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Entrepreneurs, There is Great Folly in Rewarding A, While Hoping For B

May 13th, 2009
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the beauty of being glum
Creative Commons License photo credit: Publicly Sc(∀)lped

Entrepreneurs, in this post I share with you an eye-opening article that I read in graduate school. This article helped me to be more aware of the reward systems that I was using in every area of my business life. I changed the way I interacted with my employees, peers and clients.  I hope this classic article (updated version) is as helpful for you as it has been for me and many other business people. Read, learn and enjoy.

Kerr, S. (1975). “On the Folly of Rewarding A, While Hoping for B.” Academy of Management Journal, 18(4): 769-783.

Entrepreneurs, Turn Past Failures Into Successes (Part 1)

May 6th, 2009
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FAIL stamp
Creative Commons License photo credit: hans.gerwitz

Too many entrepreneurs allow their past failures to keep them from moving forward and pursuing new opportunities.  They tend to magnify these failures and allow these failures to hold them hostage. Don’t let this be you. In this post I give you 3 of the 7 bite sized nuggets to consider about your past failures and show you how to use these as stepping-stones to new opportunities.

Forgive yourself – It is amazing how hard we entrepreneurs can be on ourselves. When we make mistakes we often blame ourselves and then condemn ourselves to the entrepreneurial dungeon. To be truly successful as an entrepreneur you need to take responsibility for the mistake but don’t dwell on it and condemn yourself. You also shouldn’t blame others either. Even if they were a part of the reason you made the mistake, forgive them. Lack of forgiveness is a negative drain on your present and it sabotages your future.

Don’t allow fear to hold you hostage – Sometimes we are able to forgive ourselves but we are afraid to try again. We allow the fear of failing again to hold us back. It is imperative that we get past this stage. The key is to properly define failure. As entrepreneurs we must realize that to fail at something is just an event not a state of being. We are not failures because we have failed attempts. As a matter of fact, most successful entrepreneurs have had many failed attempts. They usually have many more failed attempts than the average entrepreneur. In order to move forward we must resolve to make another attempt using the information we gained from this event. 

Glean lessons from the failed attempt – As an entrepreneur it is important to measure and analyze. Think of yourself as a scientist when it comes to attempts. Look at the failed attempt objectively and determine what went wrong. Identify all of the contributing factors that went into this being a failed attempt and then prioritize the factors. You will probably find that one or two factors contributed to the failure considerably more than any other factor. Isolate these factors and do an analysis to see what you can do to make changes in this area.

In Part 2 of this series I will share with you 4 other nuggets. As always I look forward to your comments.

9 Questions You Must Answer Before Creating A Home-Based Office

March 23rd, 2009
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home office closeup
Creative Commons License photo credit: faster panda kill kill

It seems like every working person’s dream is to leave the office and set up shop at home.  Before you get too used to the idea, however, think it through and know what to expect so the experience is as great as you imagine.

1.  What kind of work will you do at home?  It is never a good idea to leave a job without a plan.  Setting up a freelance business means a time lag between contracting with a client and getting that first paycheck.  Line up work ahead of time so your business is already on line before you leave your day job.

2.  Can your finances survive the move to a home office?   If you are quitting a day job in favor of starting your own business, sit down with the family and gauge your financial situation.  Consider establishing an emergency fund to cover any unexpected expenses or normal household bills until the home business starts bringing in money. 

3.  Where in your home will you work? Set office space apart from the rest of the house.  You might have visions of sitting in your pajamas at the kitchen table while working on the computer, but that gets old really fast.  Your productivity will likely give way to cleaning the kitchen, fixing breakfast, and watching television.  A room dedicated to your home business is the best way to maintain your focus on work even though you are at home.

4.  What equipment is needed to run a home office?  Before you pull up stakes, be sure to purchase all the items you’ll use in the home office.  The basic essentials include a separate telephone line, a printer, a fax, a computer devoted to business, and of course a desk and chair.  Hit the ground running with your home business.

5.  How will you manage the children?  Moms who start their own home business get to spend more time with their kids.  But, as good as that sounds, the kids can also distract you from doing the work you need to get done.  Decide how you will handle work time and family time before you come home.

6.  Who will handle the housework? The battle between housework and office work is never ending.  Just because you are at home doesn’t mean you have time to do all of the chores.  Your primary concern is getting the home business off the ground.  Between you and your family, discuss what is expected of each person.  You might be home but it is in a working capacity.  Everyone can pitch in with the work.

 7. What hours will you work? Clearly delineating what hours you will work will save you a lot of hassle. If other people live with you it will be important to manage their expectations. If they are not used to having you home they may interrupt you often. It is important for you to let everyone know when you are working and when you are available. Be sure to set-up and post specific hours as work hours. This is important even if you live alone because if will help keep you honest.  It will help you in two ways. You will know when to start working and equally important when to stop working.

8. Who will you be accountable to? Just because you are working from home doesn’t mean you have to go it alone. Actually, it is very important to establish an accountability relationship. Find someone else who is in a non-competing business and exchange your weekly goal lists. Connect with you accountability partner once a week to review what goals you have met and what goals you’ve missed. Just knowing someone is checking in on you will help you meet your more of your goals.

9. Who are you networking with? Working from home can be lonely.  It is important to get out and network. Meet with you clients face-to-face sometimes if possible. Find and join networking groups. Get out and walk around your neighborhood. Not only will this refresh you but you may get some great ideas for your business.

 

Working from home has its benefits but they come from being prepared.  Before deciding to leave the work force and come home, know what to expect.

21 Characteristics of the Successful Entrepreneur

March 9th, 2009
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Bill Gates @ the University of Waterloo

What characteristics make top entrepreneurs successful? There are many but here are 21 that I think really make a difference.

How many of these do you possess?

 

 

 

 

 

 Creative Commons License photo credit: batmoo 

Top Entrepreneurs:

 

  • Believe that they can make a difference
  • Have a bent towards action
  • Think Strategically
  • Feel the fear and do it anyway
  • Work from a written mission and vision
  • Are opportunity focused
  • Are problem solvers
  • Think long term
  • Have a sense of urgency
  • Think win-win
  • Know how to manage risk
  • Believe in themselves
  • Have boundless optimism
  • Surround themselves with smart people
  • Have a deep understanding of human nature
  • Have a tolerance for uncertainty
  • Create opportunities
  • Recovery quickly from disappointments
  • Are results-oriented
  • Are genuinely concerned about others
  • Believe that they will win

 Please keep in mind that entrepreneurs possess these qualities in varying degrees. Don’t be discouraged if you don’t possess all of these qualities in abundance. Begin working on developing some of these and improve your success as an entrepreneur.

Check out these resources:

Stanford’s Entrepreneurship Corner

 

 

EvanCarmichael

What characteristics do you think top entrepreneurs possess?