I received an email recently from a very good friend who had read my book, and is currently reading the 2007 work by Nassim Nicholas Taleb entitled "The Black Swan".
My friend cited the following passage in Taleb's book which he felt pertained to my book:
Numerous studies of millionaires aimed at figuring out the skills required for hotshotness follow the following methodology. They take a population of hotshots, those with big titles and big jobs, and study their attributes. They look at what those big guns have in common: courage, risk taking, optimism, and so on, and infer that these traits, most notably risk taking, help you to become successful. You would also probably get the same impression if you read CEO's ghostwritten autobiographies or attended their presentations to fawning MBA students.
Now take a look at the cemetery. It is quite difficult to do so because people who fail do not seem to write memoirs, and if they did, those business publishers I know would not even consider giving them the courtesy of a returned phone call (as to returned e-mail, fuhgedit). Readers would not pay $26.95 for a story of failure, even if you convinced them that it had more tricks than a story of success. The entire notion of biography is grounded in the arbitrary ascription of a causal relation between specified traits and subsequent events. Now consider the cemetery. The graveyard of failed persons will be full of people who shared the following traits: courage, risk taking, optimism, etc. Just like the population of millionaires.
Rather interesting, wouldn't you say?
I can certainly attest to the bias against stories of "unsuccess", as I was advised by a number of people that no one would either publish or purchase a book with the negative-sounding title "Don't Let Your Dream Business Turn Into a Nightmare", not to mention a website called http://www.mybusinessnightmare.com/. However, I must also add that my phone calls and emails to the three Canadian publishers to whom I submitted my book were returned, and, in fact, the Managing Editor of one of them said that my book was "one of the most original business books" he had ever read". In fact, it was his comment that my book "belongs on the syllabus of every M.B.A. program in the country" that inspired me to self-publish and self-market the book.
I should also state that people have purchased the book, as well, although I have only just begun to figure out what it takes to publish and promote a book yourself. I haven't done the latter - I am just beginning to figure out what I need to do.
What I find most interesting about the passage from Taleb's book cited above is the inference that books about failure ( I prefer to use the term "unsuccess" to refer to my book as the business I founded has not failed) can be as instructive, if not more instructive, than books dealing with success. That is the very reason why I wrote my book, and subtitled it "A Cautionary Tale for Would-Be Entrepreneurs", and also why I hope that everyone who is either considering starting a small business or studying entrepreneurship in school will read my book.
As for the contention in Taleb's book that cemeteries are filled with unheralded "failures" who had just as much courage as famous "successes" - well, I'm not there yet, nor am I in any hurry to get there, but I appreciate the sentiment.
Bottom line: read my book and let me know if you agree with Nassim Nicholas Taleb's comments. And read his book "The Black Swan" too. Sounds interesting.
Showing posts with label first-time small business owners. Show all posts
Showing posts with label first-time small business owners. Show all posts
Wednesday, February 17, 2010
Wednesday, February 10, 2010
Winning the Battle to Tell the Truth
In my last post, I described the battle in which I am engaged to see to it that the case study which was created by the Ivey School of Business - one of the top business schools in Canada - based upon my book "Don't Let Your Dream Business Turn Into a Nightmare" remains available to students at Ivey and at other business schools around the world which may have interest in using it in their programs.
In the spring of 2009, I submitted a copy of my book to the Ivey School of Business at the University of Western Ontario, with a view to having it added to the curriculum of their courses in entrepreneurship. In May, I received an email from the Executive Entrepeneur in Residence at Ivey, expressing interest in adapting my book - or my story as I told it in my book - into a case study, as Ivey is one of a number of business schools that uses the "case study" methodology. The case study was written in the fall and posted on the Ivey Publishing website in November of 2009. In December, I received an email from Ivey informing me that my former friend and associate, who is now the president of The Men's PowerSpa, had lodged a complaint, on the basis that the majority owners of the company did not give their consent to use the case study that bears the name of the company.
My book is a very personal account of one man's entrepreneurial dream that turned into a nightmare. I wrote it as a cautionary tale to warn other would-be entrepreneurs of the dangers of starting a business - especially a "dream business" - with someone else's money. Someone who may not share your passion or vision.
I did not expect the majority shareholders of the company that I founded to like my book because it is not a very flattering portrait of the way that people can behave when money is on the table. The lesson of my book is that when money is involved, a number of values which we cherish, such as fairness and even "niceness" can go out the window. You might think that all is fair in business, but I don't, and that is why I wrote my book.
Prior to self-publishing my book, I consulted with several lawyers, and was advised that as long as my book was truthful, I could defend myself against any claims of libel. Since my book was truthful, I went ahead and published it. And the Ivey School of Business deemed that the story that I told in my book - the story of how my "dream business" turned into a nightmare - was of value to the students at Ivey and at other business schools around the world.
But in December, because the majority owners of the business had not approved of the use of the case study, they pulled it.
This, to me, is analagous to a newspaper pulling a story about the problems at Toyota becasue the owners of Toyota don't like it. Talk about freedom of the press.
The upshot of all of this is that, as of this week, I was informed that the case study will go forward, in a disguised version, so that readers will not be able to recognize The Men's PowerSpa.
So, somewhere in the future, students of entrepeneurship at Ivey and other business schools around the world may get to read the story of an entrepreneur who had a dream, and saw that dream turn into a nightmare.
It won't be my story the way I told it in my book. But it will be as close as it can be, thanks to the majority owners of The Men's PowerSpa.
A couple of guys who should be ashamed of themselves.
