Unsung heroes of enterprise & entrepreneurship

Posted on April 23, 2013 by Peter Harrington

iStock_000005877478XSmallOver the past 2 years, 49 articles connecting hitchhiking and entrepreneurship have been posted on this Blog.

Subjects and angles have been wide as well as varied. But no single post has ever focused on the people who helped make my journey possible. Yet, if it had not been for the kindness of spirit, generosity of time and ability to help me reach my next destination, I would not have travelled far. And then I would have given up…

In these challenging economic times vast numbers of people (be they mentors, lawyers, business advisors, coaches, teachers, accountants etc.) work tirelessly and often for free to help entrepreneurs start and continue their journey. But critical support work often goes unnoticed (or hidden altogether) because it’s become the norm or simply happens away from public gaze. As a result, people are not necessarily recognised for the great work they do.

Let’s recognise the unsung heroes

So with your help let’s celebrate the unsung heroes of enterprise and entrepreneurship. Let’s list 50 (or possibly more!) deserving people on this site so we can better recognise those who are making a real difference and helping others on their journey.

In no more than 50 words, tell me about the hero (or heroes) you know. Send details (including their name* and why they deserve the recognition) to peter@simventure.co.uk

Everything will be referenced below.

50 Unsung Heroes 

1. Matthew Draycott - “Matthew cares passionately about people and how they grow through life experiences to reach their potential. Challenged but undaunted by the legacy paradigms of hierarchical and bureaucratic systems he chooses to use his considerable expert knowledge and belief to continue to redesign how education is delivered, from the outside in!” 

2. “One of the attributes entrepreneurship students most often cite as being influential in their studies is the enthusiasm of their tutor or tutors. But who enthuses these enthusiastic tutors? Dr Colin Jones (University of Tasmania), that’s who.”

3. ”The road of the entrepreneurship educator can be a lonely one. Sometimes it is difficult to gain support and legitimacy for our practice. One man, Professor Harry Matlay, has assisted countless entrepreneurship educators gain just recognition of their practice through supporting their scholarship as editor of various academic journals.”

4. “Charles Cracknell works tirelessly supporting young people in Hull and the East Riding with their business ideas.  Enterprising, innovative and passionate Charles has supported and helped established business start ups, city wide initiatives, events and an enterprise culture. An inspiration to us all to keep going and changing lives through enterprise.”

5. “There is only one policy guru in enterprise education and its Matt Smith, he has infiltrated every political party, got to know every policy officer in the sector with the single aim of ensuring they know more about student led entrepreneurship.”

6. Stephen Logan’s commitment to help young people within the school sector to set up in business is second to none at his school and outside he is committed to help them and signpost them well outside work hours; more important it’s all about the kids for him not how it looks on his CV, as impressive it is.

7. Mike Chitty is a true unsung hero of the enterprise movement who works tirelessly to empower people to reach their full potential. He is an enormously gifted and wise mentor who shares his knowledge and experience freely… and patiently! But most of all he is a critical voice who always challenges us to question and develop our practice.

8. Alan Donegan established the @PopUpBusiness school and has shown how practical, informative and fun sharing and cultivating new business ideas can be. He is a great speaker, engages the audience from the outset and has a really positive and infectious approach to his work and life.

 

*If you are not sure whether your nominee wants to be publicly recognised, please check with them first before submitting details!

 

 

 

 

Posted in Entrepreneurship in Action, Human Behaviour in Business, Teaching Entrepreneurship & Business | Tagged | 3 Comments

Fresh energy turns us on

Posted on December 2, 2012 by Peter Harrington

Imagine if energy suddenly got cheaper. Not a bit cheaper but a lot cheaper.

High household electricity and gas bills would be a thing of the past. Travel would be more affordable. As importantly, the price of food and goods would fall (in line with shrinking distribution costs) and public services would run far more efficiently. I could go on…

You might think this recession busting notion to be distorted fantasy but according to Peter Diamandis this thinking is very real. More significantly, he says change is likely to happen quicker than we expect. So how does it work?

As part of his TED presentation Peter argues convincingly that despite calamitous media headlines we have experienced tremendous progress over the last century; in fact progress is accelerating. Technology advances mean childhood mortality is down by a factor of 10; we now live twice as long; and the cost of food, electricity, transportation and communication has all fallen – some of this a thousand fold.

