The 10 Rules of Successful Entrepreneurship (Part 3 of 3 part series)

Continued from the previous post…

8.  Learn to sell – this is a must-have skillset, whether you have someone in charge of sales or not…  The good news, even if you’re not born with the gift of gap, you can become better by continually getting in front of prospects and practicing your pitch.  While I do not believe in entrepreneurs pitching vaporware but if you don’t believe in your products and services, it’s impossible to convince others to believe in them (you can read between the lines)…

9.  Redefine failure – when you have your own business, often the highs are so high and the lows are so low.  But even on their gloomiest days, successful entrepreneurs feel a compulsion to make sure that failure isn’t the end of their story.  It’s OK to fall down nine times, just make sure that you get back up the 10^th time.

10.  Don’t be in it just for the money – a tricky statement¸ since most entrepreneurs I know are red-blooded capitalists like me.  But as an old saying goes, money is a great motivator, not an end-all be-all.  Successful entrepreneurs are driven by desire to accomplish meaningful things while embracing it as a way of life.  Jobs once asked Sculley (back then a senior exec at Pepsi) when trying to convince him to join Apple, “do you want to spend the rest of your life selling sugar water or change the world?”  Sculley came on board as the CEO of Apple (only to get fired later but that’s for another post).

While writing this 3-part post, I found myself reflecting on my own current endeavors.  Am I following the rules myself and doing everything I can to ensure their success?  What’s your answer?

The 10 Rules of Successful Entrepreneurship (Part 2 of 3 part series)

Continued from the previous post…

4.  Pick founding teams with a history of working well together – complementary skill-set, respect for each other and egos-checked-at-the-door are some of the key factors.  At PARR, Reggie (technology), Paul (legal) and I (finance) complement each other.  At SMG, Jason (strategy) and I (implementation) have let’s get the work done regardless of who gets the credit (and distributions for that matter) attitude.  It’s very rare that one person brings everything to the table when starting a company.

5.  Having said that, realize that you play the most important role – even with co-founders and teams that work well together, one person has to be the visionary, the driver and “more equal” than others.  Who wrote the business plan?  Who put the most stake on the table in starting the outfit?  In a perfect scenario – partners push and pull each other as this is a heavy burden to carry for just one partner, e.g. take turns wearing this hat.

6.  Manage risk – there are options to what I call (borrowing trader’s term) naked butterfly spread or jumping out of a plane without a chute, such as raising capital, inking pre-launch deals with customers or not quitting your day job.  See if you can get to a point launching a company feels as risky as working for someone else.

7.  Commit learning – especially management skills.  Most will admit that it takes different skillset to start a company than it does to lead 100 employees strong mature organization.  Read a book, hire executive coaches, solicit 360 degree feedback, subscribe to SMBMatters (ha!) – whatever it takes to continue to grow as a manager and a leader, do it.

To be continued…

The 10 Rules of Successful Entrepreneurship (Part 1 of 3 part series)

Many household names in the corporate world got their start during economic downturn.  In 2009 at the depth of the worst business climate in decades, Americans started nearly 7MM new businesses.  Most of them will fail, but some will succeed.  Bill Murphy Jr., author of The Intelligent Entrepreneur, wrote about the 10 rules of entrepreneur success.  As simple as they sound, there’s lots of wisdom in these rules…

1. Commit to entrepreneurship, rather than a specific business – being an entrepreneur is a lifelong decision.  And such commitment helps entrepreneurs stay flexible and react nimbly to market feedback.  My first company, RJSL Group, started out as a shipping container import business for automotive industry but turned into a CFO staffing shop.
2. Look for market opportunities before creating business solutions – don’t decide on products and services first then set out to convince the market to buy what you are selling.  You will be left out wondering why sales are flat.  Rather, use your expertise to first understand potential customers’ needs.
3. Focus on innovation and scale – most businesses are launched in unattractive, static fields and offer no competitive advantage.  The founders only employ themselves, cannot articulate growth plans and generate subpar topline.  The successful ones combine deep knowledge of customer needs with a commitment to achieve outsized goals.

Tidbits 18 – Product Review: Patron XO Cafe Dark Cocoa

As finance and accounting professional, this is probably the roughest time of the year with year-end closings, current year forecasting and other time-sensitive fiduciary compliance tasks that should have been completed yesterday.  So after another fun-filled week that entailed one all-nighter and butting heads with a former client who cannot understand why including expenses in 1099 is a wrong thing to do, I met with a friend for a TGIF suds at our favorite watering hole.  After a couple of Stellas however, we decided to switch gears.  The bartender recommended a drink that is less than a year old in the market when we requested an aperitif that’s not too sweet.  Patron XO Café Dark is essentially its flagship silver tequila with coffee and chocolate flavorings, and it certainly hit the spot.  It went down smooth without the usual agave aftertaste that even tequila diehards at times don’t necessarily care for…  Just as the bartender promised, sweet enough but not too sweet, which probably makes it little dangerous since the liqueur has the full alcohol content of normal tequila.  According to Patron’s corporate communications, 2012 sales have exceeded forecast by 20%, and it hopes to ship 50K nine-liter cases in 2013.  Its marketing director attributed the product’s success to carefully crafted tasting note targeted to specific band of consumers.  After a couple of shots (one on the house), I think Patron has developed a niche product that could occupy top shelf for years to come.    

