Entrepreneurs love their children - and that's a problem

Back in 1405, Chaucer coined a saying that has resonated through Shakespeare, modern psychology, and mommy blogs alike:

“For loue is blynd alday and may nat see,” he wrote in Merchant’s Tale.

The saying “Love is blind” has also repeatedly been proven true by scientists, at least in the context of parental and romantic love. And a new study suggests that startup founders ought to heed the wisdom of the father of English literature, too.

The study, “Entrepreneurial and parental love—are they the same?,” published in the journal Human Brain Mapping on March 13, investigates the neurological and behavioral basis of entrepreneurial love.

Researchers at Aalto University in Helsinki, Finland hypothesized that male business owners would demonstrate the same neurological and emotional reactions when shown images of their companies that fathers experience when shown images of their own children.

Questionnaires were used to measure affect intensity, positive emotions, confidence, and closeness between father and child, entrepreneur and company, and fMRI scans were used to assess brain activity. The participants were 42 men: 21 entrepreneurs and 21 fathers, aged 24-45. The fathers had no entrepreneurial experience, and founders were growth-oriented and not serial entrepreneurs.

Photo Credit: www.rayservers/entrereneur

Behaviorally, fatherly and entrepreneurial love proved strikingly similar—on measures of closeness, joy, satisfaction, pride, and love, participants rated their own children and businesses higher than other people’s children and businesses.

Fathers’ and entrepreneurs’ ratings significantly differed on only one measure: Entrepreneurs displayed a more intense positive bias toward their companies than fathers did toward their children.

In previous studies, when parents viewed images of their children, researchers noted decreased activity in brain regions linked to social cognition and emotional processing—the regions that, when active, allow us to objectively reason. This is the science behind “blind love.”

In this study, entrepreneurs who reported feeling close or interconnected with their business experienced brain activation patterns identical to those of fathers. For these participants, brain activation in regions linked to social cognition—and the capacity for objective thought—significantly decreased when looking at images of their own businesses or children.

Self-confidence was also strongly correlated with brain activity: The more confident the entrepreneur or father was, the less activity occurred in brain regions that enable logical emotional processing. 

“These results suggest that overconfidence and the repression of negative emotions may lead to [entrepreneurs and fathers] overestimating the probability of success for their company or child,” says Marja-Liisa Halko, the study’s co-author and a professor of neuroeconomics at the University of Helsinki.

The opposite was true for less confident entrepreneurs and fathers, indicating that they were more attuned to their children’s and businesses’ flaws and risks, says Halko.

Startup founders may know their “brain children” better than anyone. But the more they consider their business an extension of their “self” (as a parent considers their child), the more they should seek outside advice. Emotional attachment is key to long-term startup success, but may also veil a venture’s weakness. (Reposted from Quartz) Photo credit: dailymail.co.uk

How to Make Money in the Buy and Sell Business For Life

Thousands of people not only in the Philippines but in other parts of the world have discovered they can start a business by buying new and used products cheaply and reselling them for a profit.

A buy-and-sell enterprise is nothing more than purchasing cheaply new or previously owned products that we all need, use or want, and reselling these same items for more than the cost. The difference between what you paid and what you sold it for, of course, is your profit. The mantra of every buy-and-sell enterprise is simple, and easily memorized: Buy low, sell high.

That is precisely the purpose of this article -to show you how you can start and operate your own independent buy-and-sell enterprise so you can buy low and sell high, and make a bundle of profit in the process.

Buying and selling for profit is nothing new. It has been around for thousands of years; the only difference is that the currency has switched from goats and bread to paper and plastic. With that said, however, there are two primary reasons why buying and selling has recently exploded from being the closely guarded secret of a few, to the popular occupation of hundreds of thousands of people worldwide, who are now buying and selling as their sole source of income.

The first reason is the advent, wide acceptance and use of the internet, and the second reason is the emergence of the new economy.

The Internet Makes It Easy to Buy and Sell

The proliferation of the internet gives entrepreneurs from every walk of life and from every geographic location access to a global audience of buying consumers, eager sellers, information, and resources as in no other time in history.

