Two Types of Happiness
When I was a kid, my family couldn't afford much. Brand-label clothes for school? Not for me and my sister. My mom was good with a sewing machine, she actually made our clothes even into jr high. Nike shoes? Nope, we had some off-brand. Even though these clothes didn't have the logos on them, I was proud of what I had. It was the best we could afford.
I just wanted to fit in, to be like the other kids. When you come from less, you strive to be average. I felt I finally caught up to being average in high school, because I had a job at McDonalds through most of it, and could actually buy my own stuff by then. I had a car, played sports, and a girlfriend. I never really did things to make myself stand out, having worked so hard just to feel accepted within the crowd.
In my 20's, I struggled with college and finances. I'm pretty sure I was broke for at least 10 years. I knew the right path to take with my engineering degree, but that didn't make it easier. It was a slow, arduous process. I finally graduated, while working full-time to pay for it all myself. I did find time in between to gain more social confidence, largely from working in the restaurant industry on weekends.
In my 30's, I focused on my career, and building income. I was sick of my trajectory of becoming average. I spent many months per year working offshore, or away from home. The oil industry has a way of doing that to you. The lure of large paychecks can keep us on the ocean, or in remote areas of the world that most would deem undesirable. I started building companies in my spare time, teaching myself new skills that could also be monetized. I became very, very driven in my 30s. I began to dream bigger, to set crazier goals, and take more action. It worked. I've achieved far more already, than I ever thought would be possible.
Now in my 40's, I've had more time to reflect on things. I've had the fancy cars, big house, international travel lifestyle. Those are great goals to motivate you. But, I've also learned that these things never keep you happy. You always want more, you always want something new, something better. The buzz of happiness that you feel when you achieve something, or hit a financial goal is great - but it is short-lived. It might last a few days. Maybe a week. I've never had any buzz last longer than a month. Seriously. This isn't about being ungrateful, it is just admitting reality. These things are what I now consider a temporary dose of happiness. Nothing wrong with it, but trust me - you will find no end to that chase. It doesn't sustain.
What truly makes me happy, then? I enjoy helping other people achieve their own goals. I enjoy teaching others. I enjoy sharing the knowledge that I continuously come across, if it will help someone. I celebrate their accomplishments, as if they were my own. I enjoy being the connector of people, and someone that people ask advice from. This is what makes me the happiest. I've done this my entire life, but I always thought it would be the material things and personal goals that would bring me the most happiness. I'm finding that incorrect, in recent years.
By all means, certainly pursue those luxuries that make you happy. It is great to set goals throughout your life. It is wonderful to celebrate accomplishments, and reward yourself. Chase those without guilt or regret. Just be aware of the temporary happiness that they provide. Learn the distinction between these spikes of happiness, vs permanent sources of happiness. But do both.
Your happiness, and your life will not be measured by the material things you attain. It will be measured by the number of people that you positively touch. Always remember this.
Tony
A Message To All Graduates
I still remember my graduation like it was yesterday. It was over 30 years ago. When my son just graduated recently, it brought those feelings rushing back.
I remember feeling glad that school was over. Those last few weeks were unproductive. I remember feeling like I must have accomplished something big, based on the emotions I saw on the faces of my family that day. I certainly wasn't used to all of that attention, but I rolled with it. I maintained a smile, when others had tears.
I remember feeling optimistic, yet scared about my future. I had some ideas for a career path, but nothing was solidified. It is difficult to feel certain, at age 18. There are so many unknowns, which would only come to unlock with experience.
I remember all the suggestions and advice received from others. It was a flood of ideas, of hope. Well-wishes. I remember feeling the anxiety of not wanting to let others down. I remember thinking to myself, "could I really do something great?"
I was saddened by silly thoughts, that I realized I'd never experience again. High-fives and hugs with friends in the hallways between class bells. The teachers that influenced me, or scolded me. Not seeing all my friends on a daily basis. We'd soon be scattered to the wind, to pursue our own paths. Many of those paths never cross, again.
