Written by Dave Lavinsky on Monday, December 7, 2009
Imagine for a moment that you were really great at something, but never acted on it.
How would your life, and the lives of others been impacted?
Let's take Michael Jordan. What would have happened if he never picked up a basketball? What would he be doing today? (I would bet he wouldn't be retired.) How much wealth would he and his family have lost out on?
Interestingly, a lot of people think that opportunities are lost or squandered when people are young. This is clearly not always the case.
Consider Grandma Moses. Grandma Moses loved painting as a child. But, she and her family didn't consider painting to be a real, paying job, so she spent decades earning a living doing embroidery work.
But, this all changed when Grandma Moses reached her seventies. Her arthritis worsened and she was unable to continue doing embroidery. So, Grandma Moses finally set out to do what she loved - painting.
She went to an Arts & Crafts store, purchased some supplies, and went to work. Within a few years, Grandma Moses would be creating two paintings a week. And each of these paintings would earn her more than she earned in a lifetime doing embroidery. In fact, in her eighties and nineties, she made paintings that would earn her over $300,000 each.
Now let's look at the impact of Grandma Moses' decision to start painting. Financially, she made millions. Money that would help her grandchildren get better educations, get better health coverage and live better lives. She also generated thousands in tax dollars which, among other things, would help fund essential projects. She generated jobs; she must have had assistants who helped her purchase supplies, arrange art showings, and handle her travel and financial affairs.
And then there are the millions of people that Grandma Moses touched by simply allowing them to look at her beautiful paintings.
Yes, even at an elderly age, Grandma Moses made an impact on millions of people.
But what about you and I?
The fact is that each of us have talents. And when we choose to reveal them, and nurture them, and fight to use them - essentially, when we choose to become true entrepreneurs - we positively impact many lives.
Because of this fact, I was not surprised by the Kauffman Foundation's recent study entitled "Where Will The Jobs Come From?" The study reveals clear evidence that "new and young companies and the entrepreneurs that create them are the engines of job creation and eventual economic recovery."
In fact, since 1977, net job creation in the American economy would have been negative in all but a handful of years if not for startups and young companies (defined as < 5 years of age). And even in good times, like in 2007, when 12 million new jobs were added, two-thirds of the new jobs were created by startups.
So, if you are debating starting a business, now's the time to do it. If you have an existing business and are thinking about new growth initiatives, now is the time to launch them.
Yes, now is the time. It's not just about your personal satisfaction. It's about the tens, hundreds, thousands and even millions of lives that you can positively influence with your gift of entrepreneurship. It's time to really put that gift to use.
Written by Dave Lavinsky on Tuesday, December 1, 2009
Have you ever driven somewhere, gotten there, and forgot about the last minutes of the drive? You know that you were driving. But your mind must have been somewhere else, since you can't really remember the turns you made, the lights you stopped at, etc.
Growthink University members can download the full interview here: http://www.growthinkuniversity.com/members/378.cfm
Written by Dave Lavinsky on Tuesday, November 24, 2009
When Jay Turo and I founded Growthink a decade ago, we each had a ton of responsibilities.
To hear a short clip of the interview, click the blue triangle on the player below:
Growthink University members can download the full interview here: http://www.growthinkuniversity.com/members/376.cfm
Written by Dave Lavinsky on Saturday, November 21, 2009
This past Tuesday, Warren Buffett and Goldman Sachs announced that they were donating $500 million to assist 10,000 small businesses in the U.S.
To begin, this is pretty cool. Any money invested in small businesses is sure to lead to more jobs and an improved economy. And even better when this money is not coming from taxpayer dollars.
However, what I found most interesting was where Buffet decided to invest the $500 million. I say "Buffett" and not Goldman Sachs, since Buffett's Berkshire Hathaway Inc. is the largest shareholder in Goldman Sachs, giving me the impression that he was calling the shots on this one.
According to Bloomberg.com, the moneys will be allocated as follows: "$200 million to local community colleges, universities and other institutions to provide small-business owners with practical business education.... $300 million through a combination of lending and philanthropic support to community development financial institutions."
$200 million to "practical business education" - that's what rang out the loudest to me. As one of the greatest investors ever, Buffett knows first hand that entrepreneurs that succeed are the ones who have the right business education and training.
Successful entrepreneurs realize that they themselves are one of their organization's greatest assets. As such, they constantly invest in themselves by taking courses, reading books, and upgrading all of their key skills.
Regarding the other $300 million, it is being provided to community development financial institutions (CDFIs). CDFIs generally provide financing and related services to individuals and small businesses in struggling or underserved communities. If you have or would like to start a business in one of these communities, go to CFDI Coalition website to find a list of certified CFDIs.
Finally, speaking of practical business training, I'm unveiling a brand-new version of Growthink University this week.
Learn more, here:
Written by Dave Lavinsky on Tuesday, November 17, 2009
I got home for work the other day and sat down with my family for dinner.
"How was your day?" I asked my kids. My kids proceeded to tell me about how their days went. Everything seemed like it was going well.
So, I asked my son, "Did you get to practice lacrosse today?" As a bit of background, my son plays on a highly competitive lacrosse team, and if he doesn't practice enough, he risks losing his position.
