Tag Archives: business

In business: If you talk the talk, you better walk the walk, too!

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Many years ago, I worked in a school in Taipei. It was very much a wonderful learning experience because I saw all the mistakes that our school’s owners made over the years. I still remember most of my students fondly, and just occasionally I will run into one or two of them on the street. But one of the biggest mistakes we made, and it was years later that I realized it as such, was our motto. We enjoyed our work, we liked the students, and we thought we were good, so we stupidly created the motto: “The best of the best”.

Best of the Worst: Best of the Words

Unfortunately, the motto was quite hollow. It was supposed to invigorate us and inspire our students, but it didn’t ring true in our hearts. Our flyers were printed on green A4 paper, and distributed community wide.What they really shouted was how pathetic we were. And our school was. Small classrooms, poor resources, lack of leadership, … to name but a few. When I realized the enormity of our mistake, I was determined not to repeat it. Why?

What was wrong?

If you really are the best, everyone knows it. There’s no need to tell it. It’s in plain sight. And if you’re not the best, it’s a lie. And again, everyone and their dog can see it. It’s that simple. It was the case with us. We were obviously not in the first category at all. So clients were left to draw only the latter conclusion. We really set ourselves up to fail by creating such high expectations. How could we really succeed?

Choose something tangible

We have been building our marketing campaign for our own business for some three years. But one of the decisions I made at the outset was to avoid making unverifiable claims. Instead, we would tell people exactly what we did, and leave it up to them to decide if we were good or not. Now our motto is exactly what we do: “Teach our students to use English and make it a part of their lives.”- It reads better in Chinese!

And that’s exactly what we do: students are greeted in English, classroom activities take place in English, even break-time activities require some English. We do use Chinese at times to make students feel comfortable in stressful situations, but for the most part, we encourage students to use English as much as they can.

Say it loud, say it clear!

It doesn’t have to be a complex message, it doesn’t have to use superlatives. But any motto or slogan you choose for your products should at least encapsulate the benefits of your product in ways that are tangible and identifiable. Make sure your performance matches your claims and be prepared to verify the claims. Parents hear our students using English when they arrive or leave, they call up and use English, too, when they have problems with homework. Classroom work is verified with all skills quizzes. And yet, sometimes we still fail to get our message across!

It ain’t lip-service

Many companies promise great service, but when you call up to find out about the ‘great’ service, you find out the truth. I recently was asked to telephone a local hospital in Taiwan that claimed it had an English answering service. Although it was just a survey, I was horrified to find out that if I had been depending on this service as a tourist, I might have ended up dead! I called the hospital’s ‘English’ hot line, was transferred in a bilingual telephone message to a center that picked up the phone for an answering machine! An English hotline had a Chinese answering machine! Wow!

Manage Expectations: Be realistic!

By managing expectations, the hospital could have avoided the complications, negative reports, and immense loss of face this caused some official when it went in the report that the hospital failed the assessment. By simply saying the line was only staffed from 10-4pm each day, the hospital would have got a lot of kudos for providing a needed service.

Unfortunately, the mistake this hospital made is one that many international companies make, too.

When you’re a service oriented company, it’s vital that service is as good as you can make it. In other words, you have to walk the walk if you talk the talk.

What’s your experience marketing your business or selling products or even dealing with ‘big’ companies and their promises? How does it fit in with what I’m saying here?

Would you like to create a blog for your company or existing site?

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This was written as a proposal for a project last year. I thought I would share the outlines for readers interested in blogging part- or full-time or looking to develop a portfolio for an existing static site.

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Are you considering having a blog to complement your existing website? Do you need help to get started with the whole blogging thing? If so, then this paper outlines the basic idea in section 1; the steps to implementing the program in section 2; and Developing your Properties in section 3.

1. A blog: A natural traffic magnet

I think the best way to attract traffic to your website would be to use a blog as a blog has a natural advantage over a static site. In fact, a blog can attract traffic with quality posting as long as you have something to say of interest to people. Additionally, having a blog allows you to build traffic through RSS Feeds, comments, trackbacks and a whole host of online aggregators and web 2.0 media.

