October 3, 2011
By Wayne Mates
Back in the mid 80’s, as the co-owner of a publishing company, I was accidentally introduced to a superb business model. It is a model that anyone in business should study. It is as relevant today as it was then. In fact, it is a model that Facebook uses today.
Ideally the business, if it isn’t a totally new idea, should offer a “twist” to an existing successful business. In other words, if you are going to copy someone’s idea, make it unique by adding something your competitors will need to add to keep up with you.
My company published medical newsletters. It wasn’t a new idea. There were and are a number of newsletter publishers. Today, some publish online and others are still in print. Most medical newsletters and publications offered studies, research and advice on the medical side of a doctor’s practice. Instead, we offered advice and knowledge on how to run their practice as a business.
No one else was doing that and so it became the first pillar. And, that leads to the second pillar. Pretty obvious, but be sure you have an audience or market for your product or service. 8,000 orthodontists received our newsletter, The Orthodontist. The format was standard and included a main article, a series of smaller articles and advertising. In 1986 we wrote and published an article urging all orthodontists to wear gloves as a preventative health measure. It was not standard practice before then. Having a “twist” and being a visionary is an advantage. Contact me and I will email you the whole 38 page newsletter. The file is too large for download here. Some of the ads from 25 years ago are priceless!
Third, your business should be replicable. With minor changes in editorial content and advertisers, The Orthodontist could be published for any medical specialty. Keeping costs low allows for the easy entry into new markets with a proven business model. Simply by changing a few words in an article, the article could be used many times.
Having a repeating income stream is the fourth pillar. Knowing you can count on an income is vital to expanding operations, entering new markets, paying your employees and ensuring a profit. In the case of The Orthodontist, the advertisers that supported the publishing of the newsletter signed annual contracts for the right to target our mailing list and its’ demographics. Manufacturers and service providers were able to market to those orthodontists most likely to become their customers.
Building on these 4 pillars allows your business the flexibility, ease of entering new markets and sustainable growth. If your business plan or the business you currently have offers the opportunity of these building blocks, you might have a winner.
Filed under News, Sales and Marketing, Start Up by on Oct 3rd, 2011. Comment. 
October 10, 2011
By Wayne Mates
When you think of Chris Columbus chances are his business capabilities and qualities do not come to mind. But, in his time he displayed attributes of an entrepreneur consumed by his dream of success.
Born a commoner in Genoa, Italy, he was exposed to the merchant traders of Venice and other Italian cites that sailed out of the Mediterrean through the treacherous water around the Cape of Good Hope. Their travels took them to Asia where they traded goods for silks, precious gems and spices. These voyages were long, treacherous and quite dangerous. The voyages that succeeded made their ship captains and investors wealthy.
During the medieval period, it was generally accepted that the earth was flat. By the renaissance age and the time of Columbus, most people accepted that the earth was in fact round. Although some merchants felt they could get to Asia by sailing west, it was an unknown for them. How far was it? How long would it take? What if the earth really was flat? What beastly sea creatures would be in the way?
Columbus had the vision and courage to want to try it. But, he had no money, no title and no standing. He set out to accomplish what any modern day entrepreneur would do. He wrote a business plan. He tried to figure out how many men he would need, how much would be needed for provisions, how many ships would be needed. And, what would it cost? He also projected the value of the goods he could bring back from Asia. He projected potential profit.
Obtaining initial funding from private investors, he used connections to pitch his plan to King Henry VII of England and King John II of Portugal. He also sought an audience with Ferdinand and Isabella of Spain. Portugal turned him down. England took too long to respond. Securing an audience with Spanish royalty, he made his presentation. Although impressed they were not enthused by the idea. But, Isabella and Ferdinand eventually funded the venture hoping to increase their influence throughout Europe.
Ferdinand and Isabella were not fools. For four long years they did their due diligence, before agreeing to fund the trip. This brought in other private investors. So far Columbus had managed to create and sell his vision of a successful venture and obtain the funding he needed.
The execution of the plan was less than successful due to faulty assumptions. When Columbus arrived in the Bahamas and moved to Hispaniola, he thought he had succeeded. Apparently, he also had a faulty GPS. He was sure he had reached Asia and spent several months trying to find trading ports. Not finding any, he did what any good business person would do….. he modified his business plan.
Finding no spices and silks, he left the PInta behind with about 40 men, loaded the one ship he had left with some goods and some Indians and headed for Spain. The Pinta was also headed for Spain. The men left behind did not want to stay in the “new world”. After 4 voyages to the Americas, Columbus’ voyages served to secure the Spanish realm as a colonizer of the new world. Columbus died shortly after his last voyage.
Over 500 hundred years later, Columbus has a holiday in his honor. What other business person can claim that honor?? Will it be Bill Gates, Steve Jobs or maybe Warren Buffet? Doubtful.
Filed under News by on Oct 10th, 2011. Comment.
October 17, 2011
By Wayne Mates
When I first started my early businesses, there wasn’t a lot of business information readily available. As a result, I learned some lessons from previous experience and others by simply making mistakes and resolving “not to do it again”! Sometimes, I surprised myself by getting it right the first time!
Today’s neophyte entrepreneur has an enormous source of information available on the internet. There are two web sites that I particularly like as they have useful and great information available in one place.
