Want to really focus your team and get amazing results?

Set a really big goal and then form a Catalyzing Statement around this goal.

Catalyzing statements hook people emotionally and are the driver that propels individuals towards a challenging goal.

About a month ago I heard  Rick Sapio give several examples.   I would like to share his and then give a fun one that I ran across in Japan this week.

Fed Ex – When It Absolutely Positively Has To Be There Overnight —  If you want a GREAT laugh, watch this FedEx Commercial
Microsoft Bill Gates – I picture a world with a PC  on every desktop and in every home – 1975
President Kennedy – We will put a man on the moon and return him safely to earth before the end of the century.

These catalyzing statements go FAR beyond placing a goal. They emotionally charge us and align us. They emotionally allow us to seek and believe and go forward.

A good example of this is Bill Gates. Prior to making the  unifying statement the goal was clearly set to have Microsoft be the largest software company in the world. Great goal, but where is the emotion and the emotional buy in.  It came when he stated  ” I picture a world with a PC on every desk and in every home.” That inspired us, we visualized this and indeed it enabled the goal.

This past week I have been in Asia. I was able to spend a bit of time in Japan and visited a company in Tokyo called Fujita. From the instant I entered this business I knew it was different. The tone, the conduct of the staff, and the presentation of the board room was simply different. They were focused and clearly were on a mission.  There was not the usual motion that I frequently experience in Japan.   Indeed the meeting I had was successful and at the end of the communication I could not help but poke a bit. I asked the individual I was meeting with to explain more about the company, the founder, and the history. His answer gave it all away. With out a second of hesitation here was his response:

“Fujita’s vision is to bring American culture to Japan”.

Wow, now that is powerful.  That is a hairy, big, audacious, and crazy goal.   “Bring American culture to Japan!”

You see they are not in the hamburger or movie business.  They are not selling clothing. They are not in the import / export business. Those things are simply vehicles.

They are going to change Japan from eating sushi to Big Macs, and guess what…they did.

What I did not tell you earlier is Fujita’s founder  Den Fujita is responsible for bringing McDonalds to Japan. He was also responsible for bringing Toys R Us and BlockBuster to Japan.

As I have considered this, I realized that this type of statement not only motivates us and inspires us, but also allows the company to change and extract us from the weeds when necessary.

Next time you set a big goal, create a catalyzing statement!   Hang on because it will rock your world with what happens if done properly.

In 1989 I helped make my first $2MM business mistake.  I keep this box on my life-trophy shelf to remind me never to make this mistake again.

So what was it we did?

Rich Christiansen $2MM Channel Lesson

We did what so many eager engineering types do–we built a way cool, exciting,  leading-edge technology (digital power line transmission) and then tried to sell it.

We just knew the customers would buy these by the bucket loads.  We would go to the trade shows and got mobbed, so certainly this was going to be a barn burner. Everyone told us we were so smart and this was the coooooolest technology ever.

NOT! Cool technology does not necessarily mean purchasing customers. In 1990 the company went belly up!

I would rather have purchasing customers and profit than some cool little box sitting on my shelf reminding me not to be stupid again.

Better to sell it first and build it second, than to build it first and then try to sell it.

Today I did a BootStrap Business lecture at an Entrepreneurial Launch Pad event.

I love meeting with eager individuals who are on those tender first steps of venturing out into the brave cold and exciting world of creating a business.   However, there is one thing that makes me want to scream every time I see it and indeed I saw it today.

Make sure someone is going to buy it before you build it.

Its All about the channel!

Build It and they will come…NOT!

Save yourself a couple of million $ and let my box be the reminder. Don’t build your own.

Once you’ve got your great business idea and you’re on your way, is all done?  Not so fast, says Rich; be prepared to zigzag through your journey as an entrepreneur. 

Entrepreneurship often requires you to take detours and make new plans. I have gone through this process many times. At first, I felt dismay and confusion, but found that those feelings quickly changed to delight and confidence.

When I worked at Novell I met three individuals who took detours to their ultimate success; Jan Newman, the vice-president of Worldwide Services; J.D. Brisk, a director at Novell Labs; and Kevin Turpin, a senior software engineer. They were all Novell lifers who became disenchanted with the direction the company was taking and who decided to set off on their own. Each of them had worked with Novell labs and saw a tremendous opportunity for an Independent lab that could work with Novell, Microsoft, Sun and others. In keeping with the mark of true entrepreneurs—they responded to a need and opportunity and created KeyLabs.