The internet has not only made it easier to sell products into the global marketplace utilizing online sales venues such as eBay, e-commerce websites, e-classifieds, and e-storefronts, but to also source a nearly limitless number of in-demand products, which can be bought cheaply from domestic and overseas suppliers and resold for a handsome profit.

Before this task was out of the reach of most small business people because of the amount of time and money required to research and often travel to foreign and domestic product suppliers to inspect, negotiate, and ink an agreement.

Much of that has changed. Now with the simple click of a mouse you can buy products cheaply from thousands of suppliers spanning the globe, and resell these same products worldwide through numerous online marketplaces, or locally through community retailing opportunities like your weekend tiangge-all for incredible profits.

The New Economy Is Buying and Selling

The new global marketplace has also created a second reason why buying and selling is not only the wave of the future, but also likely to become a large part of what makes up the new economy in industrialized nations such as in the United States, Canada, Europe and Asia.

When you consider the advantages of a buy-and-sell enterprise over traditional retail or service-provider businesses, it quickly becomes apparent why many people have wisely elected to buy and sell, and why buying and selling will make up a large percentage of new business startups and the new economy. 

Consider some of these reasons:

Low investment. The vast majority of buy-and-sell enterprises require only a minimal investment to start. Once can practically start the business for P500 and let it grow many times more.

Minimal financial risk. Because almost all the money you spend to get started goes into buying inventory, there is limited financial risk involved. If you decide to quit, you can simply sell off stock, recoup all or most of your investment, and live to fight another day.

Incredible profit potential. One need only spend time in scouring every nook and cranny of Divisoria and find find with amazement the low prices of thousands of items being sold there which can be bought for P10 a dozen for example and sold for P10 each.  That’s 1,200% profit!  Needless to say, the profit potential is excellent.

Work from home. For people wanting to work from home, a buy-and-sell venture is a great choice, because most can largely be operated and managed from home.

Flexibility. No other business opportunity or career choice offers as much flexibility as buying and selling, especially if you concentrate on online sales. Part-time, full-time, seasonally or occasionally, you set your own schedule and level of commitment as determined by your goals and objectives, not your boss's.

Minimal skill requirements. With the exception of a few highly technical products, there are few skill requirements needed to start, operate, and prosper in a buy-and-sell enterprise, and those skills that are needed can be mastered by newbie entrepreneurs over time. This is a rare opportunity where ambition and motivation are more important than special skills.

Who Can Buy and Sell?

The answer is simple--anyone. One of the best aspects about starting and operating a buy-and-sell venture is that everyone is qualified. Buying and selling knows no boundaries-anyone with a need or desire to earn extra money, work from home or to start and own a business can buy and sell, regardless of age, experience, education and financial resources.

What makes buying and selling the ultimate self-employment option for the vast majority of people? It's low start up capital or in some instances no capital at all yet  proven to work and generate huge profits.

Imagine the flexibility that buying and selling offers. You can buy and sell full time to replace your current income and in all likelihood earn  more. You can buy and sell seasonally, enabling you to pursue other interests like travel. Or you can buy and sell to help supplement your retirement income and stay active until you reach your senior years. (Editor’s Note:  This article is a repost of the original article: How to Buy and Sell Products for a Living which appeared in Entrepreneur.com and slightly edited to reflect actual Philippine situation.)

10 Great Ways to Generate Business Ideas

By Bob Weinstein 

 

You know it's time to venture out on your own, but what to do? Find the business of your dreams with these ideas.

Great business ideas are all around you. Just open yourself to the possibilities, and you're bound to find a winner. To start your search for that drop-dead idea that's going to set the world on fire, start with the following sources. Culled from marketing guru Al Ries, chairman of Roswell, Georgia-based marketing strategy firm Ries & Ries and co-author with Laura Ries of 22 Immutable Laws of Branding, and business trendwatcher Perry Lowe, professor of marketing at Bentley College in Waltham, Massachusetts, these can be the first steps in your search for the business of your dreams.

1. Start with family. Tapping family for great business ideas may not seem like an obvious first step. Sure, you'll hit them up for cash once you've developed your idea, but what can your aging father or cousin Margaret contribute this early in the process? Plenty. Donald Trump certainly wasn't bashful about learning the real estate business from his dad, Fred, who ran a thriving real estate development company, says Ries. Trump had the good sense to get some priceless training before going off to become one of the country's foremost builders and real estate developers. "If his father hadn't provided the foundation and training [he needed] to create a profitable business, Trump wouldn't be where he is today," Ries explains. "Unfortunately, many people insist on [creating a business] themselves without any help from their family. That's foolish."

