Category Archives: Information
Recognizing Opportunity in the Entrepreneurial Process
A few days ago, I sat with some investors to listen to a proposal presented by a business owner who wanted to sell his existing business. After listening to the presentation for 10 minutes, I realized that this venture would not provide the opportunity to generate profits and provide a solid return to any entrepreneurial team or investor.
At the heart of any entrepreneurial process is opportunity. Successful business people and investors know that a good idea is not necessarily a good opportunity. In fact, for every 100 ideas presented to investors in the form of a business plan or proposal, usually only 2 or 3 ever get funded. Over 80 percent of those rejections occur in the first few minutes; another 10 to 15 percent occur after investors have read the business plan and proposal carefully. Fewer than 10 percent attract enough attention to merit further consideration and investigation.
As an entrepreneur, it’s important to develop the ability to quickly evaluate whether serious potential exists in a business opportunity and decide how much time, effort and value to invest.
Here is a quick summary of what to initially look for when determining if a business venture is a good opportunity:
Market demand is a key ingredient in measuring opportunity
- Does market share and growth equal 20 percent of annual growth
- Is the customer reachable
Market structure and size
- is the market emerging or fragmented
- What is the revenue potential based on existing market share
Margin analysis helps differentiate an opportunity for an idea
- Capital requirement vs the competition
- Can we break even in 1 to 2 years?
Consider the underlying market demands as well as the value added properties of the product of service. Also up for careful scrutiny is whether the market size allows for a 20 percent or more growth potential; the economics of the business, solid gross margins (40 percent or more) and the free cash flow characteristics.
The business need not be operating perfectly. In fact, if there are some inconsistencies in existing service, some gaps in information and knowledge those can also be considered as potential to create opportunity and drive value. In the final analysis, there are many factors which when combined, will paint the total picture. But the basics as outlined above along with your professional experience and business acumen will help in bringing you to an appropriate conclusion.
Invest in intangibles: Knowledge and Skills
Mobile post sent by Ray using Utterli. Replies. mp3
It’s obvious that we’re going through tough economic times. It’s ok to acknowledge these tough conditions in order to understand what’s going on and make the necessary adjustments in our lives and portfolios. But we certainly do not want to stay consistently focused on the bad news because that only leads to more anxiety and stress.
As you adjust, consider these three important tips:
- Limit your amount of news watching – Do not get caught up in the 24 hour news cycles of reporters expounding on the intricate details of the economic downfall. Select a few trusted and select sources for your news to stay informed and go easy on your amount of news consumption.
- Know what you can and can’t control – Obviously, some things you can control, some you can’t. Know the difference and act accordingly.
- Set a goal and have a plan – a bit of brain storming and strategic thinking is one of the best ways to decide what to do next. Consider the pros and cons of your decisions and consider what you will do to mitigate certain scenarios.
I believe that one of the safest investments you can make right now is an investment in your own knowledge, skills, and abilities.
For example, knowing how to build and improve any type of business is one of the best general-purpose skill sets you can have and there are always opportunities for people who understand how to create value for others. The great thing about investing in yourself is that your investment will not fluctuate in bad market conditions. In the future, when new opportunities present themselves, you’ll be well prepared to leverage your knowledge and skills for greater success.
Create an extraordinary life
Tony Robbins makes a compelling case for using these three intelligent, informed strategies to get your personal and/or professional life on track.
The Exquisite Corpse Video Project
The Exquisite Corpse Video Project is a collaborative video project in which artists from various parts of the world, who met online, work together. There is no curator, no single author and no theme; each artist responds to the piece of the previous artist. The process is spontaneous and creative. Inspired by the Surrealist invention of the ‘Exquisite Corpse,’ a method of sequential, collaborative image production, several video shorts were composed over several months by 26 artists in 13 countries.
One of several screenings to the public occurred on August 18, 2008 at the Monkey Town venue in Williamsburg, Brooklyn NY.
I had the honor of having my voice open the first video of the project as part of artist Marty McCutcheon contribution.