In the spring of 2009, I submitted a copy of my book to the Ivey School of Business at the University of Western Ontario, with a view to having it added to the curriculum of their courses in entrepreneurship. In May, I received an email from the Executive Entrepeneur in Residence at Ivey, expressing interest in adapting my book - or my story as I told it in my book - into a case study, as Ivey is one of a number of business schools that uses the "case study" methodology. The case study was written in the fall and posted on the Ivey Publishing website in November of 2009. In December, I received an email from Ivey informing me that my former friend and associate, who is now the president of The Men's PowerSpa, had lodged a complaint, on the basis that the majority owners of the company did not give their consent to use the case study that bears the name of the company.
My book is a very personal account of one man's entrepreneurial dream that turned into a nightmare. I wrote it as a cautionary tale to warn other would-be entrepreneurs of the dangers of starting a business - especially a "dream business" - with someone else's money. Someone who may not share your passion or vision.
I did not expect the majority shareholders of the company that I founded to like my book because it is not a very flattering portrait of the way that people can behave when money is on the table. The lesson of my book is that when money is involved, a number of values which we cherish, such as fairness and even "niceness" can go out the window. You might think that all is fair in business, but I don't, and that is why I wrote my book.
Prior to self-publishing my book, I consulted with several lawyers, and was advised that as long as my book was truthful, I could defend myself against any claims of libel. Since my book was truthful, I went ahead and published it. And the Ivey School of Business deemed that the story that I told in my book - the story of how my "dream business" turned into a nightmare - was of value to the students at Ivey and at other business schools around the world.
But in December, because the majority owners of the business had not approved of the use of the case study, they pulled it.
This, to me, is analagous to a newspaper pulling a story about the problems at Toyota becasue the owners of Toyota don't like it. Talk about freedom of the press.
The upshot of all of this is that, as of this week, I was informed that the case study will go forward, in a disguised version, so that readers will not be able to recognize The Men's PowerSpa.
So, somewhere in the future, students of entrepeneurship at Ivey and other business schools around the world may get to read the story of an entrepreneur who had a dream, and saw that dream turn into a nightmare.
It won't be my story the way I told it in my book. But it will be as close as it can be, thanks to the majority owners of The Men's PowerSpa.
A couple of guys who should be ashamed of themselves.
Saturday, February 6, 2010
What Do You Make of This?
My book, "Don't Let Your Dream Business Turn Into a Nightmare" is an honest account, from my perspective, of my experience in founding one of the first day spas for men in the world called The Men's PowerSpa.
When I had finished my book, in late 2008, I submitted it to one of the leading independent publishers in Canada, and the Managing Editor, who loved the book, and called it "the most original business book he had ever read", said that it belonged on the syllabus of every M.B.A. program in the country.
That was a "light bulb" moment for me, as I had written the book as a cautionary tale for would-be entrepreneurs, to help them avoid the misfortune that I experienced. I had not thought of the book as an educational resource to be used in college or university entrepreneurship and business courses.
Based upon the comments of the Managing Editor, I decided to publish the book myself, and to send it to university and college instructors, to see if it might be of interest for their graduate and undergraduate courses. One of the most thrilling responses that I received was from the Ivey School of Business at the University of Western Ontario, not only one of the top business schools in Canada, but my alma mater, as I have a Master's degree in English from Western.
In short, the Ivey School of Business adapted my book, which is the tale of a first-time entrepreneur with the dream of creating one of the first spas in the world for men, into a case study. The case study was completed in the fall of 2009, and made available on the Ivey Publishing website.
I did not have any financial interest whatsoever in the use of the case study at Ivey or in the sale of the case study to other business schools, but I did see a benefit to me in the association with a prestigious academic institution like Ivey and in exposing my story to students of business around the world, some of whom might have interest in reading the complete story as I told it in my book.
I should also point out that in writing my book, I was as honest as I could possibly be about my actions, my decisions and my mistakes, and those of others involved in the story. I was guided at all times by the truth, and the advice that I had received from several lawyers, that as long as I told the truth, I could defend myself against any legal challenges that might arise. I also felt, and I am going to admit this openly, that as a citizen of Canada, I had the right to tell my story my way - and that is what I did. I refused to allow myself to be cowed out of doing so by anyone.
And, what happened to the case study that was created by the Ivey School of Business?
Shortly after it was published, they received an email from someone associated with the business who complained that the majority owners had not given their consent to use the case study.
The case study that was based upon my book.
The book that was an honest and truthful account of my experience.
The experience that belongs to me, which is part of my life story, and which I told as truthfully as I could.
And, what did Ivey Publishing do? They immediately withdrew the case study from their website, with the intent of revising it so as to completely disguise the name and the identity of the business.
In other words, to completely alter the story that I wrote.
And why would they do that?
I was told that their case studies are not based upon individual stories - like the story of an entrepreneur whose dream business turned into a nightmare. Their cases are based upon businesses, and unless everyone signs off on the case study like a happy little family, they won't use it.
Wouldn't want to risk controversy in the academic world now, would we?
Someday, there may be a case study that bears some vague resemblance to the story that I told in my book.
The story of how my dream business turned into a nightmare.
There are always going to be cowards who are afraid of the truth, and those who lack the courage to tell the truth.
And, hopefully, others who aren't and don't.
If you want to know my story, read my book.
When I had finished my book, in late 2008, I submitted it to one of the leading independent publishers in Canada, and the Managing Editor, who loved the book, and called it "the most original business book he had ever read", said that it belonged on the syllabus of every M.B.A. program in the country.
That was a "light bulb" moment for me, as I had written the book as a cautionary tale for would-be entrepreneurs, to help them avoid the misfortune that I experienced. I had not thought of the book as an educational resource to be used in college or university entrepreneurship and business courses.
