On the flipside, at this same time I made a couple of horrific hires, in part because we didn’t have our value system clearly in place.  During this time I was literally living off three to four hours of sleep a night and I hired an executive assistant who had a good resume, but what impressed me even more were her outstanding grades and recommendations. I had some concern that her work experience was a bit thin; but I needed someone quickly, so I hired her assuming her grades indicated a solid work ethic. 

One week while my partner, Ron, and I were working a trade show in Florida, I kept trying to call into my office.  I tried at several different times, but I just could not make contact with my new assistant.  I finally called another recent hire who was supposed to be at the office.  She did call me right back and said she was on a short lunch break and would call me back, which she failed to do. After four days of not being able to reach anyone, I called my wife and asked if she would go by the office and find out what was going on.  When she arrived, the front door was locked and all of the lights were off.  She found the main telephone was set to voice message.  She did find an engineer in a back room, where he was working on a project.  When she asked him what was going on, he told her that these two women, who were supposed to be answering my phones and greeting people, had decided that since I was gone that they would “work from home” that week.

Needless to say, I had to terminate both these women when I returned from my business trip.  I made the mistake of hiring two young women who weren’t hungry for the work I offered and who had a safety net at home that would rescue them.  I also made the mistake of not screening them effectively against my organizational values, one of which is that we value hard workers. 

Since that experience I have learned to not be too busy to pay close attention as I add resources.  I’ve also developed a series of questions and skills assessments that I run potential hires through, especially my executive admin, who I believe is my most important hire. 

One of my best hires is a woman named Colette Marx.  She is a mother who, by mutual agreement, is working for me from her home (which is yet another way to conserve resources).  When I hired her, I gave her a copy of my book, Bootstrap Business, and told her she needed to read it and then take a test.  The other people I hired at the same time all went home and skimmed through the book.  But Colette wanted to succeed at this job; so she read the book, and then she went back and read the book again, this time highlighting it and making copious notes. When she brought it into the office to take the test, it was dog-eared, it was tagged, it was well used.  Not surprisingly, Colette scored a perfect score. She’s the only one to have done that.  (She even scored higher than I did, and I wrote the book!)  Colette didn’t come with the strongest resume or the most extensive experience, but she is one of the most committed and engaged employees I have ever had. 

I love this diagram. So succinct. So accurate. This is one artist’s summary of The Zig Zag Principle. To order the 198-page version click here.

Also please join me tonight on Twitter as we inspire each other with stories about success. Log in and share your story. I’d love to hear all about your successes.

Tonight. Wednesday September 28, 7-9 p.m. MT, @richchristianse, #zigzag

I’ve learned a great deal over the years about failing efficiently.  When I use the word fail, I’m not talking about falling off tall buildings, going bankrupt, or losing everything. What I mean by failing efficiently is that if you can’t get to profitability, you accept that you have nowhere left to go.  You have to become financially profitable before you go on to the next step.  I see far too many people say, “Oh, well, if I just add resources and scale, then I’ll get to profitability!”  But they are inevitably wrong.

Failing efficiently means that unless you hit profitability in whatever time you allocated, you are done!  You need to stop.  If you do, you’ve failed efficiently, and life goes on.  If you aren’t willing to stop, you will fail at a level that may have devastating consequences. 

In your personal life, if you keep going into debt without getting to profitability, you will end up in financial ruin.  You cannot keep trying to add resources or buy more and more things unless you have the cash to pay for them. (And while, yes, credit can be easy to get, at some point you’ll max out and no one will loan you more money.)  Become profitable in your life, in whatever pursuit you have undertaken.

Eating our own Cooking

When we took back Froghair, we decided that Curtis would not quit his full-time job to come on board until we had $60,000 in the bank as a buffer.  We felt that a three-month buffer was a safety net we would be comfortable with and that it would take the pressure off in case we had any kind of a hiccup.

To begin with, we were working Froghair as a fifth priority.  I was taking time off to hike in the Himalayas after selling CastleWave, and Curtis had other priorities.  We had a part-time college student named Shane who was helping us.  In August 2010, we sat down and defined our zig number 1.  After looking at our expenses, we determined and wrote down our financial target number, which was that we needed to net $25,000 a month in order to be profitable.  We were both dedicated to putting 65 percent of our resources toward this effort.

Other than Shane, we did not hire any employees until we hit this target, so the three of us were doing everything.  We had a lot of motivation to reach our goal of becoming profitable before January 1, 2011.  We also set a goal to have five new, high-profile brands in place.  On December 1, 2010, we officially hit this goal one month ahead of schedule.  In November we posted $382,600 of sales with $51,195 in net profit.  Now, having hit that target, we celebrated and then turned our skis so we could zag in the other direction.  That next step was to begin hiring and adding additional resources, as I’ll discuss in the next chapter.