Accessing abundance

Energy quickly becomes the focus of Peter’s talk and the fact our earth is “bathed in 5,000 times more energy than we use in a year”.  Electrolysis he reasons made aluminium abundantly accessible. Entrepreneurial technologists just need to understand how to make solar power abundantly available – when this happens, energy will become far cheaper.

Of course, sceptics will argue that accessing large-scale solar power won’t happen for a long time and/or is only part of the answer to global challenges (for more on this thinking I recommend Paul Gilding’s work and especially his talk ‘The Earth is Full‘). However, if you’ve read Nassim Nicolas Taleb’s powerful book ‘The Black Swan‘ you’ll know that what is perceived as highly improbable is much closer than we think.

People inspire

Whatever your view you can’t help but be inspired by the  people like Peter Diamandis and Paul Gilding. Since they make best use of their own human resource, they use their talents highly efficiently and effectively. As a consequence, they have become a powerful source of energy themselves and there are others like them – often closer than we think.

Earlier this autumn I returned to the World Entrepreneurship Forum in Lyon where I met many impressive people who lead fulfilled and inspiring lives. Present was the billionaire entrepreneur Mo Ibrahim whose Foundation annually rewards democratically elected African leaders (who excel at their job) with $5 million.

Also in attendance was Melissa Kushner. She believes that every child in the world should have the opportunity to achieve. Losing her father at a young age, Melissa committed herself to ensuring parental death does not determine a child’s fate.

Instead of just working in her native New York Melissa founded ‘goods for good‘ which is now empowering community centres to care for over 67,000 orphans and children in Malawi. In six years this social enterprise has become remarkably proficient at building businesses and distributing unsold and unwanted Western goods. Not bad for someone just turned 30.

The Firelighters

Melissa is solar power made flesh. Great innovators like her are a source of boundless energy, animating and inspiring all who come into contact with them. The best teachers, too, serve as lightning rods. They crackle with ideas, galvanise their students and generate creativity from thin air.

And in 2010 in Edinburgh I had the good fortune to attend a talk by one such individual. Clearly his reputation went before him because it was standing room only for people like me squeezed shoulder to shoulder at the back.

The power of Professor Alistair Fee’s stories that morning about innovation and entrepreneurial learning are still vivid in my memory. His enthusiasm, imagination and ideas had me yearning to return to class; but how many people are running ‘James Bond’ themed courses so students can experience what it’s like not to fear failure? And who else is prepared to run classes from the city’s tallest building and equip students with binoculars so they can search for opportunities?

Intrigued and inspired by Alistair’s fresh energy I’ve deliberately stayed in touch with him and most recently learnt about his innovation think tank work; or rather the ‘Cornflower Club’ which he describes as follows:

Transformational energy

“I wanted to find an unusual café  that closed at 5.30pm so I could hire it for the rest of the evening. It was a café with strange tables and chairs.  Walls hung with art. Marlyn Monroe, Elvis, Van Gogh, Vallely, Vermeer, et  al. Red abstract brilliance, heavy gold frames, industrial lighting. I am  talking; the most unlikely café you will ever find.

“This  group , could have been called the Regional Development Innovation Group (RDIG). We chose the name  Cornflower Club.  A cornflower is blue, strong and tenacious. We deliberately accelerated the flow of  thinking by challenging our assumptions of what such a group might look like, sound like or even taste like.

“Usual think tanks taste of coffee and biscuits, look like  grey walls and sound like flip charts turning. Usual think thanks can murder creativity – ‘Consultant Smith, with the PowerPoint in the Function Room’!”

Even Alistair’s choice of food was consistent with the theme of getting people to make the most of the minds. From ‘Asparagus Tips’ (we all need to learn) and scones baked with shredded frogs legs (for leaping over  competitors) through to ‘Rhubard Parfait’ (sharp, fresh and exhilarating) the menu like all the other ‘ingredients’ had participants hungry for more of the same so they could continue to make best use of their new-found energy.

Like hitchhiking, Alistair believes we must be determined to explore in more directions,  for longer, and accept that what we know is insufficient for tomorrow’s travails. But in daring to try new things, we discover unbelievable truths that bring about useful, sustainable change.