If I could offer one piece of advice to you, something I wish I had known back then, it would be this. Dream! Dream bigger than merely aspiring for average. Believe in yourself, and never let anyone try to hold you back with their words. Set goals so high that they seem ridiculous, and make others doubt you. Do not settle, just because the majority do.
You may not have that confidence yet. Keep practicing. Confidence is purely a decision. It is simply a choice to be confident, it isn't something genetic. You may not have yourself figured out yet. That is okay, you have time. There is no rushing to discover your purpose in life. It will eventually come to you. It could be decades later. You are here for a reason. Never give up searching to find it.
In 5 years, you will not be the same person that you are today. In 25 years, you will not be the same person, either. Understand that we go through several phases of our lives. We get to constantly redefine who we are, and adapt to new things. This never ends. Always embrace positive change, and keep learning.
Most of all, be helpful to others. Always give more than you ask. Give a hand when you have nothing left. Teach others what you know. Strive to become better, every single day. Seek to positively impact the world, and all of its people. This will serve you so much in life, as the return is immeasurable.
Tony Whatley, Amazon #1 Best-Selling Author. (dreams can come true!)
Mondays
Sundays are generally a day for relaxing, for most people. As the sun begins to fade, late in the day, there is a common mindset shift away from our enjoyed activities. We begin to think to ourselves "Tomorrow is Monday." Very few people look forward to Monday. If you happen to be one of the few that do enjoy the day, congratulations. Perhaps you will remember a time when you didn't enjoy the beginning of the work week. We've all been there, before. Remember, we may also return to that point of dislike or unexcited mindfulness, due to any unforeseen circumstance. Your happiness may only be temporary, and could be altered by someone else's decision.
How many of you feel stuck in a routine? A stagnant, stale, repeating schedule. The thought of the stack of to-do's that you must tackle, the pile of paperwork or tasks that you must unravel. All of this stuff is just on pause, awaiting your return to your desk. It can seem overwhelming, at times. That phone, curse that annoying digital ring tone. It can't wait to annoy you again, evidenced by the ringing it is already making as you first walk up to your desk. You aren't late, the callers are just relentless. That email inbox. Sometimes you wish you could just click "select all" and follow it with "delete". You smile when you think of doing this. But, you know reality cannot be avoided. The emails will keep coming. The important messages get buried beneath the reply-all conversations from people who just love to read their own messages.
Sometimes you'll find yourself staring at a wall in your cubicle or office. You begin to think "Is this really my life? Is this it? Do I really have to do this for 40 years? There has to be more. This can't be my life." Then your logic steps in to justify things. "Well, they are paying me to do this. I guess I'll keep doing it. I need a job. I have bills to pay."
How many of you are feeling throttled back at your job? Knowing you could do much more, but are held back from your potential? You succumb to doing busy-work that really isn't challenging to you. You continue to provide value, but feel unrecognized for it. You are continually told to wait your turn for those promotions, while watching the current role-sitters fumble with incompetence. You can keep watching that show, because you know that the company rarely removes people. You might be waiting a very long time, decades perhaps. "Pay your dues" they say. Welcome to the no-passing zone. Stay in line behind that slower moving vehicle. Now, this isn't to disregard wisdom and experience, but some corporations fail to realize that some people never gain those attributes - regardless of age. You can laugh, because we've all seen cases of this.
So what do you do about it? Complaining at the coffee machine in the break room, or while eating lunch with your co-workers won't solve anything. Everyone does that, it is like a favorite pastime for colleagues. Complaining never solves anything. Only action that results in change, can alter your trajectory. If you don't know what your career trajectory is, take a look at your supervisor. Maybe their supervisor, too. That is the path you are on. When you evaluate their positions, pay-scales, and lifestyles; is it going to be enough for you? Are their current standings equal to your final goals in life?
