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Overview
This is the perfect time to start a small business using your existing skills. Although far too many small businesses fail in their first year, many such failures are absolutely preventable. Ebong Eka will show you how to not just survive, but thrive in your new venture.
In Start Me Up!, you'll learn how to:
Simplify your viable business ideas and accurately identify the best markets to target
Charge your customers higher prices without losing them
Avoid wasting time on mindless tasks so you can focus on running your business
Create brand ambassadors, engage customers, and grow your sales—all while spending less money!
The best and most successful companies know the importance of the Four S's: structure, strategy, systems, and sales. Most companies that fail, lack one or more of these necessary factors. Let Ebong show you how to be one of the former.
Product Details
| ISBN-13: | 9781601633057 |
|---|---|
| Publisher: | Red Wheel/Weiser |
| Publication date: | 02/25/2014 |
| Edition description: | First Edition |
| Pages: | 224 |
| Product dimensions: | 5.90(w) x 8.90(h) x 0.60(d) |
About the Author
Ebong Eka is a CPA who has built a successful small-business consulting and technology toolkit during the last 12 years. He has worked with several of the largest professional services firms, in-cluding PricewaterhouseCoopers, Deloitte & Touche, and BDO Seidman. Ebong is also an executive with Levyti Consulting, LLC, an advisory firm in the Washington, DC area. Ebong is a tax and small business expert who regularly appears on MSNBC, Fox News, Fox Business Channel, NBC, HuffPost Live, and CNN, and is a regular blog contributor for the Huffington Post Business Section. He lives in the Washington, DC area.
Read an Excerpt
CHAPTER 1
Fears and Doubts
The list of potential fears, doubts, and excuses that would-be entrepreneurs have to contend with is virtually endless, but the five that I've listed here are probably what most of you are dealing with right now. They are as follows:
1. Starting a business is hard.
2. How do I know if my idea is even worth pursuing?
3. My idea isn't unique.
4. My friends and family think my idea is stupid.
5. I don't have the time to start a business.
Fear #1: Starting a business is hard
The reality is starting a business is easy, but making it last is hard. The key is following the right steps when you start your business. The right steps also apply even if you've already started your business because you will be able to figure out what's missing. People think starting a business is extremely difficult and requires unique skills. As a result, they create barriers to starting one by saying things such as "It takes a lot of luck to be successful." The reality is that luck has little, if anything, to do with it. Anything worth pursuing that is potentially lucrative will be difficult at times. What will get you through those inevitable difficulties are the guidelines that you've already followed in the past.
Many successful people have had to overcome a tremendously difficult experience. Overcoming that difficult experience set the tone for their future success because it was an experience they could draw upon in the event of adversity in the future. Playing professional basketball in Europe required me to overcome some pretty difficult experiences. I played Division III basketball at Calvin College in Grand Rapids, Michigan. If you're familiar with college basketball, NCAA Division III is the lowest of all divisions and is generally comprised of student athletes who weren't good enough to play at the higher division colleges, such as University of Michigan or Louisville.
I played the starting forward position as a senior in college but only made the "Honorable Mention" All Conference Team. I wasn't on the Conference First or Second Teams, but Honorable Mention — third team, or an afterthought. In addition, I only averaged about 10 points per game, which isn't much for an athlete who wants to play basketball professionally, regardless of the level.
Athletes with my background and experience almost never get the opportunity to play professional sports after college. I had my own list of fears and doubts that should have persuaded me to pursue something else. These fears and doubts were:
* I played at a Division III college.
* I wasn't the best player on my team.
* I didn't have a high scoring average (only 10 points per game).
* I had a limited offensive game; I couldn't score points in a variety of ways.
If I had listened to these fears and doubts, I would never have tried to play professional basketball. Instead, I would have started my accounting career right away. Starting my accounting career right out of college wouldn't have been a bad thing, but I had a dream to play basketball after college. This is what convinced me to go for it:
* I was young and had recently graduated from college.
* The ability to use my mind for accounting had a longer shelf life than my body's shelf life for playing basketball.
* There was little financial risk in attempting to play professional basketball overseas.