The world needs fresh energy because we can’t continue to rely on current thinking nor existing oil and gas resources. Mass solar energy may only be a possibility, but people like you and me can definitely make a real difference if we think how best to use our time and energy whilst we are here on this planet.

Key Learning Points: The way we use energy is likely to change and ultimately could have huge impact on how we live our lives. But don’t just wait for this to happen; make the most of your own energy so you can do something special for others.  

 

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The serious business of having a laugh

Posted on October 22, 2012 by Peter Harrington

As our plane readied for take off to Cape Town, the stewardess commenced the well rehearsed health and safety briefing. Except the ordinary was about to become extraordinary.

“In the event of the cabin losing air pressure, oxygen masks will drop down from above your heads.” Her words were calm. She paused and looked to see who was paying attention.

“And when you’ve stopped screaming,” she continued without so much as a smirk, “put on your masks. And if you are travelling with a child, put on your own mask first. If you have children, pick a favourite!” 

We all looked at each other. Strangers, once remote and silent, shared smiles and laughed. Several started to chat. More followed from the hostess.

“…And this is a non smoking flight. All toilets are fitted with smoke detectors as well as cameras for the captain’s personal pleasure. If we catch you smoking we’ll assume you’re on fire and extinguish you…”

Whilst passenger bellies pushed belts to their limits, the crew remained dead-pan, which only added to the hilarity. Meanwhile the plane left the ground and we were on our way.

Why Humour Connects

It’s an accepted fact that humour is good for us. “When laughter is shared it binds people together and increases happiness and intimacy” says the on-line health resource ‘Helpguide’. So to keep your interest, there’s more on the ‘Flying Circus’ story later; but before we land there, let’s consider why humour is an effective means of communication.

All research shows that emotions drive behaviour. Critically, ‘happiness’ and ‘surprise’ are two of the six primary emotions. In other words, used well, humour reaches right through to the core of our mind and typically receives an immediate and positive reaction.

Books about emotional intelligence appeared on bookshelves in the nineties (most notably the work from Daniel Goleman). And Goleman’s thinking was undoubtedly a catalyst for scientists and researchers to investigate more fully how the brain manages feelings.

Stanford University psychology expert, Dr Phillipe Goldin, specialises in the complex issue of emotional neuroscience. In this presentation he demonstrates the various functions emotions perform and how and why they help bring richness to our experience of life (and thus explains the theory underpinning the value of the humour used on the plane).

Goldin’s detailed presentation also explains why unlike rational thought, we are not in charge of our emotions (if you want a succinct explanation, watch Sandy Newbigging’s short film which uses an iceberg analogy to explain the principle). Conscious behaviour, Newbigging says, is what we think about, know and control. But a much larger element (unconscious) sits beneath the surface. This part is very powerful and drives emotional behaviour and responses such as laughter. People and situations that trigger laughter link with our emotional unconscious mind and thus make deeper connections.

Stand Up means Stand Out

Using this knowledge it’s easy to see why good stand up comedians connect so well with people. And like hitchhikers and entrepreneurs, they’re part of a high-wire society that’s prepared to go it alone and risk getting it wrong publicly. But by doing their own thing they also stand out, learn quickly and allow themselves the opportunity to achieve much more.

Great comedians like Eddie Izzard and Stewart Francis (“I’ll tell you who gives kids a bad name – Posh & Becks”) can also teach entrepreneurs much about innovation, lateral thinking and great presentation skills. On this note, I highly recommend the article “What Comedians can Teach About Public Speaking” by the famous ‘Toilet Paper Entrepreneur’ Mike Michalowicz.

Using Humour with Business

If you’re looking to make better connections in business, there is a strong argument for the use of comedy. However, be aware that humour is much more than just the delivery of a punchline as the UK’s Chief Secretary to the Treasury and Liberal Democrat MP, Danny Alexander, proved at his recent party conference. Unlike London Mayor Boris Johnson, who had delegates at the Conservative Conference laughing uncontrollably about chocolate Hobnobs & more, the eternal straight man Danny got little more than a mild ‘titter’ when trying to tell a joke.

