Last Lecture

Hopefully “not” My Last Lecture

I have learned a lot over the course of the past 12 weeks about entrepreneurship. I have learned not to procrastinate things, but to take action every day in learning something new and applying something that you have learned. A common statement is that luck is where preparation meets opportunity. People will have many opportunities in their life, but the key is to prepare now. We can learn from our experiences and take them with us. I have learned to better manage my time and to not overwhelm myself with things that don’t matter.

Ask yourself, “What matters most?” It could be family, career, an education. Make sure to prioritize these into your schedule. Don’t lose sight of what matters most. Once you have identified your focus, learn to ask questions. We all need good mentors and asking the right questions will teach us valuable lessons.

My favorite part of the course was doing the two interviews. I interviewed two different business owners who had a wealth of knowledge and advice. If you seek advice, seek it from others who have experienced the journey you want to take. You will learn from their setbacks and successes.

Randy Pausch shared in his last lecture three keys to his success: determination, support from family, and having a motivating purpose for the success of his career. As an entrepreneur, we need determination, we need support from others, and we need to have a reason behind what we do. What is the greater goal or purpose behind our business ideas? I have learned to ask better questions. We can dream, we can learn from experiences, setbacks, and failures, and we can be leaders.

In all we do, we need to remember to bring others along on our journey. We cannot do everything alone. Part of being an entrepreneur means working with others and doing it for others. I have learned to step back and dream big, and then to take action, one step at a time. 

Working on Your Business – Fail Forward

Working on Your Business 

A successful business needs both leadership from the owner and wisdom in building the business by delegating some of the daily operations and details to employees.  In order to work on the business, you need to balance your time between working in the business and strategizing by working on the business. In building a business it is important to work both on and in a business. A thought out business runs by systems that are in place instead of by specific individuals. It can be duplicated and eventually sold as a turn-key operation.

Tom Nall developed Republic Tequilla, an organic tequila business. He has made his mark in the industry by focusing on making his product stand out as a better tequila and a better business. Tom shares that success in business requires both determination and fear because fear can motivate you to keep trying until you succeed. He has learned from every job and position in life. Tom shares that we should learn and build upon our experiences. His multiple experiences were like an internship for the job he does now. To compete with the big companies, you have to have more imagination and something better to offer. Being an entrepreneur means taking “calculated” risks. You need to be an optimist. Tom wants to give his employees the opportunity to be successful. Core values are at the top of his list: integrity, treating people right, and honesty. Hiring people, he looks for people who want to do better and people who have a greater vision for their lives.

Michael Jordan missed more than 9000 shots in his career. Getting up and trying again is what has made him so good at Basketball. Michael Jordan states, “I have failed over and over again in my life, and that is why I succeed.” Sales is often a numbers game. The more people you try to sell to, the greater your chance of success. Business is about learning from our mistakes and pushing forward.

Thomas Monson talks about great expectations. Our Heavenly Father has great expectations for each of us. There are eternal consequences for our choices. We are preparing for the future and for eternity. He states, “When the time for decision arises, the time for preparation has passed.” We need to teach our children. What is put into our minds in the first eight years is there to stay. An educated man can think and accomplish things. This is what it should mean when we get an education. We need to also get a testimony. Man’s earthly existence is a test. Will we pursue spiritual qualities or earthly pursuits? Perseverance and help other’s in their life. How many people did we help? We can never love the lord until we serve him in serving his people. Can we say as did Paul that we have fought a good fight, finished the course, and kept the faith.

“work will win when wishy washy wishing won’t” - Monson

$100 Challenge – The Perfect Cookie

The challenge is over. This week I created my PowerPoint presentation and YouTube video. My final sale did not go through. Overall, I profited just over $100. I don’t think I want to get into the food industry business unless it is as a hobby instead of a business. I have learned about business plans, being an entrepreneur, creating online videos, and Powerpoints. 

Family Businesses

Family Businesses

Action Hero – Erick Slaubaugh

Erick joined his dad’s business when he was 19. He helped build the alarm system business and became CEO. To Erick, starting a business means making sacrifices. You have to sacrifice to put your money and time into making the business successful. You will put in extra hours, even on weekends to grow the business. In addition to sacrifices, starting a business takes courage. Erick believes that anyone can start a business if they really want. Asking questions is a good thing. It is not a sign of weakness, but a sign that you want to learn and improve. Having mentors helps to make sure your thinking is on track. There will be times when you have to make tough decisions. One of those for Erick was when he had to let his dad go from working in the business. Downsizing is difficult as well because it affects the livelihood of other families and individuals. Erick also learned that you should focus your efforts on what you know. He tried to get into a different business market, but realizes that he would have been better off investing in his current business rather than a new and different venture.

Family Business Equity

In the family business, dividing up ownership or equity does a few things. Equity would be what is left after expenses are subtracted from the income. If each family member owns a certain percentage, the business can eventually either be sold or equity can be bought out from another business owner that doesn’t want to continue in the business. Having equity also gives each member responsibility with the debt the business acquires.

