“I have a Great Business Idea but no Business Plan. Do I really need a Business Plan to sell the Idea?”

Yes, you really need a business plan. Ideas are essentially worthless until they have a company built on top of them. They are like an idea for a novel or an idea for a movie. People buy the finished product, not the idea. So you need a business to capitalize on the idea, and you need a plan to start the business.

Here are some hard realities about business ideas:

* You can’t own an idea. You can protect inventions with patents and artistic work with copyrights, so people can own patents and copyrights. But there is no legal ownership of an idea.

* Real businesses don’t trade on ideas. Many professional investors won’t sign your nondisclosure documents because the person with the next appointment might have the same idea. Besides, they don’t want business ideas; they want businesses that can implement ideas. A large manufacturer might not sign your NDA because its development team could be working on the same idea, and they don’t want to limit their options.

* The real value of anything in a business is what you can sell it for, and you can’t really sell an idea. Many people seem to think they can generate a business idea or a product idea and sell that to a larger company that has the resources to make money with it. That just doesn’t happen.

* If it’s a good idea, it’s already out there. Somebody else is already working on it. Business ideas are like that. When Steve Jobs and Steve Wozniak started Apple Computer, there were already two personal computer manufacturing companies in existence and others struggling to start. The idea was obvious. When Jeff Bezos started Amazon.com, there were hundreds, maybe thousands of others with the same idea.

So if you have a great business idea, you have to make it happen. That is what your business plan is about. The value in the idea comes from implementing it, getting a team together to manage it, making the required investment, and getting started. That should be the focus of your plan. That is what Jobs and Wozniak did with Apple Computer — they found investors, hired the team, and launched the business. That is what Jeff Bezos did with Amazon. That’s what you have to do with your idea. Make it happen.

Your business plan helps you focus on simple fundamentals like showing up every day, returning phone calls, and offering value to customers. Business plans for most companies are for laying out the steps; focusing the growth and development; and setting specific milestones for business activities, sales, profits, and cash. The plan has to focus on the fundamentals, not the idea.

Where does the idea go in the plan? When you are developing a business plan for an idea-based new business, the idea is in all the nuts and bolts. It increases your market potential, it is the reason your product exists, it increases your sales, and it lowers your costs. The idea is in every single chapter of your plan because it influences the company: what it sells, its market, its strategy, its management team, and its financial projections.

The idea needs the business plan much more than the plan needs an idea. Measure the value of a business plan by the implementation it causes. That means milestones, dates, deadlines, tasks, resources, and commitment

“How to Overcome New Business Start-Up Fears”

By: Ron Koss
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Summary: Few entrepreneurs talk about “start-up fear.” But it’s real, and if you don’t deal with it, it can stymie your success. Earth’s Best Baby Foods cofounder Ron Koss shows how facing your fears can be motivating and self-enlightening–and in the end, will help you make smarter business decisions.

Here’s a question to consider if you’re contemplating starting a business. What would be worse: never leaping into an idea you’re passionate about because you’re afraid to fail, or leaping into that idea with all you’ve got, yet still possibly having to face failure?

What is failure? I had to confront this question unexpectedly when my twin brother, Arnie, drove into the Ronald McDonald House parking lot (1984) where my wife and I were comanagers, and announced, “I’ve decided to do the organic baby-food business. We’ve talked about it for years. It’s still a great idea. No one else has done it. Why not us? I’m doing it with you or without you.” And then he drove away leaving me in turmoil.

Here’s the question that dramatically settled into the pit of my stomach, as I watched Arnie’s red van disappear down the street. What if I lived my life and never “went for it” and never stuck with something through thick and thin, no matter what? What if I had to look back on my life and face all the reasons why my dreams didn’t come true and my ideals were never expressed? What if I knew that I only got my toes in the water of life, but never submerged myself, never swam to the other side because, through my toes, I anticipated the current to be impossible, or the other side undesirable, or my expectations to be unattainable?

The fear of such a life overwhelmed my fear of making a mistake, of failing in someway.

To be clear, the start-up anxieties did not disappear, but my resolve and readiness to go for something I believed in catapulted into the foreground. It was a never forgotten moment in my life. The result was the founding of Earth’s Best Baby Foods, the first organic baby food company in the United States, and now a $150 million dollar enterprise owned by the Hain Celestial Group.

Here are 5 powerful tips to either overcome your start-up fears or alternatively honor them.

1. Answer the question, “what if” for yourself.
There are only two scenarios: if I do, and if I don’t…leap into the start-up. So make the quiet time to answer these two questions and put your thoughts in writing. You might be surprised what emerges.

2. Don’t keep yourself isolated in a vacuum.
Avoid going in endless circles and torturing yourself with “go nowhere” mental gyrations. Break out and talk with the smartest people you know. Network. Get perspective. Be curious. Ask questions and engage with others who took the leap or chose not to. The input will be stimulating, guaranteed, and the next step(s) forward might reveal itself.

3. Know your nature, and honor it.
Most entrepreneurs are eternal optimists, and this predisposition often leads to trouble on one hand, but possibility on the other. They envision success and tend to be enamored with their great idea and perhaps even themselves. What about you? Are you preoccupied with failure, or more certain of success? If your answer is “failure,” it’s a potential tip-off that there maybe some mismatch between you the adventurer and the prospective start-up venture you’re imagining. Go back to Tip #1, the “What if” question, and imagine that you’re saying goodbye to your idea. You’re putting it to rest. Sit with that for a few days. Given your nature, is that a good decision or a bad one?

4. Trouble is inevitable, so don’t plan on avoiding it.
Strategize on how you’re going to meet it. If this prospect is not exciting and doesn’t galvanize you to be ready to work 24/7 or at least 12/6, your start-up fears might be your friends. Start-ups are demanding in ways that are likely to outstrip your imagination. If you’re not filled with passion, you may not have the necessary fuel to escape the force of gravity that all start-ups are subject to. There’s no way to be halfway pregnant and there’s no way to be half-way starting up.

5. Identify your strengths and weaknesses.
In relationship to your start-up idea, are you resourceful enough to plug the holes and address your weaknesses? Are you a collaborator? Can you energize others and build a support network? If you’re inclined to put your head down and bull forward, think again. Surround yourself with the expertise you don’t have and your start-up fears are more likely to be overcome. Remember, as an entrepreneur you don’t have to be “everything.” You just have to try to anticipate everything (no one does) and be resourceful, finding the help and support you need to go the distance.

