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Are You Prepared to Go Into Business?

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www.SteveBrowneDirect.comI know many would-be business owners are caught up in the dream of solo business.

They envision themselves as enjoying lots of money as the fruit of their efforts and total control of how they spend their day.

They see themselves as finally being the “boss” of their own lives.

They fantasize about working when they want, doing what they want, and being accountable to no one but themselves.

They sometimes are so desperate to begin their new life they don’t properly prepare for what is ahead of them.  Sometimes they quit a secure full time job in order to follow their dream.

They don’t think about the extent of the commitment it is to leave a paying job and begin a new business venture that is untested and untried.

Now, I will be the last person on earth to try to talk someone out of going into solo business.

I believe in this business model. I know it can be a great step forward for entrepreneurs that are stuck in their day jobs and can think about nothing but getting out of their present situation.

I want every one of you reading this to become successful as a new business owner and I will help you all I can to make the leap.

But you must understand the reality of what you’re trying to accomplish. Here are some of the results of tracking new businesses in the U.S.

There are 18.6 million small businesses in the United States according to the IRS. The U.S. Small Business Administration reports that small businesses (including the self-employed) account for 58 percent of the U.S. workforce and 40 percent of the gross national product.

A National Science Foundation analysis reveals that small business has been a more prolific source of innovation per research and development dollar spent than large business.

A substantial number of today’s small business operators are women. They own 3.74 million small businesses and generate more than $65 billion annually in gross receipts. Between 1977 and 1983, women-owned businesses increased at twice the rate of businesses owned by men.

Starting a small business is risky business, and the odds of succeeding are not in your favor. According to the U.S. Small Business Administration, the majority of small businesses fail in their first year and 96 out of 100 fail within their first five years. That’s 4 businesses out of every 100 starts that make it to five years!

These figures aren’t to scare you; just to prepare you for the sometimes rocky path ahead. Underestimating the difficulty of business is one of the biggest obstacles entrepreneurs face.

Success is never automatic. It isn’t based on luck, although a little luck can be very timely. What it does depend on is how you play the game; in other words, how you prepare, execute, and follow through with your business plan and strategy. An even then, even if you have everything going for you, there are no guarantees.

Markets are dynamic and changing all the time. Unforeseen challenges and problems are bound to arise when you least are in a position to deal with them. Health issues, family matters, physical moves from one location to another, and many other “major” issues will often be thrown into the mix.

My advice to you is simple:

1. Prepare the best you can but understand that you can never anticipate everything you need to know or do. Don’t get stuck in the preparation phase. About 3 months maximum should be enough time to take care of all the preliminaries for the solo operator.

2. Execute your business paying attention to the small details on a daily basis. If you let things slide, they will come back to knock you over.

3. Leverage yourself and your time as much as possible. You do this, not by taking on employees, but by implementing systems into your business that automate recurring tasks.

4. Be quick, agile, and adaptable. Niches change regularly; markets change regularly; and customer preferences change as well. Anticipate change, embrace it, and move forward on the cutting edge of your market.

5. Regardless of your products or services, always give your customers the highest quality you can provide.

6. Go out of your way to develop solid relationships with your prospects and customers.

7. Strive to become the authority in your niche. Position yourself (and your business) as the only logical buying choice for your customers.

8. Be persistent in everything. Don’t give up when it seems that nothing is working.

9. Enjoy your business and extend that passion to everything you do. Your customers will recognize your enthusiasm and gravitate toward you so they can share in your delight.

10. Keep balance in your life and perspective in your family relationships. Business isn’t your highest priority. God, your spouse, your family, others, your health and a few other things should always come first.

Just of few of my own thoughts . . . you may have a differing opinion, of course.

To your online business success,

Steve Browne

www.SteveBrowneDirect.com

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Mentor or Coach? Which Do You Need?

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www.SteveBrowneDirect.comI can tell you how to get any successful business owner to mentor you!

It’s very simple . . . don’t ask him to be your mentor or coach. If you do, he will nearly always turn you down.

Let me explain by first clearing the air a little about online mentors and business coaches.

To me, at least, mentors and coaches are not the same thing. I realize, however, that the two terms are confused and used interchangeably online all the time.

I believe a mentor is a friend, a teacher, a supporter, and an advisor.

