Last Lecture

Caveat Emptor

Latin: "Buyer beware"
Oxford Dictionary: the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.

The idea of being your own boss can elicit feelings of excitement, freedom, long hours, or even fear. While embarking on an entrepreneur journey may be in your future I would like to share a few thoughts before you proceed.

Entrepreneurship is the process of starting a business or other organization. The entrepreneur develops a business model, acquires the human and other required resources, and is fully responsible for its success or failure. Entrepreneurship operates within an entrepreneurship ecosystem. (www.freebase.com)

Find your passion!  The most successful people are successful because they find their passion. If you aren't interested don't go any further. This is key. Maybe you don't know what your passion is. There are tons of surveys online that can help you. You can also start working in different industries until you find something that creates a spark. Once the you find a spark then do your research!

Research is critical before committing too much. This will be time well spent. Your spark may sound great while in the idea stage but it is important to really know what you are getting yourself into. What are the costs associated, what is the time commitment, how do you have rallying around you.

Find your support team. Having a good support team and partners will help get you through some of the challenging times. You need to know what your strengths are so that you know what skills you are lacking and where you need to fill in gaps. Then make sure that you have a good support system. This may be filled with friends, family, investors or even your dog. These are the people you will turn to when you want to quit and in your moments of triumph. 

At this point you will have a pretty god idea if entrepreneurship is for you.  If you have doubts, try to sort them out beforehand so you don't take unnecessary financial risk. Any venture you begin will already have its own risk so don't push your luck by trying something that isn't really who you are.  Not everyone is meant to be an entrepreneur, even some with an entrepreneurial spirit may be better suited as an intrepreneur. There is no shame in working for someone else. Think about it, the big companies that started out as an entrepreneurial journey couldn't be where they are without employees and intrepreneurs.

Finally if you decide this is for you then go for it. Put your whole heart into it and don't look back. Do the best you can and make the most of the opportunity. If you should fail in your journey, make sure that you fail forward and learn everything you can from the experience. After all, if you don't learn from an experience then you just wasted an opportunity to become better than you were.

Lesson 12 - Failing Forward

I made it!!!  There were so many weeks that I wish that I had put this course off for another semester. There were many things that I didn't agree with and assignments that took a lot out of me to complete.

In the videos and readings this week they were all focused on failing forward. When I think about these stories I think about MLB players.  They spend their professional career only hitting 30% of the time. The other 70% of the time they fail to hit the ball. However, they are paid for this failure and have successful careers. Their failures show that there is always room for improvement and that they can't give up. This is essentially what Michael Jordan said in his clip.

My grandfather used to remind us that there is a lesson in every opposition and it is up to us to determine what the lesson is and what we are going to do about it.  He would often quote D&C 122:7 "...know thou, my son, that all these things shall give thee experience, and shall be for they good".

$100 Project
So glad to be done with this project. I ended the project with $125 to donate to Grameen America. I actually didn't mind doing my power point presentation even though I recorded the presentation 6 or 7 times. While I still don't intend to enter the entrepreneurship field I am more open-mined about how entrepreneurial and interpreneurial ideas can improve our leaning process and help businesses.

Buyouts and Family Business

As a child I thought it would be cool to be part of a family business. It would be a guaranteed job and easy. While the idea is great as long as someone else started it I would never do it today.

Growing up I watched my Grandfather run a home based family and marriage counselling practice. Additionally he was an LDS Institute Director at American River College in Sacramento, California. My grandmother was his secretary and my aunts dutifully helped us grand-kids remain quite during the summer while we were visiting. Fast forward a many years and my Aunt Gayle and Uncle Paul have followed a similar path. Both work for local school districts as guidance counselors and do some private practice counseling with LDS Social Services on the side. At one point my Uncle even took over some of my grandfather's clients when his health was failing him. While this could have been a 2nd generation business my aunt and uncle chose to go a different direction focusing more on school counseling with the option for private practice sometime in the future. I think this has been the best decision for all involved. While my mom's family is close I can see how passing on a business to one child and not another might have caused some strife especially as another aunt has gone through a divorce and seven additional grandchildren have been added.