Good humour has to be thought through and delivered appropriately so that it cuts right through to the audience’s unconscious mind. Planning, preparation as well as talent is required and this brilliant short promotional film aimed at budding entrepreneurs, shows how an original idea mixed with great scripting, powerful imagery and timing hits the spot.

The Power of being Different

As the youngentrepreneur.com film demonstrates so well, crafted humour creates difference and allows a distinctive and well positioned message to be remembered. It stands to reason that effective viral marketing campaigns such as Trunk Monkey are often driven by humour.

The South African airline that flew me to Cape Town used humour consistently to be distinctly different. For example, unlike all their competitors their planes didn’t carry the airline name on the fuselage. Instead, one had two big green arrows pointing upwards alongside the words ‘This Way Up’. Another had all sorts of words all over the fuselage including the phrase ‘The Go Go Juice’ with an arrow pointing towards the fuel cap.

Long before the plane landed at Cape Town I had made my mind up to fly with the airline again. I’ve since reviewed the company’s website and watched a stack of amateur films produced by fellow passengers keen to capture the unique health and safety briefing and more. This flood of free promotion is good business and if you want to support the entrepreneurial aviation spirit and have some fun flying too, I recommend you try Kulula.

Key Learning Points: Humour connects people in a powerful & lasting way; it also provides opportunities to present ourselves or messages differently. However, careful thought & consistent execution is required for humour to really resonate with audiences.

 

 

 

 

 

 

Posted in Entrepreneurship in Action, Human Behaviour in Business, Teaching Entrepreneurship & Business | Tagged | 3 Comments

Look after the pounds & the millions will look after themselves

Posted on August 31, 2012 by Peter Harrington

Salespeople regularly offered me lifts back in the eighties. It’s fair to say I enjoyed the banter and their cars went faster too.

London bound, one bright weekday morning, I was hitching a lift onto the M1 when a passing car jammed on its brakes and pulled over ahead of me onto the empty slip road. The smart-suited driver was going my way. Within 2 minutes we were doing 90+ in the outside lane of the motorway.

Achilles heel

Proud of his shiny motor car, my twenty something companion also loved his job in sales. I forget what he sold, but he was quick to share his salary status – £20k plus perks. In 1984, that was moving towards ‘loadsamoney’.

Being 18 and unemployed I distinctly remember being impressed by my flash friend, but it was his brutal honesty that really appealed. Having spent 15 minutes bigging himself up, he then declared in a slightly depressed tone that he was practically broke. He was good at earning money. He was even better at spending the stuff.

Put yourself last

Entrepreneurs who excel at spending money on themselves typically don’t last long in the job. Fast cars, designer labels and posh restaurants undoubtedly make us feel better; but they are all unnecessary costs especially in the early days of running a business.

Richard Branson may now spend every sixth week on his own private island in the Caribbean, but it certainly wasn’t always that way. For several years he lived on an old barge and drove a car that regularly ran out of petrol, such was his desire to keep the money in the business where it was really needed.

It may feel counter intuitive, especially if you’re employing staff, but the secret in the early days is to put yourself last when it comes to spending money. If you look after the goose, the golden eggs stand a much better chance.

Does money motivate?

Stacks of studies have been compiled that examine the question ‘What motivates entrepreneurs?’ If this is an area of particular interest you’ll find lots of scholarly research right here.

But if detailed analysis doesn’t float your boat and you want some quick definitive answers from practising entrepreneurs, then the following short film may appeal. Produced by ‘Tech Cocktail’ the results clearly suggest that successful entrepreneurs are motivated by such things as people, ideas, following dreams, making a difference, creativity and achievement. In the film you’ll find that the ‘money’ word is hardly mentioned.

So when it comes to money, successful entrepreneurs it seems are patient, unselfish and self-disciplined. Moreover, they are motivated by deeper needs and are able to defer reward rather than seek instant gratification (a subject worthy of its own HHGE blog). This attitude of mind makes businesses more sustainable over the long term and ultimately, as a bi-product, also makes the entrepreneur far richer.

Key Learning Points: Careful cost management is essential for any start-up business. Entrepreneurs who are prudent with their own spending in the early days and are motivated by deeper needs, are more likely to be financially successful in the long-term.

