There are a lot of great business books out there for aspiring entrepreneurs. To me, the best business books are the ones that provide structure to your thinking and that explain the systems behind great businesses. The books that I recommend in this post do just that. To get your business right, you have to think right. These books help you think right about business.

 

This is a very important book for aspiring entrepreneurs. One trap that many entrepreneurs get caught in is the trap of spending all of their time working in the business and not enough time working on the business.  This has caused many businesses to fail. Michael Gerber effectively addresses this issue in his book.

 

Most entrepreneurs know about the Rich Dad series of books. While this whole book is great the reason I recommend this one for entrepreneurs is because chapters 30-36 provide structure to business ideas. In these chapters Robert Kiyosaki talks about the B-I Triangle and describes it as the key to great wealth. I agree.

 

This is a wonderful book for those who want to make innovation a part of their daily business lives. Yes it is a textbook but any person who is really serious about being a successful and innovative entrepreneur should read this book. If you can’t read the whole book at least read chapter 3 which helps you think beyond new products and new services to entirely new business concepts. With these tools you can go nonlinear in your thinking about business models. You must check this one out.

Do you have other great business books that you would recommend to other entrepreneurs? Please let me know in the comments.

photo credit: chegs

In my last post I shared 3 modes of thought that help you succeed as an entrepreneur. In this short post I share 1 more important mode of thought for entrepreneurs.

Think Like a Customer- So many entrepreneurs have great product and service ideas for their customers but they don’t really know their customers. They don’t spend time really interacting with their customers so they don’t know how their customers think. This is tragic. This is why many of the product and service ideas they have for their customers fail to deliver real value to the client and real profit for the entrepreneur. 

Successful entrepreneurs know how their customers think and so they know how their customers will react to new products and services. Indeed they can think like their customers. How did they develop this skill? They developed this skill by spending lots of time interacting with their customers. Asking not only what their customers want and need but finding out why their customers have this need. Then they spend time thinking deeply about the implications of what they have heard from their clients. 

Which clients should you focus on? This is a good place to think about the 80/20 rule. Since 20% of your customers create 80% of your profits, thinking like these customers will give you your greatest return on investment.

Take time today to spend time with your customers. Learn from them and learn to think like them.

As always, I solicit your feedback and your thoughts. This site is for you and I want to know what you think. Thank you.

photo credit: alexdecarvalho
In my second post on the 7 deadly mistakes new entrepreneurs make and how to avoid them, we discussed two more potentially deadly mistakes many new entrepreneurs make. In this post we will address another deadly mistake that both new and experienced entrepreneurs make. This mistake can be quite deadly and can affect all aspects of your business and personal life. What is it?

Deadly Mistake 5: Not recognizing and consistently applying the 80/20 principle

The 80/20 principle has been called by many names including the Pareto Principle, the Pareto Law, the 80/20 Rule, the Principle of Least Effort, and the Principle of Imbalance. As some of the names suggests this principle was discovered by Italian economist Vilfredo Pareto (1848-1923) in 1897.

What did Pareto discover?

To put it in its simplest form Pareto discovered a counterintuitive imbalance between causes and results. In other words, we naturally expect that 50% of the inputs to a process will produce 50% of the result, but this is not usually accurate. It is more likely that a smaller percentage of inputs will produce a disproportionately large amount of result. Indeed many times 20% of the inputs produce 80% of the result (see important note at the end of the post).

What does this mean to the entrepreneur?

This principle has far reaching implications for the entrepreneur. For example, we tend to think that all the activities we do are equally valuable in moving us forward. This is simply not true. There is an imbalance. Indeed 20% of the activities provide 80% of the results we desire. Further, the other 80% of the activities only add an additional 20% of the results we seek. This is instructive because it says that as entrepreneurs we should focus on the 20% activities that give us 80% of our results and delegate the other activities.

Another example of the 80/20 principle at work

We as entrepreneurs tend to think that all of our customers are equally valuable and should be treated equally. Using the 80/20 principle we would discover that 20% of our customers provide 80% of our profits. Here are a few ways you could use this information:

1. Do research and determine who these customers are
2. Interview these customers and find out why and how they use your product or service
3. Profile these customers so you can go after other customers with similar characteristics
4. Align your resources to serve these customers more effectively
5. Figure out ways to convert more of your customers into this category of customers

There are many other such imbalances. For example 20% of your products provide 80% of your profits and 20% of your employees produce 80% of your desired results. The point of this post is to get you to diligently look for these imbalances and find ways to use them. If you don’t, it can be deadly to your business.