Based upon the comments of the Managing Editor, I decided to publish the book myself, and to send it to university and college instructors, to see if it might be of interest for their graduate and undergraduate courses. One of the most thrilling responses that I received was from the Ivey School of Business at the University of Western Ontario, not only one of the top business schools in Canada, but my alma mater, as I have a Master's degree in English from Western.
In short, the Ivey School of Business adapted my book, which is the tale of a first-time entrepreneur with the dream of creating one of the first spas in the world for men, into a case study. The case study was completed in the fall of 2009, and made available on the Ivey Publishing website.
I did not have any financial interest whatsoever in the use of the case study at Ivey or in the sale of the case study to other business schools, but I did see a benefit to me in the association with a prestigious academic institution like Ivey and in exposing my story to students of business around the world, some of whom might have interest in reading the complete story as I told it in my book.
I should also point out that in writing my book, I was as honest as I could possibly be about my actions, my decisions and my mistakes, and those of others involved in the story. I was guided at all times by the truth, and the advice that I had received from several lawyers, that as long as I told the truth, I could defend myself against any legal challenges that might arise. I also felt, and I am going to admit this openly, that as a citizen of Canada, I had the right to tell my story my way - and that is what I did. I refused to allow myself to be cowed out of doing so by anyone.
And, what happened to the case study that was created by the Ivey School of Business?
Shortly after it was published, they received an email from someone associated with the business who complained that the majority owners had not given their consent to use the case study.
The case study that was based upon my book.
The book that was an honest and truthful account of my experience.
The experience that belongs to me, which is part of my life story, and which I told as truthfully as I could.
And, what did Ivey Publishing do? They immediately withdrew the case study from their website, with the intent of revising it so as to completely disguise the name and the identity of the business.
In other words, to completely alter the story that I wrote.
And why would they do that?
I was told that their case studies are not based upon individual stories - like the story of an entrepreneur whose dream business turned into a nightmare. Their cases are based upon businesses, and unless everyone signs off on the case study like a happy little family, they won't use it.
Wouldn't want to risk controversy in the academic world now, would we?
Someday, there may be a case study that bears some vague resemblance to the story that I told in my book.
The story of how my dream business turned into a nightmare.
There are always going to be cowards who are afraid of the truth, and those who lack the courage to tell the truth.
And, hopefully, others who aren't and don't.
If you want to know my story, read my book.
Monday, August 10, 2009
Why is Good News so Hard to Believe?
Readers of this blog know that I usually use this space to write about my experience in launching and managing one of the first spas in the world for men, called The Men's PowerSpa.
I have also written a book about that experience called "Don't Let Your Dream Business Turn into a Nightmare".
The incident which I am going to relate in this post occurred during the time that I was managing the business, but it does not necessarily have to do with small business. It has more to do with what I will refer to as human perversity.
While I was still running my spa for men, one of my clients - who was also a good friend - was introduced to a nutritional cleansing program created by a company in the United States called Isagenix.
Isagenix is reputed to be the world leader in nutritional cleansing, and their flagship program is a 30-day cleanse, which not only removes toxins from the system, but also achieves weight loss in most people who follow the program, because toxins in the body are encased in fat.
My friend followed the 30-day program very conscientiously, and he lost 24 pounds in 30 days. Not only that, he reported that he felt great - had more energy, was sleeping better and felt less stressed. I watched the transformation with my own eyes and I can certainly attest to the fact that he looked like a new man.
I was intrigued not only because of the dramatic improvement that I saw in my friend's appearance, but because I had started a spa, and the 30-day detoxification program seemed to be a perfect fit for a business that had as its mission to help men look and feel their best.
Within a few months of being introduced to the Isagenix nutritional cleansing program, I had the falling out with my investors that I chronicled in my book "Don't Let Your Dream Business Turn Into a Nightmare", and was no longer running the spa, but I continued to be involved with Isagenix. To this day - almost three years later - I have an Isalean protein shake for breakfast every day, and I attribute the fact that I have been able to remain healthy despite the stress that I have experienced over the past few years to Isagenix. I have also recommended the 30-day program to several of my friends - guys who had said for years that they wanted to lose weight and improve their nutrition - and the results that they have achieved have been phenomenal.
I have also asked several personal trainers whom I have known for many years to evaluate the products. One of them is Sheldon Persad. I have known Sheldon for over 20 years. He is one of the most straightforward, no-nonsense people I have ever known, and totally dedicated to his personal training practice. I asked him to evaluate the products in the Isagenix nutrtional cleansing program over two years ago. He spent the first year trying to find flaws in it and looking for reasons not to recommend it to his clients. Now, he not only recommends it to his clients, he has put his mother on the program. That is how much he believes in it.
Last night, I went into the back office of my Isagenix website and reviewed some of the training videos from Isagenix University. In video after video, professionals from the world of medicine endorse and explain the benefits of the Isagenix products - one of them is the former nutritional consultant to the White House, while another is a colorectal surgeon. There are chiropractors, gynecologists, gastroenterologists - all expounding the health benefits of the 30-day nutritional cleansing program and the other Isagenix products.
Watching the videos last night reminded me of an incident which occurred while I was still running my spa for men. I was having coffee with another of my clients -another gent who had said for years that he really wanted to lose weight. He had at least 30 pounds of excess weight that had accumulated around his middle - which is a serious health concern for men. Women tend not to develop a "bowling ball" of excess weight in their belly in the way that men do.
When I mentioned the Isagenix program to him, and the phenomenal results that I had seen in several of my friends, he was immediately skeptical - and rattled off a number of people that he would have to consult before embarking on the program - his massage therapist, chiropractor, physiotherapist - etc.
While we were chatting, he was consuming one of those frothy coffee concoctions which has been shown to contain more fat and calories than a cheeseburger and fries. As far as I know, he had not consulted with any of his medical team before pouring that into his body - but he wanted to make sure that the Isagenix products that had been endorsed by the former nutritional consultant to the White House were safe.
