The Intelligent Entrepreneur by Bill Murphy – Apr 2011

 Business  2 Responses »
Jan 242012
 


The Intelligent Entrepreneur: How Three Harvard Business School Graduates Learned the 10 Rules of Successful Entrepreneurship by Bill Murphy  ★★★★★

For the college entrepreneur, being accepted to the the Harvard or Stanford Business Schools is the Holy Grail of Opportunity. Each year, thousands apply and only a few are accepted into these elite programs. The graduates are assured lucrative job offers and contacts for which others would kill. This book follows three HBS graduates who chose another popular route, entrepreneurship. These three turned down the six figure salaries for the opportunity of making something big on their own.

I picked up this book in the hopes of gleaning some information to feed my desire of someday having my own company. What I came away with was unexpected discouragement. I am sure this wasn’t what the author went for, but after tracing the route of these three Harvard graduates, I got the distinct impression a) I could only make it if I attended the Harvard Business School and b) if I didn’t create a multimillion dollar company in three years, I wouldn’t be a successful entrepreneur. The stories were interesting, the advice pertinent, but the loftiness unattainable.

The three chosen subjects each started Internet companies: The Ladders, Military.com and Bluemercury (an online cosmetics retailer). Each were successful through the tenacity and strength of their founders. Each survived through their contacts made at HBS. In fact, one of the lessons I learned from the book, intentional or not, is the value of high-powered contacts, both for advice and cash. It is discouraging to anyone who hasn’t gone to the elite schools to ever hope of meeting these kinds of players.

The chronicle of their respective business startups was very educational and interesting. The book is very engaging, the stories very well written. It is obvious Murphy is a reporter. His style and experience shows through – I cared about their problems and successes. I cheered inwardly as Marla made the shift from sinking online retailer to successful brick-and-mortar boutique. I applaud the success they achieved and grumbled at the poor people management decisions and bad behaviors.

I came away from the book with a fresh look at the hyper-charged life of the successful big entrepreneur, with multimillion dollar investments and even larger payoffs. What I didn’t find was much value for the small entrepreneur. It felt that the message was “if you want to be successful, you better go to Harvard or Stanford”. That just isn’t an option for me, so I was left wondering if I had any business even considering starting my own business. That wasn’t what I was hoping to find.

 Posted by Dan at 7:00 am  Tagged with: , , , , , ,

Five Steps to Gaining a New Skill

 Focus  1 Response »
Jan 132012
 

My oldest son moved out to his own apartment recently. This week he called up with question. “Dad, do you have any scrap plywood?” I always have scrap plywood. I just finished making a set of shelves over Christmas. I have plywood everywhere. “How about other wood?” Yes, I have an abundance of scrap all over the shop. “Think I could make a little table out of it?”

For years I have wanted to pass on the woodworking tradition to my kids, but they haven’t shown much interest. My son’s request was music to my ears. He drew up a plan for his table, using the skills he gained in a high school mechanical drawing class and came by Monday night (right about dinner-time. He’s not stupid.) to show me. I suggested a few refinements. Tuesday night, he came back and (again, before dinner) we cut up all the pieces. He stayed late (I went to bed – he was wide awake as he works night shift) and put it all together. Wednesday night (again, before dinner – told you he isn’t stupid) he added the finishing touches and took it home to put on some finish.

As he was loading up Wednesday night, he made the comment that he wanted to get started on another project. He knows he is always welcome in my shop. His comment got me thinking, though. For years, I have been trying to get my kids to get off the couch, shut off the computer games and do something “productive”. Within a week after moving out on his own, here he comes, looking for help on a project. What changed?

After thinking about it, I believe there are five steps to overcoming inertia and getting started on a new project.