Why not using this principle can be deadly

Hopefully it is obvious how this principal can be useful to you. It can be deadly if you don’t recognize and use this principle because you will not move forward effectively and you will miss huge opportunities. For example, simply not focusing on the 20% of customers that bring 80% of your profits can cause you to go out of business. This is deadly.

Important note

I know that this is an over-simplification of the Pareto principle. I wanted to keep it simple for the purpose of making it useful. There is a lot of variety in this principle that I plan to present in future posts. For example, it is an over-simplification to say that the split is always 80/20. It is not. It can be 60/40,70/30 or 99/1. The key is that there is an imbalance and we can exploit this imbalance.

Additional resource

For more information check out Richard Koch’s site.

Please let me hear your comments and please don’t keep this blog a secret. Tell your friends. Thank you.

photo credit: contemplativechristian

I don’t know about you but I am tired of people being scammed and bilked out of their money. Doesn’t it just sicken you when you hear about crimes like those committed by Bernie Madoff? What do you think about all those Internet scams and work at home scams. Where has integrity gone? Do we still know the definition of integrity?

 

What is integrity?

 

There are many ways to describe integrity. Here’s a simple description:

 

• Consistently doing the right thing even when no one is looking
• Doing no harm
• Delivering more than is expected

 

 If we as entrepreneurs and small business owners (and human beings) would simple do these to things, we could change the face of business.

 

Doing the right thing

 

I believe we all have an inner voice that helps us discern right from wrong.  Do what you know is right.  Be honest with your clients, your spouse, your family, your coworkers and yourself.

 

Be consistent in doing the right thing. Do it when people are looking and when people are not looking. It is liberating.

 

Doing no harm

 

Whether you are thinking about creating new products, advising your client or launching a new marketing initiative decide to do no harm. Always think about the effects your words and actions will have on others.

 

Deliver more than expected

 

I believe this is a part of living in integrity because so customers are so often disappointed with the quality of products and the level of service they receive from businesses. In order to exercise integrity, manage expectations and then over deliver. Say what you are going to deliver and deliver more. Go the extra mile.

 

The Power of integrity

 

Integrity is a powerful currency. When you live a life of integrity here are some of the powerful things happen for you:

 

• You develop a good name which opens doors for you
• You become more confident
• You simplify your life
• You live life in a state of positive flow
• You attract like-minded people who will help you meet your goals
• You gain credibility and favor
• You move towards your goals faster and you achieve more of your goals.

 

Action steps

 

Make a commitment to day to live you life with more integrity.  Make up your mind to do the right thing, look out for the best interest of others, and deliver more than what is expected of you. You will be rewarded in ways that you can’t imagine.

 

I would love to hear from you. How do you define integrity?

 

 

photo credit: Ernst Moeksis

There are many reasons you shouldn’t quit. In this post I share 5 reasons I believe you shouldn’t quit in your endeavor to create or improve your business or your life.

 

 

You are probably close to your breakthrough

 

It is strange the way life works. Many times when the temptation to quit is at its strongest is when you are closest to your breakthrough. It is as though your commitment to succeed is being tested right before reach your goal.

 

I know you have been working hard to get that next contract, that next business idea, the funding for your enterprise or any other worthy endeavor. I know it has been hard. I encourage you to step back a moment and gain perspective, approach it from a different angle, rest if you must, but don’t quit. Try again because you are almost there. Don’t quit.

 

Read a great poem about quitting.

 

You started this for a reason

 

This quest that you are on, you started for a reason. Take time to remember the “whys” of this endeavor. You did it for your family.  You did it because you believed it would make a difference. You did it to make a better life for yourself. You did it because you wanted to live as a better version of yourself.  Go back and rediscover the reason for your goal and here you will find the reason you shouldn’t quit. Don’t quit.

 

People are depending on what you are working on

 

You were put in this world to make a difference. Someone is depending on you. There is some person that deeply needs the very project that you are working on. You are not here just for yourself; you are here to solve a problem. Don’t quit because your project is very important to someone else. Don’t quit.

 

Even if you fail on this attempt you will have learned something important

 

You may be thinking of quitting because you are afraid to fail. I invite you to change your thinking about a failed attempt. If you have a failed attempt it doesn’t mean you are a failure. In fact, failure can be very good if you learn from it. Failure is meant to teach you something. Failure is only failure if you don’t try again. Don’t quit.