This incident tells you why it can be so hard to sell people anything that is good for them - whether it is a nutritional cleansing program or a spa service. We always believe bad news - does anyone doubt that the frothy coffee drink is really full of fat, sugar and caffeine and that it has absolutely no nutritional value? Everyone knows that, and yet people line up to buy it all day long.
But try telling people about a product that is actually good for them - that can help them eliminate toxins, lose excess weight, gain energy and reduce stress. Must be a con, they say.
We believe bad news and doubt the good news. Perhaps that's why obesity has reached epidemic levels in our society, along with other lifestyle-related illnesses.
Call it human perversity.
I have also written a book about that experience called "Don't Let Your Dream Business Turn into a Nightmare".
The incident which I am going to relate in this post occurred during the time that I was managing the business, but it does not necessarily have to do with small business. It has more to do with what I will refer to as human perversity.
While I was still running my spa for men, one of my clients - who was also a good friend - was introduced to a nutritional cleansing program created by a company in the United States called Isagenix.
Isagenix is reputed to be the world leader in nutritional cleansing, and their flagship program is a 30-day cleanse, which not only removes toxins from the system, but also achieves weight loss in most people who follow the program, because toxins in the body are encased in fat.
My friend followed the 30-day program very conscientiously, and he lost 24 pounds in 30 days. Not only that, he reported that he felt great - had more energy, was sleeping better and felt less stressed. I watched the transformation with my own eyes and I can certainly attest to the fact that he looked like a new man.
I was intrigued not only because of the dramatic improvement that I saw in my friend's appearance, but because I had started a spa, and the 30-day detoxification program seemed to be a perfect fit for a business that had as its mission to help men look and feel their best.
Within a few months of being introduced to the Isagenix nutritional cleansing program, I had the falling out with my investors that I chronicled in my book "Don't Let Your Dream Business Turn Into a Nightmare", and was no longer running the spa, but I continued to be involved with Isagenix. To this day - almost three years later - I have an Isalean protein shake for breakfast every day, and I attribute the fact that I have been able to remain healthy despite the stress that I have experienced over the past few years to Isagenix. I have also recommended the 30-day program to several of my friends - guys who had said for years that they wanted to lose weight and improve their nutrition - and the results that they have achieved have been phenomenal.
I have also asked several personal trainers whom I have known for many years to evaluate the products. One of them is Sheldon Persad. I have known Sheldon for over 20 years. He is one of the most straightforward, no-nonsense people I have ever known, and totally dedicated to his personal training practice. I asked him to evaluate the products in the Isagenix nutrtional cleansing program over two years ago. He spent the first year trying to find flaws in it and looking for reasons not to recommend it to his clients. Now, he not only recommends it to his clients, he has put his mother on the program. That is how much he believes in it.
Last night, I went into the back office of my Isagenix website and reviewed some of the training videos from Isagenix University. In video after video, professionals from the world of medicine endorse and explain the benefits of the Isagenix products - one of them is the former nutritional consultant to the White House, while another is a colorectal surgeon. There are chiropractors, gynecologists, gastroenterologists - all expounding the health benefits of the 30-day nutritional cleansing program and the other Isagenix products.
Watching the videos last night reminded me of an incident which occurred while I was still running my spa for men. I was having coffee with another of my clients -another gent who had said for years that he really wanted to lose weight. He had at least 30 pounds of excess weight that had accumulated around his middle - which is a serious health concern for men. Women tend not to develop a "bowling ball" of excess weight in their belly in the way that men do.
When I mentioned the Isagenix program to him, and the phenomenal results that I had seen in several of my friends, he was immediately skeptical - and rattled off a number of people that he would have to consult before embarking on the program - his massage therapist, chiropractor, physiotherapist - etc.
While we were chatting, he was consuming one of those frothy coffee concoctions which has been shown to contain more fat and calories than a cheeseburger and fries. As far as I know, he had not consulted with any of his medical team before pouring that into his body - but he wanted to make sure that the Isagenix products that had been endorsed by the former nutritional consultant to the White House were safe.
This incident tells you why it can be so hard to sell people anything that is good for them - whether it is a nutritional cleansing program or a spa service. We always believe bad news - does anyone doubt that the frothy coffee drink is really full of fat, sugar and caffeine and that it has absolutely no nutritional value? Everyone knows that, and yet people line up to buy it all day long.
But try telling people about a product that is actually good for them - that can help them eliminate toxins, lose excess weight, gain energy and reduce stress. Must be a con, they say.
We believe bad news and doubt the good news. Perhaps that's why obesity has reached epidemic levels in our society, along with other lifestyle-related illnesses.
Call it human perversity.
Wednesday, July 22, 2009
Can You Afford to Love Your Small Business?
In the summer of 2005, I was in love.
Yup, I'll admit it.
Truly, madly, deeply.
I was in love with the small business that I had founded.
It was one of the first spas in the world for men, called The Men's PowerSpa.
And why shouldn't I have been in love with it - I had created it just the way I had imagined it.
It was slick, sleek and masculine, with a bit of swagger.
But it didn't only look cool, it had taste - man, you weren't going to hear any wind chimes and pan flutes in here - you were going to hear Sinatra, Darin, and Bennett - real guy music.
And it had a mission - a serious mission - to help men look and feel their best.
Because looking and feeling his best confers benefits in every aspect of a man's life.
That was the core belief of my business.
I loved having created one of the first spas in the world for men, I loved being the self-proclaimed world leader in the men's personal care industry and I loved it when guys came in and left - looking and feeling their best.
Because I loved my small business, I believed in it, and defended it against criticism, expecially if the source of the criticism was people who had never set foot in the spa.