I believe a coach is a something different. To me, a coach is a private tutor or trainer, someone who is typically retained under contract to give one-on-one direction and specialized training fit to the needs of the client in order to get that client to a higher level of output or performance. A coach is also a motivator and a cheerleader that sees the client/coach progress as a team effort.

Certainly, I acknowledge that there is some cross-over in the roles and functions of mentors and coaches.

Why does all this matter? Let me explain my thinking here.

If you want to hire someone to help you individually in your business, IMO, you should go out into the marketplace specifically looking for a successful business owner that does paid coaching.

If you ask most successful business owners to be your mentor they will almost always turn you down. They will worry that if they become an “official” mentor:

  • it will become a major time drain for them – time away from their own business
  • they may not be able to provide you with what you really need
  • they will let you down when they can’t constantly hold your hand
  • you are just one more “iron in the fire” that complicates their business day
  • named association with you may not be in their best interest
  • they may not appreciate your valued time by being themselves lazy, unteachable, or unwilling to follow the advise that you are genuinely giving – in essence, they are a waste of your time.

Can you hire or pay a mentor to do that? IMO, you are confusing terms again and what you really want is a paid coach. When compensation, or contracts, or specific time commitments, or performance measures are involved, we’re in the realm of coaching.

So if you want a mentor (a teacher or advisor), here is what I suggest:

  1. Befriend a wise and successful business owner but don’t abuse your relationship by expecting handholding, specific time commitments, or special “preferred” status of any kind
  2. Be willing to observe how your mentor does his business without personally taking up his time. Watch and learn how he runs his business, dissect his selling system, his lead generating activities, his funnels, his web site, his email list, his newsletter, his follow-up. If you can, buy his product(s) and become his subscriber and see what he does for you, his customer.
  3. Offer to help him in any way you can with no reciprocation needed (or expected) on his part
  4. Cultivate your relationship in various professional ways without being a stalker, a groupy, or like a clinging child under foot. Offer to give him time in your specialty, take him to lunch occasionally (if you are nearby), give him credit for your successes, support his business.
  5. Very important: don’t abuse your relationship or “expect” anything beyond friendship.

I have often heard people describe how much their wonderful mentors have helped them, but if you were to ask that mentor what they had done, they may looked puzzled . . . as though they hadn’t really done anything special for that person except to be a friend.

If you ask me to be your coach or mentor . . . I will say “No thanks – nothing personal , but I turn down all such requests.” But I am happy to talk to friends about business, my own experiences, and what I believe or have learned about best practices, tools, and approaches in IM. I even try to help strangers when I can (ever read any of my blog or forum posts?).

Is this post making sense?  I hope so.  Contrasting views are always welcome.

To your online business success,

Steve Browne

www.SteveBrowneDirect.com

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Advertising

Direct Sales Marketing

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www.SteveBrowneDirect.comDirect sales advertising and the Internet”

The other day I spent some time at the bookstore, the giant bookseller franchise that I often frequent when I’m searching for some Internet selling tips and advice that I can’t find in the books on my own bookshelf.

Large retail book stores are cool places, much like a mini library where the atmosphere is pretty laid back and browsers are free to pull a book from the shelf and sit down to read a chapter or two.

I must admit that their intentions are obviously to sell books rather than play the role of a library for the cheapskates (like myself) who usually purchase books online at Amazon. But still, they don’t seem to mind too much if I’m there and sometimes walk out empty-handed.

Anyway, I was in this local book store checking out the latest books on marketing and advertising on the Internet. I was a little surprised at what I found.

Most of the books seemed to be focused on the cool advertising campaigns of Madison Avenue, those that had probably won some award for creativity, style, or unusualness.

Book after book contained mostly examples of graphic designer’s work and the reasons why that particular ad had been singled out for mention or praise. It almost appeared to me that “winning” advertising was all about cleverness, coolness, and being nominated for some obscure little designer award.

My personal reaction to all this glitz and glamour was simply, “I wonder if any of these fancy ads actually made any money for the sponsor?”

Yes, I realize there are multiple reasons to advertise: building brand, creating buzz, developing product credibility, and other things all are important outcomes hoped for in an ad campaign.

But on the Internet, in direct sales advertising like many small online businesses do, it’s my opinion that glitz and glamour usually distract a prospect more than they convince him to buy.