This would be the fastest approach to gaining traffic, though when I say fast it would be some months to build up a following. The blog would need an identifiable persona that can play off the notion of credit cards and build some fun into the whole process of searching, applying for and using credit cards. It is also a way to bring people BACK to the website… otherwise you may see traffic apply for cards and NEVER come back because they can’t find or don’t remember the website.

2. Steps to Implementation

  1. First, Setting Up A blog. Establish a blog (WordPress 2.7) with a bunch of themes, and a selection of plugins in a subdirectory of your main website. Set up a blog as integral part of your site, linked from an obvious place in the top of the bar and in a very similar ‘theme’ to the website. The blog of course would have links to the rest of the site as well.
  2. Second, Metrics. Establish some metrics as a base from which to start. The metrics would help establish tracking and even help target customers to the offers in the other part of the site.
  3. Third, Regular Posting. Start a regular posting schedule. With some initial content, say 20 posts that are quality and not too long, begin the next step. Do make sure your content is unique, well written. It doesn’t have to be long, but it has to be pertinent.
  4. Fourth, Publicity. Have the blog join all sorts of Web2.0 communities to gain friends/traffic, such as Technorati, and several other blog services. This would certainly help but it would require some weeks or even months of work. There are a number of other tips and tricks that can help to establish a blog that can drive traffic to your website.
  5. Fifth, Capitalize on the Traffic. This is where your efforts on the website would pay off by capitalizing on the resultant traffic. Slowly add advertising in whatever form you think is appropriate for your audience. Don’t go overboard.

3. Developing your Property

There are tons of new ways of getting traffic these days: Twitter, Flickr, Squidoo, Hubpages, Technorati,… while it’s not important to stay on top of them all. There are just too many to start with. You may want to pick a few of the services, and learn how to use them. Each one you learn paves the way for a future project, traffic or opportunities.

Much is made of Web 2.0, and much is hot air. But you may find that there are valuable tie-ins to your proposed blog from communities of like-minded people. Then you’ll find that Web 2.0 really works.

Conclusion

Obviously you have to decide if this is a route you want to take, whether it is worth spending so much money on your website, and what metrics you will need to use to evaluate success or failure. I do believe that adding a blog can really add a whole new dynamic to your existing site. But it isn’t an instant success. It needs application, focus, and time.

Buzz: Making Money Magazine – Franchising in the UK

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I just came back from Blighty. At the airport, there were no newspapers for the flight to HongKong so desperation drove me to find something else. That’s what happens when you buy good reading for the flight but then pack your flight reading in your check-in bag, not the carry on one! Doh!

making money magazine

There were stacks of a newish magazine (or at least one I had never heard of) called Making Money Magazine which is primarily about the franchising market in the UK. There are lots of feature articles on all sorts of companies from almost every industry you could imagine, including some very prominent names like BurgerKing, Subway, etc. Their online contact form lists over 400 different franchises. The only problem with the magazine is you can’t read it online, it’s a print-only publication, though the website is quite informative in its own way.

Making a Newsletter: Tips on Making One for your Business

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It’s time to do our new business newsletter. We’ve had quite a few problems with this issue but it’s finally done… I can breathe a little when the new newsletter is done. Summer is coming and this is the best time to promote our business as our target parents are now looking for schools for the summer and afterwards. So the newsletter is a very good promotional tool.

At the moment, we’re pretty limited in the presentation for the actual newsletter: we don’t do color yet. But I’m becoming certain that this is the direction we need to go in: of course, we’ll then need to send out the flyer to be done commercially. OK. This is what it looks like! It was made using MS Publisher 98 … in Windows 98SE, but later versions of Office include this, too.

May 2008 Newsletter

Even in this era of online commerce, creating a short off-line flyer, newsletter or card can be a good way to gain additional attention for your service, store or website. You can use the wizards in Word or Publisher 2008 to get you started with the basic design, write a few short columns, make it informational and of value to the readers.

