Great post by BusinessPundit on what he’s learned about the key to entrepreneurship:

The first blow came when I realized that ideas are mostly worthless. Somebody else has thought of your invention, they just haven’t built it. If no one had thought of your idea, then it is probably beyond current technology to build anyway. That is why you don’t see business plans for time machines.

When that was stripped away, I realized it was all about being first to market. Right?

The second blow came when I realized that too was wrong. Google wasn’t first to market. Neither was Microsoft. Few companies successful over the long term were first to market. First to market means you get to learn from your own mistakes… and so does your competition. But it costs you more than it does them. So I put that aside and started to think it was about the execution.

I was getting warmer now, and at least I hit on something that really makes a difference, but the third blow came when I realized execution wasn’t enough. Peter Drucker wrote that “nothing is worse than doing something very efficiently that shouldn’t be done at all.” He’s right. I could execute the hell out of a dumb business plan and I might have enough for a bus ride at the end of it, if I borrowed $0.50 from you.

He comes to the conclusion:

Good ideas for startups basically come from recognizing an opportunity that could perhaps be described as “productivity and/or value arbitrage.” You see a chance to do something better in a way that encourages people to pay for it. You see a way to let people trade time for money, simplicity for money, productivity for money, or some other combination.

If you want to start a company, study the economics of various industries. Look at how you create value for customers. Not assumed value. Not vapor-value that you think exists until you try to move from free to fee and realize no one will pay your fee.

If you want to start a business, please read the whole thing.

From a report at the Kauffman Foundation:

Our economy is generating: 

- 5,568,000 new businesses a year
- 107,077 new businesses every week
- 15,297 new businesses every day
- 637 new businesses every hour
- 11 new businesses every minute

Dr. Cornwall: “Any question that the US is now in an entrepreneurial economy?” 

Ideoblog: “The latest report shows that filings for LLCs are up in 2005 from the prior year in almost every state, while they are down for corporations in most states.”

More on this topic here.

Our offices will be closed on Monday, May 29th, 2006 for Memorial Day!  We will open at 9am (Pacific) on Tuesday, May 30th.  While we are closed, we will be accepting orders, e-mails and voicemails which will all be promtly answered/replied to on Tuesday.

Top 10 reasons to become an entrepreneur from Everyday Entrepreneurs.

Money Magazine offers their 5 startup mistakes:

1. Too little cash.
2. Thinking small.
3. Skimping on tech.
4. Underestimating the importance of sales.
5. Losing focus.

Read the whole article here.

(via Six Disciplines)

From the upcoming book The Entrepreneur Next Door:

Personality matters in becoming a successful entrepreneur. Recent studies show that successful entrepreneurs share a number of common personality traits that are the predominant indicators of success, outweighing education, family ties, skill, and experience.

The site offers an Entrepreneurial IQ test (you can skip the survey and just hit submit to start the test).

(Via Start Up Guide)

Looking for a franchise to start based on your experience or interests as a Mom or Dad?

From SmallBizMentor:

These companies offer services or products that appeal to parents due to a focus on children (their safety, fun or education, for instance) or parents (women’s health and wellness, streamlining the family’s lifestyle).

1. Kidzart (Fine arts education for kids)
2. Pump It Up (Children’s parties)
3. Liberty Fitness for Women (Women’s fitness program)
4. Abrakadoodle (Another art program for kids)
5. Mathnasium (Children’s learning centers)
6. Educational Outfitters (Children’s school uniforms)
7. CHIP (Child ID program)
8. Gymboree Play & Music (Parent/tot programs)
9. Supper Thyme (Pre-made meals)
10. Best Personalized Books (Personalized children’s stories)
11. Massage Envy (Massage therapy)
12. Kumon (Children’s learning centers)
13. Oxford Learning (Children’s learning centers)
14. The Tan Company (Tanning salons)

(Via BizOpportunities)

Office Depot has a small business security quiz which can highlight any security vulnerabilities in your small business.

This week’s Carnival of the Capitalists is up!