Like my investors.
Love conquers all, they say. But they also say that love is blind.
Was I blind to some of the problems in my small business?
I really don't know.
If you have a small business, can you afford to be in love with your business?
Can you afford not to?
Yup, I'll admit it.
Truly, madly, deeply.
I was in love with the small business that I had founded.
It was one of the first spas in the world for men, called The Men's PowerSpa.
And why shouldn't I have been in love with it - I had created it just the way I had imagined it.
It was slick, sleek and masculine, with a bit of swagger.
But it didn't only look cool, it had taste - man, you weren't going to hear any wind chimes and pan flutes in here - you were going to hear Sinatra, Darin, and Bennett - real guy music.
And it had a mission - a serious mission - to help men look and feel their best.
Because looking and feeling his best confers benefits in every aspect of a man's life.
That was the core belief of my business.
I loved having created one of the first spas in the world for men, I loved being the self-proclaimed world leader in the men's personal care industry and I loved it when guys came in and left - looking and feeling their best.
Because I loved my small business, I believed in it, and defended it against criticism, expecially if the source of the criticism was people who had never set foot in the spa.
Like my investors.
Love conquers all, they say. But they also say that love is blind.
Was I blind to some of the problems in my small business?
I really don't know.
If you have a small business, can you afford to be in love with your business?
Can you afford not to?
Tuesday, July 21, 2009
Is Your Business Playing to Win Or Not To Lose?
In my post of yesterday, I wrote about the prevailing attitude that I had during the development phase of my small business - one of the first spas in the world for men - and throughout the two and half years that I was running the business.
The prevailing attitude was 'This business can't fail."
The concept of my small business was to create a place where men could enjoy personal care services designed to help them look and feel their best in a comfortable, masculine environment.
How could a business like that fail?
And, by the way, the business hasn't failed.
It was the relationship with my investors that failed.
Because I believed that my business could not fail, I made certain decisions - decisions that I would not have made if I felt that the business could or likely would fail.
In other words, I expected abundance, not scarcity.
I expected lots of clients, a steady stream of revenue, and success.
And because I expected success, I created a company that could succeed.
I founded my spa for men on three key watchwords: commitment, consistency and continuity.
I wanted a staff that was committed to the business, offering services of consistent quality, in order to create continuity with our clients.
To achieve that, I had to hire and retain good people. I could not afford to have a revolving door of service providers. If I did not retain my staff, I could not achieve the Three C's that were the cornerstone of the business: commitment, consistency and continuity.
And that meant I had to pay my staff right from the beginning -before we had any clients. If I had only paid them a "fee per service", with no services to deliver, they would have left within couple of days.
The belief that the business could not fail informed virtually every decision that I made.
Paying the staff an hourly wage was just one of them.
If you are thinking of starting your own small business, ot if you already have a small business, are you expecting abundance or scarcity? Are you playing to win or not to lose? Do you believe that your business cannot fail, or that it likely will?
Your belief system will determine how you develop and run your business.
If you have investors, as I did, you had better make sure that they share your belief system.
"Are we playing to win or playing not to lose?"
Make sure everyone has the same answer.
The prevailing attitude was 'This business can't fail."
The concept of my small business was to create a place where men could enjoy personal care services designed to help them look and feel their best in a comfortable, masculine environment.
How could a business like that fail?
And, by the way, the business hasn't failed.
It was the relationship with my investors that failed.
Because I believed that my business could not fail, I made certain decisions - decisions that I would not have made if I felt that the business could or likely would fail.
In other words, I expected abundance, not scarcity.
I expected lots of clients, a steady stream of revenue, and success.
And because I expected success, I created a company that could succeed.
I founded my spa for men on three key watchwords: commitment, consistency and continuity.
I wanted a staff that was committed to the business, offering services of consistent quality, in order to create continuity with our clients.
To achieve that, I had to hire and retain good people. I could not afford to have a revolving door of service providers. If I did not retain my staff, I could not achieve the Three C's that were the cornerstone of the business: commitment, consistency and continuity.
And that meant I had to pay my staff right from the beginning -before we had any clients. If I had only paid them a "fee per service", with no services to deliver, they would have left within couple of days.
The belief that the business could not fail informed virtually every decision that I made.
Paying the staff an hourly wage was just one of them.
If you are thinking of starting your own small business, ot if you already have a small business, are you expecting abundance or scarcity? Are you playing to win or not to lose? Do you believe that your business cannot fail, or that it likely will?
Your belief system will determine how you develop and run your business.
If you have investors, as I did, you had better make sure that they share your belief system.
"Are we playing to win or playing not to lose?"
Make sure everyone has the same answer.
Sunday, July 19, 2009
What is the "Mikey Factor" in Your Small Business?
Back in 1981, I was just starting my career in television production, and working as the Unit Manager on a location drama. One day, I learned a lesson that would serve me well some 20 years later, when I came to develop a small business. The lesson that I learned in 1981 was that any small detail can really screw up a production. This is how I described it in my book entitled "Don't Let Your Dream Business Turn Into a Nightmare":
One day, one of the lighting guys wasn’t feeling well and left the set early. At the end of the shooting day, word was sent out to the set from the production office that the call time for the following day was being moved up from 7 a.m. to 6 a.m., because the production had fallen behind schedule, but the lighting guy didn’t hear the announcement because he had gone home early.
And you, as the Unit Manager, didn’t think of calling him at home to inform him of the scheduling change.
Ordinarily, that might not be a big deal, but this time, it was.
Because -the next morning, as the convoy of production vehicles was pulling out of the television station to make its way to the set – a small town about an hour north of the station –the huge lighting truck remained in place - and a bolt of white hot terror ran from the top of your head down to your toes, as you realized that the driver of the lighting truck was still in bed, because you hadn’t thought to call him to tell him about the change in call time.