Make use of your fears. Listen to them. Understand them. Talk to them. They can teach you a lot. But they are not the boss of you—or shouldn’t be. Empower yourself by not eliminating your start-up fears, but by meeting them head-on and overcoming them.

“Getting a Patent on Your Own without a Lawyer”

Here’s how to get a U.S. patent on your idea or invention –without a lawyer.

You have a great idea for an invention or product. Do you need to hire a lawyer to apply for a patent? In most cases, the answer is “no.” You can do it yourself, and save thousands of dollars on attorneys’ fees.
Filing a Patent Without an Attorney

Thousands of inventors have successfully navigated the patent system on their own. In fact, federal law requires patent examiners at the U.S. Patent and Trademark Office (USPTO) to help individual inventors who apply for patents without a lawyer’s help.

To obtain a patent, you need to:

* make sure your invention qualifies for a patent, and
* be able to describe all aspects of your invention.

These aren’t “legal” skills, and learning them is no different than learning any other skill, whether it’s auto repair, deck installation or gourmet cooking. Some steps are easy, others are more difficult. But by taking the process one step at a time, you can acquire a patent.
Steps to Filing a Patent Application

Here’s a quick look at the basic steps you need to take before filing a patent application. Nothing about the process requires a lawyer — there’s no court, no judge, no “legal” research. The USPTO has specific rules, but you can follow them just as you would a recipe in a cookbook.

1. Keep a Careful Record of Your Invention

Record every step of the invention process in a notebook. Describe and diagram every aspect and every modification of the invention, including how you came up with the idea for it. Depending on the invention, you may also need to build and test a prototype. Document all of these efforts. Sign and date each entry and have two reliable witnesses sign as well.

2. Make Sure Your Invention Qualifies for Patent Protection

You cannot get a patent just on an idea. You must show how your invention works and your invention must be new. This means it must be different in some important way from all previous inventions. It also cannot be for sale or be known about for more than a year before you apply for a patent.

What types of inventions can be patented?

The U.S. Patent and Trademark Office (USPTO) issues three different kinds of patents: utility patents, design patents, and plant patents.

To qualify for a utility patent — by far the most common type of patent — an invention must be:

* a process or method for producing a useful, concrete, and tangible result (such as a genetic engineering procedure, an investment strategy, computer software, or a process for conducting e-commerce on the Internet)
* a machine (usually something with moving parts or circuitry, such as a cigarette lighter, a sewage treatment system, a laser, or a photocopier)
* an article of manufacture (such as an eraser, a tire, a transistor, or a hand tool)
* a composition of matter (such as a chemical composition, a drug, a soap, or a genetically altered lifeform), or
* an improvement of an invention that fits within one of the first four categories.

If an invention fits into one of the categories described above, it is known as “statutory subject matter” and has passed the first test in qualifying for a patent. But an inventor’s creation must overcome several additional hurdles before the USPTO will issue a patent. The invention must also:

* have some usefulness (utility), no matter how trivial
* be novel (that is, it must be different from all previous inventions in some important way)
* be nonobvious (a surprising and significant development) to somebody who understands the technical field of the invention.

For design patents, the law requires that the design be novel, nonobvious, and nonfunctional. For example, a new shape for a car fender, a bottle, or a flashlight that doesn’t improve its functionality would qualify.

Finally, plants may qualify for a patent if they are both novel and nonobvious. Plant patents are issued less frequently than any other type of patent.

The following items are just some of the things that might qualify for patent protection:

biological inventions
business methods
carpet designs
chemical formulas or processes
clothing accessories and designs
computer hardware and peripherals
computer software
containers
cosmetics
decorative hardware
e-commerce techniques
electrical inventions
electronic circuits
fabrics and fabric designs
food inventions
furniture design
games (board, box, and instructions)
housewares
Internet innovations
jewelry
laser light shows
machines
magic tricks or techniques
mechanical inventions
medical accessories and devices
medicines
musical instruments
odors
plants
recreational gear
sporting goods (designs and equipment)

3. Assess the Commercial Potential of Your Invention

Applying for a patent is a business decision. Even without a patent attorney or the use of professionally prepared patent drawings, it costs approximately $1,500 in fees to file and obtain a patent from the USPTO. Before you spend the time and money to file a patent application, you need to research the market you hope to enter and decide whether it’s worth the outlay of funds.

4. Do a Thorough Patent Search

To make sure your invention is new, you need to search all the earlier developments in your field. This involves searching U.S. (and sometimes foreign) patents, as well as other publications like scientific and technical journals, to find related inventions.

Although patent searching is time consuming, it can be mastered with practice. Even if you decide to hire a professional later on in the process, you know the most about your invention, so you are the best person to start the search.

You can start your research on the Internet, but you may also want to visit a Patent and Trademark Depository Library, where you can search earlier patents and get help from a librarian.

5. Prepare and File an Application With the USPTO

When you file with the USPTO, you can either file a full-blown regular patent application (RPA) or a provisional patent application (PPA).

Provisional patent application (PPA): A PPA is not an actual application for the patent itself. Filing a PPA simply allows you to claim patent pending status for the invention and involves only a small fraction of the work and cost of a regular patent application.

All that is required to file a PPA is a fee of $110 ($220 for large companies), a detailed description of the invention, telling how to make and use it, and an informal drawing. Then, you must file an RPA within a year of filing the PPA. If you don’t, you can no longer claim the PPA filing date.

“The Top Leadership Qualities”

Leadership can be defined as one’s ability to get others to willingly follow. Every organization needs leaders at every level. Leaders can be found and nurtured if you look for the following character traits.

A leader with vision has a clear, vivid picture of where to go, as well as a firm grasp on what success looks like and how to achieve it. But it’s not enough to have a vision; leaders must also share it and act upon it. Jack Welch, former chairman and CEO of General Electric Co., said, “Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.”

A leader must be able to communicate his or her vision in terms that cause followers to buy into it. He or she must communicate clearly and passionately, as passion is contagious.