These are the questions that few employees take time to consider. The sad reality is that most people eventually land on a plateau of being content. We get to a point where what we earn, can make us sustain just enough pain. It isn't until we feel true pain, and discomfort that we are willing to incorporate changes. We might be running on that treadmill with a tasty snack hanging just before our nose, just out of reach. Then we look at our clock and 40 years have passed by.
These thoughts are what always made me strive for more. While I've truly loved many aspects of my engineering / project management career in oil, I always felt I could do more. If I wasn't going to receive the potential during that 8 hours a day at work, then I'd find an alternate path on my own time. I started building my own companies, in my spare time. It has proven successful. I've essentially led a dual career for the last 20 years, in two completely distinct industries. Oil and Automotive Performance. I have created huge networks within both industries, without merging the two.
I've always striven to do my best, on both sides of this career division. No doubt I've put more manhours into the oil side, as it is more demanding of time. Financially, both sides have been about equal in the long-term. I just want to provide you with the knowledge, and courage to understand what is possible. You can make excuses, or you can make things happen. This was the basis for writing my book, Sidehustle Millionaire. I know there are thousands of working professionals out there, who have hit that glass ceiling within their corporate careers. Highly talented, driven people, who will never get the opportunity to shine brightly. I also know of younger generations of professionals that are hungry, and willing to take alternate paths.
When you aren't receiving the opportunities at your day job, sometimes you have to create your own. I hope to help thousands with this.
Tony
Control Your Fears
In May of 2017, I decided to do something. That was when I officially began the journey of a very public transformation. I've had a large social media following for several years, as a result of starting a couple companies that grew into thousands of fans and customers. But, they only knew me as a car enthusiast, or an oil industry worker. Even though I've been consulting businesses and mentoring startups for over a decade, I was only doing this privately. I didn't have the confidence to inspire and educate people in a public manner. We all have the fears of rejection, and failure. I decided that I would overcome these fears, and step into this big social media spotlight.
It wasn't easy. It still isn't easy. I'm only about a year into this, at the time of this writing. I've learned many things during this past year. Not all of them have been good things. I've learned that some people that you considered friends for years, would not support your goals. Even those who you have always supported, with their dreams. They will laugh at you, talk behind your back, and make passive-aggressive comments to try to take you down a notch. I'd say this was the most disappointing part of the journey, so far. If anything, it has been a great eye-opener, and has exposed these people for who they really are. For that, I am actually grateful. I have a very strong and determined mindset, and it is very clear that I do not let these critics stop my progress. Obviously, they must have underestimated my drive and determination.
Conversely, there has been a positive aspect to this. An opposite realization, which carries far more weight than what naysayers bring. For every negative critic that showed up, there have been dozens of unexpected supporters that also appeared. People that I may have misjudged, who I never thought would support me. Those relationships have grown stronger, and it has highlighted the good people in my circles. The amount of positive emails, texts and messages I receive completely overwhelm me. It tells me I'm doing something right.
Getting back to the topic of fear. I knew I had stories and lessons to tell. I just knew that I wasn't brave enough to deliver them to my own acceptable standards. I had to get better at public speaking. Some people actually rank public speaking higher than the fear of death. There would be no way around this fear. I'd have to trudge right through the middle of it, if I ever hoped to achieve my goals. So, I took a deep breath, and called myself a few derogatory names, and signed up to attend a local club meeting with Toastmasters International in my area. For those of you that aren't familiar with Toastmasters, it is a non-profit worldwide organization that provides education and practice in public speaking and leadership. Chances are, there are a few clubs near you. You can search for them on their website, Toastmasters.org
In less than one year, I went from having zero experience in public speaking, to competing - and winning at public speaking contests. Had you asked me a year ago if I'd be competing at this, I'd have laughed at you as the cold sweats began to form just thinking about it. No way in hell could I see myself doing that, especially in a short amount of time. But here is the thing, I was simply determined. Like everything in my life, I set goals, and then deliver on them. I attended every single Monday night, only missing them on vacations or holidays. I found great mentors, and a room of positive, supportive people, who feel more like family now. We are all there on the same mission, for self-improvement. I recently earned my Competent Communicator certificate, having completed 10 prepared public speeches. Something to frame, and be proud of. Very few start and complete that journey. Most take several years to do so. There are no shortcuts.
