A bright spot in the economy “Big business from small people”

A bright spot in the economy “Big business from small people”

      There is a reason why young people come up with new ideas.  It is not that they are smarter or faster or better.  It is because this is their future, their life to grow into.  They see the world with no fear because fear does not let them grow.  Fear is not helpful to them.  That is why when I went for a walk with my 11 year old boy last year to look at the effects of the flood damage in the neighborhood, we saw two different events.       I saw sorrow and pain in the eyes of our neighbors as they put out to the curb destroyed furniture, carpet and electronics.  I witnessed kindness of people helping people salvage some memories and trophies from their home.  I saw essence, I saw the past.       Matthew, on the other hand was looking straight into the face of the future.  He saw opportunity in the form of trash in the front of people’s house that was going to rot and stink and continually remind them of the loss.  He said: “Daddy, we can load that stuff in the truck and take it to the dump for them, they would pay for that wouldn’t they?”      Now mind you, he didn’t ask about the licensing required to do such a thing.  He didn’t think about insurance and taxes and 1099’s.  He didn’t even ponder the philosophical reasons people get so attached to their stuff, much less where was the dump anyway.  He just walked up to the neighbor and got himself a customer.      Matthew is twelve now, and JunkGenerals.com, as his company is called is thriving.  Even in this economy where grown-ups are wondering what is the future going to hold for them. The boy and his nine year old sister keep busy every weekend without fail.       They would have more business if that darn school didn’t take up most of the week.  No worries though because he has forged relationships with other contractors in the field that have their drivers license already to pick up the slack while he is “wasting time in school” as he puts it.   This is real money that I am talking about, thousands of dollars saved from a boy who sees a need and finds a way to get the job done.      What are you doing?  For many of you the answer is nothing.  Kids can’t wait for things to change before they do something.  They don’t have a choice and they know it.  That is why they do first, and ask questions later.  You have seen this economy breed people who know that the answer is to be their own boss and buy their next job. Yet you stifle yourself into nothingness because you ask too many questions and never do anything.      JunkGenerals.com is expanding.  It has proven itself as a viable business and has attracted investment. (Albeit from family members)  We expect the business to evolve and change so that by the time the children graduate High School it will be a full blown self running, income producing entity.  All because some eleven year old boy made a move, and got a real live paying customer. You can do it too! No excuses! You are more creative than you think you are! We will keep you updated on the progress of Matthew, Sophie and Junk Generals. Now it’s your turn, our country is depending on you....

To Leap or Not To Leap

To Leap or Not To Leap

            Remember the time you grabbed all the bravery you had, and jumped off the high dive for the first time?  For many of you that was the first real due diligence that you undertook.  You probably stood around the ladder for a couple of days just to see if anyone fell off while climbing.  You checked out the jumpers and compared them to yourself, in terms of age, weight, athletic ability and the types of bathing suits they were wearing. (I once saw a poor kid lose his suit in the crystal clear water under the board.  The next time he was at the pool he was wearing cut off jean shorts and belt! )             Then one day when there were very few people at the pool, you took to the ladder and began to climb.  All the while you were hoping that a line would not form at the bottom, because if that happened, you were done.  Nobody ever, and I do mean ever, climbs down to endure the abuse and torment of the crowd below. There really is no turning back.             Buying your first job feels just about the same doesn’t it?  You really want to be an owner of a business and have worked hard to get to this point.  You have studied all the papers and the industry to the nth degree.  Now you are on the ladder and have that nauseous feeling in your stomach and look back to see a line forming and a small amount of panic creeps in.  Let me remind you why you will beat the odds and succeed. There are no absolutes in anything.  You too, have your own reasons that cause you to take the chance of going into business for yourself.  You have many qualities that will enable your success, but you don’t need them all, and you don’t need them all the time.  You do however need some, and you need to use the some, all of the time.             I bought my first store when I was eighteen.  I was not especially smart.  I was not especially driven.  I was not especially passionate or pressured from family.  I did have two things that for me, were necessary in order to take the leap of faith in myself to strike out in business.  They were, and still are: 1. Pride 2. Nothing to lose Now I realize that at eighteen, I without question had nothing to lose; our situations may be slightly different with you having tons of worldly possessions to your name and probably a family to support.  But it is more of an attitude that I am going for here.  Ask yourself what is the worst thing that could happen?  If the worst thing is that you may lose money, big deal.  Everybody loses money sometime in their life, you can get that back!  What you can’t get back is the time spent in a dead end job that is stealing your opportunity to soar with the eagles! This brings us to the second item; Pride.  What the heck is wrong with you?  You can simply will this business idea of yours to succeed if you want it badly enough.  You can’t let the Nay-Sayers have their way.  A strong business will adapt and overcome to any circumstance.  The beauty of a small business is that you can change your mind and switch business plans on a dime.  You keep your nose to the winds of change and go with it.  You don’t fail, it is that simple.  Your pride won’t let it happen.  You see, you are already in business for yourself now.  You are just adapting to the now situations in your life and creating another income source.  There is no turning back; you are at the end of the diving board looking down upon the crystal clear waters of success. Now what are you waiting for…Jump!...