A good leader must have the discipline to work toward his or her vision single-mindedly, as well as to direct his or her actions and those of the team toward the goal. Action is the mark of a leader. A leader does not suffer “analysis paralysis” but is always doing something in pursuit of the vision, inspiring others to do the same.

Integrity is the integration of outward actions and inner values. A person of integrity is the same on the outside and on the inside. Such an individual can be trusted because he or she never veers from inner values, even when it might be expeditious to do so. A leader must have the trust of followers and therefore must display integrity.

Honest dealings, predictable reactions, well-controlled emotions, and an absence of tantrums and harsh outbursts are all signs of integrity. A leader who is centered in integrity will be more approachable by followers.

Dedication means spending whatever time or energy is necessary to accomplish the task at hand. A leader inspires dedication by example, doing whatever it takes to complete the next step toward the vision. By setting an excellent example, leaders can show followers that there are no nine-to-five jobs on the team, only opportunities to achieve something great.

Magnanimity means giving credit where it is due. A magnanimous leader ensures that credit for successes is spread as widely as possible throughout the company. Conversely, a good leader takes personal responsibility for failures. This sort of reverse magnanimity helps other people feel good about themselves and draws the team closer together. To spread the fame and take the blame is a hallmark of effective leadership.

Leaders with humility recognize that they are no better or worse than other members of the team. A humble leader is not self-effacing but rather tries to elevate everyone. Leaders with humility also understand that their status does not make them a god. Mahatma Gandhi is a role model for Indian leaders, and he pursued a “follower-centric” leadership role.

Openness means being able to listen to new ideas, even if they do not conform to the usual way of thinking. Good leaders are able to suspend judgment while listening to others’ ideas, as well as accept new ways of doing things that someone else thought of. Openness builds mutual respect and trust between leaders and followers, and it also keeps the team well supplied with new ideas that can further its vision.

Creativity is the ability to think differently, to get outside of the box that constrains solutions. Creativity gives leaders the ability to see things that others have not seen and thus lead followers in new directions. The most important question that a leader can ask is, “What if … ?” Possibly the worst thing a leader can say is, “I know this is a dumb question … ”

Fairness means dealing with others consistently and justly. A leader must check all the facts and hear everyone out before passing judgment. He or she must avoid leaping to conclusions based on incomplete evidence. When people feel they that are being treated fairly, they reward a leader with loyalty and dedication.

Assertiveness is not the same as aggressiveness. Rather, it is the ability to clearly state what one expects so that there will be no misunderstandings. A leader must be assertive to get the desired results. Along with assertiveness comes the responsibility to clearly understand what followers expect from their leader.

Many leaders have difficulty striking the right amount of assertiveness, according to a study in the February 2007 issue of the Journal of Personality and Social Psychology, published by the APA (American Psychological Association). It seems that being underassertive or overassertive may be the most common weakness among aspiring leaders.

A sense of humor is vital to relieve tension and boredom, as well as to defuse hostility. Effective leaders know how to use humor to energize followers. Humor is a form of power that provides some control over the work environment. And simply put, humor fosters good camaraderie.

Intrinsic traits such as intelligence, good looks, height and so on are not necessary to become a leader. Anyone can cultivate the proper leadership traits.

“What is an Action Plan Template?”

Step 1: The Plan

The first step to building an action plan template is to outline the final goal. Write down you final objective including the time to completion and cost of the project. Next break down the path to that goal in several consecutive steps. Assign a cost and time to each of these steps. Take not if multiple steps can be completed at the same time of one step must preclude another.

Step 2: The Assignments

Your next step is to assign your tasks to the member in your group. Consider the strengths and weaknesses of each individual as try to assign tasks that are most suited to each member of the group. Include a clear outline of the task itself and the final goal of the task. Include a time frame and deadline as well as the maximum cost of this task. For each of these tasks also include a sequential set of steps that should be followed to complete the task.

Step 3: The Meeting

Now that you have developed a plan and set tasks for each group member it is time to get everyone together. At this meeting you will outline the overall goal of the assignment. You will also dole out the tasks. All team members must be aware of what others in the group are doing to complete the goal. Therefore it is very important to make sure everyone understands what their role is as well as the roles of their peers.

Step 4: Tracking

Now that the tasks are being completed, the next step in the action plan template is monitoring each task. You want to know where each team member is in their task and their expected timeline to completion. You might find a step you expected to move along quickly is actually taking a bit longer than expected. Be prepared to alter timelines and reprioritize tasks in response to delayed goals and unexpected roadblocks.

Step 5: Final Assessment

Once the goal has been completed go back through your action plan template. Take special note of where tasks took longer than expected. Evaluate your members’ performances and notate particular strengths and weaknesses so you will have a better idea of who to assign to future tasks. Evaluate your own overall performance and ask for your groups’ feedback as to what went right and what could be improved upon.

“7 Habits of Highly Effective People”

Summary of Stephen R. Covey’s
The 7 Habits of Highly Effective People

In his #1 bestseller, Stephen R. Covey presented a framework for personal effectiveness. The following is a summary of the first part of his book, concluding with a list of the seven habits.

Inside-Out: The Change Starts from Within

While working on his doctorate in the 1970’s, Stephen R. Covey reviewed 200 years of literature on success. He noticed that since the 1920’s, success writings have focused on solutions to specific problems. In some cases such tactical advice may have been effective, but only for immediate issues and not for the long-term, underlying ones. The success literature of the last half of the 20th century largely attributed success to personality traits, skills, techniques, maintaining a positive attitude, etc. This philosophy can be referred to as the Personality Ethic.

However, during the 150 years or so that preceded that period, the literature on success was more character oriented. It emphasized the deeper principles and foundations of success. This philosophy is known as the Character Ethic, under which success is attributed more to underlying characteristics such as integrity, courage, justice, patience, etc.

The elements of the Character Ethic are primary traits while those of the Personality Ethic are secondary. While secondary traits may help one to play the game to succeed in some specific circumstances, for long-term success both are necessary. One’s character is what is most visible in long-term relationships. Ralph Waldo Emerson once said, “What you are shouts so loudly in my ears I cannot hear what you say.”

To illustrate the difference between primary and secondary traits, Covey offers the following example. Suppose you are in Chicago and are using a map to find a particular destination in the city. You may have excellent secondary skills in map reading and navigation, but will never find your destination if you are using a map of Detroit. In this example, getting the right map is a necessary primary element before your secondary skills can be used effectively.