Research the Business

It is important to do your due diligence when considering a new business. It should be in an industry you have researched and are familiar with.

Business Plan and Vision

In a family business the successor should have a vision for the company. The vision needs to incorporate potential for expansion, growth and development.

$100 Challenge – The Perfect Cookie

I have learned that “The Perfect Cookie” is not so perfect a business. I burned my arm when making one of the cookies due to the style pan I was using. (It separated causing one part to fall on my arm when removing it from the oven.) I also had to replace my decorating kit and had added costs of cooking parchment paper to more evenly cook the cookies. I started working on the PowerPoint. It is hard convincing investors to invest in a business that I no longer want to invest in.  All my sales are done.

Franchises

Franchises

Strive for an “A” Business

Lynn G Robbins gave a talk titled, “Making a Living and a Life.” I learned that pride is wanting more than others. We need to focus on not just making a living, but making an honest living. In our business and life, are we building the kingdom, being honest, filling our life with good works? If we are at the “A” level, we should seek for the kingdom of God to do good before seeking riches. Our focus should be the love of God and our fellow man. We will be a kingdom builder. Business is products and services rather than needs. At the “B” level, there is still a love of fellow man, but the primary motive is money. A “C” level company will sell you something but not service it as selling the service and receiving money is the primary motive. The “D” level focuses on filthy lucre and is harmful to customers or clients. Finally, the “F” category harms society. We need to strive to have an “A” business. In all businesses, what is our focus?  Can we ask the Lord’s blessing in our endeavors? When questionable products or services are involved are we directly or indirectly involved. Does the product or service hurt society? This article really makes me think about what kind of work I want to be involved in. Finally, in the end, are we neglecting the most important class of all in how we treating mankind? Mankind is our true business.

Nicole Donnelly – Action Hero

Nicole had an idea to use legwarmers on her baby and discovered it helped prevent baby’s leg rash. This inspired Nicole to start her own business. She created the product, “Baby Legs” which is now available in stores worldwide. Nicole shares that we should embrace fear and work through it. She was into snowboarding and shared a lesson that she learned. The lesson was to “commit to the trick.” In other words, if we are in the middle of the air on a snowboard, we don’t quit half way, we need to follow through. She has learned that business requires both leadership and teamwork. She recommends that we know our numbers and understand the accounting in the business. Now that Nicole is doing well, she is giving back to the community through donations of her product. Getting a business to a point of giving back is what makes it most rewarding.

Franchisees

I had the fortunate opportunity to interview Marv Mackin, a long-time franchisee of four Taco Bell locations in California. Marv purchased his first location in 1967 while attending college. When financing, Marv suggests getting a SBA Loan (small business loan) and then using small banks for additional funding. SBA’s like working with and funding franchisees. If you finance 40% of the project through SBA loan, you can usually get a small business loan for 5% over 20 years. The bank loans are usually higher and for shorter durations. Running a franchise takes a person with high energy and attention to detail. Marv warns that if you don’t watch closely, you won’t be successful. He taught me that a lot of work and money goes into making a business successful. But most importantly, doing it right was more important than the number of restaurants.

 Which Franchise is right for you?

There are several factors to consider when deciding if a franchise is right for you. The article on, “How Franchising Works” tells us to consider the following: What is the work environment like? What are the projections on sales? Can you put together an accurate business plan and qualify for business loans? Additionally, you need to research the market and fees involved in the franchise, get advice from an attorney who specializes in franchises. Have them negotiate points on the final contract, and know the renewal laws and options for the franchise including what is required to transfer the franchise to another owner.

$100 Project – The Perfect Cookie

The Perfect Cookie is ready to wrap up. I have one more possible order. I talked to someone about making another cookie for Easter. I didn’t do anything else in the business this week because I had no sales. I did make a giant cookie for the missionaries, but didn’t sell it. 

Business Process

Burt’s Bees

I think the business should not be sold until either the profits slow or until Roxanne and Burt really want out. For now, I think Roxanne and Burt should start production in North Carolina and see where it takes them. When Quimby applied for a credit card she needed a cosigner. I do think that even though the company had money in the bank is would be wise to have a large credit line just in case the start-up production costs were high initially. She also didn’t have a lot of business education and would need to hire some experiences business help. Like Quimby I don’t like debt, but I think in business it may be necessary to expand if it is done wisely. Initially Quimby was doing things right by building slowly without going into debt.

In my recent interview the business owner did not acquire any debt in his business. He said that it is too risky to owe interest on top of start-up costs for a business. He also said that he would never get a loan that was 10% or higher. That is why Quimby should get a line that doesn’t have to be used and won’t acquire interest unless it is used. I think it is a safety net for her business until she has progressed the production phase and sees continuous profit in mass production.

