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Showing posts with label rural entrepreneurship. Show all posts
Showing posts with label rural entrepreneurship. Show all posts

Thursday, August 18, 2011

The Idea, Part II

Here are some more Osborn questions you can ask for brainstorming.

Go back to the original idea you liked of a business being run in a more populated region. Now ask some questions about how you could change it to be appropriate for your situation. First, remember the three rules:

1) Never criticize any comments, including your own
2) Stay detached: view the situation as though you were a consultant, not the person who will execute on the ideas.
3) Allow creativity: think of how any question could apply from various angles and write down the ideas

Now, here are some questions to ask about possible ways of changing the idea.

Can you MAGNIFY the idea:
Add something? More time? Greater frequency? Stronger? Higher? Longer? Thicker? Extra value? Add an ingredient? Duplicate? Multiply? Exaggerate?

Try this as an exercise. I challenge you.




Wednesday, August 17, 2011

The Idea

In this forum we have consistently held to the belief that "the idea" is only one percent of success. Seeking just the right business idea is, more often than not, a way of avoiding implementation. But because (1) that one percent is still important, and (2) because finding business models that will work in low-population regions is more challenging, we have occasionally devoted space to mentioning specific ideas.

For the next few days, we will talk about the idea generation process. We'll introduce some models that have been used for years.

In a quiet place where you won't be interrupted, do some pondering.

------------

Find a good idea that is being implemented as a business in another region, preferably in a big city. Think of how you can come up with your own idea based on it. First, a modified Alex F. Osborn model.

How can you adapt:
What else is like this? Does the past offer parallels? What could you copy What other idea does this suggest?

Write down an answer to each of those questions. Mind-mapping as a recording style is probably ideal.

Now set that paper aside. Think about the original idea.

Next Line of Questioning, how can you modify the idea:
A new twist? Can you change the meaning, color, motion, sound, odor, form, or shape? Can you think of any other possible changes?

Have you produced an idea? Try doing the same thing with some other people. Friends can help you, but disinterested people would be better.

These ideas are from the Father of Brainstorming.

Friday, August 12, 2011

The Chicken and the Pig

Over the past 15 years, I have assisted hundreds of people to rebuild their careers. I have created multimillionaires out of six people.

In the beginning, I usually share with consultees the Parable of the Pig and Chicken.

A pig and a chicken were roommates, but neither were employed and they needed some money for rent. So they headed out to 'pound the pavement' early one morning.  
The pair passed a restaurant with an advert in the window: HAM AND EGGS, $4.50.
The chicken became excited. "That is our new plan! We can do this! You have ham, and have eggs. We can sell breakfast sets."
"That sounds fine for you," Pig responded. "For you it is a contribution, but for me it is a full commitment." 

And that is my contract with you. I make a contribution to help you. But you will be making a full commitment.


Tuesday, August 2, 2011

The Professional

Following World War Two, many refugees started new lives in America. They encouraged their children to become doctors and lawyers, even though they had been entrepreneurs in Europe.

"The regime in power can take your business, but they can't take what's in your head," the immigrants told their children. So they sent their children to universities to learn professions. It was a risk-management strategy, in case the government tried to take their income-earning capacity the way other totalitarian governments  had. So their children became physicians, attorneys, dentists, accountants, and other types of professionals.

Is this an indictment of what were are endorsing in this forum? Certainly not. It is just a reminder that the most important assets are those in your head. I'm writing this while in the waiting room of a dentist, who is in private practice. That makes him an entrepreneur, after all.

You can succeed as an entrepreneur through hard work and luck, but having an intellectual asset is better.




Sunday, July 31, 2011

Tie In

What are the beliefs of your market? Glenn Beck has done an excellent job of gathering conspiracy believers. He tied his message into their existing beliefs, and rallied them.  Keith Olberman built a myth about himself, his experience, and his motivations. He was quite successful until he got caught. Different markets, similar strategy.

In your business, you don't have to appeal to political extremes, because many other types of beliefs are floating along, waiting for someone to increase their velocity.

Let's say you sell sporting goods to people in a small town. Maybe your message can reaffirm a belief in the moral superiority of rural residents (the hardy yeoman of English fable who are the reservoir of positive values.) Do you sell country crafts on the internet? Then build a myth about their origin, based on a generational belief that handmade goods are better quality or that they connect us with our ancestors.

Belief systems take a long time to build. So don't invent a new belief, or your efforts will only benefit fur businesses.

Thursday, July 28, 2011

Creating

In 1972, psychologist Rollo May said:
     “Joy is the zest that you get out of using your talents, your 
      understanding, the totality of your being, for great aims…
      That’s the kind of feeling that goes with creativity. That’s 
      why I say the courage to create.

