A Million Dollar Lesson on Entrepreneurship

Paying Yourself : From Startup and Beyond

2008-03-07T01:19:00.002+08:00

Determining your salary is one of the most important decisions you'll make as a business owner.
Read the full article here :
http://www.entrepreneur.com/money/moneymanagement/article80024.html

The biggest mistake most entrepreneurs make is to not pay themselves.

Most would think that they should only take that into consideration when there is profit.

Personally, I have experienced that if you don't do it right from the beginning, you will be putting it off till much later and what this does is, it will soon eat away your enthusiasm for the business.

Why? Simple. It is just not rewarding you to continue to do what you do.

As humans, we are compeled towards action either to avoid pain or gain more pleasure.

And if you are in business for yourself, putting off the payment owed to you to reward your daily efforts will kill your excitement to continually take effective actions for your business.

What business are you (really) in?

2008-02-20T01:40:00.003+08:00

When someone asks you that question about your business, you may answer, "we sell drills".

However, what you are actually selling are the benefits those drills provide.

No one really wants a drill - they want what a drill can do.

You are selling benefits of the drill and satisfying the needs of a specific segment.

Example :
1) Film Studio - we make movies
instead, it should be : We market entertainment

2) Cosmetic company : we make cosmetics
instead, it should be : We market hope

3) Optus : we operate a phone company
instead, it should be : We market telecommunications

An entrepreneur defined

2008-02-20T01:33:00.002+08:00

J.B. Say, an early 19th century French economist, is generally credited with recognising that the entrepreneur in a capitalist society is 'the pivot on which everything turns'.

A more recent definition of an entrepreneur is :

"One who reforms or revolutionises the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing either an old one in a new way. This action will open up a new source of supply of materials or a new outlet for products by reorganising an industry."

Jimmy Choo reveals the secret to his inspiration and ideas

2008-02-20T00:11:00.002+08:00

KOTA KINABALU: As Datuk Jimmy Choo stepped down from the stage, flashes from cameras popped and dozens of women surrounded him.

With a constant genial smile, one of Malaysia’s most renowned fashion icons obligingly posed for photographs with his “fans” that included politicians, ambassadors, businesswomen, television producers and top executives.

[Day to remember: International Women Executive Congress 2007 participants posing for pictures with Choo in Kota Kinabalu yesterday.]

Some used the opportunity to make an appointment with the London-based fashion designer renowned for his handmade women’s shoes that were worn by the likes of the late Princess Diana, the Queen of Jordan and numerous Hollywood stars.

Others asked about his famous clients, apparently wanting to hear more even after the 40-minute talk Choo had just given about his life, his break into the world of fashion and his prominent customers.

In his talk to participants of the three-day 2007 International Women Executive Congress here, Choo was generous in sharing his experiences and advice with his audience on how they can progress as individuals and entrepreneurs.

As his audience listened in rapt attention, he said that whatever they ventured into, either a career or business, they have to love what they do.

“When you love what you do, you will be inspired and ideas will come,” he said.
Choo said in a creative industry like fashion, ideas were more crucial than the actual ability to sketch them out as these can be done by designers.

“I love what I do and I’m constantly on the lookout for what people are wearing, the styles, fabrics and the accessories. From there I get inspired,” he said, adding that he constantly carried a camera to capture fashion designs that caught his eye.

Choo reminded his audience of the need to manage an international brand, such as registering the brand in various countries and constantly advertising.

“People want to know the latest in the spring and summer designs,” he added.

Going back to basics, Choo said those venturing into any business must possess certain attitudes including sincerity, respect, a willingness to learn and being prompt.

“Don’t put off something till tomorrow if you can finish it today. And keep a promise instead of giving excuses because people will learn not to trust you,” he said.

Choo said Malaysians who succeed internationally should give something back to the country. For him, this includes promoting the nation and its cuisine overseas.

Later, responding to a question from the audience, Choo said he is looking at various ways to inspire Malaysian youths to venture into the world fashion, including being involved in a design competition.

