Entrepreneurship 101: Part 1

Did you know that according to the Small Business Administration (SBA), more than half of all businesses actually fail within their first five years? There are many reasons for this, but one in particular takes out more businesses than a tornado in a trailer park...

"The But I Can Cook Syndrome”

For instance, just because Aunt Betty told you that you make the best cherry pie in the world, doesn’t mean you know how to run a bakery. Or you’ve got a killer meatloaf recipe. Great! But that doesn’t mean you know the first thing about how to maintain food cost.

Or you love motorcycles. You know everything about them. Heck, you could tear down one to its frame and rebuild it with your eyes closed. Does that mean you know how to conduct market analysis? You understand business logistics and operations? You can read an income statement or balance sheet? Of course not.

So many businesses essentially fail because the person thinks because they are good at a particular thing, they will necessarily be a good business owner. As they say here in the South: it just t’aint so.

In honor of the new year, I thought I might launch a regular series of “lectures” that provide useful tips and ideas for entrepreneurs like yourself. These will be more general business tools, not just specific to WA or even the internet, but something you can take with you regardless of what form of business you decide to create.

“Hey, Buddy! What’s the Big Idea?”

What comes to mind when you think of a great business idea? Does it bring thoughts of Bill Gates? Steve Jobs? Walt Disney? Sure, these guys all had a “big” idea and went on to create billion dollar companies. But you know what else? Each one of them started in a garage, basement, or spare bedroom… perhaps just like you. The point is that anyone can come up with an idea as big as theirs if he or she is willing to take to the time to learn the right skills. And that is what I wish to share with you in this series. So let's get going with lesson one...

“How to Think Like an Entrepreneur”

When most people come across a problem, they simply complain. “This doesn’t…” “That thing won’t…” “Why can’t I…?” On and on.

Entrepreneurs, on the other hand, are different. We don’t see problems as a negative. No, sir. For us, a problem is an opportunity. Because here is the biggest secret to thinking like an entrepreneur: find what’s missing and then go out and create it. The absolute best way to discover that big idea is to solve problems and improve other people’s lives.

“Here’s Your Assignment…”

I’ve always been a big fan of Mission Impossible (the television show… not so much the Tom Cruise films.) And I love that line, “Here’s your assignment, should you choose to accept it.”

So, should you choose to accept it, here is your assignment if you wish to follow me on this entrepreneur’s journey. For the next week or so, I want you to pay attention to the little things. Try and notice a problem you might be having, or a frustration you might be feeling.

Next, whatever that problem or feeling is, write it down. Keep track of all of your thoughts and feelings. Here’s why: I am willing to bet that if you have a problem, or you are experiencing some form of frustration, there are hundreds—if not thousands—of people out there experiencing that very same thing!

“That’s It, But There Is More to Come”

That’s all for now. Easy, right? Don’t worry about the rest. Remember, you eat an elephant one bite at a time. You don’t shove the whole thing in your mouth at once. Same here. For now, just pay attention and record your discoveries. Next time we will go over how to take those discoveries, develop possible solutions, and then match them up with potential customers.

Until next time, please post your thoughts and comments below. Also, if you so desire, go ahead and post a few of your discoveries as well. It will be interesting to see how many of us share the same troubles :-)