Self Employed Nation

Self Employed Nation

We tend to get caught up in the news of the day and treat it like it was happening to us.  How many times do you find yourself in your car listening to the news on the radio and then trying to fix someone else’s problems?  Life today is not more complicated than in years past, and certainly less stressful.  Yet we let ourselves be sucked in by the news that we have no control over, and add it to our lives. People are still the same as they have always been, and most people want to grow, intellectually and as Maslow believed achieve “self actualization”.  Hard times in America are where we shine for the world to see.  The solution is to look inside and decide what you really want out of life.  Then look at your actions and ask yourself if those actions are moving you closer to…or further from that goal.  More than we can possibly imagine the challenge is not your circumstance but YOU.  The answers lay in one good word…WORK.  Real plow the fields kind of work.  The kind of work that wakes you up at 5:00 AM and gets you in the field until noon, you go home for lunch and eat an entire chicken and a half gallon of milk, and get back out there and work the land till the sun goes down.  Then go home smoke a pipe, go to sleep and start all over again in the morning.  As a very successful business owner and friend of mine say’s…”We need to learn hungry”.  Some of us have forgotten what real hard, sweaty, grimy, long lasting satisfying work is.  Some individuals have not.  They are the ones that are not affected by the economy.  They are used to finding a way out, through work and the faith that  “hard work always pays off”, and that the same old basic rules still apply.  We need to learn hungry!...

No Such Thing as a Bad Business

No Such Thing as a Bad Business

People who are “interested” in getting into their own business often ask me to keep a lookout for a “good business” for them.  You know the kind of business that turns a good profit, with a good history and a bright future.  This is an understandable request.  You yourself may be looking for the same thing right now and, I can see why you would want it.  Unfortunately unlike, Real Estate that virtually stays the same no matter who owns it, a business changes forever from day one of new ownership.  The history of the business is just that…History!!    Why does one restaurant or dry cleaners or sandwich shop fail? When right down the street the same type of businesses selling the same products are growing and thriving.  We see this everyday and still have a hard time grasping the obvious.  I think it’s because the answer involves self responsibility.  The truth is that there never has been or will be an honest, bad business, only bad management.  The difference is always the way the place is run.  The difference is the owner and leadership to the organization.  When looking for the perfect business for yourself, I believe you should spend most of the time searching inside your head, before you venture to the business opportunities section of the newspaper.    Many people of my own generation have no idea that A&P food stores at one time were the largest retailer in America.  They had over 15,000 store locations across the country.  When asked about how they have fallen so far from grace an employee said it best when he said, “We just lost Mr. John”.  Mr. John was the last of the family members to have a stake in the company.  An owner or any true leader has more than an “interest” in the success of a business, this person has a Passion.    That passion instills a never say die attitude that permeates the entire organization.  It feeds on itself and finds a way to get through the impossible times.  How is it that a hard working immigrant who can hardly speak the language can flourish in this country, while many of us with all the advantages that we are born with, struggle to stay afloat.   We all make bad decisions but the one we should never make is to get into a business because “the numbers look good”.  The real question is do you have it inside you to make the numbers become good.  Come hell or high water you will succeed.  That attitude only comes when you are doing what you were born to do.  That is the thing that keeps you up at night. It is called passion, and its good business....