United in Building the Kingdom of God – L. Tom Perry

The Book of Mormon teaches us cycles of human behavior. We see how people fall when they turn to worldly possessions and needs. Whether we have too much or too little, the Lord wants us to use our resources to build the kingdom of God. The Book of Mormon teaches us to not discriminate, but to share what we have. If we seek first for the kingdom of God and then obtain riches (invest in things of an eternal nature), we will use those riches to do good. In business, our first priority should not be to seek for profit, but to have a greater purpose. Small things often become great things. Even in business, we can begin small and build one step at a time.

Entrepreneur Tips

In building our business we should not settle for less than the best people. Get people you like that you agree with. We also should aspire to be experts. Get to know your product or company idea very well before you start to hire employees. Technology is a great market to get into. The priority is to build a business instead of building a brand. Engineering degrees are very helpful in startups. Prove your model locally. Build a business because you love it and want to change the world, not for the money. Build the next big thing.

Catherine Rohr – Action Hero

Catherine was a Wall Street investor, but changed her business plan to teaching prisoners about running their own business. She taught convicts how to use their talents to run businesses. Most companies won’t hire convicted felons. Giving felons a goal and purpose after they get out give them a reason to do something with their lives even if they cannot find a regular job. At first, Catherine was judgmental about prisoners, but realized they were making big changes in their life and had untapped potential for greatness just like you and I. When she got knocked down, she had a resolve to get back up and not quit. There were obstacles, but Catherine was committed to make it work. Catherine suggests to seek out the best people and stay close to them. They will be a great resource in your business. Her vision to help these prisoners become productive citizens by teaching them skills while in prison has come to pass and inspires her daily.

Business Processes

The ways to avoid problems with implementing a new process are to "follow a process in the development and implementation." If things are not going smoothly, select what needs to be improved and analyze the way things are being currently done. Next include those in the process to get team feedback on ideas and structures that are currently in place, the order things are being done, and what things would help to make the flow or process work better. Ask "skeptics" that challenge the process to get feedback. This will help you avoid potential problems. Then get the resources to make the changes. It could be a new employee or a new system, etc. Once you have the ideas and new system in place, explain the new process to the members it affects and implement the changes. Make sure team members clearly understand the process and are constantly trying to find ways to improve the process as problems arise. As the process is working be sure to continue to evaluate the functionality and continue to review, improve, and adjust as needed. Problems will be sure to rise, but they can be minimized with proper communication and processes in place. 

$100 Challenge – The Perfect Cookie

I did not make any sales this week for my cookie challenge. To date I have made 16 cookies, one was a sample cookie not for sale. I made the $100 profit and will make more if there are more sales. I spent 1 hour on the design order page, 2 hours shopping on several occasions for supplies and ordering boxes online, 1 hour on delivery, and an average of an hour per cookie including the decorating. The total time spent was 20 hours. I was only successful because I had to do several cookies for a big event, but I am a terrible sales person. I don’t feel as though my product is something people want. I think smaller packages for a lower cost would have been better. 

Hiring

HIRING

In Hire Slow Fire Fast we learn to be selective a careful when hiring a new employee. We also learn that if things are not working out, to fire quickly. My husband is in charge of hiring and firing a team here in San Diego. He has plenty of openings and plenty of applicants, but he is very conservative in hiring and takes time to find the right people. The person must have ample qualifications on his/her resume. The person also must pass a phone pre-interview where if they are not extremely confident in their ability as a sales rep or difficult to understand, they won’t be called for a follow-up interview. Training begins immediately and new employees are mentored for each sale until they have the strategy down to a science. My husband is also very quick to fire. If the new employees don’t start off flying after training, he gives a performance review and pending the following week or two, they are usually out of a job. Following these hiring measures has enabled him to have the top growing team in the US for his company.

Jet Blue

Making Money in Jet Blue and the Advantageous Approach: JetBlue hired experienced leaders in the airline industry to create a new airline that focused on what customers really wanted: efficiency (paperless tickets and quick turnover) quality service (including more legroom and leather seats), and affordability. One thing they cut were the hot meals and for a fraction of the meal cost they instilled leather seats and TV monitors. They realized that people who flew didn’t care for airline food, but did enjoy watching TV and sitting in leather seats. To maximize profit, they focused on locations where there was a high demand for travel and reducing unimportant costs (like food no one likes).

Hiring GREAT people: Hire people with experience who share in the vision of the company. Ann Rhodes was in charge of human resources. She had worked for Southwest and knew what to look for in hiring the right people. Hiring committed people with experience and a focus on customer service added great value. The other top executives also had worked for other airlines in leadership positions (the executive VP, CFO, COO, VP of HR all had airline experience). Aside from upper management where experience was key, other hiring was focused on having the right attitude which meant many people did not have experience, but they had the right attitude. With the right people, deep funding, and experience as to what things could be improved on in the airline business, Jet Blue had a foundation for success. The focus of the company was safety, caring, integrity, fun, and passion.