Soon there would be 40 people standing around on the set while the lighting crew was waiting for the truck to arrive so that they could set up for the first scene– and whatever time they had hoped to pick up by virtue of the earlier call time would be entirely lost.
So you got into the truck yourself - and without a license to drive a rig that big or any idea of where the gears were – you willed the vehicle to the set – sweat pouring down your face –and you never forgot how that felt, for the rest of your career in television production – or the rest of your life.
The fellow whom I forgot to call was named Mike, and everyone called him "Mikey".
Forgetting to call "Mikey" almost ended my career in television production before it began.
But the lesson that I learned stayed with me -and so, when I was developing my small business, which was a spa for men, I made a list of everything that I felt could go wrong - every single small detail that I could think of - that had the power to ruin my business.
And I checked that list every single day.
If you are developing a small business, or if you are already running one, ask yourself "What is the 'Mikey Factor' that could ruin or damage my business if I forget to do it. Is it insurance, a security system, labor regulations or building codes?
It takes a lot to make a business successful, but the smallest details can make it fail.
One day, one of the lighting guys wasn’t feeling well and left the set early. At the end of the shooting day, word was sent out to the set from the production office that the call time for the following day was being moved up from 7 a.m. to 6 a.m., because the production had fallen behind schedule, but the lighting guy didn’t hear the announcement because he had gone home early.
And you, as the Unit Manager, didn’t think of calling him at home to inform him of the scheduling change.
Ordinarily, that might not be a big deal, but this time, it was.
Because -the next morning, as the convoy of production vehicles was pulling out of the television station to make its way to the set – a small town about an hour north of the station –the huge lighting truck remained in place - and a bolt of white hot terror ran from the top of your head down to your toes, as you realized that the driver of the lighting truck was still in bed, because you hadn’t thought to call him to tell him about the change in call time.
Soon there would be 40 people standing around on the set while the lighting crew was waiting for the truck to arrive so that they could set up for the first scene– and whatever time they had hoped to pick up by virtue of the earlier call time would be entirely lost.
So you got into the truck yourself - and without a license to drive a rig that big or any idea of where the gears were – you willed the vehicle to the set – sweat pouring down your face –and you never forgot how that felt, for the rest of your career in television production – or the rest of your life.
The fellow whom I forgot to call was named Mike, and everyone called him "Mikey".
Forgetting to call "Mikey" almost ended my career in television production before it began.
But the lesson that I learned stayed with me -and so, when I was developing my small business, which was a spa for men, I made a list of everything that I felt could go wrong - every single small detail that I could think of - that had the power to ruin my business.
And I checked that list every single day.
If you are developing a small business, or if you are already running one, ask yourself "What is the 'Mikey Factor' that could ruin or damage my business if I forget to do it. Is it insurance, a security system, labor regulations or building codes?
It takes a lot to make a business successful, but the smallest details can make it fail.
Saturday, July 18, 2009
The Top of One Mountain is the Bottom of Another
When I was developing my small business, which was a spa for men, I learned a very valuable lesson, although I did not realize it at the time.
It was November of 2004, and I had just returned from a trip to Vancouver, during which I had made a presentation to two prospective investors - and, subsequent to the presentation, they agreed to provide the bulk of the financing for my small business. The following day, we had a meeting and we all shook hands on the basic terms of an agreement to go forward. When I returned home to Toronto, I felt as if I were sitting on top of a mountain, until I realized that I was at the bottom of another one. Here is a brief excerpt from my book:
It is Saturday -the day after your triumphant return from Vancouver – and for the moment, you are sitting on top of the world.
For a brief moment.
Because - you don't actually have the money for your dream business -not yet.
You have an agreement in principle. You don't have a signed agreement. And you won't get the money until you do.
And - while you are on the subject of what you don't have -yet - you may as well include: a location, a designer, a contractor, a product line, a bank account, a line of credit, a Small Business Loan, a website, a software program, a security system, a telephone, a staff, a logo, a marketing plan, marketing materials…. and, you have promised your investors that your dream business will launch in June, 2005- exactly seven months from now.
What I did not know at the time, was that the very lesson that I was learning in the development phase of my small business would apply once the business opened. Every time I thought that I had climbed a mountain -by having the best day, the best week or the best month - I would find that I was at the bottom of another mountain - facing the worst day, the worst week or the worst month.
One of the most important - and painful -lessons that I learned in running my small business is that every single day you are at the bottom of another mountain.
If you accept that, you may be able to enjoy the climb.
Friday, July 17, 2009
Make Sure People Can Get To You If You Are the One Who Gets It
If you have read my book entitled "Don't Let Your Dream Business Turn Into a Nightmare", then you know that I started a small business and ran it for two and half years before I had a falling out with my investors that turned my dream business into a nightmare.
You may not know that, in addition to promoting my book with a kind of evangelical zeal in hopes of helping other would-be entrepreneurs avoid the heartbreaking experience that I had, I also create marketing and communications tools for businesses through another company which I founded. In this latter capacity, I often contact companies -either by phone or email - to introduce myself and to pitch them on the marketing and communications services that I can provide.
Now - when I call up a company to pitch them on an idea which I believe can help them sell more of their products or services, of course I am trying to build my own business, but I am also trying to help them build their business. And, if I didn't think I could help them, I really wouldn't be wasting my time or theirs.
A couple of weeks ago, I called up a company that sells products online, with an idea that I felt could really help them sell more of their products. Have you ever tried to contact a large online retailer to see if you can speak to someone in the marketing department? If you have, then you know what I'm talking about.
