At a networking event not too long ago for around 100 people attending, i had to ask this question to the audiance as i was standing on the stage before my presentation, “How many of you came here hoping to do some business today, maybe even make a sale?” The overwhelming majority of the people in the audience raised their hands. Then I asked, “How many of you are here hoping to buy something today?” Not one person raised a hand.
This is what I call networking disconnect. I find it ironic that people are so “disconnected” about a process that’s intended to be about connecting people. This kind of disconnect leads to poor results, which in turn leads people to believe that networking doesn’t work. From what I’ve experienced over the past 10 years, along with the results I’ve witnessed with hundreds of thousands of people around the world -- networking works just fine!!
My advice: Do not confuse direct selling with networking. Of course, there is always someone out there who says, “But, Tomas, I’ve made sale before by attending a networking event.” I’m not saying it doesn’t ever happen, but it occurs about as often as a solar eclipse. You’re crazy if you think the odds are in your favor to “sell” at a networking event.
So why go to a networking meeting? You go because networking is more about farming than it is about hunting. Sometimes you go to increase your visibility and to connect with people you have never met. Sometimes you go to establish further credibility with people you know. And sometimes you may go to meet a long-time referral partner and do some business. In any case, the true master networkers know that networking events are about moving through the relationship process and not just about closing deals. Visibility leads to credibility which, with time and effort, leads to profitability.
In order to make your networking efforts work, you need to embrace a “relationship networking” mentality. Here are five things to remember when attending networking events:
1. Don’t go there to sell, go there to connect.
2. Have meaningful conversations with people you meet.
3. Follow up with people you found interesting or who you can help in some way. Don’t follow up to sell them something.
4. Meet these people in a one-to-one setting, learn more about them, and ask them: “how can I help you?”
5. Go for the long-term relationship, not the short sale.
So get out there and Network
Thursday, January 29, 2015
Friday, January 23, 2015
There's no question about it: Sweden loves entrepreneurs.
There's no question about it: Sweden loves entrepreneurs.
As the economy continues to struggle, an almost obsessive focus on entrepreneurs has captured the public imagination. From the press to the politicians, entrepreneurs are talked about as being the "business engine of the future." There's even a growing sentiment that of all swedes, entrepreneurs are the "most swed" -- the self-made, go-it-alone small businessmen and women carved in the image of our nation's founding fathers.
But despite the rosy picture painted in campaign speeches and magazine cover stories, an extremely high percentage of new businesses fail in the first five years. The estimates range from a low of 50 percent based on the failure of businesses approved for small business loans to a estimate of 90 percent, which includes early-stage start-ups that would be ineligible for Almi/startup loans. So if you're an entrepreneur and you feel you're in over your head, how do you know when to fold your cards? And, more importantly, what do you do next?
Signs it may be time to make an exit
No matter how good your service or product, the demands of running your own business are great. But there are some telltale signs that "sticking it out" may no longer be your best option:
No matter how good your service or product, the demands of running your own business are great. But there are some telltale signs that "sticking it out" may no longer be your best option:
1. You're still losing money after three years
The rule of thumb of starting your own business is that you have to be prepared to lose money for at least two years. But if you're not moving into the black after three years, you should consider moving on.
The rule of thumb of starting your own business is that you have to be prepared to lose money for at least two years. But if you're not moving into the black after three years, you should consider moving on.
2. It's taking a toll on your physical or mental health
No matter how much of a "born entrepreneur" you are, the early mornings, late nights and fast pace of running your own business can be stressful and exhausting. But if you find the stress manifesting itself in chronic sickness, anxiety or depression, you should think very carefully about whether or not the entrepreneur's lifestyle is in your long-term best interest.
No matter how much of a "born entrepreneur" you are, the early mornings, late nights and fast pace of running your own business can be stressful and exhausting. But if you find the stress manifesting itself in chronic sickness, anxiety or depression, you should think very carefully about whether or not the entrepreneur's lifestyle is in your long-term best interest.
3. You have an almost "allergic" reaction to being an entrepreneur
As is true with any job, some people are and some people are not temperamentally suited for entrepreneurship. If you were initially wooed to start your own business by the idea of being your own boss but find you can't stand the long hours or are continually overwhelmed by having to do everything yourself, the entrepreneur's life might not be for you.
As is true with any job, some people are and some people are not temperamentally suited for entrepreneurship. If you were initially wooed to start your own business by the idea of being your own boss but find you can't stand the long hours or are continually overwhelmed by having to do everything yourself, the entrepreneur's life might not be for you.
