“A person of intellect without energy added to it, is a failure.”

~Sebastien-Roch Nicolas De Chamfort

Commentary: Lots of people have great business ideas and/or are extremely intelligent. This is great – but if you do not apply your intelligence, take action on your ideas, then it is simply an intellectual exercise.

Entrepreneur.com has an Article Posted detailing one young entrepreneur’s journey from the financial sector to starting his own sports marketing firm:

I feel it’s essential that you are able to marry your work and what you love. This passion will ignite the minds of your potential clients and connections. Your business has to be a reflection of what you are already willing to pour countless hours into. Your passion and enthusiasm for your business has to connect to your why, be a part of your own experience, and is ultimately what will make you successful.

The article also includes summaries of the creation of Facebook and YouTube and encouraging words for those with an entrepreneurial spirit who haven’t yet made the jump to starting their own venture.

The concept of starting your own business can be intimidating but it’s not as difficult as many people think. Once you have come up with a Business Idea and drawn up a Business Plan you’re ready to Start Your Company! MyNewCompany.com also has a Resource Center with tons of useful information!

Dr. Cornwall has a great video, about 8 minutes long, from Amazon.com CEO Jeff Bezos. Definitely worth watching as he sums up the  things he’s learned from starting and running Amazon:

1. Obsess Over Customers (not competitors)
2. Invent (figure out solutions)
3. Think Long Term
4. It’s always Day 1 (theirs always new ways for invention and solutions)

Forbes has an article posted on How to Bounce Back From Failure:

Anyone who claims to have built something of lasting value–be it a business, personal relationship or a body of critical knowledge–without suffering serious pain and disappointment is either a liar or dangerously naïve. At some point on your journey, you will stumble and fall.

As the article mentions only 45% of startups make it to their 4th anniversary. In today’s troubled economic climate the challenges faced by new businesses are even greater. What separates successful entrepreneurs from the crowd is not a lack of failures, but the resiliency to pick themselves up and try again when things don’t go as planned.

Of course, when starting a new venture it is always worthwhile to do everything you can to increase your odds of success. Two great ways to do this are by adopting a properly written Business Plan and Automating Your Business. Franchises have a much, much higher success rate than general business startups, so Automating your Business to make it run like a franchise will give you an advantage over other companies that have not taken this crucial step.

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Bizzia has a short Post by Stephen Kersey on “Staying Excited About Your Startup Company”:

In the early days of a startup company, the founders can rely on excitement and adrenaline to get the ball rolling. However, when the well of excitement and adrenaline goes dry, that ball suddenly feels extremely heavy. How do you go about staying excited about your startup?

This post discusses how having a plan can help maintain excitement and keep you engaged with your business. At MyNewCompany.com we always recommend that you develop a business plan before moving into the startup process. We have a Page on Business Plans that assists with this process. A properly written business plan will force you to check your assumptions and will help you begin the process of Automating Your Business so that you can focus on developing your business instead of getting bogged down in day-to-day routines. It’s always easier to stay excited when you can see the big picture!

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Practical eCommerce has an Article Posted that presents a good overview of the growing trends in mobile commerce:

In the evolution of modern shopping, consumers have very recently progressed from visiting a physical store every time they wanted to buy something to shopping online via a desktop or laptop computer, at least some of the time. The next evolutionary step will presumably have shoppers making more purchases online from mobile devices.

Of course, to take advantage of these new opportunites you will need to Start a Company and will need to Build a Website. MyNewCompany.com is your one-stop resource for getting your company set up properly so that it is ready to start making money for you!

Small Business Trends has an Article by Tim Berry on the lessons learned after 22 years of bootstrapping:

Last week a group of students interviewed me, as part of a class project, looking for secrets and keys to success. They were asking me because after 22 years of bootstrapping, my wife Vange and I own a business that has 45 employees now, multimillion dollar sales, market leadership in its segment, no outside investors, and no debt. And a second generation is running it now.

Bootstrapping (self-funding your startup) is just one method of Finding the Money to start your new venture. Of course, it always helpful to have a good Business Plan before looking for funding.

Small Business Trends has an Article posted about the increased use of independent contractors:

The Contractor Index for March 2009 shows that an increasing percentage of staffing help are independent contractors — nearly 4 out of 100 workers are brought on as independent contractors

It is frequently easier to get work as an Independent Contractor if you have a Corporation or LLC in place (most companies are unwilling to hire Sole Proprietors as independent contractors). Using MyNewCompany.com’s Formation Services can take the hassle out of setting up an LLC or Corporation in any state!

Many people like to think of new ideas, alternatives and features. These ideas can apply to business, government or life in general. The main problem is that probably dozens if not hundreds of people have probably had the same idea or something close to it.

The difference is execution.