2. Get a little help from your friends. Ries says you are severely limiting yourself if you rely solely on your own ideas--especially when your creative juices run dry. "This is reason enough to listen to ideas others may have," he says. "If you have 15 or 20 friends, chances are a couple of them have some incredible business ideas."

If it weren't for Steve Jobs' good friend Steve Wozniak, there would be no Apple Computer today, Ries points out. "Jobs didn't know anything about computers," he says. "Wozniak, on the other hand, was the computer genius who developed the first Apple." Jobs had an eye for great business ideas and saw the marketing potential for developing a new type of computer. The important lesson is to keep your antenna up at all times so you can retrieve good ideas when you stumble across them. Ries insists you can make more money recognizing someone else's idea than creating one yourself.

3. Look at all the things that bug you. It may not sound profound, but Ries says this is fertile ground for great business ideas. He cites how upset Kemmons Wilson was in the 1950s when a motel owner wanted to charge him an additional price for each of his five children. He was so ticked off, he launched Memphis, Tennessee-based Holiday Inn, today one of the world's largest hotel chains.

If King C. Gillette hadn't been fed up with the tedious process of sharpening his straight-edge razor, he wouldn't have founded the massive disposable razor industry. When he took his idea for a portable razor with a blade that could be used several times to a research university for assistance, engineers questioned his sanity. Gillette followed his instincts and the rest is history.

4. Tap your interests. Thousands of clever people have taken up hobbies and turned them into a successful business. Tim and Nina Zagat, who launched the Zagat Surveys, a publishing empire that sells restaurant guides for many major U.S. and European cities, are great examples. In the early 1970s, the Zagats were high-priced corporate attorneys whose passion was dining out. For fun, they created a newsletter in which they asked their friends to rank popular restaurants in several categories. Each year, the newsletter encompassed more restaurants. Eventually it became such an expensive and time-consuming undertaking that the couple began charging money for it to allay their expenses. That was the meager beginning of the famed Zagat Survey, which is sold in bookstores worldwide. "When you're doing something you love, it's never considered work," says Ries.

5. Travel. Traveling opens your eyes to a plethora of potential business ideas. Ries cites Leopoldo Fernandez Pujals' discovery of Domino's Pizza on a trip to the United States from his native Spain. Pujals was so impressed with the fast-food operation, he went back to Spain and launched his own version, called TelePizza, in 1986. His company now registers $260 million in sales, and employs 13,000 people in eight countries.

6. Keep your eyes open. "When you see something that piques your interest, ask yourself, What is it about this situation that's special?" says Ries. "Then narrow your focus so you home in on the idea." The process of zeroing in on the idea often spawns important niche markets. "Blockbuster Video's niche is renting videos, and Bulbs Unlimited's niche is selling light bulbs," says Ries. Get it?

7. Examine old mousetraps--then build a better one. "If a product doesn't meet your own high standards, create a better one," advises business trendwatcher Perry Lowe. "That's what put Ben & Jerry's on the map." Ice cream fanatics Ben Cohen and Jerry Greenfield felt popular ice creams weren't rich and tasty enough for their cultivated palates, so they created their own super-premium line of ice cream, which is a bestseller nationwide. Just think: If these ice cream gurus weren't such picky eaters, there would be no Cherry Garcia, Chubby Hubby or Phish Food to enjoy.

8. Take it to the streets. There's no better place to lock into up-and-coming trends than city streets, Lowe contends. Street culture spawned punk, hip-hop, grunge and a number of other fads that rapidly evolved into multimillion-dollar businesses. "Great ideas can often be found by just browsing happening inner-city neighborhoods in virtually any big city in the United States," says Lowe.

9. Sleep on it. Many people ignore their dreams, and some don't remember them at all. But sometimes it pays to listen to those inner messages, no matter how strange or unintelligible they are. "You never know, you might just find the germ of a great idea," says Lowe. The tough part is crawling out of bed in the dead of night to jot down those great ideas before they're forgotten.