I feel that anyone that joins, and participates within Toastmasters will be forever changed for the better. In one year, you will not be the same person that joined. I found so much value here, that I became a VP of this group. I plan to stick around and mentor others. I also have plenty of room to improve. Watching the weekly transformations and improvements of others in the group, is something astounding to witness.
Anyways, here is a contest speech that I delivered a week ago, on the subject of FEAR! I hope that the story captivates you, but more importantly, the message is heard. This is how I live my life, nowadays. If something makes me feel fear, I go after it and try to overcome that fear. Enjoy.
Reasons Why We Do Not Start a Business
There is no shortage of excuses available, when it comes to the consideration of starting a new business. Many people have simply created mental roadblocks, and set self-imposed limits of their own potential. Most of us already know the answers to our hardest questions, yet we still seek validation to take that first step. The internal struggle is the real battle here, nothing else.
These are the results that I compiled, while gathering research data for my upcoming book about starting a business. I sent out inquiries, and received over 100 responses back. These people consist of current business owners, and aspiring entrepreneurs. There was no specific industry requirement, no age or gender bias, nor revenue target. We received feedback from at least 5 different countries, as well. This effort was purely to collect the main reasons that people do not start their first business, and to identify the main drivers to starting a business. While I had their valuable attention, I sought to ask for lessons learned. What their challenges were, and what changes they would make if they were to start all over again.
The data below is expressed in a percentage, based on the number of responses received. I removed any single-digit responses, to provide more focus on the predominant replies.
1. What were the top 3 reasons that kept you from, or delayed you from starting a business?
- 58% Fear, self-doubt, lack of confidence
- 56% Lack of money or funding
- 36% Lack of knowledge, experience, or education
- 33% Already had comfortable salary / benefits career
- 25% Lack of time
- 25% Too many ideas, lack of focus
- 18% Negative influence from friends or family
No surprises here. The most popular answer that holds people back is simply fear. Fear of failure, fear of rejection, fear of becoming successful. If anything, this shows you how important your mental mindset is. These people had to overcome these fears, and take that crucial first step. Fear isn't something tangible, you can't put your hands on it. It is purely a mental roadblock, which you will need to put in serious effort to improve upon. It is unfortunate that so many people are held back from their potential, simply by a lack of self-confidence. Confidence is purely a decision, it isn't a genetic characteristic. You simply have to decide to be confident, even if it feels uncomfortable at first. This is how you build real confidence, by trying it more often.
Lack of money was near the top, as expected. However, many of these business owners mentioned that the money thing was mostly a figment of their imagination, prior to getting started. Once they actually started the company, they realized how inexpensive it can be to actually start a business. Not every business requires huge funding, many could be started for a few hundred bucks. So, before you put money as a reason not to start, be sure to evaluate if the business you want actually requires a large investment. You may find it doesn't.
Feeling as if you do not have enough experience or knowledge was also similar to money. It was a perceived roadblock, but many entrepreneurs discovered that they were able to start and also learn along the way. The truth is, we never quit learning. Don't be afraid to jump, and learn as you go.
Rounding out the bottom of that list, is one topic that I address quite often with clients. The power of influence by their inner circle of friends and family. People love to keep relationships and attachments, even if those are deemed caustic. It is difficult for some people to let go, and they try to please everyone. If you are not being supported within your circle, it may be time to find a better circle. Spend less time with those who hold you back, and replace them with people that encourage you to improve.