I learn from Jet Blue to hire top executives that share in the vision and have experience. I learn to hire others with the right attitude. I have also learned that we can create a company by taking a current market and making changes to make it better (i.e. focusing on the non-flyer market who would rather drive or not go unless the fares were cheaper). See what is going wrong with the industry and find a way to improve it.

Michael Gerber’s E Myth

I have learned through Michael Gerber that we should follow the principles outlined in The E Myth Revisited. Develop the Entrepreneur, Manager, and Technician. Create a clear vision for the company. Develop a business model and follow a process. Work on your business to create a turn-key system. Specify job descriptions, hire the right people, and make the environment a place your employees thrive. Above all, be aware of the customer’s wants and make adjustments accordingly. As Michael Gerber has taught, let’s get started and create “a place where we can practice implementing ideas in a way that changes lives.”

Matt Stewart – Action Hero

Matt Stewart has started many businesses and corporations. He has experienced success and failure in business. The businesses that failed were the ones where his focus was on profit instead of teaching and learning. The successful businesses had a different approach. They were founded on core values and principles and focused on a mission. His original plan was to go into the legal profession and head off to law school, but this came to a halt when he lost his job. So he and some others started a painting company going again. At first he was an employee and then ended up buying half the business. This business taught him integrity and core values. At one point an employee died on the job. Matt used this very difficult experience to change the way the business was done, to change the equipment that was stocked. Sometimes entrepreneurs get overly excited about something they should never go into business over. Matt learned the hard way that even if you think you can do anything, sometimes you need to stay focused on what you know and be more careful with which businesses to pursue.  

Hiring

Mark Zuckerberg (Facebook) looks for raw intelligence when hiring. Intelligent people can adapt more quickly than people who might have years of experience in the same field. Some of the best people he has hired were right out of college.

People who LOVE the product or service are the people we should hire. Also hire people better than you. Finally, hire the people that you see waiting for the interview that you instantly want to go up and meet because you are hiring someone who will be part of your business family. – Guy Kawasaki

$100 Challenge – The Perfect Cookie

This has not been an easy project. I haven’t had a car this semester and so delivering the cookies, buying ingredients, and selling has been challenging. This week I replaced some ingredients in my home so that I would be able to make more cookie orders if they come. I had my sister donate money towards two cookies that I made for a function. I made them last week, but collected the money this week. I worked so hard last week on the cookies that this week has been a breather and I focused more on getting my interview done for the class. 

Leadership

The Savior’s Example

Some of the Savior’s attributes that President Kimball describes include being: understanding, having selfless leadership, being responsible, accountable, and making a good use of time. I think a good leader should have all of these, but the one I will mention is being a selfless leader. The Savior was a listening and loving leader. He could condemn the sin but not the person. He focused on the needs of others instead of self. As a leader in a business we need to listen to concerns of others, but point out where improvements can be made without condemning the person. These improvements are meant to help our employees grow. If others know we care about them and want them to be successful, they will value our direction for improvement. I also love that he was consistent in his choices. As business leaders, we have to be able to adjust to the changes in business, but our morals and values should not change. We need to be consistent with our values. We need to lead by example. Selfless leadership is thinking of others above yourself. I think the church is filled with selfless leaders. We serve for the benefit of those we serve. Many businesses have customer service as their focus. It is a selfless focus that makes customers want to return.

Emotional Intelligence

Emotional intelligence is self-awareness, self-regulation, motivation, empathy, and social skill. According to the article emotional intelligence was a bigger factor in great leadership than technical skills and IQ. The good news is that it can be learned with desire and effort.

The first skill is self-awareness. If we are self-aware we will be aware of managing our time. We will also be aware of other’s situations and act appropriately to their state. Being self-aware means we match our goals with our values. Self-aware people can talk about limitations and strengths. Self-regulation mean being able to control your moods and impulses and perhaps channel them in a good way. It means picking words carefully without judging too quickly. Motivation means doing more than expected and having passion for work itself. They want to track and see their results and stretch themselves to progress. Empathy means considering the employee’s feelings. Empathy will help you keep your teams of people feeling like part of something meaningful. Social skill is “friendliness with a purpose.”

Leadership

“Leaders are movers and shakers, original, inventive, unpredictable, imaginative, full of surprises.” (Nibley) Leaders act as equals working with others.

“The managers are safe, conservative, predictable, conforming organization men and team players, dedicated to the establishment.” Managers want to be above the rest. “Management shuns equality, it feeds on mediocrity.” (Nibley)

To lead like the Savior, we should lead by example, lead with vision, and lead with love. Are we good, average, or poor leaders? Do we lead directly or indirectly? What kind of leaders are we? Good leaders love all the sheep, they number the sheep and measure performance to find those who are lost. Then we find the lost sheep and help bear the burdens of the sheep that is found. We get others to also fellowship the returned sheep. Let the sheep get to know you and lead by personal example. We an lead like a shepherd, like the Savior. We need to sacrifice time and leadership for the flock.

