Introduction
How to Complete
1 Your Mastery Mindset
2 Listen To Your Own Voice
3 Believe In Yourself
4 Your Own Business
5 Knowing Is Your Edge
6 Preparing For Success
7 What Wealth Means
8 Choosing Your Challenges
9 Making the Right Move
10 Entrepreneurial Potential
Conclusion

Lesson Four - Finding Your Own Business

Objectives:

To accept that hard work and money will not save a bad business concept.
To understand that it's easier to clone an existing business than invent a new one.
To consider your hobbies and interests as possible business opportunities.
To investigate possible family and friend business connections.
To appreciate the important of grassroots research in gaining a small business education.

Background:

   Day and night, losers will stomp their feet and whine, "I want it. I want it. But, I want it." Unfortunately, the real world isn't going to back down and kowtow and make a fledgling business a success just because someone wants it. If a business idea is flawed, it doesn't matter how hard the owner works or how much money he's invested.

   If someone has the dopey idea to sell gourmet chocolate covered pickles, they'll be out of business quickly enough.

   Be realistic.

   Your chances for success will be infinitely greater if you copy or clone an existing successful business than if you try to invent your own new and unproven business concept. In other words, you have a much higher chance at success by being the tenth person in your town to own a landscaping business than by being the first person in the world to try and convince homeowners to beautify their homes by having their trees and shrubs painted different colors.

   In choosing a business, make life as easy as possible. Remember, you will spend a lot of time and money and will exert a lot of energy in whatever business you choose. What life experience can you bring to the marketplace?

You are looking for an advantage, an edge that you can bring to your business career. Think. Think about your background and interests and passions and skills.

   Do you have family business experience? Do you have part-time employment experience? Do you like: cars, stamps, music, art, dance, cooking, teaching, reading, woodworking, building, repairing, sewing, gardening, computers, writing, planes, travel, or sports? Then, why not explore business opportunities in these areas?

   Are you good working with older people, children, or teen-agers?

   Are you good working with your hands?

   Do you have any collections?

   Do you feel that you would be able to sell things to other businesses?

   When you choose a business, your choice must reflect the fact that you are offering something better, cheaper, newer, more convenient, or that fills a need.

   Put yourself in the shoes of your customer. Why would customers change what they been doing and instead give you their money? What incentives are you bringing to the table?

By and large, consumers are creatures of habit. They will continue to do what they have been doing. You are the new business on the block. The onus is on you to entice them to give your business a try. And, you'd better be a superior alternative if you expect snare a regular customer from a competitor.

   Here's an example that touches upon all four facts. You've spent some time as a roofer and you want to start your own roofing business. There is a continual need for roofers. You know the roofing business.

   Here is how a master, an Action Principles^® Champion would start and operate a roofing business...

   You offer a better quality roofing product at the same or better price than your competitors.

   Your crew of workers is friendly and professional.

   You clean up and stack your materials neatly at the end of each day. You make sure that the yard, driveway and street are not littered with pieces of old shingles or nails.

   As you work, you put out a yard sign advertising your business so that neighbors and passers-by can see that your crew is friendly, neat and professional.

   You do the job as promised and when promised. Or, you honestly explain to the homeowner any problems that you encounter. Keep the customer informed.

   You make absolutely sure that the customer is satisfied.

   You explain to the customer that you are building your new business and that her words of encouragement are very important to you. You ask for a testimonial to use in your advertising.

   You explain any other type of work that your company offers such as siding or building decks or installing gutters or new windows.

   You offer the customer an incentive to use your company again, maybe 10% off or two new windows out of twenty.

   You offer the customer an incentive to refer your company to other homeowners, maybe a TV or sports tickets or a restaurant gift certificate.

   You show your customers in every way possible that you appreciate their business and that you want more. Each time you leave a satisfied customer, you exponentially increase your chances for success. Your objective is to make sure that everyone of your customers is satisfied and that everyone becomes an ambassador singing your praises to others.

Marketing your business is no time to be shy. When you get a compliment, let the homeowner know that you are always looking for more business and you would appreciate any and all referrals.