FTIL 16 – Bhambi Laws

Once you’ve had a set of threads custom tailored, it’s hard to go back to the off-the-rack routine.  WSJ recently published an article on the finer points of alpha dressing where a banker had the inner pocket of his jacket precisely dimensioned to fit his choice of smart phone brand.  Little over the top if you ask me but you get the point…

One of the more respected establishments in North America for custom tailoring is Bhambi’s located on Manhattan’s Upper East Side.  For almost half a century, they’ve been dressing celebrities, CEOs and politicians.  When Watch! Published an article on the operations that a father and son team runs, I had to write about so called The 22 Bhambi Laws of men’s couture.

1. Know yourself.  Then get dressed.
2. Quality is just important as the fit.
3. A cheap suit fits no one.
4. Every man alive is too young to smoke a pipe.
5. A man looks better in a suit than anything else in his wardrobe.
6. Even Ned Beatty looks good in a black turtleneck sweater.
7. Act your age, not your collar size (not sure if I get this one).
8. Jacket sleeves are tailored so that half an inch of the shirt cuff shows when your arms are at your sides (I think this rule is somewhat regional).
9. Pants are cuffed so that no sock shows while you walk.

10. Your collar should complement your face.

11. Black shoes, black belt.  Brown shoes, brown belt (for extra style points, match belt buckle with band on your watch).

12. On jewelry: one ring.  One wristwatch.  You are done (cannot agree more).

13. One pair of top quality shoes is better than 10 cheap pairs.

14. Denim is for weekends.

15. That said, with a good white shirt, navy blazer and sharp pair of jeans, you can go just about anywhere.

16. Gray flannel pants are the navy blazer of cold weather.

17. A Crisp white dress shirt is the gray flannel pants of shirts.

18. The cheap suit is fused; the strong suit is stitched.

19. Just as important as the clothes; fresh haircut.

20. Your exterior side pockets remain sewn shut.

21. Unless you’re being financially compensated for it, wear no visible logos.

22. Business casual is no longer about Khakis.

There are lots of wisdom in these words…   Here’s to finer things in life.

Frustrating encounter with the USPS

Many of you don’t know me personally. While I write about buying islands and linen pants, I’m really a numbers guy.  I tend to lead and manage by the book (and as my partners claim, I keep them and the rest of the team in line). When I encounter a lack of process and transparency, my head spins. Such is the case with a recent order from Amazon that the United States Postal Service (USPS) managed to butcher.

Here’s my tale, with apologies in advance to hard working carriers out there, after placing an order with Amazon “delivered” by the USPS. The story starts with an online tracking effort via Amazon that shows USPS attempted to deliver the package on 11/16 and 11/17th and could not. Of course this is impossible since we have 24 hour doorman and receiving room in our apartment in downtown Chicago. Then USPS says they delivered it on the 19th but there is no sign of the package. With this information, I decide to stop by the main post office on Dearborn (downtown Chicago) on the 20th (Tuesday of Thanksgiving week) and ask to see the supervisor after the front desk clerks prove useless.  The USPS team then gives me an inside look. They send me to the loading dock in the back.  After talking to 2 or 3 mail carriers, finally I get hold of the supervisor (Mr. A) who says that he’s about to leave so come back tomorrow morning at 8AM.  I show up at the loading dock at 8AM on the 21st (day before Thanksgiving) only to find out that Mr. A did not show up for work – another carrier tells me to come back after Thanksgiving. I show up at the loading dock 8AM on the 26th (Monday after Thanksgiving) and another carrier tells me – I can’t make this up even if I wanted to — that Mr. A has retired.  By now, I’m livid based on the time wasted. I ask to see Mr. A’s replacement and a carrier sends me upstairs distribution area to see a supervisor named Mr. B. It is there that I learn that apparently I’m not supposed to upstairs under any circumstances due to Home Land Security concerns. Hence my walking through the distribution center unescorted (without a badge) ruffles some feathers. Regardless, Mr. B hears my story (he was actually trying to be helpful – even gave me his personal cell number) and tracks down a carrier named Mr. C who swears up and down that he has delivered the package to my building. Mr. B asks me to wait a week until they sort it out internally.  Well, I wait a week. And there’s still no package and my calls to USPS are not returned. By now, I am done with showing up at the dock at 8AM routine too. Enough.