As we learned in our case studies this week having an exit strategy is critical in a family business. Also, clearly defining roles that each member will fill helps to keep the business and business and the family the family.  While children may be interested in the family business it is also important for them to get "working" experience outside the business so that they can really see if they are committed to the business or if they are only committed to satisfy the need of the family. Identifying the level of commitment will help a business move from one generation to another. Another aspect to consider is how the business is divided. It is salary based or is it equity based and what are the terms for changing the equity/salary.  Understanding this is important when additional employees are added that are not family. There will be many decisions that need to be made and it won't always be family making them.

$100 Challenge
I received an additional customer order this week adding $12 to my project total. I also had three haircuts instead of two netting an additional $30 bringing my project total to $132. So glad to be done with this part of the project!  I am so not a salesperson who likes to push things (even those things I believe in) on others. I am also a salespersons worst dream as 99% of the time they cannot get be to buy up or change my initial decision. I generally come in well informed and don't need their help. I met the challenge but I know I could have done more had I had a passion for what I was doing. This has reinforced the notion that owning a business is not what I want to do in the foreseeable future and I am glad to have that confirmation.

Franchising

Have you ever wandered into an establishment and thought to yourself, I can totally run this better than they can.  I will be the first to admit that I think that constantly, especially since moving to Southern Idaho. The people here are more laid back and would prefer to do things as they have always been done. I, on the other hand, prefer a fast pace environment that is always striving to improve. This week we began learning about franchising. While I have joked many times about owning this establishment or that it isn't really something that I would actually do. I am not at a place in my life where I want to devote 80+ hours a week to making a business work. I don't want to invest a lot of capital and hope that everything works out. I think franchising is better suited for younger people with little familial responsibility or those who have worked their way up through a business and it is the next logical step.

I enjoyed reading about how Baby Legs came to be. I thought it was an inspirational story of a snowboard bum turned entrepreneur. She came up with the idea to help her baby's rash and it became an instant hit. In watching this Acton Hero you can sense that while she is pleased with her accomplishment she doesn't sound confident in her new found  career. I think she yearns for the freedom she had on the slope.

Steve Jobs is a very inspirational man. He went to the beat of his own drum and always believed that it would work out for him. He was constantly revising his latest idea to make it even better. I think this is an important thing to remember. No matter how great we think our idea is, we can always improve and make it better. This helps keep us on our toes and focused on big and small picture.

After reading the IceDelights Case study I am even more leery of entering the franchise market. While there are may pros/cons I would definitely hesitate if  my investment team wasn't clearly in agreement in how to proceed. You will always have some who are more conservative than others and they often have a good reason to be. Investments such as this case involve a lot of capital and commitment. Failure can have long reaching effects.

$100 Project
This was a bit of a slow week. However, on Thursday I was tasked with finding an item for a customer that I hadn't researched before. After an hour on the internet and several calls to local supply stores I found the requested item and got a quote back to the customer. She was thrilled and promptly placed her order. Once payment is received I will add an additional $15 to my project total bringing me to $90 profit. With just a short period of time left I anticipate achieving and surpassing the original goal of $100 as I have two haircuts scheduled for this week.

Production, Operation, and Location

This week learned about Burt's Bees!  I didn't know any of this history of this company and I thought that the story was very interesting. I was surprised that a successful multi-million dollar company couldn't convince industry professionals to relocate to join them. Instead Burts Bees had to relocate to grow and attract the right talent.  As Donald Trump says, "Location, location, location."
This along with Acton Heros and e-corner taught how companies can start out with one idea and then evolve to become something new.

$100 Challenge
I wasn't as successful with my online campaign as I had hoped I would be. My goal was $20 in profit from product sales. I was only able to make $10. This brings my total profit to $75. I still think that I will be able to reach the $100 mark by the end of the project. This weekend was supposed to be my group haircut day at my husband's work. It had to be cancelled due to not getting final approval from the region. Although they liked the idea they couldn't get sign off from all the right people in the time-frame I needed. It was a good idea but has more red tape than I could manage for the scope of this project. This is definitely one of the challenges of working with a corporation instead of smaller businesses.