Summary

When you are driving to profitability in zig number 1, follow the basic components.  Set a financial target and figure out how long you will allow yourself to hit your target.  And be sure to give yourself permission to be miserable along the way.  This is hard work, and you’ll have to dig down deep to get through it.  But absolutely do not start working on the other steps until you hit this first zig.  If you fail, that’s fine. You failed efficiently.  You can restart.  You should absolutely begin your undertaking with the mindset that you are going to succeed, but if you don’t, get past the pain and move on to the next thing.  But, as your first step, always drive for profitability as your zig number 1.

No matter how great your new business idea is, it will never succeed if you are the only one who thinks it’s a great idea. People have to want what you’re selling for you to have a successful, lasting business. Indeed, one of the best times to start a business is when you can ride a wave of increasing interest in a new, underserved market. This is exactly how Robert Jordan began his career as an entrepreneur with Online Access.

Jordan recognized the wave of interested people clamoring for information about the Internet and how to get online. This was approximately 11 years back when AOL was making a name for itself by mailing millions of free AOL CDs to everyone in the nation. Jordan seized the opportunity to join AOL in the movement to educate people about the Internet and how to use it.

Jordan didn’t waste time; he launched Online Access as a magazine to help people who weren’t online know more about the Internet, and it took off in a huge way. Riding the Internet wave at the beginning enabled Jordan to not only tap into a large market quickly, but it also positioned the magazine as a prime target for advertising. It became profitable almost immediately from the bidding wars among other Internet-focused companies.

Now Jordan has zigzagged away from Online Access and into new a few other companies, but his success all stems from his initial capacity to recognize a need in an oncoming wave and fill that need before anyone else. He has even published a book called How They Did It: Billion Dollar Insights from the Heart of America that compiles handwritten notes and interviews from other wildly successful entrepreneurs.

Naturally, not every business that catches a wave rises to such success. Jordan was lucky and smart enough to catch that particular wave, but there are plenty coming and going every year for entrepreneurs to ride. Pay attention to your area and learn to recognize when something is going to be big and how you can attach yourself or your business to it. And always remember to zig zag in these waves so you don’t crash your business.

Our next Zig Zagger on team Zig Zag that’s heading down to St. George, Utah, later this week is Dave Heywood. His Favorite part of triathlon is…..the party afterward! Actually, he ultimately loves the swim and doing the swimming training. He says it’s very relaxing even though he’s working hard. Running is definitely the hardest part of the race for Dave. It comes at the end when you’re always so tired yet it’s also the most satisfying.

This tough athlete already participated in a Half Ironman Race in Indiana, a couple of months ago. The race included a 1.2 mile swim, 56 mile bike ride and running for 13.1 miles. He says, “The last 2 miles are pretty rough. I could see the end goal when I got closer to the finish line. It was satisfying accomplishing that goal and cross that line.”

His entrepreneurial dreams all started when he took a course in college while getting his master’s degree in International Management. While there he took a seminar on entrepreneurship and ever since then he has looked for opportunities. He’s had many different ventures to zig zag his way to success. He used to have an import company that imported leather goods from South America. Then he was an insurance agent for a while where he worked as an independent contractor, building up his own business. Another fun job that Dave has done for several companies, is when he heads up the sales training for entrepreneurs in multi-level-marketing companies. He helps the teams understand what they have to do to create sales for their business to grow and be successful.

Dave not only applies the Zig Zag Principle to his business, but he bootstraps each venture as well (he thinks it is more fun that way)! His latest is such an innovative idea that it should be very successful. MZKWRX.COM is a platform that gives independent artists and bands the opportunity to partner with their fans to create a unique channel to distribute their music and increase their fan base. MZKWRX.COM leverages the power of social networking, text messaging, and great music to help artists reach new fans worldwide.

Right now MZKWRX is in the 1st stage of Zig Zag, which is driving to profitability. Dave would tell other entrepreneurs in this same phase the best way to get through this first drive is, “It’s crucial to stay focused. Even though you may zig zag along the way, keep a focus on that end goal. Knowing what you are going to have to do to get there and knowing that you‘re going have to go left and go right. But still don’t take your eye off of that end goal”

Most entrepreneurs think it requires a bunch of money to get your idea to market, but Dave has figured out the value equation and has applied it to his business to help him bootstrap it. It is: 

Dave loves spending time with his wife and 5 children. One thing he appreciates about being an entrepreneur is that he gets to see more of his family and he likes that, especially when he works from home.