“We must pass our skills and experiences to the younger generation,” he said.

Become Your Own Boss

2008-02-20T00:04:00.002+08:00

PUTRAJAYA: Fresh graduates are urged be their own boss or join entrepreneurship programmes.

Deputy Youth and Sports Minister Datuk Liow Tiong Lai said they should not be contented doing part-time jobs while waiting to join the government or private sector.

This may explain why about 35% of local graduates are unemployed, he said.

“If they cannot get the jobs they want, they are willing to wait and get part-time jobs.

“Some graduates even have two or three part-time jobs, each earning around RM500 to RM600,” he said after launching the Malaysian Independent Business Ownership-Graduan Outreach Programme at his office yesterday.

Liow was commenting on a statement by Higher Education Department director-general Datuk Prof Dr Hassan Said that some 35% of graduates were still unemployed six months after convocation.

On another matter, Liow said the Youth Economic Promotion Council, which gave out loans to those who wanted to set up their own businesses, received close to 30,700 applications for its RM40mil fund.

On the programme, Liow said it was to put youths on the path to entrepreneurship by giving them coaching and training in drawing up viable business plans and helping them to secure loans.

“Youths can tap into a fund worth RM100mil, which is loaned to them at the Base Lending Rate plus 1%.

“Using these loans, they can then sell products such as mobile phone lines, broadband services, credit cards and computer products.

“In fact, we find that mentoring is extremely important for young entrepreneurs.

“In the old days, youths can afford to try several times before succeeding in their own businesses.

But in this fast-paced age, they can no longer afford to do that,” Chong said.

Can you teach entrepreneurship?

2008-02-15T19:21:00.000+08:00

Can you teach someone to be the next Henry Ford or Richard Branson? Is business enterprise in your genes or can it be taught in the classroom?

Share with me your thoughts?

Growing Trend Of Entrepreneurrship in the UK

2008-02-15T19:18:00.000+08:00

Growing trend....

Research commissioned by Yellow Pages suggests that one in six new businesses started in the UK are run by over-50s and that they contribute £24.4bn to the UK economy a year.

Let Yourself Shine

2008-02-15T18:59:00.002+08:00

In business, your best asset is the power of you--so use it.

Ian worked for years to hone his expertise in helping people become better communicators. He built a successful communication coaching business by incorporating the latest strategies into his practice, but he was having difficulty landing higher-paying projects, like working with corporate teams.

Since Ian didn't like tooting his own horn, he seemed unsure about customer results. Corporate clients take more convincing, so to hire him, they need to understand the critical benefits he provides compared with his competition.

I think most entrepreneur wannabes has this problem. They can't feel good about letting themselves shine. It's got to be done by someone else, they think.

Well, it's easier for someone else to blow your horn but if that is not happening for you yet (because you have NOT EVEN SECURED YOUR 1ST DEAL), then you got to do it yourself.

Here is what you need :

1. Be genuine. Allow your true self to come through in business conversations. You don't have to separate you from your work. People buy from those they know, like and trust. Gain people's confidence by letting your entrepreneurial spirit shine through during conversations. The passion you share ignites people's imaginations and kick-starts powerful relationships.

2. Redefine rejection as learning. We are often scared to speak as our true selves because we fear how people will respond. Your goal in speaking about your business is not to please everyone; it's to connect with the people who will benefit from using your product or service. Treat each opportunity to speak about your business as a way to discover new opportunities. If you find yourself keeping silent, ask yourself, "What's the worst that could happen?" You'll soon discover that what you feared usually isn't as bad as you imagined.

3. Convey personal successes. Spread your enthusiasm and develop powerful connections by adding personal insights to your conversations. Whether it's a lesson you learned from a client, an observation that changed your life or a success story that you're proud of, connecting the discussion to your prior experiences sets you apart from other business owners. And it allows you to present your knowledge, experience and credentials without boasting.