2. What were your top 3 reasons to start a business?
- 82% Independence or flexibility
- 73% Increase of income
- 35% Gain a sense of personal accomplishment
- 24% Following passion, fun, or enjoyment
- 20% To help other people, or build legacy
Freedom! There was certainly a breakaway response within this pack of responses. While the potential increase in income was important to most, the idea of being in control of their own destiny was the most important reason to start a business. How many of these resonate with you?
3. If this is a side-hustle business, what reasons keep you from quitting your normal career?
- 49% Need for steady income or benefits
- 20% Enjoy their current career
The funny thing about this question, is that I did not specify any amount of responses. But, we ended up with basically two reasons that people would start a business on the side of their normal career. Several could not walk away from the stability their 9-5 offers, and a few even loved their current job. They just wanted to increase income, on the side.
4. Once your business was started, what were your 3 most difficult challenges about running the business?
- 40% Managing cash flow, financial and taxes
- 31% Lack of knowledge or time related to salesmanship or marketing
- 29% Managing partners, employees, or contractors
- 20% Time management
- 16% Managing growth or expansion
- 11% Work / Life balance
Did you know that a recent study from the US Bureau of Labor Statistics shows that 20% of all new businesses fail within their first year? And, 50% of those businesses fail within 5 years. The number one reason businesses fail is cash flow. Some data suggests as much as 80% of failed businesses are directly related to cash flow problems. Not pricing their goods or services properly, not generating enough revenue, not collecting on overdue invoices, screwing up payroll, improperly filing taxes. Money is the lifeblood of your company, and it is essential to manage it properly. You should make financials the #1 responsibility in your business, because you cannot operate without money. As a business consultant, I can't count how many times I've seen small businesses fail because they got behind on bills, and were just trying to drum up new business to pay for the old debts. It always leaves the last round of customers screwed, when they shutter the doors. Get ahead of that, be sure to keep enough cash on hand to operate your business, and flow that money through the process properly.
Marketing and Sales seems to be a really weak spot for new business owners. Pay extra attention to this! Just because you are a technical wizard, or have some awesome talent or knowledge in an area, it doesn't make you good at creating sales. That is Business 101, to create a transaction. Too many people jump into starting a business, but have no clue on how to market or advertise, and close the deal. There are numerous books, courses, and coaches out there that can help you with this. Do not take this lack of skill lightly!
5. Has your business has achieved your original goals? Choose one.
- 47% Have not met goals
- 22% Exceeded goals
- 13% Met goals
This result from the feedback shows us the hard truth. Not every company is successful, in the eyes of the owner. I know that it seems trendy for people to want to become entrepreneurs, but the reality is that there is still a lot of work required. Many times, we are buried under trivial tasks that we should be delegating or outsourcing, and cannot accomplish the priority tasks. There are many important aspects to running a business, and many times you feel like you are trying to coordinate chaos. We spend too much time trying to fix our personal weaknesses, rather than hire others who can compliment our strengths.
6. If you could do things all over again, what would you do differently?
- 31% Started sooner
- 15% Find coach, accountability partner, or mentor
- 11% Be more focused on one business, or the core business
I received numerous responses to this open-ended question, but these are the only three that got into double-digits of responses. Starting sooner was certainly the most common response, and this should help encourage others to take that first step. There is a Chinese proverb that I enjoy reading that goes like this: "The best time to plant a tree, was 20 years ago. The second best time is today." Those who responded wishing they had started sooner, no doubt feel this tree proverb in their mind. The second highest response was unexpected, simply asking others for help. Even though we hear successful people always suggesting to find a mentor or coach, it seems too many of us put this task aside. We allow our pride, ego, or anxiety, to hold us back from asking the advice of others who have done what you want to achieve. I've been guilty of this myself, and I've committed to asking more people for advice from now on. You see, even a business consultant and mentor still needs a mentor! Learning is not something that you have done, it is something you DO. Always. Never be afraid to ask for help, but just be respectful of other people's time. And, never hesitate to help others, when called upon.
