Are You a Dreamer or Are You a Visionary?

Are You a Dreamer or Are You a Visionary?
A New Startup Aims to Change the Way Cars Are Sold
12 Ways to Spot Manager Material in Your Business
Will A New Immigration Bureau Affect Your Business?
Declining Profits, Not Mojo, is Behind Drop in Entrepreneurship

Posted: 01 Jul 2013 04:00 PM PDT

dreamer

Dreaming is fun because a dream can be anything. There are no rules, no approvals necessary and no one you have to impress or satisfy. You can turn off the safeties, play in traffic, and generally indulge in anything you want.

Businesses are built on dreams. Such dreams are unrestricted and creativity is free to flow. The fantasies that can be aroused are full of spectacles of wealth and the freedom such wealth seems guaranteed to create. There’s the gratification of receiving respect and accolades from powerful and accomplished people, and the self-satisfaction of controlling one’s own destiny. This is the temptation and the snare of starting your own business.

While dreaming is a necessary step, it is hardly the final one. The steps that follow have more requirements and they involve barriers and obstacles. When it stops being as easy as dreaming, many would-be entrepreneurs give up or perhaps never start at all. That is not such a bad thing. Starting a business is not for everyone, especially someone who is merely a dreamer. So what must a dreamer become to make it as an entrepreneur?

Vision is Dreams 2.0

To turn a dream into reality, there needs to be vision. What is vision anyway? Is it just seeing into the future? No, that would just be more dreaming. Vision is where you take your dream and apply the laws of physics, economics and human nature to make something happen. It is when you cut yourself off from all the wonderful possibilities that pop up in dreamland, choose one and make it real.

Not all dreamers are visionaries but all visionaries are dreamers. It’s just like all dogs aren’t cocker spaniels but all cocker spaniels are dogs. Vision is dream refinement and the visionary is the refiner.

Does business require vision? No. There are plenty of visionless businesses with visionless leaders. They plod along and fill a space in the marketplace. If that doesn’t sound very exciting, it’s because it isn’t. That lack of inspiration keeps things small, tight and constricted. In short, it neuters a business from having any meaningful impact in the world.

Does impact require vision? Indeed it does. It might seem grandiose to claim vision in a small business. But don’t forget, every big business started small. It started in someone’s head, it was a mere dream. Before it became reality, it became a vision. That’s how we got FedEx and Whole Foods Market, Ralph Lauren and Amazon. It’s also how we got Saint Benoit Creamery and Cafe Gratitude.

You probably haven’t heard of the last two. But that doesn’t mean they weren’t founded visionary people. Sometimes the vision is deep rather than broad. It’s your vision — you get to choose.

Why Vision Is Worth the Cost

You probably noticed that dreams are free but visions seem rather costly. To turn a dream into a vision, you have to take your dearly held dream, cut on it and throw away fanciful details and romantic notions. At first glance this may make vision sound like it takes all the fun out of things. But consider the difference between thinking about riding a roller coaster and actually strapping in to take the ride. Thinking about it is free but to get to that wild ride you have to buy the ticket.

Not everyone has the stomach for a roller coaster. But there are plenty of us who buy our ticket, take the ride, get off with a whoop and run to get in line to do it again. These people are the bonafide entrepreneurs who are truly visionaries.

There are some things in life you can only get by buying your ticket. Vision is one of them. Successful entrepreneurs can tell you it is worth the price. It is thrilling to see a dream of yours solidify into a vision that takes shape in the real world. It is exhilarating when your vision takes on a life of its own. It is exciting when other contribute to your vision, whether they be employees, customers or even competitors who drive you to give more and take it to a higher level.

Dreamers are a dime a dozen. Ideas are easy to come by. But vision requires sterner stuff. The upside of this truth is that it is a barrier to entry. Only the hearty even entertain the notion of being a visionary. Just making that choice puts you in an elite group.

So buy your ticket. Only ticket holders get to take this ride.

Dreaming Photo via Shutterstock

The post Are You a Dreamer or Are You a Visionary? appeared first on Small Business Trends.

A New Startup Aims to Change the Way Cars Are Sold

Posted: 01 Jul 2013 01:30 PM PDT

Aims tred

Customers want to cut down on the number of hours they spend in the showroom. Dealerships want to differentiate themselves from competitors and turn more test drives into sales. The answer may be a new online startup called Tred launched in the Seattle area last week. The service is slated to eventually be offered in other cities too.

Online businesses often eat into brick and mortar business profits. Amazon’s impact on brick and mortar retailers comes to mind. But the team behind Tred claims the service will improve sales for local dealerships too.

The company delivers vehicles from local dealerships to a potential buyer’s door for $19 per test drive and an undisclosed payment from the dealership, Reuters reports.

Tred employees deliver the car and go for the test drive with the potential buyer. They also provide a packet with a checklist of information intended to decrease the amount of time spent at the dealership should the potential customer decide to buy.

Tred also provides the buyer with a suggested retail price, online prices from sources like Kelley Blue Book and TrueCar and the dealer’s no-haggle price.

tred

In some ways, Tred’s approach reverses the concept of “showrooming” where customers shop at brick and mortar retailers only to purchase the items they see for less money online.