However, I persevered, and was finally connected to someone in the marketing department who agreed to take a couple of minutes to listen to my idea. I succinctly explained the service that I could provide, and how I felt that it could help them sell their products online. The person to whom I was speaking expressed interest and requested that I submit a proposal in writing, which I did, promptly.
Yesterday I called back to follow-up on the proposal, which was submitted via email, as requested, to see if it had been received and to check on the status. This time, I was unable to get through to the person who had requested that I submit the proposal. I was told that she was not going to take my call unless I was one of their existing clients - "No, no, I explained to the person on switchboard, I am not a client, I am calling to follow-up on a proposal that I submitted at your request." "Well, she's not going to take your call" was the response, and what was not stated but implied, "Take a hike".
Now, let's just say that my idea is a really good one. I can tell you that it is because I adapted it from one of my mentors who happens to be one of the real gurus of internet marketing.
Let's just say that my idea (his idea, really) would help this company sell more of their products online.
What if I never call back because I was treated so rudely by someone who doesn't own the company?
When I ran my small business - one of the first spas for men in the world - I did not answer every phone call that came in. I had a staff of young gals who provided services in the spa, and they took turns answering the phone. But I made sure that everyone who called in with some kind of marketing idea - something that might just help my business - got a return call from me.
Why? - because I understood that a great marketing idea could come from anywhere - and that as the founder of the business I could not afford to miss out on a great idea by having someone who didn't get it dismiss it out of hand.
If anyone was going to reject an idea that could help me grow my business, it was going to be me.
If you are the one who gets it in your small business, make sure that people with good ideas can get to you. Otherwise, you may be missing out on a really good idea from someone like me.
You may not know that, in addition to promoting my book with a kind of evangelical zeal in hopes of helping other would-be entrepreneurs avoid the heartbreaking experience that I had, I also create marketing and communications tools for businesses through another company which I founded. In this latter capacity, I often contact companies -either by phone or email - to introduce myself and to pitch them on the marketing and communications services that I can provide.
Now - when I call up a company to pitch them on an idea which I believe can help them sell more of their products or services, of course I am trying to build my own business, but I am also trying to help them build their business. And, if I didn't think I could help them, I really wouldn't be wasting my time or theirs.
A couple of weeks ago, I called up a company that sells products online, with an idea that I felt could really help them sell more of their products. Have you ever tried to contact a large online retailer to see if you can speak to someone in the marketing department? If you have, then you know what I'm talking about.
However, I persevered, and was finally connected to someone in the marketing department who agreed to take a couple of minutes to listen to my idea. I succinctly explained the service that I could provide, and how I felt that it could help them sell their products online. The person to whom I was speaking expressed interest and requested that I submit a proposal in writing, which I did, promptly.
Yesterday I called back to follow-up on the proposal, which was submitted via email, as requested, to see if it had been received and to check on the status. This time, I was unable to get through to the person who had requested that I submit the proposal. I was told that she was not going to take my call unless I was one of their existing clients - "No, no, I explained to the person on switchboard, I am not a client, I am calling to follow-up on a proposal that I submitted at your request." "Well, she's not going to take your call" was the response, and what was not stated but implied, "Take a hike".
Now, let's just say that my idea is a really good one. I can tell you that it is because I adapted it from one of my mentors who happens to be one of the real gurus of internet marketing.
Let's just say that my idea (his idea, really) would help this company sell more of their products online.
What if I never call back because I was treated so rudely by someone who doesn't own the company?
When I ran my small business - one of the first spas for men in the world - I did not answer every phone call that came in. I had a staff of young gals who provided services in the spa, and they took turns answering the phone. But I made sure that everyone who called in with some kind of marketing idea - something that might just help my business - got a return call from me.
Why? - because I understood that a great marketing idea could come from anywhere - and that as the founder of the business I could not afford to miss out on a great idea by having someone who didn't get it dismiss it out of hand.
If anyone was going to reject an idea that could help me grow my business, it was going to be me.
If you are the one who gets it in your small business, make sure that people with good ideas can get to you. Otherwise, you may be missing out on a really good idea from someone like me.
Thursday, July 16, 2009
There is No Such Thing As Dumb Money, Only Dumb Investors
Let's say you have an idea for a small business, but you don't have enough of your own money to get it off the ground.
If you are really determined to start your small business, and you really believe that it is going to be successful, then the next step would be to try to borrow money from a bank and/or raise money from investors.
If you decide to raise money from investors - and they could be people you know, or people you don't know - you will ask yourself, how much do money do I need, when do I need it, and what am I prepared to give up for it, among other questions.
But, perhaps, by now, you have heard the popular distinction between "smart money" and "dumb money", and you are wondering, how will I know the difference.
I think that all money has the same I.Q.
It's the investors who can be smart or dumb.
Here are three chracteristics of a "smart" investor for your small business:
1) a smart investor totally understands the concept and the mission of your business
2) a smart investor respects and shares your passion and commitment to your small business
3) a smart investor knows that it takes 3-5 years to build a small business into profitability
And a dumb investor?
1) a dumb investor invests money in your small business without understanding your concept or mission
2) a dumb investor has no passion or commitment to your small business and will abandon it at the first sign of trouble
3) a dumb investor thinks he or she knows how to run your small business better than you do, without any experience in that business
I don't believe that there is any such thing as "dumb" money. But a "dumb" investor can turn your dream business into a nightmare.
If you are really determined to start your small business, and you really believe that it is going to be successful, then the next step would be to try to borrow money from a bank and/or raise money from investors.
If you decide to raise money from investors - and they could be people you know, or people you don't know - you will ask yourself, how much do money do I need, when do I need it, and what am I prepared to give up for it, among other questions.
But, perhaps, by now, you have heard the popular distinction between "smart money" and "dumb money", and you are wondering, how will I know the difference.