Leadership is about capability (to ask questions and hear answers) It is also about learning something every day. The people who keep learning and trying are vibrant. Those who are able to change are the capable ones.  

Enchantment – Notes from Guy Kawasaki

If we trust people, they will trust us. Smile. Trustworthy people are bakers, not eaters. We need to default to yes and think about how you can help people. Anticipate what people will need. Ask yourself what are the reasons your company could fail. We need to pay things forward and do things for others. Learn to be able to speak (customize the introduction – something about you). When you speak, you need to sell your dream with the product. The optimal slides in a PowerPoint is 10 slides and be able to do it in 20 minutes. The optimal point size is 30 point. Use technology (remove speed bumps in technology). Provide value, insights, and assistance. Engage people fast within 24 hours. Consider the use of technology something that you will use all the time. To enchant a boss is to do what the boss asks immediately. Come up with a prototype fast. Deliver bad news early if something is going wrong and come up with suggestions to fix the problem. Tell people what you are helping them master and what the higher purpose is. Empower people to do things.

Ken Zolot

Entrepreneurs are willing to charge into the unknown and often difficult situations. They strive to make the best of them. Ken Zolot created Egenera and Heartland Robotics. Some of the things that made him successful were being pushing the limits and being curious. In school it was not easy because he didn’t want to conform to the rules. His parents taught that accountability is important. Employees and Management need to be accountable to each other. We should think about how to help others and rely on them. Notice when things are not right, fix them, and make sure people are well tended to. Ask the question of who cares and why. This will help you with product solutions. You need to have empathy for your market customers to see how you can solve problems. Decide if the market is ready for your vision. Push yourself to the edge to show the customers what they should want, but also look closely at the market to make sure it will work.

100 challenge – The Perfect Cookie

This week was very busy for my business. I made cookies all week for an event. I gave some discounts so I did not earn as much as I could. The problem was keeping the cookies fresh for the delivery day and making them ahead of time. I had to borrow someone’s freezer. I think I put in enough hours this week alone to satisfy the time requirement for the business. I only sold to three people, but I sold several cookies. This project has been a pain. I lost one of my decorating tips and spent $10 to buy a new kit. I also didn’t account for all the foil and additional parchment paper. I took pictures of the finished cookies. One person did not pay up front, so I will collect that next week. I cannot keep premade cookies fresh easily unless I freeze them before frosting them and then I think they don’t taste as good. I keep the collected money in a bag. With the additional expenses, I don’t know if I will profit $100. 

Customer Service

Customer Service: A Priority

Pay money to quit. A company wants employees who believe in the overall mission and purpose of the company. For Zappos, they want people who believe in and fit a certain culture that prioritizes customer service as the number one focus. Everyone goes through the same training as a call center rep. They want the same level of customer service across the board. They offer the entire class in training $2000 to quit and then it ups to $3000 if they quit. The biggest benefit is from the people who don’t take the offer because they have to really think about if this company is a company they really want to invest their time in. The second set of interviews is only on having a culture fit. Even performance reviews assess if employees are living the Zappos standards.

Paying people to quit should weed out those who don’t truly believe in the mission of the company. When people believe in a mission, a culture, a purpose they will stay with it even if they are offered money to quit. The business mission/culture should be so important to them that they don’t quit for a little money on the side.

Customer Approaches

A great way to approach a customer is to ask if they have ever been in your store before. This gets you on the path to see how you can best meet their needs. Find out the customer’s wants, desires, needs, and preferences. Remember that it is far easier to keep a customer, than to gain a new one. That is why customer satisfaction should be a top priority. The three ways to grow revenues are getting your customers to purchase a larger volume, more often, and to increase the number of customers. I would think that the best way to increase the number of customers is by word of mouth from happy prior customers. An important business model is to treat the customer as if they are always right.

Putting money into things that matter

In Jet Blue they decided to put money into things that really mattered. Food was something they decided not to included. They encouraged people to bring their own food and they serve inexpensive snacks. They did choose TVs because that would be memorable. What really matters? The TVs were a fraction of the cost of food. They also decided that they want people need to get on top as quickly as possible, so they cleaned quickly and offered to help put bags away to move the process more quickly.

Bud Brigham – action hero

Bud Brigham developed the belief and value to be the best he could be. As a youth he was raised in a broken home with divorced parents, six kids, and an alcoholic dad who died at an early age. Bud got married and learned the importance of philosophy and strong values. In his career, he built one of the most successful oil companies in America. He attributed his success to learning the business and surrounding himself with the best and brightest people. We won’t know everything and when we see that the competition is better or smarter, we need to compensate by surrounding ourselves with people who are also smarter. Our network should include people with a similar value system. Bud studied philosophy focusing on learning rational thinking, reason, and of living. His core values taught him the importance of being his best self. He encourages others to develop a strong value system to believe in and follow.