Kevin wrote a piece of software that made it possible for him to sit at one station and run tests on thousands of computers at a time. Customers were amazed at the new feature and wanted it for their own use. All of a sudden, there was great demand, not only for their service but for their software! Two of the partners moved on to manage the new venture, leaving the other to keep the lab running. KeyLabs was fruitfully sold to a corporation called Exodus, and their new software business, Altiris, went public. It was the top-performing stock on Wall Street in 2005. Jan, J.D., and Kevin couldn’t have predicted where they would end up when they left Novell, but they kept their eyes open and were ready to zig and zag forward with each new opportunity. Their huge success was due in large part to their willingness to embrace the journey, with detours, starts and stops along the way.

Starting a business with limited financial resources requires you to chase cash immediately. Rarely are you able to chase your ultimate goal directly. You have to zigzag back and forth toward your ultimate destination, step-laddering the opportunities bit-by-bit as you go. This is actually a very good thing. It slows you down and allows you to trip into all sorts of great little opportunities and nuggets of gold. From my experience, you end up building your successful business on a concept completely different from where you initially set out.

When I was in college, my wife and I mapped out our ultimate career destination. We thought that the ideal job would be to go to Seattle and work for Boeing. There is no ink bold enough to emphasis how grateful I am that my original life plan did not come to fruition. My life has been full of rich and vibrant opportunities due to the zigging and zagging I have done.

You must have a dual mindset. On the one hand, you have to emphasize a “never say die,” “work ‘til you drop,” “do it or die” devotion to your venture. And then on the other, with the speed of a changing market, you have to be willing to jump ship and sail off in a new custom vessel, letting your old venture sink into the water.

Porter’s Points – How Did I Get Here?

·         Create your map to success and use it…just know that detours may take you to a place even better than the original destination.

·         Realize that markets change, and, as a result, you may need to change too. Do you need to tweak a few small things in order to take advantage of the change, or do you need to create a new venture to catch the forming wave?

·         No knee-jerk reactions here. Analyze and act.

That does it for Chapter 2: Juice to the Light Bulb!  Next week we’ll dive into Chapter 3: Power Tools.

Entrepreneurs often get excited to start a business because they know how profitable it can be.  Rich encourages having a higher purpose than creating wealth, though, when approaching a new business venture.

At this stage in my life I frequently find myself asking “Is what I am doing making a difference?” In 2003, as I left the corporate world, I recall I had a strong drive to do something that mattered. I wanted to conduct business in a humane and ethical manner. I am still the same. The approaches I use to get the win are as important as getting the win.

Why make millions of dollars in “flim-flam” scams or fly-by-night businesses? The victory is hollow, and the loss of your self-esteem and integrity is way too high a price to pay.

So what does all of this have to do with generating ideas? At one point in my career, I had a partner who was one of the most philanthropic individuals I have been associated with. Coincidentally—or not—he is also one of the best idea people I have ever met. One of his fundamental beliefs that I have also adopted and grown to love is the concept of “putting positive ions into the universe”: as you make positive contributions to the world around you, ideas and opportunities will naturally return.

He was one of the founders of Unitis. Unitis’s mission is to fight global poverty by increasing access to microfinance. He believes that as he puts good into the world, the good will return to him exponentially. I have seen this work for him on a personal and professional level. It never ceases to amaze me how just the right concept, just the right solution, or just the right idea will gravitate to him, completely unsolicited. I attribute this to his living the principle of a higher purpose. I’ll be the first to admit I have absolutely no idea how this principle works. But I know it does. I attribute many of my fortunate coincidences in business to this principle and to my aforementioned Higher Power.

I have also found that when things get really, really tough, having a purpose greater than money can provide intense fortitude. Shallow goals provide shallow support. Goals with depth, on the other hand, will give you a long-lasting well of strength and determination to draw from when times get tough.

Over the past several years, I have become fixated on helping young women in third world countries (specifically, Nepal) break the bonds of abuse and oppression. This is a goal so much greater than me, and I have struggled at times to even know where to start. As part of my efforts, I have set up an educational model and structure that has proven very powerful with my daughter Nawang, who is from Nepal. Bit by bit I have worked, built, and dreamed about the impact that I might have there. It has required me to be creative and use non-traditional approaches. The project consumes me. It motivates and inspires me. It is indeed my higher purpose. What is yours?