 

 

 

 

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Give your ambition the greatest chance of success

Posted on August 20, 2012 by Peter Harrington

Reading should never be a guilty pleasure. But it can get that way if work pressures really grip and/or family demands mean those precious grains of free time are lost before sleep.

Like holidays, books provide an escape. And whilst the odd trashy novel smuggled its way into my luggage this summer, the two most valued literary companions tackled completely different subjects.

Patterns of Innovation

Whether you want to start a new enterprise, develop a product or work to resolve a global problem, a different kind of thinking is required to give your ambition the greatest chance of success.

Forward focus is important. However, in this highly connected and complex world sustainable innovation is most likely when the creative mind is open to understanding and engaging the deeper and broader issues.

Being a master of quick-fix failure I knew Steven Johnson’s book ‘Where good ideas come from – The Seven Patterns of Innovation’ (see him talk on TED) would be an invaluable holiday read. All 246 pages were devoured in 4 days.

The Adjacent Possible

From Darwin’s Paradox to Willis Carrier’s invention for air conditioning, Johnson cleverly reveals the generative order of forces that underpin sustainable innovation. Central to his evolutionary science-based thesis is the term ‘Adjacent Possible’ and the fact that all new innovation builds and scaffolds on the past much like a coral reef or burgeoning fractal pattern.

The Burgeoning Fractal

Throughout, Johnson also refers to the Internet (and its founder Tim Berners-Lee) and highlights how the explosion of web innovation is built on one man’s original desire for greater connectivity and sharing of ideas.

Adapt

To accompany Johnson’s masterpiece I also re-read ‘Adapt – Why Success always Starts with Failure’ by the Economist Tim Harford. I first referred to this work in the Blog piece ‘Start now and Value the Journey’ and I can’t recommend his writing highly enough especially if you are seeking direction for a new project.

Like Johnson, Harford uses rich and varied source material to support his argument (from military campaigns to third world aid). The thrust of the book is the value of ‘trial and error’ as a way of getting things done; as opposed to the norm – top-down central governance that operates through a rigid hierarchy.

Woven expertly into the text is the work of a Russian engineer, Peter Palchinsky, and the 3 principles he adopted for getting things done and solving problems:

  1. Seek out new ideas and try new things
  2. When trying something new, do it on a scale where failure is survivable
  3. Seek out feedback & learn from your mistakes as you go along

Ultimately, Harford’s book turns to the reader and uses a Billy Joel inspired musical to demonstrate why people struggle with failure (3rd principle) and why we don’t seek feedback and thus learn from our mistakes and adapt. Humans, he rightly argues, have difficulty holding apparently contradictory thoughts (cognitive dissonance) which means we deny failure has happened and thus don’t learn from the experience. The trick is always to confront mistakes (however difficult it may seem) and extract the lessons.

Step Away

Finally, an underpinning message within both texts is that innovation and success through trial and error requires the creative mind to regularly abandon its absolute focus. New environments are needed to stimulate and nurture thoughts and hunches over time.

Hobbies, time spent chatting with friends and colleagues as well as walks with others are all encouraged. Interestingly, Steve Jobs was a big fan of walking and Jon Steele (Perfect Pitch) highly recommends getting away from the subject at hand when thinking creatively.

Whatever you choose to do, you will probably find that the scale of your achievable ambition is proportional to the networks of people you create and the interests and hobbies you nurture. Likewise, the scale of your achievable ambition is likely to be proportional to the time you are able to put aside for reading.

Key Learning Points: Innovation has greatest chance of success when thinking is based on sound structures; yet the mind must also be open to hard work, failure and a desire to understand the connected issues. Reading is essential.    


 

 

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How to find new ideas to start & grow a business

Posted on July 1, 2012 by Peter Harrington

If you read last month’s ‘How to Profit from the Alternative Rhythms of Time‘, you’ll be aware I recommended the ‘Springwise‘ website. It’s the place to get your daily fix of innovative and entrepreneurial ideas.

It’s a brilliant site. You can sign up to receive daily news, browse thousands of new ideas (all carefully split into distinct sectors) and even submit your own proposal as a business start-up. Just a few hours of research should pay real dividends and will also connect you with a new community of like-minded people.

