“Don’t worry, be crappy. Revolutionary means you ship and then test… Lots of things made the first Mac in 1984 a piece of crap - but it was a revolutionary piece of crap.” ~ Guy Kawasaki  

Commentary:

I think it is a myth that a new product that will solve problems or fill a need (especially a technology product) must be perfect before you launch it. Modern experience is showing that may not be true - lots of great products were buggy at first, incomplete when first launced: MySpace.com, Google, Xbox 360, etc. The key is to launch but then improve based on user-feedback.

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.

“People who don’t take risks generally make about two big mistakes a year. People who do take risks generally make about two big mistakes a year.” - Peter F. Drucker

Commentary: Taking risks is part of business. If you’re not taking risks than you probably aren’t accomplishing much. This quote from the Legendary Peter F. Drucker shows that the big mistakes are going to happen anyway, so you might as well be taking calculated risks to move your business (or your life) to the next level.

“The successful person has the habit of doing the things failures don’t like to do. They don’t like doing them either necessarily. But their disliking is subordinated to the strength of their purpose.” - E.M. Gray

Commentary: This comment speaks to the small business owner or entrepreneur especially. Few small business owners look forward to making cold calls, doing the books, disaster planning, updating the marketing plan, etc.

In your personal life, few people like exercising, paying bills, maintaining your property, sending thank you cards, etc. - but it all has to be done.

The ones that get these mundane things done know that the reason they are doing so is to serve a higher purpose. They know the benefits of doing these things that most people don’t realize.

“Optimism is a force multiplier.” - Colin Powell

Commentary: When you have an optimistic viewpoint, you tend to filter out the negatives that would otherwise cause you not to pursue a goal in the first place. In addition, optimism lessens the sting of failure by saying “that didn’t work - let’s try something else” instead of wallowing in or overanalyzing the failure.

Not only that, but the Mayo Clinic has found that optimists live longer! I don’t think there’s better evidence than that to justify the optimistic viewpoint on life. I also recommend the book Learned Optimism by Martin Seligman which is a classic in this field of work.

“The best time to plant a tree was 20 years ago. The second best time is now.” - Chinese Proverb

Commentary: Yes, someone may have beat you to the punch for that great new product or service. But the key is getting the next new product or service out there. The market tends to favor first-movers.

Even if you are not creating something new, getting started on it today is going to almost always be better than waiting until tomorrow.

Start a company, create a new product, work on your book — now!

I was contacted by Matt Alderton of The Nielsen Small Business Resource Center for input on surviving network outages. Please read the article and let me know what you think. We have a great internal management system for preventing and handling “disasters” and I think that is reflected in the article.

The IRS has improved the procedure for electing S-Corporation status after the filing date for the S-Corporation Election Form (Form 2553) has passed.  If you can show reasonable cause for why the election is late it is now easier to obtain S-Corporation Status after the deadline.  Information on the change can be found here.

For more information on how an S-Corporation is organized and the differences between entity types see our page on choosing an entity.

“Progress isn’t made by early risers. It’s made by lazy men trying to find easier ways to do something.”  - Robert Heinlein

Commentary: This is a recurring theme in business - many lazy people have had great impact on progress because they were simply, well, lazy. They didn’t like the old way of doing things so they made it easier, faster, cheaper. This is nearly the definition of an entrepreneur.

Note there is a big difference between laziness and apathy. The latter will get you nowhere and the former will only get you somewhere if you have the will to implement your ideas.

On a similar note is the story of the lazy officer:

There are only four types of officer. First, there are the lazy, stupid ones. Leave them alone, they do no harm…Second, there are the hard- working, intelligent ones. They make excellent staff officers, ensuring that every detail is properly considered. Third, there are the hard- working, stupid ones. These people are a menace and must be fired at once. They create irrelevant work for everybody. Finally, there are the intelligent, lazy ones. They are suited for the highest office.

 - General Erich Von Manstein (1887-1973) on the German Officer Corps

“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