I hope this data is useful for your mental processing, in determining where to start. I hope it shows you that the fears and thoughts you currently have are common, and that you aren't alone. Maybe this will help reduce the fear. I'll be capturing the main questions and responding to them in more detail within my book. This exercise was important, as I wanted to be sure that I can provide everyone with the best book possible. The book that confronts, and answers the hardest questions. I greatly appreciate all the participants taking the time to respond, and I hope you will find this data useful for your own business endeavors.
-Tony
How To Name Your Business
One of the more popular questions I receive from aspiring entrepreneurs, is how to come up with a business name. I'll share my suggestions to help you, and give you some general rules to ensure that you pick an excellent business name.
Be Creative
Do some brainstorming. Write down several 1-syllable words that you feel represent your product or service. Write down as many as possible, whatever comes to mind. Then, try combining two words to create something. Shorter, easy to spell words are the best. Also, think of all the businesses out there that are now made up words. Google, Uber, Waze, YouTube, Facebook are all made up words, which didn't exist in the past. But, with powerful branding, everyone knows them. It is important to realize that your business name should also become your website address. You'll want a website address that is as short in character length as possible, easy for people to remember, and something that could easily be spelled if you said the website name to someone verbally. When people can't remember the business name or website, they won't try searching for it, either.
Avoid Your Home
I typically suggest that you avoid using regional specific business names. While that worked well in the past, it doesn't serve the digital age well. In fact, having a regional name could limit your customer reach outside of the region in your name. "Houston Tires", "Nashville Apparel", "Ohio Electronics" could give the perception that you only cater to a local market, and are potentially too small. If you want customers outside of your city, and state, then avoid using those in the name. If you have dreams of franchising your idea across the country, then certainly avoid regional naming.
Website Research
Now that you've come up with a few ideas for business names, you must test them on a domain register. That is a fancy name for a company that will sell you the rights to the website address, also known as the "domain name". I prefer namecheap.com to purchase and host my website domain names. Go to their front page and type in your business name idea into the "Search Domain" box, to see if someone already has that website address, or if you can purchase it. Try to avoid using any hyphens or underscores in any website address. An example, iconicservices.com is better than iconic-services.com, because you can't verbalize a hyphen when speaking the name to someone. It also sounds dumb, when you try to. "My website is iconic hyphen services dot com". Also, you will only want domain names that end with .com or .net, none of the other silly ones. These are perceived to be more professional, legitimate websites. Buy both .com and .net variations of your name, if available, to keep someone else from cloning your site. You can make both addresses redirect to your business page, later. If the website isn't available, I'd say to move on and try some other names. This is very important! Those made up words that were mentioned earlier, are a direct result of website branding purposes. They wanted to have a short, memorable website address. You'll find that many of the names you thought you were creative at making, are already taken. This is why they resort to making up words.
In summary, the most important factors for a creating business name, in this digital world:
- Is the website address (known as a "domain name") available to purchase? Only .com or .net should be used, as the perception is that these are more professional.
- The name can be a unique or made up word. Nobody used to know what a Google, Uber, or Facebook was.
- Is the name easy to remember, and easy to spell without someone having to ask how to spell it? This is important for verbal communication to customers.
- Is the name specific enough for your product or service, yet also broad enough to cover future products, services or expansion?
- If possible, avoid regional-specific names. Especially when you want to serve the world. "Nashville Apparel" could possibly limit your growth, outside of Nashville.
Best of luck! Have some fun with this.
Look In The Mirror
Do you want a better life? It starts with you. How badly do you want it? Are you all talk, or are you actually taking action to improve yourself?
If you want to achieve levels different from where you currently are, you have to redefine yourself to grow into that higher level. It would be absurd to think about massive lifestyle changes happening, without investing in yourself to create and master those new opportunities.
Want to be the boss? How much time have you invested in learning how to become one? Read any management books in the last month, or take any recent courses on leadership? If you said no, then you are not serious about it. Rest assured, other people you know are investing in themselves, and improving. They will get that job.