  1. Identify a Need. In my son’s case, it wasn’t until he moved out and discovered he didn’t have a place to put a TV other than on the floor that he was interested in owning a table. When he saw the cost of buying a table, the need became apparent. He had his parameters: Get the TV off the floor where he could see it without spending any money.
  2. Draw on your strengths. My son knew he didn’t have all the skills he needed, but he took it as far as he could on his own. He came over to the house with a plan in mind. He quickly drew up a plan on his own, not only of the finished product, but each piece required, complete with measurements. His class had taught him how to do it. He actually apologized for not drawing straight lines because he didn’t have access to a good ruler. He took it as far as he could with the skills and experience he had. Then he asked for help.
  3. Stack the odds in your favor. This step is key, I believe. The best way to reduce the risk of failure is to find help. Find someone who has “been there, done that” to guide you through the uncertain steps. In this case, my son called me because he knew I had been making furniture for years. He took it as far as he could and then enlisted my help to get it the rest of the way. I offered a couple design changes from my years of experience and reading. Listening to my advice improved the stability of the table and increased his odds of getting the table he desired.
  4. Adapt to adversity. Things don’t always go as planned, even if you have a mentor. After I went to bed, he was finishing up the assembly and had to trim two pieces to the correct length. He accidentally cut one too short. He didn’t stop, though. He improvised. He adapted his plan to accommodate the situation and actually ended up with a better design (in my opinion).   Don’t let little set backs be discouraging. Adapt, improvise and overcome.
  5. Do it YOUR way. When it came to the final sanding and preparation for final finishing, I made some suggestions, such as sanding out all the burn marks left by the table saw. My son, however, decided he liked the look they gave – more rustic and ‘antique-ish’. He was even trying to think of a way to add more marks to the table top. Definitely not my style, but I stepped aside to his wishes. It is his project and he gets to do it his way. I tried to remain the “guide on the side” instead of the sage on the stage”. Don’t let others, even the experts, take over the project. Do it YOUR way. Take responsibility for the outcome and be proud.

What’s the next step? Build on Success! I hope my son continues on, finding the next project he wants to conquer and improving on the skills he gained. I know I have plenty of scrap in the shop if a future project should involve wood. Now if you will excuse me, I have to go search for the buttons that popped off my shirt. I’m proud of you, son!

 Posted by Dan at 6:54 am  Tagged with: , , , , , , , , ,

The Day After a Goal

 Focus  2 Responses »
Oct 192011
 

What happens when you accomplish a goal that you have been working on a long, long time? Weeks and months of work culminate and the euphoria of accomplishment is nothing short of sweet bliss. Everyone congratulates you. Back slaps, toasts and congratulations abound. Life is good.

And then you wake up the next day. What’s next?

When I was young, I went to a vocational-technical school to learn computer programming. This was after two years of physics had taught me I didn’t want to be a physicist or come anywhere near calculus ever again. Upon completing two associate degrees, the prospect of two additional years for a Bachelor of General Studies didn’t thrill me. Besides, companies were offering me money. Real money. Several years later, though, when I switched to management, my boss told me I needed to finish the degree. Off to night school I went, the good little student. My family sacrificed time with me and two years later I finished! I believe I spent on average twenty hours each week beyond working full time to get a bachelors of business management. I received lots of kudos, hugs, praise and applause. And then I woke up the next day. Now what?

As the last class was winding down, I began to think about what was next. I knew, having lived with myself for much of my adult life, that if I didn’t have a plan, I would end up with a 20 hour per week television habit. I didn’t want to happen. I began to think about what else I could do with myself to fill the free time.

I set another goal. This time, I was going to finish something I had abandoned as a child. I signed up for piano lessons. I started the week I graduated. Soon, I was pounding away at the same tunes my kids had been practicing just a few months before. I never asked them what they thought of Dad struggling with the same music they did- perhaps I should have.

I’ll never forget my first recital. There I was, the 38 year old, sandwiched on the program between a 6 year old and an 8 year old. I played a song about the same skill level as the kids. Everything went perfectly. Until I hit the last note. I blew it completely. The entire room cringed and broke into laughter, with me leading the way. What a hoot!