 

You don’t want to develop a habit of quitting

 

Don’t quit because quitting can become a negative habit. When you quit, many times it leads to a feeling of low self-esteem. This can drive you to quit other endeavors when it things get hard. You soon develop a habit of quitting which leads to a string of failures. This creates a vicious cycle and quitting and failure. Don’t quit.

 

What are some reasons you can think of not to quit? I look forward to your comments.

photo credit: Mary-Lynn

 As we all know there are some great resources and some not so great resources on the web for entrepreneurs. What follows are 5 great resources that inspire, inform and instruct budding entrepreneurs.  I have included one-person blogs and as well as multi-authored corporate sponsored websites.  While there are many more that I could have published, these five advise you, inspire you, instruct you and guide you. They will help you profit as an entrepreneur and as a person.

 

ecorner – With video presentations from the likes of Google’s Larry Page and Facebook’s Mark Zuckerberg this site is teeming with insightful business advice from today’s top entrepreneurs. The site describes itself as a free online archive of entrepreneurship resources for teaching and learning. Topics include Creativity & Innovation, Opportunity Recognition, Social Entrepreneurship, Career & Life Balance and many others. On this site you will be instructed by some of the greatest minds in business today. This is a definite must-check-out.

 

TerryDean.org – Entrepreneur Terry Dean has created a resource rich blog designed for entrepreneurs who are overworked, overstressed, and not earning the kind of income they want in their business. Is that you? Terry’s blog shares straightforward advice for internet entrepreneurs. I like his writing because it is clear and full of uncommon sense that will help you be more successful and less stressed. See for yourself.

 

The Entrepreneurs-Journey.com - This site provides advice for Bloggers and Internet Marketers.  The site’s owner, Yaro Starak, provides down-to-earth advice and hales from the land down-under. Yaro’s content is focused on helping online entrepreneurs become and remain successful. Check it out.

 

Knowledge@Wharton – Entrepreneurship is all about innovation and no one does innovation like the Wharton School of Business (Ok, I am a little biased as that is my alma mater). This is a great site because it gives a big picture view of entrepreneurship and innovation. This site gets you thinking and gets you thinking big.

 

 

Business-opportunities.biz - Dane Carlson is dedicated to delivering a legitimate list of business opportunities for entrepreneurs. His blog focuses on saving budding entrepreneurs time and money by steering them away from all the junk on the web. His blog lists both offline and online business opportunities. If you are looking for legitimate business opportunities check site out first.

 

 

Do you have other great sites for new entrepreneurs? Please let me know. I would love to list them. Thanks.

 

As an entrepreneur, I have always been inspired and informed by quotes from entrepreneurs past and present. I share these with you in the hope that you will be inspired and informed. Enjoy.

 

Think Right

 

1.”Capital isn’t scarce; vision is.” -Sam Walton

2. “If you think you can do a thing or think you can’t do a thing, you’re right.” -Henry Ford

3.”Singleness of purpose is one of the chief essentials for success in life, no matter what may be one’s aim.” -John D. Rockefeller

4. “What separates the winners from the losers is how a person reacts to each new twist of fate.” -Donald Trump

5. “If you think you are too small to have an impact, try going to bed with a mosquito” -Anita Roddick

6. “God didn’t have time to make a nobody, only a somebody. I believe that each of us has God-given talents within us waiting to be brought to fruition.” -Mary Kay Ash

Believe in Yourself and in Opportunity

7. “There are always opportunities through which businessmen can profit handsomely if they will only recognize and seize them.” -J. Paul Getty

8. “Business opportunities are like buses, there’s always another one coming.”
- Richard Branson, founder of Virgin Enterprises

 

9. “I had to make my own living and my own opportunity! But I made it! Don’t sit down and wait for the opportunities to come. Get up and make them!”

- Madam C.J. Walker, creator of a popular line of African-American hair care products and America’s first black female millionaire

Move Forward

10. “Obstacles are those frightful things you see when you take your eyes off your goal.” -Henry Ford

11. “Don’t be afraid to give up the good to go for the great.” -John D. Rockefeller

 

Have the Right Attitude about Money

 

12. “What material success does is provide you with the ability to concentrate on other things that really matter. And that is being able to make a difference, not only in your own life, but in other people’s lives.” -Oprah Winfrey

 

13. “Sometimes your best investments are the ones you don’t make.” -Donald Trump

14. “Money is like manure. You have to spread it around or it smells.” -J. Paul Getty

Leader Others

15. “As I grow older, I pay less attention to what men say. I just watch what they do.” -Andrew Carnegie

16. “No man will make a great leader who wants to do it all himself or get all the credit for doing it.” -Andrew Carnegie

17. “You only have to do a very few things right in your life so long as you don’t do too many things wrong.” Warren Buffet

I hope these quotes inspired you. I invite you to share your favorite quotes for entrepreneurs. Thanks.