10. Check out the Net. Finally, Lowe endorses Web surfing as a fun way to log on to potential business ideas. "Virtually every search engine has a 'What's New' or 'What's Hot' section, where it lists new trends, news tidbits and hot new Web sites," says Lowe. "Make it a point to check out various sites daily. It may trigger an idea or concept you never thought of."

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Bob Weinstein is the author of 10 books and is a frequent contributor to national magazines. 10 Great Ways to Generate Business Ideas first appeared in Entrepreneur Magazine on November 19, 2004.

Is Big Ego Bad for Business?

Stories abound of famous entrepreneurs who are known to have huge egos.

How can we forget those reported tantrums of Steve Jobs, oftentimes terrorizing his executives, if they failed to do as he pleased? Yet Apple, under Jobs’ watch, went to become the most valuable company in the world.

Or the centralized, autocratic ways that can be found in the management style of Donald Trump. His extravagant lifestyle and outspoken manner have made him a celebrity for years, a status magnified by the success of his NBC reality show, The Apprentice.

Does it follow then that when the guy on top has a big ego, business is good?

In many instances, yes it is, but not in all.    

In the case of Trump, along with his business triumphs and popularity, he had instances of filing for bankruptcies because he invested in his own ego.  “When your wardrobe malfunctions in front of 10,000 people, make it part of your act”, he said after the failure of Trump Airlines, Trump Vodka, Trump Mortgage, Trump Casinos. 

And then there are others who turned away great business opportunities of a lifetime because their egos got in the way.

When William Orton, President of Western Union, was invited Alexander Graham Bell to buy the patent for the telephone for $100,000, he turned it down saying:  Mr. Bell, after careful consideration of your invention, while it is a very interesting novelty, we have come to the conclusion it has no commercial possibilities…What use could this company have for an electrical toy?”

Robert Uihlein, CEO of Schlitz Brewing Company, discovered a way to cut brewing time from 40 days to 15…to replace most of the barley malt with corn syrup…and to switch from stabilizer to another to circumvent new laws and as a strategy to outsell and outsmart its competitor, Anheuser-Busch.  The beer with the new formulation was cheaper, more profitable and got to the market faster.  The profits increased until customers noticed the terrible taste of the beer.  To top it all, it broke down quickly to form into sediment that looked like mucous.  The famous last words about Schlitz Beer was said in 1981 by a former mayor of Milwaukee: “How could that big of a company go under so fast?”

Steve Jobs, while bragging to former Apple CEO John Scully about the Apple Liza Computer in 1983 said:  “We’re going to blow IBM away.  There’s nothing they can do when this computer comes out.”  The Liza did poorly with only 100,000 units sold.

The founders of WebVan, when they launched their online grocery idea, overlooked some fundamentals of running a grocery business. Their attitude about bringing in those with knowledge of the industry was:  “We’re trying to recreate this industry so we don’t want to tie ourselves down to the old ideas…”

“Success breeds lots of arrogance. Webvan was Exhibit A of how arrogance can result in a high-profile failure.” wrote Eric Jackson, contributor at The Street.

There are more amusing and even sad examples to the list of businesses and their executives whose egos have sent them crashing down from the comfort of their executive suites down Failure Avenue. 

Business history is full of these. 

But is ego really that bad?  Looking at it in a positive way, I believe ego is the spark that made many entrepreneurs dream big dreams and made it.

There’s just got to be a way to rein those who cannot see the difference between positive self-esteem and arrogance.

10 Top Reasons Why Buying A Franchise is a Life-changing Experience

There are lots of reasons why your decision to buy a franchise is one of the best decisions you made in life.  The following will tell you why you made the right decision:

Instant Business
Buying a franchise does away with all the hassles: finding a location, negotiating a lease, hiring reliable contractors and doing all this on-time and within budget. When you buy a franchise you are buying a complete ready-to-operate business.

Photo Credit: www.jtwmediagroup.com

Tested and Proven System
All franchises have an already-established system in place that you must follow. These systems are designed to improve the overall productivity and increase sales of each franchise. Having a proven system in place eliminates the guesswork and errors a common business owner would normally face.

Bigger Chances of Success
Since there is an already established system in place, there is a higher likelihood of success. If you follow the system the franchisor has put in place, you should be on your way to running a very successful business.

