Counting the Cost

For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it? – Luke 14:28

Building a business has been likened to taking a journey. Many principles apply to the journey of an entrepreneur. This week I would like to share my thoughts on four: defining a vision, setting ethical boundaries and limits, starting the journey, and finishing the course.

Before starting any journey it is vital to understand where you want to end up when the trip is finished. Defining a vision involves crafting each part of the journey mentally before doing so physically. Dr. Stephen R. Covey calls this “beginning with the end in mind”. The key elements of a vision are: understanding what you want to accomplish, knowing why you want to build this business, and identifying resources necessary to succeed. A vision should also include an honest assessment of one’s strengths and weaknesses.

Another prerequisite involves setting ethical boundaries. Dr. Clay Christensen of Harvard Business School encourages his students to ask themselves the question “How can I be sure I will stay out of jail?” It is important to define what you will and will not do in order to achieve success. Set these limits before the tasks of building a business begin. It is helpful to write a letter to your future self, to be read only when one of the boundaries you have set has been, or is about to be, crossed.

Finally, the time has come to start. Moving forward is an act of faith based on prior planning. Fear of failure can be paralyzing, even after all of the planning that has been done. Overcoming this fear requires changing the way that failure is perceived. Successful entrepreneurs view failure as an opportunity to learn. Michael Jordan expressed this idea when he said “I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed.” One little known fact about Babe Ruth is that he struck out more often than any other batter of his time. Viewing failures as a learning opportunity allows the journey to progress.

Persistence is a vital element in the entrepreneur’s journey. The ability to finish the journey that has been started marks the true definition of success in business endeavors. The temptation to quit when the going is rough can be strong, but the successful entrepreneur sees her journey through to the very end. Even a failed business venture can be considered successful when lessons are learned and built upon to avoid future mistakes. Randy Pausch, in his famous “Last Lecture”, makes the following observation: “We cannot change the cards we are dealt, just how we play the hand.” Playing the hand that has been dealt is one true mark of a finisher.

The entrepreneurial path is not an easy one. These four principles will not guarantee success in every business venture. But when they are faithfully followed the chances for success increase exponentially.

Where Do I Go From Here?

"You have brains in your head. You have feet in your shoes. You can steer yourself in any direction you choose." -- Dr. Suess, from Oh! the Places You'll Go!

The purpose of all the studying done over the past 13 weeks is to help us choose a direction for our business and for our life. This is easier said than done because opportunities are almost limitless. How do I choose an opportunity that matches my goals and abilities, will provide a good life for my family, and allow me to build on my relationships with others?

Our readings this week provided many insights and examples from successful real world entrepreneurs. Although the details of successful businesses can vary greatly, all great businesses begin with a few general similarities. I want to mention three of them.

First, a successful business builds on the education, experience and relationships of the entrepreneur. What real world skills have I learned in school and through work? How can those skills help me identify a good idea to build on? How can my friends and family help me consider various strengths and weaknesses that I have?

Second, successful entrepreneurs recognize the need to create a feasible opportunity by discussing their ideas with mentors, potential customers and other experts in the field of business. Researching the idea further will also help identify a real need and create a unique solution for that need. Is there an existing market for this need? How much competition would my business face? Is the idea strong enough to create a market when one does not exist?

Third, success depends on the ability to narrow the focus of an idea. Is there an underserved niche in an otherwise large market? How should the market be entered in order to grow the business? Many businesses fail by trying to do too much. It is better to focus on one or two needs rather than trying to “solve all the problems of the world”.

In the beginning of this course I worried about how I would find a good idea and develop it into a successful business. I have learned that the process is not as complicated as I thought it was. It comes down to following a few simple disciplines, day after day, and making choices based on good information and instincts. But more on those thoughts next week…

On the Importance of Money and Rest

“It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.” –George Lorimer

Keeping a proper perspective on the value of money may be one of the most difficult tasks in life. We all need a certain amount of money in order to live. But it is often difficult to judge how much money we truly need – to differentiate between our needs and our wants. This week I learned how the gospel helps us with our perspective on money. I can’t quote all of the things I learned, but want to share these six “rules”:

Rule 1. Seek the Lord and have hope in him

Rule 2. Keep the commandments, that includes the temporal ones, tithing and fast offerings.

Rule 3. Think about money and plan how you can become self-reliant.

Rule 4. Take advantage of chances for learning so you will not be ignorant of these matters. Education, as President Hinckley has taught us, is the Key to Opportunity.

Rule 5. Learn the laws upon which the blessings of wealth are predicated.

Rule 6. Do not send away the naked, the hungry, the thirsty or the sick or those who are held captive.

I could devote an entire post to each “rule”, but need to ponder these monetary principles more fully.

We also learned about the importance of rest this week. Wait, what? If we are resting we can’t earn money, right?

As it turns out, rest is as important to having a vision and working passionately to realize that vision as all of the other principles that we are studying. Stephen R. Covey made rest his seventh “habit” – Sharpening the Saw. Without rest, or taking time out, it is difficult to keep a clear head. It is also difficult to maintain a perspective on our failures, which are necessary in order to succeed.

I learned that rest is different than simply doing nothing. When we rest in the way the Lord intended – the commandment regarding Sabbath rest is an excellent example – we make time for the important things in life like family, friends and the Lord. Rest also helps us separate the important but not urgent things from the urgent but not important things. We rejuvenate our talents and our thinking becomes clearer. Afterwards, we are better able to focus on the vision of where we are headed.

So money and rest are not mutually exclusive. The key is maintaining a proper balance with both – not too much rest, and not too much striving after money.