   Every four to six months, you make contact with your customers. You send a new brochure or announce a new offer. You send a card, without advertising, at the holidays. If there are favorable articles written about your company, you send those to your customer base.

   Collect customer email addresses.

   While you are in the area doing one job, you scout for other homes that need a roof, or new siding or new windows.

   You leave a hanging brochure on the front door knob, directing the homeowner to all the wonderful testimonials for your work on your company's website.

   On the website, you talk about the quality of the materials you use. You have a FAQ, Frequently Asked Questions column. You explain about insurance and guarantees. You list all your testimonials and all the articles written about your company in local newspapers.

   You show a company photo of yourself and your neatly uniformed crew. If you have a nice truck or nice offices, you display those pictures. You create a favorable impression for your customer. You want an established look even if your next customer is your first customer.

   You have studied the home contracting industry. What do consumers complain about? You address those concerns on your website.

   Of course, if your customer base is computer literate as more and more of the world is, you can send e-mail as well as snail mail announcements. If you are really up to date, you can post a You Tube video brochure.

   You make anyone and everyone feel that your company is friendly, neat and professional.

Go back and reread this brief overview of a successful roofing company operated by an Action Principles^® Champion. What if someone did exactly this? Immediately, they would be in the top tier of local roofing businesses. Immediately, they would be building a loyal customer base for windows and siding, and insulation and decks and additions. How quickly would the owner of this business get rich? The answer is very quickly.

Story:

Romano's Homestyle Pizza, Continued

   Kevin commits himself to leaving the department store behind and starting his pizza shop. He's excited. But, when he starts telling his friends and family about his decision, the response is less than enthusiastic.

   First, he makes his announcement to his co-workers, who respond,

   "Kevin, you can't be serious. You have a great job here. How is our company softball team going to compete without you at second base? Where are you going to find another job with nice people like us? Anyway, you're right in line to take over for Ed Shempas, our hardware manager."

   Yes, Kevin probably could be hardware manager when Ed retires at age 65 but Ed's only 42! Does Kevin want to wait 23 years for his next promotion? Absolutely not! Most people would just shrug and feel that that's just the way it is. How-hum. But, not Kevin, Kevin is a Marine. He is an Action Principles^® Champion. He has been running in place long enough. Kevin is ready to double time to success.

   He tells his mother,

   "Kevin, you're not going to give up your job, are you? Everyone likes you at the store. Is it the money? I bet if you asked them, they'd give you a little raise. You should be thinking about getting married. You have a nice job. You have a nice girlfriend. Remember that you promised your cousin Robbie that you would buy him a new refrigerator with your employee discount. I had you on my prayer list for all those years in the Marines. Now, you're getting me nervous again. Kevin, why do you want to upset your mother?"

   He tells his buddies,

   "Kevin, have you gone completely insane? There are already at least two million pizza places in this city. What you need to do is to drink a lot more beer. Who do you think you are? Wolfgang Puck? We've never even seen you make a sandwich and you want to open a restaurant? Isn't this like working in the mess hall? What kind of a Marine wants to do KP for the rest of his life?"

   He tells his girlfriend,

   "Kevin, I waited three years for you so that we could have a life together. If you open a pizza shop, you'll be working like a madman. When can we go out if you're working every night? Pizza, really, that's a sweaty job and you'll get sauce all over yourself. My little brother, Tim, was working in a pizza shop when he was fifteen. I mean, really, what kind of a life is that, selling pizzas? What about the new car you were going to buy? Please, Kevin, why do you always want to try and upset me? I know your mother and your friends are going to tell you the same thing. Kevin, are you listening?"

   Even at this early stage of his business planning, Kevin has already made a great deal of progress. He has an idea and he is excited by the possibilities.

   Why should he discourage himself by talking to well-meaning people who are only going to give advice based on their own negative agendas? They are not Action Principle^® Champions.

   Eventually, Kevin will meet mentors and advisers to whom the idea of entrepreneurship is not an alien concept.

   Kevin's present mindset is correct, "I made it through Parris Island, why can't I do this?"

   You don't have to be a genius or loaded with money to start a pizza shop. There are a lot of pizza shops already in the town and that's good because it proves that people like pizza.