Porter’s Points—A Higher Purpose

·         Decide now that it is important to contribute to the greater good, to a higher purpose than building your bank account.

·         Create your plan and get started. Make it a priority. Do it now.

·         Read a biography of someone you admire and take note of the steps he or she took to find higher purpose.

Tomorrow we’ll finish out Chapter 2: Juice to the Light Bulb!

Today Rich continues to describe the positive results that inspiration and spiritual enlightenment can give an entrepreneur.

Don’t underestimate the power of spiritual energy and insight in helping you complete your tasks. Praying, meditating, and pondering are powerful tools to be used when you are attempting to determine viable business ideas. Once you have an idea that has merit, confirm that feeling with your Supreme Being, your Tao. When you start focusing and seeking help in this manner, you will be amazed at what comes your way. You may think it coincidental, but I prefer to call it Providential.

Inspiration has to be sought for. It may not come immediately, but it will come. The answer might not be what you expect or even perhaps what you would have chosen. But in my experience, it’s always been better than anything I could have planned for myself.

Sometimes, clarity of focus has come to me when I have been lying down to go to bed. Other times, it has come early in the morning hours after I have had a restful night’s sleep. I have found that it is wise for me to keep a paper and a pen by my bed so that I can write ideas down as they come. Aside from having trouble in deciphering my handwriting the next day, the system works. Another place I get inspiration and ideas is in a warm, soothing shower. Sometimes I find myself dripping across the room to my paper and pen to jot the idea down before I forget it.

Don’t put a solid line of demarcation between what you believe and your business ventures. It may not be a popular technique, or at least one not openly talked about, but I find that if I take the most important parts of my life—family, faith, entrepreneurship—and let them influence each other, I’m more receptive to good ideas, wherever they may come from. Whether you have spiritual roots or not, I encourage you to test the power of pondering and prayer.

Porter’s Points—A.S.K.

·         Don’t be afraid to include your own spiritual beliefs in the full circle of your life.

·         Whatever your source of Divine Inspiration, tap into it!

·         Recognize the pattern of when and how your inspiration comes. Doing so (a) creates the space required to hear it and feel it and (b) provides opportunity to record it and act upon it.

Not only is it helpful to seek inspiration when evaluating business ideas, you will also find it valuable to have a higher purpose in mind for your business than making millions.  We’ll talk more about that tomorrow!

What do you do when the business ideas start to flow and you need to make a decision about starting a business?  Rich shares what he does to help decide between different alternatives:

I pray daily. I am a Christian, but I count Jews, Buddhists, and Hindus among my dearest friends and associates. I also have personal and important relationships with people who do not believe in a Higher Power but instead place their beliefs and faith in ethics and humanity. I have taken great effort to study and attempt to understand each of these belief systems and have concluded that although we each address God or our Higher Power in a slightly different manner, the concept of prayer is the same. In each case, we respectfully request help, blessings, and inspiration from above.

One of my most highly valued moments in my life occurred in the Himalayas where I had an audience with the famous High Lama of Pangboche, the Gashilay. I had spent much of the year before studying and learning as much as I could about Buddhism. Sherpa climbers request blessings from the High Lama before attempting summit bids on Mt. Everest and the other 8,000-meter peaks in Nepal, and my climbing experience provided me with an introduction to the High Lama.

On the day we met, we had a lengthy conversation regarding our beliefs. Our time together was engaging and respectful, and before I left the monastery I was honored to receive a blessing from this Lama. After receiving my blessing, I asked if I could share a prayer with him. He agreed, and I prayed and asked God to bless him in return. When I stood, there were tears in both our eyes. Although very different prayers were offered that day, the intent and I believe the end result—enlightenment—was the same.

Most world religions have a tradition of prayer or meditation. The acronym ASK in traditional Christianity provides an effective model, no matter your spiritual beliefs. Ask and expect to receive an answer. Seek and expect to find a way. Knock and expect doors to open for you.