Customer Loyalty

The longer customers are loyal, the more profitable they are. Retention: This is because they spend more the longer they are retained. Related Sales: Related sales will more likely come from longer customers. Positive referrals are the best kind of marketing. Satisfied customers are likely to tell people about service. When finding customers, you need to determine who your target market is. Additionally, who is NOT your target market.

$100 Challenge – The Perfect Cookie

This week I sold one cookie. I might be making some this next week pending a possible order. I also made a sign-up sheet for my husband to bring to work.

Marketing

Marketing

The basic marketing checklist includes: product, pricing, promotion, positioning, publicity, packaging, pass along, and permissions. Marketing should make your product stand out like a purple cow. If you saw a purple cow it would stand out from the rest. (See Purple Cow by Seth Godin) The new rule for business is to create remarkable (not very good, but remarkable) products that the right people will SEEK out. This way you are not spending all your time trying to market to everyone. We must all be marketers and innovators. Marketing means asking new questions and trying new practices. Market to the customers you think will most likely influence other customers. Create something that appeals to the market. Create inventors (of new products) and milkers (those who maximize profit from current products).

Creating a niche means producing a unique product or service. This way you don’t have to compete with price. You don’t want something no one cares about. You want to be the single white tulip in the field. What is the unique valuable part of your product?

We need to improve our Likeability. One way is to improve your likeability is to improve your smile by smiling in your eyes. You should dress in a way to show respect for your clients/audience. Don’t overdress trying to put people to shame. You want to dress equal to your peers. You also want to have a great handshake (eye contact, appropriate verbal greeting, smile, grip and firm squeeze, smooth and dry handshake.) The point is that first impressions are important. Get feedback from your target audience.

Phil Romano believes that being an entrepreneur means being creative. He loves to create things that help people. What is the niche that will help those around us? What makes us stand out from the rest? Phil says that actions speak louder than words. He founded Fuddrucker’s and Macaroni Grill. He likes to actively create something that has never been created before. We shouldn’t think about making profit but rather we should think about doing something the customers want. He wanted to do all he could do and be productive. Even in his older age, he felt like now was the time to do things. Now he has started Hunger Busters to feed the homeless in his local community. Sometimes fear is a great motivator. If something doesn’t work, we are dead in the water, so we have to make it work. Having fear is a motivation of being an entrepreneur.

$100 Challenge Project “The Perfect Cookie”

This past week the order for boxes came to deliver my cookies in. I tried to sell to the neighbors, but got no sales. Tonight I am bringing samples to a game night with some friends to advertise and promote my business. I finished the elevator speech and think that went well. 

Marketing - HMM

Each department plays a role in marketing so that value can be brought to the customers. Problems need to be identified. Customers have basic wants, needs, and demands. Demands are what a customer wants (stated, real, unstated, delight, secret) and is willing to pay. Research as to what customers wants and what needs to be done. Direct Marketing is selling to customers direct (not through wholesalers or retailers). Relationship marketing is learning about your customer and customizing product to meet their needs. Marketing is planning the concept, price, promotion, and distribution of ideas to satisfy individual and company goals.  (Identify target, know competition, brainstorm new ideas, what is competitive edge, create a marketing plan, put strategy into action, evaluate effectiveness of strategy.) Once you know your competitor, you need to think about their strategy, objective, strength and weakness (what share of the market do they possess), ways of doing business (are they slow moving, selective, a tiger Fast to assault, or unpredictable) Consumers like new choices. Continuing to come up with new offerings is helpful because most things have a life cycle and go out of demand. Building loyal customers means being able to build your business by offering additional services and products that benefit a customer. Over time the customers will buy more from your business.

Budgets

February 6, 2016

Debt and Budget

Entrepreneurs can avoid debt by following a budget and earning money on the side while building their business. They can also avoid credit card debt. They can have a partner who funds the business for shared ownership.

Five key steps to financial freedom include: 1. Pay Tithing 2. Spend less than you earn. 3. Learn to save. 4. Honor your financial obligations. 5. Teach your children to follow your example.

The most difficult would be different for each person. For me spending less that I earn is hard from time to time. I buy very little. The times I spend more than I earn are with unexpected medical expenses that have come up. Also a family reunion that is across the country and cost $3000 to buy enough plane tickets might cause me to go into debt. It may be the last time our family see’s grandparents (we haven’t visited in 7 years) with failing health. The last big expense is educations loans. When you have two people in the family in college and one on a mission, the budget does not balance. These are just examples that can put people into thousands of dollars of debt. With this said, it is easy to justify, but justification is not the answer.

We can do avoid being greedy and covetous. Elder Wirthlin teaches that debt is a form of bondage. Instead of owning things, our things own us. We can also set aside money to save so that when it rains, we have a reserve to fall back on.