4. Demonstrate an understanding of others' problems. When people sense that the conversation is about them, they're more willing to share information. Don't be intimidated by someone's title or influence. Recognize that you have experience and knowledge that can contribute to their success. Ask about the obstacles your audience must overcome. When possible, personalize your business by offering constructive solutions to their challenges without wondering what you'll gain from it.

Put a stake in the ground: From this moment on, stand up for your own powerful presence. Be true to yourself by speaking with passion and breaking out of any self-imposed limitations. You'll be surprised how easily the world begins to support the powerful, confident entrepreneur you truly are.

Romanus Wolter, aka "The Kick Start Guy," is author of Kick Start Your Success and Kick Start Your Dream Business. Write to him at romanus@kickstartguy.com.

From : Entrepreneurs.com

A Limited Offer : Don't Miss Out On This

2007-12-26T23:57:00.000+08:00

I came across this offer while I was talking to my mentor and coach, Dave Rogers just before Christmas as he was putting together a special package for all his coachees A FANTASTIC & LIMITED ONE TIME OFFER of A THOUSAND DOLLARS worth of products (Book, Audio CD, Home Study Course & Workbook).

GRAB THIS OFFER BEFORE IT IS TOO LATE!!

I managed to get him to extend for me this limited one time offer to all who subscribed to my blog and with his permission allow you to catch this SPECIAL OFFER before he takes it off by Dec 31st, 2007.

Dave has conducted more than 100 entrepreneur coaching programs to more than 2,500 entrepreneurs throughout Asia Pacific, Europe and North America and spoken to more than 25,000 guests worldwide. Dave has personally coached a wide range of people from the retrenched to multi-millionaires, from bankers and top executives, to medical professionals and international renowned artists, athletes, singers and dancers.

Dave is the Chief Coach with XL Results Foundation, the Immediate Past President of the Asia Professional Speakers Singapore, and the recipient of the Singapore Spirit of Enterprise award for Entrepreneurship for 2007.

I have asked him to allow this till only Dec 31st, 2007. I thought that this would be a great resource to start a new year.

Don't miss out. Grab It NOW.

The Ultimate Entrepreneur

2007-12-25T17:58:00.000+08:00

I would say that one of the few people on this planet I would regard as the greatest entrepreneurs ever lived would be SM Lee Kuan Yew of Singapore.

When outcast into the little island of Singapore, with absolutely no natural resources on that island, most would have thought that it would eventually have to reconsider its decision of breaking away from Malaysia. Perhaps even getting on its knees to ask that it be rejoined with Malaysia.

But take a good look. It is still keeping way ahead,.........even without natural resources.

If given to another person other than SM Lee KY, Singapore today would just be an island filled with holiday resorts along its beaches. The same situation given to 2 different individuals would have resulted in such a vast different outcome.

The spirit of an entrepreneur is truly defined in having an UNDYING DESIRE TO SUCCEED, NO MATTER WHAT.

Starting out as an entrepreneur, you don't always have the key advantage or the resources to make it happen. Usually it is everyone else who seems to have an upper hand from where you stand. But it is your vision and purpose that sets you apart.

It is that vision and purpose that pulls the people who have the resources to come under you and work with you or for you. You may have nothing else but just that, and see what than can create............a corporate city like Singapore.

Take a good look and count the number of countries who have come this close without any natural resources found in its land.

A true entrepreneur is truly one who can create value where other cannot.

What is an Entrepreneur?

2007-12-24T00:53:00.000+08:00

Million Dollar Lessons on Entrepreneurship

2007-12-18T11:33:00.000+08:00

Here are a few links that will connect you to a wealth of resources for your business and your life :

1) Coach Dave Rogers
2) The Future Of Management : Strategic Alliance
3) Sustainable Fitness

Upcoming topic : Social Entrepreneurship. Stay tuned by subscribing.

Should You Choose Your Clients YES!

2007-11-21T17:00:00.001+08:00

Here is what I have learnt.

Not all clients are suitable for your business. Similarly, not all employers are suitable for your career growth.

Work with clients that brings out the best in you as well as choose to serve and keep clients whom you can bring the best out of and make a significant difference for.