37Signals has a great article title “I had that idea years ago!” that details this process and the dangers of ideas without execution.

Yes, you might be great at brainstorming and solving problems, however, if you cannot implement and execute upon your idea then it is almost useless. I’m convinced that there are hundreds of thousands of people with ideas that could solve our energy problems, our government issues, our business and economic issues and more. However, if they don’t attempt to implement these ideas or at the least pass the idea onto someone who can, then these solutions will die with them.

So what do I do if I have great ideas?

I believe the following steps would be helpful:

• Openly discuss the idea with friends and family – the potential of them stealing and implementing it are very small. They may able to point out holes in your idea or additional features.
• If you have a great idea and the necessary skills and funding, implement it yourself or with your team. If it’s a great idea and you can implement it, soon will come competitors and eventually the idea will become reality.
• If you have great ideas but not the resources to implement it, focus on starting your own business based on fulfilling a real need. Your natural brainstorming skills will apply well to any business and will probably make your business successful. Once your business is successful, then you might have the resources to implement your great ideas or the business connections to have them implemented.
• Become a consultant. Brainstormers are great at solving problems in business, government and personal life. Become a  business or government consultant and help others implement great ideas. Eventually work yourself up to working with companies or government officials that can actually implement your great ideas.
• Get a job at a company working in the same discipline as your area and try to get it implemented that way.

If you have no intention or interest in doing any of the above, then you’ll want to focus on passing your ideas onto others who can implement them:

• You can patent your idea and sell it to others – some people make a very good living (millions) by doing this.
• Start a website or blog based on your idea and attempt to get either financial or moral support to implement the idea.
• Search for and submit your business ideas to business-idea exchanges like SubmitBusinessIdeas or WhyNot.
• If you have no financial need to get paid for your ideas or you don’t want the idea to die with you, then simply give them to the appropriate people. Send them to decision-makers in business or government – this can be your gift to making our world a better more prosperous place!

Whatever you decide to do, don’t think that having ideas are bad. Ideas are why humans are no longer living in caves! Just remember that execution is important and that getting your ideas implemented without direct financial compensation can be rewarding as well.

Mark Cuban, billionaire owner of the Mavericks and serial entrepreneur has written a fascinating blog entry on the best way to cure America’s (and indeed the world’s) economic problems.

He shows why the debate about tax cuts and capital gains is unproductive:

You can cut taxes for 95pct of Americans and raise taxes for the rest. You can cut taxes for businesses and retain the Bush Tax Cuts. You can increase or decrease the capital gains tax 5 or 10pct either way.  Under both programs the deficit for the country will increase,  we will borrow and print more money.  5 or 10pct variance either way, given the big hole our economy is in wont matter.

and:

We are in an economic mess right now. It doesn’t matter who caused it. It’s here. It doesn’t matter what our Presidential candidates and their economic advisors come up with. Its meaningless. 

His solution is what has always been the driving force behind the American economy:

The cure for what ails is us the Entrepreneurial Spirit of this country.  We are a nation of people who encourage , support and invest in those of any and all age, race and gender who will use their ingenuity and come up with a new idea.

Its always the new idea that re energizes this country.  Industry, manufacturing, transportation, technology, digital communications, etc, each changed how we lived and ignited our economy and standard of living. Tax policy has never done that.  The American People have.

So what is the specific solution? :

What we need is our candidates to stop yelling at each other and starting looking at the American people and encouraging the best of who we are.  That is who I want to get behind. That is what I would like to see for our country. That is what will energize and motivate people to create companies and invent products that will  turn the economy.

The best time for little guys to start a business is when the big guys are worrying about surviving in theirs. You dont need to raise money. You need to be smart and be focused.  I had no idea until this current financial crisis that when I started MicroSolutions, my first company, it was in the middle of a very bad recession. I had no idea whatsoever. I didnt know what the tax rates were, and I didnt care. I had an idea, a floor to sleep on and a lot of motivation.

Now is the time for Entrepreneurs to step up and do our part for our country. Its up to us to start businesses and create jobs. That is the cure to this country’s economic problems.

So there you go, starting a business or managing and growing your existing business will get us out of this economic mess and back on the road to prosperity.

I also recommend his other article: The Best Equity is Sweat Equity, especially for those concerned about raising startup capital in this tight credit market.

As usual, Seth Godin gets it right with a fantastic article about doing things instead of whining about them.

Here’s some of the best excerpts:

Here’s a question that you should clip out and tape to your bathroom mirror. It might save you some angst 15 years from now. The question is, What did you do back when interest rates were at their lowest in 50 years, crime was close to zero, great employees were looking for good jobs, computers made product development and marketing easier than ever, and there was almost no competition for good news about great ideas?