Starting a business is a lot easier than playing a professional sport, but both are difficult to accomplish unless you follow the right steps. I created and followed the right steps and ended up playing professional basketball in Europe for two years. Later in this book, I'll share what I did to overcome the odds and be successful.
Fear #2: How do I know if my idea is even worth pursuing?
Starting a business also requires understanding and the ability to evaluate your idea. Not all ideas are worth pursuing; many, quite frankly, stink. The goal is figuring out whether your idea stinks before you sink thousands of dollars into it. You can learn business lessons in one of two ways: with your money, or with someone else's money. You can learn from your mistakes or from the mistakes and wisdom of others, but it's cheaper to learn from the mistakes of others. Several years ago, I learned a business lesson with my own money. Despite the loss and angst, it was still the best crash course in business I ever could have taken.
In 2005 I came up with an idea for a software application that allowed you to create ringtones with your own music. This probably sounds utterly ridiculous now, because iPhone and Android apps are plentiful these days, but eight years ago the idea was cutting edge. I believed in my idea so much that I used a popular online marketplace to find IT resources in India. After several horrible experiences of no communication and false promises, I was burned by the two companies I hired. The venture cost me approximately $10,000 and a lot of aggravation. After licking my wounds, I realized there were deeper lessons to be learned. The major realization was that I had learned this lesson using my own money instead of using someone else's money. It would have been cheaper to take a university course; however, I wouldn't have learned the answer to a very important question: Who would be willing to pay me money to make a mobile ringtone? It was a question I had failed to answer before embarking on my outsourcing mission to India. We'll revisit the importance of answering questions like this later in the book.
Fear #3: My idea isn't unique
The idea that an idea must be unique to be good is an annoying (and very common) misconception. When you ask people about their idea for a business or invention, they tend to end their sentence with "... and there's nothing out there like it!" What they don't realize is that this isn't necessarily a good thing.
I recently spoke to a close friend who has an interesting business idea. He has a high-paying job in the Washington, DC area, but he still has that entrepreneurial itch. His idea is to open and run a high-end deli or sandwich shop in his neighborhood, a Washington, DC suburb. I asked him why he felt there needed to be a high-quality deli/sandwich shop in his area. His reply was, "There's nothing really like it and I think it's a hybrid between the high-end and low-end culinary options." As I have so many other times, I replied, "America is about competition, so there's probably a good reason why there aren't any!" As we talked about the idea, we quickly realized that we had a mutual friend who owns several restaurants in the same neighborhood. It made better sense to ask him for some feedback based on his experiences in the restaurant industry and the area.
Our friend said, "The area is fickle. There's another restaurant owner in the area who felt the neighborhood needed a healthy food alternative: salads, wraps, and the like. He opened it and no one came — ever. That experiment lasted about four months before he turned it into a greasy hot dog and sausage shop. People lined up around the block for it!" The good news is my friend wasn't very serious about starting this high-quality deli/sandwich shop. The point here is that the uniqueness of the idea is almost irrelevant to a business taking off.
Uniqueness isn't a prerequisite for a good business; in fact, it probably means your idea is bad! You actually want the opposite of unique — you want an idea that may already exist but requires a slight variation or improvement, such as better service. Being the first to the small-business party is only important in certain industries. Two examples would be pharmaceuticals or the invention of new products. While being first can afford you the ability to patent or protect your invention, that still doesn't mean your business is assured success. Being first only means others can and will copy your idea, learn from your failures, and then go on to create a better product or service. Entrepreneurs who subscribe to that belief tend to fail, while those who come after tend to do a better job than their predecessors.
When I give presentations or speeches, I often ask clients and audience members to tell me what the first popular social network was. Those who know the answer tend to be in their late 30s, while the younger people will say that they've heard of it. Friendster was the first popular social network in the United States. Friendster's problems have been widely discussed. Despite raising a lot of money from venture capitalists, Friendster couldn't overcome two major problems:
1. The Website constantly crashed and took as long as 40 seconds to load due to the large demand of users.
2. Friendster had leadership disagreement on overall strategy. They focused on advertising deals and other product offerings instead of on the fundamental problem of the Website crashing.