Layout

I created two documents, each A4 in size. Then I named number 1 – pages 1 and 4. Number 2 is pages 2 and 3. I used a simple printer connection to the photocopier in our office and printed 2 pages on each A4 page. It was tricky to get the double-sided effect, and I wasted quite a few sheets in the photocopier. But soon, I was able to double print each A4 page. Folded in the middle, I had a four-page newsletter.

Tracking Results

I create a special link to the online sites (use a redirect if you want to) to track the traffic. If you get really smart, you can create several runs with different URLs to track the effects of different distribution points (in a larger city, this would be a great idea!).

When clients or potential clients are just looking for simple introductory information without too much hype or a sales presentation, this kind of flyer or newsletter can really answer their questions without pressure sales. I usually attach a name card to the newsletter with a personal name on it.

And it works. New clients often pick one up on the way in. Of course, as a community tool, I also distribute it to our existing clients. So there’s an added bonus there, too.

It REALLY works.

Business Start-Up Killers or How to close your business in five steps!

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Having been in business now for nearly eight years, I recently had pause to consider why typical businesses don’t succeed in the local market in Taiwan or anywhere. This list includes some of my observations:

1. Poor Financing

Most business owners here in Taiwan budget enough money to open the business, but they base income projections and the related decisions on the most rosy of circumstances in the first three months. The result is often that the business will close within 3 months because the businesses have run out of cash, and haven’t built up enough customers on a returning basis to pay for the basic costs. If you’re planning to open any business, remember to consider several scenarios and prepare for different results.


Creative Commons License photo credit: foundphotoslj

When we opened our business, we had very low estimates of income in the first six months; and we were financially comfortable with the idea of paying costs until the business could support itself. Part of that was a realization that salaries for the bosses (the only staff at the time) would be token only.

Solution: Always budget for a period at startup in which income is less (much less) than your expectations. Don’t forget to include unexpected startup costs. Be bullish on these because best-case scenarios rarely occur.

2. Missing the Mark

It’s amazing how many business owners only look at the superficial aspects of running a business. Yesterday my wife and I ate in a coffeeshop that had newly opened. The coffeeshop had a great location, and lots of potential. But when we walked into the store, everything LOOKED fine. It’s only when we ordered the food that we noticed the LOOK of the store was quite different from the reality. The staff were untrained, didn’t know how to greet customers, the drinks we ordered were pricy (for that kind of service) and really didn’t measure upto drinks at half the price in better restaurants (no flair), and the management seemed too busy doing the work to notice what was missing: an atmosphere, good service, and passion for the foodservice business. Oh, well.

The restaurant was called O Sole Mio and had a very pretty facade with a decent counter area, and much of the right equipment, too. Its location was on a major route around the north coast of Taiwan just outside Jingshan. In reality, most people would only stop once as we did.

Solution: Focus hard on the quality of the food or service that you produce. Make sure that they are up to scratch. And be your own harshest critic.

3. Location, Location, Location

That’s right. We’ve seen great businesses with potentially good profit margins killed by their locations. Why? Because the location chosen for the business ate up most of the businesses income. The business owner had chosen a high traffic location to maximize the market exposure. Result: he ended up paying over the odds for rent. When it turned out the product wasn’t that great, initial business interest fell away, and word of mouth didn’t occur.

A bakery opened across the road from our community and fell victim to this situation. Worse: the baked goods were quite unexceptional, and there was little reason for customers to cross the road to shop there, when TWO very good bakeries were less than 100 yards away. It shut in less than three months.

Solution: Choose a cheaper location, and create such a great product that people will go out of their way to find you. Once you have the quality, margins, and cash, then rent a mainstream property.

4. Hiring Staff

This has to be the biggest bugbear of any new business. Why? Finding good staff is an ongoing nightmare for our school from the first year that we opened. We have recruited actively most of the past eight years, but many of the applicants have been less than desirable. Even those we vetted carefully and who came to interview and do demos with us were in most cases unsuitable. We hired the best of those interviewees, but in reality only one or two of those we hired had the passion to be an excellent teacher.