Want to start a company? How many books have you read on doing so? How many mentors have you approached with questions? Done any legit research on the business niche? Have you done a simple business plan to estimate the financials and returns? No? Then you aren't ready.
We should always look into ourselves first, if we want changes to happen. Rid yourself of things that do not move you closer to your goal. That may include bad habits, excuses, negative people, and your attitude. Make these changes to yourself, and watch the opportunities arrive. Most people simply hold themselves back, but they do not realize it.
Become the best version of yourself, and seek to improve every single day. Little positive changes, performed over a long time, will bring exponential gains.
You Only Get One Ride
The trajectory of your life is always just one decision away. Our time here is relatively short, so why not make the decision to make the best of it?
Quit aspiring to be average. Quit putting in average effort, and expecting more than average results. Would you buy products or hire services that are advertised as merely average? Hell no. Then realize that an average life is not for you. Average is boring, and robs you of ever experiencing your full potential.
Friends, we only get one ride. There is no reset button at the end of our lives. You can decide to improve, and chase those dreams...or you can be destined to die with regret. Spend some time with those near the end in their years, and they will tell you regret is awful. And, they have run out of time. Do not stay on that path. It is your choice to make, today.
Regain your health and fitness. Educate yourself with books and mentors. Be willing to take risks, and fail. Get back up. Accept and love yourself. Choose to be confident. Pay no attention to what others say about you. Be who you were meant to be. Build the memories and experiences that will last you a lifetime. Explore. Be kind, and helpful to others.
If you want something, ask for it. Take action. Strengthen relationships. Hug them before they are gone. Before you are gone...
Quickly Evaluate Your Business Ideas
The most difficult question for an aspiring entrepreneur, is where to start. First, you need an idea for a product or service that you could earn income with. Even better, have several ideas to choose from. I always recommend that someone follow their passions, and start a company based on something that they love. Money follows passion. Many businesses fail because they were started for the wrong reasons, lack of management skills, distraction by something else that was more shiny, or losing the drive to put in the hard work. When you work within your passions, you are less likely to give up, and more likely to push towards success. Your passions can be identified with one simple question: If you could do one thing every day for the rest of your life, and get paid for it, what would that be?
Barring the wisecrack answers of “Semi-Pro Wine Drinker” or “TV Binge-Watching Expert”, you still have to be realistic with your definition of passions. Is the subject within your skill set, or knowledge capability? Not everyone can be an NFL starting quarterback, or create quantum physics theories. Some level of self-awareness is certainly required. You also have to come up with the idea to earn income from the idea, somehow.
With your business ideas fresh in your mind, now it is time to evaluate each of them individually. To do this, you should first come up with some short-term and long-term financial goals. I recommend 1 year, 5 year, and 10 year goals. Measurable, actual numbers are required here. You will need to define a specific goal that can be quantified and pursued. Saying “I want to be rich” is not a measurable goal. There is no value to measure against, and “rich” is a subjective description that is just based on perspective. A better example of a measurable goal would be “I want to earn $200,000 per year” or “I would like to have $5 million saved in 10 years.” Both of those are good specific goals, as there is a dollar value and a time value within each. This makes them measurable, and you will also know when you achieve those goals. I do not typically recommend just attainable, easy goals. I usually recommend aiming higher, as larger goals are more likely to motivate you, and keep you motivated. When people set goals too low, they get lazy and become content.
With your defined financial goal in mind, you can then reverse-engineer the yearly, monthly, weekly, and daily income required to achieve that goal. This exercise will also test the validity and likelihood of this business idea, to achieve the income level of your goal. Here is an example.
