The other day, my best friend and best selling author of Brand Against the Machine, John Morgan, and I decided it would be fun to hold a live video-based Q&A session and see what happened. Truthfully, we didn’t have an “agenda” for the call and really just wanted to connect with real business owners and entrepreneurs and talk about the realities of starting and running a successful business.

We believe too many people are caught up in the romanticized version of being an entrepreneur or business owner when they should instead be focused on and prepared for the realities of starting and running a business. It’s not all filled with unicorns and rainbows. We cover a TON in this video including:

• C Corp vs. S Corp vs. LLC
• How to find team members that are passionate and reward them
• How to find and hire virtual assistants
• John’s top 3 branding tips
• Online reputation management
• And a LOT more (I’m just tired of making this list)

In case you’re wondering, we also spend a healthy amount of time making fun of each other.

If you enjoy this video, John and I are hosting an online training session next Tuesday which you can sign up for here (it’s 100% free). It’s called 7 MASSIVELY Effective Strategies The Will Grow Your Business. It will be WAY more structured and organized than this. If you’re serious about starting and running a successful business, I would really encourage you to attend. The slots are filling up VERY quickly so go grab your slot one right now.

I normally don’t accept guest posts on my blog. However, I recently ran into Nicholas “Santa” Claus, the CHO (Chief Holiday Officer) of Santa Industries, Worldwide. It turns out he’s an avid reader of my blog and we thought it would be fun for him to write a guest post sharing with you how he manages such a large organization and what advice he has for entrepreneurs and business owners looking to grow. The title was his idea.

Ho ho ho! Most people don’t know it, but I started Santa Industries, Worldwide roughly 1,600 years ago. I’ve survived the dark ages, depressions, recessions, wars, and encroaching competition from retailers. Over the years, I’ve learned an enormous amount about running a successful business and I want to pass on a few tips to you.

#1 – Have a Plan

Contrary to the lifestyle portrayed in popular Christmas movies starring Tim Allen, I’m not lounging around in an oversized track suit or Hawaiian shirt waiting for Thanksgiving to roll around before I start preparing.

My business is year round. The reason we’re able to pull off Christmas Eve so successfully each year is because of what we’re doing on the 364 other days. Christmas Eve is just game time for us.

Everything from toy production to mall Santa training programs occurs behind-the-scenes all year long. I meet with my team early each January to review the successes and missteps of the previous year and to layout a plan for the upcoming year.

I’m a big fan of goal-setting. Every member of my team has goals that they put together for themselves. I also make sure that the team knows what my goals are. I find that level of transparency and accountability keeps me performing at my best.

#2 – Delegate

From teams of elves to mall Santas across the globe, I have long accepted that I can’t be everywhere all the time.

When I first started out, it was me and a sack of toys in a small town. After that first year, I knew that my dream was to give gifts to kids in other towns in other parts of the world. I learned early on that the only person who could prevent that from happening was me. Giving up control wasn’t easy at first. It felt like I was getting further and further away from the kids. And, in a way, I was. But at the same time, doing that has allowed kids all over the world to have an experience they wouldn’t have otherwise had were I to have micro-managed the process. It also has allowed others to experience the same joy that I did during that first Christmas.

I talk to a lot of business owners who struggle with giving up control. They think that they are the only people who can do the job correctly. As a result, they are stressed, frustrated, burnt out and overworked. Remember, the only person who can keep your business from growing is you.

#3 – Solicit Feedback

It’s amazing to me how many companies try to guess what their customers want rather than just asking them. My goal is to deliver what the kids want – not what I think they want. The easiest way to determine that is to ask them. This doesn’t have to be boring or clinical either. We made the process fun and magical for them. More recently, we’ve partnered with postal services all over the world to give kids the ability to submit their letters to Santa. The kids have fun and we deliver better service. Everyone wins.

When is the last time you asked your customers what they want? Are you delivering the product or the service that best meets their needs or are you just guessing?

#4 – Add a Personal Touch

I would love to meet every single child but it’s just not feasible. However, I can give them a personalized experience with me. My mall Santas understand that the kids don’t necessarily want to meet me as much as they want to know that I care about them. Therefore, the goal of each mall Santa is to reflect my love for the kids on an individualized and personal level. My elves add a handwritten tag on each gift they wrap. Everything we do is about trying to make every Susie and every Johnny feel like the most special children every Christmas. I think too many business see their clients as a nameless and faceless mass of people and forget that each one is unique and each one needs to be made to feel important.

[Editor's Note: I pressed Santa to provide some examples of other companies that are doing this well.]

You’re putting me on the spot! You know, it’s a bit cliché right now to mention Zappos, but the team over there is really doing such an incredible job at this. I think Richard Branson and his team at Virgin understand this very well. I know Richard quite well – Ms. Claus and I have vacationed with him and his family on his island a few times. Here’s a guy who runs a multi-billion dollar organization with over 300 companies and yet everyone feels like they know him. He’s really quite personable and that shows through on the front lines of his organization. Every level is focused on delivering outstanding service with incredible attention to detail.

Not surprisingly, I think the kids get this principle better than their parents do. Do you realize how special I feel every time I show up to a house with cookies and milk set out for me? In all honesty, some of the cookies are horrendous. But that’s not the point. The point is that they did a little something special and personalized for me. Executives could learn a lot from their kids.

#5 – Maintain Brand Consistency

We are fortunate to have one of the most recognizable brands in the world (other than, perhaps Coca-Cola). But I’m often asked why I don’t updated it with the times.