What do I mean?

I once maintained a business and served a client who I found out later was somewhat connected to a gang. I am not implying that all are bad but when it comes to dealing in a complex deal (which mine was), you are better off giving up on the deal. The profits from that deal is just not worth the effort and commitment.

Why do I say this?

Let me qualify. This is not applicable to businesses that are one-time-off transaction in nature. Like selling a product which requires no selling, promoting or follow-up after money is paid.

I am referring to businesses which are more complex in nature, one where a credit term is involved, where contracts and progressive certification of goods and services are delivered over a period of time. An example : construction of a building.

Such businesses requires building of relationships and if your values system is so out of line with each other and other than money, there is nothing in common within the relationship, it is best to drop the deal.

If you were an employer, would you hire someone who just shows up because of the salary you pay him or her? Where the person has no interest whatever in the job or the very purpose your organisation is seeking to pursue or for the very purpose your organisation is in existence? Would you keep such an employee?

Obviously not. I have never found it to work at all despite compensating the person well in the form of salary and other benefits.

Every transaction in your business is an opportunity for a relationship. If none exist between you and your client, then you are no different from any other vendor that sets up a stall right beside you. You are like a commodity. No different.

As an individual, we all seek to be unique. Your boss, or your customers will naturally "commoditize" you. It is your ability to differentiate yourself through your conscious act and choices that will determine if you will rise above that.

If you are not able to feel passionate about your own values and display it passionately while conducting your business or work, then nothing great will happen for you. Life will just be mediocre.

Create the environment that allows you to display that by consciously choosing who you want to serve. It is the only way to continuously generate the energy and drive within you to propel your business forward. So, choose your clients well.

What is the core essence of an Entrepreneur?

2007-11-21T16:50:00.000+08:00

"An Undying Desire to Succeed."

Not many possess this quality.

As they say, it is easy to be a leader when everything is going smoothly. A true leader is one who can lead and have a sustained determination and perseverance to go through the bad times.

This applies to business, entrepreneurship, career and relationships.

Self-leadership is the key.

We all look for heroes outside of us. Yes, it is ok to model after someone who is great. But it should serve you to empower and inspire you so that you will become your own hero. That is what modeling is suppose to serve. If it creates dependance, then that's leading down to the wrong road.

When seeking for a mentor or a coach, look for that someone who is capable of reflecting back to you your greatness and help facilitate you to take decisions and actions that lead you towards realizing that grand version of you.

If we could turn back time

2007-11-09T15:07:00.000+08:00

It's always easier to look back at a situation and realize what you could've or should've done differently. The same is true when running a business. One small mistake can set you back or possibly even compromise your company.

When venturing out on your own, there's no manual to guide you. So what I have done here is to interview several entrepreneurs who are personal friends of mine to take a trip down memory lane to help you steer clear of startup blunders and joint ventures. Subscribe here to receive this free report.

What is an Entrepreneur?

2007-04-27T11:43:00.000+08:00

Source : wiseGEEK.com
An entrepreneur defined :
- One who accepts financial risks & undertakes new financial ventures

- derived from the French "entre" (to enter) and "prendre" (to take)

- applies to one starting a new project or trying a new opportunity

- one who has a spontaneous creativity

- one who has the ability and willingness to make decisions in the absence of solid data

- one who has a generally risk-taking personality

- one who is driven by a need to create something new or build something tangible

- one described as being engaged in the creative destruction of existing products and services

- one who has a tremendous amount of persistence

Anymore to add to this list?

Getting to where you want to be

2007-04-16T17:38:00.000+08:00

The shortest distance from one point to another point is a straight line.

Hence, to yield results the fastest,

what you want,
what you plan,
what you think,
what you feel,
what you do, and
what you offer in return for what you want

has to be be all aligned in a straight line.