Of course, hiring and training are both essential. When you hire new staff, it’s important they be trained properly. This is an aspect we seriously underestimated as we expected our hires to have the same passion and skill as we shared. This expectations have been tempered by our experience.

Solution: you have to be prepared to hire selectively, manage directly, and fire decisively. Poor staffing and staff who are unmotivated and interested only in their salary both will seriously undermine your business.

5. Freebies, Giveaways and Discounts

Over the years, we have noticed that some promotions work and some promotions look like they work. You have to learn to tell the difference.

  1. Freebies – Giving away products and services for free rarely generates a good client-base. Why? Because you will always attract people who like ‘free’, and who will shrink at the first sign of a bill or invoice. If you are going to do freebies, make sure it is tied to something that is purchased. And clearly state that these are introductory offers only.
  2. Giveaways – Giving away products may work for toothpaste and shampoo. It will likely not work for your business. Why? Because you will have to give away a lot of samples just to get some leads. Be careful with what you give away.
  3. Discounts – Discounts also can be used to attract attention, but you need to be careful in how you manage them. Otherwise you will find that you have to offer permanent discounts to keep customers who ‘thought’ that the discounted price was the regular price. Worse, as we found out, some customers will tell others that that is the pricing.

Solution: Clearly limit the duration, type and extent of your promotions. Make sure that your discounts, freebies and giveaways are closely tied to those you are trying to attract. And manage your cost basis effectively enough that you can still have a decent mark-up after your promotion. Otherwise, you will find it difficult to service those accounts properly.

One of the biggest reasons that you need to avoid these ‘killer promotions’ in the long term is simply that you will end up in a bidding war either with your own pricing or with a competitor’s. You should have confidence in your pricing structure. Aggressive promotions will create initial surges of interest, but may undermine the future of your business, the quality of your products, and your reputation.

These five issues are all issues that I’ve dealt with in different situations. They did not all pertain to my current business, but I’ve seen how the effects of these bad decisions can effectively ruin a nascent business, even one that has passed the first two years. Do let me know if you have any additional suggestions for this list.

The 80/20 Principle: It’s just a rule of thumb

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not one of the ten commandments… Read on.

Ade’s blog just recently posted about the 80/20 rule and how it applies to bloggers. In this post, I would like to point out some of the reasons why I think the 80/20 rule may be flawed, and you’d be wise to consider NOT applying it to your blog’s readers.

An introduction: What is 80/20?

Wikipedia has a great article on the 80/20 otherwise known as Pareto’s principle. The principle was greatly popularized by a recent book called: The 80/20 Principle by Richard Koch. Good book, good reading. In summary, 80/20 states that the majority of results will come from the minority of inputs. In particular, 80% of sales in a bookstore will come from 20% of customers. There are many examples that you can find. While the numbers 80/20 are approximate, other variations have been seen, too, including 90/10, 70/30, etc. It is now being treated as a rule of thumb in many industries, and being applied in a number of diverse situations.

It’s a rule of thumb, not a rule!

The recording companies, principally the big 4, have been adopting this principle over the last few years with their back catalogues which have shrunk somewhat as artists have been eliminated who don’t reach certain mass market metrics. Now I was thinking about the 80/20 rule and it may or may not be true in some circumstances, but I would argue that in some situations, esp. like the CD industry, it’s a bad idea for a number of reasons.

Let’s examine CD purchases: logic dictates that you should only stock the top 20% of CDs. In some situations this may be fine if there’s limited stock space or some other important limitation. BUT a significant number of purchasers would probably buy a top 20% CD AND another CD of a lesser known artist. You then lose the CD sale for BOTH CDs not just one. Why? Well, as the CD companies are discovering: shoppers tend to buy multiple CDs at one time, and may shop frequently. With the top 20% of CDs on sale, such frequent shoppers would quickly buy the top 20% and then not have any more to buy. Result: they begin to shop elsewhere, where they buy the CDs that they can’t get in the bigger shop, and at the same time they’ll buy the popular CDs too.