So, what’s the moral here? When you check off a goal, have something planned to fill its place. Don’t slack off and lost momentum. Take charge and continue working toward something new. Yesterday, I completed the Professional Project Manager certification. While it wasn’t nearly as time consuming as a bachelor’s degree, I found myself wondering what I was going to do today, now that the studying and worrying is over. Time to reload, grab a goal from my Someday / Maybe list. Time to brainstorm the end result and develop a plan for attaining it. Time to make something cool happen.

 Posted by Dan at 6:30 am  Tagged with: , , , , , , , ,

Pivot: Layoff

 Focus  6 Responses »
Jun 062011
 

Layoff is one of the most feared words in the English language. Through no fault of their own, the job has disappeared. Layoffs are usually unexpected, traumatic and devastating to both the family and individual being let go. No one wants to be laid off.

I was laid off from the small software company I worked for back in 2004. Perhaps I was nuts, but I actually volunteered. The company was laying off 40% and I didn’t believe for a minute that would be the end of it. As a manager, I knew it was coming and had a view of the future most didn’t. I knew our parent was planning to sell the company. The severance package being offered was not likely to get better with the next round, so I decided to take it.

Starting in mid-January, I became unemployed. I took a vacation with the family and a little time for myself. On the surface, this may have looked foolish, but we had the money from the weeks and weeks of unused vacation time I had accrued. Since I hadn’t taken the time with the family earlier, they deserved it. We had a wonderful time and it was very relaxing, especially knowing nothing was piling up back at the office. Yes, I had that nagging concern of not having a job to go back to, but the severance package went a long way to keeping those feelings at bay. I had a year’s cash in the bank.

In March, I began investigating franchises, thinking I wanted to start my own company.Over the next few months, I looked at several, but couldn’t bring myself to pull the trigger on any of them. I came very close to one, literally a day away from signing. However, I developed second thoughts and backed out. I decided owning a franchise wasn’t for me. It was time to find a job.

It quickly became apparent that I hadn’t developed a network over the years. I had to start from scratch. With the help of a great coach, Paulette Esposito, I began networking in earnest. Through the summer of 1994, I met with over 125 fascinating people in all walks of life, position and places. It was an education in people and I had a front row seat.

In October, I finally got the break I had been hoping for. Through a networking contact, a job was created for me, where I was the only applicant. Those are the odds I was praying for. Corporate America being what it is, it still took until the following February for all the paperwork to come through and actually start the job. I worked a temp job while waiting, but I remember the wonderful feeling of getting back to the status of “full time employee.”

So why tell this long story? The pivot point for me was that long year out of work. Being unemployed is not something I would wish on anyone. However, the experience is not something I would trade, either. I learned so much about myself through that year. That learning has changed the way I look at myself, my career and my skills completely.

I discovered I love meeting people. I thrive on it. I have said more than once if I could find a way to make networking pay, I would do it full time. Learning stories and making connections to solve problems is the most gratifying work I have ever done.

What was really exciting was when I could start helping others by connecting them with people I had already met. This happened a few times, most notably when I was able to connect a woman in the Department of Education to a man in the Board of Education, who had told me the week before he had solved the exact problem she was facing. The relief on her face was priceless.

I also learned one of my strengths is mentoring and helping people. I recognized it through my meeting with people and telling my story. When asked for their advice, they would parrot back to me this skill I hadn’t recognized as valuable. I thought every manager grew the people they led, advised them on their careers and coached them to greater productivity. As they told me it wasn’t the norm, I discovered those were the skills I most wanted to use. These conversations gave me confidence and trust in myself that set me up for success when the opportunity did come along.

Odd as it may sound, I treasure the year I was out of work. I learned more about myself during those months than I thought possible. While the time was stressful for both me and my family, the introspection set me up for greater success later. This is one pivot I will appreciate forever.

 Posted by Dan at 7:00 am  Tagged with: , , , , , , , , , ,
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