Which brings me to the question: “What is your ad attempting to do?” Do you know what you hope to gain from launching an ad online? Are you designing and writing the ad to win some creativity award or are you just trying to make as much money as you can?

If your answer is the latter, I believe you need to keep the ad straightforward, simple, and without the confusion of numerous graphics, flashing banners, twirly things, and cutesy sayings.

You’re not trying to impress an art director or entertain a crowd of customers with your HTML and JAVA skills. Your narrative is not written to appeal only to techno-geeks, industry insiders, and the few people that can speak the jargon of the technical experts.

Direct sales marketing is all about grabbing attention, pulling the reader into the story with emotional involvement, ushering him down a narrowing path and ending with his credit card action on your behalf.

Ad copy and carefully chosen words accomplish this task much better than distracting and annoying graphics.

Remember that selling direct to the customer is best accomplished with simplicity of purpose, focus on benefits, engaging dialogue, and a call to action right then and there.

To your online business success,

Steve Browne

www.SteveBrowneDirect

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Learning Entrepreneurship

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www.SteveBrowneDirect.comHow do high school and college students learn to become entrepreneurs?

Does the current public school system do an adequate job of training young people to become business owners?

Years ago I made a new friend in Chris Elliott who found my blog and decided to subscribe.  Chris was a high school senior about to make a choice between colleges and was interested in entering the business world after school was completed.

Chris reminded me that there was a legion of potential small business candidates among us – the future business leaders that will blossom in the coming generation. Most of the attention I pay to solo business owners goes to those who have a wealth of knowledge and experience under the belt.  Chris was eager to learn, bright, and anxious to dive into operating his own business someday … hopefully, sooner than later.

Really and practically, there is no logical reason why young online business owners can’t follow their dreams, and even thrive in today’s online business environment. In fact, it will become harder and harder to distinguish the age of the business owner as time goes on because the demographics of the work force are changing significantly.

There was a time not long ago that conventional wisdom taught us all to land a good job with a solid company, build up tenure and longevity, move vertically through the ranks with a progression of promotions, accumulate personal wealth through saving and investing in a 401K, and retire at 65 with a pension and a nice little savings nest egg to spend in the golden years.

Oh, how times are changing!  The old way of working for one company all one’s life is probably gone forever for almost everyone!

Solid companies are going bankrupt, being folded into mega multi-nationals, and experiencing downsizes in employment and reductions in employee retirement packages, even for the company elite.  Pensions are rapidly disappearing as are golden parachutes for long-time tenured employees and management.

Entire industries and marketplaces come and go at a blistering pace in today’s economy. The ride is dizzying and the stakes are high for anyone that steps off the curb into the business fast lane.

It’s amazing to me that the curriculum in most high schools, and even in colleges (to a lesser extent), barely includes education and training in small business development. With the number of new small businesses popping up all over the globe now and in the near future, it seems to me that our educational system is letting our young people down in many ways.

Small business development education is typically a hands-on, learn as you go, on-the-job training type of learning. But there is a set of basic business principles and skills that could very effectively be taught to young people, regardless of the business subject, that would help them avoid common pitfalls and learn the “correct” or accepted methods of business operation.

Young people like my friend Chris are hungry for helpful information. They recognize that their life’s path probably won’t be set or controlled by a large corporation. They want help, guidance, and information now that will allow them to chart their own course and succeed and profit from their own ideas and hard work.

I am continually amazed at the strength, creativity and resourcefulness of today’s young people. As I look at them, and compare what I see to my own carefree (more like careless) attitude when I was in high school, I have every hope and reason to believe that the world will be a much better and kinder place with the coming generation at the helm.

Before it’s too late, and as we prepare to hand the business ball off, it’s my hope that successful entrepreneurs with a wealth of personal knowledge and experience will step forward and offer their insights and wisdom to next wave of entrepreneurs standing in the wings soon to be taking center stage.

Ask yourself the question:  What can I do to help a young person get ahead in life and business?  Can I be a mentor or coach to my own children/grandchildren in finding their own unique career path as they exit the public school system?  Going to college may not be the very best option anymore (as it used to be) for graduating seniors.

I would be interested in your take on this subject.

To your online business success,

Steve Browne

www.SteveBrowneDirect.com

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