E-Myth  - Consistent Routine and Styles

This week I have learned how important it is to perfect and follow a consistent routine in our business and to teach it to the employees. I also learned that colors and styles matter. A blue suit with a red tie makes more sales than a brown suit. A crescent shape is better than a circle for a logo and a circle is far better than a triangle.

Action Hero – Desh Deshpande Passion and Optimism

Desh Deshpande came to the US with only $8 and was able to build a business in technology. He started out with only $8 and now has a company worth billions. One key to success for him was passion and optimism. Desh had a lot of optimism and always felt as though things would work out.  Life is about setting benchmarks. Knowing what is possible is one of the biggest gifts you can have. He earned a PHD and was educated in business, marketing, and technology which gave him a strong foundation to start his business. One difficulty was when Desh didn’t see eye to eye with his business partner and had to go separate ways. When things go wrong, you may think it is the end of the world, but it is a learning opportunity. As future problems arise, you will be better equipped to handle the difficulties. When you sit on problems for a little bit, things don’t seem quite so bad. Where you start is not as important as having motivation and aspiration. 

$100 Project – The Perfect Cookie

Today I got my daughter to fund the $20 initial investment for the giant cookie. I made the first cookie, took pictures, and sent my kids out to see if it would sell and to collect pre-orders for Valentine’s Day. They came back feeling discourage and sold nothing. Maybe this is how the missionaries feel out here. They get weird looks and have no investigators in our ward. It is a poor area and I think people don’t want to spend $12 for an 11 inch cookie. It is inexpensive for the size and quality, but they are all probably on food stamps (I am not trying to be judgmental, I am very serious - remember these are my neighbors and close to 90% of the school kids qualify for free or reduced school lunches). I know it is day one, but I am feeling very discouraged about this project. I don’t know many people, so the best bet is going door to door which is going nowhere. If I had a car I would drive to the richer neighborhoods.

Business

Elder Hales taught that it is important to know when to say, “We can’t afford it” or “We don’t need it.”

Guy Kawasaki says that the core of a successful company is to make meaning, not money. The purpose is to improve the quality of like. Another great purpose in your business is to right a wrong. A third is to stop from ending something good.

Budgets

The four paths to creating a budget include: making goals, finding ways to achieve the goals, and financing the goals. 1. Set goals 2. Evaluate and choose options (what tactic will you follow to meet goals) 3. How will this affect the budget 4. Coordinate department budgets

There are several types of budgets. I really liked the rolling budget the best. The rolling budget changed each month. It was still a year long, but as one month expired, you would add a month on continuing to have a year-long budget. This would be beneficial because instead of planning the budget for the entire year at once, you could adjust it slowly each month according the changes in expenses and revenues. I think this kind of budget is also best used on a personal level. In a business it may be too time consuming for the budget to be altered monthly, but I still think it is ideal. Budgets are action plans. One other budget I really liked was the Balanced Scorecard. It made sure that an appropriately balanced amount of money went into four categories of the business (financial, customer, internal, and improvement perspective categories). It is a great idea to see the big picture and balance the budget according to the big picture instead of just the little things that come up to spend money on. 

Business Plan Week

Business Plan Week

In the E-myth I learned that company design matters in a company. Circles are more appealing than triangles and crescents are the best to include in a logo. I also learned that the goal should be to get our business to become consistent in quality and service. That is why McDonald’s is so successful.

This week I learned about business plans. I learned that business plans share your vision and mission statement. They show objectives, strategy, and the step by step plans. Most business plans will include a cover page, table of contents, and an executive summary at the beginning.

Action Hero Paul Robshaw

Paul learned at a young age that it takes a lot of work to achieve success. He helped his dad with his real estate business starting at the age of thirteen. As an adult Paul began AIC ventures. During a difficult time in his life, Paul went through both bankruptcy and divorce. He learned that core values such as honesty, integrity, and faith in God were far more important than money and others. Paul learned to write about his thoughts and create a life plan that he would adjust from time to time. He is a big believer in having dreams without boundaries. Too often we limit our ideas by putting boundaries such as lack of money and lack of resources on them, but if we think about our dream and assume we have the things that are lacking, it opens up our creativity to think big and be inspired to go out and do.

The Lean Startup

Some entrepreneur myths are that a start-up is “a shrunken down big company.” This is not true. Startups are designed to start something new under conditions of uncertainty. The goal is to create something that will outlive us. Most startups have really bad ideas, but the successful startups test their ideas against reality. Eric Ries tells us that within each bad idea is a small good idea that can grow. Instead of giving up on our big ideas when they go wrong, we can adjust them as the business grows, also known as changing direction as needed.

E-myth

In the E-myth I learned that company design matters in a company. Circles are more appealing than triangles and crescents are the best to include in a logo. I also learned that the goal should be to get our business to become consistent in quality and service. That is why McDonald’s is so successful.

$100 challenge progress

I created my business plan for the $100 challenge and the Big Idea. The $100 challenge is called “The Perfect Cookie” and the Big Idea is called “Shape Style & Design.” I like both ideas. The next step for The Perfect Cookie is to order the boxes and create the sample cookie to photograph.