Ideas
“It’s not how many ideas you have that counts but how many of them you make happen.” I heard that phrase from one of my mentors years ago and I’ve used it as my mantra ever since. The ideas that we implement and act upon can make a tremendous difference in the fulfillment of our goals. Conversely, the ideas that we don’t act upon or allow to fade away can permanently sidetrack well meaning individuals from achieving their dreams.
My Reach Always Exceeds My Grasp
Legend has it that author Ernest Hemingway was once challenged to write a story in only six words. His response? “For sale: baby shoes, never worn.” Two years ago, SMITH online magazine re-ignited the idea and started a reader contest: Your life story in six words. The magazine was soon flooded with thousands of entries from readers submitting their own six word memoirs; some bittersweet and inspirational and others funny, thought provoking and hilarious.
The idea flourished and became the premise of a new book recently published by the editors of Smith magazine entitled “Not Quite What I Was Planning – Six word Memoirs by Famous and Obscure Writers”.
In an age where micro-blogging and text messaging has become the norm; six words can indeed tell a story.
Not Quite What I was Planning: Six Word Memoirs from Writers Famous and Obscure collects almost 1,000 six-word memoirs, including additions from many celebrities including Stephen Colbert, Amy Sedaris, Dave Eggers, Richard Ford, Deepak Chopra, Moby, and more. A New York Times bestseller and subject of hundreds of stories from The New Yorker to NPR and hailed as “American haiku,” SMITH’s book of six-word memoirs is both a moving peek at the minutia of humanity and the most inspirational toilet reading you’ll ever find.
I discovered earlier this year that out of over ten thousand submissions, my six word memoir was chosen to be a part of the book. ‘My reach always exceeds my grasp‘ – is my contribution to this valuable effort. Of course there is a huge story underlying my chosen six words and that will be the subject of another blog post in the near future. For now, I’m enjoying the inspiration I’ve derived from this exciting achievement and I will use it as motivation to pursue other goals as I reach beyond my grasp towards future possibilities.
Update: My memoir is also included in this You Tube Video of Editor’s picks. Look for my six at 0.55.
Change the rules
The timing is never right: You cannot wait for the optimum time. Waiting for “someday” is a long wait and a waste of time.
Ask for Forgiveness, Not Permission: It is easier to stop a horse at the starting line than in mid-course. Don’t give people a chance to stop you. Do it, then justify your actions.
Emphasize strengths, don’t fix weaknesses: If you spend the majority of your time trying to perfect the things you are lousy at, your overall achievement will be mediocre. Do what you are good at and perfect that strength—delegate the rest.
Money alone is not the solution: Money can, and does, help you pursue those things or activities that make you happy but it is not an end unto itself.
Relative income is more important than absolute income: Absolute income is statistically based on the dollar. Relative income is based on the dollar AND time. The more time it takes you to earn that dollar, the less value that dollar has.
Distress is bad, Eustress is good: Distress is harmful, it makes you weaker, less confident, and less able; It is usually created through destructive criticism. Eustress is healthy stress, contributing to personal growth and is created through constructive criticism. The trick is in learning (and recognizing) the difference between the two.
You never know …
A few days ago, a friend pointed me to the New York State Comptroller’s Unclaimed Funds Web Page. This web site exists because banks, utility companies, insurance companies, investment firms and employers are among the entities required by law to surrender inactive accounts to New York State. As such, if a NY state resident has a savings account, investments or a refund due that he or she may simply not be aware of, or may have forgotten about, there’s a good chance it will end up at the NYS Comptroller’s office.
I went to the website and did a search of my last name which came up with no results. However, I did a search on several family members and found that one relative did have some money waiting for her. Apparently, this was reported by an insurance company which owed her a refund. She’s now in the process of filing a claim and I’m her hero.
To reclaim money, the claimant must provide proof of identity and ownership but best of all, there’s no fee involved. You can go directly to the New York State Unclaimed Funds Website and initiate your own search. And, if you happen to find that you’re entitled to a small fortune, lucky for you … just don’t forget the person that pointed you in that direction 