 

photo credit: laurenatclemson

Have you ever thought of starting an online business?  With the economy being the way it is, now is a great time to add another source of income to your household. Here are 10 simple tips to get you moving in the right direction.

Tip 1: Find at least 3 topics or items that you are passionate about and write them down.

I suggest doing this because this gives you a good reference point. You may change you mind later or modify your ideas but you need a starting point. Write these ideas down now.

Tip 2: Buy at least one book on online business marketing.

When I was starting out I purchased, Online Marketing Success Stories: Insider Secrets, from the Experts Who Are Making Millions on the Internet Today . I recommend this book because it gives you a good overview of the many ways of setting up an online business and it shows you some of the major players. Knowing the legitimate major players will help you weed out the frauds and the scams. This is extremely important in the online world because there are a lot of scammers out there.

Tip 3: Find a guru who is doing business online who communicates in a way that makes sense to you.

Be cautious with this because as I mentioned above, there are a lot of frauds and schemes out there. What I suggest is to find someone that is mentioned in one or two of the books you have picked up.  Also, look for written money back guarantees and low entry costs. Please do not spend a lot of money at this stage.  Buy only one of your guru’s products if they offer more than one. You want to see if this product makes sense before you spend a lot of money purchasing all of their wares.

Since I was interested in affiliate marketing I chose Roslind Garner’s ebook on Super Affiliates Click Here!. I found this to be an invaluable resource and guide to getting my online business set-up. It is over 200 pages and it walks you step by step through the process of setting up an online affiliate business on the cheap. I highly recommend it for those interested in the affiliate marketing online business model.

Another service I like is Ken Evoy’s Site Build it because it walks you through the whole process of setting up an ebusiness and gives you all of the tools to do it for one price. For someone who is new to online business, this is an excellent solution because they hold your hand through the process. I bought this
package and was very impressed with the help I received and the enthusiastic and helpful community that surrounds it. You owe it to yourself to check it out and make your own decision http://proof.sitesell.com/Success20091.html .

Tip 4: Don’t try to do this all in one day or even one week.

Take time to learn what you need to do and how to be successful. This is a business. If you are new to online marketing and new to entrepreneurship then there will be a learning curve. Be patient. Learn what it takes to be successful for the long term. This is not about getting quick money; it is about building another long-term revenue stream.

Tip 5: Using the information you have gathered write down your goals and your plans to move forward. 

Yes, I suggest that you develop some goals and write them down. You should have enough information from you chosen guru to put together some goals and plans for moving forward as well. One suggestion I would make here is to carefully consider costs.  It is very easy to spend a lot of money for tools that are supposed to help you build revenue. Instead, look for free resources. I suggest starting small so you can learn and then ramping up as you gain more knowledge and experience.

Tip 6: Get going.

Don’t procrastinate. Move forward. You can do it!

Tip 7: Apply the 80/20 rule to everything you are doing.

In other words, look for the key drivers. The 80/20 rule says that 20% of your efforts will give you 80% of your results.  You need to find the 20% and spend most of your time working on these priorities.

Tip 8: Be persistent but be realistic and flexible.

You will need to give this some time to work but it may mean you need to change certain things. Be open to change. Join online communities and see what others are saying and see where the online world is heading. Also, purchase other books about your chosen area of specialization. Life rewards life-long learners.

 Tip 9: Do not get involved with too many gurus.

One or two should be enough.  There are many formulas to be successful online. If you subscribe to the views of too many gurus you will end up confused and frustrated as you try different strategies. Pick a reputable guru whose strategy makes sense to you and stick with them until you really understand what you are doing.

Also, here is a very important point. Read the fine print on all the programs that you sign-up for. Just because your guru is reputable doesn’t mean that you shouldn’t check everything out. Read those terms and conditions statements. Know what you are getting into.

Tip 10: Share your knowledge.

Make sure you help someone else build his or her business in some way. When you help others you ultimately end up helping yourself as well.

Go ahead my friend. Get started today. Believe in yourself. You can do it!