Dave has two favorite quotes, the first he has printed out and sitting on the wall next to him. It’s by a triathlon coach from down in Australia, Jeff Smith. “It’s better to be the driver than to be the passenger.” When you’re working for someone else you are the passenger and when you work for yourself you are the driver. He printed it off to remind himself daily as he builds his business that he’s the driver. It keeps him motivated.

The 2nd is from his dad. It doesn’t make much sense, but think about it when you finish a job, “It looks a lot more like it does now than it did before.” It means to Dave that hopefully now the job looks better. One way or another, a change has taken place. Think about it!

We’d like to wish Dave a fantastic race and best of luck to him and www.mzkwrx.com (the site will be up shortly). In the meantime, find them on Facebook at www.facebook.com/mzkwrx.

Last week, I wrote about how to avoid hurricanes in your business. I talked about how important it is to get out of a storm’s way (both figurative and literal) when you know it’s coming, even if the skies look blue out your window.

But many businesses actually caught by hurricane Irene last weekend are now zig zagging their way to recovery. Less than a week has passed since cleanup began, and they are already letting everyone know they are open for businesses. They are looking to restart that all-important zig to profitability.

Disasters happen in life, both in business and out. No matter how well prepared you are or how closely you keep an eye on your business, you will one day get blindsided by a disaster. Resolving disasters is tricky business, but once you’ve faced the worst of the storm, remember to get back up and keep zig zagging!

After hugely disruptive moments like this, you may even need to revisit your entire zig zag plan. Your assets may have decreased significantly, or your beacon in the fog may have moved. Some of the processes you had well in place may now need changing, depending on the nature of your disaster. Also, keep an eye out for hidden opportunities. If something goes wrong in your business, it may be just what you need to help get you to an even better business.

No matter where you decide to go after a disaster, don’t forget to work on that essential profitability zig as soon as you know where you are headed.

Jon Huntsman Jr., a presidential candidate, is about to try something new. His current strategies have let him slip behind his opponents in national polls, keeping him away from political profitability. Now, he has some new messaging he hopes will get him more support.

Now, I don’t intend to criticize his exact plan here: this is a business blog, not a political one. However, businesses can learn from political maneuvers. Huntsman has had a successful career so far, and he definitely has his supporters. These people are sort of like his “Huntsman niche” politically speaking. But what would happen to his beacon in the fog if he decided he was happy just targeting that specific group of people and no one else? He would just fall further behind his opponents!

Likewise, some businesses focus on appealing to a specific niche to avoid getting stomped by competition. This is a great initial strategy, but you rarely see a successful business (or politician) stop with just one niche. Like Huntsman, once a business has a firm hold in a particular niche – or reaches profitability with processes and scale – it will often expand to add more profitability. And if the new zig to profitability doesn’t work, they try something else.

This is how zig zagging keeps with you even after you have hit a huge goal; it keeps you from stagnating as a business. You can’t stop zig zagging because you hit or miss one goal. Even when you’re adding scale, you need to think about how you’re going to add more profitability and how you’re going to add resources to that. This will keep you flexible enough to keep your business moving and growing, even if you have a dud strategy or two.

Yesterday the news, hot off the presses was that Steve Jobs resigned as the CEO of Apple. Today I am sitting here with Dave McInnis, one of my dear friends, discussing the big news. Both of us consider Steve Jobs a personal hero of sorts and an amazing individual. Indeed Steve Jobs entire career and his life has been filled with zigs and zags. That zig zag path is indeed how he reached success.

His first zig came when he was in college. It’s a well-known fact that Steve was adopted. His adoptive parents made a promise to his parents that he would attend a high university. When he got into a high university, his parents simply couldn’t afford it. He ended up dropping out and just sitting in on classes. Indeed, he went to college to learn; although he didn’t actually receive a formal education.

We know he ended up working with Wosniak creating the amazing Apple company. He hit the pinnacle of what was supposed to be success, and then in a very public way, was ousted from the company. He went through a period of time where he really turned inward. During this time he got married, and he also decided to do what he truly loved. He went on to create NeXT, as well as to purchase Pixar (which at the time was a little unknown company.) Amazingly, when Apple later acquired NeXT, Jobs once again became the leader of Apple. 

One of my favorite statements that Steve Jobs makes is, “Do what you love in life, life is too short to waste it following other peoples dreams.” I think Steve has been a brilliant example of that statement.  The result was a company that now has the highest volume stock in the world. It just overtook Exxon. 

