Teaching kids entrepreneurship

Check out this video and tell me if you agree that it actually promotes the most negative stereotype of entrepreneurs as greedy and manipulative - in it for the money and part of the problem in our consumption based economy.
"Let's Raise Kids to be Entrepreneurs ..." http://on.ted.com/8Qs5

The video at the end of this TED presentation is a more positive and inspiring view of entrepreneurship but most of the commentary seems to be focused on his own version.

Thought provoking, but not convincing that this is what we should be teaching kids in school.

Olympic lessons for entrepreneurs

Enjoy the Winter Olympics in Vancouver, but don't miss the opportunity to learn some lessons to help your business go for gold!

You can help your business to perform like an Olympic champion if you take these ideas from the Olympics as your inspiration:

• Have a four-year plan to achieve Olympic records



• Decide: Go for gold, or Quit.



• Learn from your losses



• Push your limits



• It's not for the money



• Don't cheat



• It's never too late

To see the full article visit: "Olympic Lessons for Entrepreneurs."

Be inspired to take your performance to Olympic heights.

Seven Mistakes in PowerPoint

Our PSN Breakfast Series on October 15th went well with three speakers on "Entrepreneurial Challenges" including my own presentation on "The Seven Biggest Mistakes that Enrepreneurs Make". (Lots of nodding heads and smiles of recognition from the audience even if no one wanted to admit to having made all seven!)

If you would like to review the PowerPoint slides, including Chris Murray's "Success Strategies for Internet Marketing" and Margot Uson's "Winning the War for Talent", they are available at PSNetwork.ca

Thanks for your interest.

How are we doing so far in 2009?

We could all be even worse off, but let's hope it gets better from here. For most of us the impact on our businesses has been inconsistent and inconclusive.

What are the right management strategies and action plans to get through this economic turmoil with a more resilient and successful business?

Here are the lessons we have learned from clients, commentators and other experts, so far:

1. Do not rely on the headlines.

They are just trying to get your attention and a train wreck is more interesting than a success story. They will not provide either balanced or insightful input to your planning or decision making. You will have to dig deeper. Make sure your market data and competitor intelligence is current and accurate.

2. Communicate Communicate Communicate.

Keep employees and customers informed. They are worried, confused and need to be reassured that they can count on you. Unfortunately, you may not have good news for them, but it will be appreciated that they are hearing directly from you and are not left guessing what's next.

3. Keep on Selling.

Now is not the time to cut back on marketing and sales. Your efforts now will be more even conspicuous and effective as your competitors back out of the market and away from their customers. Be selective and very focused. Work on building stronger customer relationships by being relevant and responsive to the current economic circumstances. Avoid the “cry for help” advertising that only confirms “we’re desperate and need the sales”. Calmness, confidence and competence are much more appealing to those potential buyers who are still spending and want reliable, long term suppliers.

4. Do quickly what obviously needs to be done.

If it’s clear to you it's also clear to the people affected. They are waiting for you to act and will be more confident and proactive themselves if they see you taking action. Face the facts, don't fight the facts.

5. Adapt.

Remember Darwin's "survival of the fittest": those who adapt to their environment are most likely to survive; not the strongest or the biggest. This is not the time to be stubbornly persistent about your plans. Look around and be creative. Your destination may still be the same, but the route, the vehicle and the passengers may need to be changed.

6. Be confident, but cautious.

Recognize the difference between calculated risk and a state of uncertainty. Make a decision if the potential outcomes and the percentage probabilities are reasonably clear, but hold fire if they are not.

7. Show conspicuous leadership.

President Obama understands the concept of being the conspicuous spokesman for his plans and policies. No one can do it better than the one who is ultimately responsible. We may not all be as adept communicators as he is, but we can all speak with more sincerity than any spokesperson or intermediary on our concerns, our strategies and our plans.

Good management will be tested during these times, but good decisions now will mean a better business for the future. Keep at it. This too will pass.

Y.C.D.B.S.O.Y.A

Some good business advice from a Canadian cabinet minister in the 1960's government of Prime Minister John Diefenbaker. Imagine that!

I'm reading "Renegade in Power" by Peter C. Newman and he is describing the colourful George Hees who was responsible for Trade and Commerce and was determined to push Canadian businesses toward new international opportunities. He often wore a tie clip (it was the 6o's) that consisted of the letters Y.C.D.B.S.O.Y.A. Visitors to his office couldn't help notice as he fidgeted with it until they finally asked what it meant.

He would obligingly exclaim "You Can't Do Business Sitting On Your Ass!" More direct than they were used to hearing form cabinet ministers, but they did remember the sentiment.