"No dad. I didn't have time," he replied.
Now this, unfortunately, is NOT an acceptable answer. In fact, according to Napoleon Hill, author of the famed book, "Think And Grow Rich," what my son gave me was an alibi (or excuse) for not succeeding.
In his final chapter, Hill listed 57 alibis for not succeeding. The list started with the following:
Since I had just finished listening to the book (I constantly listen to books on tape while driving), the alibi "IF I only had time" was fresh in my head.
So, the correct thing to say to my son would have been, "You didn't have time. That's not an excuse. If you really want to succeed at lacrosse, you would have made time."
But, I didn't say that for one simple reason. And that reason is that my son is just nine years old. He doesn't need that type of aggressive coaching, yet.
But you, each of you reading this today, to you, I will stand by giving you a hard time for making any of these alibis. And as importantly, I hold myself accountable for every time I say I don't have time or "if" this or "if" that.
These "ifs" are unacceptable. If each of us are going to achieve our true potential as entrepreneurs, we need to remove these alibis. We need to envision success, and create business and action plans to achieve it. And we must not stop there. Because our original business and action plans most like will NOT succeed.
Rather, we need to keep assessing our progress and modifying our plans until we achieve success. And never ever, along the way, can we get caught up in alibis. Since these alibis will kill our positive energy. They will take us down the wrong paths. And they will prevent us from achieving our goals.
For my son, I'll give him five more years until I get tougher on him and teach him to stop making alibis. For you and me, let's put our alibis behind us. And focus our energies on achieving massive success. And then, making sure the people we know and love also do the same.
Written by Dave Lavinsky on Tuesday, November 10, 2009
One of the absolute keys to a successful business plan is to create the right business plan milestones. Doing so is essential to securing investors and making real progress towards achieving your goals.
There are lots of things that all of us do, and do as well as we have to, without thinking.
If you still need to complete your business plan, let me send you my CD with seven more essential business plan secrets. I explain why I'm doing this and how you can get it now, on this page right here:
Written by Dave Lavinsky on Monday, November 9, 2009
I recently recorded a CD with my 7 best business plan secrets.
After listening to my CD, you'll be far ahead of your competition because you'll have critical knowledge and skills, such as:
Written by Dave Lavinsky on Monday, November 9, 2009
Watch my video review of the book below:
Written by Dave Lavinsky on Tuesday, November 3, 2009
This past Sunday, CIT Group Inc., the 101-year-old commercial lender, filed for bankruptcy.
This filing is NOT good for American businesses, as CIT Group funds, via providing loans and working capital, about 1 million businesses.
CIT's bankruptcy will not only prove difficult for the small and medium-sized businesses that rely on CIT's working capital loans. But, it hurts the thousands of startups who planned to approach CIT for startup business financing; with the bankruptcy, it is highly unlikely that CIT will be able to make the same number of new loans as before.
It is for reasons such as this, that I frequently preach that businesses leverage multiple forms of capital. In fact, you've probably heard me talk of companies like Google, who leveraged credit cards, angel capital, venture capital and bank loans in its early days.
One form of startup business financing is never enough. It's the classic "putting all of your eggs in one basket." In addition to the risk involved in this strategy, it is also typically less expensive to diversify your financing. For example, bank loans used for the purchasing of equipment is almost definitely less expensive than using equity financing for the same expenditure.
Personally, my favorite forms of capital are creative/alternative financing (since it is easy to raise if you know what to look for), angel financing (also easy to raise if you know how to do it) and bank financing (easy to raise if your business is a good fit for it).
I'm also a big fan of venture capital and grant financing, but these forms of capital take a little longer to raise and are more challenging (but the rewards are significant if you are successful).
To become an expert in raising each of these forms of capital, learn more with the links below:
Growthink's Definitive Guide to Creative & Alternative Financing Sources presents 28 proven creative and alternative sources of capital to fund your new or growing business.
Growthink's Step-By-Step Guide to Raising Capital from Angel Investors will guide you through the process of raising money from individual "angel" investors.
Growthink's Step by Step Guide to Raising Capital From Banks and SBA Lenders will teach you how to quickly and easily get the right SBA and/or bank loan to fund your business.
Growthink's Step-By-Step Guide to Raising Venture Capital presents our proven system for raising venture capital for your business on favorable terms.
Growthink's Step-By-Step Guide to Raising Capital from Grants will guide you through the process of winning grants to fund your business.
Written by Dave Lavinsky on Monday, November 2, 2009
Entrepreneurs must have many skills. They must be able to spot opportunities. They must be able to create plans to seize those opportunities. And they must execute on those plans.
Carrots are needed to motivate employees. But what I found most interesting about the author's findings was that recognition is more effective than monetary rewards. This is a critical finding for all managers, and particularly entrepreneurial managers who typically operate in cash-restrained environments.
Knowing how to motivate your employees will allow you to build a team that is as passionate about success as you are. And this will ultimately lead to your company achieving its goals. So, while it may not seem like a mission-critical focus today, it's definitely worth your time and effort. So don't delay...
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