What should you ask for? Well, honestly, that’s up to you. In the 1500s, Ignatius of Loyola, founder of the Jesuit order, taught a procedure for decision-making. First, you must take time to meditate on the choice you have made or will make. Then, you must ask yourself: do you feel positive, energetic feelings, or stressful anxiety? Ignatius called these feelings “consolation and desolation.”[1] I call them confirmation or confusion. Feelings of confirmation urge you to move forward, knowing that you are in harmony with the Divine Will. Confused feelings are a warning to back off. Similar concepts are found in Buddhism, Taoism, Islam, Sikhism, and many other religious traditions.

One of my favorite examples on this topic is a story told about Gandhi. On one exceptionally busy morning, with many crucial tasks ahead, Gandhi made the following statement: “Today is such an important day. We have so much to do today; we must take an extra hour to pray.” (Attributed to Mahatma Gandhi. A similar quote attributed to Martin Luther may be another source: “…In fact, I have so much to do that I shall spend the first three hours in prayer.”)

We’ll finish out Rich’s thoughts on ASKing tomorrow. 

Today we get words of caution from Rich about mixing business and pleasure – not always a bad thing, but certainly something to approach carefully. 

Do any of your hobbies or pastimes match, support, or wrap around any of your venture ideas? If yes, they are worth a closer look. In this section, I want to simultaneously warn you and encourage you. Building a business around something you’re passionate about can be fun and fulfilling. It can also be torture. Before you turn your hobby into your livelihood, make sure to ask yourself these three important questions:

1. Is this activity your release valve or primary escape?
2. Would doing it full time cause conflict with your significant other?
3. Will working in this field undermine your interest in your normal recreational activities?

If you answered yes to any of these questions, you may want to be wary about transforming your favorite hobby into your entrepreneurial venture. Maybe golfing helps you relax and adds invigorating downtime to your schedule. But how will it affect your nerves if all of a sudden you are not only working on your swing, but watching your business go up and down at the same time?

In the year 2000, Abi Hunter, a member of one of the technology teams I was leading, came to me expressing interest in starting a business together. I had tremendous confidence in her abilities and half-jokingly stated, “Great! As long as it deals with my passion for golf or mountain climbing, I’m in!” Sometime later Abi returned with a bootstrap proposal to launch a business that focused on international exporting of golfing and hiking equipment. Out of her proposal came the Cyclone Trading Company.

As I entered this business I thought that the local representatives of the manufacturers like Nike Golf and TaylorMade Golf had the ideal job. They got to go around promoting and selling the latest toys and tools available in the golf industry. In other words, they lived and breathed golf for a living! I couldn’t believe their good fortune. I soon discovered that the situation was not as I thought.

One day I was speaking with Phil, the area representative of TaylorMade, and we began talking about our last golf outings. I was shocked when Phil said he had not been out yet that year. Mind you, this was the first of July! As I queried Phil, he admitted that although he loves golf, after talking shop all day long and visiting all the golf courses, his passion had turned into labor. As a result, he doesn’t golf much for enjoyment any more. I saw this time and time again as I spoke with both golf and outdoor representatives. They had transformed their favorite sport into a dreaded job.

Maybe you really do enjoy an activity enough to have it be a part of your life Monday through Friday and over the weekend as well. Your passion and skill could really give you a leg up on your competitors. As I set up Cyclone, I followed the principles outlined in this book. As a result, it was one of the most fun and rewarding businesses I have ever owned. However, if you are not careful and do not approach your venture properly, a business based around your favorite sport or hobby could transform your passion into your poison.

Porter’s Points – Passion or Poison?

·         Create an “I’m passionate about…” list. Cross all the items off the list that are not potential wave items.

·         Remove from the list those items that you neither have the skill nor capital to pursue in a business setting.

·         Focus thought and energy on this process by employing the tools found in chapter 3, “Power Tools.”

We’ll get to Chapter 3: Power Tools in a few days, so until then, just focus on creating and editing your “I’m passionate about….” list. 

When starting a new business, look to catch a wave!  Rich tells you how here:

Some years ago I found myself sitting on the North Shore of Hawaii watching twenty-five-foot breakers pound the shoreline. These waves started way off in the distance as tiny little ripples that would gain strength and speed as they raced to the beach. By the time they hit the reef near where I sat, the bone-crushing power was tremendous. I was mesmerized as I watched what I considered crazy surfers attempt to ride these beasts. Certainly, the exhilaration of riding one of these giants had to be beyond description, but a wipeout could literally mean death.