Of course, there are no cut-and-dry answers. And because the business is your "baby," the separation anxiety associated with calling it quits is bound to be stronger than if you were just another employee handing in his resignation. But if you're unhappy and your gut is telling you it's not going to get any better, you might want to think about making your exit.
Plotting your next move
An entrepreneur who's just decided to close shop is at a career crossroads. This is especially true for people in their 50s and older. Do you take a chance and try again? Go back to an old job or industry? The answer depends on a number of factors.
An entrepreneur who's just decided to close shop is at a career crossroads. This is especially true for people in their 50s and older. Do you take a chance and try again? Go back to an old job or industry? The answer depends on a number of factors.
Giving it another go
If you're very confident in your idea, and if you have seriously evaluated the outcome of your first business venture and believe you understand what went wrong and how to avoid the same missteps in the future, you might consider giving it another go. But remember -- it was a lot easier to be an entrepreneur before the Internet bubble burst, and between 2002 and 2007 when there was a lot of easy credit. Even if you can reduce the likelihood of failure in your second venture from the 90 percent quoted by the Economist to 60 percent, are you comfortable with that risk? And do you have the financial resources to weather a second failed enterprise? This may be of particular importance if you're thinking about retiring in the next five to 10 years.
If you're very confident in your idea, and if you have seriously evaluated the outcome of your first business venture and believe you understand what went wrong and how to avoid the same missteps in the future, you might consider giving it another go. But remember -- it was a lot easier to be an entrepreneur before the Internet bubble burst, and between 2002 and 2007 when there was a lot of easy credit. Even if you can reduce the likelihood of failure in your second venture from the 90 percent quoted by the Economist to 60 percent, are you comfortable with that risk? And do you have the financial resources to weather a second failed enterprise? This may be of particular importance if you're thinking about retiring in the next five to 10 years.
But if you've already rolled the dice two times, should you hazard a third? Sure, for some people "third time's a charm" really does pan out. But the perpetual failure who turns into a successful entrepreneur is a rare one. And the perpetual failure who is not so beaten up that he or she will be a confident and hard-working employee is extremely rare.
Re-entering the workforce
If you're thinking about returning to a previous industry or job function, consider how your stint as an entrepreneur should influence the way you craft your career narrative for prospective employers. There are several key components to this.
If you're thinking about returning to a previous industry or job function, consider how your stint as an entrepreneur should influence the way you craft your career narrative for prospective employers. There are several key components to this.
First, there's a time element. How much time did you spend trying to make it on your own? If your business failed in two years, which is not uncommon for many new businesses, employers will generally view you as being easy to reincorporate into the workforce. But if you were in business for five years or more, be ready to answer questions about whether or not you are temperamentally suited to work for someone else, and whether you could be loyal to the company -- in other words, have you become too independent?
Second, how relevant was your business to your area of competence? If you are a lawyer and you left a gig as a senior associate at a law firm to become a sole proprietor with your own law firm, many prospective employers will view the move as a sign of chutzpah, and perhaps a willingness to hustle. On the other hand, if you left your position as a senior attorney to try your hand as a cupcake artisan, prospective employers might view your decision less favorably. Such a move is far afield from your core competencies, and calls into question your motives in returning to the workforce as well the commitment you will display as an employee. Are you still passionate about the field, or are you backpedalling after a failed getaway? Your career narrative may become particularly labyrinthine if the nature of your failed enterprise presents conflicts of interest with the industry you're hoping to reenter. If you just spent three years running a solar energy firm, it could be difficult winning back your position as a Chief Marketing Officer in Big Oil.
On the other hand, if you're having trouble reentering your old industry or want to try something new, you might consider exploiting your failed enterprise from a marketing point of view. For example, if you started a food company and can assess what went wrong, you might be able to market your expertise to find a position in the food industry. This could be an especially fruitful path if you have made contacts throughout the industry or in related industries. Or perhaps your stint as an entrepreneur alerted you to talents and interests that you were previously unaware of. If you quickly tired of crafting cupcakes but found you excelled at managing people or negotiating with vendors, you might talk about your business from a people perspective and try to move into a position in human resources or in contract management.
A practical approach
The bottom line is that in this volatile economy, we need to continuously evaluate our career prospects both as entrepreneurs and as a prospective employees. Certainly, there are cases of entrepreneurs striking gold. However, given the high rate of failure, it's best to be practical and to do your due diligence rather than believe every story that runs in your favorite business magazine or online franchise report.
The bottom line is that in this volatile economy, we need to continuously evaluate our career prospects both as entrepreneurs and as a prospective employees. Certainly, there are cases of entrepreneurs striking gold. However, given the high rate of failure, it's best to be practical and to do your due diligence rather than believe every story that runs in your favorite business magazine or online franchise report.