For the shop, this is bad business: they lose the top quality purchasers who buy multiple CDs at a time. They therefore have to start increasing their advertising to attract those shoppers who only buy the top 20% of CDs, and those shoppers may only shop occasionally, may be more price sensitive, and may not be loyal to any particular CD store or chain of stores. Worse comes when even the marginally popular CDs are dropped as the store further refines its stock of CDs. Previously when third-tier CDs were dropped, sales may have risen incrementally, as some customers bought more second- and first-tier CDs. This effect would have been temporary as regular purchasers would soon find not much new to buy as most new artists would start out as third-tier or lower before being ‘discovered’ by shoppers.

So the store decides that with deteriorating sales in its CDs it has to boost its margins by shifting more copies of the top tier artists. It increases promotions, cuts second-tier CDs, and lo and behold, the sales and margins rise magically again. But worse is to come: customers begin buying fewer CDs (they either already have the ones they want or they don’t care for some of the artists) and regular customers become scarce. After the promotions are over, it’s difficult to get regular customers to come back, and the top spenders are now going elsewhere for their CDs.

So, it looks like the CDs/music market is declining, and the management is left with little choice but to scale back the CDs even more or close the store.

Of course, downloading (legal and otherwise) came along at a time when the CD industry was already in bad shape. Downloading and alternative mediums for music (online radio, ringtones, etc.), not to mention alternative sources for entertainment, all coincided to make things really difficult for CD companies. But to cut your catalogues and reduce your roster of artists is now looking to be one of the ways in which the big four cut their own throats.

The 80/20 principle sounds like a logical way of thinking until you realize that if you start to pursue the top 20, you will quickly lose a lot more incidental sales. And some of the incidental sales MAY just turn out to be the top 20% of purchasers in the future…

And for bloggers: should you follow the lead?

While the principle may be in principle correct, ignoring the 80% of your readers may lead to erosion of your blog income. Why? Because when readers click away from your blog, it’s usually through an advertisement. Hence, to maximize your blog’s income, you need to encourage your readers to love it, enjoy it (briefly) then click away to a Google Ad, affiliate link or other advertising. It’s likely that if you just focus on the 20% of your readers, your expenses will rise as a result of increasing usage your server’s power power, and your income will go down as regular readers become ad/affiliate link blind.

There are many people who do not seek to make any money out of their blogs at all. Power to them! Well done! There are bloggers like me who started before making money on a blog was possible, but have found the dollar signs an additional benefit. However, for both kinds, increasing readers is a great benefit, if the blogger can afford to pay for the hosting costs. If you cut into your revenue streams, then you’ll find that you will be paying the costs for your regular readers. If you are doing it as a hobby, perhaps that is appropriate for you. But perhaps not.

Overall, I am becoming a very anti-80/20 activist. I think focusing on such goals really doesn’t help much. I can cite several examples in Taiwan, where such short-term thinking led to very poor short-term results, muddied business plans, and withdrawal from the local market with a sullied reputation.

So I believe that the principle as a business principle is flawed, in many instances. I do recognize instances where it is a valuable ‘rule of thumb’ but it should not be treated as a law or rule in the absolute sense of the word. For the business world, which seems to be focused on the next quarter or next business year, it may seem to be a ‘golden rule’. In reality, it’s likely to prove to be fool’s gold. Unfortunately the 80/20 principle is fast becoming one of the canons of western business principles.

How to lose customers: Pandora.com

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Pandora’s service is without comparison: it allows you to find musical styles and within that research wonderful new artists that you wouldn’t otherwise find. This is what the website says about itself:

Pandora is a music discovery service designed to help you enjoy music you already know, and to help you discover new music you’ll love. It’s powered by the most comprehensive analysis of music ever undertaken, the Music Genome Project: a crazy project started back in early 2000 to capture the complex musical DNA of songs using a large team of highly-trained musicians.