Excuses for not reaching for the sky

2007-04-14T16:17:00.001+08:00

Source : Star - (Monday, Oct 30, 2006) - Michael Lum (www.hardknockscollege
.com)
Here are some better known excuses for not achieving in life or at work :
1) Everythting was easier back in the old days
- Companies today make millions within a shorter span of time

2) I am too young to be successful
- Steve Jobs made his 1st million at 30; Paul Getty at 23; Bill Gates in his 20s; Michael Dell in his 20s; Steven Spielberg amde his 1st billion before 35

3) I am too old to be successful
- Colonel Sanders at 65, Ray Kroc at 50

4) I do not have enough capital
- Started from scratch - Aristotle Onassis with USD450/-, Paul Getty, Conrad Hilton with 1000 Pounds Sterling

5) I do not have a degree
- Soichiro Honda left school at young age; Bill Gates and Michael Dell are undgrad dropouts, Aristotle Ornassis failed in school

Project power when you speak

2007-04-14T15:38:00.000+08:00

Source : ST/ANN - Star (Thu, 26 Oct 2006)
Jessica Seet (www.artofvoice.com)

10 tips to create an attractive voice :
#1 : Make is like a conversation with a friend you talk to often
#2 : Make sure you are loud enough to be heard
#3 : Say it like you mean it. Put your emotions into your voice.
#4 : Pronounce your words properly, especially the hard one.
#5 : What your pace; too fast - people can't understand you; too slow - people think you are less intelligent than you are.
#6 : Cut verbal garbage (mustache)
#7 : Get excited / louder when it is an important point or when emphasising a key word
#8 : Know when to lower your tome to show empathy
#9 : Be aware of posture - face, head, neck and back
#10 : Breathe deeply and from the abdomen

Website Resource for Entrepreneurs

2007-04-09T23:22:00.000+08:00

Here is an important resource for entrepreneurs : www.entrepreneur.com

A great website.

Getting Started

2006-10-27T22:36:00.000+08:00

In starting a new business, sometime you get very caught up in creating systems, back end processes and the business plan. While this is important for a start up to a point, the next phase that really needs to happen is the business cashflow. Not just outflow but the inflow.

Business owners may tend to try to perfect everything right from the start before actually selling the product or service. In doing that sometimes, too much time and effort is just spent there. Soon the business will run short on cashflow and marketing and sales effort becomes very desperate in nature.

Strictly business

2006-10-14T17:45:00.000+08:00

Take the risk to create brand and fame or keep it simple and small? This is usually the thought when one consider between taking on a high profile project with huge risk or a small project with no fame to gain. Which to choose, 1 or 2?

Choose 1 if you are public listed and funded, or intend to go listing. Keep to 2 if you intend to survive and stay healthy in your cash flow.

At the verge of bankruptcy

2006-10-06T14:41:00.000+08:00

The reality of being in business is that very few business counterparts (be it vendors, clients or strategic partners) can be counted upon when you are the verge of bankruptcy. This is regardless of how close buddies you have become or have been in the past. Sad to say but true as a fact. When you need favor the most from these business counterparts, very few will be able to lend a hand.

I have learned this the hard way. There are few who would last it out with you by not pressing you too hard for money. But they will never say "forget about it", no matter how down you are or how much losses you have suffered.

Don't want to sound like a cry baby but this in under the circumstance where my client (developer) refuses to make good on his payment and hence all under me / below me (in terms of my vendors) suffer the same fate.

Lesson learnt : Think twice when you are absorbing losses in your business thinking that you will be able to make it up in the next future deal. That you are doing the other party a favor and believe that they will remember you for it and return that favor when you are in trouble the next time. This is rarely the case.

Does that mean there is no favors in business. Answer is "Yes" and "No". Every favor still falls back on whether it make financial sense for the other party to help.

Bottom line : Business is still business. There is rarely a charity mindset. Hence, think twice when you think you are doing someone a favor and expect something in return.