The problem with relying on the Personality Ethic is that unless the basic underlying paradigms are right, simply changing outward behavior is not effective. We see the world based on our perspective, which can have a dramatic impact on the way we perceive things. For example, many experiments have been conducted in which two groups of people are shown two different drawings. One group is shown, for instance, a drawing of a young, beautiful woman and the other group is shown a drawing of an old, frail woman. After the initial exposure to the pictures, both groups are shown one picture of a more abstract drawing. This drawing actually contains the elements of both the young and the old woman. Almost invariably, everybody in the group that was first shown the young woman sees a young woman in the abstract drawing, and those who were shown the old woman see an old woman. Each group was convinced that it had objectively evaluated the drawing. The point is that we see things not as they are, but as we are conditioned to see them. Once we understand the importance of our past conditioning, we can experience a paradigm shift in the way we see things. To make large changes in our lives, we must work on the basic paradigms through which we see the world.

The Character Ethic assumes that there are some absolute principles that exist in all human beings. Some examples of such principles are fairness, honesty, integrity, human dignity, quality, potential, and growth. Principles contrast with practices in that practices are for specific situations whereas principles have universal application.

The Seven Habits of Highly Effective People presents an “inside-out” approach to effectiveness that is centered on principles and character. Inside-out means that the change starts within oneself. For many people, this approach represents a paradigm shift away from the Personality Ethic and toward the Character Ethic.

The Seven Habits – An Overview

Our character is a collection of our habits, and habits have a powerful role in our lives. Habits consist of knowledge, skill, and desire. Knowledge allows us to know what to do, skill gives us the ability to know how to do it, and desire is the motivation to do it.

The Seven Habits move us through the following stages:

1. Dependence: the paradigm under which we are born, relying upon others to take care of us.

2. Independence: the paradigm under which we can make our own decisions and take care of ourselves.

3. Interdependence: the paradigm under which we cooperate to achieve something that cannot be achieved independently.

Much of the success literature today tends to value independence, encouraging people to become liberated and do their own thing. The reality is that we are interdependent, and the independent model is not optimal for use in an interdependent environment that requires leaders and team players.

To make the choice to become interdependent, one first must be independent, since dependent people have not yet developed the character for interdependence. Therefore, the first three habits focus on self-mastery, that is, achieving the private victories required to move from dependence to independence. The first three habits are:

* Habit 1: Be Proactive
* Habit 2: Begin with the End in Mind
* Habit 3: Put First Things First

Habits 4, 5, and 6 then address interdependence:

* Habit 4: Think Win/Win
* Habit 5: Seek First to Understand, Then to Be Understood
* Habit 6: Synergize

Finally, the seventh habit is one of renewal and continual improvement, that is, of building one’s personal production capability. To be effective, one must find the proper balance between actually producing and improving one’s capability to produce. Covey illustrates this point with the fable of the goose and the golden egg.

In the fable, a poor farmer’s goose began laying a solid gold egg every day, and the farmer soon became rich. He also became greedy and figured that the goose must have many golden eggs within her. In order to obtain all of the eggs immediately, he killed the goose. Upon cutting it open he discovered that it was not full of golden eggs. The lesson is that if one attempts to maximize immediate production with no regard to the production capability, the capability will be lost. Effectiveness is a function of both production and the capacity to produce.

The need for balance between production and production capability applies to physical, financial, and human assets. For example, in an organization the person in charge of a particular machine may increase the machine’s immediate production by postponing scheduled maintenance. As a result of the increased output, this person may be rewarded with a promotion. However, the increased immediate output comes at the expense of future production since more maintenance will have to be performed on the machine later. The person who inherits the mess may even be blamed for the inevitable downtime and high maintenance expense.

Customer loyalty also is an asset to which the production and production capability balance applies. A restaurant may have a reputation for serving great food, but the owner may decide to cut costs and lower the quality of the food. Immediately, profits will soar, but soon the restaurant’s reputation will be tarnished, the customer’s trust will be lost, and profits will decline.

This does not mean that only production capacity is important. If one builds capacity but never uses it, there will be no production. There is a balance between building production capacity and actually producing. Finding the right tradeoff is central to one’s effectiveness.

The above has been an introduction and overview of the 7 Habits. The following introduces the first habit in Covey’s framework.

FROM DEPENDENCE TO INDEPENDENCE

Habit 1: Be Proactive

A unique ability that sets humans apart from animals is self-awareness and the ability to choose how we respond to any stimulus. While conditioning can have a strong impact on our lives, we are not determined by it. There are three widely accepted theories of determinism: genetic, psychic, and environmental. Genetic determinism says that our nature is coded into our DNA, and that our personality traits are inherited from our grandparents. Psychic determinism says that our upbringing determines our personal tendencies, and that emotional pain that we felt at a young age is remembered and affects the way we behave today. Environmental determinism states that factors in our present environment are responsible for our situation, such as relatives, the national economy, etc. These theories of determinism each assume a model in which the stimulus determines the response.

Viktor Frankl was a Jewish psychiatrist who survived the death camps of Nazi Germany. While in the death camps, Frankl realized that he alone had the power to determine his response to the horror of the situation. He exercised the only freedom he had in that environment by envisioning himself teaching students after his release. He became an inspiration for others around him. He realized that in the middle of the stimulus-response model, humans have the freedom to choose.

Animals do not have this independent will. They respond to a stimulus like a computer responds to its program. They are not aware of their programming and do not have the ability to change it. The model of determinism was developed based on experiments with animals and neurotic people. Such a model neglects our ability to choose how we will respond to stimuli.

We can choose to be reactive to our environment. For example, if the weather is good, we will be happy. If the weather is bad, we will be unhappy. If people treat us well, we will feel well; if they don’t, we will feel bad and become defensive. We also can choose to be proactive and not let our situation determine how we will feel. Reactive behavior can be a self-fulfilling prophecy. By accepting that there is nothing we can do about our situation, we in fact become passive and do nothing.

The first habit of highly effective people is proactivity. Proactive people are driven by values that are independent of the weather or how people treat them. Gandhi said, “They cannot take away our self respect if we do not give it to them.” Our response to what happened to us affects us more than what actually happened. We can choose to use difficult situations to build our character and develop the ability to better handle such situations in the future.

