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Tuesday, March 22, 2011

{Tid Bit}

Here's a tidbit from an article on Inc. Magazine's site by Jason Freid:


When entrepreneurs ask me how to get customers to tell us what they really think, I respond with two words: Charge them. They'll tell you what they think, demand excellence, and take the product seriously in a way they never would if they were just using it for free.
As an entrepreneur, you should welcome that pressure. You should want to be forced to be good at what you do.

Friday, March 18, 2011

{Entrepreneurs are "Different"}

The above title is the actual title of a chapter in my textbook, "The Entrepreneur's Master Planning Guide."  I added the quotes, of course, to emphasize that we really are "special" in that "needs quotation marks around it" kind of way.  I will list below the profile characteristics of a successful entrepreneur, as determined by the authors of the book.

1.  Good Health.  Generally, successful entrepreneurs are physically resilient.  We deny ourselves the luxury of illness and will ourselves to be well.  I have noticed this and experienced it myself.  I do get sick, but very rarely is it in the midst of a super crazy time of my business growth.  There are no "ifs, ands, or buts" about it...we have to be there.  It's all us.  We must lead, create, cope...we can't be in bed.

2.  A Basic Need to Control and Direct.  'Nuff said.

3.  Self-Confidence.  When we are in control, we believe anything is possible.  When there are problems, we tackle them immediately and directly.  I have often said that I thrive in short time frame weddings and at crisis management.  I suppose it comes from a place of self confidence.

4.  Never-Ending Sense of Urgency.  When I read this the first time, I am pretty sure I nodded and said "yes" out loud to no one in particular.  I have always had a feeling of "do it now."  Inactivity makes us impatient, tense and uneasy.  "They have an achievement orientation and a constant, uninterrupted pattern of behavior towards that achievement."

5.  Comprehensive Awareness.  Essentially, this means we see the whole picture yet are also keenly aware of all the small cogs working to achieve the overall goal.  We are always aware of all alternatives and possibilities.

6.  Realistic.  Entrepreneurs are known for being risk takers, but that is not true.  We only partake in calculated risks for which we are predominately confident in their success.  We will measure and evaluate.  We often deal with people in the way we deal with functions and things and assumes others do, too.  This leads to item #9 below.

7.  Superior Conceptual Ability.  "Entrepreneurs possess that peculiar raw intellectual ability to identify relationships among functions and things quickly in the midst of complex and confused situations."  This means we know what's going on and are usually several steps ahead in the repair of that issue.

8.  Low Need for Status.  Some of you, whoever you are, may disagree with this.  You think that we are running the show because we want all the glory.  While that is true for some, this is what I think it means.  It means we don't need a corner office and a fancy car.  We will sacrifice those perks so that more can be poured into the business and our status will be directly related to the success of the company as a result.  We also don't need to be the "be all, end all" on every topic.  We are not opposed to asking for guidance and help in an area we know less about (like accounting, *ahem*).

9.  Objective Approach to Interpersonal Relationships.  Entrepreneurs are generally more interested in people's accomplishments and contributions than their feelings.  Everything is business.  I have a little sidebar story to tell as it relates to this topic.  When I started at AIDS Network in Madison back in 2005, they hired me because of my technical event planning skills.  What I didn't know was how much "cheerleading" I would need to be doing in the position and thus got myself into a few issues where the volunteers didn't appreciate the way I approached tasks and duties.  I had to learn to be more emotive in my communications and take time to recognize those volunteers who were giving so much and working so hard out of the kindness of their hearts.  It rubbed off on me, I think.

10.  Sufficient Emotional Stability.  Essentially, we're level-headed and can handle the extreme amounts of stress placed on us daily (usually by ourselves).  We are challenged rather than discouraged by setbacks or failure.  This is not to say we don't have strong emotional feelings and reactions, but just that we are better able to control them.  I am a woman, so I would say that it is still incredibly difficult for me to not get emotionally involved in my business dealings.  I have been fortunate that there are not many negative memories in my past, but those that are definitely still sting.

{The Focus Strategy}

Of the three main competitive strategies outlined by Michael Porter (Focus, Differentiation and Cost Leadership), I fall in the "Focus" category.  This strategy implies concentrating the marketing effort on a particular buyer group, geographic region, or segment of a product line.  In my case, that would be a very well defined target market - the Eco-Millennial Bride.  As I work on my marketing plan and defining my target market, I will go into more detail about this particular client.

Every aspect of the company is developed around serving this client.  Sure, this could limit my ability to grow beyond the target market, but it also allows me the opportunity for above average profit margins.  I can also better protect my business against competitors because of my differentiating factors. "Focus can be used to select target markets lease vulnerable to substitutes or where competitors are weakest."  