Big Companies are Vulnerable

Big Companies are Vulnerable

A strange phenomenon seems to take place when a person strikes out on their own.  They seem to be embarrassed at their size and try to appear larger.  Then when they get big, publicity companies make a fortune on them trying to make them appear more down to earth and personable.  The truth is that small companies have a distinct advantage in service than do bigger ones and everyone knows it, but for the small business owner.  The larger companies understand that people will pay more for excellent service and advice.  The small business person has much more control over these things than does a bigger company.  That’s why the bigger ones will always compete on price.  If you play with their rules, you will lose.  Make them realize that they can’t play with your rules and give knock your socks off service.  The customers will race to your front door for more....

Give Twice as Much

Give Twice as Much

There is something magical that goes on in this world.  It is some law of nature that we all know and have seen yet can’t prove.  Simply the cycle of giving comes back 10 fold.  In whatever you are providing to your customer, give more.  Give more than you reasonably should.  More than your competitors and more than your customers expect.  At this point you become more than a supplier…you become an indispensable asset, a resource.  You become a friend and an ally. How many of you have a friend that you can call at two in the morning to pick you up from the airport?  Most of you will have someone.  Are you that person for someone else?  Can you be counted on for anything or everything?  I have a friend, Bill, that I think would stop the world to help me for anything.  The funny thing is that he does this for everyone.  He has made a career out of it.  One time going on a trip I asked if I could borrow a cooler.  He gave me one, but it was filled with food and even the ice packs to keep things cool.  He calls his neighbors when he is having stuff done to the house and has a dumpster in his driveway so his neighbors can use it while it’s there.  He also has many friends that will leave work early and go and mow his lawn and bring him food and stay on call when he got sick, and was hospitalized.  His illness has revealed how his life’s work of giving has paid off in tangible ways by the love and affection of so many.  People are fighting to be in the front of the line to care for the man.  Would that be the case with you and your customers?  Here are five things you can do: • Think; just take time to think about what are the other persons or customers needs and wants. • Put yourself in another shoes for a time.  Sympathy is useless…empathy gets results. • Come up with solutions not excuses • Recruit assistance • Take action Being the “go to guy” has added perks of always knowing whom to call for good deals.  Is this hard to do?  Yes of course it is. Especially when you are being taken advantage of, and you will be. However then you are in control. They know that you are going the extra mile.  In your time of need they will be there in droves. You will be working harder than you even dreamed possible, and the result will be more business, more friends, more money and more life.  Give twice as much and watch what happens....

