Category Archives: Business

Evolution of an Entrepreneur

Entrepreneur’s have been around since the dawn of time.  They have contributed to the growth and expansion of just about every civilization’s economy in recorded history in one way or another.  Of course over time, they have had different levels of impact and function, but were important none the less.

In this day and age there is a huge need for entrepreneurs, one could even say the need is greater now than it has ever been.

Below is a fun infographic that depicts how the entrepreneur has evolved over time, and showcases the type of entrepreneur that is needed most in the 21st century.

 

Click image to see a larger versionEvolution of an EntrepreneurEvolution of an Entrepreneur via homestead

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Are You An Entrepreneur?

Great Infographic to help you determine whether or not you are an entrepreneur.

Are You An Entrepreneur?
Image compliments of Masters in Business Degrees

Teaching Entrepreneurship to Kids

The world is a very dynamic and complex place.  Developing countries are growing economically at rates that stagger the mind, and at rates that are increasingly putting pressure on our country’s ability to compete.  In addition, our homegrown corporations are increasingly tapping the talent that exists overseas on the cheap, which is creating a population gap of people who lack the skills that are necessary for organizations desperately needing to stay profitable.

Therefore, I will say it! If we are going to compete as a country, we will need to start making some dramatic changes now.  As a country that has experienced so much material wealth in the past century due to the successes that the American manufacturing complex helped produce, we are either in for a rude awakening, or a forced shift.  Recently, I came across an article on USA Today that mentioned how many companies are actually profitable right now regardless of the layoffs, and that on average, the countries GDP has grown.

What this tells me, is that our work force, and therefore a large portion of our society, is in need of retraining or more education.  It appears that the ideas and education of the past has not placed our population in a position that is not conducive to staying competitive on a global scale for long.

So we need to change, as a whole from the ground up.  Where does it all start?  I would say it all starts in the classroom.  We have students being trained in this day and age for being engineers, IT professionals, doctors, lawyers, and general laborers.  This is a problem it seems, especially since many of the aforementioned will be made available in other countries for almost nothing if not already, and the doctors and lawyers are so few in number that a large portion of society is going to have to wake up and activate themselves.

As far as I can tell, one of the most important developments in our population is going to be in the creation in more designers, creators, artists, and business people.  This is going to be the area where will need to develop and become to compete globally. It seems like the manufacturing sector is being overtaken by cheap labor, and in many cases so too the engineering and higher skilled positions.  Hence, we will need to make a shift as a country to being creators and business people, versus laborers and technicians.   So it is going to start with the teaching of business skills and entrepreneurship skills to kids, including art and design.  The teaching of these subjects as primary subjects versus secondary subjects like they have in the past is going to be our ticket. Of course this is only my hunch.  What do you think?  Feel free to comment to let me know what your ideas are on our countries place in the global economy.  I am curious to know, whether or not you think changing the education system’s philosophy on what is most important in preparing the future of America’s workforce is important?

Here is a great post that includes 5 great entrepreneurship education resources to help you get started.  To take a look [Click Here].

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10 TED Talks for Entrepreneurs

A fellow entrepreneur gave me a slight nudge recently that motivated me to post this blog.  I think you will certainly find value in it as it incorporates some of the best minds of the 21st century.

Remember…..    The secret to learning as an entrepreneur is to mix equal parts of inspiration and perspiration. Hard work without a vision is futile, while a great idea without execution is similarly worthless. In these TED talks, you’ll find the inspiration you need and the know-how to get it done.

  1. Seth Godin on Standing Out: What makes you so special? Seth Godin’s talk is all about why people just ignore the ordinary. In order to stand out, Godin says, you must be either bad or bizarre. Boring will not bring you success.
  2. Alex Tabarrok on How Ideas Trump Crises: Economist Alex Tabarrok’s talk celebrates the practice of idea sharing. He explains that through free trade and globalization, we are now sharing more than ever to create a community that’s more healthy and prosperous than before.
  3. Dean Kamen on Inventing and Giving: Get inspired by this master of invention with more than 150 patents under his belt. In this talk, Dean Kamen discusses the Segway, and takes a look at even more big ideas, including portable energy and water purification to be used in developing countries.
  4. Richard St. John’s 8 Secrets of Success: How does success happen, and why do people succeed? Richard St. John knows, and he’ll tell you in this talk. Watch the video to learn the lessons of success.
  5. Tony Robbins: As an entrepreneur, your choices make a difference. You can impact the future of your business, an industry, a community. In this talk, life coach Tony Robbins examines the invisible forces that motivate your actions.
  6. Derek Sivers: How to Start a Movement: Do you want to make an impact? Derek Sivers can show you how. Explore this talk, and you will see how movements really get started — with the power of two.
  7. Itay Talgam: Lead Like the Great Conductors: Entrepreneurs must exhibit excellent leadership and management skills. You work much like a conductor — orchestrating different parts to ensure that they all come together like they should. In this talk, Itay Talgam examines how orchestra conductors can provide entrepreneurs with crucial lessons in leadership.
  8. Gary Vaynerchuk: Do What You Love: Gary Vaynerchuk insists that there are no excuses for not doing what you love. If you’re a dreamer, but not quite yet a doer, Gary’s TED talk can give you the shot in the arm you need.
  9. Alexis Ohanian: How to Make a Splash in Social Media: Make social media work for your venture with the guidance of Alexis Ohanian. Using the example of a humpback whale’s Web stardom, you’ll learn how to master memes and marketing in social media.
  10. Richard Branson’s Life at 30,000 Feet: Find inspiration from Richard Branson, the entrepreneur who turned a record shop into the Virgin empire. This talk examines his career, near-death experiences, and some of his motivations.

I hope you enjoyed these 10 TED talks on Entrepreneurship.  If you have any others that you think should be added to the list please share by leaving a comment.

In conclusion, the Educated Entrepreneur is all about empowering entrepreneurs world wide; therefore if you found these videos inspiring, you could do us a favor towards empowering more future entrepreneurs, by spreading the word on the following product that teaches entrepreneurship to kids.  Thanks for visiting and thanks for your support.

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Laws and Principles Entrepreneurs Live By

Pareto Principle  | Parkinson’s Law  | Law of Averages  |  Law of Association

4 Laws & Principles every Entrepreneur should know and live by:

The Pareto Principle

The Pareto principle is a very popular law …my guess is that you’ve probably come across it or have even heard of it numerous times throughout your life… however it was most likely referred to with a different name.  If you’ve ever heard of the 80-20 rule, or the law of the vital few, or even the principle of factor sparsity….then you’ve been exposed to the Pareto Principle.

Essentially this law states that, for many events, roughly 80% of the effects come from 20% of the causes.  And naturally this applies to a great many things and events especially concerning to the entrepreneur.  For starters….  as an entrepreneur….you’ve probably wondered why the distribution of wealth is the way it is….observing that just about 20% of the population has much of the wealth, while the other 80% doesn’t.  Who knows, maybe this keen observation on your part is the exact reason you are an entrepreneur…. so you can in fact make your way to the top 20% :).

This principle is also very relevant for the entrepreneur for purposes of time management…..20% of the things you do will account for 80% of your results while 80% of the things you do will account for 20% of your results.  I know…a bit depressing when you think about it….but this knowledge can be useful for creating and perfecting your plans of action.  In addition, the principle will come into play when trying to understand why some customers buy your goods and services, and why some….let me rephrase that…many, don’t.

So when 80% of the people you approach with your products, services, or opportunities say no….just keep in mind that it’s not you….and most likely not what you’re offering, and that it’s just a bit of the Pareto Principle at play.

Parkinson’s Law

Parkinson’s Law is something all entrepreneurs should be aware of.  Like the last law… you’ve probably experienced this one in the past but just haven’t been introduced to it formally.  So…I’ll do the honors.  Parkinson’s law was first articulated  in an essay of The Economist in 1955 and has been made more or less mainstream by author/blogger/entrepreneur Tim Ferriss.

The law essentially postulates that…  work expands so as to fill the time available for its completion.  So if you have ever had some friends or co-workers who were given an easy task to do with a somewhat large amount of time to complete….and yet they  somehow managed to stay extremely busy, spending an inordinate amount of time on a task that you could have finished in a day….. well then, you’ve been acquainted to Parkinson’s Law.

This is essential knowledge for an entrepreneur….especially those new to being their own boss and in charge of running their businesses efficiently.  The understanding of this law will help the new entrepreneur combat the programming received while they were an employee who wasn’t 100% vested in how long tasks actually took to complete.  Ultimately, if one truly cherishes their time and leisure, and doesn’t want to be a slave to their business….knowing this law is critical.

Law of Averages

This is a great law for us.  It’s the idea that probability will influence all occurrences in the long run, that one will neither win nor lose all of the time.  For example, If it rains every day this week, by the law of averages we’re bound to get a sunny day soon. This colloquial term is a popular interpretation of a statistical principle called Bernoulli’s theorem.  As an entrepreneur or professional, this law becomes important to you when  you decide to start going after the deals, the partnerships, and the sales.

The more you experience the no’s and failures in the pursuit of your ventures….the more likely you are over time, to experience that crucial yes and ultimate success.  A fantastic example I like to refer to, is the baseball player….  he strikes out 7 out of 10 times….and still get’s paid 5 million dollars per year.  The same success awaits the entrepreneur who  understands that with every no…they inch that much closer to their YES…and indeed their SUCCESS!

Law of Association

This law is often looked over for striving entrepreneurs but is crucial in moving towards the achievements you set for yourself.  Basically this is a law which suggests that we become like the average of the five people whom we spend most of our time with.

Meaning….that everything about you will average out to be similar to those five people whom you are currently spending most of your time with.  For instance,  your income will tend to be the average of your five best friends’ incomes.  If you want to raise the quality of your life, hang out with people who have already been there and done that…and who are living the quality life which you seek. If you want to become a better communicator, hang out with great communicators.  If you want to be more positive, hang around with more positive and up beat people. If you want to be a terrific parent, spend lots of time with men and women who have mastered the art of parenting.  If you want to start making at difference….get around those who are out there making some waves of impact.  So in essence… birds of a feather flock together.

But…do you know why birds of a feather flock together? It’s because they’re all going in the same direction. They share a common vision. So if you’re going after a goal, any goal, go and find the people who have already achieved that goal, or who are well along the path to attaining that goal, and then be with them, hang out with them, camp on their doorstep if you have to. :).  Joking aside…this is an important law to live by….so get out there and make some connections with those whose lives you want to be living.

And if you find your self in a situation where making critical associations with people is difficult because of your location, or because you just need some time to gain the courage to reach out, remember that the next best thing to associating with great company is reading great books.  It was Rene Descartes after all who once said “The reading off all good books is like conversation with the finest men of the past centuries”.

To Your Success!

“Our acts can be no wiser than our thoughts…our thinking can be no wiser than our understanding.” – George S. Clason

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Young Smart and Global Entrepreneurs

Global Entrepreneurship

As a promoter of smart entrepreneurship as a primary vehicle to making a difference, I thought it absolutely necessary for me to mention a very fascinating movement that I came across recently, a movement which is gaining some serious momentum in Michigan.  It’s an association of entrepreneurs and innovators who are focused on building creative, enterprising communities, and is known as the YSG (Young, Smart, and Global) Organization.

I find it fitting to mention their efforts here regardless of where their primary activities take place (They are out in Michigan, far from where I currently reside…Arizona) because of what they stand for and more importantly because of the ever growing relevance that their message carries for our Nation in the not so distant future.

Essentially the YSG organization is a very forward thinking movement, one which is focused on revamping communities in the state of Michigan due to an outdated social an economic mindset that is pervading that region.  A mindset that stems from Michigan being at one time, an economic leader due to their Auto Industry, and being a hub of innovation and opportunity throughout America in the early 20th Century…but ultimately losing focus when times were good.  Innovation slid and communities became comfortable…whereby, most people in the community got in the habit of working for big organizations, becoming dependent, and thus their creativity, entrepreneurial spirit, and economic potential ceased.   So…It is YSG’s intention to act as a catalyst, inspiring creativity, risk taking, and taking action in entrepreneurial endeavors amongst their population once again.  One of their biggest aims is to ultimately ensure that the old ideas of entitlement and the prolonged lack of involvement within their local communities disappear.

From my point of view…it appears the YSG organization’s concerns are not just a local issue.  What seems at the moment a phenomena that is occurring exclusively throughout Michigan has the potential to appear as a much broader issue, especially when a little foresight is used with an increase of scale, meaning when we look into the future and substitute national trends for international trends.  This isn’t difficult to envision when future economic projections such as what I’ve listed below dominate the daily news:

* General Motors expecting to reduce its work force by 25 % in the next five years.

* AT&T will cut its payroll by 27,000.

* IBM will let go 10,000 workers.

* United Technologies will terminate 11,000 employees.

* Unisys (Burroughs /Sperry) will reduce its ranks by 10,000.

* IT outsourcing on the rise

And of course other statistics, like how in the 1980’s, twenty-five percent of middle management jobs were eliminated in the United States (Greenberg/Baron 582), or how in the 1990’s, one million managers of American corporations with salaries over $40,000 also lost their jobs (Greenberg/Baron 582), and how in total, Fortune 500 companies have eliminated 4.4 million positions since 1979 (Greenberg/Baron 627).

Global Entrepreneurship

So…It appears YSG is combating a microcosm of what has a significant chance of occurring nationwide at some point in the future due to the loss of not only manufacturing jobs to outsourcing, but also IT jobs to outsourcing, and more dramatically, job losses due to the advancement of technology.   YSG has it right…..in order to compete and flourish as we have in the past, we need to get innovative, entrepreneurial…but most importantly, we need to get smart and we need to get global.

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The $3,000 Giveaway

I am sure that you probably know by now how taxes work and how frustrating they can be, but I thought I’d still put this together and throw it out there to you to jog your memory, just in case you were in need if a refresher, because hey…everyone , or at least almost everyone likes money.

Now, I’ll bet that you have heard of how people can actually save money with taxes when they have a business, but do you know how they actually save the money?  Well if not, then read on because I am sure you have been at one time or another, that person who has said to themselves… “Dang, my friend, sister, cousin, or whatever,  is so lucky..  he/she get’s to write everything off!  If only I could do that…yada, yada, yada”  So I thought I’d share with you how easy it is to save/make (depending upon how you look at it) $3,000 – $9,000 / year in taxes if you so choose to.

Keep in mind as you look at the breakdown that you can simply enter in your own figures to get an estimate of what you woud be able to write off if you had a home based business.  Don’t forget that most of the expenses you already have will fall into a type of business expense category once you have your business up and running (Disclaimer:  all figures are relevant to my expenses and will differ based on the type of business you set up).  Let’s begin!

Tax Deductions (untaxed income) for a Home Based Business


Cell Phone: Monthly Charge:  $ 100 x  12 months
= $ 1,200

Internet Service and Home Phone (Land Line… New Messages) Monthly Charge:  $ 67 x 12 months
= $ 804

Business Overhead
Signup $299.00 + Monthly Website fee $ 14.95 x 12 = 179.4
= $ 478.40

Education / Training (annually)
SuperSaturdays, Conventions, Audiobooks
=$ 1,000

Office/Business Supplies (annually)
Ink Cartridges
= $ 200
Computer Paper
= $ 60
Misc. Pens/Pencils/Staples/etc..
= $ 20
Business Cards
= $ 60
Internet Technology i.e. sites, myfax, etc.
=  $ 122
Gas Mileage (annually)
Total Mileage on Vehicles(s) this year:  15,000
Total Miles driven for other employment:  5000
Miles remaining:  10,000 so
15,000 – 5,000 = 10,000 x $.55
=  $ 5,500

Meals / Entertainment
(meetings with team, partners, prospects, leaders, or recruits)
50% of Monthly meals out or in home:  ($240 x .5 = $120) so
$ 120 x  12 months
= $ 1,440

Vacation (Intellectual Property) $ 1,200 x 2 (# of vacations)
= $2,400

Total Tax Deduction  = $ 13,284.4
Estimate your tax bracket (20 – 25% is good for this example)
= $ 13,284.4

x            .25

$ 3,321.10   =  TOTAL TAX SAVINGS …..Yippee!

I don’t know about you, but  having an extra $3,321 per year is a lot of money.  I am big on assests, so of course I will put the money back in the market and have it work hard for me.  I like to play with the numbers so I will show you what I will get when I invest this $3,321 give away into an average performing stock for oh…let’s say 20 yrs.

So that’s $3,321, with an annual addition of $3,321 for 20 yrs at 6% and I get, drum roll please…………………………. $140,145.74!
(Try For Yourself)

I know what you are thinking… Holy smokes that’s alot of money, and you’re right, it is.  So the question is, what would you do with a $3,000 giveaway? Go on vacation, pay off some debt, invest it, gamble with it?…what?  I am curious.

Okay, so you don’t have a home-based business I understand that, but if you are curious, and would like to know what is out there, I would highly recommend visiting npros.com  or entrepreneur.com.  These two sources  have an extremely extensive list of  fast start home-based businesses which you can choose from that will be most fitting to your personality.

So, are you going to take advantage of the $3,000 giveaway, or are you not going to do anything and  give away the $3,000?

[This is an estimate only.  Check with your CPA as tax laws periodically change.  Many other deductions are probable such as a percentage of all household costs for Home Office, i.e gas, electricity, water, HOA fees, landscaping, sewer repairs, etc…  The percentage is based on the square footage in the home used for the home based business.  Capital Expenses, i. e laptop computers, printers, flat screen TV’s used for presentations may also be depreciated/deductible.  June 2009.  For more Info on Tax Law for the Home Based Business, call for recorded info at 702-405-4438. or visit the Tax Reduction Institute]

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Wages Vs. Profits

profits

A mentor of mine, Jim Rohnwho I’ve been following for a couple of years now, uttered a phrase that caught my attention, more so than usual while studying  him recently.   He had such a strong and significant impact on me  on the day that I heard him say “profits are better than wages. Wages will make you a living, profits can make you a fortune.”

I found the phrase sage like.  I remember repeating what he said to myself  and then thinking about how truly difficult  it most likely is to get rich on just wages alone, and how readily profits can be made if we focus our efforts on accumulating them.  It was a pretty outstanding moment of clarity for me, and I still get the goose bumps whenever I think about it!

Following that phrase,   Jim Rohn went on to make a point about how profits  can actually change your whole attitude, even if you start part-time.  I really warmed up to his suggestion, and perhaps you will too, because he states that it doesn’t matter if it’s part-time on your entrepreneurial business,  your network marketing company, or your service business.

To Jim it didn’t matter.  To him it could be a real estate business, a tutoring business as a teacher, a website design business, a landscaping business in the summer, a consulting practice, woodworking, or a hobby,  heck, he even goes so far as to mention a business of hanging Christmas lights in the winter.

The magic he says, comes from the moment you start investing effort part-time into your own business, because it is then, that you will find how much more exciting it is to get up in the morning, look in the mirror, and go to work on your fortune, even if it is only a small portion of your schedule,… something like 10 – 15 hours per week.

How empowering  would it be, to be able to go to work on your fortune every single day rather than going to work to just pay the rent or the bills?    So you don’t get me or Jim wrong I will quote you some words directly from him when he says ” Now – it is noble to go to work to pay the rent, but if you could also parcel out part of your time – go to work to make your fortune.  Your whole attitude changes; your spirit changes. It is in your voice.  It is in your face.  It is in your gestures.  And then you can say, “I am now working full-time on my job and part-time on my fortune because I found a way to make profits.”

Wow….how amazing is that?  Slightly magical isn’t it?!!  What do you think on the idea of Wages Vs. Profits?  Have you taken any steps to learn how you can make profits vs. wages?  Are you teaching your kids these kinds of concepts?  If not, why not?

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Your Personality Sucks

I was surfing the net last night and I came across this blog by Rohit Bhargava.  Initially glancing through hist posts I was attracted to one tab in particular.  So I clicked on it and took a good look through it and began reading some of his postings for that blog (because he has two) and sure enough I came across his book which he titled Personality Not Included (PNI for short).  The book caught my attention because it wasn’t too long ago when I was listening to some Napolean Hill audio tapes in my car (I am geek what can I say), which incidentally was focused on personality and how important it is to ones success. 

Interestingly the Napolean Hill personality bit was a slightly different in its recommendations as it was primarily talking about the importance of positive mental attitude, tactfulness, and being courteous to our peers and customers in order to secure more business and in turn be more successful.   Now Rohit’s bit on personality was more about how it is vital in this day and age for your business to have a personality of its own, and how authenticity is key if it is to become and/or remain successful.

The cool thing I captured in being open to both ideas on personality is that basically if your business is not doing good or if your career is going nowhere fast, it’s probably because of your personality.  So in an attempt to be respectfully brutal in my honesty….if your business or career sucks……. it’s probably because your personality sucks.

So…. what are you waiting for?  Start working on your personal and organizational personality.

“If you don’t like how things are, change it! You’re not a tree.”
Jim Rohn

 

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YouPublish…Info for the Infopreneur

I watched a video of  Mark Victor Hansen Author of the Chicken Soup for The Soul Series yesterday and learned some pretty insightful info from him on the business of books.  Mark is a very animated fellow and spoke rather quickly and enthusiastically and so so hopefully I can convey some of his enthusiasm about book business.  Essentially, I’d like to relay some of his most poignant ideas about the business.  One of Mark’s primary ideas was that we all have a book inside us, a uniqueness unlike the world has ever seen…a masterpiece waiting to be produced, and of course I really agreed with this idea since the Educated Entrepreneur feels we all have an entrepreneur inside of us just waiting to be let out.   Another idea which Mark spoke of, was his belief , which again is very similar to mine, that there is much power in the written word and that the medium has much potential to create dynamic and significant changes to not only a person on all levels, be it…economic, social, personal, spiritual, but also potential to change the world.  

The most fascinating topic which Mark spoke about, was on the details of the book business.  He actually painted a very convincing picture of how writing a book can be one of the best ways to starting a business.  He propounds becoming influentiall with your ideas, works, and expertise by creating an influential book business empire, and then if you choose, you can splinter off  with success as your base in any direction you wish.  You can move into public speaking, training, coaching, managing, television, movies, you name it…  He even created a term for this type of person, he calls them infopreneurs.  So, I highly recommend you look into the guy and read one of his chicken soup books or check him out on his website or look him up on wikipedia.  He has a lot to teach if you are willing to learn.  Also if you are really curious about the possibility of becoming an infoprenuer,  be sure to check out his free self publishing website called youpublish.com.

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