Proactive people use their resourcefulness and initiative to find solutions rather than just reporting problems and waiting for other people to solve them.

Being proactive means assessing the situation and developing a positive response for it. Organizations can be proactive rather than be at the mercy of their environment. For example, a company operating in an industry that is experiencing a downturn can develop a plan to cut costs and actually use the downturn to increase market share.

Once we decide to be proactive, exactly where we focus our efforts becomes important. There are many concerns in our lives, but we do not always have control over them. One can draw a circle that represents areas of concern, and a smaller circle within the first that represents areas of control. Proactive people focus their efforts on the things over which they have influence, and in the process often expand their area of influence. Reactive people often focus their efforts on areas of concern over which they have no control. Their complaining and negative energy tend to shrink their circle of influence.

In our area of concern, we may have direct control, indirect control, or no control at all. We have direct control over problems caused by our own behavior. We can solve these problems by changing our habits. We have indirect control over problems related to other people’s behavior. We can solve these problems by using various methods of human influence, such as empathy, confrontation, example, and persuasion. Many people have only a few basic methods such as fight or flight. For problems over which we have no control, first we must recognize that we have no control, and then gracefully accept that fact and make the best of the situation.

SUMMARY OF THE SEVEN HABITS

Habit 1: Be Proactive

Change starts from within, and highly effective people make the decision to improve their lives through the things that they can influence rather than by simply reacting to external forces.

Habit 2: Begin with the End in Mind

Develop a principle-centered personal mission statement. Extend the mission statement into long-term goals based on personal principles.

Habit 3: Put First Things First

Spend time doing what fits into your personal mission, observing the proper balance between production and building production capacity. Identify the key roles that you take on in life, and make time for each of them.

Habit 4: Think Win/Win

Seek agreements and relationships that are mutually beneficial. In cases where a “win/win” deal cannot be achieved, accept the fact that agreeing to make “no deal” may be the best alternative. In developing an organizational culture, be sure to reward win/win behavior among employees and avoid inadvertantly rewarding win/lose behavior.

Habit 5: Seek First to Understand, Then to Be Understood

First seek to understand the other person, and only then try to be understood. Stephen Covey presents this habit as the most important principle of interpersonal relations. Effective listening is not simply echoing what the other person has said through the lens of one’s own experience. Rather, it is putting oneself in the perspective of the other person, listening empathically for both feeling and meaning.

Habit 6: Synergize

Through trustful communication, find ways to leverage individual differences to create a whole that is greater than the sum of the parts. Through mutual trust and understanding, one often can solve conflicts and find a better solution than would have been obtained through either person’s own solution.

Habit 7: Sharpen the Saw

Take time out from production to build production capacity through personal renewal of the physical, mental, social/emotional, and spiritual dimensions. Maintain a balance among these dimensions.

“How to Set Up a Dun & Bradstreet Account”

Dun and Bradstreet is a company with headquarters in Short Hills, N.J., that supplies information on businesses and corporations that other businesses can use when making credit, marketing and management decisions. Dun and Bradstreet — founded in 1841 and often referred to as D&B — holds information on more than 200 million companies worldwide. If you are interested in creating a Dun and Bradstreet account, you can do so in a few easy steps.

Instructions
Things You’ll Need:

1.) Assemble your company’s legal information.
When applying for a Dun and Bradstreet account, you will need to provide several bits of information about your company. You will need to have the legal name of your organization, contact information, name of an authorizing official, such as a president or director, your total number of employees and your SIC or Standard Industrial Classification code.

2.) Navigate to the Dun and Bradstreet website and open the Dun and Bradstreet sign-up page.

3.) Enter your information.
Enter your authorizing official’s name, title, email address and company telephone number. Then click on “Submit.”

4.) Fill out your business profile. The next page the website will ask you to enter your business information. This will include the legal name of your organization, your total number of employees and your SIC code. Click on “Submit.”

5.) Select your file option.
The next page will ask you to select a file option. You can choose to use a 30-day free trial or to fully set up your credit file for $549 for the year, as of 2011. Select your option and click “Submit.”

“Limited Liability Company” (LLC)

As a business owner, you will be faced with many important decisions, including what business structure to use in your company formation. While many countries allow the typical structures of sole-proprietorship, partnership, or corporation for business ownership, Americans have the ability to form a limited liability company.

What is a Limited Liability Company?

A limited liability company (LLC):

* is a type of business ownership combining several features of corporation and partnership structures
* is not a corporation or a partnership
* may be called a limited liability corporation, the correct terminology is limited liability company
* owners are called members not partners or shareholders
* number of members are unlimited and may be individuals, corporations, or other LLC’s

Advantages of Limited Liability Company

Limited Liability: Owners of a LLC have the liability protection of a corporation. A LLC exists as a separate entity much like a corporation. Members cannot be held personally liable for debts unless they have signed a personal guarantee.

Flexible Profit Distribution: Limited liability companies can select varying forms of distribution of profits. Unlike a common partnership where the split is 50-50, LLC have much more flexibility.

No Minutes: Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate.

Flow Through Taxation: All your business losses, profits, and expenses flow through the company to the individual members. You avoid the double taxation of paying corporate tax and individual tax. Generally, this will be a tax advantage, but circumstances can favor a corporate tax structure.
Disadvantages of Limited Liability Company

Limited Life: Corporations can live forever, whereas a LLC is dissolved when a member dies or undergoes bankruptcy.

Going Public: Business owners with plans to take their company public, or issuing employee shares in the future, may be best served by choosing a corporate business structure.

Added Complexity: Running a sole-proprietorship or partnership will have less paperwork and complexity. A LLC may federally be classified as a sole-proprietorship, partnership, or corporation for tax purposes. Classification can be selected or a default may apply.
Setting-up a Limited Liability Company

All 50 states now allow the formation of LLC`s. Forming your own LLC may not be as simple as a sole-proprietorship, however, the process is much less than a corporation. There are two main actions:

1. Articles of Organization: If you plan to set up a limited liability company, you will have to file articles of organization with the Secretary of State and pay the required fees. Articles may be prepared by a lawyer or filed yourself.