MySpace and Facebook were able to surpass Friendster by systematically growing their business. As of this writing, Facebook is the leader, with approximately one billion users worldwide, and it does not appear to be making the same mistakes as its predecessors.
The bigger lesson was understanding how and why Facebook was able to grow. Facebook came after two of the market leaders in social networking and learned from their mistakes. There were three important mistakes that their predecessors made:
1. Friendster: The Website (service) didn't work as advertised and continually crashed when the servers were overloaded.
2. Friendster: The company tried to be all things to all people by providing services that may not have been important to their current users.
3. Myspace: User authenticity and profile consistency were at issue. When I was on Myspace, users were allowed to create custom layouts and backgrounds. In addition, it appeared easier for users to create fake profiles and misrepresent themselves.
This is what Facebook did in response:
* The company restricted users to certain colleges in a slow and systematic growth approach so as not to overwhelm the Internet servers.
* Facebook focused on what their users cared about: the social interactions of their friends. The company added features later on as the number of users grew.
* Facebook only allows one account per user; creating additional or fake profiles violates its TOS (terms of service). In addition, Facebook proactively deletes fake or questionable profiles as they become available.
Fear #4: My friends and family think my idea is stupid
I love sharing my ideas with people because the chances that my business will take off exponentially increase when others help. Part of that help can include advice, guidance, mentorship, and sometimes even money. Most deals are done through relationships, rarely through solicitation. Who you know is important in the start-up phase of your business. This is why I often tell budding entrepreneurs that worrying about people stealing your ideas is a waste of time. There's actually a lesser chance of you actually starting your business if you keep your idea to yourself. If you can't patent your idea, there's a good chance someone else is already working on starting a business based on that idea anyway.
Many of you are reluctant to share your idea with family and friends because you're afraid of what their reactions will be. During recent travels to the Midwest, I met a talented hotel bartender named Sherie. She was of Filipino descent, born and raised in the United States. She was also a married mother of three. She loved cooking traditional Filipino food, including the popular lumpia, the Filipino version of the egg rolls. She made some lumpia for the hotel's catering manager and staff. Saying the hotel staff loved her lumpia would be an understatement because they couldn't stop raving about how great they were. Sherie then told me her catering manager liked them so much that she wanted to put them on the hotel restaurant's menu. Sherie's excitement of knowing that her colleagues and manager loved her traditional dish grew when she realized that she could start a business around it.
I checked back with Sherie several weeks after our conversation and she still hadn't started her business. When I asked her why, she said, "Well, I spoke to a few friends and family, and they told me that it's too much of an undertaking. They also said that I don't know anything about business and that I'm way over my head with it. I agree with them." Talking yourself out of a business idea is actually a pretty common problem. It is also common for others to try to talk you out of your idea by presenting their fears as valid reasons for not starting a business.
The feedback you receive from friends and family may be valid at times, but more often it is not. Sherie's family was right in that she had no business experience and the project could potentially be a big undertaking. Starting a business is always a big undertaking, so that comment was essentially useless. The major difference in Sherie's case was she already had her first customer. She had a customer that wanted to purchase her product before she had even started. The hotel wanted to place a small order to gauge customer interest, after which they could increase the order. The hotel also would have let her prepare the lumpia in its kitchen, which would have saved further costs. She had the ability to slowly build a food business based on her cooking talents.
So what do you do when you receive this kind of feedback from friends and family?
The key to getting your business idea off the ground lies with finding the right advice, guidance, and mentorship from the right people — people who have experience in:
a. the particular industry you're interested in;
b. building businesses similar to yours;
c. developing key relationships that you can use to deal with business pitfalls.