Trends are just that – trends. They come and go. Imagine if every time the wind shifted I updated my look. The poor kids wouldn’t recognize me! I remember when bell bottoms and tie-dye shirts were all the rage. One of my elves suggested it was time for me to change in order to survive. I had a momentary lapse in judgement and allowed a team of specialists to create a new suit for me. I looked like an old hippie on my way to a Grateful Dead concert. Thankfully, we conducted a small focus group with a few kids before rolling out to the entire organization.

I’ll just put it this way: I have enough trouble with kids crying and wetting themselves on the laps of my mall Santas. It was a disaster.

Does this mean that I don’t try to adapt my business?

Of course not! We change with the times. We’re always looking at ways of making better use of social media and technology. We’re not stagnant at all. But we understand the importance of staying true to the core part of the brand. Look at Coca-Cola. One of the reasons our partnership with them is so successful is because they’ve been as consistent with their brand as we’ve been.

Now, compare them with Pepsi. Pepsi is a fine company but they’ve become stuck in this pattern of having to rebrand themselves every few years. It all started in the 80′s when they did that “choice of a new generation” thing. Problems arose when that generation grew up. So they had to adapt again. I don’t think they’ve ever quite recovered from that.

Your brand can evolve and grow as you and your company evolves and grows. However, be careful not to change just because of temporary trends and fads. People value consistency and predictability with products and services.

#6 – Focus on and Exploit Your Strengths

Over the years, a lot of people have questioned my decision to focus solely on Christmas. I’ve been told that I could give the Easter Bunny and “The Turkey” some serious competition. But the reality is, those holidays aren’t my areas of strength. Were I to venture into them, they would distract me and divert my time, energy, and resources away from our “core competencies” (as MBAs always like to say).

This would open Santa Industries up to increased pressure from outside competition. A distracted competitor is a weak competitor. We’ve had year-over-year growth for 1,600 years and I’m not arrogant enough to believe that I can be all things to all people. You’ve heard the old adage: if you try to please everyone, you end up pleasing no one. The same is true in the holiday industry.

Too many entrepreneurs can’t define who they serve and how they serve them. How do I know? They put it at the top of their Christmas list each year. But you don’t have to be Santa to figure this out – just ask an entrepreneur who their target market is and watch while they stutter all over themselves trying to answer the question. Clarity of mission and the ability to focus on developing your unique strengths is what will set you apart from the competition and make it nearly impossible to compete with you.

#7 – Have Fun

While running a business isn’t all fun and games, that doesn’t mean it should be misery and drudgery either.

I love what I do. It’s a gift from God and I try to have as much fun doing it as I can. Fun is part of our culture and it starts at the top of the organization. It’s amazing how many companies try to create programs that are designed to get people to have fun inside the company. As if you can mandate fun. Fun is either part of your culture or it isn’t. If you run a company or own a business and you’re not having fun, don’t expect others to either.

Does that mean that every day is filled with sugar plums and reindeer games? Of course not. I have my bad days – just like everyone does. However, I’m living out my dream and it’s something I’m passionate about. The minute it stops being fun is the minute I hang up the suit. I wish more people could experience the joy I have at work. Unfortunately too many people are too afraid to step out of their comfort zones. They’re missing out. God put everyone here for a reason and, when you discover that purpose and pursue it with passion and diligence, you will find fulfillment.

Merry Christmas To All…

And to all a successful New Year! Which of these 7 Magical Business Tips From Me (Santa) need to become priorities for your business next year?

My very good friend sent out the following tweet (which I in turn retweeted):

Any logo designers out there want to work on a fun project in return for a lot of exposure?

One of the first responses I received was this one from @notlikenormal:

Which was then followed by these tweets (as well as a few more):

I decided that these warranted a blog post since it allows for more than just 140 character sound bites.

Should You Ever Take Free Work as a Creative?

100% yes. Anybody who tells you differently is just angry that you got a job they wanted.

I’ve spent the majority of my career in some form of creative industry – from web design to application development to writing to speaking. I have ALWAYS done free work at the very beginning in order to build up a portfolio.

Why? Because without a portfolio of work, it can be extremely difficult to get paid work. It’s as simple as that. One of the first conferences I keynoted, I did for free so that I could have video of me on a stage in front of hundreds of people. Could I have refused the opportunity? Of course! Would I have been mistaken to do so? Absolutely.

That event has allowed me to book tens of thousands of dollars worth of speaking engagements, consulting agreements and more.

The Problem With the Starving Artist

Artists and creatives tend to make bad business people. Not all of them, but many of them. They value the time and creativity and energy that go into their art (as they absolutely should).

The problem is they are still starving because nobody is aware that their art exists. Ask any successful musician how many free gigs they played when they started and they’ll laugh at the idea of trying to number them. Most of them had day jobs to pay the bills and played nights and weekends to gain exposure and experience.

I want to be clear on this: you don’t deserve to be paid for your work, you earn the right to be paid for your work. How you get “paid” is completely up to you. When you have a day job and you’re starting out, which is more important: money or exposure? I would argue exposure.

Does that mean you should not try to start charging as soon as you can? Absolutely not. But don’t kid yourself into thinking that being untested and broke is noble.

The Truth About “Free”

Many of the people who get upset about situations like this give things away for free all of the time. They blog, they tweet, they post Facebook updates, etc. I do it here all the time.

