Folks,
Here is an exchange I've edited regarding problems in starting up a business. I am working on this aspect of start up motivation, so I'll let the argument speak for itself.
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A. The part of your story that I am most interested in is the experience of urgency, the idea that times- a-wastin, and the sense that you are up against a wall. I think that is a very common element in keeping people from thriving, and it is something for which I'd like to develop a counter argument.
B. THOSE THINGS WILL - PERHAPS - KEEP SOME FROM THRIVING. BUT THEY ALSO WILL - DEFINITELY - MOTIVATE OTHERS TO "CUT TO THE CHASE" AND FIGHT THEIR WAY OUT OF THEIR PREDICAMENT. I'M NOT SURE SPEAKING IN THOSE TERMS (IMPLYING THAT THEIR URGENCY IS INVALID OR MISDIRECTED) TO THE SEGMENT THAT IS FIGHTING, IS VERY PRODUCTIVE. IT COULD BE PERCEIVED AS CONDESCENDING AND INAPPROPRIATE, AND THEREFORE COUNTER-PRODUCTIVE.
A. I shouldn’t want that. What I would like to get at is what if one felt the urgency you speak of, feel what you feel, but did not react the way you propose. As the drill sargeants say, “your first reaction will get you killed.”
What if it turns out that “fighting your way out” is unproductive. What if it does not work in general, and for you in particular. How will being worse off in 2 years be an improvement over today?
As you probably know, you are hardly alone in your predicament. The other element is the idea that there is a system that works, that you can follow, and get a reasonably guaranteed result. Business is more interesting and important than that.
B. IF THE NEED FOR PROFITABILITY IS URGENT AND FOLLOWING A SYSTEM THAT WORKS DOESN'T PROVIDE INCOME IN THE NEAR TERM, IT IN FACT DOESN'T WORK IN THAT SITUATION.
A. That is axiomatic. But what if one were to step back and ask a harder question: Is profitability urgent, or is self-transformation urgent. If your heretofore premises have not been reliable, then perhaps the need for change is internal, not external.
But what about the need for income for the near term? As one gal said to me, “what is the worse that can happen?” Rent doesn’t get paid, you sell something to feed the kids, life goes on.
At this point I would refer people to Dave Ramsay , since he has a game plan, kindly expressed, pedagogically sound, and rational. But when Ramsey says “get a better job” I’d say start your own business. When he says when you have a cushion, invest in stocks and bonds I say buy gold (this week, who knows next week...) Once your attitude is: “another aspect to my enterprise is personal transformation,” then the urgency moves to the background, lifestyle moves to the fore.
Steve Jobs never thought he would end up selling telephones. He has no idea what he will be doing ten years from now. But Steve Jobs certainly considers Apple a venue for self-improvement and actualization.
B. STEVE JOBS ISN'T WORRYING - AND NEVER DID - ABOUT WHETHER THE NEXT MONTH'S RENT IS PAID OR HIS KIDS HAVE LUNCH MONEY.
A. O sure he did. he was once so hard up he famously burned his partner Woz by not sharing a few hundred bucks profit on a sale. It is not possible to assess another’s experience of anxiety, but I think we can be pretty sure Jobs has experienced life in various extremes. Jobs has been busted a couple of times, and has come back. He did not fight, he changed.
I do hear your specific request for business plan outline, and if I hear you correct, you want content. What I do not understand is why you would want to plug in my info into your business plan. You need to plug in your customer info into the biz plan. No two businesses are alike.
I think this is the "tough question" you have in mind, from the transcripts:
“B: realistically, how many products in the $40 retail range does it take to get a business onto relatively solid financial ground, in gifts and housewares, your field?”
The question does not have the word "customer" in it. It seems to me that the question should be "B: realistically, how many customers in the $40 retail range does it take to get a business onto relatively solid financial ground?”
B. "CUSTOMER" WAS NOT LEFT OUT OF THE QUESTION; IT WAS IMPLIED INTO THE QUESTION. AS IN, "HOW MANY PRODUCTS (THAT ARE ORDERED OR RE-ORDERED BY THE REQUISITE NUMBER OF CUSTOMERS AND DELIVERED ON TIME) ARE THERE IN A TYPICAL PRODUCT PORTFOLIO THAT IS REASONABLY PROFITABLE? IN OTHER WORDS, HOW LONG IS IT GOING TO TAKE IN GIFTS AND HOUSEWARES BUSINESS, TO EXPECT THAT IT REACHES SOLID FINANCIAL GROUND? THIS IS BASIC "BUSINESS 101".
A. If basic business 101 as you perceive it has not worked out so well before, perhaps it is time to change the stipulations, or change ones own philosophy to biz 101.
Also, I am sure you understand that all business plans are dead wrong and should be expected to be. They are benchmarks so you can adjust as they go wrong. As I understand it you want a biz plan with hard numbers so you can borrow money. But I think the fundamental error is we need to borrow money to start a business.