Brand Awareness
If you buy into a franchise system that is already established, you will practically own an established brand that takes a long time to build. Customers are usually more comfortable purchasing items they are familiar with and working with companies they already know and trust.

Easy to Get Financing
Banks are usually very comfortable financing the purchase of a franchise because they already have a proven track record. Lenders usually look at successful franchise chains as having a lower risk of repayment default and are more likely to lend money based on that premise.

Training Support
The franchisor trains you how to run your franchise exactly the same way their other franchise locations are run. This will ensure that you are running your business efficiently and will help to eliminate the usual mistakes a new business owner usually faces.

Management Assistance
When you buy a franchise you are never alone. You will always be able to pick up the phone and ask questions to the franchisor or even to other franchisees.

 Advertising and Marketing Program
There is usually no need to worry about advertising your franchise. The franchisor usually takes care of handling all of the marketing and promotions of your franchise.

Exclusive Area
When you buy a franchise you are also buying an exclusive territory in which to do business. You will be entitled to a certain area and no other franchises (within your franchise system) can be open within that area.

Own Multiple Locations
Being a part of a franchise system will always offer you more opportunities to grow within the system. Once you have become a successful franchise owner, the next step is to add more franchises.

Source: The Franchise Show

How to Know If You Have Business Acumen

Do you have what it takes to make it in business?

Let’s face it, not all who tried it, made it. 

Running a business takes a special quality in a person to start and grow a business to a sustainable level.

And it takes business acumen to make it.

Do you have it in you?

Here’s how to find out.  

First you need to know and understand what business acumen is all about. 

Dr. Raymond R. Reilly, Associate Dean and Professor at the University of Michigan, and an expert in the study of business acumen, says that “business acumen is keenness and quickness in understanding and dealing with a business situation in a manner that is likely to lead to a good outcome.”

Doing so requires basic understanding of some aspects of business such as marketing, finance and other business functions while having the ability to make good judgment and quick decisions.

People with business acumen:

• ·         Have deep understanding of the scope of business issues

• ·         Can simplify complex situations

• ·         Can see through an uncertain future

• ·         Are aware of the implications to other people of their decisions

• ·        Are decisive

• ·         Flexible to change if needed in the future

Business acumen operates in the mind and those with it are able to use it effectively without reliance on organizational support and even formal education.

It is the reason why we see the likes of Bill Gates, Steve Jobs, Mark Zuckerberg and many other business greats who, even without the benefits of a college education, achieved outstanding feats in enterprise development. 

They are instinctively aware that they possess business acumen and utilized it to their advantage.

What are the elements of business acumen? 

 

Dr. Reilly says that strengthening business acumen requires understanding and focus in four critical areas:

• Understanding one’s thought processes.  Business acumen provides frameworks and direction to organizing one’s thoughts and deciding how to allocate attention to the most important issues.

• Developing business knowledge.  One’s acumen is developed by constant exposure to business situation partly through case studies provided by business schools as well as actual experience in a real business environment.

• Effective use of management processes.  These are the tools, procedures and ideas that give shape to one’s ability to think, analyze and to communicate.

• Management and leadership skills.  This aspect of business acumen is the ability to manage the various people relationships essential to enterprise success.  This skill must also apply to managing relationships with customers, suppliers, bankers, investors and other key influences. 

Can business acumen be learned?

Certainly it s a learned skill.

There are those who are quick learners and are able to learn easily than others. 

You can learn the basics in school and also through experience working for others.  If you are lucky enough, you develop it by being exposed to it through your family business at an early age. 

Finally, you can work to improve on your business acumen with regular practice and training until it becomes just second nature to you.

Do you know the the 3 Ps of success of outstanding performers in sports, theater or music?

Practice! Practice! Practice!

It makes one perfect. 

Job Description of a Business Owner

So you think you can now run a business? 

Welcome to the club!  You are now a member of that unique brotherhood of start-up business owners who are jumping into the river called entrepreneurship and testing the water, seeing for themselves if they can swim and survive throughout the entire length of the often-tempestuous tributary.

You have great belief in yourself and you think that because you are the top salesman, accountant or manufacturing guy in your previous employment, you now have the license to run an enterprise.