Somehow, that’s an acceptable form of free. Yet we all know that it’s not free. My time has a high value associated with it. I have to pay hosting companies. I have to pay for designers and developers and much more to keep this site going. But I do it for exposure and that exposure has led to opportunities and those opportunities have led to income and allowed me to travel all over the country doing what I love.

I could live by the principle that people should have to pay for this “art.” And, if I did, I would still be slogging away at some job I hated. I charge for much of the content I create and I will continue to charge for more of it moving forward. I am able to do this because I’ve worked to create content and a brand that more people are willing to pay for.

Supply and Demand

It’s really simple: when you are starting out, demand for your product or service is non-existent or extremely low but the supply is high (meaning you have lots of work you’d really like to do). Therefore, your prices have to be very low or even free.

As you gain exposure and build up a portfolio or following, the demand for your product or service will start to go up and your availability (usually measured by time) will decrease. Consequently, you can – and should – raise your prices.

This is how business has worked for thousands of years and you are a business – whether you’re an employee, freelancer or business owner.

Is It Stealing Work from Others?

Nope. It’s simply choosing to get paid in a different way.

Don’t They Have the Money to Pay?

Probably. And there’s an old saying that you get what you pay for. However, if both sides agree to the terms, they both get to live with the consequences – good or bad. I know of plenty of professional speakers who charge tens of thousands of dollars for speaking gigs but will drastically reduce their rates given the convergence of the right factors (audience size, location, exposure, etc.).

I am also aware of organizations that could have easily paid for a speaker but tried to go the free route only to wind up with a train wreck on their hands and dissatisfied attendees.

Seth Godin has written 13 books all of which were best sellers. When he started his own publishing company and released the first book under the new company (Poke the Box), he spent the first week giving it away for free on the Kindle.

Why? Exposure. He knew that having people read and distribute it was more valuable than the money he could have earned during that first week. I would bet that he would tell you he made more from having given the book away than he would have if he held the price firm on the basis of “principle.”

Would he have been justified? Absolutely! As a writer, few are more proven than Seth Godin and his followers had both the money and the willingness to pay him. But this was about his new company which was not proven and launching under an entirely new model of book publishing.

You’re not Seth Godin and neither am I. If you want to quickly gain exposure in the early stages of your career as an artist or creative of any kind, leverage your ability to do work for free to build your portfolio.

[UPDATE: As John Morgan pointed out in the comments below, Seth Godin actually posted on a similar topic a couple of weeks back. You can check out that post by following this link.]

Is It Settling?

Absolutely not! I never settled for doing free work – I jumped at the opportunity to earn exposure and build my brand. I used that work to refine my craft and improve my skills so that, when I did begin charging, I was confident that I would over deliver to my clients.

It would only be settling if I never started charging out of fear or self-doubt.

Do you agree or disagree? Sound off in the comments below but please keep it respectable or I’ll nuke your comment.

In the process, we made a ton of mistakes, failed miserably (and embarrassingly) at times and still managed to do something that had never been done at a PodCamp or BarCamp anywhere before (at least to our knowledge). We pulled off our show and raised the bar. Over the next couple of weeks, I’ll share the interviews with you along with a video detailing more of the behind-the-scenes stuff you don’t know about.

Dan Miller – Best Selling Author & Career Coach

The first interview I want to share with you was with best-selling author and career Dan Miller. Dan has written two incredible books called 48 Days to the Work You Love and No More Dreaded Mondays. If you hate your job or you need a job, go pick up 48 Days to the Work You Love right now.

Dan also has one of the most successful business podcasts on iTunes which you can get to here. I’ve had the pleasure of meeting Dan a couple of times and he happened to be milling around PodCamp Nashville on Saturday when Justin Davis ran into him. Not sure of how long he’d be there, I asked him if he would be willing to let me interview him.

Dan graciously accepted my request and I had the honor of interviewing a person I great respect. My sincerest “Thank You” to Dan.

Get notified when the next interview goes live! Enter your email address below!

Warning: This post has only been mildly proofread. It’s my “gut reaction” to a few conversations on debt over the last two days. It’s not nearly as polished as many of my others. Don’t say you haven’t been warned.

This post has been rolling around in my head for a while. I didn’t plan on writing it yet – partially because it’s a sensitive topic and partially because it’s difficult to be thorough and brief. Not impossible, just difficult.

On Thursday, I was talking with my oldest friend when the topic of debt came up. I told him that I believe any business could be started and operated without debt. He disagreed and it started a fun and challenging dialogue about “responsible borrowing.”

That same evening, I was talking with my wife Lisa at dinner recounting the conversation when I said, “Debt is a tool of the impatient person.” We talked about that for a while and I stand by my statement. (She agreed with me, in case you’re wondering.)

Today, I tweeted that statement out and heard about “responsible debt” again from a business perspective along with it being an “effective” tool when used responsibly.

Finally, my friend Amber asked what Dave Ramsey would say about Kiva.org – the micro-lending site that allows ordinary people in wealthier nations to help those in third-world countries by loaning them small amounts to start businesses. I told her I didn’t know (which I don’t) – nor am I really concerned about it.

My stance on debt and finances, while certainly informed by Dave Ramsey, is my own. It’s been molded from my own experiences and background and it has evolved a lot over the years. I met him once for 30 seconds. Kiva never came up.

So let me try to tackle these points.

Is Debt Needed to Start a Business?

The short answer: no.

The long answer: no.