The Time to Sell

The Time to Sell

The time to sell is when someone wants to buy!  When we brokers talk among ourselves this is always a hot topic.  You see for a Business Broker we are always on the hunt for new listings.  For a broker having listings is like having inventory.  Without it, there is nothing to sell.  I jokingly tell people that two days a week everyone wants to sell.  You just need to ask on the right day.  When it’s raining for instance I know to call on landscapers and house painters.   For a business owner the decision of when to sell often presents itself in the way of forced life changes or business environment changes.  This article will make the assumption that business is good and the idea just popped into your head. “The time to sell is when someone wants to buy.”  That is what I was always taught, and it makes a lot of sense in some cases.  The answer lies in control of timing.  We have none.  Just as you can be sure that employees won’t come in on a busy Monday morning…you can be sure that when you want or need to sell quickly the buyers will be hard to come by.  A bird in the hand is better than two in the bush here too.  By the way, all those customers that have told you to call them when you wanted to sell will disappear and soon as you have the nerve to want real money for your business.  The question that you must answer before you even think about selling your business is:  What am I going to do with myself?  A person needs an exit strategy.  The only people that regretted selling are those who gave no thought to the day after the sale.  I’m not saying that retirement is not a good option but even then you need an idea of what you are going to do on that retirement.  This is so important that we have to talk further on this subject.  Selling your business is gut wrenching!!  Especially if it is a business that you started on paper in the bathroom 25 years ago and built it from scratch.  It’s more than a place to go to work, it’s a friend, a constant, for some of us it’s the reason we wake up in the morning.  We have our employees and customers and our way of doing things.  The new guy or gal will have new customers and new ways of doing things and, God forbid…they may be better.  What if they are more successful than me?  It is a very strong person that truly wants the new guy to do better.  We define ourselves by our business and if it succeeds then we are successful.  If it fails we would take it very personally.  The joys of knowing that your strength and independence will in some ways be gone if you sell without a plan for the future.  Your longtime vendors won’t call to talk to you anymore.  You’ll be just like the rest of us regular “Joes” if you sell without a plan for the future.  You must be running toward something not just away from something. Money obviously is a big concern and the seller should be aware of the expense of the sale.  It is rare for a small business to be bought for an all cash deal.  For most small businesses the buyer and the lending institution will expect the seller to “hold a note” for part of the payment.  This isn’t necessarily a cost but you won’t have use of that money the day after the sale.  Also there is a thing called taxes that seems to come between your money and your wallet.  There is also lawyer fees and accounting due diligence stuff that will add a few thousand to the bill.  Brokers like me usually have a commission fee of 10% of the total sale price.   I know what you’re thinking…all this reading and still I don’t know if I should sell or not.  Well it should be a hard question.  This is after all a change of life and all.  Eventually we all do the same thing.  The romantic idea of selling is over, and we have time to think about it.  Kind of like the fantasy we all have about just running off to live in another place and starting life over with no responsibilities.  (I know you have had that dream at least once.)  You will treat this just like any other business decision and weigh the pros and cons of the deal.  Remember the goal of any business is eventually to sell so you can reap the benefits that the money will bring, and that if your business isn’t giving you more life…it is taking it away.  With all that said…the time to sell is when someone wants to buy....

Attitudes Can Change a Nation

Attitudes Can Change a Nation

 Children are the best teachers.  They show everyday how hypocritical we can be.  I caught myself preaching to my son about making excuses instead of finishing his required work for school, and the same day caught myself making the same excuse to my wife about not doing something about the ants in the kitchen.  A wise man told me once that “the only reason you are ever late is because you didn’t leave early enough” In other words it is always you.  It is never the situation that you find yourself in.  Today’s world gives you tremendous ammunition for your excuse maker to get involved.  He will encourage you to wait, to contemplate, or to stay in a holding pattern with your life until things settle down in our so called “economic crisis”.   This is self destructive to every aspect of your life, and our Country.  If you think that I am preaching to you now…you are right.  The fact is that there are only a few things we can do to affect the situation, and none of them require us to know about all of the other challenges that face the planet.  Sitting around worrying about the ozone layer doesn’t build a new electric car.  Fighting with your neighbor about the best candidate for the Senate doesn’t feed your family.  Jeffrey Gitomer wrote: “resign yourself from being the General Manager of the universe” Now that is good advice.  Think of how much more time you’ll have to work on the things that you actually have control over, if you leave the rest of the stuff to the world to handle.  It is time for you to make the news, not to watch it happen.  Attitudes can change a Nation and affects everyone.  When you wait for others to do things, or wait for things to happen before you do things, nothing gets done.  I met a woman once who was lamenting the fact that she wasn’t born in the time of the industrial revolution in the 1900’s.  She believed that the opportunities that the industrial giants had then, was the reason for their success.  If she were only alive then, she too would have been a giant.  Maybe so, but it was interesting that her birthday happened to be in the same year as Bill Gates.  Some would say that he too just fell into the right place at the right time.  Do you think he sees the world with the same trepidation as you? These times, as in all times, require men of action, or doers and risk takers.  Man has always looked for the short term gain and easy way out.  It must be a nature thing.  However, there is no gain with worry about the future, there is no gain with poverty, and there is no gain with anger or any negative emotion that prevents action.  It is time to stop with the excuses, and blaming, and questions of why things are the way they are.  Holding patterns don’t help anyone…It is time to get off your bum and fly.  Then you can see the world from 10,000 ft. up, with a new perspective, one like Bill Gates....