GoodnightEntrepreneur

Helplessness vs. self-governance

October 28, 2008 – 7:32 pm
by Rene Hattingh-Rust

My mother is keeping the newspapers these days – she feels that we are amidst a momentous historical event and she wants to keep her personal archive up to date.

Years from now people will refer to the global recession (depression?) of 2008/9.  They will discuss the major economic and existential changes that came about due to the 2008/9 financial crisis.

We are on a giant ‘slip and slide’; there is no turning back and we’re not too sure where it is going to spit us out.

“But this too shall pass.”

All of a sudden the concept of “self governance” seems unattainable.  Instead, we seem to be helpless against the effect of choices of big institutions, governments and “banking executives”. Significant global changes that we have no control over impact our lives drastically. All this is a textbook situation to foster feelings of helplessness.

The Nazi concentration camps are very typical examples of conditions that also heightened feelings of helplessness.  Yet, Frankl documented people who amid all off the inhumanity and devastation still found meaning.

The key principals he ascribed as reason for these people’s emotional survival were:

• To live for things outside of themselves.

• To find meaning even in suffering.

• The freedom of choice to rise above circumstances.

“Man does not simply exist but always decides what his existence will be, what he will become in the next moment.  Man is capable of changing the world for the better if possible and of changing himself for the better if necessary.”

• To have a “zestful experience of life”.

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StrategyTuesday #26: Ins and outs

October 14, 2008 – 8:11 pm
by Rene Hattingh-Rust

As an entrepreneur you need to have your finger on the pulse of your business. You have to know all the small details of you business so that you would be able to make cutting edge decisions on where to go with your business.

You need to know what your strengths and weaknesses are. You have to determine where you are so that you can determine what you need to focus on to get were you want to be. You need to ask yourself; “What am I doing right and what am I doing wrong?”

One of my mentors always demanded that I know every single detail of my business, that I eat, sleep and drink it constantly.

Abraham propose no less than 50 questions to help you understand the ins and the outs of your business.

Here are a few of those questions:

• What was the initial motivation (occurrence) for starting the business? Is it still the same today or have there been changes?
• Why did my clients originally (in the beginning of the business) buy from me?
• Would I rather attract new clients or acquire more money from my existing clients?
• How well connected or how involved am I with my clients?
• Who is my biggest competitor and what do they offer that I don’t?
• What is my competitors’ biggest failure and how can I fill the void their failure left?
• What do my clients really want? How do I know that?
• What does it cost me to get a new client?
• What is my greatest source of new business? And what do I do to secure this business?
• What was my biggest marketing success so far?
• After the initial sales do I have a systematic methodology to communicate and eventually resell to my clients?
• What are my average order or transaction’s size and amount?

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Student Power

October 9, 2008 – 10:54 am
by Rene Hattingh-Rust

As an experimental exercise I gave my students R50 with the instructions to utilise it in whatever (legal) moneymaking scheme they could think of. I wanted to see what profits they could generate. They only had two weeks after which they had to pay me back. Any profit they made would be theirs for the keeping.

Observations:
There were students who I thought would never take on the challenge as they seemed not to be the kind of people who would easily venture into the unknown.

Yet I was pleasantly surprised at the positive reaction of the group. As a whole the group made 250% profit on the money I gave them.

I think the absurdity of the situation and the group dynamics added to this experiment being so successful.

• Nobody really expected to make serious money from R50 and within only 2 weeks. Yet I think this fact took away some of the pressure to be successful and motivated the students to be adventurous.
• Upon hearing the feedback from their classmates some of the students who were initially reluctant decided to rise to the occasion.

This exercise gave the students an opportunity to experience success in a field many of them had no previous experience in. Secondly it gave them “permission” to be playful and adventurous.

Since completing this experiment a few of the students have continued to engage in various business ventures. Nothing serious or long-term yet but I’ve witnessed within the group a change of mind – to them the world is now full of possibilities and opportunities.

It is now very stimulating to be amongst them.

Posted in Passion | 1 Comment »

More entrepreneurs please

October 3, 2008 – 3:21 pm
by Rene Hattingh-Rust

Clem Sunter and Chantell Ilbury are scenario planners who for years have been identifying probable triggers in society and then describing the possible futures that might result because of these triggers.

In an article “Triggers that change the future” they identified 2 triggers for South Africa (and 2 for the rest of the world), namely
• A drop in our global competitiveness rating and
• An internal conflict in one form or another.

Both these triggers have already occurred in South Africa. We have dropped 15 places in our global competitiveness during the past two years and have experienced xenophobic outbreaks as well as severe conflict within the ranks of the ANC.

The futures that might result from these triggers could be that we lose our status as the leading economy in Africa and even drop off the charts all together like Somalia.

Or, with brave leadership (we have a new head of state) and by fixing the issues that went wrong (we have new ministers of health and security) South Africa can come back even stronger and be in an even better position to wear off the “Hard Times” that are looming over the west.

The critical actions we as a nation need to take are:
• To aggressively promote and peruse entrepreneurs and entrepreneurial ventures;
• To seek greater dominance in those economical niches that are in line with our natural strengths, namely tourism, natural resources and being the gateway to the African continent.

