Dan W Bliss

Entrepreneurs have to be tough!

As much as you don’t want to hear this, when it comes to starting a business, pain can very often be good.  Allow me to explain.

In the early stages of startup, many businesses succeed, and many businesses fail.  What separates the successful businesses from the failures?  Frequently, it’s the ability of the founder to adapt and figure out the best method for generating profits.

In many instances, businesses fail because they haven’t perfected their business models, or because they can’t raise enough cash to continue with operations.  These are frustrating times.  Entrepreneurs become worried, stressed and uncertain about solutions.

This is called “pain.”

Don’t run from it, and certainly don’t give up.  Quitting is what many people do.  However, it’s within your control to take a different mental approach.  This is when greatness is born.  As much as you might dread this moment, embrace it.  Absorb it.  Cherish it.  Learn from it.

The pain you feel will create a sense of urgency and clarity.  It’s kind of like shopping for a gift.  When you have all the time in the world, you’ll have trouble making up your mind between gifts, stores, prices and colors.  Suddenly, when you are late for the party, you will take decisive action.

When you are under the gun, it is the best time to brainstorm.  Your ideas will stretch further, and you will give careful consideration to even the craziest ideas.  Whether trying to figure out new business methods or find new business partners to approach, use this opportunity to get your creative juices flowing.

I’ll give you a personal example.  A business partner and I bought a famous concert club.  We were young, and we bit off more than we could chew.  We had raised enough money to buy the building and the business, plus some cash for operations.  We thought we were buying a healthy, profitable business.  Just three months after buying the business, we were broke.

By then, we had extinguished all of our friends, family and credit, just to buy the business.  We couldn’t afford our payroll and utilities.  We were moving into the dead of winter, and we were going to have the power shut off and miss payroll.  Everything was at risk, especially our reputations.

Under all of this pressure, we sat down and brainstormed for hours.  We needed to move decisively to save our business.  The ideas we came up with were groundbreaking!

We figured out a few ways to alleviate our immediate cash needs, then we turned the business on its ear!  We began doing weekend matinee concerts for high school bands and double-shows on Friday and Saturday nights.  This allowed us to book over 40 concerts a month, instead of 30.  We also changed our booking, marketing, ticketing and staffing procedures to operate more efficiently.

Within less than a month after these major changes, our business was profitable.  This was still in the middle of winter!  By the time spring rolled around, we were growing quickly.  Within 2 years, we had quadrupled revenues and profits.

The changes we implemented in our most difficult period allowed us to grow faster and operate more efficiently than we would have otherwise.

These same lessons apply to every startup and every business that struggles through a down economy.  Remember, pain is good.  Tighten your belt.  Find new sources of revenue.  Come up with new ideas to make your business thrive.

Although, puppies are cuter than startups.

Source: http://www.PerfectBusiness.com

Starting a business is very much like adopting a puppy.  Every startup needs nurturing, and when it gets excited, it pees on the floor.

OK, maybe the second part of that isn’t true.

Before you even think about adopting a puppy (or starting a business), you really need to assess many things in your life.  Why do you want a puppy?  What kind of puppy do you want?  Are you ready for a puppy?  Will you have the time to take care of a puppy?  Do you have people around you that can help raise the puppy?  Who’s going to walk the puppy if you aren’t around?  Can you afford a puppy?

These are all big questions.  If you haven’t noticed already, the same questions apply to your startup.

Starting a business affects almost everything in your life.  It takes a great deal of time, effort and care to make it succeed.

Here are all the ways that a startup is like a puppy:

• Startups and puppies cause you to lose sleep.
• Startups and puppies must be nurtured.
• Startups and puppies demand constant attention.
• Startups and puppies require training.
• Startups and puppies are expensive and time-consuming.
• Startups and puppies should match your personality.
• Startups and puppies need help from your friends and family.
• Startups and puppies can bite you if you don’t treat them well.
• Startups and puppies are very fulfilling and rewarding.

The point of this matter is that you can’t jump into your business without putting some serious thought into how a business fits your own personality, your lifestyle and the people around you.

The same holds true for puppies!

I’ve owned both puppies and businesses, so I speak from experience when I say that both can be fun and exciting.  However, if you are tired and just want to relax, both can be a bitch!

Empty Pockets?

Not having money is no excuse to put off your business dreams.  As they say, there is more than one way to skin a cat.  Whether you are unemployed, or employed and overextended, you CAN start a business without any money.