Unfortunately, citing the DMCA, they have pulled almost the entire service for those outside the geographic USA. Recently, their chairman wrote:

Dear Pandora Visitor,

We are deeply, deeply sorry to say that due to licensing constraints, we can no longer allow access to Pandora for most listeners located outside of the U.S. We will continue to work diligently to realize the vision of a truly global Pandora, but for the time being we are required to restrict its use. We are very sad to have to do this, but there is no other alternative.

We believe that you are in Taiwan (your IP address appears to be ***.***.***.***). If you believe we have made a mistake, we apologize and ask that you please contact us at pandora-support@pandora.com

If you are a paid subscriber, please contact us at pandora-support@pandora.com and we will issue a pro-rated refund to the credit card you used to sign up. If you have been using Pandora, we will keep a record of your existing stations and bookmarked artists and songs, so that when we are able to launch in your country, they will be waiting for you.

We will be notifying listeners as licensing agreements are established in individual countries. If you would like to be notified by email when Pandora is available in your country, please enter your email address below. The pace of global licensing is hard to predict, but we have the ultimate goal of being able to offer our service everywhere.

We share your disappointment and greatly appreciate your understanding.

Sincerely,

Tim Westergen

This is an open letter to Tim Westergen,

Dear Tim Westergen,

You may share my disappointment, indeed. Unfortunately, turning away millions of customers in this fashion shows an incredible failure of both leadership and vision. When you turn away customers in this fashion, you unleashed a number of problems the consequences of which may very well come back to haunt both your company, and the US entertainment industry (which currently seems bent on extracting every possible ounce of flesh without understanding the long term consequences of such actions!) in general.

I think this decision, while understandable, is perhaps one of the most short sighted decisions I’ve ever seen, and is typical of companies in the US who resort to dealing with a technologically changing environment by employing lawyers whose sole function is to cover their own asses. I think this decision is bad for your (former) customers, your own company, and bodes ill for the US economy; and here’s why.

First, I realize as a small company that you have little choice; however, you have no idea of the goodwill that you are giving up now, that will be VERY hard to recoup or replicate, and that (when you do decide to reenter international markets) it will be MUCH harder because each of the markets you intend to enter will have developed indigenous competition that will give your company a run for its money or simply roll right over your company. Korea, Taiwan, Japan, and China all have hungry technology companies that would LOVE to have one less competitor to worry about today, so that tomorrow they won’t have to fight so hard once their market is established.

Secondly, it is clear to me and many billions outside the US who would like to download music legally, pay for it, and listen to music that isn’t otherwise available in their countries, are being denied choices by corporation lawyers who fail to find imaginative ways to solve the problems created by poorly framed laws. In many cases, many such individuals will resort to the P2P networks that have been the bane of IP laws everywhere. It’s only when companies realize that failing to serve such a market is WORSE for their profits and their business models that these customers will start to be treated well by companies such as yours.

Thirdly, the legal framework of the US is now such that more companies are now choosing to list their stocks in Europe (in London or one of the other large European bourses – they are shopping for legal frameworks that they find conducive to doing business, to making money, and to serving their customers. How long will it be before companies start shopping for countries with more favorable regimes for IP laws. With increasingly restrictive IP policies in the US, how long will it be before even US companies feel so constrained by the legislation that they have to move offshore.

Fourthy, Pandora.com has so much goodwill in its international customer base that I cannot believe you wish to throw it all away. Haven’t you any idea how much it will cost to buy such customers in the future? You have what many companies can’t buy, no matter how much money they throw at the problem, customer trust. If you turn your back on your international customers now, you will likely never get them back.

It’s one thing to say upfront who your customers are and aren’t. It’s another to turn your back on them, once they are your customers. I don’t believe that Pandora.com will recover internationally from this decision; I believe that internationally Pandora.com is now dead as a dodo. Other competitors in Europe (nearly 810 million potential listeners!), Asia (over 3.7 billion potential listeners), South America (371 million potential listeners), etc, will step in, they may not fill exactly the same void, but fill it they will.