I think that all money has the same I.Q.
It's the investors who can be smart or dumb.
Here are three chracteristics of a "smart" investor for your small business:
1) a smart investor totally understands the concept and the mission of your business
2) a smart investor respects and shares your passion and commitment to your small business
3) a smart investor knows that it takes 3-5 years to build a small business into profitability
And a dumb investor?
1) a dumb investor invests money in your small business without understanding your concept or mission
2) a dumb investor has no passion or commitment to your small business and will abandon it at the first sign of trouble
3) a dumb investor thinks he or she knows how to run your small business better than you do, without any experience in that business
I don't believe that there is any such thing as "dumb" money. But a "dumb" investor can turn your dream business into a nightmare.
Wednesday, July 15, 2009
What drives you?
In the summer of 2004, when I was developing the business plan for my "dream business" - which was one of the first spas in the world for men - I was out for dinner with a friend and his wife. I told them about my plan for a business which would offer personal care services exclusively for men, designed to help them look and feel their best. My friend's wife replied that she had just heard about a new idea for a fast food restaurant - offering cheese steaks. "Why wouldn't you start a business like that?", she asked. "Because I'm trying to help people", I answered, "not kill them."
Okay - this is not about the health benefits or lack thereof of a fast food repast consisting of steak and cheese - it is to say that if you have a personal mission - a passion, if you will - to help men look and feel their best, you are not likely to be start up fast food restaurant - or, at least I didn't. I started a spa for men.
So, right from the start - the very beginning - I was driven by passion. And I continued to be - every single day. And I tried - every single day - to instill the passion that I had to help men look and feel their best into my staff - to ensure that a visit to my spa was the best part of every client's day.
If you are not driven by passion in your business - what are you driven by? The money? If so, how long will you stick with it? How will you get through the tough times - because there will be tough tmes. If its just about the money - and there are lots of other businesses you could start to make money - how quickly will your business have to develop to keep you interested and motivated?
Passion was my motivation. If I had been motivated simply by money, I'd have needed to be in a business that developed a lot more quickly - but what business does that? Cheese steaks? Well, maybe.
I believe that many, if not most of the iconic businesses of the world are driven by a passionate belief in the value of the product or service being offered. Behind many of the most successful companies, there is a passionate, visionary entrepreneur - not someone simply looking for the fastest, safest buck.
If you have an idea for a business that you are really passionate about - your passion will likely be what sustains you.
Unless you make the mistake of bringing people into your business who don't share your passion.
Okay - this is not about the health benefits or lack thereof of a fast food repast consisting of steak and cheese - it is to say that if you have a personal mission - a passion, if you will - to help men look and feel their best, you are not likely to be start up fast food restaurant - or, at least I didn't. I started a spa for men.
So, right from the start - the very beginning - I was driven by passion. And I continued to be - every single day. And I tried - every single day - to instill the passion that I had to help men look and feel their best into my staff - to ensure that a visit to my spa was the best part of every client's day.
If you are not driven by passion in your business - what are you driven by? The money? If so, how long will you stick with it? How will you get through the tough times - because there will be tough tmes. If its just about the money - and there are lots of other businesses you could start to make money - how quickly will your business have to develop to keep you interested and motivated?
Passion was my motivation. If I had been motivated simply by money, I'd have needed to be in a business that developed a lot more quickly - but what business does that? Cheese steaks? Well, maybe.
I believe that many, if not most of the iconic businesses of the world are driven by a passionate belief in the value of the product or service being offered. Behind many of the most successful companies, there is a passionate, visionary entrepreneur - not someone simply looking for the fastest, safest buck.
If you have an idea for a business that you are really passionate about - your passion will likely be what sustains you.
Unless you make the mistake of bringing people into your business who don't share your passion.
Tuesday, July 14, 2009
Is it B.P. or B.S.
In my book, entitled "Don't Let Your Dream Business Turn Into a Nightmare", I describe in rather excruciating detail what I went through as an aspiring first-time small business owner with an idea for a dream business but no experience running a small business and no idea how to write a business plan.
At the time - the summer of 2004 - I actually believed that there were people out there who knew how to project the revenues for my "dream business" - which was a spa for men - even though the concept was virtually untried - only a small handful of spas for men existed in the world at the time that I was developing The Men's PowerSpa, and none of them was really very similar to my concept.
Nonetheless, I believed that the accountants, lawyers, business consultants and M.B.A.'s that I hired at various stages in the process could actually prepare an accurate set of pro formas.
And, as it turned out, I staked my business on it because the "financials" in the B.P. created expectations that the business had to live up to.
If you are an aspiring first-time small business owner and you intend to raise money from investors to get your small business off the ground, you will need a Business Plan, or a B.P. Study it very carefully - your business and your life may hinge on its accuracy. If it turns out to be more B.S. than B.P., you will have a nightmare on your hands.
Been there. Done that.
At the time - the summer of 2004 - I actually believed that there were people out there who knew how to project the revenues for my "dream business" - which was a spa for men - even though the concept was virtually untried - only a small handful of spas for men existed in the world at the time that I was developing The Men's PowerSpa, and none of them was really very similar to my concept.
Nonetheless, I believed that the accountants, lawyers, business consultants and M.B.A.'s that I hired at various stages in the process could actually prepare an accurate set of pro formas.
And, as it turned out, I staked my business on it because the "financials" in the B.P. created expectations that the business had to live up to.
If you are an aspiring first-time small business owner and you intend to raise money from investors to get your small business off the ground, you will need a Business Plan, or a B.P. Study it very carefully - your business and your life may hinge on its accuracy. If it turns out to be more B.S. than B.P., you will have a nightmare on your hands.
Been there. Done that.
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