“But what about…” Look, I’ve heard a lot of these questions. One of the more common ones I get is about restaurants. Opening a restaurant takes a lot of money. The average is about $125,000. Most are likely financed. I have no statistics on this – it’s a conjecture, but I’d bet I’m right. Anywhere from 60-90% depending on your source will close in the first 5 years.

Here’s the deal: if you take out a loan to start a business, you will have to personally guarantee the loan. Which means, you will be borrowing against your family’s well-being and putting it at risk for a business. If your business goes under, creditors have rights to your personal assets. This is bad. Just ask anyone who’s gone through bankruptcy after borrowing to start their business.

Would You Borrow Money to Invest in the Stock Market?

If I came to you and asked if I would be wise to take a home equity line on my house at a rate of 7% to invest it in the stock market which historically returns 10% or more in the long-term, what would you say?

I hope you would tell me I’m an idiot.

Investing in the stock market is investing in businesses. When you buy shares of a company, you are investing in that business. So it is when you’re starting a business. You must invest capital to start a business. So, should you borrow money and leverage your personal assets to start a business?

I’d argue the answers are the same.

Debt is a Tool of the Impatient

There. I said it again. I still stand by it.

Let’s go back to our restaurant example. The argument makes a faulty assumption that the only way to open a restaurant is to open a restaurant in one step. To go from “I don’t own a business” to “I now own a fully operational restaurant” in 6 months. If you take that view, then you will need $125,000 over the next 6 months (if not more). There are only three ways to get $125,000 (legally):

1. Borrow the funds
2. Get investors
3. Save up the money

While I used to be, I’m no longer a fan of legal partnerships. I’d prefer to maintain 100% control. But how do you save up a $125,000? You bootstrap it.

Here’s an example of bootstrapping a restaurant:

1. Save up $10,000 while keeping your day job. At night, start building up a killer short menu. Test out your recipes on friends and family who will give honest feedback.
2. When you have some money saved up, offer to cater a friend’s wedding who’s looking to save money. Use your previously created menu as the starting point. Use your $10,000 (or whatever the actual number would be) to hire a few servers for the day – or recruit family.
3. If it’s well-received, start connecting with local party planners, party supply rental companies, etc. Tell them about your services and create joint ventures with them to refer business.
4. Save and invest back into the growth of the business but only grow as fast as you can manage without debt.
5. Live on less than you make. (Shocking, I know.) I’ve tried it the other way, it doesn’t work for long.
6. When you have some money saved up (let’s say $75,000-$100,000), try to find a failing restaurant in a good location. Structure a great buyout deal.
7. Invest as little of your money as you can to refurbish the restaurant and get it running. Invite EVERYONE you’ve ever catered for opening night.
8. Rinse and repeat.

Now, I’m not in the restaurant business. I’ve been a waiter before – and a pretty bad one at that. Obviously, there are steps missing in my sample plan. That’s not the point. The point is that is can be done. It just takes patience.

“But I don’t want to open a catering company.” That’s fine. You’re not patient. I get it. Go get a loan. Just don’t tell me it can’t be done.

So, how patient are you?

Bootstrapping is More for “Lifestyle Businesses”

Tell that to Cisco. The company is valued at $131 Billion (with a “B”). And, according to USA Today, the company has never had any debt since the inception of the company. Building a business debt-free is possible – regardless of the type of business.

My Thoughts on Kiva.org

Crap. This is going to tick some people off. Or a lot of people.

If you live your life by a set of principles, then you have to ask if those principles are black-and-white or if they’re guidelines. Things rarely fit neatly into a black-and-white world. After all, the world we live in is broken. But that’s a post for another day.

If you don’t know what Kiva is, it’s a micro-lending company where those in third-world companies are loaned money to get a small business started. The average is about USD $380. Not a lot to us, but a lot to them. You can pitch in as little as $25 toward their fundraising goal and the site a has a repayment rate of nearly 99% – an astounding figure.

Let me start by saying that my thoughts on Kiva are directed by this principle:

“The rich rules over the poor, and the borrower is slave to the lender.” Proverbs 22:7

Our faiths guide our worldview. So, if I look at this statement, what am I to believe? If I loan someone money, am I putting myself in the position of slave master? I’ve answered this for myself in the affirmative. Why? Because I’ve been on the other side and I was a slave to creditors and it nearly ruined me.

Separating the Mission of Kiva from the Method

I love what Kiva is trying to do. I’m a big supporter of their mission to end poverty. However, I have to ask myself if the method of putting people into debt is the right way or the best way to do this.

An interesting statistic that I’ve not been able to find on Kiva’s website is the success rate of businesses that have received money from Kiva loans. There is a difference between repaying a loan and running a successful business. They readily reveal the lending stats, but I’m not sure those are great measurement for success of any business other than their own (and the people loaning money).

The problems of poverty are huge and won’t be solved by this post. There are a lot of great organizations trying to fight it on different fronts. Many people have given money to Kiva. They are not bad people. The people running Kiva are not bad people. The people borrowing money from Kiva are not bad people. I’m merely calling into question the method.

I love the idea of helping people start small businesses in third-world countries. After all, I’m an unapologetic capitalist. But is the problem their lack of funding or is it a lack of education in basic financial principles?

Does the ability to repay a loan makes someone suddenly capable of making sound financial decisions?

Your Turn

Now that I’ve managed to anger a large segment of people, I’m going to stop and turn the blog over to you. The comment section is below. Have at it (or me). I will respond to everyone.