Doubt me at your peril: in Taiwan, Kimo set up a long time ago, was recently purchased by Yahoo! and had built up an unassailable lead in online auctions over that time, such that when Ebay finally decided to enter the local market directly, they couldn’t shift the leader, no matter what they did. In fact, last year they bowed out gracelessly of this market and several others in Asia. They couldn’t buy an audience with their advertising budgets; the local market already loved Yahoo! Kimo auctions, even though Ebay had a better service, it was too late.

In effect, Pandora.com is giving up its real and tangible international business in exchange for the chance to create lots of national businesses as they license country by country. Internationally, Pandora.com could garner millions of listeners as a userbase to sell CDs to, make money from an affiliate relationship with Amazon.com (etc.), but as a series of national markets, some or many of these countries just wouldn’t have the population mass to justify the effort. In those others that are big enough, competition will prevent Pandora success, because Pandora will lose its lead.

So, thanks Tim, thanks for Pandora and all its wonders. It was a great service, but now the lawyers are running the company; I’ll be tuning to one of the other 10000 online radio stations. Thank god the internet is available outside the continental US, otherwise the RIAA would try to close that down, too.

Yours sincerely,

Kenneth

The license for this posting is granted to all but the lawyers employed by Pandora.com (or hired by Pandora.com for advising them) to read, print, copy and redistribute as you wish in its entirety. However, any Pandora.com lawyer or any RIAA lawyer who subsequently reads, receives or prints out any copy of this email, either in part or in whole, shall be liable to pay the sum of $10,000 to InvestorBlogger.com within 30 days because of their spinelessness in allowing this decision to be made.

Running Our Business

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We’ve been running a business (a language school) for over 6 years, and it’s grown from a very small base into a much larger concern than originally it was. Naturally, in business life, there are the ups and downs of the operation and the cycle of business. We’ve become aware of this.

Yesterday, though we noticed that the number of our enrolments had dropped in September, so we are still trying to analyze the situation. But anyway our moods at school have been dropping this past few weeks because of the antics of one of our staff members. So this just added icing to that cake. We are currently not profitable as the business goes right now, which feels like a real slap in our face.

I recently took back more or less complete financial control, but the hard part of our business is predicting future income (as I guess any) so to discover enrolments are down was quite a shock to me. This will naturally make the next few months more difficult than they would otherwise be.

We were planning to do so many things, but now we need to focus on our core essentials, and we need to develop our marketing skills. So I have decided to dedicate this website to my search for business and financial success. I’m hoping that its successes and failures will encourage other readers to try.
Kenneth

Business Management

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I have a very stubborn friend that reckons his biz idea - lets call it X - is a sure thing

he has little biz sense but is super keen

he has done no research on investment amount, demographics, market size, pricing etc etc. he simply thinks its a good idea

I have three or four things to say about this guy:

1. Of course, one of the problems in Taiwan is that people opening business most often don’t make adequate provisions for poor cash flow in the first 3-6 monthsj of their business plan. They often run out of cash after that period, and go out of business, even when they have a great product. I’ve seen many good business go to the wall in surprisingly short order.
2. Having said that, planning things can in some cases kill enthusiasm. We westerners tend to overplan for things to the point that the idea just dies from the weight of planning. A little spontaneity can really help get a business going. So I wouldn’t completely knock him without knowing such sketchy details as you have provided. Perhaps he’s prepared to roll with the punches, and see how things go.

3. Perhaps he isn’t worried about making a mistake or mistakes. Often, the fear of mistakes prevents entrepreneurial activity, and the planning covers the fear by claiming it is impossible. The best entrepreneurs plan, do, make mistakes and learn from the whole process, even if they decide their business didn’t work the first time.

4. So in some ways, I admire entrepreneurs who keep trying because making mistakes is a sign that one is willing to learn. But one has to be willing to learn something from each mistake, otherwise you are just banging your head against a brick wall, no?
Kenneth