      Creation does not come out of simply what you’re born with. 
      That must be united with your courage, both of which cause 
      anxiety but also great joy.”

A lot has been said recently about creativity. Here are my two firm beliefs on the topic:

  1) Creativity is about creating something, usually a new solution, not just about making or saying something weird.
  2) Creating makes us healthier.

If you are depressed, create something. Find a barrier in your business or in your life, and find a new way around it. 

Saturday, July 23, 2011

Are you still stupid?

A belief that I am exceptionally impatient with is the idea that country folk are less intelligent than city folk.

I believe it is not only bigoted, but inaccurate. I believe that per capita, the opposite might be true. Sure, big cities have architects, artists, high-powered lawyers, and captains of industry. But they also have huge populations of people around whom you should never make sudden movements.

Small towns also have people who are struggling. But they have many smart people. I've seen them. 

Tuesday, July 19, 2011

Best-case scenario

American Express almost put itself out of business, twice, by being unprepared for the response to new initiatives. Once, they sent direct mail to customers announcing the creation of a new charge card, a way that they could shop without cash. The response was so overwhelming they could not keep up with the demand. Customers were unhappy, and the brand was almost destroyed. Or so I was told when I worked for Amex in the early 1990s.

When planning bold businesses, we often make contingencies for potential downside risk. "Worst-case scenario, we'll only sell 12 million units. We are exuberant, so we describe a scenario far better than the real worst-case scenario.

But how often do we prepare for an outcome so grand it could instantly suck up all our resources and leave us unable to keep commitments?


Thursday, July 14, 2011

Ode to the Country Life

A central premise if the Nauvoo Commuter is that starting a business in a rural area has several large disadvantages over starting a business in a creative urban center, and you need to be aware of those, but you should focus on the advantages, which do exist.

Occasionally we list ideas of ventures that might fit well into a rural situation. Here are three more:

 - sell local flora (Prairie Tumbleweeds ships tumbleweeds
   worldwide for decorations and movie sets, $25 plus shipping)
 - courier (because logistics infrastructure is not as strong in
   your area)
 - shuttle driver for elderly (or for Amish families)

Go for it.


Sunday, July 10, 2011

The meek will inherit your market share

You can find almost 2,600 titles on audible.com just on motivation. Books abound about how to be more assertive, more confident, more ambitious. It is time someone spoke up for humility. 


Japanese don't innovate. Instant ramen is the sole invention from Japan. And that's okay. They just admit they don't know everything and learn--religiously--from others.  Detroit, which has been creating most of the innovation, yet losing market share. They were not humble enough to learn from Asia, and they sometimes lacked humility toward customers. After living 14 years in Japan, I don't believe that Japanese products are necessarily higher quality. But being modest is certainly serving them well.


Amazon (an internet seller you may have heard of) is meek in the way they interact with customers. They don't assume they know the hearts of consumers better than the consumers themselves.  They talk to customers respectfully. They try different products and promotions, and let customers decide if they like those products. And Amazon doesn't need to control both the hardware and software. If Apple and Sony or anyone else wants to create a device to directly compete with Kindle, that is fine. No ultimatums about "no room in Dodge City for both of us," and no gunslinging in the street. "Here, have our reader app for free," they respond. "Feel welcome to read kindle books on your PC or smartphone."


Humility is the foundational virtue. 

Saturday, July 9, 2011

Art on the Prairie

If I lived in a rural area, and if I were an artist (music, painting, drawing, sculpture, pottery, etc.), I would keep the art as a hobby, and keep the day job. 


Someone wants to make a lot of money, and has the talent, so "why not be 50 Cent or Neil Diamond and make art full time?" The temptation for people is to think "if I make a million with my music, I won't have to work, and can spend time with my family." But that (1) turns the music into a "job." And (2) it forces people to take shortcuts. Also, (3) it makes people impatient. "I'm not making enough money yet!" 

If art is a hobby--a diligent, perform-every-week, consistent hobby--then it will grow like a mustard tree. You'll be surprised at the outcome.

Tuesday, July 5, 2011

Dear Mr. Schwan Man

The Schwan Man visited our house today. His real title is " Route Sales Representative," but he calls himself Schwan Man. In fact, "Schwan Man" is his greeting, sales pitch, and sales closing. When I opened the door, he only said those two words, and left them hanging in the air, allowing me to interpret his objective as he stared at the porch below his feet. Even a smile would have helped him. 

I wonder if Schwan trains their reps. This is the job description:

   "As a Route Sales Representative, you will drive the widely 
    recognized SCHWAN’S truck to sell and deliver more than 
    300 varieties of frozen foods to families around the area. Your 
    drive and ambition can go a long way toward your ability to 
    meet the needs of current customers, secure new customers, 
    and in defining what you earn through the real earning potential 
    of sales commissions."