Tell the people who need to be told but you are under no obligation to follow the advice of people who know nothing. If you were going into battle, you wouldn't ask these people for their advice on M-60 machine gun or RPGs. If you are going into business, why ask the clueless for their meaningless opinions?

Kevin's Market Research

   Kevin's town of Newton has a population of 40,000. There are eight existing pizza/sub/Italian take-out type restaurants. This means a shop/population ratio of approximately 1/5,000. In checking all neighboring towns, Kevin finds this ratio fairly consistent.

   To do this research, Kevin goes online to each town's website and finds the population. He then checks the Internet Yellow Pages listings for the number of pizza shops. This is pretty basic research and it takes Kevin only a few hours to complete his survey. But, already, Kevin has valuable information on pizza shop demographics for Newton and vicinity which helps him decide where to open his first shop and also starts him thinking about the site of his second shop.

   Early in his research, Kevin realizes that with hard work he could make a comfortable living owning one pizza shop but that owning one neighborhood pizza shop isn't likely to make him rich.

   In effect, Kevin realizes that from an income standpoint, he would be trading his job at the department store for the pizza shop pretty much dollar for dollar. The income would be about the same. By making the move to pizza, would he be gaining independence and security? At the department store, he worked to the whim of others. At the pizza shop, win or lose, at least he would work for himself. He would be controlling his own future.

   To arrive at his income figures and to learn the fundamentals of getting a pizza shop up and running, Kevin researches eight sources:

He conducts phone interviews.
He uses the Internet.
He buys books.
He follows up "For-Sale" ads in the business opportunity classifieds.
He meets with restaurant business brokers.
He talks with his mentors.
He surveys his Newton competition.

Source One - On-site Interviews

   Kevin is on a recon mission to learn all he can about the local pizza industry. He will conduct his on-site interviews in the town of Wayland, which is one city away from his town of Newton. Why Wayland? Because Wayland is a similar town to Newton and, really because very few, if any, people from Wayland buy their pizza in Newton - Kevin's opening a pizza shop in Newton would not be a threat to existing pizza shop owners in Wayland. Therefore, Kevin reasons, the owners of the pizza shops in Wayland should be willing to talk to him.

   By calling the Wayland town hall, Kevin is able to get the names of the six pizza shop owners in Wayland. This is public information, since to be in business each owner must have filed a DBA (Doing Business As) certificate and various restaurant licenses, for milk storage, etc.

   On one of his days off from the department store, Kevin calls the six Wayland pizza shops and asks each owner for an interview. He calls at times that will be convenient for the owners, either well before lunch or between lunch and dinner. For example, here is one exchange between Kevin and the owner of Wayland Pizza Palace, Mr. Angeles:

   "Mr. Angeles, my name is Kevin Romano."

   Mr. Angeles doesn't recognize the name, "Who?"

   So, Kevin introduces himself,

   "Kevin Romano. I'm considering opening a pizza shop in Newton and I'd like your advice."

   Mr. Angeles doesn't know if this is a crank call or what,

   "My advice is that there are already too many pizza places in Newton. Save your money. Forget it." Mr. Angeles' voice is impatient.

   But, Kevin doesn't give up on an important information lead,

   "Well, sir, as I said, I'm still in the planning stage. Listen, you're a man who has been in this business awhile and I'd just like to ask you a few questions about suppliers and so on. I'd really appreciate it if you'd just give me a few minutes. Let me come to your shop. I'll buy a cup of coffee and you can be a big help to me - just fifteen minutes, sir."

   Mr. Angeles has obviously only been half-listening,

   "Where did you say you were opening? Newton? There are too many pizza shops in Newton. You want to throw you money away? OK, we talk."

   Four of the six owners agree to talk to Kevin. He schedules two of the appointments for his day off next week and two for late weekday nights when he is off and the pizza business is slower. The fifth Wayland pizza shop owner absolutely refuses to speak with Kevin. The sixth owner speaks so little English that he can't be understood.

   From every step of his research, Kevin learns a little more.

   What does Kevin want to know from these owners?