By the way, if you want to win 30 minutes on the phone with me to talk about goal setting or to yell at me for these viewpoints, read my post on How To Set Better Goals. You still have a little bit of time left.

Image credit: iandavid

Late last week, my wife Lisa came down with some cold/flu thing so we swung by our nearest Redbox to pick up a movie. What we ended up with is the ultra chick-flick “Letters to Juliet.” Other than being your typical, predictable film, it was cute.

Then something unexpected happened. Toward the end of the movie, one of the characters said something that knocked me upside the head:

“What” and “if” are two words as non-threatening as words can be. But, put them together side-by-side and they have the power to haunt you for the rest of your life.

If you want to create a life you’re proud of, build a legacy, and live a life with few regrets, you need to wrestle with the “What if” questions right now. Here’s a tip: read them as if you’re at the end of your life looking back. Then ask yourself what you can change in your life today. I’ve broken them into categories to make it easier to think about the different areas of your life.

Warning: You will ask these questions eventually. Better now than when it’s too late to do anything about them.

Career
What if you started that business you dreamed about for years?
What if you made your living doing something that made you feel alive?
What if money were no object? What would you do?
What if you could answer that question with, “I’m already doing it”?
What if your unemployment was really just an opportunity to try something new?
What if you didn’t accept that “this is how life works”?
What if you didn’t spend 2 weeks each year escaping from the work you do the other 50?
What if you found a job that combined your strengths and passions?
What if you spent less time in front of the TV?

Risk/Fear
What if you didn’t care what other people thought of you?
What if you acted in spite of your fear?
What if you said “Yes” when fear told you to say “No”?
What if you said “No” when fear told you to say “Yes”?
What if you didn’t quit?
What if you did quit?
What if you failed knowing that at least you tried?
What if you didn’t fail?
What if you didn’t learn from your failures?
What if they laughed at you?
What if they gave you a standing ovation?
What if you tried out for that team or applied for that position?
What if they say no?
What if they say yes?

Relationships/Family
What if you worked as hard on your marriage as you do in your job?
What if you spent more time with your kids and less time with your work?
What if you made the phrase “I love you” part of your daily life?
What if you called your parents more often?
What if you said, “I’m sorry”?
What if you said, “I forgive you”?
What if you said, “Thank you”?
What if you did something unexpected for someone you love, just because?
What if you did something for someone who couldn’t give you anything in return?
What if your memories were filled with more laughter than tears?
What if you cared as much about others as you do about yourself?

Health
What if you exercised just 20 minutes each day?
What if you quit smoking?
What if you lost weight?
What if you ate better?

Finances
What if you had no debt?
What if you spent less money?
What if you saved more money?
What if you gave more of your money?
What if you cut up your credit cards and consumed less?
What if you paid for things with only cash?
What if you didn’t measure your success by how much money you made or stuff you had?

Spirituality
What if you prayed more and worried less?
What if there is a God?
What if that God loves you?

Live Without Regrets

What if you could do it all over again?
What if these questions weren’t filled with regrets?

What if you got to the end of your life and never wondered, “What if?”

It’s better to ask, answer, and act on the “What if” questions now rather than wait until you’re older or until you’re told you have just a short time to live. We can’t go back and change what’s been done. But we can learn from the past and change how we move forward.

Don’t settle. Don’t accept status quo. Don’t wonder, “What if…?” It takes courage. But your family, your friends, the world, and your legacy are waiting on you to live with courage.

Photo courtesy of fadedmilkyway

[Note to the grammar police: I know that the sign in the image should say "You're Fired." I don't care - I like the photo.]

One of the benefits that comes from writing about entrepreneurship is hearing from people who are making it happen. Some of the best stories are those where a person got laid off or fired and then, instead of going out and getting a J-O-B, they started their own business.

They usually have a twinkle in their eyes when they recount the story. They refer to a “weight being lifted” from their shoulders. They feel like they’ve “come alive.” Most say they make more money now then when they were back at their corporate gigs.

One of the most popular posts on this blog is from my friend Amber Khan who has one of those success stories.

Why Wait to be Fired?

Then I got to thinking. Why do so many people wait until they’re fired or laid off before they launch their own business? Why didn’t they quit that job they hated and fire their boss?

I know that fear is an obvious answer. But I think it’s more than that. Some people just don’t know how to quit. To them, quitting seems overwhelming because they’ve not taken the steps to be ready for it.

You Should Quit At Least Once in Your Life

Unless you’re one of those rare few who’ve never had a job (I’m looking at you, Chris Guillabeau), you’ve likely found yourself in some miserable position that sucks the life out you like a teenage vampire named Edward. Maybe you’re there right now.

I found myself there a few times. Too often though, I tried to stick it out. I rationalized that things would “get better when _______________.” Unfortunately, “when” never came.

The reality is that even if it did get better, it will never become great. You make the mistake that better than crappy is good enough since it’s an improvement. You settle.

Don’t ever settle. Why?

Quitting Can Make You Happier and Wealthier

This may surprise you, but unhappy people generally have less fun and make less money. Let that sink in.

Happiness and wealth don’t follow miserable people around begging for a chance to sulk with them. They actually don’t follow people around. Happiness and wealth have to be pursued.

It’s difficult to pursue happiness and wealth when you make a habit of settling for crappy positions that you hope will improve.

3 Steps to Firing Your Boss

So what do you need to do to fire your boss so that you can pursue something that fulfills you? Here’s a quick-start guide:

Step 1: Prepare

Prepare for the change in income. If you’re going to open that consultancy you’ve been dreaming about or start that home-based business, find ways to lay the groundwork before you quit.