After this experience, I could not help but draw the parallel between the breakers on Sunset Beach and entrepreneurial efforts. One of the surefire recipes for success is to carefully watch the horizon and identify the ripples that are forming. If you get way out in front of an upcoming wave, the momentum generated will provide a sustained ride. And if the wave is big enough, just being in the right vicinity will generate enough power to propel you to your destination. If you catch it right, it will be the ride of a lifetime. If you catch it wrong, life can come crashing down around you. In both surfing and business, the key factor is the timing of getting on and off the wave. So, the question then becomes; how do I identify and time a wave? Like most skills, your ability to identify sustainable waves will grow with experience. My bet is that you already have a feel for it. Let’s look at an example.

In the year 2008, would you rather be starting a business in the cell phone sector or staffing a telemarketing center? Surely your gut will tell you that the telemarketing wave is slowing down and about to fizzle out. Look at the signs: do-not-call lists, litigation, annoyed people, and the movement away from home phone lines. With all the exciting possibilities and avenues with cell phones, however, there is no shortage of momentum. The wave is just starting to gather speed, and it will only get bigger.

CastleWave is riding the search engine wave. Anyone with a pulse is aware that the worldwide web and Google are generating this wave. Traditional, large companies are turning their focus to gaining a web presence, but their lack of understanding of how to successfully deploy their web initiatives has resulted in a huge disparity. CastleWave recognized this gap and is bridging it with the required expertise. The result? Large corporations are aggressively seeking our services. We recognized the wave and caught it!

I have successfully caught and ridden a number of waves in my career. Riding on top, there’s a feeling that nothing could possibly go wrong. There have also been times when I didn’t get set up for the wave and experienced the pain as huge breakers slammed me into the ocean floor.

In 2000 I learned the hard way that it was not a good time to build web-based companies. As the first wave of Internet business crashed, it didn’t matter how good your idea was, the riptide would suck it out to sea before it was even considered. Two years previously, however, an entrepreneur could get funding by scribbling a business plan on a napkin. PE ratios of publicly traded Internet stocks were insane, sometimes 200 percent! Most of these companies completely dried up and blew away when the bubble burst.

Let’s take another look at a contrasting example:

• Bad day to start an airline: September 12, 2001.
• Great day to start an anti-terrorist airline security business: September 12, 2001.

Same day, different waves.

Porter’s Points—Catch a Wave

·         Read what business analysts are saying about significant future growth industries. Are there opportunities within your skill set or your interests?

·         What major waves are occurring in areas of your expertise? What is everyone talking about? What are the hot topics online? Where do you see inefficiencies or weakness that you could fill?

·         Give your best estimate of how long you think the wave will last, and assess if you have time to get on and ride for a while.

As you look to catch a wave, be sure to keep in mind your hobbies – next time we’ll learn about the pros and cons of incorporating your pastimes into your business ventures. 

Besides finding uninterruptible time, another great way to generate business ideas is to pick a brain.

The “Buy you lunch?” offer is too seldom used. Several of my businesses have grown out of having lunch or casual conversations with business associates. I remember one such experience with a trusted friend and associate from New York, David Fishman. In December 2003, Dave and I had prearranged a call to catch up, as we had both been extremely busy during the year. During the course of the conversation, Dave mentioned that he was aware of several sources for telephone-generated mortgage leads, and asked if I knew of anyone who could use them. I happened to have a connection, and based on that discussion, a highly profitable business was created.

Personal connections are often a significant factor in success as an entrepreneur. Identify a few people associated with the area you are interested in pursuing and pick their brains. Take them to lunch, listen to what they say, and ask questions. I have found this to be most effective when I’m talking to someone face-to-face, but a telephone conversation can also produce positive results.

Another great way to pick a brain is going to an industry-specific trade show. For me, this has been a very successful method for not only coming up with ideas, but, more specifically, for validating concepts and quickly progressing through the learning curve of the industry.

Early in my time with Mitsubishi, we wanted to manufacture motherboards for video games, so we decided to attend a video game trade show in Las Vegas. As a result, we met several great contacts and spawned a successful division. I remember another trade show where we were considering developing motherboards for gambling machines. All indicators looked good. However, after asking some very pointed questions of the industry experts who were there, we became aware of very unfavorable government controls that would have made it difficult to move quickly and become viable. If I had not attended the trade show and picked those brains, I would have wasted hundreds of thousands of dollars. What type of questions should you ask in these “pick a brain” sessions? Here are a few of my favorites:

·         What are the services or needs in your industry that are not being met?