   What is every Marine taught to observe and record on a recon mission? Kevin wants to learn everything. His objective is to capture a piece of this market.

   Where do they buy their dough, sauce, cold cuts, bread, soda, boxes, and bags?

   Where did they buy their equipment?

   Who was their salesman? Were they satisfied?

   Who do they use for pest control and garbage removal?

   What times of day are the busiest?

   What is the busiest day?

   What is the busiest time of the year?

   How much help is needed to run the shop?

   What percentage of sales is pizza? Subs? Salads? Spaghetti? Drinks?

   Are they planning to add anything else to the menu?

   Have they tried anything on their menus that flopped?

   Kevin would like to know income figures.

   What is the weekly gross?

   How many pizzas are sold? How many subs?

   Kevin sticks to asking mostly operational questions. What are your biggest problems? How do you find and keep help? What kinds of promotions do you run? Would you ever consider selling this shop?

   In the store, Kevin looks for a flag or a Semper Fi decal, something that will give him the chance to introduce the fact that he is a Marine. People do love and respected Marines. Kevin hopes that by establishing a rapport with the owner, he will be invited for a behind-the-counter tour of the shop.

   From his on-site interviews, Kevin learns that running a pizza shop is an honest living, requiring hard work and offering middle class rewards. None of these four shop owners is getting rich, but they all seem to be doing all right.

   The real benefit that Kevin gets from the on-site interviews is information about products and operations that you could only glean from a seasoned veteran with many years of hands-on experience.

   These are the pearls of wisdom.

   This is the kind of specialized information that would be very difficult to find in a book or from a generic business course.

   Kevin learns that there is unanimous agreement on the type of pizza ovens that are best and also the type of grill ventilation to use. He learns about negotiating the best deal from the soda company and how to have a soft drink/milk chest installed. He learns about cash registers and the number of phone lines he'll need. He learns the types of pizzas and subs that sell best. He learns the best source for his baking supplies. He also hears bad experiences that certain shops have had with certain vendors.

   As his knowledge base widens, Kevin begins to get a real sense for what it will take to start and operate a pizza shop.

   Kevin doesn't begin writing his business plan until he is happy with his educational plan. He doesn't presume to know more about the pizza business than people who have been in the neighborhood pizza business for decades.

Masters ask good question and then quietly listen to the answers.

   He asks and he listens and he learns.

   Within 48 hours, Kevin returns to each on-site interview shop with a fruit basket and a Thank You note for the owner. Cost: $25.00 each.

   Public relations never hurt and Kevin will be remembered when he calls again.

Source Two - Phone Interviews

   The purpose of the phone interviews will be for Kevin to reinforce and support the information that he has obtained from the on-site interviews. Kevin could continue to try for additional on-site interviews but the phone interviews will be more expeditious - they'll save time.

   For the phone interviews, Kevin selects two other towns, which, like Wayland, are near to Newton but where the pizza restaurants aren't in competition with Newton. In the two "phone interview towns," there are thirteen pizza shops. Again, to personalize the calls, Kevin gets the names of the pizza shop proprietors from the clerk at the town halls.

   In conducting his phone interviews, Kevin expects his cooperation response rate to be lower. On the phone, the proprietors really don't know to whom they're talking. It isn't likely they will divulge "trade secrets." Here's the difference in technique. Whereas Kevin's in person interviews could be longer and more general, his phone interviews must be more specific.

   Making his calls, Kevin explains who he is and why he is calling. He asks if he has called at a good time or when he may call back. He quickly gets to his specific questions which are based on the information he has already gathered. The questions might be:

Tomatow Pizza

   "Would you recommend Braun pizza ovens?"

   "A Westinghouse grill?"

   "Do you buy your dough and sauces from Danby Industries?"

   "Are you satisfied with them?"

   "Have you ever used anyone else?"

   "Who is your salesperson at Danby?"

   "Are you satisfied with the service you are receiving from him or her?"

   "Who is your soft drink supplier?"

   "Who does your printing?"

   "Is most of your business delivery or walk-in?"