When you’re laid off, you often don’t have this luxury. However, those who are gainfully (even if miserably) employed can do some initial prep-work before launching full time. Here are some recommendations to get you started:

Start the Business on Your Nights, Weekends and Lunch Breaks
Tell everyone you know (that can’t get you fired) what you’re doing. Get some initial clients and work out those startup kinks. This is a great way to test the waters and find out if you even like the work.

You’ll hear some people talk about trying to get their side business income to the level of their current position before they quit. While this is a fine goal, don’t be surprised if it proves to be more difficult than you planned. Time and energy are finite and certain businesses can only grow so large with part-time effort.

If you find that your nights, weekends, and lunch breaks have you to 40-50% of your salary, it may be time to quit. Ask yourself if you think a full-time focus on your business could get you up near (or above) 100% in a month or two.

Get Out of Debt and Build Up Your Savings

“Opening a business with debt is like trying to run a marathon with a loaded backpack on.” – Dave Ramsey

If you want to be successful at running your own business, you must learn to say “no” to yourself. Debt comes from saying “yes” too often. Climbing out of debt will give you the discipline you need to run a business on a budget.

Also, make sure you can survive through those lean months with a nice cushion built up in savings. Dave Ramsey recommends 3-6 months and I agree with him.

Step 2: Uncover Your Passion

Part of the reason we end up in positions we hate is because we chase money rather than pursue our passion. Money is important – but it’s not the only thing that should determine what you do with your life.

Use this foundation-laying time to discover what makes you come alive. What are your interests? Which activities do you participate in that cause time to fly at work?

There are great resources that can help you get started. I recommend the StrengthsFinder series along with Dan Miller’s book 48 Days to the Work You Love. They will get you thinking differently about your career path.

Step 3: Pull the Trigger (In a Non-Postal Way)

If you’ve taken the two steps above, you’re ready to pull the trigger. Here’s a tip: try not to burn bridges. I’ve watched people quit in over-the-top fashion just because they could.

Sure, it may make you an internet celebrity for a week, but remember that your reputation as a person of character is much more important. No matter how bad it was at the company, be gracious and look for win-win opportunities.

You’re about to leave them with a void in their team and this can be an opportunity for you. I was able to contract back to previous employers for varying lengths which helped smooth transitions for me financially.

Share Your Thoughts

If you’ve ever quit a job that sucked the life out of you, how did you feel after you made the decision? What tips would you offer to those who are thinking of doing the same?

If you’re stuck in a rut or a job you don’t love, what steps are you having the most difficulty with? Why are you staying put?

I’d love to get your thoughts below.

Photo credit: maisonbisson

“Hey, you’re the same age as Jesus was when he died!”

Yesterday was my 33rd birthday and the person who said that to me got me thinking about what turning “Jesus’ age” means.

No, there’s no mid-life crisis and I haven’t raced out to buy a convertible Corvette. But it’s sometimes good to think about what we’ve learned over the course of a lifetime.

I like to think about what I would tell myself if I could travel back in time to when I was in my early 20’s. Here are three lessons I would give myself.

Lesson #1: Bad Goals Are Always Disguised as Good Goals

If you set a goal for your life, you generally do so with the best of intentions. But good intentions don’t always lead to good goals. In fact, they can lead to just the opposite.

When I was in my early 20’s, I set a goal for myself that I would be a millionaire by 30. On the surface, this sounds like a good goal. After all, doing so would require me to work hard, make smart decisions with our money, live below our means, and to do all of the other things becoming a millionaire requires.

So what’s bad about this goal?

• It puts the emphasis on the wrong side of the equation. Because my focus was on the money, I ended up making bad decisions during that period of my life.
• I chose a career based on money rather than passion. I hated so much of my 20’s because I dreaded going to work each day. I was burning out very quickly.
• I became a workaholic. I spent too many years working 80+ hours each week. I neglected my wife Lisa, our family, and our friendships. As a result, I nearly lost my marriage.
• I didn’t take care of my health. By the time I was 26, my cholesterol was 351 (very bad), I was overweight, and I developed shingles due to stress. The final straw was when (at 31) I developed a severe case of vasculitis.

So how can you ensure that your goals are actually good for you? You evaluate the underlying assumptions.

I assumed that becoming a millionaire by 30 would make my life better than doing it by 35, 40 or even 50. Becoming a millionaire is a fine goal. However, the minute I put the “by 30” timeframe on it, I forced myself to make short-term sacrifices that would harm me in the long-run.

What good is being a 30-year-old millionaire if you’re overweight, burnt-out, and divorced?

If your goals require you to sacrifice things that you know are good for something you think might be good, it’s a bad goal.

Lesson #2: Life Moves Quickly, But This Isn’t a Race

When I was 6, Christmas took forever to roll around. A week was like a month. Now, I look up and it’s the end of August. It seems like just yesterday that I was freezing my butt off in January.

I know I sound like an old fart with this one, but I don’t care. It’s true. The more life advances, the more quickly it moves.

This can lead to the feeling that we need to hurry up: “Time is running out and I need to get a move on with my goals and my plans and my future. After all, look at the Jones’ over there – they already have 2.5 kids, a BMW, and a 5 bedroom house mortgage.”

The feeling like you’re in a race against time with your life is based on the assumption that certain things are “supposed to happen” at certain times.