2. Operating Agreement: Although it is not required in many states to draft an operating agreement, it is advisable. Much like corporate by-laws or partnership agreements, the operating agreement can help define your company profit sharing, ownership, responsibilities, and ownership changes.

Each state has different rules governing the formation of a limited liability company. For instance, in North Dakota, a foreign LLC is not allowed for banking or farming. Some states will want a publication notice with the local newspaper that a company has been formed. Check with your local state office for further details.

This article should provide you with the basics of limited liability companies and help guide your decision of company business formation. Each state’s laws differ as well as each company situation. It is advisable to seek tax and legal counsel to determine the best choice for your individual circumstance.

“How to Start a 501c3 Nonprofit Organization”

1.) Determine what type of nonprofit organization you are starting by analyzing the primary objective. It is to support some issue or matter of private interest or public concern such as the arts, charities, education, politics, religion, research, or some other endeavor for non-commercial purposes. There are different legal statuses for nonprofits, one of them being a 501(c)(3), which is exempt from income and (sometimes) property tax, and able to receive tax-deductible charitable contributions. While it can be helpful to consult with an attorney who is experienced in the area of nonprofit law to help avoid mistakes that people sometimes make when they try to incorporate by themselves, many people have been successful establishing a non-profit on their own. For those that are interested in proceeding without an attorney, sources found in books and on the Internet such as Secretary of State web sites may provide the necessary forms and information needed to establish a new non-profit.

2.) Formulate a mission statement. As a non-profit organization, you exist to accomplish your mission, which should be crafted based upon your purpose, services and values. The mission statement is a concise expression that covers in one or two sentences who the organization is, what it does, for whom and where. It should also be compelling, as it will be used in all published materials, funding requests and public relations. It should also portray how your organization is distinct from others.

3.) Form a Board of Directors. Forming a board requires careful thought and extensive recruitment efforts. Each state has regulations that determine the minimum size of the board, typically three, but the optimum number of people who sit on the board should be determined by the needs of the organization. Based on what your organization would like to accomplish, you should decide what special skills and qualities you will require of the individuals on your board. Identify qualified individuals who are supportive of your mission and are willing to give of their talents and time.

4.) File Articles of Incorporation. Articles of Incorporation are official statements of creation of an organization filed with the appropriate state agency. They are important to protect both board and staff from legal liabilities incurred by the organization, making the corporation the holder of debts and liabilities, not the individuals and officers who work for the organization. The specific requirements governing how to incorporate are determined by each state. You can obtain the information you need to proceed with this step from your state Attorney General’s office or your state Secretary’s office. Before you spend your money, at least consult with an attorney who is experienced in the area of nonprofit law so that you do not make one of the many major mistakes that people make when they try to incorporate by themselves.

5.) Draft bylaws. Bylaws are simply the “rules” of how the organization operates. Although bylaws are not required to file for 501(c)(3) status, they will help you in governing your organization. Bylaws should be drafted with the help of an attorney and approved by the board early in the organization’s development.

6.) Develop a budget. Creating a budget is often one of the most challenging tasks when creating a nonprofit organization. A budget is the expression, in financial terms, of the plan of operation designed to achieve the objectives of an organization. New organizations may start the budgeting process by looking at potential income – figuring out how much money they have to spend.

7.) Develop a record-keeping system. Legally, you must save all Board documents including minutes and financial statements. It is necessary to preserve your important corporate documents, including board meeting minutes, bylaws, Articles of Incorporation, financial reports, and other official records. You should contact your appropriate state agency for more information on what records you are required to keep in the official files.

8.) Develop an accounting system. If your board does not include someone with a financial or accounting background, it is best to work with an accountant familiar with non-profit organizations. Nonprofits are accountable to the public, their funders, and, in some instances, government granting bodies, and it is vital to establish a system of controls (checks and balances) when establishing the organization’s accounting practices. Responsible financial management requires the establishment of an accounting system that meets both current and anticipated needs.

9.) Apply for a federal employer identification number. Regardless of whether or not you have employees, nonprofits are required to obtain a federal Employer Identification Number (EIN) — also referred to as the federal ID number. Available from the IRS, this number is used to identify the organization when tax documents are filed and is used not unlike an individual’s Social Security number. If you received your number prior to incorporation, you will need to apply for a new number under the corporate name. Ask for Form SS-4 when applying for your EIN.

10.) File for 501(c)(3) status. To apply for recognition of tax-exempt, public charity status, obtain Form 1023 (application) and Publication 557 (detailed instructions) from the local IRS office or the IRS web site. The filing fee depends upon the size of the organization’s budget. The application is an important legal document, so it is advisable to seek the assistance of an experienced attorney or certified public accountant when preparing it.

11.) File for state and local tax exemption. In accordance with state, county, and municipal law, you may apply for exemption from income, sales, and property taxes. Contact your state Department of Revenue, your county or municipal Department of Revenue, local Departments of Revenue, and county or municipal clerk’s offices for information on how to do this in your jurisdictions.

12.) Fulfill charitable solicitation law requirements. If your organization’s plans include fundraising, be aware that many states and few local jurisdictions regulate organizations that solicit funds within that state, county, or city. Usually compliance involves obtaining a permit or license and then filing an annual report and financial statement. Contact the state Attorney General’s office, the state Department of Commerce, state and local Departments of Revenue and county or municipal clerk’s offices to get more information.

13.) Apply for a nonprofit mailing permit. The federal government provides further subsidies for nonprofits with reduced postage rates on bulk mailings. While first-class postage rates for nonprofits remain the same as those for the for-profit sector, second- and third-class rates are substantially less when nonprofits mail to a large number of addresses. For more information on eligibility, contact the U.S. Postal Service and ask for Publication 417, Nonprofit Standard Mail Eligibility

“Guide to Expanding Distribution Channels”

Adding new distribution venues can boost your bottom line, diversify your business and increase brand awareness. Some distribution channels to consider include:

1. Retail and wholesale
2. Direct marketing
3. International markets

Go where your buyers go
Many retailers are constantly on the lookout for new products. Department stores and specialty retailers have significant shelf space to fill. And even though they take a cut of each sale, you can offset that cost and turn a tidy profit with better pricing and sales volume.