Instead, the company is seeking to increase the likelihood customers will buy from their local dealership clients.

Tony Rimas, a principal with Fraser McCombs, Tred’s largest shareholder, believes the service will help convert customers to buyers because prospects who order test drives through the site will be more likely to purchase.

The company will initially work with 30 dealerships in the Seattle area. Tred raised an initial $100,000 in funding from former GM CEO Rick Wagoner and an additional $1.7 million from several private equity firms.

Do you think Tred will boost sales for smaller car dealerships? What ideas does Tred give you for filling a need with your business?

Images: Tred

The post A New Startup Aims to Change the Way Cars Are Sold appeared first on Small Business Trends.

12 Ways to Spot Manager Material in Your Business

Posted: 01 Jul 2013 11:00 AM PDT

manager material

Hiring for startups isn’t just about finding people who can complete generic, repetitive job tasks. Entrepreneurs must make sure these new team members are ready to dive into practically anything, and then stay in it for the long haul to help the company realize its vision.

But once the business is past the early stages, it’s time to delegate systems to managers. Hopefully, you’ve already hired some — they just don’t know they’re the ones to step up to the management plate.

We asked members of the Young Entrepreneur Council (YEC), an invitation-only organization comprised of the country's most promising young entrepreneurs, the following question to learn how to spot top management material on your payroll:

“What one tip do you have for identifying potential managerial talent from within your current employee ranks?”

Here's what YEC community members had to say:

1. Look for Zeal

“As the founder of an ed tech company, I’m pretty confident that I can teach people most things, but I know for sure that I can’t teach passion. When you spot someone in the ranks who shows true excitement and enthusiasm for your mission and product, nurture them and encourage that zeal — you’d be surprised at the results. It’s not a specific skill set, just someone who believes in the mission.” ~ Jessica Brondo, Admitted.ly

2. Test Them Out

“If you need to identify whether an employee has potential for management, give him a chance to prove it. Assign a challenging and meaningful project he must complete with the help of other team members. Give him the role of team leader, and evaluate how well he performs in that role. Allow some time to go by, then grade him on skills like delegation, follow-through and communication. “ ~ Robert Sofia, Platinum Advisor Strategies

3. Identify Dedication

“I identify potential managers by seeing how they work and what that produces. Along with that, I find the people who lead by example. You want managers whose work goes above and beyond. They will inspire other employees to do the same as they work with those managers and see the example they set. If you find those people in your company and reward that spirit, you’ll create a really good work force!” ~ Kyle Clayton, Jackrabbit Janitorial

4. Recognize Accountability

“There's no real way to tell who would be a great manager. But the one thing to look for is accountability. Who raises his hand when a crisis emerges? Who takes the heat when things go wrong? Who sticks up for his or her co-workers when a mistake is made? One of the most important assets of a manager is grace under fire, so if someone already has that attribute, that's someone to keep an eye on.” ~ Jay Wu, Best Drug Rehabilitation

5. Look for a Natural Teacher

“When team members are naturally supporting and teaching others, that’s a great sign of managerial talent. It tells me that they know what needs to be done, are seeing others who struggle and are proactively helping them with education and training without being asked. Combine that with an employee who can hold others accountable to tasks and standards, and you have a great manager.” ~ Kelly Azevedo, She’s Got Systems

6. Look for People Who Take Action

“I look for people who take action. Specifically, I look for people who have told me what they’ve done instead of what to do. There are so many moving parts in a company. You need people who are not just self-starters, but people who take responsibility to try things (regardless of whether they succeed or not) and then tell you about that success or failure.” ~ Liam Martin, Staff.com

7. Look for Good Listeners

“In a startup, we’re often so focused on getting things done that we’re talking over each other, going with whichever idea is the loudest or the person who talks the most. Instead, look for employees who both listen and contribute. A good listener is a sign of a good decision-maker — they consider multiple points of view and really pay attention. They don’t always have to be heard.” ~ Susan Strayer LaMotte, exaqueo

8. Ask for Their “Why”

“I’m a co-founder of an executive search firm. We begin evaluating leadership talent by asking one simple question: “What’s your why?” Your “why” is your purpose for working. If that leader’s purpose aligns with the organization’s mission, we know that we can move on to the next phases of our evaluation process. Why? Because the people who excel in organizations are motivated by their missions.” ~ Brett Farmiloe, Markitors

9. Look for People Who Confront Problems

“I like to see people who lead by example, work hard, can see the bigger picture and can have the difficult conversations. In my experience, the latter is a critical and often overlooked attribute. I believe it was Ben Horowitz who said that he could judge the caliber of a CEO on his willingness to have the toughest conversations right away. Managers need to confront them head-on, not wait.” ~ Chuck Cohn, Varsity Tutors

10. Make Sure They Know Their Limits

“In addition to outstanding performance, look for people who have the ability to say “no” when they are overwhelmed or feel that they won't be able to do a good job. Managers are often overextended, and it's important to be able to focus on the areas where they can make the most impact. “ ~ Robert J. Moore, RJMetrics

