Becoming an Entrepreneur
Becoming an entrepreneur takes more than an MBA. The other night I watched a TV show, where Chef Gordon Ramsey went into a financially troubled restaurant to teach the owner how to turn it around. This has been a popular show for a while and Ramsey did his usual “shtick.” But what captured my interest was the owner/entrepreneur, who was allowing her business to fail, and what becoming an entrepreneur meant to her.
In this case, the owner had an MBA from a prestigious business school, and while in school had specialized in entrepreneurship…she was a well-trained entrepreneur—or was she?
Here were the business problems that surfaced during the course of the show:
- This entrepreneur had no previous“experience” running a business. This was her first business.
- She had no “core knowledge” for running a restaurant.
- There was a distinct lack of passion for her chosen business. She said she wanted an existing business so she would not have to “start from scratch,” and this opportunity just showed up.
- She exhibited no leadership, nor control, over her staff. The cooks did whatever they felt like doing, and the owner was mostly unaware.
- This business owner spent little time on the “front line” with her people—she was oblivious to what actually went on in the kitchen. The “front line” was in disarray and she didn’t know it.
- She could not test the products she was serving customers, because she was a vegetarian, and this was not a vegetarian restaurant.
- She was also dating one of her employees, which, in a small business, totally precludes any sense of leadership within the business.
- This entrepreneur was totally out of touch with her customers. The food was poor, and she responded to their immediate complaints with apologies, but never tried to fix the long-term problem.
- No improvements were ever made to the customer’s “experience” during the five years this person owned the business. The menu stayed the same, as did the décor, and dishes.
- The computer system for transmitting food orders to the kitchen was antiquated and worn out.
It was obvious that during her MBA studies, this person was not taught much about becoming an entrepreneur and actually operating a Business. Of course, Gordon Ramsey “fixed” everything and turned the business around—but for how long? It would be interesting to see a follow-up show to see just how much this person learned from Ramsey about becoming an entrepreneur.
Watch for my next post where I will give some tips on how to become an entrepreneur.
*
Women Entrepreneurs(?)
Where are all the women entrepreneurs? There is a scarcity of women entrepreneurs, and frankly, I don’t understand why. The rate of men entrepreneurs creating new businesses has increased from 370 per 100,000 population in 1996, to 420 per 100,000 population in 2008.
At the same time, the number of women entrepreneurs creating new businesses has actually decreased…from 260 per 100,000 population in 1996, to 240 per 100,000 in 2008—which is up from 200 per 100,000 population in 2007. Let’s hope the upward jump in new business creations by women entrepreneurs in 2008 will continue through 2009, and beyond.
For me, one of the most inspirational entrepreneurs in the world is the late Dame Anita Roddick, founder and creator of The Body Shop. When she first wrote Body and Soul, I would buy several copies at a time and give then out to clients and friends who were struggling to make their business succeed. I, and many others, believe Anita was one of the greatest entrepreneurs of modern times…so where are the women that should be following in her footsteps?
In 2007, twice as many men entrepreneurs started new businesses as women entrepreneurs. That is sad news indeed. Capability is certainly not the issue; nor is education; nor is opportunity…I’m at a loss.
However, it does lead me to think that perhaps not as many women want to start a business. However, this is just a guess on my part. That is why I would like to hear the thoughts and opinions of others, as to why there are not more women entrepreneurs. Please let me know your thoughts, and I will incorporate them into a later post on this subject.
NOTE: All data is taken from the Kauffman Index of Entrepreneurial Activity, prepared annually by Robert W. Fairlie, Professor of Economics at the University of California, Santa Cruz.
Unemployment and Opportunity
Well, unemployment rose above the 10 percent mark last month, and although the rate of lay-offs slowed, there is no sign that they will be halting anytime soon. Of course the politicos seem to take great pride in the fact that only 190,000 people lost their jobs last month. I am sure those 190,000 people take much comfort in that.
What do people do when they lose their jobs? I suppose many do nothing and just wait for their job to come back—if it ever does. Others decide to do something “special” with the new situation just forced on them.
