You Need Only One Strange Idea To Become A Successful Entrepreneur

Being An Entrepreneur With A Strange Idea

When we think of successful entrepreneurs, we think of Richard Branson and Bill Gates, two people who made huge companies out of nothing, making things people need. However, being an entrepreneur also means taking an idea no one has, and turning it into something people will want, even though they do not need what you are selling. Case in point, the pet rock, possibly one of the greatest entrepreneur stories of all time.

Gary Dahl was just an advertising executive from Los Gatos, California, when he hit upon a strange idea. He was sitting in a bar in 1975, listening to friends complain about their pets. From this, he hit upon the idea of creating the perfect pet, which led to the idea of selling rocks to people, complete with instructions. The manual stated that a rock did not need to be fed, walked, bathed, groomed, would not die, become sick or disobey you. He drafted the manual that night at home for the pet rock, filling it with gags and puns and making it seem as though the pet rock was an actual pet.

Dahl then went to a building supply store and bought a bunch of rocks, which he put in cardboard boxes with straw in them and breathing holes. In 1975, Dahl created Rock Bottom Productions, which sold rocks for $3.95. The manual was 32 pages long and was called The Care And Training Of Your Pet Rock, and had everything for caring for your pet rock including feeding and bathing it. It also showed how to teach the rock to sit and stay and even how to roll over, come and stand with help from the owner.  The expenses for this venture were minimal, with the biggest expense being the die cutting and manufacture of the boxes. The boxes themselves cost one penny, while the straw was free. Dahl also had a printing job for a client and had the manuals printed as part of it, meaning he had nearly no expenses for the pet rock.

The pet rock fad lasted for six months in total, but during that short run, which hit the Christmas season, millions of pet rocks were sold. From getting the idea for a pet rock in April 1975, to December 1975 when the fad ended, Dahl became a millionaire based on an idea most would have thought of as completely insane and doomed to failure.

The point of this story is to show that strange ideas can make a lot of money if you know how to market it properly. Selling rocks to people may seem stupid, but it made one man millions of dollars and it has served as an example of how being an entrepreneur can mean following your dreams and ideas and seeing them pay off for yourself. Sure, it only lasted six months but Dahl has more money than he needs now because he took a risk, which is what being an entrepreneur is all about.
First Published: EntrepreneurJourney.com Oct 3, 2010

How Big Companies Started For Nothing

Mega Companies Started For Nothing

There is a misconception that to have a huge mega-national company, you need to have a lot of money to start it up. However, the truth is that there is plenty well known companies that have started in a garage with next to nothing in funds. By looking at these companies, you can see that your dream of being a successful business owner can happen, even if you are just starting in a garage.

1. Whole Food Market: Started by a college dropout in 1978 and his 21-year-old girlfriend, the couple borrowed money from friends and family and opened up a store, which within one year resulted in them being evicted from their home because they used it as storage for storage. With no home and very little money, they moved and lived in the store. The couple lived in the store, bathed there using a water hose and tried to make ends meet. Within two years they merged with another store in Austin, Texas and increased the number of employees. In four years, the company expanded to other cities and today, is ranked 369 on the Fortune 500 with $3.2 billion in revenues.
2. Apple: Started in a garage by Steve Wozniack and Steve Jobs, these two men created a personal computer, which Wozniack designed and Jobs helped to sell. They were broke and had to order parts for their first purchase order on credit. The company now ranks 103 on the Fortune 500 and is one of the leading companies on the planet.
3. Dell: At one time, it was the largest seller of personal computers and servers on the planet. Currently ranked 34 on the Fortune 500, with $61 billion in revenue in 2008, the company was started in 1984 by Michael Dell in his dorm room with nothing more than a $1,000 investment. In 1985, the company produces its first computer and by 1988 had its first public offering worth $88 million.
4. Mattel: A married couple by the name of Ruth and Elliot Handler decided to start a company just after World War II in the garage of their California home. Initially a company to make picture frames, soon after opening they began to make dollhouses with scraps left over from the picture frames. Thanks to starting to make toys, and picture frames, just as the Baby Boomer were growing up, they were able to benefit immensely from this new and large market. By 1955, their company, Mattel, was sponsoring The Mickey Mouse Club and soon after that they created Barbie. Currently, they have a revenue of $6 billion and rank #413 on the Fortune 500.
5. Starbucks: In 1971, three academics used $1,350 they had to open a Starbucks location in downtown Seattle. After the opened, things were tough so they had to borrow $5,000 from a bank just to keep going. Initially just roasting coffee beans, the company began to sell coffee exclusively in the 1980s. In 1992, the company went public and had a rapid expansion in the 1990s, opening one store per day. The company currently ranks #277 on the Fortune 500 with revenues of $9.4 billion.

First Published: Sep 19, 2010 EntrepreneurJourney.com

How To Write A Mission Statement

Writing A Mission Statement

When you are starting a business, one of the most important things you can do is to write a mission statement. A mission statement is very important when you are writing a business plan, and a business plan is essential when you want to have a successful business with investors. A mission statement explains what your business is all about to customers, those in the community, employees and suppliers. The mission statement should cover all aspects of your business, the products you offer, the service, position and growth potential of your business as well. It clarifies the business you are in, the objectives you have and the goals of your business.