11. Find Those Who Go the Extra Mile

“Staying after hours to knock out a project, the ability to handle stress (or mask it), communication style, loyalty and attitude are all important. People who go the extra mile as part of their personality (when nobody is watching) are great people to promote from within. It’s easy to tell who genuinely cares about the success of a company versus those who are only there to collect a paycheck.” ~ Ziver Birg, ZIVELO

12. Look for Initiative and Execution

“Look for the people who not only have new ideas, but who have the ability to make them move forward.” ~ Jeff Berger, Doostang and Universum Group

Spotting Photo via Shutterstock

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Will A New Immigration Bureau Affect Your Business?

Posted: 01 Jul 2013 08:00 AM PDT

new immigration

If you operate a U.S. business hiring foreign labor, particularly as a participant in the nonimmigrant visa program, beware. A proposed new federal bureau could be creating new headaches and new costs for you.

Advocates for small business are raising concerns again over a proposed immigration reform bill moving through the U.S. Senate. One of the red flags raised by the National Federation of Independent Business is over the bill’s creation of a new Bureau of Immigration and Labor Market Research.

Want to know how one proposed agency could cause such an uproar? Susan Eckerly, senior vice president of public policy for the NFIB, explains. In a letter to Senate Majority Leader Harry Reid (D-Nev.), Eckerly writes:

The Bureau is established with initial federal appropriations for setup and then self-funded through fees collected from employers participating in the nonimmigrant visa program. This self-funding mechanism shields the new Bureau from Congressional oversight since it will not be subject to future appropriations. This structure creates a strong incentive to increase the fees and impose additional and new fees on employers.

In her letter, Eckerly also expresses concern over a cap of 15,000 nonimmigrant visas for the construction industry, which she says, unfairly prevents small construction businesses from participating in the visa program.

E-Verify

Small business advocates previously have complained about expansion of E-Verify as proposed in the legislation. The E-verify system is an online method for employers to determine whether a worker is legally eligible to work in the United States.

However, critics of the system have raised concern over its cost and burdensome nature. The NFIB complains current fines would force many small businesses to close their doors. The organization also says lack of “good faith” language in the proposed bill fails to protect small businesses from unintentional violations. Finally, the NFIB says the bill is unclear about who would pay the cost of mandatory training for the system and how it would affect the hiring of subcontractors.

Will any aspect of proposed immigration reform adversely affect your business?

Immigration Concept Photo via Shutterstock

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Declining Profits, Not Mojo, is Behind Drop in Entrepreneurship

Posted: 01 Jul 2013 05:00 AM PDT

Has the United States lost its entrepreneurial mojo? That's the conclusion of a recent Wall Street Journal article that chronicles the decline in start-up activity in the United States over the past 30 years.

I disagree. While the article is right on the facts – entrepreneurial activity is on the decline in the United States – it's wrong on the cause. Americans are creating fewer and smaller start-ups than they used to because running a small business has become less profitable.

Let's start with the facts. Entrepreneurial activity is down. In 1977, 16.5 percent of American companies were newly founded Census Bureau data show. In 2011, only 8.2 percent were.

Americans created 2.56 new companies with employees per thousand people in 1977. In 2011, they generated 1.31.

Added to this decline in the rate of business formation has been a drop in employment by entrepreneurs. U.S. Census figures show that the average new business had 6.7 employees in 1977. In 2011, the mean number of employees in a new company was only 5.5. Similarly, Bureau of Labor Statistics data show that the fraction of self-employed people with employees has dropped from 20.7 percent in 1995 to 13.8 percent in 2010.

Why the decline in entrepreneurial activity?

The Wall Street Journal thinks Americans have become risk averse, leading fewer of them to start companies. But the data belie the risk-taking story. According to the Flash Euro Barometer, a periodic survey of people in numerous countries conducted on behalf of the European Community, Americans' attitudes towards the risk of starting a business have changed little in the past 12 years. In 2000, 27 percent of Americans agreed with the statement: “One should not start a business if there is a risk it might fail.” In 2012, that fraction statistically the same – 28 percent.

Let me offer an alternative hypothesis: the decline in entrepreneurship is the result of rational cost-benefit analysis by would-be entrepreneurs. Running a business just isn't as profitable as it once was. Internal Revenue Service data show that, adjusted for inflation, the net income of the average sole proprietor – who make up three quarters of all people in business for themselves – was 40 percent lower in 2010 (the latest year data are available) than it was in 1977.

The direct comparison of rates of entrepreneurship, small business profitability, and risk taking are compelling. Between 2000 and 2010, the per capita rate at which Americans started new businesses declined by 25 percent, and the income of sole proprietors fell by 23 percent in inflation-adjusted terms, but the fraction of Americans who thought that one should not start a business if there was a risk of failure remained the same.

Americans' entrepreneurial mojo is still there. But as the profitability of running a sole proprietorship has declined, more and more Americans are directing their mojo elsewhere.

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