·         What are two or three things you would change about the products or services you rely on?

·         What do your customers like about the service or the product they are buying?

·         What do you think the next big opportunity or change will be in your industry?

Ask open-ended questions, but be sensitive to concerns with intellectual property and confidentiality. There have been times when I have had individuals come to me attempting to clone my business. This is not only brazen, but offensive.

Two other key secrets to success: first, make sure these relationships go both ways. And, second, thank everyone you talk to—everyone! You cannot expect to take and take from your friends and associates without giving up time, insight, and information helpful to their success. Life is not like Monopoly; there can be more than one winner. Casting some courteous bread across the waters will return in kind.

Porter’s Points – Pick a Brain

• Call today and schedule lunch with one of your idea-generating friends.
• The next time you attend a trade show, prepare relevant and direct questions for the experts. Ask, listen, record.
• Thank everyone you talk with and consider ways you can contribute to their venture in return.

Rich and Ron’s next suggestion to come up with ideas is to catch a wave.  Sounds like more fun than picking a brain!  Stay tuned….

We return today to Chapter 2: Juice to the Light Bulb from Bootstrapped! A No Bull Solution for Small Business Success.  Rich shares the necessity of uninterruptible time when trying to come up with business ideas.

At the time we launched CastleWave, Ron and I were several months into writing Bootstrapped! when he began telling me we had to bootstrap a business as a case study for the principles we were setting forth. I had just come off of a recent bad partnership and had sold several other businesses, so I wasn’t ready to start another business any time soon. It took a good month for Ron to convince me; during that month, we had not even thought about what kind of business we would launch. When we did start, the first step was getting some juice to the light bulb.

We decided to put our words to the test. One of the best ways to generate ideas is to find some uninterruptible time to brainstorm, so that’s exactly what we did. We went into a great little room in the back of the office we were leasing. It overlooked a golf course and a mountain range in the distance, so we had an inspiring view. There were no phones to interrupt us during the half day we had set aside to brainstorm.

About all we had in the room, besides a great view, was a big whiteboard. We took turns throwing ideas up on the board. We started asking ourselves questions to generate the flow. What new trends were we seeing in the technology market? What were our individual and combined skill sets? Where did our abilities and backgrounds intersect with the trends we were seeing? Suddenly, we were going crazy with all the potential ideas, and before long we had fifty or sixty ideas on the whiteboard.

Focused energy in the right environment can fuel outbursts of ideas. Each of us is different, so you need to ask yourself: where do you find peace? What time of day is best for your inspiration? Where have you found calm in the past? When you finally determine where your quiet place is, go there with intent and purpose.

For me, I climb mountains. The reason is to eliminate clutter and gain perspective on the world around me. This is my personal place for inspiration, and when it comes, it’s a moment of pure clarity and joy. The result is exhilarating.

I can’t help but wonder how the Sistine chapel would have turned out if Michelangelo had been signed up for a cellular friends-and-family plan.

Some years ago one of my star team members became displaced when I sold and closed several of my businesses. This particular individual was an international employee in the United States on a H1 work visa. As he was attempting to find a new job, several very difficult situations arose that jeopardized his ability to remain working in the United States.

After seeking legal and professional advice on his behalf, I started feeling there was no solution in sight. One afternoon I made time to sit down and consider the problem. I turned the volume down around me. I didn’t see a resolution immediately, but that night, as I was further meditating on the dilemma, the answer came. It was 11:30, but I was so excited that I immediately jumped out of bed and called my team member. I am confident that if I had not scheduled uninterruptible time, I would not have had the clarity of thought needed to provide the soft landing I felt he deserved.

Porter’s Points – Uninterruptible Time

·         While you are calendaring everything else, plan some time to ponder as well: When, where, and for how long?

·         Ponder with a plan, and be deliberate! Know what you want to come away with.

·         Uninterruptible time is not a vacation. Self-discipline will make or break an entrepreneur.

Next time we’ll learn the value in picking a brain!  Sounds gross, but it’ll be worth it!