B. SOUNDS GREAT IN THEORY BUT EVEN YOU SAY THAT THERE ARE SOME COSTS ASSOCIATED WITH ANY STARTUP, EVEN THIS KIND. IF THERE IS NO MONEY... LET ME REITERATE... NO MONEY... FOR ANYTHING OTHER THAN BASIC LIFE ESSENTIALS (FOOD, WATER, SHELTER), THEN PERHAPS A BUSINESS LOAN MAY BE IN ORDER? TRUST ME, IF IT WASN'T NECESSARY - READ THAT "NOT OPTIONAL" - I WOULDN'T DO IT.
A. If there is money for food, water, shelter, then there is money. Reduce the costs of the above, and then you net extra money. It may involve moving, changing diet, and getting free water, but it can be done.
You can come up with $5000 by working at anything and waiting on the launch of your biz. $5000 rolled over and over as $10,000 in sales grows. How does giving someone 7% or more help you get ahead? Better to get some cash stashed and then move forward.
One risky aspect of using a business plan is that it may be abused to get a loan to finance a lifestyle, with a hope that maybe a business will take off.
B. I UNDERSTAND THIS MORE THAN MOST. THE POINT OF TELLING YOU THAT I SUCCESSFULLY BUILT A $.5M BUSINESS FROM AN $8K INCOME TAX REFUND WAS TO ILLUSTRATE THAT VERY POINT. I NEVER BORROWED A PENNY AND NEVER GAVE ANYONE EVEN 1% OF THE EQUITY IN THAT BUSINESS. BUT THAT SITUATION WAS VERY DIFFERENT IN THAT I HAD A SPOUSE TO PROVIDE THE BASIC ESSENTIALS FOR OUR FAMILY, WHILE I WAS FREE TO DEDICATE 100% OF MY TIME AND ENERGY TO BUILDING THAT BUSINESS. I ALSO UNDERSTAND THAT YOU'RE TALKING GENERALITIES, AS IT APPLIES TO TEACHING YOUR COURSE. BUT I'M SPEAKING TO MY SPECIFIC SITUATION.
A. Too many moral hazards with a business loan, not to mention that if your business works, why share 8% interest with someone else?
When you get to it is a good idea and does not exist after visiting those six retailers "six times each" then you get the samples, get the facts on costs and logistics, and then go back and ask those very retailers Now the tough questions come: "May I have your order?"
B. YOU'RE DEAD WRONG, IN MY OPINION. YOU'VE CLEARLY NEVER BEEN IN THE SITUATION I'VE SPELLED OUT. I DON'T HAVE THE LUXURY OF TAKING WEEKS AND PERHAPS MONTHS TO FIGURE OUT WHETHER IT WORKS. I'M MORE INTERERSTED IN A QUICK-AND-DIRTY FEASIBILITY STUDY (BUSINESS PLAN FINANCIALS - "BUSINESS 101") TO SEE IF THIS IS A WORTHWHILE USE OF MY LIMITED TIME AND RESOURCES.
A. Well, you do not know that, but what if I have, and my argument is from being in the same position, but taking a different path out.
When you say you have a minor disappointment that you expected fundamental start-up information, I am not sure how one can get more fundamental than "get your customers first." So your comment is a bit mysterious to me.
B. JOHN, YOU SEEM LIKE A VERY NICE GUY AND YOU'VE CLEARLY HAD THIS DISCUSSION MANY TIMES. HOWEVER... I SUSPECT YOU'VE NEVER BEEN IN THE SITUATION OF HAVING TO START A BUSINESS WITHIN THE LIMITATIONS THAT I'M CURRENTLY FACING. AND I HOPE YOU NEVER DO, MY FRIEND.
A. Again, are you assuming the only reaction to the given circumstances is the reaction you have? What if I have in fact been in such circumstances, and found a way out other than you presume is the best way out? But let me ask you, exactly what do you consider fundamental start-up information? My business plan? That's already in the book. And I can give you others. But those would be a waste of time.
My providing you with market data for your business plan? That you can and should do yourself, as I lay out in the book.
B. I AM VERY AWARE OF THE "GIVE A MAN A FISH AND HE'LL EAT FOR A DAY; TEACH HIM TO FISH AND HE'LL EAT FOR A LIFETIME" THEORY. BUT AGAIN, IF IT TAKES A LONG TIME TO TEACH HIM AND HE'S NOT EATING IN THE MEANTIME, HE'LL STARVE!
A. But you are not in any risk of starving. You are not in extremis. You have plenty of options.
Anyway, I thrown out various thoughts to see if any of them help, and I am keen on this discussion, for as I said, I think very many people are in the same boat as you. Maybe even me, but that is irrelevant. Most people think if they play the game as laid out by those in the commanding heights, they can expect certain results. This mindset is doubly deleterious: its not true, never was, plus those who fail at it think there is something wrong with themselves. It just aint so. Your success depends on your customers, and you ever more better serving them. The only hard part is getting the product right.