Here’s what some people did while others whined:

• “While your company has been waiting for the economy to rebound, Reebok has launched Travel Trainers, a very cool-looking lightweight sneaker for travelers. They are selling out in Japan — from vending machines in airports!”
• “While Detroit’s car companies have been whining about gas prices and bad publicity for SUVs (SUVs are among their most profitable products), Honda has been busy building cars that look like SUVs but get twice the gas mileage. The Honda Pilot was so popular, it had a waiting list.”
• “While you’ve been wishing for the inspiration to start something great, thousands of entrepreneurs have used the prevailing sense of uncertainty to start truly remarkable companies.”

He concludes with this great line:

So stop thinking about how crazy the times are, and start thinking about what the crazy times demand. There has never been a worse time for business as usual. Business as usual is sure to fail, sure to disappoint, sure to numb our dreams. That’s why there has never been a better time for the new. Your competitors are too afraid to spend money on new productivity tools. Your bankers have no idea where they can safely invest…

You get to make a choice. You can remake that choice every day, in fact. It’s never too late to choose optimism, to choose action, to choose excellence. The best thing is that it only takes a moment — just one second — to decide.

Forbes.com has examined the most profitable and least profitable businesses to start and the results are pretty fascinating:

Most Profitable Businesses to Start:

1. Accounting Services
2. Legal Services
3. Dental Services
4. Specialized Design Services
5. “Other” Health Practitioners (chiropractors, physical therapy, rehab, etc.)
6. Outpatient Care Centers (spas, family planning, kidney dialysis, etc.)
7. Insurance Brokers
8. Physicians’ Offices
9. Medical and Diagnostic Labs
10. Depository Credit Intermediation (small banks, credit unions,

Commentary:

No big surprises here, fully 50% are medical related and another 40% are legal, financial or accounting related. I believe this shows that professional training pays off due to the high barriers to entry for these professions – not anyone can setup a medical, legal or financial related business, it takes some training, certification and skill. The one surprise was “Specialized Design Services” but that job still takes quite a bit of training before starting.

The lesson being that previous training is necessary to get into the most profitable businesses and being defensible either via education or skill is an important aspect to consider when starting your business.

The Least Profitable Businesses to Start:

1. Community Care Facilities
2. “Other” Support Services (tradeshow organizing, wrapping gifts, etc.)
3. Beverage Manufacturing
4. Real Estate Related Services (appraisers, property managers, etc.)
5. Bakeries and Tortilla Manufacturing
6. Amusement and Recreation Services
7. Motor Vehicle Parts Manufacturing
8. Specialty Retailers
9. Beer, Wine & Liquor Retailers
10. Travelers’ Accommodations

Commentary:

While I believe Forbes.com’s numbers are accurate, take note of the fact that this list is not destiny. For example, there are many examples of hugely successful businesses under the “Least Profitable” list: Coca-Cola for #3, Rainbow Bread for #5, Disney for #6, Hilton for #10 (with lots of smaller local businesses in the other categories).

Just because most people in your sector are not profitable doesn’t mean you have to be! This list is more of a guide showing that a) professionals with advanced education or degrees are the most profitable and b) businesses with lots of competitors and low barriers to entry are the least profitable.

Lesson: Follow your passion in business, learn proper management skills and success can be yours regardless of the industry.

 

“Eliminate the time between the idea and the act and your dreams become your realities.” – Dr. Edward Kramer

Commentary: As we harp about constantly on this blog, business ideas are only worthwhile if executed properly or executed at all. Part of executing the idea is getting beyond the idea phase and getting down to work. Take your ideas and execute on them. If they don’t work, then learn from the experience, move on, don’t beat yourself up and try another one. Eventually this process will pay off dramatically.

As Mark Cuban has said “you only have to be successful in business once”. If you start one successful business, you could be set for life. Yet, most people don’t take the plunge and make the attempt or if they do, they quit after only one attempt.

“It’s not that I’m so smart, it’s just that I stay with problems longer.” – Albert Einstein

Commentary: There is something to be said about sustained thinking and obsessing over a problem. Einstein spent years thinking about some of his theories and problems. Others usually give up after their problems seem insurmountable.

I don’t think years are required to solve most problems, you just have to do the thinking and stick with it until the solution presents itself.

Here’s a bonus quote along the same lines:

“No problem can stand the assault of sustained thinking” – Voltaire

A reader asked Seth Godin why he so freely gives away business ideas, Seth responded:

“…ideas are easy, doing stuff is hard. History is littered with inventors who had “great” ideas but kept them quiet and then poorly executed them. And history is lit up with do-ers who took ideas that were floating around in the ether and actually made something happen. In fact, just about every successful venture is based on an unoriginal idea, beautifully executed.”

So, as I’ve written again and again, the business idea is important, but executing on a good business idea is where the real value resides.