I assumed he earns some sort of commission, but perhaps not. Covered are his medical, dental, and even tuition (are they hoping he'll start training to be an accountant because they can't believe he will stick to his "Route Sales Representative" job long term?) and some other goodies. The recruiting literature seems to indicate they try to recruit people who want safety.

If the company had trained and motivated him, perhaps our rep would have said, "I'm your Schwan Man, and I am here to fill your freezer with things that bring joy, such as this week's special..." But they didn't, so he didn't. 

We still ordered a few things, but we still have space in our freezer.

Friday, July 1, 2011

Another item for your "To-Don't" list

If you are still putting together a to-don't list, as you should, one thing you should definitely add is:

"Listen to criticism from your neighbors, because you might learn
a lot about yourself"

Most of your neighbors, in fact, probably have no understanding of what you are trying to accomplish. Some might, and you will eventually be able to discern between those who "get it" and those who do not. Ignore the second group, even though they are the majority. 

Tuesday, June 28, 2011

Promises, Commitments, and Deals

You make promises to your family. "My new business will not prevent me from spending time with the family."

You make commitments to customers. "We will ship the same day you order."

You make deals with your neighbors. "My business won't make noise or annoy your household."

What do you do when these commitments reach conflict? Shipping on time infringes on family time, or arriving home late from a family vacation puts shipping behind schedule. Construction of your home office disturbs the neighbors.

Deciding at the beginning of the business is better than later.

I have walked away from a total of $1.5 million by making family time the top priority. I'm not sure I made the right decision. I hope I did. 

Tuesday, June 21, 2011

Working from Home

How can you work from home when you have children? I have not found a way to successfully do so.

The risk is that you do both working and parenting poorly.

Thursday, June 16, 2011

Kids and Entrepreneurship

Do you want your child to become mogul?

A June 13th Wall Street Journal article by Barbara Haislip gives a list of suggestions for teaching entrepreneurial skills to children. The author wants children to develop the following attributes:


Adventurous
Dependable and Stable
Observant
Team Player
Lead by Example

I'm not sure if the author is entrepreneurial or has successful children, but the concept of teaching children to successfully build businesses is intriguing. This is the key point: teaching technical business skills is not nearly as important as developing certain personality and character traits.

What traits to you think are foundational for entrepreneurial success?

Wednesday, June 15, 2011

Bootstrapped Business Feature

A wood shop teacher, Stephan Willner, wanted to start a business. He was aware that some schools in his region were dropping wood-shop programs. 

So he bought an old school bus, ripped out the seats, and made it into a mobile school and teaches woodworking to children. 

This post is our applause to Willner. See his site.



Thursday, June 9, 2011

Blogging for Free

Here at the Nauvoo Commuter, we publish a regular blog and ask for no money. That's fine. It would be a little weird if we did.

I am advising my daughter on starting a business. One option is to follow the course suggested by a prominent incubator: start a free service. After a large number of people are hooked, then find a way to monetize it. You can offer an upgraded (premium) pay service, offer advertising space, sell other information, etc. But you monetize only after the system becomes an institution.

This is something YOU can do.

Tuesday, June 7, 2011

The quote of the day comes from Jeff Bezos: “you can’t put into a spreadsheet how people are going to behave around a new product.” 


I believe that our over-reliance on proforma tools is caused by our fear of failure. They are either attempts to control the future, or to predict it in order to prevent failure.


But you really can't see how a potential product or service will work unless you can watch a customer, in a natural purchasing setting, decide whether or not to purchase the product. If it doesn't work, then try adjusting the value proposition by changing the price, distribution method, or how you advertise. If it still doesn't work, then scrap the product or service rather than launching it on a full scale. If you don't launch it, then move on to the next idea.

Thursday, June 2, 2011

Sustainable Frugality

Or would calling it Frugal Sustainability be more appropriate?

Creative accounting might indicate the recession is over, but the real results of recession: unemployment, general uncertainty, etc. linger. Further, since Central Banks had each attempted to cure a hangover with massive consumption of whiskey, intoxication remains. You can't cure a debt problem by multiplying the rate of borrowing.

So perhaps your next business plan should involve assisting people through both economically stagnant and resource-depleted scenarios.

 - Selling wood heating stoves or becoming a Chimney Sweep
 - Re-upholstering
 - Recycling
 - Upcycling
 - As people are reluctant to purchase real estate, try home repair or
   remodeling (help people "love the one you're with")
 - Sell mopeds
 - Teach homesteading
 - Develop a farmers market

"Use it up, where it out, make do, or do without," as they used to say in frugal times of earlier generations.