• I should be married by 28
• I should own a home by 30
• I should have 2 kids by 35
• My 30s are my “earning years”
• I want to retire by 50

And on it goes. But all of those make false assumptions of how life should work that aren’t based in anything other than tradition and the expectations of others.

This isn’t to say that you should lazily meander through life. On the contrary, you need to set goals and pursue your dreams.

But, if you race through life always trying to get to the next level, you’re going to wake up one day and realize that it was all in vain and you won’t be able to get any of the time back. And that’s what you’ll get if you chase arbitrary, cultural targets.

Generally, our biggest regrets in life don’t come from doing things we shouldn’t have done. They come from not doing the things we know we should have.

Lesson #3: Never Settle

Too many people settle for a mediocre existence rather than pursue a meaningful life.

How do I know? Because the average American watches 4 hours of TV per day. If you’re settling for a life of mediocre existence, you will find ways to distract yourself from that awful feeling deep down inside of you that your life lacks true meaning and purpose. You will want to disconnect from the “real world.”

Instead of pursing our passions, we watch reality shows like American Idol and So You Think You Can Dance where we can sit on the sidelines of life and live vicariously through others who are doing what we’re afraid to.

If you only learn one thing before you turn 33, please learn this one: never settle. Never stop dreaming.

I’ve found my meaning through my faith, my family, my friends and my pursuit of my passion.

Share Your Lessons

If you could travel back in time, what lessons would you give to yourself?

There are a lot of people who talk about “one day” owning their own business. Yet, very few people actually end up even trying it. Why?

Usually it’s because they’ve chosen to believe one or more lies about starting a business. There are 7 common lies that people are telling themselves right now that will keep them from changing their dream of entrepreneurship into a set of goals they can accomplish.

Lie #1 – It’s Too Risky In Today’s Economy

Without a doubt, our current economic situation sucks. However, that doesn’t mean you shouldn’t start a business. In fact, starting a business during an economic downturn may be one of the best things you can do.

Why?

• Your job is likely not as safe as you think it is. After all, layoffs increase during times of economic uncertainty. Right? Why not put yourself in the driver’s seat rather than depend on someone else for a paycheck?
• It will force you to prioritize your spending. If you can operate a profitable business in an economic downturn, you can do it during times of economic boom.
• Competition decreases during crappy economic times. It’s sad but true. A lot of companies go out of business in a downturn. Regardless of the reason, this creates opportunity for someone who is talented and willing to work hard to take on clients from failing companies.
• It’s cheaper to start a business during a downturn. With so many businesses going under right now, it’s a great time to pick up needed items at an auction or on Craigslist. You can also negotiate better deals with potential vendors right now.

Here’s a fun fact: roughly half of the Dow Jones 30 were started during a recession. Now may be a great time to start that business you’ve been talking about.

Lie #2 – I Don’t Have Enough Time

How was last night’s episode of Gossip Girl? How insane was that Yankees game? OMG…did you see the preview for the next episode of Glee?

• The average American watches nearly 4 hours of TV per day.
• 49% of Americans say they watch too much TV.
• 98% of households in the US have at least 1 TV.
• 34% have 2.

You have the time. You just have to claim it from the other distractions in your life. If TV isn’t the problem, you may be working too many hours for someone else doing something you hate. This was my problem for too many years. I made a lot of money doing work I didn’t enjoy so that I could buy stuff I didn’t need.

Lie #3 – I Can’t Afford To Quit My Job

Who said you have to quit your job to start a business? Most businesses are started during nights and weekends. Feel like you don’t have enough time on nights and weekends? See Lie #2 above.

Oftentimes, it’s not an income problem that people have – it’s a spending problem. Their cost of living has risen to – or more likely above- their income.

So how can you prepare for being able to quit your job? Here are some things you can do to get ready:

• Save up 6 months of living expenses in a money market account.
• Create a budget for both the business and your household. Figure out how much money your business will need to make in order for you to survive.
• Get out of debt and stay out of debt. It’s a lot easier to start a business if you don’t have to worry about creditors knocking down your door.
• Practice living on less before you have to start living on less. It’s a habit you have to learn. There is not magic “live within my means” pill.

Lie #4 – It Takes Too Much Money To Start a Business

There are a lot of businesses that can be started on less than $1,000, $5,000 or even $10,000 dollars. You just have to start thinking differently about how you’re going to do it.

First, start small and then scale up. You don’t need to go lease a storefront just because you want to own “the best hotdog joint in town.” Instead, start by renting a cart and setting up shop on a busy street in the financial district downtown. Try out different recipes while minimizing exposure. Figure out if people even like your hotdogs.

Then, if things are going well, begin planning for expansion into a bigger market. Figure out how much money it will take to purchase your own cart. Start saving to buy one without financing it. Once you own your own cart, begin socking money away to buy another cart (in cash) and hire an employee to run it. Keep up this process until you own enough carts that you’re making enough money to open your storefront without going into debt.

Too many people use borrowed money such as credit cards, home equity, and personal loans to finance the opening and/or growth of their business. This is stupid. Figure out how to start smaller with less exposure and risk. It will keep you making smarter decisions because you won’t be able to buy things you can’t afford.

Lie #5 – I Don’t Know Anything About Running a Business

Neither do a lot of people when they start a business and it shouldn’t stop you from starting one.