Well I have good news and bad news for you.

Photo Credit:  www.dailyfinance.com

Yes, it is a great asset if you have an extensive background from a line of work that is key to the growth of your former employer. That’s the good news. Congratulations for a job well-done.

The bad news is, a business is not made-up of just one function like sales, nor finance, nor manufacturing neither human resources. It is made up of all of these and more and if you are merely a specialist in any of these and you think that you’ve got what it takes to run a business, you are probably courting trouble, my friend.

Now that you have assumed the role of somebody who’s supposed to be in-charge of several business functions, it would be to your best interest to be appreciate the value that each of these functions contribute to the overall operations of a business.

To do this you have to re-engineer and tweak yourself to the role of a manager of all the affairs of the business. Not one, not two, but all.

I spent my early years in business and “grew up” in the functional areas of sales and marketing. But when I decided to venture in a business of my own, I realized that I need to increase my appreciation of finance and accounting, all the more when I went into business consulting.

As a general manager, you now need to have a bird’s eye view when looking at the business forest, rather than your former level when all you see are the trees of business functions.

Now, you need to learn a new skill set, a new perspective.

To help you do this, you need to develop a job description that fits the new hat of a general manager. You need to write a job specification that will spell out your new duties and responsibilities to guide you in your day-to-day activities as a business owner.

To prepare for your business growth and expansion, here are 4 key areas where you need to spend most of your attention and time, if you are to be effective.

1. Strategic Planning

            Your first job is to be able to see the future of your business. Already, have you developed a mission vision statement for your business?  Have you written a business plan that details every aspect of the business from product development, to sales and marketing, to finance, manufacturing to manpower build-up and development? These are musts that you cannot do without.  The first rule in a journey is do not go without a map and directions.

            During your journey, there are hazards along the way, and the one of the most fatal in business is the hazard of your business being obsolete because of new technological advancements.  If you were making or selling CDs and paraphernalia before, you’ll understand what I mean.

            An important part of strategic planning is being able to spot hazards ahead along the road and make a detour when necessary.

2. Creating a Business Culture and Community

            Nowadays, we often hear of the word “community” in every facet of of business life.  Creating communities are now part of every company’s business strategy in order to have a first-hand feel of the shared values of the community of its customers.

            Likewise, you should create a unique culture in your business where your stakeholders such as employees, suppliers, marketers and investors have the same attachment to what your business stands for, what values they can share as one community so that each of the elements are connected to each other.

3.  Manage Through Others   

Before taking in your first employee and the next, until you build an organization of human beings interacting with you, with your other employees, your customers and your other various other public, you’ve got to be like a  human resource specialist with the aim of getting the best possible employee to fill up vacant positions in your company.

Since nobody but you is responsible and accountable for the performance of your people, one of your most important tasks as a general manager is your ability to recruit, hire, train and develop good people.

These people, especially your key team members, must be hand-selected by you in order to ensure that they will be productive and treat other people the way you would. You need to personally handle their training and development so they perform according to what you expect of them.  The quality of their performance rests on your shoulder.

This way you get results through others by managing, not by doing.


These key people are key pieces in creating the community and culture of your business to maintain its effectiveness.  They need to appreciate and be able to live by your values in order to operate in your stead.

4. You are the Company’s Best “Salesman”
The principles behind the lessons learn from business success, whether of a large or small enterprise are all the same.  Only the magnitude of an organization’s size like Procter and Gamble sometimes give us the idea: “That’s P&G, my situation is different because I am just a small struggling company”.

Reading on the story of A.G. Lafley, the superstar CEO of Procter and Gamble who’s instrumental to bringing the company to one of the world’s most valuable companies, makes me smile in amusement.

I cannot help but be amused by what he asked himself and his employees to do:  Stay close to the customer.     

Having been close to owners of small and medium business owners since 1989, I realized that he is just adopting what the start-up and developing business sector are doing all along. 

Being small and agile, start-up businesses have the greater advantage of keeping their ears on the ground all the time.

As the owner, never lose your grip on the customer.  Personally allocate some time to them, as what Lafley and his executives did, making sure that you continue what others like you in the small business sector are doing, listening and paying close attention to what the customer is saying. 

 

Do this and you’ll never go wrong.