I know some of you are saying, “No way!  I’m completely broke, and my plans are big.”  Here’s a little dose of reality for you…  It’s not always easy.  An investor or lender isn’t going to swoop down out of the sky and give you a million dollars with a little pat on the back!  You are going to have to WORK, and you’re going to have to THINK.  Based on your circumstances, you may need to adapt your business to match your circumstances.  This means that you may need to start Phase 1 on a modest level, then Phase 2 on a bigger level, etc.

I’ll give you an example of an early business I started with $0.  After college, I struggled in commercial real estate (mostly because I couldn’t convince businesses to hire a rookie to represent them in buying or leasing property).  With a friend, I started a house painting business.  Our only costs were the DBA registration, business cards and estimate forms that we printed at Kinko’s (total cost less than $100).  We generated clients by contacting homeowners with peeling paint outside – a perfectly targeted audience.  We did some estimates, and we used the deposits from our first two clients to buy ladders, brushes, etc.  We then ran some newspaper ads to hire workers.  In our first month, we went from $0 to $26,000 in sales.  We soon had four crews and more work than we could handle.  We were in business!

If you need to start a business that requires more significant capital, well I’ve done that too.

Here’s a list of ideas on how to launch a business, starting with nothing:

1. (This is my favorite.)  Instead or starting a new business, buy an existing business and improve it.  The seller will often finance more than half of the cost.  Plus, you will be able to use the track record of the business to gain immediate credibility.  Once you buy it, you can change the business to match your vision.
2. Find customers that will give you an advance for future products or services.
3. Talk to your suppliers or manufacturers.  Ask for terms, so you can pay them in 90 or 120 days.  They may even invest in your company.
4. If you are in the restaurant/bar business, vendors who supply pool tables, jukeboxes and video games will often lend $2,000 to $15,000, just to get your account.  The best part is that they will be repaid from the vending income, so you don’t have to worry about making any payments.
5. Good credit can come in handy, and not just for credit cards.  You can often finance furniture, equipment, carpet and building materials to renovate your business.
6. Speaking of renovations, recruit your friends to help you paint and spruce up your business.  These are the only people that will work for pizza and beer.
7. Look for barter opportunities.  Make a list of the things you need, and try to negotiate a fair trade.  Some deals may even require a three-way trade.
8. If your budget requires expensive equipment, consider leasing instead of buying.  This will reduce your startup costs.
9. If you site requires extensive web design and programming, consider giving your programmer a stake in the company or simply ask to pay over time.  If your programmer needs the work, you might get favorable terms.
10. Write an amazing business plan and find investors or partners to participate.  Before approaching anyone, think about it from the investor’s perspective.  Is it worth the risk to invest in your business?  How will they be repaid?  Is the payoff high enough?

Talk to everyone you know.  Seek ideas and referrals to help you formulate ideas to get your business off the ground.  Watch some videos on PerfectBusiness, especially interviews with entrepreneurs in your industry.

Some businesses just need a little bit of seed money for web design concepts, legal costs or even the entire cost of the startup.  I can’t tell you how many people contact me looking for investors of $2,000 to $5,000.  It’s just crazy!  If you don’t have credit or friends that can kick in this amount, then you might simply have to do it the old fashioned way… EARN IT!

1. If you want it bad enough, you’ll do it.  Try these ideas on for size:
2. Sell your car and buy something cheaper
3. Move into a more affordable apartment
4. Get a roommate
5. Sell your giant flat screen TV
6. Pack your lunch and stop drinking $4 coffee every day
7. Quit smoking
8. Get a side job on Saturdays

Sure, it hurts.  But, if you need a little bit of seed money to get your business rolling, you may need to sacrifice.

On a final note, you might want to check out peer-to-peer lending services, such as Prosper.com.  If you decide to borrow from family or friends, but are concerned about awkwardness in your personal life, check out VirginMoney.com.  Virgin Money will act as a middleman to collect payments on behalf of the people that lent you money.

So, now that you know how to solve your lack-of-cash dilemma, get to work!

I’ll try to tread lightly on this subject, but it may not be possible. So, here it goes.

Woman Thinking Like an Investor

It is common for women in relationships to believe that they can change a man for the better. Of course, it is not very easy to do. Men will be men.

In the movie Jerry Maguire, there’s a famous line where Renee Zellweger’s character says, “I love him for the man he wants to be. And I love him for the man he almost is.”

It occurred to me that VC and angel investors often evaluate startups based on upside

potential. While investors may have more influence on a startup than a woman might have on her man (a whole separate debate), I thought the similarities deserved a closer look.