The power of Social Media

Like many new finds, I discovered Springwise through Twitter. This now famous social media channel is a rich source of new ideas and information. For me, Twitter is great for promotion, but it’s even better for discovering things because you quickly find yourself in places you never even knew existed.

For the record, other websites providing ideas, inspiration and advice include smarta.com and coolbusinessideas.com. One of the things I liked about Smarta is the advice on the Home page which emphasises the need to be market focused when starting a new business.

Why didn’t I think of that?

When reviewing the recommended ‘idea sources’ don’t be put off by the apparent brilliance of others or believe that you don’t have the skills to think in such an innovative way.

By the time any of us leave full time education, we’ve typically grown accustomed to a linear/vertical way of thinking. This is because we learn subjects in silos. As such, thinking across subjects (horizontal), making new connections and seeing new ideas does not necessarily come easy. However, things can improve if this thinking flaw is understood and you’re prepared to look for inspiration or undertake basic research in less familiar places.

Apple founder Steve Jobs is perhaps one of the greatest ‘idea minds’ that has ever lived. Whilst he dropped out of Reed College as a teenager, he hung around the campus in Portland. He then chose to drop into lessons that appealed to him and his way of thinking. In the highly readable official biography and address to Stanford University he talks about this part of his life and in particular his attendance at a Calligraphy course – just because it fascinated him. Years later, what he learnt about Calligraphy and fonts became a cornerstone of the Apple Mac revolution.

By looking around and seeing links between subjects, Steve Jobs saw opportunities, new ideas and thus gaps in the market. Jobs looked for the ‘intersection’ of subjects. For example, when PCs were mass produced in ugly metal boxes he recognised the need for something different. He saw the opportunity to intertwine technology and the liberal arts and beautiful computers resulted. Later, with iTunes, he fused music with technology.

Ideas through people

Meeting and networking with people is often a great way to source/nurture new ideas. A group of individuals (with different talents) that works well together is able to look at an issue from more than one perspective and can then harvest and refine ideas more quickly. It’s of little surprise that many new team-based businesses are seeded in university or college life.

In fact education is like hitchhiking in that it provides an opportunity to meet new people from all kinds of different backgrounds. For me, travelling for over 10 years as a hitchhiker made it possible to learn from so many different perspectives. Critically, it helped me to understand that my take on an issue or way of seeing the world was often only shared by a minority.

Tip! Just because you might think an idea is good, share and test it with others before you put too much energy and time into it.

The whole subject of how and where ideas are developed will continue to fascinate me. Only last week a lecturer from the University of Bristol recommended that I buy the book ‘Where good ideas come from‘ by Steven Johnson. So I did.

Whilst I’ve not yet finished it yet, it’s a great read because it examines the intersection of subjects and explores how environments influence innovation. Doubtless I will review it in full soon on this blog, but if you want a taste of what Stephen is saying, have a look at him explaining his thinking on this TED film.

Key Learning Points: Use freely available sources to nurture thinking and develop new ideas. Explore different perspectives, use lateral thinking and meet people. Look for the intersection between subjects for real business opportunities.    

Posted in Entrepreneurship in Action, How to be more Self-Employable/Employable | Tagged , , , | 2 Comments

How to profit from the alternative rhythms of time

Posted on May 28, 2012 by Peter Harrington

Our planet hosts 4 billion people who scrape by on less than $2 a day.

Yet, perverse as it may sound, twenty four hours in a day is just not enough time for many people who work in industrialised economies. Lack of time rather than lack of money is an increasingly common complaint amongst the 100,000 million people who earn $20,000 or more annually.

The phrase ‘time poor’ has become familiar and topical in western society. To emphasise its relevance, the film ‘In Time’ was released in 2011. In the movie, which stars Justin Timberlake, time replaces money as the unit of currency. Run out of time and you die.

Doug Richards offers £1 million

Whilst thought provoking, the film also reminded me of a story told by ex Dragon ‘Doug Richards’ at a seminar I recently attended. Mr Richards explained how he happily agreed to give someone a million pounds; but on one condition! The recipient would give Doug 10 years of his life. The Merchant of Venice is alive and well.

But seriously, all these points demonstrate that time is precious and indicators suggest its value, like gold, will continue to rise. Therefore we should use time wisely. So how is this achieved especially if you want to start and grow a business?