Working with a wholesaler provides a similar set of advantages. Plus, they buy in bulk and often have transportation networks in place. Check out the National Association of Wholesaler-Distributors to find a wholesaler in your industry.

To find reps for wholesalers and retailers, attend trade shows related to your product category. You can also outsource the legwork with a retail fulfillment service, distribution specialist or product marketing firm. Alternatively, find an independent sales representative through the Manufacturers’ Agents National Association (MANA).

Go direct
Direct marketing methods can expand the reach of just about any venture, especially a small business that has saturated a local market.

Direct mail pieces such as flyers, postcards, brochures and catalogs allow companies to grow beyond their state or region and can even help achieve national exposure. Telemarketing can also provide broad reach.

All these methods require an initial investment, but many specialized marketing firms are ready to launch a campaign with minimal lead time. Just make sure to carefully track your ROI.

Internet sales continue to grow, with more users gaining high-speed Internet access and the overall comfort level with e-commerce growing every year.

Shopping sites like eBay and Amazon provide good examples of quick self-signup options and require no programming skills.

Go global
The U.S. has less than 5 percent of the world’s population. China, India and the European Union have nearly 45 percent combined.

Any international sales effort will require the patience and dedication to navigate through a host of complex cultural issues and governmental restrictions, but high profit margins can make it worthwhile.

Help is available through international commerce consultants and trade partners, both of which can be found at trade shows and export events. Export.gov offers resources dedicated to supporting potential exporters, including a list of international trade events.

By Jason Agard, Senior Associate Editor, Business.com

“Why Businesses Succeed and Fail?”

1. Do serial entrepreneurs succeed more than first time entrepreneurs?
Answer: Yes.

If you’re a first time entrepreneur, outlook not so good.

According to the Harvard researchers, there is performance persistence in entrepreneurship.

They write, “All else equal, a venture-capital-backed entrepreneur who succeeds in a venture (by our definition, starts a company that goes public) has a 30 percent chance of succeeding in his next venture. By contrast, first-time entrepreneurs have only an 18 percent chance of succeeding and entrepreneurs who previously failed have a 20 percent chance of succeeding.”

2. Who is more likely to get funded by a venture capitalist firm, a new entrepreneur or a tried and true one?
Answer: A new entrepreneur.

Failed entrepreneurs are more likely to get funding than successful entrepreneurs from the same venture capitalist firm.

Strange but true.

3. Is entrepreneurial success a skill, or is it luck?
Answer: Starting a company at the right time in the right industry is a skill.

Here’s why: According to the Harvard paper, “The industry-year success rate in the first venture is the best predictor of success in the subsequent venture. Entrepreneurs who succeeded by investing in a good industry and year (e.g., computers in 1983) are far more likely to succeed in their subsequent ventures than those who succeeded by doing better than other firms founded in the same industry and year (e.g., succeeding in computers in 1985).

“More importantly, entrepreneurs who invest in a good industry-year are more likely to invest in a good industry-year in their next ventures, even after controlling for differences in overall success rates across industries. Thus, it appears that market timing ability is an attribute of entrepreneurs.”

Nothing indicated it has anything to do with wealth.

4. Does success breed success?
Answer: Yes.

Entrepreneurs with previous successes can get their hands on more capital and services if suppliers think they are persistent performers.

“For example, high-quality engineers or scientists may be more interested in joining a company started by an entrepreneur who previously started a company in a good industry and year if they believe (justifiably given the evidence) that this track record increases the likelihood of success,” they write.

5. Are companies that are funded by top-tier venture capitalist firms more likely to succeed?
Answer: Yes, with one exception

The reason these companies are more successful is obvious.

It’s either because the top venture capitalist are better at identifying potential success, or it’s because they’re able to add more value to companies they fund. The Harvard paper assumes both.

“Create a Creative Mindset”

Creativity comes from trust. Trust your instincts. And never hope more than you work.
-Rita Mae Brown

Here are some more ideas on how to find creative inspiration:

1. Do something different.
Creativity requires new and original thought. So often, our lives are dominated by routines and predictability which can stifle creative thoughts. Change things around a little bit every now and then. Drive an alternate route, change the order of your morning routine, do something different for lunch, greet your co-workers in the morning differently or get up early and go out for breakfast before work someplace you’ve never been before. Minor diversions can fine tune your perception of the world and stimulate creativity.

2. Meditate.
The Creator, which we may call God, higher power, the great spirit or otherwise, communicates to us most profoundly in moments of silence and peace. Meditation connects us to the source of our creative power. It clears the obstacles in our mind. It provides a clean canvas.

3. Challenge yourself but don’t pressure yourself.
Feeling either bored or overwhelmed curbs creativity. Set goals that you find challenging and interesting but that you believe you can accomplish. This may require that you break larger goals into smaller pieces or vice versa.

4. Have faith in yourself.
Focus on your accomplishments and expect to surprise yourself. Creativity, by it’s nature, produces unexpected ideas and solutions. When we are in touch with our creative power, we will surprise ourselves.

5. Practice gratitude.
Gratitude and faith work hand-in-hand. When we focus on what we are grateful for, we strengthen our faith because we see the good things we already possess and have accomplished. When we strengthen our faith, we boost confidence and remove one of the greatest stumbling blocks to creativity: doubt.

4 Key Questions for Prospective Franchisees

1. How well does the franchisor prepare new franchisees to succeed?
This is a broad question but it is also the most important one of all. When you acquire a franchise, what you’re supposed to receive is a proven system for producing predictable results. The bargain you make is that the franchisor will teach you everything you need to do in order to succeed and you’ll follow its direction.

In order to evaluate how well a company prepares new franchisees, you’ll need to do three things. First, evaluate its training programs to make sure that all functional areas of the business are completely covered and that systems are in place to assist you as you learn how to operate the business.

Second, evaluate its initial unit opening support systems to ensure that you will have all the assistance you need with every facet of opening a new shop. That means real estate selection, lease negotiation, financing, construction
, supplies and inventory, and finding and training employees.

The third area you’ll need to evaluate is the franchise’s front line support staff. You should make sure that these people know everything about the operation of a new unit and that they will be there for you when you need help. As the saying goes, in a good franchise you’re in business for yourself but not by yourself, so make sure this is the case.