Entrepreneurial Interview
It was great to finally put all of my thoughts down about my interview with Jim. The greatest lesson I learned and want to implement in my life is to have a passion for whatever kind of work I do. I loved listening to the passion and excitement in his voice as he talked about his day job and his business. You could feel the passion exude from him. That kind of passion and excitement can keep an old man young. Jim has offered to review my resume for another class and he will be a valuable business connection.

Finding Great People

Great people develop themselves by aiming to be the best and consistently working hard for it.

-Charles Bates

Working with great people makes you great; you learn a lot and it also gives you the experience and confidence to move on with your own career.

Nas

This week we learned about how great people can make companies great. This is better said by Jim Collins in his book Good to Great  "...to build a successful organization and team you must get the right people on the bus."  The questions we need to ask are: Who are the right people? and How do we get the on the bus?

In order to find the right people we need to know what kind of people we are looking for. We can do this by creating job descriptions that include experience and education required, job functions that will be performed, key personality traits, company values and required timelines. We then seek out individuals who may fit out criteria. This is often done through the interview process. During this process we must take our time and not be quick just to fill a position. Doing so could stunt our company growth and be very costly. Once we find the right person we can offer them a position. As part of this process we should also consider what our exit strategy will be just in case they are not the right fit.

We can use the example of Jet Blue and its founder Neeleman who learned the industry through career choices, discovered a problem, thought of a solution and then found the best people that could help him "fix" the problem. He found people who were experts in the industry but would also buy into his dream and culture. Doing this allowed his to achieve profits in six months. This was amazing because most start ups in the industry were bankrupt within three years. 

$100 Challenge

This week has been challenging as I have only gained one additional sale this week. That brings my total to $65.

My biggest challenge is being unfamiliar with the market here in Twin Falls and not having a huge desire to carry my business beyond the point of this assignment. While I want the assignment to be successful I don't intend to stay in the business. Part of my motivation for going back to school is to make a career change. In our HMM quiz we were asked to discuss how people can make or break a company. In the service industry your clients are the company. I feel like I am doing any new clients I meet during this assignment a disservice because I don't intend to continue long term. In this industry you are dependent on repeat business. What am I saying to my clients if I only agree to service them this one time?  How does that really build a relationship?  Honestly, it doesn't.  The way I run my business also doesn't allow me to sell  my book to someone else. Clients come to you for your knowledge, skill but most importantly because you are you.

Next week I will work on my online product promotion with a goal of $20 in sales. I will be selling the products auction style (this was a feedback suggestion). I will be using two product lines Kenra and Moroccan Oil for this promotion.

Entrepreneurial Interview

My goal was to finish the final draft for this project but I put it on the back burner to do the E-myth book report instead. It is kind of silly that I didn't have this complete already as I finished the book the 3rd week of classes. I have had to go back and skim over the information to remind myself what the highlights of the book were. Joys of procrastination.

Management and Leadership

This week has been about management and leadership.  Is there really a difference?  I think it was best said by Hugh Nibly in is speech "Leaders to Managers: The Fatal Shift". Nibly said,

"The Generalstab tried desperately for a hundred years to train up a generation of leaders for the 
German army; but it never worked, because the men who delighted their superiors, i.e., the managers, got the high commands, while the men who delighted the lower ranks, i.e., the leaders, got reprimands.

Leaders are movers and shakers, original, inventive, unpredictable, imaginative, full of surprises that discomfit the enemy in war and the main office in peace. For the managers are safe, conservative, predictable, conforming organization men and team players, dedicated to the establishment."

Yes, there is a difference. Managers delight in their self worth and leaders delight in the self worth of other.

We were asked to complete a Leadership Style Survey and I have included my reflection assignment as I think it clearly articulates my thoughts on my personal leadership style.

Leadership Style Survey Reflection

I have grown up being thrust into leadership positions. Some worked out well and others did not. I have tried to take these experiences, both the good and bad, and create a leadership style that defines who I am. One of the reasons I am asked to take leadership positions is that I tend to get things done, can be a team player when necessary, but am able to stand alone when called upon to do so. I have found that I really struggle to sit in the shadows and watch others take over because they seek to manage a group instead of finding ways to include the group. I hate with a passion the phrase, “that’s how it’s always been done.” My first instinct is to question, “Why”?  This doesn’t always bode well for me.