What it Means to Be an Entrepreneur

Melodie Morgan

Jan 23, 2016

President Hinckley told students at BYU – Idaho to do their best. We are a blessed people and we need to do our best.

What it Means to Be an Entrepreneur

In the Special Report Global Heroes we learn what it means to be an Entrepreneur. Entrepreneurial ideas are mainstream. Being an entrepreneur means being able to offer an innovative solution to a problem. There are several myths about entrepreneurs. Some include: being an outcast – Entrepreneurs actually need to network socially to succeed. Another is being young. Many entrepreneurs started when they were older. One is that you need venture capital funding, but many can start off with angel investors. One is that you need a new product, but in fact old ideas can be great businesses too. Both managers and entrepreneurs can make rational decisions, but entrepreneurs are much more capable of making risky decisions. Some believe an entrepreneur cannot flourish in a big company, but owner entrepreneurs are the ones that break into the big markets. Today opportunities are more numerous for entrepreneurs. Entrepreneurs can be successful in good and bad markets especially now with the computer, phone, and internet. It is easier to be an entrepreneur in America because it is deeply rooted in our history. Some threats to entrepreneurism include legal systems, patent trolls, tax laws. India and China have become the second and third most entrepreneurial countries in the world following the US which is in the lead.

Build the Kingdom of God

Tom Monaghan was the founder of Domino’s Pizza. Originally the pizza shop was named Dominicks but it changed to Domino’s and became very successful owning a large percent of the pizza market. At one Domino’s Pizza had 54% of all the pizza sales in the US. Tom grew up in an orphanage and as he became successful he became obsessed with owning many things. He wanted more than the next guy. Then he remembered what it was like in the orphanage. He was happy without anything. After reading “Mere Christianity” by C.S. Lewis, he felt guilt in having too much pride. He felt as though he was too obsessed with impressing people. He decided to change. Tom started Generous Giving, Inc. Tom decided to focus on giving to Catholic higher education and founded Ava Maria University. Now Tom focuses on the eternal picture and uses money to build the kingdom of God. Making money can be a blessing or a curse. It is important to use money to further the work of God.  

Business Advice

Scott Kriens teaches that we cannot make an assumption that we will always be smarter than the next guy. We can start working on problems first by recognizing the opportunities when they come.

Marissa Mayer says that ideas come from everywhere. She works for Google. She says that everyone who works there are expected to come up with ideas. It can come from wanting to solve a problem, idea acquisition, or from employees. Set up a system where people can contribute ideas and the best ideas will rise to the top.

Guy Kawasaki says that business models should be specific (a specific customer), simple (a simple model – unique model is a bad idea), make it, sell it, collect the money is a business model, ASK WOMEN, men want to create a company to kill another company.

Alexander Osterwalder says a business model is different for everyone.

Startup Nation says to 1) Use a descriptive name based on core strengths, a clear, compelling, creative name. 2) Do NOT base the company name on a product or service like CompUSA or RadioShack (products can change over time). 3) Don’t base your name on where you live. 4) Don’t use acronyms for the name. 5) Don’t use your last name.

In business we need to look have diverse groups that can brainstorm innovative ideas. From these ideas pool together solutions.

$100 Challenge Project

$100 Challenge Project. I have decided on making and selling the 11 inch cookies for $12 each. The next step will be to order some boxes for delivery and make a sample one that I can take a photo of and create a flyer sign-up sheet. I will give the flyer to my husband to bring to work and to my son to bring to school. They money will have to be paid before I buy ingredients. 

$100 challenge ideas

Melodie Morgan
January 16, 2016

$100 ideas 

This week I looked at several blogs. Some blogs had creative designs and videos, some were a compilation of articles or interviews, while others were thought provoking ideas. I liked both types.

The entrepreneur hero I learned about was Corey Bell. Corey Bell worked for several companies including Nabisco, Chrysler, and Dell, but it didn’t line up to the vision he had for his life. He decided on a way to touch people’s lives and started his own company. Cory Bell is the founder of Tri-Fusion, a hardware IT service company. When both of Corey’s parents died he decided to help raise his nine younger siblings. From this experience he came up with the saying that “The word can’t does not exist.” Corey wanted to live his life without wondering, “What if I had never tried?” When he meets people along the way, he tries to learn something from them. One of his philosophies is to give back and touch lives along the way. Corey’s company got together supplies to help hurricane victims. At the end of our life, the concern is who we are. Did we make an impact? That is what drives him.

This made me think about how I can impact those around me and do the best things with my life. What drives me?

 My top five ideas so far for the $100 challenge are:
1. Sell Cookie Cakes for Valentine’s Day
2. Take Pictures and Sell Other’s Things on Ebay for a Commission
3. Sell FHE Packets online
4. Make chocolate covered pretzels to sell
5. Sell Old Computers that my son helps fix