Do you agree?
Tuesday, January 13, 2015
The right reasons?
THESE DAYS entrepreneurship is buzzing so much that it’s on everybody’s lips. It seems that there has never been a time when it has been this high up on the popularity scale.
As the successful stories make it to mainstream media, more and more people are starting to consider entrepreneurship as a way of living. But amid all of this a very important question arises: are people in it for the right reasons?????
Money: "a means, not a goal"
THE MEDIA today focus a lot on the financial value of successful entrepreneurs and how much money they have accumulated. Not to take anything away from the successful entrepreneurs, but all of it seems very overblown and over the top.
People need to have in mind that entrepreneurship is NOT a get-rich-quick scheme. I personally don’t know any successful entrepreneur who started his business because he wanted to be rich. The sole reason why they are successful is because they went into something they were passionate about from the beginning and because they wanted to MAKE a difference.
"Dedication’s what you need"
ENTREPRENEURSHIP might seem fun and challenging when looking in from the outside, but once you get into the game, you have to be prepared for long days, hard work and the constant frustration associated with building a business.
Even though advances have been made in technology, one thing hasn’t changed and that is the amount of passion and discipline required to make ends meet.
Friends and family are great supporters, but people need to understand that the energy must still come from within if they want to succeed.
"The harsh TRUTH"
Being an entrepreneur is hard. It’s not a get-rich-quick scheme and not everybody is cut out for it. It’s a very specific way of living that requires a lot of sacrifice, and the sooner people realise this the better.
The world doesn’t need more wantrepreneurs who are in it for the excitement. Instead, it needs more passionate souls who truly want to make a difference.
Do you agree or disagree?
As the successful stories make it to mainstream media, more and more people are starting to consider entrepreneurship as a way of living. But amid all of this a very important question arises: are people in it for the right reasons?????
Money: "a means, not a goal"
THE MEDIA today focus a lot on the financial value of successful entrepreneurs and how much money they have accumulated. Not to take anything away from the successful entrepreneurs, but all of it seems very overblown and over the top.
People need to have in mind that entrepreneurship is NOT a get-rich-quick scheme. I personally don’t know any successful entrepreneur who started his business because he wanted to be rich. The sole reason why they are successful is because they went into something they were passionate about from the beginning and because they wanted to MAKE a difference.
"Dedication’s what you need"
ENTREPRENEURSHIP might seem fun and challenging when looking in from the outside, but once you get into the game, you have to be prepared for long days, hard work and the constant frustration associated with building a business.
Even though advances have been made in technology, one thing hasn’t changed and that is the amount of passion and discipline required to make ends meet.
Friends and family are great supporters, but people need to understand that the energy must still come from within if they want to succeed.
"The harsh TRUTH"
Being an entrepreneur is hard. It’s not a get-rich-quick scheme and not everybody is cut out for it. It’s a very specific way of living that requires a lot of sacrifice, and the sooner people realise this the better.
The world doesn’t need more wantrepreneurs who are in it for the excitement. Instead, it needs more passionate souls who truly want to make a difference.
Do you agree or disagree?
Friends or Employees
Can bosses be friends with their employees? When I started my business at 18, I didn’t think about it. Since then, my opinion has been shaped and battered through 18 years of torture, disappointment, disbelief, inspiration, support and appreciation.
I now have made over 210 employees, many of whom have been with me for more than 5 years. But do I consider them my friends? Sure, some. I would certainly say I am on friendly terms with all of them. Some owners call their employees their family. Is that better or worse than calling them friends? I guess it depends on how you feel about your family!
Until last week, I thought I had this all figured out. I had come to the conclusion that you can be friends with some of your employees — but not at the expense of being the boss. It has to be boss first, friend second. It is just like being a parent i would quese. Parent first, friend second.
But many employees don’t really need a boss. Yes, they may still need mentoring, and they may still make mistakes (just like the boss). But they take responsibility and try to do the right thing. They can be trusted. They look out for the best interest of the company. They work with you, not for you. They don’t need a boss in the worst sense of the word.
I am sure there are many business owners who would say that some of their employees are their best friends, and I am equally sure that many business owners would say you cannot be friends with your employees. So what is the right answer?
As I said, my thinking on this was jolted last week. I was talking to my old production manager, Stefan, who has been with me for almost 5 years, through a recession, two business moves, probably 60 employees, and the numerous ups and downs of business. Together, we have figured out how to run a responsible, well run business.