   Kevin listens and doesn't interrupt, argue or contradict. If the majority of respondents say that Blodgett pizza ovens are the best on the market and someone disagrees, Kevin lets them disagree. He listens.

   From his thirteen phone interview calls, Kevin achieves five extended phone interviews, with two of the five interviews leading to invitations for on-site visits. Kevin gratefully accepts. The other eight calls result in little or no new or supportive information.

   Kevin writes a Thank You note to all phone interviewees. Cost: $0.75 each including postage.

   Kevin also installs a contact management program on his computer and starts entering all the names and phone numbers he is collecting. Kevin is beginning to build a network.

Think about the point of this lesson over and over. Meditate during your quiet time. How many people would take the extra time to do all of this "extra" research? Remember that one percent category. Be the exception. You are a warrior. You are already exceptional. Now, put those talents to work and get rich!

Operational Limitations:

You can't learn everything you need to know from this course, from a book or from a college course. You've got to hit the bricks and speak with those people who are actually doing what you want to do. You want to open a pizza shop or design websites, talk to people who operate pizza shops or who operate graphic design studios.
Most small business owners are not going to fall over themselves giving you privileged information about the operation of their businesses. You must establish trust. Your sincerity and humility and honesty will create this working rapport. Ask good questions. Be quiet and listen to the answers. Offer some type of follow-up thank you.
Some will. Some won't. So what. Next.

Seeds for thought:

What interests or experiences do you have that could translate into a small business?
Who could advise and guide you on your talents and potential for small business success?
What actions did the roofer take to build his business?
Why did Kevin avoid immediately telling people about his plans?
How did Kevin survey his area to test the need for his restaurant?
What are the eight steps that Kevin has and will take to research the fundamentals of his proposed business?
What was Kevin's attitude in approaching other pizza restaurant owners?
How and why did Kevin vary his techniques between on-site and telephone interviews?
What did Kevin do to thank the people who have helped him with his research?
Do you think that the research that Kevin is doing will stand him apart from other people who start businesses?

Jargon:

   Career The job or profession chosen for a person's life work.
   Referral A suggestion to use or sell to a certain person or company.
   Advertising An informational message designed to influence a person's attitude or purchasing behavior.
   Testimonial A statement of praise from a respected source.
   Marketing The selling of goods or services.
   Research Gathering, organizing and analyzing information.
   Demographics Population figures, such as age, income, sex, occupation, family size, etc.
   Franchise A license granted by one company to another company to use its name, products, services, promotions, etc.

Questions and Answers:

   I want to produce music videos. A friend of mine sells newspaper advertising but she tells me that the average age of a newspaper reader is over forty. My market is much younger. If newspapers are out, what are some other marketing strategies?

   Traditional newspapers may not reach your target audience but most urban areas have a lively alternative press network. These are usually free newspapers distributed around college campuses.

   Social media outlets are a direct link. You need a Facebook and YouTube presence to showcase your work.

   How about producing your own podcast on iTunes? Give your audience a behind the scenes look at your business.

   Get your work seen. Let everyone know that you are looking for new clients to turn into stars.

   I'm interested in running a business from my home and I was thinking about perhaps a mail order business or Ebay business. How is n at-home based business different from other types of businesses?

   Well, the obvious perk is that the commute is non-existent.

   As always, you will follow the three principles: First, offer a quality product or service that the market demands and charge a fair price. You will have to depend on your research to find a product or products that are suitable to mail order or Internet sales. You will have to determine an appropriate price which includes, but is not necessarily limited to, your wholesale costs, advertising, postage, office expenses, salaries with benefits, and profit. You will have to test various ads in various publications and websites, or you will have to buy a snail mail or email list. Your next steps will be fulfillment of orders and accounting.

   Next, if you intend to receive repeat sales, don't forget to apply principle two and appreciate your customers by acknowledging orders with a thank you and by asking for more business. You will want to offer follow-up products to supplement your original offering.

   Lastly, apply the principle of copying success by finding successful mail order companies so that you can copy their strategies. If you are going the Ebay route, there are many books, courses and even Ebay conventions.