Just another reminder that we can learn from history.

Teaching entrepreneurship

So the course is over and a dozen enthusiastic young entrepreneurs passed with excellent marks. Will they all succeed as entrepreneurs? Sorry, but taking a course is not enough.

In the very first class we agreed that anyone can be an entrepreneur if they are passionate determined, persistent and patient. So why not? It sounds like the same cliches we hear from successful celebrities - "believe in your dream, never give up". But we neglect to be honest and admit that there is always one more requirement for success - talent!

It's like the rookie golfer who just couldn't improve and after every bad shot the pro kept explaining that his problem was LOFT. So the the rookie tried another club and still couldn't hit it straight. The pro then explained "I didn't say your problem was loft, I said it was L-O-F-T: Lack Of F***ing Talent!"

Sometimes its best to discourage budding entrepreneurs who have a dream but need to recognize they are only dreaming. First find something they can be good at.

Anyone can be an entrepreneur

That was the advice of David Lank, Director of the Dobson Centre for Entrepreneurial Studies at McGill, in a seminar last evening. I agree that anyone can be, but not everyone should be, and not everyone wants to be.

As David suggested, why would anyone want to be an entrepreneur when they know that:

1. You will not really work for yourself, but instead for all the people that depend on you.
2. The world really doesn't care about you or your business.
3. Most new businessses fail.

The first test of a real entrepreneur, of course, is that he/she proceeds with enthusiasm in spite of all that knowledge. In David's opinion, based on providing start-up capital to more than 140 companies during his career in venture capital, the most important element in deciding to invest in an entrepreneur is the passion they demonstrate in support of their plan.

A formal business plan is always required, but that is less important than the passion factor. The most important element required for favourable consideration of the business plan is the understanding of reality communicated by the entrepreneur.

Good perspectives to keep in mind.

Learning entrepreneurship

My next teaching challenge is to present the subject of Entrepreneurship in the Continuing Education program at Concordia University.

Can you really teach entrepreneurship? What if you have to be born that way? What about all those stories about "delivering papers when I was nine years old"...? I didn't, so am I disqualified?

My own theory is that an entrepreneur is simply a creator of businesses to meet an opportunity. Anybody can do it anytime; if they have the marketable skills, relevant knowledge, and determination to succeed.

So what can I teach? Having reviewed a number of textbooks on the subject, I have concluded that the expectation of those signing up for the course is to learn some basic business processes and principles that will help them to evaluate their choices and make the decisions necessary to develop an idea or opportunity into a valid business model and business plan, finance it, start it and make it grow.

Sounds simple.

Financial management

I am just completing the teaching of two summer courses in Financial Management at Concordia University. It's time for their final exams so I'm now thinking about what are the most important lessons to learn for future business managers and entrepreneurs. Or alternatively, what do most entrepreneurs neglect in the management of their businesses?

Most of us focus regularly on the income statement - revenues, gross margins, expenses and the resulting profits. But we often neglect the management of our balance sheet - inventory, receivables, return on assets, and the short and long-term sources of funds. These issues can all have significant impact on profitability and the long-term value of the enterprise.

So I will try to emphasize the importance of regularly reviewing performance of assets and liabilities in addition to the more obvious and intuitive issues of sales and income. How does balance sheet performance compare to prior years? the plan? or the industry averages?

Can we improve turnover on inventory and receivables without losing sales or diminishing service levels. Can we extend payables and get additional short-term financing without hurting our credit ratings or adding to our costs? Are we making good use of long-term debt to add financial leverage and improve the return on our equity investment?

All important issues for effective financial management.

Essence of entrepreneurship

I had lunch yesterday with a client and friend who represents for me the essence of entrepreneurship. (He is too modest and discrete for me to mention his name here.)

In my opinion, the essence is to combine the strength of a marketable expertise with the ability to think and act strategically. In his case, he has a very high level of knowledge and experience in the design, build and maintenance of computer data centres. He initally worked for another a specialist in that field then left to start his own business. Over time he successfully positioned his company as the recommended service centre for the industry's leading manufacturer; grew to a size that exceeded his own management abilities; introduced a new partner and executive management team; accepted a new role in the company that leveraged his unique expertise and skills in developing customer relationships; and managed to re-position the company as a major project contractor to design and build large computer room installations from its origins selling and servicing basic hardware.

Many entrepreneurs I work with are equally competent and dedicated to their area of technical expertise but much less capable of managing their business strategically. Others may have the education and experience to manage and think strategically but have little to offer in unique expertise.

Success flows more easily for those that have both.