Entrepreneurial Action

There’s a saying, ‘If you want something done, ask a busy person’. For me, there’s truth here. Entrepreneurs are busy people with little spare time, yet somehow they get much done.

On his Blog ‘Entrepreneurs-Journey.com‘, Aziz Ali offers productivity tips for the time-poor entrepreneur. The article talks about prioritising, using lists and arranging thoughts on folded paper. Mr Ali’s points are not groundbreaking but they make sense; however, you need to be very disciplined and organised to profit from his reasoning and I’m not sure that many entrepreneurs necessarily ‘think’ this way.

Entrepreneurial Thinking

One of the joys of self-employment is the freedom of choice. Unlike other working worlds, people don’t tell you what to do and when to do it. This luxury has very important implications for time use. For example, I travel to London a lot but unlike most commuters I don’t have to be at a desk by 9am. Therefore the train I typically catch leaves Yorkshire just after 7.30am and arrives before 10am. My carriage is near empty when I board and thus the coffee (trolley service) is sipped & slurped  with a smile.  I forget how many times my wireless connected laptop has worked for the entire journey, on a table all to myself.

And when London bound last month, the ensuing Tube journey to Aldgate was slick and also void of people. To top it all, it wasn’t difficult getting the best seat, much needed good coffee and free Wi-Fi in the capital’s highly recommended Alchemist Bar and Restaurant on Houndsditch.

Fittingly, it was whilst sitting in the peace of the Alchemist Bar that I first recognised the patterns and started to mix together the elements that formed this article.

It’s a Cosine!

In a recent HHGE article I wrote about ‘The Physics of Entrepreneurship’ and specifically the value and relevance of the formula: Momentum = Mass * Velocity. Sat in that bar I started to sense that entrepreneurship might have another link; this time with mathematics. And later that same day when sharing ideas, my friend Andre Mostert immediately latched onto the synergies with the Sine and Cosine graphs.

The diagram below shows the graph of the Sine and Cosine functions. The accompanying text explains their relevance.

Andre highlighted that mainstream life (rush hours etc.) is represented by the red Sine curve which is the very popular yet hugely congested ‘rat-race’ line. This video shows exactly why I seek to avoid it.

The blue Cosine curve exists as an alternative rhythm in a slightly later time-space. Free from the shackles of convention, the entrepreneur is able to take advantage and ‘surf this wave’ much like I did (and do) on my London trips. As a result, time is used in a much more productive and enjoyable manner.

Hitchhiking can also be looked at as an alternative rhythm. Crowded bus stops and train stations are mainstream functions; the hitchhiker travels independently along a very different yet largely parallel route.

Profiting from Time

The luxury of choice actually empowers people who run businesses to make the most of their time. This freedom means there is time to think, learn and discover better ways to do stuff.

Here are just 5 of the very best things I have discovered and learnt from as a result of having more time:

  1. The TED website – Expert speakers & brilliant presentations. All Free!
  2. Springwise – Get your daily fix of highly innovative and entrepreneurial ideas.
  3. Five people & one Guitar – phenomenal teamwork & uplifting entertainment
  4. Go Self Employed – Be inspired by leading author Steve Strauss
  5. Twig – Entrepreneurs create free Science Films to educate & inspire anyone

Having more time meant I was also fortunate enough to attend the World Entrepreneurship Forum which took place in Singapore in 2011. At the event I met many inspirational people with vast experience and a wide variety of perspectives, but who shared a common desire are to use entrepreneurship as a driver to solve global problems. This year the same event is in Lyon at the end of October and my ticket is already booked.

We may feel we are increasingly short of time but with careful thought we can solve many of these problems for ourselves as well as others. What is far more significant is how we explain and find answers to the fact that 4 billion people live on less than $2 a day.

As ever, feedback and thought about the points raised in this article are very much welcomed. How does the socially conscious entrepreneur use his/her time to best effect?

Key Learning Points: Use smart thinking to avoid the congested mainstream and make the most of your time. Freedom to think and being able to continually learn ultimately gives you time to help solve much bigger problems.

Posted in Entrepreneurship in Action, Human Behaviour in Business, Teaching Entrepreneurship & Business | Tagged , , , , | 2 Comments

Why is the most important entrepreneurial skill seldom taught?