2. How strong is the ongoing support?
After you get your first unit up and operating, you’re still going to need plenty of assistance to deal with the issues and problems that every business owner faces. So you need to know how well the franchisor is set up to provide ongoing support, assistance and training to help you deal with the challenges you’ll face.

You should also evaluate the franchisor’s ongoing efforts to make its franchisees more successful by maximizing their collective purchasing power. Successful programs can provide savings on supplies and inventory that offset most or all of the ongoing royalty fees a franchisee is required to pay the company, so this is a key factor to consider.

3. How good is the marketing program?
In order to succeed, you need to attract enough customers to support your franchise. A good franchise opportunity will provide support both initial and ongoing marketing programs in order to produce those customers.

The initial marketing program needs to drive enough trial customers into your business to solidify your primary customer base. Make sure you confirm that the company has specific strategies and tactics to accomplish this and that its program works consistently in various markets around the country.

Ongoing marketing programs need to drive enough new customers to the business to offset attrition and meet growth goals. Check that the franchise has strong and consistent year after year same store sales growth and that this result is accomplished by increasing customer numbers and not simply via price increases.

4. How much money can you make?
Many people looking at franchise opportunities naturally consider this to be the most important question, and there are two good potential sources of information to answer it. First, many of the best companies publish earnings information in Item 19 of their Franchise Disclosure Documents. If they do, this will save you quite a bit of time in terms of finding an initial answer to this question.

Whether the franchise you’re researching publishes this data or not, you still need to verify the information through the second source: calls to existing franchisees. You need to determine how much money a mature unit makes after operating for a few years. You also need to know how the first year or two looks financially–when units typically reach the break even point–and how much money franchisees have to subsidize their operations with before they reach that point.

Be sure to compare the income expectations to the total investment size to confirm that the return appears to be reasonable. Finally, analyze how many of the existing franchisees own multiple units as a way of increasing their total earnings from the business.

The process you should go through in answering all of these questions is threefold. First, get the official answer to the question from the franchise company. Second, talk with multiple existing franchisees to validate, confirm and perhaps expand on the official answers. Finally, go back to the franchisor to clarify any conflicting information you have received so that you are confident that you have determined the correct answers.

When you have the answers to these four questions, you’ll know if you have found a good franchise opportunity. If any of these four areas are weak, you should pass and find a different franchise.

As a final thought, once you find a company that meets your expectations in all four of these critical areas, make sure you match up well with the people involved. You should like them and feel comfortable about working with them. If you become a new franchisee, you’ll be in a very close relationship with these folks for years, so you need to be sure that everyone is on the same wavelength in terms of values and goals.

2012 Mercedes Benz CLS four-door coupe

Mercedes-Benz CLS Shooting Brake Concept Is Production Bound

Proof that where there’s a will, there’s a niche, Mercedes-Benz (which already offers 16 model lines in the United States) plans to extend its family tree once again with a production version of the recent CLS Shooting Brake concept car. Unveiled during April’s Auto China motor show, the car builds on dramatic proportions of the 2012 CLS four-door coupe with a sloping wagon-like tail.

The first production iteration of the CLS “Shooting Brake” (a term that generally refers to wagon-bodied two-door cars, à la the old Volvo P1800ES and BMW’s Z3 Coupe) will likely reach American showrooms with Mercedes’ new twin-turbocharged 4.6-liter V-8 beneath its long hood, good for 402 horsepower and 443 foot-pounds of torque. Look for a high-performance AMG version to arrive a year later, packing the 2012 CLS63 AMG’s twin-turbo 5.5-liter V-8, rated at 518 hp and 516 ft.-lbs. of torque. The optional AMG Performance Package bumps output to a stupefying 550 hp and 590 ft.-lbs. of torque—which will be sufficient to launch the Shooting Brake to 60 mph in 4.3 seconds and onward to a top speed of 186 mph.

Set to debut in its homeland 2012, the CLS Shooting Brake will join Europe’s burgeoning “executive express” class—strikingly styled four-doors with coupe-like proportions, hatchbacks in place of traditional trunk lids, and sumptuous seating for four passengers. Mercedes has yet to confirm availability of the CLS Shooting Brake in the United States, though with rivals such as the BMW 5-series GT, the Porsche Panamera, and the new Audi A7 gaining ground, it seems inevitable. Either way, the 2012 CLS four-door reaches U.S. showrooms next summer.

“Entrepreneurs Who Want To Go The Extra Mile”

1.) Maintain SOUND HEALTH
You are a mind with a body. To maintain a health consciousness, think in terms of good physical health, not in terms of illness or disease… what your mind focuses upon your mind brings into existence, whether it is financial success or physical health. (I feel healthy! I feel happy! I feel terrific!)

2.) Budget Your TIME AND MONEY
Inventory yourself and your activities. Intelligently balance your use of time and resources, both business and personal. (You don’t always get what you expect unless you inspect)

3.) Use COSMIC HABITFORCE
All of us are ruled by habits. These are fastened upon us by repeated thoughts and experiences … We create patterns of thought by repeating certain ideas or behavior until the Law of Cosmic Habitforce takes over those patterns and makes them more or less permanent unless or until you consciously rearrange them. (Sow an act, reap a habit. Sow a habit, reap a character. Sow a character, reap a destiny)

“Why Do Business Franchises Fail?”

There are three main reasons why new franchises fail. Avoid these and you’ll greatly increase your chances for success.

1. Capital Issues
The classic blunder for anyone entering a new business is to not have enough money available to cover all the needs. This not only means enough to get the business started but also enough to cover losses while the business is growing and to cover personal expenses while waiting for the business to afford to pay the owner. Make sure you’ve got significantly more than you think you’ll need and you will have a much safer journey.

2. Marketing Issues
The bottom line of any new business is that you’ve got to attract a solid base of customers if you’re going to succeed. If the marketing program isn’t successful in doing so, or if you don’t have the marketing program fully-funded, then you’re going to have problems that the business probably cannot survive.

3. Franchisee Role Issues
Be sure you know what is expected of the owner in order for the business to be successful. If the franchisees role is to go out and sell the business to attract customers and all you want to do is stand behind the counter, there are going to be problems. In your due diligence, find out how the most successful franchisees spend their time and make sure you feel comfortable with those activities before selecting the franchise.