Anyway, tell me exactly what you want in terms of fundamental info. I'll see if I can help.
B. I APPRECIATE THE OFFER BUT AT THIS POINT I CANNOT AFFORD TO DEVOTE THE MAJORITY OF MY TIME AND ENERGY TO THIS PROJECT. I MUST PURSUE MY OTHER BUSINESSES VIGOROUSLY TO PAY THE BILLS, AND WILL ALLOCATE ANY LEFTOVER TIME TO THIS. IT IS INDEED "HARD TO REMIND YOURSELF, WHEN YOU'RE UP TO YOUR BUTT IN ALLIGATORS, THAT THE INITIAL OBJECTIVE WAS TO DRAIN THE SWAMP!" I'M DEALING WITH ALLIGATORS.
A. But I am most interested in fleshing out and countering what I see as erroneous premises, the ones I think that are common in USA circa 2010, and keep people from thriving in business.
B. A WORTHWHILE ACADEMIC PURSUIT FOR YOUR PROGRAM, I'M SURE.
A. I'd like to ask you some "tough questions" too in relation to this topic, that I think, if you were to answer, may yield some useful observations. For example, how come you told me about your background?
B. MY ONLY PURPOSE FOR TELLING YOU MY BACKGROUND WAS TO GIVE YOU THE SENSE THAT I'M NOT SOME SNOTTY NOSE KID WHO DON'T KNOW SH*T FROM SHINOLA, THAT I PROBABLY HAVE MORE EXPERIENCE AND KNOWLEDGE IN STARTING SMALL BUSINESSES THAN YOU, JUST NOT IMPORT/EXPORT BUSINESSES. THAT I ADMIRE WHAT YOU'VE DONE, RESPECT YOU FOR YOUR KNOWLEDGE AND EXPERIENCE IN IMEX, AND TO GIVE YOU A SENSE THAT IF I ASK QUESTIONS, I'M NOT DOING IT TO HEAR MYSELF TALK. AND THE FINANCIAL STUFF WAS TO GIVE YOU AN APPRECIATION FOR THE URGENCY.
A. Let me dissect this:
MY ONLY PURPOSE FOR TELLING YOU MY BACKGROUND WAS TO GIVE YOU THE SENSE THAT I'M NOT SOME SNOTTY NOSE KID WHO DON'T KNOW SH*T FROM SHINOLA,
*** Surely I would not base fundamental advice, true in all circumstances, time and place on one’s background!***
THAT I PROBABLY HAVE MORE EXPERIENCE AND KNOWLEDGE IN STARTING SMALL BUSINESSES THAN YOU,
***This you cannot know, since I have carefully said nothing about my work...and what does it matter, I learn form people with less experience all the time.... “out of the mouths of babes” and all that...***
JUST NOT IMPORT/EXPORT BUSINESSES. THAT I ADMIRE WHAT YOU'VE DONE, RESPECT YOU FOR YOUR KNOWLEDGE AND EXPERIENCE IN IMEX,
***impertinent, since I do what I do for me, not to impress others... and I only pass on what I learned, since people ask... I do not have a ego investment in what I teach, I only teach because people keep signing up for my courses.***
AND TO GIVE YOU A SENSE THAT IF I ASK QUESTIONS, I'M NOT DOING IT TO HEAR MYSELF TALK. AND THE FINANCIAL STUFF WAS TO GIVE YOU AN APPRECIATION FOR THE URGENCY.
*** Here are two themes I keep hearing, not unique to you, which I need to explore more... entitlement and urgency. “My background is unique, therefore I should be handled uniquely”: “my circumstances are urgent.” Joe Girard says what can you offer each customer that no one else can have, so I am vilating his rule inasmuch as I give everyone the same thing. But there you have it.***
A. Do let me know if I can address your questions more directly, and do let me know if you are willing to pursue this other thread as well...
I UNDERSTAND THAT YOU PURSUE THIS LINE OF ARGUMENT FOR ACADEMIC PURPOSES, AND I HOPE IT'S BEEN PRODUCTIVE. I DON'T BELIEVE THAT I FIT THE TYPICAL PSYCHOGRAPHIC FOR YOUR COURSE, SO IT'S PROBABLY OF LIMITED USE FOR THOSE WHO ARE MORE TYPICAL.
*** But the reason I’ve taken time on this is that this is a very common scenario.***
1 comments:
Interesting exchange. I believe Wallace Wattles in "The Science of Getting Rich" has some sage advice on this question of personal transformation versus urgent need to survive:
"You are not obliged to do what you do not like to do, and should not do it except as a means to bring you to the doing of the thing you want to do.
If there are past mistakes whose consequences have placed you in an undesirable business or environment, you may be obliged for some time to do what you do not like to do; but you can make the doing of it pleasant by knowing that it is making it possible for you to come to the doing of what you want to do.
If you feel that you are not in the right vocation, do not act too hastily in trying to get into another one. The best way, generally, to change business or environment is by growth."
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