I discovered that women evaluate men similarly to the way investors evaluate startups. Here are six ways they are similar:

1. Women and investors get excited about the upside potential of a prospect.
2. Women and investors often follow their gut instincts.
3. Women and investors confer with a group of advisors.
4. Women and investors regret overlooking negative signals.
5. Women and investors believe that they can change an imperfect prospect.
6. Women and investors prepare an exit strategy before entering a deal.

Of course, this doesn’t apply to ALL investors, nor does it apply to ALL women. It is simply an observation.

I’d love to hear your thoughts on this list.

Can you feel the adrenaline rush?

An interesting phenomenon occurs when a person starts a new business.  This phenomenon manifests itself both mentally and physically.  It affects a person in many ways:

- Your energy level rises.
- Your endurance increases.
- You become extremely motivated.
- Ideas come to you more easily.
- You gain focus.
- You eat less.
- You sleep fewer hours.
- You lose weight.
- You can’t keep your mind off of your work.

If you’ve ever started a new business, then you know exactly what I’m talking about.  I call this “Startup Adrenaline.”

When a person starts a new business, especially when it is a passion project, Startup Adrenaline kicks in the instant that the decision is made to actually start the business.

Many people research, explore and think about starting a business, but they never experience this effect.  In order to feel Startup Adrenaline, you must actually DECIDE.

Often times, it occurs when having the decisive conversation with a business partner.  You might have the conversation where one of you asks, “So, are we going to do this?”

The other responds with, “Yes.  Let’s do it!”

At that instant, Startup Adrenaline will flow through your blood.  The two of you will begin to formulate your action plans with new vigor.  The sense of urgency and reality can change your entire perspective on your business.  Rather than focusing on IF you will start your business, you will begin focusing on HOW to start your business.  You will care less about excuses and obstacles.  You will care more about finding solutions.

Once you start taking action steps with determination, the Startup Adrenaline will continue to flow.  You will have trouble concentrating on anything else.  You will likely lose sleep, because you can’t wait to get up and start working on your business in the morning.  You may find yourself losing track of time and even FORGETTING TO EAT!

Recently, a first-time entrepreneur called me and said, “Dan, I can’t help it.  I just want to work on my business all the time!  I can’t get it off my mind!”

Do your best to harness this energy and stay focused on the most important tasks.  While constructive criticism is needed to develop your business effectively, negativity can cause you to lose momentum.  The good news is that positive feedback from a respected source can renew your Startup Adrenaline.  If you strive to constantly improve on your business and surround yourself with positive people, you can ride the Startup Adrenaline wave all the way through your launch.

Startup Adrenaline will give you more energy and endurance than you ever thought possible.  It’s an amazing feeling that every person should experience at least once.

Remember, if you are just thinking about starting an exciting new business, you will never feel it.  Startup Adrenaline only occurs when you DECIDE to make it happen.

What if Edison had given up?

Whether you want to start a new business or buy an existing business, you need to be passionate about it.  This is my mantra.  Passion is the core from which everything builds.  If you “kinda” believe in your idea, or just “like” your business, it will come across in everything you do.  Even if you get the business up and running, your lack of passion will be noticeable by your customers.

With passion, you will be relentless, hard-working, detail-oriented, diligent, enthusiastic and strong enough to weather any storm.  Without passion, you will give up after just a hint of rain.

Every business must overcome hurdles, pessimism and outright rejection.  You should know this from the onset and keep driving onward.  According to Thomas Edison, “Many of life’s failures are people who did not realize how close they were to success when they gave up.”

There are two common moments when most people give up on their startups:

The first is before you even get started.  Here’s how it happens:  You have a great idea that fulfills a consumer need and perfectly matches your skill set and business contacts.  You decide to share the idea with friends over a beer.  Then one friend says, “I don’t think it will work.”  The idea dies right then and there.

The second common scenario is after you’ve put in the time to get the ball rolling.  You may have even written a business plan or found talented people to get on board, or both.  You then run into a big stumbling block.  Maybe it’s funding.  Perhaps you can’t seem to convince a particular client to get on board.  It might even be as simple as a handful of phone rejections or calls not returned.  This becomes one of those moments where most people quit.

What you may not realize is that this is a test.  It’s entrepreneurial Darwinism at its finest.  Only the strongest entrepreneurs survive.

Here’s the fascinating thing… The entrepreneurs that survive these challenges don’t always have the best businesses!  Many of the best business ideas die, because the entrepreneurs don’t have the persistence or passion to see them through.  This is also why there are so many successful entrepreneurs that seem to lack the educational credentials of their employees.

Some call it persistence or sticktoitiveness.  Others have been known to call it stupidity.  Regardless of what you call it, the passion to follow through with your business goals is the one differentiating factor that separates the excuse-makers from the business-makers.