Let’s say you want to open a small store in your town, and your financial goal is to earn $200,000 salary per year. If you do some Google research on the type of store you are interested in, you can find the average Net Profit Margin for similar businesses. Net Profit Margin is the pure profit, after overhead costs are subtracted. Overheads are your building lease, utilities, cost of goods, advertising, reinvestment into the company, employee pay, services needed, and other associated costs needed to operate the company. Let’s assume your business idea usually has an average 10% Net Profit Margin. As a small business owner, that remaining net profit could be the same thing as your personal income.
To earn $200,000 income per year, at a 10% Net Profit Margin, you would need to have a sales revenue of $2,000,000 in products or services per year. For a small business owner, the simple formula is:
Income = Sales Revenue x Net Profit Margin
$200,000 = $2,000,000 x 10%
Now you must accept the potential harsh reality of your business idea. Does it seem possible to achieve the calculated sales revenue, to reach the financial goal of your income dream? If your business idea isn’t scalable, or your potential customer base isn’t large enough, or your competitors have too large of a market share already, it may be very difficult, if not impossible, to achieve the sales revenue that you need to achieve the income you want.
This quick check will tell you if the idea is a waste of your time, or if the idea needs to be refined to improve the potential. You’ll find that many of your ideas do not align with the financial goals you have, as this is quite common. Your choice is to relax those financial goals, or to think of some better ideas. Don’t waste a minute chasing an idea that will never potentially arrive at the goals you have set. Create, plan, and execute only the best ideas to potentially reach your goals, backed with that important passion aspect.
Now, get after it!
Managers vs. Leaders
Are you currently a manager, or do you aspire to become one? Do you consider yourself a leader? The reason there are two different questions, is because there could be two different answers. Most people believe a manager and leader are the same thing, but this statement is not accurate. Anyone who has worked within any company has seen proof of this. Within all companies, the role of manager is certainly an important one. The position is purely authoritative, intended to keep the employees following the process and rules. One could even argue that the leadership aspect of some of these manager roles is not always required.
Not all managers are leaders. "Manager" is just a job title. Conversely, not all leaders are managers. Some individuals lead from behind, regardless of their corporate rank. These people motivate and inspire everyone around them to perform at a higher level, by offering encouragement and leading by example. Leadership is a personality characteristic, not related to any specific title. It is something you have to decide to become, and practice to improve.
Within our corporate world, many people get promoted into management without having the leadership persona. Someone could be an ace at performing within a skilled support role, but that doesn't automatically make them leadership material. They may have mastered the intellectual IQ requirements for that technical role, but may have not developed the EQ (Emotional Quotient) to lead people. Some managers are just not interested in managing people, but will accept the promotion for the title, status, or salary increase. Once in that position, we find they under-perform compared to their previous roles. These managers still want to focus on the technical side of their role, and disregard their human resource requirements. Managers like this will cause your talented employees to look elsewhere. Most people quit their boss, not the company. When considering the promotion of someone, companies need to stop prioritizing tenure ahead of talent. People should never deserve a promotion, they should earn it. Great companies will be able to identify which individuals will flourish within specific roles.
Each of us has experienced good and bad managers. Fortunately, we can learn from both. The bad managers exhibit indecisiveness, negative attitudes, and poor business habits. These failures provide us with invaluable experience. If you take a look back along your career, your best managers will be easy to identify. These are the people you still retain contact with, even after years of having worked together. You still bounce ideas, ask advice from, and network with them. They likely have become friends with you. The main difference between the good and bad, is that the good managers actually cared about you and the rest of their team. This is what separates managers from leaders. Leaders care about the individuals on their team, and understand what uniquely motivates each person. Leaders never ask their reports to do things they would not do themselves, or haven't done themselves. Leaders are interested in the personal development of their team members, and do not avoid the career development plans or mentoring responsibilities. Leaders want each member on their team to succeed within their current role, as well as their future roles. Leaders do not hold down superstars.
Take this moment to evaluate yourself as a leader, with one simple question. Would your team follow you anywhere you go, or will they cheer the day they quit working for you? Hopefully the answer is a positive one. If not, hope is not lost. This is something you can improve upon. Start today.