The first site is published by technology giant Microsoft. Business on Main site on msn.com is a dynamic selection of information and discussion. The site consists of a series of articles and posts categorized by topic. There are sections on startups, finance, operations, sales and marketing, management and more.
Covering many of the same topics is a tools section. Tools are mostly step by step guides or spreadsheets to guide you through completing various tasks. It also contains some whiz-bang calculators to help with projecting expenses or operational budgets.
The videos on the site are relatively straightforward about a single subject or question. Some are very good and others are well….. not so much!
Got a question? There is a good chance it has been answered on the site’s Q &A database. Totally searchable, you will easily be able to find it quickly. Answer not there? Start a discussion or enter an ongoing discussion. Your question will most likely be addressed by someone who has gone through the same or similar situation. You might even find me responding to some questions.
Another favorite of mine is the SCORE website. SORE is a nonprofit organization that partners with the U.S. Small Business Association. It has over 13,000 volunteers, many of whom are retired or current executives giving freely of their time and knowledge. If you want an experienced mentor in your line of business, there is no better place to go to find one.
This site is loaded with business tools. You will find business plan and marketing plan templates ready to use… just modify to your own needs. You will find workbooks, templates, worksheets and guides on just about any business topic you can think of. You’ll find how to articles, checklists, podcasts and more. This site may have more business information in one place than any other website on the internet.
There are discussion groups and sometimes people are available for instant answers to your questions. You might find me hanging out here, too.
A third site, the Small Business Association site (link) will teach you about government loan programs. It also offers some business information and advice, but has nowhere near the quality and depth of information of the other two. What is does provide is good information on the government guaranteed business loans.
Depending on what you need, you should never be ignorant in your business. These are terrific websites that can educate you and answer your questions. Great sites for learning and connecting to others!
Filed under News, Start Up by on Oct 17th, 2011. Comment.
October 24, 2011
The 10 Business Myths You Can’t Afford to Believe on Your New Path to Success
By Wayne Mates
The changing face of business since the recession of 2007 has challenged some long held business beliefs. In her book, Levit documents how some of these long held beliefs have become myths. She explores why holding on to these myths can be detrimental to business and career success.
Her book, published this month, is written primarily for those who are employed in a corporate environment looking to succeed in the business world. However, the myths she exposes are valid for business managers or owners as well.
Some of the myths she writes about include:
Do what you love and the money will follow.
Overnight success is possible.
Any publicity, even bad publicity, is good.
For each topic, she covers how the myth was established, giving a short discourse on it. She then explains why the belief is no longer valid in today’ business environment. She gives examples of people who followed the myths and were not successful. But, she provides more than anecdotalRead more on Blind Spots by Alexandra Levit (a book review)…
Filed under Book Reviews, Hiring and Managing People, News by on Oct 24th, 2011. Comment.
October 31, 2011
By Wayne Mates
For those who follow professional sports, you know that sometimes teams will draft the best talent available. A team may need a player at a certain position, let’s say a running back in football. But, the best player available is a linebacker. A decision must be made and the team chooses either a lesser running back or a stellar linebacker.
As you grow your business, you will face this dilemma. Sometimes you need someone who can drive sales and another time you may need an expert number cruncher. And, most of the time you only have money to hire for one position. Budgets and resources can constrain your options.
To sensibly make the right choice, start by looking at what attributes the best talent must possess.
• Attitude – Attitude is a trump card. A person with great attitude will outshine everyone else. Attitude includes a great magnetic personality with a sparkle in the eyes, a vibrant smile and poise. It includes a strong work ethic with a “gitterdone” now sense of urgency. Attitude cannot be trained. It can only be embellished and channeled.
• Team Player – Regardless of a person’s skill set, best talent has a history of being part of a team. Whether sports, project teams or volunteer work, he has shown he can put the teams’ goals ahead of his own wants and needs. Team players are always willing to do whatever they can to contribute to the success of the team. Part of your assessment of a team player is whether he fits into your company’s culture.
• Success Record – Measureable achievements set this person apart. She has won awards and honors, broken sales records or received rave customer service awards. Her superior track record lets you know you want her on your team in some capacity.
• Malleable – He is flexible as demonstrated by his ability to change course, either voluntarily or through a course correction of his company or department. Adapting to change is a skill not easily taught and the more flexible someone is, the more valuable he will be as your company grows.
Here are a couple of things you should consider as you grapple with hiring the best talent available:
• Training – Your new hire will need to be trained for the position. Maybe she possesses some of the skills, but not all. Will you train in-house or outsource? There is a cost to both methods. In-house will require time and money to create the training. You will need to assign someone to do the training and assess how well the training is progressing. External entails sending your new hire to courses or seminars to learn the skills for the position. Most likely you will use a combination including assigning an internal mentor.
• Reorganization – Reorganization has become a four letter word over the past decade with connotations of layoffs and downsizing. In this case, it does not. Can you restructure some departments to make room for your new talent? If you have consistently hired the best talent, your current staff is flexible and likely ready for new challenges and opportunities. You may want to take this opportunity to tweak your organization so you can hire the best.
Related Posts:
Hiring the best People – The Offer
The Interview – The 5 Questions You Must Ask
Recruiting the Best People
Hiring the Best People
Checklist of 9 Skills and Traits to Hiring Successful Salespeople
Filed under Hiring and Managing People, News by on Oct 31st, 2011. Comment.
Recent Comments