Week 4 - Successful Entrepreneurs Born or Made? Growing a Business?

This week I really enjoyed an article provided entitled "Are Successful Entrepreneurs Born or Made?" by Jeff Sandefer (Acton Foundation Article), that shares the interview of three as it describes "grizzled" veterans of the "Entrepreneurial Wars" in asking questions regarding there success. The interviewer focused on asking these individuals the question:

"So what was the secret to your success? Was it skill, character, or luck?"

Through moments of silence and as I am only sure awkwardness for the interviewer, there was finally response from one of the individuals focusing on "skill" and particularly the ability to "sell", I really liked what one of the other individuals followed up with in regard to skill and salesmanship he said:

“It helps to be born with an engaging personality,” the man who had built a fortune
in rent houses added. “But that’s no substitute for knocking on door after door and
every time you are turned down, having the courage to knock again. Sales is a matter
of learning about human nature, yours and theirs, through trial and error.”

I really grasped what this business owner was saying, a have spent a good chunk of my sales career knocking on doors, training guys to knock on doors, and yes knocking more doors being a door to door or outside salesperson. And definitely agree that there is something to be said for being able to have courage to knock again (over and over again) and that there is a beautiful result that can develop from having that courage and in my opinion it would be developing a further understanding of "human nature".

Then another individual in this article responding to the interviewers question, that character trumped skill. And used the analogy of sport stars "Michael Jordan" and "Tiger Woods" that they may have been blessed with talent and skill, but without the hours of free throws or practicing a swing there skills would not have been developed. This also in my opinion almost falls back to the quote from one of the businessmen in the article that mentioned prior that there is no substitute for doing the work and learning trial and error, in turn building the skills. But the last quote that stuck out to me from this article that I couldn't help but read it several times over. In response to the interviewer following up and asking about "Luck" and that surely there had to be some luck involved in their success or getting into their industry? The businessmen said this:

 “Sure, luck played a part,” the junk dealer said. “But you asked
about success. Luck is the difference between making a million dollars and ten
million or a hundred million. It’s not the difference between success and failure.

"Each of us was going to be a success; it was just a matter of how long it took.”
“Entrepreneurial success isn't about money; it’s about freedom. The goal isn't to make more than you need, it’s to spend less than you make. Because that way your free time belongs to you.”

“You can be the luckiest person on earth,” another added, “but when luck comes
to someone who is unprepared or lacking in character, or sees money as the most
important thing in life, nothing good ever comes of it.”

I think the thought of the difference in luck only being the difference between "making a million dollars and ten million and hundred million dollars" was something I didn't wrap my brain around until I read it at least four times. Basically if someone prepares, works, and masters the other skills of building a successful business the luck is really just the multiplier, regardless of how prepared someone is the luck will or can come, but if someone lacks the fundamentals or foundation to build off of, as the quote says "nothing good ever comes from it".

This leads to my other thought of how to grow a business? In the case study this week for class we read an example of someone (Mills) of opening/starting a greeting card type business where we are approached with the question if it might be better for a plan of slower developed growth or faster more aggressive growth? With more time to think about the question I have decided that it really depends on the market, if you are a new industry and you know that competitors are entering the marketplace at the same time there might be a need for faster growth, to ensure you are "in the game" and aren't shoved out before you had a chance to grow at all. If you are entering an industry that is more well established, that has a set market place already that you are entering to market your niche and price point, slow growth might be more optimal.

From starting a business (on my second venture), having parents with a successful business, and seeing others with their successes. It is different for everyone! The only similarity I see is the same principles of hard work, character, and skill development. I hope that I can consistently learn more and grow my business with these same principles.

Week 3 - "How Will You Measure Your Life?"

In this weeks reading there was an article entitled "How Will You Measure Your Life" by Clayton M. Christensen a Professor of Business Administration at Harvard University (also from a book authored by him). The article had several examples that a person could use as an example or motivation in regard to giving their life credibility and an outline of successes, but there was one particular story that stuck out to me and me really think for a moment. It is entitled "Avoid the Marginal Costs of Mistake", He shares a story of playing for the Oxford University basketball team and that they worked so hard through the entire season to be undefeated and made it to what would be the equivalent of the NCAA tournament. They found out the game was going to be on a Sunday and he had to explain to his team mates that he was not going to be able to play on Sunday, his team mate begged him asking if couldn't "just once" make this exception? He stuck with his principles and explained that he had made the decision to not play sports on Sunday when he was sixteen and that he was not going to break that promise he had made. His comments in the end of the story that go with the sections title:

"The Lesson I learned from this is that it's easier to hold to your principles 100% of the time than it is to hold to them 98% of the time." If you give in to "just this once", based on a marginal cost analysis, as some of my former classmates have done, you'll regret where you end up. You've got to define for yourself what you stand for and draw the line in a safe place."

That story and his thoughts have made me identify more in the business world that sticking to a set of rules and principles is very important. As he put it drawing the line in a safe place, if we make exception after exception we lose continuity, balance, the ability to track progression really, because if something is never the same price, time allotment, or plan a person can get lost in knowing there next best plan of attack. Something I will continue to implement in my career in business and I think the story is one that will stick with me as well. If you are interested in reading the story you might try looking at http://hbr.org/2010/07/how-will-you-measure-your-life/ar/1 to read the full section.

I don't know if Calvin would of had the same motivation to stick to his principles, or for that matter play the game sportsmanlike or by the rules.

Week 2 - Honesty, Ethics, and "Who" is an Entrepreneur

This week brought some thoughts to the table that I think have been a popular discussion in the news and that somehow society has a hard time to recognize. "Ethics", its definition is fairly brief as it is says "moral principles that govern a person's or group's behavior", quite simply you might be able to even say someones "conscience". Unfortunately we live in a day and age where people often ignore their conscience and go for what makes them happy in the moment. In the business world this leads to what eventually escalates to problems that effect hundreds and even thousands of people. If there is anything I have learned about honesty is that regardless of your motive it will hurt someone in the end. If you cheat someone pay or compensation, you are not only shorting the individual, but his family he may be providing for, maybe the difference you are shorting over time takes away from what that person could have invested and made even a greater profit on the funds, and what effects it might have on providing less for their children's education or benefit? In summary again, regardless of what "you think" the motive or outcome is, there is more that it is effecting that you cannot possibly comprehend, especially when jaded with thoughts of selfishness or greed.

If more people had further perspective and understanding of what "greed" can do they might resist the temptation more, but unfortunately the most visible trait of greed is not caring about the consequences other than "not getting caught". And the mantra or creed will continue to be such I can only imagine until sometimes someone is caught and receives consequences for their actions, but even then some people will and just never learn.

On the brighter side, there are many great stories about people who never knew directly of their greatness, but they still found themselves making steps that have led them to greatness. We read a story about an incredible woman named Magdalena Yesil that overcame the obstacles of seeking more education, then moving to America, and then following pursuits that were even at times out of her comfort zone that brought great returns on the investments of her time and energy in her career paths. If you have an opportunity to learn more about this woman's life I would highly recommend it, it can be motivating and influential on how we operate reading stories of others success, this story was insightful and motivational to me.

Overall this week I would sum up my learning activities in that I have refreshed my thoughts of "why" it is important to be honest in business dealings and consider the lasting effects of decisions. Along with that if you consistently seek out opportunity and don't necessarily throw potential options  immediately opportunities can be endless, but its all about what you make of them and how much you put into "yourself".