write. So I allow kids to experience things first and the writing comes last.”

(2) Employers don’t share company strategies is the conclusion from a study of strategy management professionals (“Making Strategy Execution a Competitive Advantage”). The study revealed that 95 percent of companies surveyed do not share their strategic plan with employees. That’s the bad news. The good news: when companies do have a strategic plan, 70 percent report they perform better than the competition. Only 20 percent of companies that do not have a strategic plan report out-performing their competition.

(3) We overlook stress and its physical impact on our bodies because of a slow rise in its intensity over time. The same can be said about inflation: it occurs slowly enough that it can be overlooked. (The exception is the dizzying rise of fuel costs, but that kind of jump in prices is usually not so evident.) Today, it costs $18,400 to buy goods and services (including healthcare, education, utilities and other necessities) that would have costs $10,000 in 1986. Has your income almost doubled over the same 20 years? Probably not; hence the result is the current explosion of credit card debt and the decrease in personal savings. In another 20 years, today’s $18,400 will cost about $30,000!

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

TOO MANY PROBLEM SOLVERS

Take Advantage of Opportunities

The US school system has done a great job in preparing curricula regarding problem solving. It is debatable if students are enjoying any great success with problem-solving curricula and it does offer great amounts of fodder for discussion.

One reason why there is so much emphasis on math and science is because they are easily measurable by standardized tests. Those fields of study lend themselves nicely to factual “right or wrong” test questions that can measure one student’s ability to remember over another. Once test scores are verified, a litany of statistics can be applied to support or defend educational programs.

As a county, we adore problem-solvers and reward those people with high paying jobs and in the case of the military, medals. After all, who doesn’t like the idea that the “good cowboy” is riding into town to deal with the “bad cowboys?” How often was GE’s Jack Welch placed on the pedestal as the company’s great problem-solver? George Patton is romanticized as the “kick butt” get it done general.

The issue is that education, K-16, is producing too many problem-solvers (coupled with technology taking over the role of problem solving) that leaves too many people out of work. Companies regularly use robots or computers during the manufacturing process to eliminate errors and create perfect outcomes at much higher levels than human workers could ever hope to perform. The result is better products but less highly educated people working.

Businesses have found that “leaner” payrolls eliminate middle management problem solvers; sadly these people are not missed. Too many problem solvers tend to cost business money, not make it. The few dollars saved by a more efficient process pales against the loss of customers flocking to a new product and company. A good example is the US auto industry.

This is not to say that business would do well to toss out all the problem solvers. There still needs to be a high degree of input because many problems arise every day. It is just that companies find that they don’t need as many problem solvers as the school systems are churning out on a yearly basis.

The real value for business comes when employees seek to exploit opportunities. They read about new trends that will increase sales or create new designs to attract new customers. The car company Toyota has often said that it is a design company that just happens to make cars.

So education needs to teach entrepreneurial thinking: finding opportunities and how to present them to decision-makers. This class would combine the elements of all school courses: art, science, English grammar, reading, math and so on. An entrepreneur combines the energy and thinking of many different disciplines to make their point.

The problem is not how you measure creative thinking but keeping it confined to the time efficiencies that schools demand. You can measure creative thinking using many traditional methods such as structuring proposals, networking, use of grammar and art and many other measurable factors. It is just not as easy to measure as a multiple choice test and certainly not as efficient. Lack of time in school is the enemy of creative thinking

Overall, isn’t this what business is asking for in their new recruits: to be able to think critically and creatively? Isn’t this the kind of education that makes people valuable and less likely to suffer the indignity of unemployment or working as an over-qualified worker at minimal wage? To prepare students for the future, schools need to take knowledge and show students how it applies to innovation.

Problem solvers abound in every walk of life. What is not as likely to be found is the person who uses good thinking to create opportunities and teach others how to capitalize. That in turn makes more profit for the company and more opportunities for employment.

Potpourri

1) According to American Demographics Magazine, the average US household spends almost $90 per day on goods and services. That translates to $32,850 per year in spending. It also means that the average household needs to earn about $30 per hour to spend at that level (factoring in taxes, insurance and capital spending such as appliances).

2) According to the “2006 Life After College” study, most college graduates stay at their first job for less than 2 years. During the first year, 36 percent report leaving and another 42 percent leave during the second year. About 5 percent haven’t worked since graduating. Newly hired teachers leave after 2 years at a rate of about 50 percent.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

WATCH YOUR DISTANCE

When Leading, Keep the Pack Close

As a bicycle rider, my strength was on the flat or slight decline in the topography. Sure, anyone is strong riding flat or downhill, but my body size made riding in those conditions exceptional. Other riders knew that when the road ahead was flat, it was time for me to take the lead so they could draft and gain greater speed.

When you take the lead, you tend to shift “down” to increase power and speed. A quick glance over the shoulder reveals a line forming to take advantage of the drafting opportunity. The bike speed increases from 16 miles per hour to over 25. It is fun!