This part of the section spoke to me the most:  "The entrepreneur with a strong talent or aptitude, but limited financial resources might find the focus strategy attractive."  Yup, that's me!  I can do a better job providing excellent service to a smaller, more well defined market, than a broader one.  "Later, having achieved recognition and reputation, the entrepreneur might consider building on those assets in a wider target market."  

(excerpts from "The Entrepreneur's Master Planning Guide" by John Welsh and Jerry White)

{The Competitive Marketplace}

I thought it might be useful to occasionally post tidbits of information that I come across in my textbooks that relate to my market and my industry.  It'll be a good way for me to remember!

Regarding the competitive marketplace, the event consulting industry has "low entry and low exit barriers."  According to The Entrepreneur's Master Planning Guide:

The condition produces an industry in which there are many new competitors.  The weak firms among them retire from the competition quickly.  The total number of competitors is likely to remain about constant.  Retiring weak competitors are quickly replaced by new ones.  Since the new ones are jostling for recognition and a market share, rivalry is likely to be intense.  Profit margins will be low even for the oldest and strongest competitors.  

I have seen this trend in both Wisconsin and in Texas.  The list of wedding planners in any given year is ever changing.  I know for a fact that our profit margins are always lower than we'd like simply because very few of us can compete and still require higher consulting fees.  Since this profession requires low overhead (none, practically, if you work from home and already have a computer), it's easy to start and easy to get out of (once you've completed all your contracts, I hope!).

Thursday, March 17, 2011

{Teacher's Pet}

Ok.  It may come as no surprise to you that I am an over-achieving suck up.  Participation is such a huge aspect of our grades at school that I want to make sure the professor notices me.  In my Starting a Business class, Mr. Terry said at one point that he wishes he had a "How?" hat to wear at work.  When everyone is spouting off their grand ideas, he can say, "Yes, that's all fine and well, but HOW are you going to accomplish it?"

Since I have connections to an embroidery company through my dad, I asked him to go about making me one "How?" hat, in SMU colors of course.  In our first class back from spring break last night, I left it for him in a box.  He was reluctant to open it at first probably because he was either embarrassed or suspicious (though I reminded him that he did give me pretty good grades, so there's no reason to be wary of an exploding box).  

This module of this class is focused on the "fun" stuff, as Mr. Terry calls it...the marketing plan and preparing a pitch to present to investors.  I have been looking forward to the marketing plan because I know it is an area I am so intimately familiar with as an owner of my own wedding business for the past 7 years.  At one point, he spoke about your stationary and the ways he has made his own stand out: thick card stock, printing on both sides, branded cover pages.  During the break, I pulled out my business card: super thick card stock, bright pink on one side, logo on the other, AND rounded corners on two sides (bonus point!).  He was impressed and not only asked to keep it, but further analyzed the card pointing out my clever details.

Being in this class, and definitely to the credit of this instructor, has made me feel both humbled and optimistic about my business acumen and ideas.  I've found there is plenty for me to learn and hone, but also that I actually do have lots of relevant experience that has benefited me and my classmates.  Everything I wrote about in my application essays is true, no fluff.  

You're probably wondering...did Mr. Terry like the hat?  Well, duh!

Monday, March 14, 2011

{Flying Time}

Wow.  I can not believe that my first module is over and the second is just beginning this week.  We had a "spring break" this past week, but mine was no break between the two jobs.  At least I snuck in a quick weekend trip to Austin to visit friends and to meet with Barr Mansion (whom I will speak of later), an "organic" event facility.  

I had such high hopes of blogging throughout my first module to share with you the trials and tribulations of being back in school.  The pace is so fast that it completely swept by me and for that I apologize to you and myself.  The goal of this blog was to get in the habit of writing regularly and I have failed.  Do over!

Mod A of the 1st semester consisted of Financial Accounting and Starting a Business I.  I am happy to say that my accounting professor succeeded in getting me to think in terms of journal entries and I got an A in the class overall.  We submitted a hefty financial assignment at the end of the Starting a Business class, so as of 5 minutes ago, I did not know my grade.  A!  I can't wait to see the feedback on the assignment, however.  The quality of the final submission was not up to my lofty standards and it will need to be tweaked before real world application.

During Mod A, I did a lot of research of local venues and one in Austin to compare organizational structures and successes.  There is so much information to process, but I will blog about each venue and what I took away from them as it relates to my overarching business goal of opening an eco-chic event venue.

Next up is the second half to Starting a Business and Organizational Behavior (yawn).  The professor sounds tough, but I hear he's really interactive.  I hope to be able to apply some of what I learn to my own goals, even though I won't be a multi-tiered organization but more like a small dictatorship.

Mwa ha ha!