As Mr Nelson Mandela stated:
You playing small do not serve the world.

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The –INSERT NAME HERE- Fan club

September 25, 2008 – 3:19 pm
by Rene Hattingh-Rust

I came across a very interesting article of Kevin Kelle. After reading it and following various links I realised that a lot of readers have also ‘discovered’ his article and contributed and referred to it. Such is the nature and advances of the digital world. We are globally exposed to ideas and we can use it, lose it or add to it.

I found Kelle’s article on 1000 True Fans very stimulating and think it might be useful to entrepreneurs.

The concept of 1000 true fans is the same as the idea of micro-celebrities. He argues that anyone who produces works of art can survive and have a comfortable life if they have at least 1000 true fans. A true fan is someone who religiously follows your work and will purchase anything and everything you produce.

The reason you can survive with only 1000 true fans (the number is not set, it is more the idea of a small following) is mainly due to the connectivity we have via the Internet and availability of digital technology. The creation, duplication and distribution of small quantities of creations are easy, fast and inexpensive. The word of mouth marketing attainable through the virtual tribes and social networks also potentially reduce marketing costs.

I think that there are business opportunities within this reasoning. An entrepreneur can start a new business by planning and working towards the creation and connection with 1000 true fans.

Kelle mainly focuses on artists such as musicians, photographers, craftspersons, performers, animators, designers and video makers. But I think with innovative thinking this reasoning can be applied to software developers, information specialists, lawyers, interior decorators, restaurants and more.

The digital world is available to everyone and with relative little money and fuss one can become famous to 1000 true fans who trust you and value your work enough to spend money on you in order to secure that your work stay vibrant.

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Virtual tribes

September 23, 2008 – 6:40 pm
by Rene Hattingh-Rust

My friend recently became father for the first time and he uploaded the pictures of his newborn baby girl and introduced her to his entire group of friends via facebook. The world as our parents knew it have changed and digital technology are more integrated in our way of living than ever before.

It has also redefined our social life.

Today, people are seeking out virtual groups who have common feelings, causes, and ideals; groups who validate your own belief system. We are forming global ‘virtual tribes’ without necessarily going outside of our immediate environment. We use information to click and connect with one another and to link to people who share our interests.

Through virtual tribes we satisfy the age old human need namely to belong.

These tribes have potential power and have brought about significant changes that are important for entrepreneurial businesses to take note of.

Firstly, they have made word of mouth a very powerful marketing tool. People rely strongly on the recommendations and opinions of the people they trust, the search filters they trust and the social networks they trust because they advise them well. People today have become “blind” to traditional mass marketing such as TV advertisements.

Secondly, virtual tribes and the Internet have created a new kind of celebrity: a micro-celebrity. Cnn.com stated that fame is no longer about getting 15 minutes of fame; it is about becoming famous to 15 people. And this kind of fame is attainable by almost everyone and every business on the Internet.

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Think Woman

September 17, 2008 – 4:55 pm
by Rene Hattingh-Rust

On the subject of understanding the female market Tom Peters states: “ I admit it. Reluctantly. I didn’t know what I didn’t know. Didn’t have a clue actually”.

As per my post “What your business will and should be”, one of the trends today is to understand the buying power of women and to direct products towards their specific needs.

There is a general feeling that men cannot understand and satisfy women needs. I am not sure if it is that definite but I know that it is challenging for men to understand the extent of women’s needs.

Spring Holiday is around the corner. All the big petrol filling stations and restrooms along the main highways are getting ready to lure their portion of the holiday travellers to their facilities – presumable to fill up their vehicles. But as one filling station owner told me his main business is his convenience store.

Yet, I don’t think the owners of these facilities truly understand the needs of women or how powerful they can be as loyal clients.

The following comical illustration sent to me by a lady friend shows that men just don’t get it…yet…

When you have to visit a public toilet, you usually find a line of women, so you smile politely and take your place. Once it’s your turn, you check for feet under the cubicle doors. Every cubicle is occupied.

Finally, a door opens and you dash in. You get in to find the door won’t latch. It doesn’t matter; the wait has been so long …

The dispenser for the modern ’seat covers’ (invented by someone’s Mum, no doubt) is handy, but empty. You would hang your bag on the door hook, if there was one, so you carefully, but quickly drape it around your neck, (Mum would turn over in her grave if you put it on the FLOOR!) down with your pants and assume ‘The Stance’.

To take your mind off your trembling thighs, you reach for what you discover to be the empty toilet paper dispenser.

Your thighs shake more. You remember the tiny tissue that you blew your nose with yesterday - the one that’s still in your bag (the bag around your neck).

Someone pushes your door open because the latch doesn’t work. The door hits your bag, which is hanging around your neck in front of your chest and you and your bag topple backward against the tank of the toilet.

‘Occupied!’ you scream, as you reach for the door, dropping your precious, tiny, crumpled tissue in a puddle on the floor, while losing your footing altogether and sliding down directly onto the TOILET SEAT!

At this point, you give up. You’re exhausted.