Having completed the Leadership Style Survey I was neither surprised nor disappointed with the results.  I was good with what I saw and can see how my leadership style has changed over the years. As a child and youth I was more of an Authoritarian leader. It was my way or the highway. In high school I was involved in leadership classes and student council. I learned that I can’t do everything alone and that it is okay for others to have ideas on how things should be done and to allow them to do it their way.  As a young adult I learned the importance of delegation. I had been called as the Activities Chair for my YSA Branch. This required a huge time commitment. At the time I was going to school and a shift manager/trainer at the salon I worked at. My Branch President taught me that I could be a better leader if I would delegate the majority of the planning and carrying out of activities to my committee. He said that I should follow up with them and offer assistance but allow them the opportunity to own their assignments. This is the style that has been the hardest but most rewarding for me. The survey indicated that I am not “strong” in any particular leadership style. I scored highest in Participative (Democratic) Style, 36, followed closely by Delegative (Free Reign) Style, 31.  I feel that this is a fair assessment. You can’t always be right and sometimes leaders need to be able to support the majority even when they are in the minority. As a leader it is also important to lead through delegation. One of the best ways to get others on board with a goal is to give them an assignment, offer assistance, and then hold them accountable. The feeling you get when another person on your team accomplishes a goal is awesome. You can see their commitment level rise and you can see your own rise along with them.

I think each of the Acton Heros we have studied possess each of the three leadership styles. While one may be more dominate it is finding a balance that allows them to be successful. Leaders that are too authoritarian may struggle with employee retention and customer service. Leaders that are too participative may lack direction as it relates to the big picture. It is great to get along with your colleagues, but there may be a need for role distinction. Finally those who delegate too much may find that they don’t have a job!  If you delegate all of your responsibility, why does the company keep you around?  There will be different times in your career where one style may be needed more than another such as during a transition.

Overall, I am pleased with the results of this survey as they show that you can make a shift from one style to another with a conscious and consistent effort. As I am sure you can attest I have no problem taking a stand when I feel there are ground to do so, but I have come to the understanding that I don’t always have to be right either (well, okay, sometimes I don’t have to be right).  Learning to let go and allow others to achieve has been a long road but it has been worth it. I have gained a much greater appreciation for those who train others and get involved in the process instead of watching from the outside. It is these type of leaders that make me want to work in a corporate type job instead of being an entrepreneur. It is the idea that you can have an impact on others without having to be the boss that has guided the last ten years of my life. I no longer have the need or desire to be the CEO or Department Head to feel that I have arrived. I can now see others succeed and feel accomplished and fulfilled.

Entrepreneur Interview - Update

Over the next week I will be putting together the final draft of my Entrepreneur Interview. It was a good interview and as I reflect I can see how Jim has a passion for both his career and his entrepreneurial venture. His leadership style would be more participatory than any of the others but I can see him using each of the styles depending on the situation.

$100 Project - Update

This has been a rough week for my $100 project. My daughter had her tonsils removed last Friday and has struggled a bit with pain and the dry weather here in Idaho. I have put a couple of ad campaigns together but failed to get them posted on FB. I don't know how successful I will be with this project overall as my heart really isn't in it and we are in the process of moving again. This type of project is really geared to those who are established in their communities not those like me who are constantly moving and don't have a lot of time to get out and get to know those in the community. I wonder if this project would be more successful if it was done in teams? I am still struggling with some of the legal aspects of the project and that has definitely contributed to my lack of drive.  As a funny (or maybe not so funny) note. My kids brought home their Jump Rope for Heart donation information and asked if they could go out and solicit donations.  It honestly made me feel like they were asking to be sleazy used car salesmen. They honestly don't care about the American Heart Association they just want the "prizes".  In my own mind I compare this to the $100 project, I don't really have a desire to do it I just want the "prize" of a good grade in the end. Are we really teaching our kids to make the world a better place if they know nothing about he groups they are fundraising for?  Are we as college students really getting that much out of this project if our only goal is a good grade?  Are either of these really the entrepreneurial spirit?

My total to date for this project is $55