To write a good business plan, you should at least ask yourself these questions:

1. What do I want for my family, my customers and myself with this business?
2. Why am I in business?
3. Who are my customers going to be and how is my product/service going to enrich the lives of my customers and lead to their own success?
4. What kinds of products and services will I be giving to my customers and what is the nature of the product/service?
5. What levels of service will I provide to my customers and do most companies offer these types of services or products?
6. What roles within the company will I play and my employees play?
7. What separates my company from the other companies that provide the services and products?
8. How will I use strategy and technology to reach the goals that I have set for myself in the company?
9. What are the values that guide the company?

Now, you are going to have to write up your mission statement by answering these questions. If you have others in the company with you, talk with them and get their ideas for the mission statement. It is important that when you are picking people to help you with the mission statement, you pick those who will be positive and supportive to your goals. You do not want any naysayers bringing you down.

It is going to take you a few hours to do a mission statement because it is not something you do quickly. Make sure you set aside the time for the mission statement to ensure that it is done right. It is important that you prepare yourself for the task of putting together the mission statement. Brainstorm and make sure you have all the information you need in front of you so you can get right down to the business of writing the business statement.

One of the most important things you can do is to constantly revise your mission statement until it is right. You want your mission statement to fit exactly what you think your company means and you do that by reworking the mission statement until it is right.

Once you have completed your mission statement, put it on your company web site, on business plans, company cards, brochures and more.
First Published: Sep 12, 2010 entrepreneurjourney.com

What Business Location Is Right For You?

Selecting a Business Location

There are many different locations you can have for your business, and choosing the right one will go a long way in determining how successful your business will be. Your location has to suit you and your business, while at the same time not costing you too much. So, what type of location is going to be best for you? Here is a list of different business location types, and what they can offer you.

1. Retail: If you are selling retail products, then allowing customers to reach you is of paramount importance. You can have your retail location in a wide variety of places including a mall (enclosed or strip), shopping centre, shopping district or multi-use facilities. You can reach many customers this way without having to advertise, but the rent can be quite high.
2. Home: If you can, a home-based business location is the best. Not only do you not have to pay rent for the location, but also you can write off part of your rent/mortgage because you are using a portion of your home for your business. You can use a spare bedroom, garage, kitchen table, attic or anywhere that suits you in your home. The only problem is that the growth of your business is limited at times, and you will have to manage your home life with your business life.
3. Commercial: If retail is not enough, a commercial location may be the best. You get office space, parking and more in business parks and office buildings. You can be downtown, on the outskirts of town, or in a suburban area. One of the great things about a commercial space is it looks very professional with a place for a receptionist, offices for employees and more. The only downside is that it can be very expensive and that can cut into your bottom line when you are just starting out.
4. Mobile: Rather than have a fixed location, you can work directly out of your vehicle, going to your customers rather than having your customers come to you. You can write off part of your car payment and the gas, while not paying any rent for your business location. It is a great option if you are just starting out and can work in a mobile environment.
5. Industrial: If you have a business in an industrial sector, then having industrial space is very important. You typically will get large spaces, yards and more, which allows you to showcase what you are selling, or to serve as a distribution centre if that is what your business is in. The type of industry you are in will determine if you are in a light, medium, or heavy industrial area of the city.

Location, location, location is what they say about business and if you don’t choose the right location, you may not have a successful business. That is why you must do what you can to choose the right business location type.

First Published: EntrepreneurJourney.com Sep 6, 2010

| How To Know Your Business Will Be A Success |

Tips For A Successful Business

Many new businesses fail within their first two years. Either the person running them is not working hard enough at being an entrepreneur, or the business is just in the wrong market, or has too much competition around it. This can cause a lot of people to worry about starting a business because they do not know if it is going to be successful or not. So, how do you know if your business is going to be successful? How do you ensure that when the time comes to start a business as an entrepreneur, that the business will be successful and profitable for years to come?

The problem is that there really is no way to know. You can’t say for certain that your business will be successful because there are too many variables. The man who created the pet rock may not have thought his business would be successful but it made him millions. On that same note, many who thought their dot-com business would be successful found that the opposite was going to be true.

The first thing you need to look at is your passion for what you are doing. Do you love what you do? Do you want to succeed at it? If you are not ready to put in the long hours needed, then maybe you should look elsewhere for a business because you must love what you do in order to succeed.

What is the competition like in your area? There is a misconception that no competition means that there is a guaranteed chance of success. For example, if there is no air conditioning supplier competition where you are and you live in the Arctic, well that does not mean you are going to sell air conditioners. It means there is no market for it. You should have a bit of competition, but not too much and you should be able to offer your customers something different from other competitors.

How much money do you need to start your business? If you can start the business out of your home with minimal investment, then you will have a higher chance of success. The reason for this is that the less you pay initially, the less in debt you are and the less you have to make to earn a profit. However, if you have to borrow $500,000 to start your business, well even if your business is not making money, you have to make payments on your loan. That may cause you to fall behind in your payments, which will then cause your business to suffer. It is just not the best idea to borrow large amounts of money unless you know your business is going to be successful.

Sometimes you just have to take the risk and hope your business will be successful. That is what being an entrepreneur is all about, risk and adventure, but that does not mean you should just go into business without thinking about it first. Planning ahead can make things easier for you down the road.

First Published: EntrepreneurJourney.com Aug 8, 2010