As you exit, you spot your hubby, who has long since entered, used and left the men’s toilet. Annoyed, he asks, ‘what took you so long and why is your bag hanging around your neck?

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Life imitates digital

September 12, 2008 – 3:22 pm
by Rene Hattingh-Rust

If you could understand the future

What would you do different today?

Another trend I would like to elaborate on is “life today imitates digital”.

More people interact through PC’s, PDA’s, cell phones and dial-up connections today than ever before. We book a movie online, we pay our bills, do our banking without having to see the inside of the bank, we are part of a global virtual group, and with a click of a button we can choose to disassociate ourselves from virtual groups, we have access to volumes of information and we can contribute to this database of information, we upload our photos and share it with friends around the world.

And all of the above we can do 24/7 for 365 days of the year.

The more digital technology is integrated in our lives the more we experience “reality” through digital technology. We are expecting products and services to at least match what we are used to in digital technology.

Some market characteristics that can be related to our digital and online culture are:

• We don’t want to be unplugged
• We want immediate gratification
• We want automation of routine tasks and technology to simplify our lives
• We want a variety of choices and we want customisation
• We want information in order to make our own informed choices
• We want authenticity
• The world is more transparent and every corporate practice is knowable. And through our loyalty (or the withdrawal of it) we hold corporations accountable for their actions.
• Word of mouth marketing as well as permission based marketing is very important
• Virtual experience and adventure becomes more widespread and more attainable. The notion of “indulgence without consequences” is becoming increasingly attractive and fulfilling.

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The Boomer trend

September 10, 2008 – 2:35 pm
by Rene Hattingh-Rust

If you could understand the future
What would you do different today?

Understanding trends can help to reshape your business better for the future. In my last post I have mentioned some trends and would like to elaborate on them with my next few posts.

Baby boomers are the generation born between 1946 and the early 1960’s. This generation’s specific development stage and associated needs have dominated world markets.

In 2004 Walker reported, “the UK baby boomers held:

• 80% of the UK’s wealth and
• bought 80% of all top of the range cars,
• 80% of cruises and
• 50% of skincare products”.

However, researchers have noted that looking at the baby boomers as a single group will be incorrect and cause you to miss the diversity within the group. Thus, when you aim your business at the boomers you need to define the specific group you are targeting and identify their unique stage of life, physical ability, specific mindset and needs.

A very important fact for people planning to do business with the baby boomers is the “Inheritance Boom”. The financial experts predict that in the coming years the boomers generation will inherit $10.4 trillion.

Research reports on the activity and spending profile of the boomers showed: (Baucom &Grosch; The National Tour Association and Walker)

• The higher educated Baby Boomer generation are currently the largest segment of newspaper readers. Thus, newspaper advertising can be a good way to reach them.
• Baby Boomers make up 20% of total online users. No longer can the older population be viewed as afraid of or hesitant to use technology. Easy access to information is very important to them.
• 46% of boomers plan to work part-time for enjoyment. An additional 12% plan to start their own business.
• Leisure activities that enhance personal well-being and provide a new experience are in great demand with baby boomers.
• Travel is an important priority. Experiential travel and Military tours are gaining popularity.
• Boomers make up a large percentage of people who attend and promote the arts.
• As they enter maturity, the new “currencies” embraced by boomers will be time, comfort and access.
• Baby boomers are redefining what middle age is and part of it is a pursuit of youthful and vibrant lifestyles. But research warns us not to make the mistake to think they want to be 20 again. Baby Boomers want to feel as good as they possible can for their age – don’t market to them as if they are young adults.

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What your business will and should be

September 3, 2008 – 5:13 pm
by Rene Hattingh-Rust

In StrategyTuesday #24 I mentioned that Drucker said that in order to formulate your company’s mission statement you have to answer 3 questions, namely

• What is my business?
• What will my business be in the future (to modify, extend and develop your existing business) and
• What should my business be? (Identify new opportunities that are opening up and that will take your business to becoming a different business)

The last two questions are about the future directedness of your business. These are questions that will help you to not spend energy and money on yesterday’s definition of your business and of the market.

It is about understanding worldwide trends and translating it into an operational plan for your business.

Some trends identified by world-recognised trendspotters [Popcorn, Peters & Barletta, Aburdene & Naisbitt, Salzman] are:

• Baby boomer’s market: Post World War 2 generation born between 1946 and the early 1960’s. This generation’s specific development stage and associated needs have dominated world markets.
• Feminine Think: The way women think and behave is having an impact on business, causing a marketing shift away from a military model towards a relational one of supporting and empowering people.
• Life imitates the digital: Consumers today experience “reality” through their interaction with digital technology. They are accustomed to user-generated content, online groups, 24/7 gratification, automation, etc.
• Spirituality: It is an acknowledgment of the spiritual reality of human existence. It is a trend reaching back to spiritual roots in order to be strengthened for the future.
• Forming virtual tribes: Today people are seeking out a group that have common feelings, causes or ideals; validating one’s own belief system without necessary going outside of your immediate environment. For example Facebook, MySpace, etc.

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