Today we begin Chapter 2: Juice to the Light Bulb of Bootstrapped! A No Bull Solution for Small Business Success.  Have you ever wanted to start a business, but didn’t know if you could come up with a good idea?  This chapter introduces seven strategies to get the juice flowing.  We start with Ron’s introduction to the chapter. 

One of the questions Rich is continually asked by aspiring entrepreneurs is, “How do you come up with all of your ideas?” Many of those who ask seem to have the impression that they’re not smart enough to come up with a great business concept. They tend to think that great business ideas materialize miraculously from nowhere rather than being easily accessible to “us common folk.” This chapter discusses seven different strategies that will help you generate the kind of ideas that can result in a successful startup business.

I know of an astute and successful businessman whom I have observed over the years. He owns a basketball franchise, numerous car dealerships, restaurants, entertainment complexes, and many other businesses. He wasn’t always wealthy, though; in fact, in the 1970s he was managing the auto parts department for a Toyota dealership when the first big fuel shortage caused gas prices to soar. Consumers were so desperate that siphoning and stealing gas became a common problem. Surveying the situation, this man saw a need. He discovered a small company that made locking gas caps, negotiated exclusive distribution rights with them, and became the only direct seller in the United States, locking down the entire market. He eventually bought his own Toyota dealership and established the cornerstone of the foundation for his financial empire.

Typically, you don’t think of a great idea. You find it. This requires you to open your mind and recognize what is already going on around you. While it’s true that part of success comes from being in the right place at the right time, entrepreneurship also takes a certain level of imagination and innovation, where you begin to see dollar bills everywhere you look. Be open to the possibilities that already exist. Any problem in the world can become a business opportunity if you get in the habit of asking yourself:

·         How can I fix this problem?

·         Do other people have this same problem?

·         Would there be people willing to buy my solution if I fix this problem?

Was that gas-cap businessman a genius? No. He was simply in the right place (the auto parts department) at the right time (the 1970s gas shortage), and he looked for a way to solve a problem that was right in front of him. He did not create his business in isolation, and it was not the result of some light bulb magically going off in his head. He simply kept his eyes open and then took action. So, the question is, how can you learn to take action on the opportunities around you? How can you get juice to the “light bulbs” in your head?

Sorry to leave you hanging, but we’ll dive into Rich’s explanation of the strategies to get the business ideas flowing next time!

It’s been almost exactly two years since Rich decided to take a year’s sabbatical – that lasted for about a month.  After he sold or closed his businesses, he decided he wanted to clear his head and spend more time with his family.  He quickly realized, though, that his kids were in school and a man could only go golfing so many times a week. 

On one particular golf trip, a moment of inspiration came.  Rich’s brother asked why Rich didn’t write a book about his process for starting businesses – something that ‘scares the tar out of the rest of us’ but that Rich has done scores of times.  The idea stuck and when Rich mentioned it to Ron, Ron said, “I want to write it with you.” 

And so Bootstrapped! A No Bull Solution for Small Business Success was conceived.  A few months into the writing process, Ron remained unconvinced.  He didn’t buy all the principles Rich was espousing and insisted that Rich prove it to him.  Rich was reluctant at first (the memory of bad experiences with previous partners still lingered), but Ron persisted – he wanted to see the principles in action. 

Rich relented and they each brought $2,500 to the table.  Huddled around a large white board, Rich and Ron threw 25 – 30 business ideas up and analyzed each according to Porter’s Five Forces Model.  They settled on the SEO idea, even though it didn’t score the highest, because it was quick to cash and Rich had experience in the area.

They followed the book, chapter by chapter, as they developed Everest Web SEO and were soon landing large customers and starting to see some growth.  Six months after the launch, they merged with a New York-based company to form CastleWave.  The business was doing so well that it became difficult to find time to work on the book! 

By the one year mark, CastleWave had reached the original goal of $1 million in top line revenue and has continued to grow since then. 

So what’s the point?  I can sum it up in three words: location, location, location.  Where and how do you receive your best inspiration?  When do ideas come most clearly to you?  For Rich and Ron, it happened in the back room of an office, overlooking the golf course.  If you haven’t discovered your place yet, “Do it!  Do it now!” (thanks to Dwight Schrute for that pearl of wisdom).  Great business ideas don’t miraculously materialize out of thin air, but if you spend time in places where you tend to think clearly, the ideas will come!