Erik Proulx is one of the latter. In fact, he decided to make a documentary movie of what many people do when they become unemployed. The movie is titled, “Lemonade,” and will be released soon. The trailer can be viewed below.
(email subscribers view on my blog)
If the trailer is any indication, Lemonade should prove extremely interesting. Here’s what Erik had to say about his movie:
“…I hope even more that people walk away with an understanding of Lemonade’s intent: that losing your job can be devastating. But with the right perspective and a work ethic, it can also be the single greatest moment of your career.” —Erik Proulx
The point is that there are many things people could do—and for some, becoming unemployed provides the impetus they needed to follow their dreams.
As Erik said in a recent post “…Do something amazing!”
Have any of you ever been laid-off? What did you do when it happened?
#
Stop and Smell the Roses—Part II
This is part 2 of my Stop and Smell the Roses article which I posted a few days ago. In today’s post, I present a little different view of the life of a small business owner.
There certainly are times when we would rather be immersed in our business than anywhere else…at that moment. The satisfaction of accomplishment…the move toward fulfillment of our dreams—these are things that “civilians” cannot relate to. But, there is another side to the life of an entrepreneur, and a recent article at Please Feed the Animals pretty well expresses some typical feelings of most small business owners from time to time.
Again, because this article is so on point, I am including it below, in its entirety:
The Yin And Yang Of It – By Kathryn Proulx
I just read an article in the Boston Globe Magazine by Kara Baskin about how nauseatingly happy everyone on Facebook is, or pretending to be. It’s one big “Look at how cute my puppy is! See how awesomely psyched we are!” The truth is, no one wants to put up the bad stuff. Who wants to put up a photo of yourself in the jeans that you can’t zip, a screaming child in a grocery cart, or a depressed face staring at the television?
Well, I’ll have a go. Yin and Yang or, in this case, Yang and Yin.
Yang: There is some amazing stuff happening for Erik and me. We are so close to something we can almost touch it. The blog is doing great, the movie is truly amazing, and the job site is coming together…The payoff for this will be a business that has been completely developed through self-financing, the generous time and work of friends, and the parents helping out twice. And I will never lose sight of those blessings.
Yin: This has been no all-day party in a bouncy castle. Erik is busting his ass. He works all day and night. The freelance to finance us means no breaks. None. But, did I mention no breaks? Weekends, holidays, 5 am, 2 am. And, if Erik has no breaks, then I have no breaks. I enjoy being a stay at home mom, but I am no Mother Teresa or Mary Poppins. I am neither a saint nor a work of fiction. I am real, I have bad days, I get upset.
Yang: We are lucky to have health insurance coverage.
Yin: Our health insurance cost is tragicomedy ridiculous. We get so little for what we pay. I filled an Rx the other day and the co-pay was $50.00, AND we already pay over a grand for our monthly premium. I almost cried at the pharmacy. I looked up at the check-out person and said “Really?” and he replied with a wince, “Yup.” And I mean really, If our society can’t figure out this healthcare thing…we are truly pathetic.
Yang: We are bootstrapping a business. There is a great deal of pride in knowing that we are actually doing this. When we look back, we will never have to say, “I wonder what would have happened if…”
Yin: There is the stress of no financial routine. I am a creature of habit and I love predictability. These days, it’s all sweating by the seat of our pants. No regular paycheck means the days tick off like a gruesome metronome until M-Day. Mortgage. Erik and I have this lip biting look we give each other – It’s a cross between I know we can do this, and holy shit.
Yang: There are actually humans out there who provide services and possess a soul. I believe Lenny our mechanic is the leading example. When we went to pay for our car brakes with plastic he said, “I don’t believe in credit cards, have run my business 30 years without ‘em. You can post date me a check if you need to.” And God Bless Lenny.
