Week 3 Small Business Creation Update

Much of what we learned this week was about writing a business plan.  A business plan is crucial for any business.  It charts the course for your business.  Your plan should be specific enough to clearly describe where you are going and how you are going to get there.  You need to determine your goals and objectives, and clearly identify these, as well as marketing plans/objectives.  The plan needs to identify any financial needs as well as financial projections.

One thing to always remember when writing your business plan is that this should serve as a living document, not just a piece of paper that's casually read and collects dust in some obscure corner of your office.  Make your plan, follow your plan, and when needed, update your plan.  With that perspective the business plan has become something crucial in my mind, and it is.

$100 Project Update

I've identified several goals that I hope to accomplish by the end of this semester.  I will write up 8 project documents before April including, "How to make a solar cell phone charger", "How to make a survival Crossbow", "How to make a full auto rubber band gun", and "How to make paracable."  With these and four additional projects I hope to achieve an 8.25% conversion rate, and a 7% referral rate.  If I can keep to this plan I'm confident I will reach my goal of raising $100 profits (marketing fees - project costs) by the end of the semester.

I've ordered materials for the Solar Cell Phone Charger, and the paracord projects which cost $15.  With these I will be able to create two of my eight projects and create 36 links.  If I can finish the first project by the end of next week I will be on track with my goals.

$100 Challenge Update

An update on my $100 challenge project.  I've decided on a business for the project, and I'm actually very excited about it.  I'm going to start an affiliate marketing blog of sorts where I document and write How-To articles.  In these instructional posts I will include the links to products used in the projects.  I will have to write up a few projects during the semester to produce any kind of significant revenue for this challenge, but I think it's very doable.

My first project will be "How to make a Paracable", that is a paracord charging cable.  It cost roughly $6, and should bring in a lot of views, clicks, and conversions.  With that I have planned out a few more projects that require a little extra funding including "How to make a solar cell phone charger", "How to make a survival Crossbow", "How to Make a Wicking Bed Container Garden", and "How to make a Full Auto Rubber Band Gun."  I think these projects will bring in a lot of hits (and revenue) and should bring in enough for my Kiva recipient.

Seeking Creativity

This week my biggest takeaway from class was from our Harvard Manage Mentor assignment.  We learned about creativity and innovation, and how to organize effective teams to create new and innovative solutions.  There are five key steps in finding an effective idea.  These are preparation, innovation opportunity, generation of options, incubation, and convergence.

Preparation involves assembling a team of members to create a solution to the existing problem.  The team should be well rounded and intellectually diverse.  This diversity breeds creativity; it allows the team to see problems and solutions through someone else's eyes.

Next comes innovation opportunity.  The members of the group identify the problem requiring their creative talents.  After this comes the generation of options.  This is where the fun happens.  Members are encouraged to have a productive debate.  I've heard of executive teams that would meet for hours and do nothing but argue and slam their fists on the table, each one expressing their passionate opinion on the way something should be handled.  This is how generation of options should be.  The key word here is productive, at no time should this conflict become a personal attack on any of the members.

Once the ideas are on the table then comes the incubation process where the members will consider the options.  Finally the group finishes the process with convergence.  They agree on one idea as a team.  Sometimes this decision is made by a leader as is the case with a CEO and his or her executive board members. In either case, once a decision is made it is made, and all members will get on board with that decision.

I've always been fascinated with the idea of starting my own business just for the sheer joy of it.  I often find myself making business plans for an idea I had and just thinking about how exciting it would be if I did start one.  I think many people are like me, thinking about starting a business, but not because they are too comfortable with their current jobs.  The question then is what is the catalyst, the driving force that make people transition from working for someone to working for myself?  From my “small business creation” course at BYU-Idaho it describes this very thing.  “Many entrepreneurial ideas come from technological breakthroughs, flashes of insight, and revolutionary concepts.  However, the reality is that most entrepreneurial ventures are created out of frustration, disappointment, and discomfort of one sort or another.  Other ideas are simply dreams that people have always had.”  

I can see this being the case.  I for one would like to work just enough to have what we need so that I can have the extra time to chase after more noble pursuits.  You won’t find anyone upon their death bed saying, “I wish I had spent more time at work” or “I wish I had more money right now.”  The things that really matter are our families, and our faith.  My own frustration, disappointment, and discomfort is not having the time I want to spend with my family, and to serve others more diligently.  This is my own driving force.  

This semester I’m starting a blog that will serve as an entrepreneurial journal of sorts.  My journal of the things I’m learning and the things I’m doing as a student of business.  You’ll see many of the projects I’m working on including the $100 challenge.  

Welcome, I’m Dave, and this is my business journal!