Don’t get me wrong – you need to learn about running a business. But there are a lot of free or low-cost resources available to you:

• Ask friends and family who have started a business to act as advisors and mentors.
• Contact SCORE. They offer free small business advice and mentoring in-person and online.
• Visit your local library and become and avid reader of business books.
• Find and read blogs on business development, sales, marketing, freelancing, etc.

If you’re starting small and part-time as I suggest, you’ll have time to learn about running a business as you do it. It will take a lot of the pressure off of having to know it all up-front.

Lie #6 – I’ll Go Out on My Own When …

…my kids are out of the house.
…I retire.
…I blah, blah, blah.

No. You most likely won’t. Excuses like these are generally made out of fear. Starting a business can be a frightening thought. So rather than admit the fear and confront it, people mask it behind “sensible” statements such as these. They tell themselves that it would be unwise to do it right now.

These statements meet two needs:

• We don’t want to admit we’re scared, so we tell ourselves and others that we’re going to do it…just…down the road. It keeps the dream alive – even if only on life support.
• It makes us sound reasonable in our fear. After all, who doesn’t want to sound reasonable? Nobody wants to be seen as rash or foolish. This type of excuse enables us to lie to ourselves and others while maintaining a bit of self-respect.

Lie #7 – I Don’t Know What Kind of Business to Start

I think that most people have an idea of what kind of business they would start, they just don’t want to admit it in any other capacity than as a fantasy.

What do I mean by that?

Have you ever played the game with friends where you answer the question “What would you do if money weren’t an object?” Of course. We’ve all done it. And it’s fun because it’s “safe.” It’s all fantasy because, of course, money is an object. So we talk about our fantasy of starting our own sports memorabilia store, wedding photography business, bakery, PR agency, non-profit, etc.

The problem is that when we relegate our passions to the world of fantasy, we no longer see them as potentially viable businesses. We assume that something we’re passionate about can’t possibly make money. It just seems too good to be true that we could actually do something we love and provide for our families.

If you know how to answer that question in a cocktail party setting, then you know what kind of business to start. Now, granted, the business may take on a different form than in your money-is-no-object fantasy. But that doesn’t mean you shouldn’t take the above steps to make it happen.

Share Your Thoughts

Are any of these lies stopping you from starting a business?

If you’ve already started your business, which lie did you struggle with the most? Should I have added additional lies to the list?

I’d love to hear your experiences in the comments below.

Do you remember the first job you applied for as a young adult? Chances are it was for some entry-level position that merely required you to be half as intelligent as you were, show up on time, and not be drunk.

Yet some genius in HR decided it was a good idea to put “1-3 years of previous experience required” in the ad for the position. To me, that always felt like asking a rookie-year baseball player to have “1-3 years of major league experience.”

Yesterday, The Grasshopper Group published an interesting info graphic titled “The Harsh Realities of Starting a Small Business”. I spent some time reviewing the data and a few things struck me as interesting. But I want to focus on one of them today:

According the U.S. Small Business Administration, the number one reason businesses fail is due to lack of experience.

Lack of Experience Isn’t the Problem

If you’re starting your first business, how much experience do you have starting a business? (The answer is “none” for those still waking up.) So how do you gain experience? You start a business.

The bad news is that, statistically, you’re going to fail. The good news is that it won’t be your lack of experience and it can be prevented. After all, plenty of first-time entrepreneurs succeed.

So if lack of experience isn’t the reason most businesses fail, then what is? I’d argue that it’s pride.

The Path to Entrepreneurship

Why did you start your company? Or, if you’re not there yet, why do you want to start your own business? It’s probably because you believe that you can run a business and that you’d be happier working for yourself. Maybe you’re fed up with your job or your boss. Maybe you hate having to ask for permission to take a vacation. Maybe it’s been a dream since you were a kid.

Whatever the reason, the path to starting a business always begins with the idea that you have the ability to run a company. In his book The E-Myth Revisited, Michael Gerber wrote the following:

Inside your mind it sounded something like this: “What am I doing this for? Why am I working for this guy? Hell, I know as much about this as he does. If it weren’t for me, he wouldn’t have a business. Any dummy can run a business. I’m working for one.”

Whether this is confidence, pride, or a little bit of both is a moot point. It’s what happens next that’s the problem.

When Pride Replaces Confidence

If you’re inexperienced, you should at least have confidence in your ability to learn, grow, and adapt if you want to start a business. Confidence is not a bad thing. However, if you’re not careful, your confidence can easily morph into pride.

• Confidence says, “I can learn how to do this.” Pride says, “I know how to do this.”
• Confidence says, “I can bond around my weaknesses.” Pride says, “If you want something done right, you have to do it yourself.”
• Confidence says, “I made a mistake.” Pride says, “She screwed up.”
• Confidence asks, “Can you help me?” Pride says, “I don’t need his advice.”
• Confidence says, “I will earn this.” Pride says, “I deserve this.”
• Confidence says, “I don’t know.” Pride says, “He doesn’t know.”

Lacking something – anything – is never the problem. Not doing anything to gain what you lack is the problem. Pride will prevent you from taking the steps you need to take to gain what you’re missing. I can’t guarantee that you’ll be successful on your first business if you check your pride at the door. However, you’ll increase the likelihood of your success because you’ll grow, learn and adapt.

Don’t let your lack of experience keep you from starting a business. Instead, let your lack of experience drive you toward those who can help you, teach you, and counsel you. Bond around your inexperience with experience. Hire people who are experts. Seek advice from people who’ve done what you’re trying to do. Read every business book you can get your hands on. Never think you’ve learned it all and never stop learning.