   I've gotten psyched from listening to your podcasts. I am working in the landscaping business for a nice guy who is no genius. Yes, there is no doubt that I can do what he is doing only much better. You're right, why am I busting my butt for him?

   Congratulations, it certainly sounds like your time has come. If you have the perseverance to complete these Master Small Business Courses, you should be in good shape to begin forging a new life for yourself and your family.

   To get started in the landscaping business, you need a lawn mower and the courage to knock on a door and say, "May I mow your lawn?" If the answer is "No", you go to the next door and then to the next. If you do this, in a very short period of time you will hear "Yes". You mow the lawn, you do a good job, and you charge a fair price. You can ask the homeowner if there are other landscaping jobs that you can do. You can ask for a testimonial. You can ask for a referral. You can ask if you can come back in a week or two and mow the lawn again.

   At the end of week one, you'll have a few dollars in your pocket. Keep some and reinvest some back into your business. Maybe you'll have business cards printed and a book of Thank You notes to send to your customers. The following week have a list of your landscaping services typed and photocopied. The next week have a sign painted that you can put on the front lawn to advertise your company. In a month or two, you'll be ready to lease a small truck. In six months, you'll be buying new equipment and hiring help. Go for it, Warrior!

Action Plan:

If you have experience in a certain type of business, why start an unknown enterprise from scratch? What businesses will give you an immediate advantage? Make a list of part-time businesses you've worked in, military specialties, hobbies, family businesses, and friends' businesses.
Think about how you can apply Kevin's strategy to your business plans. If you think that you already know enough, you are wrong. The Master Warrior is always studying and then testing that knowledge.
Go back and read the short story on the roofing business for a third time. This is a template for success. Remember, it's not the roofing business. It is any and all business to which you apply your Action Principles^® skills.

Support:

From Inc.com http://www.inc.com/welcome.html
From Fortune Magazine http://money.cnn.com/magazines/fsb/
From The Small Business Advancement National Center http://www.sbaer.uca.edu/

Inspirational Insights:

   Who Dares Wins
      Motto of the British Special Air Service

   Willpower is the key to success. Successful people strive no matter what they feel by applying their will to overcome apathy, doubt or fear.
      Dan Millman

   I stand for freedom of expression, doing what you believe in, and going after your dreams.
      Madonna

   "Motivation is a fire from within. If someone else tries to light that fire under you, chances are it will burn very briefly."
      Stephen R. Covey

   If one advances in the direction of his dreams, one will meet with success unexpected in common hours.
      Henry David Thoreau

   You only get out of it what you put into it. If you are a sheep in this world, you're not going to get much out of it.
      Greg Norman

   Great spirits have always encountered violent opposition from mediocre minds.
      Albert Einstein

   Bravery is the capacity to perform properly even when scared half to death.
       General Omar Bradley

   In life and business, there are two cardinal sins.. The first is to act precipitously without thought and the second is to not act at all.
      Carl Icahn

   The person that turns over the most rocks wins the game. And that's always been my philosophy.
      Peter Lynch

   God grants liberty only to those who love it, and are always ready to guard and defend it.
      Daniel Webster

   "The quality of a person's life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor."
      Vince Lombardi

   An act of heroism, of extraordinary courage, the grandeur of it, won't easily inspire us to act in imitation, but it can inspire us to emulate its author. For that, we should learn what we can of the whole experience of the subject, the hero's life, as it was before and after, and believe that trying to emulate the character it reveals is one tried way to prepare for the tests that might await us and gain hope that our courage will not be wanting in the moment.
      John McCain

   Never interrupt your enemy when he is making a mistake.
      Napoleon Bonaparte

   "The only way to get people to like working hard is to motivate them. Today, people must understand why they're working hard. Every individual in an organization is motivated by something different."
      Rick Pitino

   "Desire is the key to motivation, but it's determination and commitment to an unrelenting pursuit of your goal -- a commitment to excellence -- that will enable you to attain the success you seek."
      Mario Andretti

   "Anyone can dabble, but once you've made that commitment, your blood has that particular thing in it, and it's very hard for people to stop you."
      Bill Cosby

   Tomorrow's battle is won during today's practice.
      Samurai maxim