I contact Amazon’s customer service this morning – an interesting process by the way because there is no 800 number given on the site, only after you plug in the order number and answer a bunch of questions, the site asks you to plug in your number and press either call me now or call me in 5 min button.  I press the “call me now” button and some lady from an Indian call center rings me exactly a second or two later.  I explain the story to her. She checks my accounts and sees that we have ordered an absolutely ton of stuff from Amazon the last 10 years (and have never had issues) and promptly offers next day delivery on replacement goods.  One call from Bangalore (Amazon): problem solved. Countless run-ins and phone calls with USPS: nothing. When interacting with USPS employees on US soil, I felt like I was talking to a wall.  Amazon on the other hand, leveraged technology and friendly, a low-cost Indian customer service center and solved the problem in 5 minutes, thus keeping me as a loyal customer at the end of the day.

Is it time to retire the USPS or can anyone fix this great institution of ours?

 

FTIL 15 – Buying your own island (Part 3 of 3 part series)

Leave it to Larry Ellison, the billionaire founder and CEO of Oracle, to make the news with trophy acquisitions – trimaran (and bankrolling the entire team) that won the America’s Cup; a fully functional fighter jet; Japanese-style personal estate in Northern California; etc.  While his recent endeavors to purchase a professional basketball team has hit a few snags, the Maui News reported that he has closed a deal to purchase 98% of Lanai for 500~600MM from an entity controlled by David Murdock (I actually had no idea that Lanai is privately owned until now…)   I guess 780 acre James Island for sale by the McCaw family is not splashy enough for the 3^rd richest person in the US.   Neil Abercrombie, the state’s governor commented, “it is my understanding that Mr. Ellison has had long standing interest in Lanai.  His passion for nature, particularly the ocean is well known specifically in the realm of America’s Cup sailing.”  Well, let’s just hope Ellison does not close down pineapple plantations in favor of real estate developments like Murdoch did…

Tidbits: On The Go, Here to Stay

Mobile Computing DevicesMobile computing is here to stay. It allows me to work either 3PM or 3AM, in the CST time zone (where we have an office) as well as HST time zone (where we also have an office).  It lets me, and other entrepreneurs, break the workday into smaller, more manageable chunks in lieu of plugging away for 8 straight hours, losing efficiency along the way… With the proliferation of business apps for smart phones and tablets, I have a few colleagues who will forego laptops completely when they travel for work. Below are a few interesting statistics on the reach of mobile devices according to Pew Research Center.

• Ownership – Android (35%, not surprising since there are so many makers and versions of Android phones); iPhone (24%); BB (24%); other (17%)
• 11% of adults own a tablet computer; 77% use it every day; and 54% use it to receive email
• 38% of adults download apps to their phones
• 25% of smart phone users use their device in lieu of desktop or laptop to go online (which is different from 87% of the same phone owners access the Internet with their phone and 68% do so daily)

Related Articles

• Tablets pushing other technology to evolve
• New Translation Aps for your Smart Phone
• David W: SUMO new Mobile design

FTIL #14, Going Organic – Produce: What, When & Where

When our son was born, my wife switched everything to organic – sugar, shampoo, milk, blankets, etc…  Yes, she bought organic cotton blankets for their soft, supple feel…   I am certainly not against buying organic food, but with the average cost of feeding a family of four exceeding $1K per month according to the USDA, is there any room to still economize while “going organic”?

Do we really need to buy everything organic when it comes to fresh produce?  Various public health advocacy organizations recommend buying the following twelve fruits and vegetables from the organic aisle, based on review of USDA’s pesticide data: apples, peaches, imported grapes, strawberries, imported nectarines, domestic blueberries (my son’s favorite), celery, potatoes, spinach, bell peppers, lettuce and collard greens.  When it comes to other fruits and vegetables such as watermelons and mushrooms, you are better off saving a few pennies.  But if spending a few extra bucks gives you a piece of mind for your family, I’d say go organic even for blankets.  Here’s to enjoying the finer (organic) things in life!

 

Related Articles

http://smbmatters.wordpress.com/2012/06/25/ftil-11-breath-of-fresh-air/

Putting On the Good Linens – FTIL #13

I love linen pants.  Stronger than cotton and guaranteed to wrinkle, it is the most perfect summer trouser for men when neither shorts nor jeans fit the social agenda and khakis and dress slacks appear to be over-done.  I’d wear linen all year long if I could – well, maybe except for during Chicago winters…  Spun and woven from the fiber of the flax plant, linen is one of the oldest textiles made (ancient Egyptians dressed their nobility and wrapped their mummies in it) and seemingly has never gone out of style…   And it is making a splash of recent with new color palette, straying away (successfully I might add) from the usual white and beige standards that hang in my closet.  Look for a full spectrum of color offerings, as well as a choice of textures.  Some of my favorites: orange sherbet pastel from Zegna; light navy blue tint from Canali; and Brooks Brothers linen pleats.

Here’s to staying cool and looking good while you do it!