True Story #2 - taken for a ride

2006-10-06T02:12:00.000+08:00

I had another experience of a being recommended for a project referred to me through a family friend who was on board the project as a consultant. On my own merit, in being the lowest bidder, I secured the project. However, soon the project ran out of financing and all were left without payment. All were given assurance that things will be back to normal once the finances was sorted on the side of the developer. We were asked to continue nonetheless with faith and believe that things will be ok. Stupid enough, we did just that. Fortunately in 3 months everything was back to normal. A few payments were made and as we were nearing 80% completion of the work. Just when all the materials and equipment were shipped into the site, the project ran out of financing again. I wondered till this day if it was truly planned for. Hence no payment were made for all the equipment and materials supplied which makes up about 70% of our contract value.

Again, we were asked to continue while the developer worked out their internal resources. 2 years passed and no payment was made. Our Overdraft facility which helped financed the purchase of the material grew significantly over the 2 years. Soon the project was called to start with the promise of payment after being abandoned for over a year. However, there were to be no settlement of past dues until work started again and even then payment were to be made in stages over several months. It is only logical to think from the sound of that, if they even have enough to settle the past dues and what more additional work. The math just didn't quite make sense. Either we had to be a bank or a finance company or a company with just too much cash lying around, to agree to these terms.

For fear of what was already owing to date, contractors were just too afraid not to agree. Yours faithfully, ME, disagreed. For that, we were then asked to terminate ourselves at a settlement of a measly 35% of what was owed to us. Either that or a law suit which would take 7 years before we see any money.

Lesson learnt : Practicing Faith and Believe while stepping deeper into a financial pithole is a very stupid thing to do no matter what is at stake. Better to cut losses that to step deeper and lose more. A famous quote by Air Asia CEO, finish each day in your business with a positive cashflow. Not yearly, not quarterly but everyday. A healthy and positive Cashflow is the key to a successful business.

True Story #1 - taken for a ride

2006-10-06T02:07:00.000+08:00

I had an opportunity once to help a friend build a factory. I saw it as an opportunity to build my business to become a turnkey contractor. I invested a significant amount of money to hire professionals to study all aspects of the construction drawings and estimated the cost of the construction according to the specifications. Over several months my quotation were compared to the cheapest among the lot who were also quoting for the project (but not according to the specification). Each item were scrutinized and compared with the lowest bidder according to every single unit rate. After several revised submission, and repeated comment of being expensive, a meeting was called to have us sit down to tell them how we would propose to reduce the cost of our construction. Stupid enough, thinking that honesty would always be the best policy, we bared all cost and all ideas to reduce the cost of construction. All details were properly proposed and explained. Soonest that happened, the project underwent a major revision by the architect. Job was re-tendered out and our original exercise became fruitless and the project was awarded to someone else. All investments were wasted plus the time in traveling and investigating the actual site.

Lesson learnt, not always a good idea to mix up friendship with business especially if the final decision making does not lie with him or her.

Deliver first and get paid later or maybe not at all

2006-10-05T23:49:00.000+08:00

There seems to be a very common illness among local companies about making good on their promise to make payment. Talk to any entrepreneur or business owner and 8 out of 10 would tell you that they have suffered such a fate. This is especially true in the construction industry. That is the main reason for most projects getting abandoned or having switched sub contractors half way through the project. How do you tell? The sudden slow down in the progress of work. If the project is completed, you see that there are many defects and no one ever turns up to fix the defect works.

What needs to happen is this : stop it with doing things first and then get paid later. If you are serious about your business and your livelihood, insist on getting paid for your service first before delivering.

Be Alert in Business Prospecting

2006-10-05T16:10:00.000+08:00

There is enough people out there who are all too keen to spot a young entrepreneur looking to make it big in the world of business. Taking advantage of such people would usually be people who are in the game of transacting "well fabricated" business deals for quick money or commissions. Sit around a coffee shop and if you listen carefully you may just happen to spot one happening. How do you tell? Usually from the body language and the typical style of how the conversation would go. First, it is all about who they know and how big the money is allocated for this deal. Next it would be about how hot this cake is and who else have gotten to know about it and are keen to get their hands in it. Next would be about how fast you can come up with the money to secure your position or deposit with them for entertainment budget.