This kind of teamwork benefits everyone. The speed is exhilarating and casual observers marvel at the speed the group is generating.

The problem can be the length of the time these “perfect” conditions exist. My strength allows me to continue endlessly for miles; the riders behind me, despite the “easier ride” start to fall back from fatigue. As the distance between me and the next rider lengthens, the draft benefit decreases and soon the group falls apart. If I don’t realize what is happening, I could easily be several hundred yards ahead.

Now this is not a story to create awe-struck kudos. It illustrates what happens when a leader’s vision is too far ahead of the pack. An idea that creates too much change or asks that people just “go along” will create a virtual distance between the leader and those looking for a new solution. This puts the leader too far out in front and little support from those in the rear. The military calls this “outrunning your supply lines.” It is not a situation that has a strong enough foundation to keep going.

As you move forward and try to keep your “pack” together, make sure you haven’t shifted down too fast. Build momentum by accomplishing smaller tasks successfully. Begin to delegate and involve people with greater shares of your vision so their confidence in the vision’s direction continues to grow. People like to stay in their comfort zone and if you don’t make the next level comfortable, they will tend to drift back.

This is really not that difficult for a leader to implement, Check and calibrate your approach and growth regularly to keep people from drifting. Allow others to take the lead; this may slow the project down somewhat but it allows everyone to “catch their breath.” In my example above, if the second and third riders were to take turns leading the line, the pace would slow to a comfortable level allowing everyone to stay together.

The objective in implementing your vision is not to see how fast you can accomplish the tasks or how outstanding you are by working “solo.” It is always going to be about how many people adopt the new strategy and feel successful.

Be a leader by knowing when to step out of the way. The highly successful baseball manager Sparky Anderson was asked during his Hall of Fame induction what his managing approach was in leading the “Big Red Machine” of the 1970’s. His answer: I stayed out their way and let them play.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

OCTOBER MUSINGS

Perceptions

It is rare for subordinates to get a chance to formerly review their managers. Even though 92 percent of managers rate themselves as good or excellent, only 67 percent of their subordinates agree with the assessment. No manager ranked themselves as “poor”, 10 percent of their subordinates provided that assessment. (source: Hudson National Opinion survey of workers, 2006)

Many companies have tried 360 degree assessments to improve communication and productivity in the workplace. Evaluations tend to become popularity contests and do not always represent feedback that may improve employer-employee relations. Management at any level needs top improve its level of communication with employees. People in the workplace just want an opportunity to be heard.

Regular and informal conversations with employees will vastly improve relations and productivity without any of the expensive gadgets or fads that populate the workplace. The term used to be “work around management” or WAM and it is unfortunate that companies don’t use that simple technique on a daily basis.

Any company that wants to improve its productivity and ultimately its profitability needs to increase its “paying attention to people quotient.” Making the workplace meaningful will yield the kind of results management is seeking.

Wage Info Good News to Colleges

College administrators and recruiters love the kind of earning income reports that came out recently. Adults 18 and older with a bachelor’s degree earn an average of $51,154 in 2004. A high school diploma only earns the person $28,645 and non-high school grads only earn $19,169.

The greatest myth in education is that a college education leads to high paying jobs for all graduates. Using average income data, a college degree easily outpaces a high school graduate and a high school dropout. Yet the trend, measured since 1999, seems to show that the gap is closing.

In 1999, a bachelor’s degree earned over twice the amount of a high school graduate. Looking at the 2004 data, the gap is less than two times greater. Given the recent data that shows the average annual wage in the US is around $40,000, it seems that the gap between degrees has shrunk again.

Add to the supposed college wage advantage the average debt acquired by earning a bachelor’s degree, it could take up to 10 years for many college graduates to actually earn more than the high school graduate. For example, today’s newly hired teacher will most likely earn less than $35,000 in many school districts. After taxes and making loan payments, the difference will be much less than the customer service rep with a high school diploma.

There are some high paying jobs in the marketplace for college graduates, but not enough to justify the extreme emphasis on going to college. While nearly 70 percent of high school graduates try at least two years of college, only 45 percent of adults over 25 actually have a degree. And of those with a college degree, the average yearly income is influenced by the less than 1 percent that is earning millions of dollars per year as a CEO, entertaining or professional athlete.

Healthcare Crisis

There is a tremendous emphasis on healthcare with respect to those persons who do not have insurance. Universal healthcare is often discussed but will not become reality until the current crisis becomes critical.

The irony will be once universal healthcare is available is who will take of us? Retiring healthcare professionals will leave a tremendous void in communities. Just as “baby boomers” will be retiring in record numbers over the next 10 years, so too are people in the medical professions. Over 33 percent of today’s physicians are older than 55.

According to Arthur Garson, Jr, MD, Dean of the University of Virginia School of Medicine, healthcare providers are rapidly moving from providers to consumers. So while everyone may eventually get a ticket to the dance, very few of us will get a chance to hear the music.

Visit www.3MinuteLearning.com

GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC