Personal Homepage of: David Francis
This is my personal website. It is a place where I write what I want for people who care to read. It's not private per se, but it is of little use to anyone other than myself, those I care about or those who care about me. You're more than welcome to read the public parts of the site, but don't be surprised if you find yourself scratching your head and wondering, "Who cares?"
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The Business Blogger In Me
Sunday, November 30, 2008
Anyone who has known me for the past few years knows that I have a passion for blogging about personal and business topics. I had a blog at SOKY.Biz for a few years and enjoyed blogging on various business topics. Because of my own business endeavors and a general lack of time, I suspended my blogging indefinitely. It seems however, that I have been thinking about a business related topic that I would like to blog about here.
I still have a list of business related blogs that I read occasionally. I also like to search the blogs for business topics and issues. I have found a glaring discrepancy in many of the blogs I discover. The main issue I have with self proclaimed experts is their credentials or lack thereof. Who are these people offering advice to small business? Who are these "guru's" who seem to have all of the answers? How old are they? What's their background? Have they ever owned a business? Were they successful in business? And all of these so called marketing and advertising experts should reveal their own business successes, ad campaigns for their own business and the success or failure of each.
When I have blogged about a business topic, I was sharing my opinion just like all of the other bloggers out there, but I typically blogged about things that I had experience in. If I wrote about buying print ads, it was because I was buying print ads for a personal business interest. If I was writing about web strategy, I was writing from the perspective of not only a business that was using the web for communications, but also from the perspective of an experienced web developer with years of experience. If I wrote about accounting, technology, software or operations, it usually came from an issue I was tackling or currently working on for my own business.
But what is the experience of all of these bloggers and self proclaimed experts out there? Even some of the seminars and speakers who get paid huge amounts of money to guide and teach small business people have a huge experience deficit that should disqualify them from ever taking the stage much less your money. What have they accomplished in business? Oh sure, they effectively and persuasively marketed their own talent, ideas and concepts, but have they ever started a real business from scratch? Have they ever had to source suppliers, consider presentation, refine their offering, pay for marketing, advertising and publicity on a budget? Or are they people with fancy degrees, so called great ideas, and people who have consulted other people all of their life?
Unfortunately, some of the advice offered by these experts is what I consider dangerous, yet people listen and heed their advice because they are presented in a way that is very persuasive and attractive. They have lots of slides, catch phrases and illustrations to convince the reader/ listener that their ideas work, and they might even have a client or two who will testify that they used all or part of the ideas successfully, but have they ever risked anything more than a little embarrassment or rejection?
Some would argue that a business coach or marketing consultant is an expert in their field and they are qualified because they are focused on their area of expertise. I don't agree, unless that consultant or coach has actually built a business, made the mistakes, worked the long hours and taken it on the chin financially as well as strategically.
What’s worse is the failed business owner who somehow thinks that they have learned from their failure and that makes them qualified to offer advice. These could be the most dangerous because their history of failure has been white washed into something successful and a reason to heed their counsel. It is wrong, it is deceitful and it should not be allowed. But it’s the internet and anyone with a willingness to set up a website and offer advice is free to do so.
It is difficult to know exactly who is offering the advice most of the time. Fact is, if I cannot ascertain who is writing and the context from which they are offering their advice, I leave the site and never come back. People recommend books to me, and if their bio is vague or their experience limited, I put their work into the category of fiction and I rarely read fiction. I don’t pay for business seminars anymore, mostly because the intent of these seminars are to either sell you something or get you to do something the speaker would benefit from.
I would like to read advice and tips from real business people; people who have done first and then started to teach others, not the other way around. Even still – especially in my business – I would take their advice with a grain of salt because times change, business models improve and things can be (should be) done differently than in the past.
I prefer to talk to business people I know! I like to get to know them personally, get a feeling for their integrity, and come to trust them before I try to apply their opinions to my business. There are several of my clients who look to me for advice and I offer it freely, but I always offer the caveat that it’s just my opinion and they should not rely on my opinion. Free advice is usually worth what you paid for it, and that includes my own.
The entrepreneur should learn to trust their instincts while carefully learning from others, there is no doubt about that. But when learning from others, be it on the web, in person or even by a hired consultant, one should be wary of advice from inexperienced people.
This is not to say there are no good blogs out there, nor is it meant to imply that a small business owner should bury their head in the sand. What I am saying is consider the source of the advice you are taking and even if from an experienced and qualified source, mold that advice to fit your own business, objectives and ideas.
A perfect example! If you are lucky enough to have the money to buy a fast food franchise, then you should (must) take the advice of the franchisor that is the point of a franchise. But even still, what works on one side of town – even for a cookie cut business – won’t necessarily work on the other side of town.
Just consider this, if you had a McDonalds in a suburban area which is not close to schools or offices, you would likely need to staff much differently concentrating on breakfast and dinner rather than expecting a large lunch crowd. You simply cannot take the advice of another business without considering how it applies for your particular business. And that’s my point.
One of the inspirations of this tirade is some advice I’ve read online a couple of times. It comes from marketing people, people who know all of the viral marketing vocabulary and latest catch phrases down pat. These “experts” live in the virtual world I call “it should work because it sounds good.”
The most recent suggestion that they think sounds good is basically, you don’t need to plan ahead, you just need to sell something. The point is – according to them – is that too many people spend money on business planning, branding through business cards, shirts etc and research when they should – according to them – spend very little time on these things and spend the bulk of their time marketing and selling.
It is true, that you need a product/service to sell and a willing customer to buy it, but there are so many things that need to be considered before you invest any time or money in any business venture. Everything from the name to the accounting method must be considered or you are setting yourself up to fail. I know this from experience, not through my infinite and superior power of the mind.
A recent site I read suggests that little or no time be invested in legal issues, organizational planning, accounting, and process or risk management. This person suggests that a business is simply created when someone buys what you are selling. BLEH! Oh it sounds good an all, but what are the legal ramifications of selling something? Are you allowed to do it? Such as licensed products. Do you need to charge and pay taxes on the transaction? Do you need a license to sell? Where are you going to put the money?
In a Pollyanna world, it would be great to just sell stuff, bank the money and worry about the rest later. Been there, done that, it don’t work! There is a lot of planning necessary and it could make or break you either financially, or legally.
I read a suggestion that half of the time and money spent starting a new business should be invested in a marketing plan. Interesting! Yes, this comes from one of the professional marketing blogs. I’m a strong advocate of a solid marketing plan, but when starting a business from scratch, you better invest your time on many other things too or you will be scratching your head wondering what just happened.
Case in point; I know a guy who started a great business! It started out great and he was selling like crazy. He had big dreams and the cash flow to make them happen. What he didn’t do was research the brand he had chosen and low and behold, it was trademarked and it was back to square one. Some might call this a headache that can be overcome; I call it an expensive mistake that didn’t have to happen with a little research.
Another case in point; I know another guy who built a strong brand and great customer base. The company imploded over time because of a lack of financial management. I really shouldn’t say more than that other than to suggest that had there been a solid financial plan in place, that business would not have failed and it would still be a strong business today. There was enough money, it just wasn’t handled properly. The snowball of debt became an avalanche and it completely destroyed the company.
From my own experience I can share that I know the difference between a “no thought” business and one that has been thoroughly researched. The latter is much more successful.
A wonderful resource for small business people is S.C.O.R.E. administered by the United States Small Business Administration.
From their web site: www.score.org
SCORE "Counselors to America's Small Business" is a nonprofit association dedicated to educating entrepreneurs and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).
SCORE is headquartered in Herndon, VA and Washington, DC and has 389 chapters throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors. SCORE was founded in 1964.
Notice the sentence; “Both working and retired executives and business owners...” and the other part, “donate” which means FREE!
When you consult with a SCORE volunteer, one of the first things they ask you is if you have a business plan. So many entrepreneurs have read and learned about the importance of a business plan but very few actually create one. Why do you think “Both working and retired executives and business owners” would ask you if you had a business plan if it wasn’t important?
Creating a real business plan is a daunting task. There are many free resources and even templates that you can use to build the plan, but few people fill in all of the blanks unless they are seeking financing or investors. Even then, the plan is rarely an accurate picture much less a guide for the business; it is a pie in a sky hope and pretty picture to capture funding. I know this from personal experience, and I must admit that I have fallen victim to complacency and not accomplished a working business plan for my businesses in the past. I never said I was perfect, just experienced.
Another case in point; I was convinced by some people to help them start an online business. I interviewed the principals and felt I could trust them. I asked about a business plan and was assured it would be done while I worked on the web site. Long story short, I finished the web site and it worked well. We sold many products and things looked rosy. (It had more than 12,000 SKUs, integrated into QuickBooks, and made nearly 1000 sales.) But when revenue projections (read hopes and promises) were not achieved, I asked about the business plan to which I received a good amount of frustration and anger. I required the principals to contact SCORE, accomplish a business plan or I was walking. They never did... and I did. I estimate that I invested more than a thousand hours on that project and received no compensation at all. Yep, live and learn right? Nope, I allowed it to happen again albeit differently, I still received nothing. The first one was a lesson; the second one was just stupid. It is also why I am no longer in the web development business.
Why did I suggest that a well thought out business plan was important? Because, it gets into the heart of a business, considering everything from phone systems, technology, accounting, suppliers and overhead which draws a very nice picture of revenue requirements for each step of the way. Does this plan need to be formal enough for a board of directors? No! I have reams of paper with many of these thing issues written out. The point is that the time and effort were spent and a good plan is in place.
I’m at 2,340 words in this diatribe and I’m losing focus. The title of this post – which I wrote yesterday – is “The Business Blogger In Me,” and it was inspired by the number of unqualified business blogs I’ve discovered and the bad advice they offer. I get frustrated when I see small business people being led in directions that are not helpful and destructive and I ended up sharing much more than I intended. In all fairness, my opinion is about as good as theirs I guess, the difference is I offer insight from a business owners perspective; an entrepreneur who has succeeded and failed in the past and one who is willing to share. My original point was to try to share what I feel is the importance of knowing who is offering you small business advice. Know who they are, what they have accomplished and why you are reading/listening to them. We all need advice and help, but with limited time and resources, we should choose advisors who are qualified to offer it. I’m not offering to be that resource, there are many other people much wiser, and more experienced than I. Just remember, it’s your business not theirs and you have a dream and passion that no other will invest in your business. Use that first and filter the din of advice from others through your own knowledge, experience and gut.
Yes, I like to blog, I like to share, and frankly I do like it when people ask for my advice. I have no interest in becoming one of those bloggers or consultants who make a living from their advice. I just enjoy typing out my thoughts and sharing my opinion. Thank you for reading.