Yin: Credit Card companies suck. I had 3 credit cards that I had paid off years ago. They had a combined excellent available credit that I was saving for a rainy day. Well, when the clouds started rumbling – they yanked the cards with no notice. I stood in the kitchen with the letters just shaking my head. Like a slow motion movie scene, I dropped the letters to the table…I couldn’t believe it. All of those years of responsible payment, good credit standing, and when I really needed it…poof. Then we watched as the credit card company ghouls jacked the rates on our remaining cards to criminal levels.
I could keep going – But, I think that’s enough for now. Yin and Yang. Shadow and Light. We must have both – Neither can exist without the other. And, shadows and light are what truly make the picture interesting.
Well, there we have it. Yes, we can certainly be IN our businesses smelling our metaphorical roses while the “civilians” are playing…but there certainly is a darker side to entrepreneurship as well. Would we have it any other way? Not likely!
Good “smelling” to you all.
Stop and Smell the Roses!
It seems that writers are always haranguing small business owners to take time off and not work so hard on their business—“work ON your business, not IN your business” is the catch-phrase of the day.
Then I read a post today, by Jim Blasingame, in his The Small Business Advocate Newsletter, and it was so to the point that I wanted to share it in its entirety as follows:
Most small business owners wish they had a dollar for every time some “civilian” presumed to pass judgment on the way we spend our time.
Of course, we shouldn’t follow our dream to the detriment of family, health, or spirit. But civilians should remember that “stop and smell the roses” is a metaphor. And every human gets to define his or her own metaphorical “roses.”
In fairness, it’s not the civilian’s fault, because they are typically those who work someone else’s dream, as an employee. Since their “roses” are not likely to be found where they work, it makes sense for them to think a small business owner should get out of the business more, or to question why we work on weekends, or to encourage us to play more golf.
When you see small business owners working on their business on a beautiful Saturday, instead of playing golf, don’t presume that they aren’t smelling their roses.
Here’s what civilians often don’t understand about entrepreneurs: We don’t have to leave work to smell the roses.
Thank you for being part of my community. I’ll see you on the radio, and on the Internet.
Jim Blasingame
The Small Business Advocate
Small-business owners may work weekends, or into the late night hours…or arise before daylight to work in their business; but that does not mean they are not smelling their own metaphorical roses. Something that all the “civilians” out there need to understand.
American Capitalism?
It seems the U.S. has, for quite some time, prided itself in being the true Capitalist nation of the world. With relatively low taxes, fewer government controls, and that indomitable American spirit of freedom, entrepreneurs have a free rein to start whatever business they want in the U.S. This is the land of opportunity, and that is why we lead the world in entrepreneurship—right?
Sadly, the above comments appear to be part of a giant myth. John Schmitt and Nathan Lane, of the Center for Economic & Policy Research published a paper in August declaring that the U.S. ranked second to last out of 22 countries in the ratio of self-employed workers to the total civilian workforce. Not surprisingly, the U.S. also appeared near the bottom for workers employed in small-business manufacturing. Much more surprising, was that the U.S. was also near the bottom for computer related services.
Here are a few comparisons of self-employment as a percent of total civilian employment, as published by the Organization for Economic Cooperation & Development:
- Greece – 35.9%
- Spain – 17.7%
- Britain – 13.8%
- Germany – 12.0%
- France – 9.0%
- U.S. – 7.2%
Of course, when throwing big corporations into the mix, the U.S. fairs much better, but what does this say about small business being the future of the American economy? What does this study say about the role of American small business in any part of our future?
So, what has happened to the entrepreneurial spirit in the U.S.? Why are our European and Asian neighbors beating us at our own game? Have we become so used to living the easy life, with cheap and abundant credit, that we no longer want to work the demanding regimen of the small-business entrepreneur?
It takes guts, passion, persistence, and very hard work to become a successful small-business person today—and it now appears that America has a dearth of people with these attributes.
What has happened in America…and can we retake our former position as a world leader in small business Capitalism?
My Book
Any business crisis can be managed before it becomes fatal . . . Be Your Own Turnaround Manager tells you how. Click here for more information.