In the middle of a conversation about business and friends, he stated that he didn’t have any friends at work. I was taken back. Here is part of the conversation:
Me: Stefan, do you consider me your friend?
Stefan: No, you are my mentor.
Me: Do you think I care about your well-being?
Stefan: Absolutely.
Me: Do you think I would help you out if you had a problem?
Stefan: Sure.
Me: Isn’t that what a friend is?
Stefan: If I left the job earlier, would you keep in touch with me?
Me: Probably not.
Stefan: Then you are not my friend!
Me: But if you stopped by to say hello, I would be friendly!
Stefan: Would you help me move?
Me: No. You’ve got me there. All right, maybe I am not your friend. But I feel a little bad about that.
Stefan: Sorry. I decided a long time ago not to be friends with the people I work with. I’ve been burned in the past.
Me: Can I be your business friend?
Stefan: Hmm. Let me get back to you on that.
It is about a 25-minute drive from stockhom to my house, and I thought about it all the way back. I came to this conclusion: The answer depends largely on what your definition of a friend is. Sure, there might be a difference between a business friend and a lifelong friend. But in my case, I have numerous people who fit into both categories. And that makes me very happy and fortunate. Personally, I cannot imagine spending 50 some hours a week, dealing with the joys of victory and the agony of defeat, by myself.
On second thought, I don’t have to imagine it. For many years, I had employees, but in reality I was totally alone. It was brutal, especially because I was still trying to figure out what I was doing. Now I am surrounded by an organization, including about nine or 10 people who I would consider my friends. And as friends, or as valuable employees, they tell me when I am wrong. You might say they are the opposite of yes men.
And one last thing to Stefan: You are my friend, whether you like it or not. :)
So what are your employees to you? What is your boss to you?
I now have made over 210 employees, many of whom have been with me for more than 5 years. But do I consider them my friends? Sure, some. I would certainly say I am on friendly terms with all of them. Some owners call their employees their family. Is that better or worse than calling them friends? I guess it depends on how you feel about your family!
Until last week, I thought I had this all figured out. I had come to the conclusion that you can be friends with some of your employees — but not at the expense of being the boss. It has to be boss first, friend second. It is just like being a parent i would quese. Parent first, friend second.
But many employees don’t really need a boss. Yes, they may still need mentoring, and they may still make mistakes (just like the boss). But they take responsibility and try to do the right thing. They can be trusted. They look out for the best interest of the company. They work with you, not for you. They don’t need a boss in the worst sense of the word.
I am sure there are many business owners who would say that some of their employees are their best friends, and I am equally sure that many business owners would say you cannot be friends with your employees. So what is the right answer?
As I said, my thinking on this was jolted last week. I was talking to my old production manager, Stefan, who has been with me for almost 5 years, through a recession, two business moves, probably 60 employees, and the numerous ups and downs of business. Together, we have figured out how to run a responsible, well run business.
In the middle of a conversation about business and friends, he stated that he didn’t have any friends at work. I was taken back. Here is part of the conversation:
Me: Stefan, do you consider me your friend?
Stefan: No, you are my mentor.
Me: Do you think I care about your well-being?
Stefan: Absolutely.
Me: Do you think I would help you out if you had a problem?
Stefan: Sure.
Me: Isn’t that what a friend is?
Stefan: If I left the job earlier, would you keep in touch with me?
Me: Probably not.
Stefan: Then you are not my friend!
Me: But if you stopped by to say hello, I would be friendly!
Stefan: Would you help me move?
Me: No. You’ve got me there. All right, maybe I am not your friend. But I feel a little bad about that.
Stefan: Sorry. I decided a long time ago not to be friends with the people I work with. I’ve been burned in the past.
Me: Can I be your business friend?
Stefan: Hmm. Let me get back to you on that.
It is about a 25-minute drive from stockhom to my house, and I thought about it all the way back. I came to this conclusion: The answer depends largely on what your definition of a friend is. Sure, there might be a difference between a business friend and a lifelong friend. But in my case, I have numerous people who fit into both categories. And that makes me very happy and fortunate. Personally, I cannot imagine spending 50 some hours a week, dealing with the joys of victory and the agony of defeat, by myself.
On second thought, I don’t have to imagine it. For many years, I had employees, but in reality I was totally alone. It was brutal, especially because I was still trying to figure out what I was doing. Now I am surrounded by an organization, including about nine or 10 people who I would consider my friends. And as friends, or as valuable employees, they tell me when I am wrong. You might say they are the opposite of yes men.
And one last thing to Stefan: You are my friend, whether you like it or not. :)
So what are your employees to you? What is your boss to you?
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