The other interesting aspect here is that Steve has had some real personal challenges in his life, causing him to take some unexpected zigs and zags. He overcame pancreatic cancer a while back, and indeed his health hasn’t been very good.  One of the fundamental teachings that I espouse is, “You can replace anything you own in life, a job, money, cars, whatever; but you cannot replace your health, you cannot replace your trust relationships, and most importantly you can’t replace your family.” 

Another thing I appreciate about Jobs is that he established strong core values from the beginning. He has established a value base, a way, and a culture that is almost a cult. I think that is kind of why David and I align with the guy. It is all about innovation, high quality, simplicity, and elegance. The Apple culture is there and its entrenched enough into people that I think it will carry on. 

It will be interesting to see what his life ends up being now. We will continue to watch the Steve Jobs discussion as he continue as chairman of the board. We wish Steve great success and watch for his next zigs and zags in life.

 
We here at The Zig Zag Principle are pleased to announce the formation of the official Zig Zag Triathlon Team. These brave souls have decided to run, bike, and swim all in the name of Zig Zag. Curtis Blair will coordinate and captain the team in the Kokopelli Tri, as the team Zigs and Zags through the beautiful red hills of St. George, Utah on September 17th, 2011.
 
Get your swim suit, bike, and running shoes ready, because you’re invited to join the Zig Zag Team. Our company bloggers and social media experts will profile each member of the team and document their training and progress leading up through the event. Not only will you have the camaraderie of being part of the team for the race, but you will also receive encouragement throughout the entire experience!
 
If you would rather not swim, bike or run you can still be a part of Team Zig Zag! By  pre-ordering any number of books, you will receive an author-signed copy of The Zig Zag Principle which then qualifies you as an official sponsor of Team Zig Zag.
 

To be a sponsor, simply  pre-order the book The Zig Zag Principle and with your donation you will receive the following:

Stay tuned to see the team’s grueling training updates as they prepare mentally and physically for the triathlon of the season! For more information contact Curtis Blair at 1-801-375-7900 or email @ curtis@zigzagprinciple.com We wish the best of luck to Team Zig Zag!

~Colette Marx
Lead Blogger, The Zig Zag Principle

Never pick your zits when you’re a teenager, and especially not when you’re in business.

Several years ago a delightful young woman came up to me dressed in a white dress and a bright smile. She looked me straight in the eyes and started talking. Then about thirty seconds into our conversation she broke out into tears.

Crying she said “I know, I know, it looks terrible, it looks awful. I tried everything I could to cover it over but I just kept picking it and now I have this zit that is just all over my face! I’m so sorry, it’s so hideous!”

The funny thing is that I never even noticed that she had a zit. Quite frankly I was enjoying the conversation with this delightful young woman. How frequently in life and business do we stumble and make the same faux pas?

Last week I was contacted by a close friend and associate who has an online problem with Google and he was seeking some SEO advice. Apparently when you Googled his name the second listing that pops up is a negative term. As I dug deeper into the scenario, I realized what had happened—indeed he had picked the metaphorical zit. Frequently in business we become fixated on a small negative problem, and then we pick it and we pick it and we pike it, until it becomes a huge problem.

Several months ago, this individual noticed that when you searched his name…way at the bottom of the auto fill was the term lawsuit listed with his name. The interesting thing is this lawsuit result had nothing to do with him. This lawsuit was not his problem. However, he and his entire team, and everyone around him became so fixated with the “problem” that they repeatedly searched and clicked on the erroneous lawsuit results, repeatedly.

As anyone who knows anything about Google knows, the repeated searching and clicking, alerted Google that this certain search result was, in fact, pretty important and relevant. What was the result? The zit grew bigger, the problem got bigger because the team and the individual himself kept picking the zit.

So, when you have a problem, highlight the beautiful, good things, don’t get fixated on a negative problem. Don’t highlight it and bring it to everyone’s attention.

The lesson from that young woman that came up and looked me in the eyes and started a delightful conversation is this: Most people would never have noticed or cared. We don’t need to point out our problems. This doesn’t mean that we aren’t open and real! it simply means that we don’t need to make small problems into big problems.

Here’s a mini success story. Check out these two young entrepreneurs who assessed their resources and started a business. Watch them ride the wave in this short video. The Zig Zag Principle really is for anyone who wants to start a business, expand an organization, or just better themselves through goal setting.

I’d love to hear your success stories, both small and grand. Please leave a comment on Facebook, Twitter, or right here on the blog. Happy Zig Zagging.