Here's an example. If I'm starting a hamburger stand business, it would be better to ask advice from people in the restaurant industry who built their own hamburger stand or have managed a similar business. I would not ask Donald Trump, Warren Buffett, or some other titan of industry unless that industry were relevant. Family, friends, and strangers will offer their unsolicited opinions on your idea because they have no ideas of their own. Let's face it: the idea of starting a business has already created anxiety for you; the last thing you need is someone with no experience or industry knowledge telling you that your idea sucks! (I will tell you that your idea sucks, too, but I'll also show you how to fix it!) In my case, I minimize business relationships with those who offer useless advice and unfounded opinions. I seek to build relationships with people who've experienced the ups and downs of entrepreneurship. I also seek relationships with people who have experience in the industry I'm interested in because I want to learn more about it.
Fear #5: I don't have the time to start a business
Starting a business requires a lot of effort and resources, time being the most obvious one. Lack of productivity is one of the largest problems small-business owners struggle with. Many of you are starting a business while you still have a full-time job. So you work a nine-hour day and then rush home to your family in time for dinner. By 8 o'clock you're back at the computer again but not to work — to check Facebook, answer e-mails, and basically goof off.
Vilfredo Pareto was an economist famously known for the Pareto Principle, or the 80/20 Rule. He developed the principle after surmising that 80 percent of Italy's wealth was owned by approximately 20 percent of the population. The principle was also applied to other areas of life, including the business world. One example is that 80 percent of a business' revenues come from 20 percent of the owner's or management's efforts. The ancillary application for us is productivity. Dr. Arthur Hafner, Dean of University Libraries at Ball State University, summarized the Pareto Principle's application to productivity as follows:
To maximize personal productivity, realize that 80 percent of one's time is spent on the trivial many activities. Analyze and identify which activities produce the most value to your company and then shift your focus so that you concentrate on the vital few (20 percent). What do you do with those that are left over? Either delegate them or discontinue doing them. (source: www.bsu.edu/libraries/ahafner/awh-th-math-pareto.html)
Productivity is an even bigger problem when you're a small-business owner because your time is extremely limited. The importance of organization and productivity was driven home for me in an interview I conducted with a mother, wife, corporate executive, and serial entrepreneur named Yesi Morillo-Gual.
Yesi Morillo-Gual grew up in the Washington Heights area of New York City as one of five children to immigrant parents from the Dominican Republic. Her father worked 16- to 18-hour days while her mother stayed home with the children. At the age of five, Yesi's world changed when her father died unexpectedly. This tragedy created a tremendous financial burden for her mother, who was now solely responsible for five children in one of the poorest neighborhoods of New York City.
(Continues…)
Excerpted from "Start Me Up!"
by .
Copyright © 2014 Ebong Eka.
Excerpted by permission of Red Wheel/Weiser, LLC.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
Table of Contents
Foreword 5
Preface 7
Chapter 1 Fears and Doubts 9
Chapter 2 Invention vs. Innovation 27
Chapter 3 Small Business Pitfalls 31
Chapter 4 The Four S's: Structure 37
Chapter 5 Pain Points: Aspirin vs. Vitamin 41
Chapter 6 Idea Hierarchy Model 45
Chapter 7 What's Your Niche? 49
Chapter 8 Become an Expert in Your Niche 53
Chapter 9 The Elevator Pitch 61
Chapter 10 Entity Structure 65
Chapter 11 Tax Issues 73
Chapter 12 The Four S's: Strategy (Pricing) 79
Chapter 13 Know Your Numbers 101
Chapter 14 Customer/Market Fit 103
Chapter 15 The Fours S's; Systems (Process) 105
Chapter 16 Virtual Assistants and Interns 111
Chapter 17 Websites 113
Chapter 18 Raising Money 127
Chapter 19 The Four Ss: Sales 135
Chapter 20 Getting Your First Customer 141
Chapter 21 Content Marketing and Storytelling 147
Chapter 22 Social Media Marketing Tips 155
Chapter 23 Facebook 159
Chapter 24 LinkedIn 167
Chapter 25 YouTube 175
Chapter 26 Twitter 185
Chapter 27 Google+ Techniques 195
Chapter 28 Social Media Tools 203
Chapter 29 Social Media Marketing Techniques 207
Chapter 30 E-mail Marketing 209
Resources 213
Appendix 215
Index 217
About the Author 223
Dedication and Acknowledgments 224