Posted on May 6, 2012 by Peter Harrington

Globally, little evidence exists that business start-up and survival rates are improving. In fact, UK data released by Experian (November 2011) showed a record 70% of start-up businesses are failing within 36 months of being launched.

Experts cite many reasons for business failure. But for me, a key factor underpinning early closure is the business owners’ inability to sell effectively and ethically and thus bring sufficient cash into the business on a sustainable basis. Why does this happen and what needs to be done to remedy the situation?

Salespeople give ‘Sales’ a bad name

Do you like people selling to you at your front door, over the phone or in the street? For that matter, do you enjoy being sold to in a retail store?

I believe most of us don’t like being sold to because so many people in sales aren’t that good at selling and/or are untrustworthy. People aren’t good at selling because they have either never been trained, or the limited/unethical training they did receive was on the scale that starts with ‘Crap’ and ends at ‘Criminal’. For reference, between 1993 and 1997, I was part of a small team that retrained over 3,000 sales professionals. Over 80% of the people I worked with (over, 1,000) were poor at their job.

As a consequence, selling has got itself a bad name. In my opinion, this has led to the subject being shunned both by people who need to learn the real skills of how to build long-term business relationships (small business owners) as well as teaching/training institutions.

Entrepreneurship in Universities

Earlier this year I was asked to speak at a HEEG Conference in Kingston. Towards the end of the day one of the delegates asked an open question – “How much time was devoted to teaching entrepreneurial students how to sell?” Not one of the 25+ universities represented that day ran courses to teach sales.

Curious, but unsurprised by this finding, I went to the interweb to seek out any university sales course. Portsmouth University does run an MA in ‘Sales Management’ and the word ‘Sales’ does get the occasional mention in the glut of marketing studies available.  I thought that was just about it…

Then I discovered the world famous and highly reputed department store ‘Harrods’ had teamed up with Anglia Ruskin University to provide a highly innovative training programme that leads to an Honours Degree in Sales. People who complete the course master the ‘Art of Selling’. This short video provides more detail about the potential of this powerful learning experience.

Is Anglia Ruskin on the right track?

Being a competent salesperson takes understanding, repeated practice as well as hard work. Just like any marketing degree, there is no quick success fix. Best practice selling has moved a long way from ‘technique driven’ hard sell methods that have us all running for the hills. Best practice is much more about understanding human behaviour and working with customers to ensure they get what they need.

By providing opportunities for repeated practice (Harrods) and backing it up with sound theory, Anglia Ruskin is in my opinion definitely taking the appropriate steps to prepare students for employment. I don’t know the exact methods used for teaching and training, but I would be surprised if video role plays and behavioural science theory are not key components of the course.

In my opinion, education and training institutions should follow Anglia Ruskin’s example. By recognising the depth and importance of the subject (and the fact that sales should not be marketing’s impoverished relation) budding entrepreneurs especially will be provided with a critical skill. And if this happens more students will be attracted to pay to learn about ‘how to sell’ because they will value the subject’s relevance in terms of future employment ambitions.

Entrepreneurs encounter sales situations daily. Most people are not at all prepared for the opportunities they face. However, if business owners have been trained to sell effectively and know how to make the buying experience enjoyable for the customer, their business will bring in the cash and thus be more likely to survive and thrive. But if nothing changes, education institutions are set to miss out and the start-up failure rate is unlikely to change.

Your thoughts and feedback on this article are very welcome.

Key Learning Points: Running a successful business means knowing how to sell effectively. To equip budding entrepreneurs properly, educational institutions need to place much more emphasis on sales training and specifically the art of selling. 

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Entrepreneurship & Physics: Slowing down speeds you up

Posted on April 19, 2012 by Peter Harrington

In my earliest hitchhiking days, any car that stopped was an opportunity to travel. The excitement of the moment put me in the car; unfortunately, it also sometimes left my brain on the kerbside.

On such occasions I would gradually come to realise I was headed the wrong way or that my new companion would be dropping me at a point where it would be very difficult to get another lift.

Experience was a great teacher. Thankfully I became adept at asking the right questions before accepting lift offers. It did feel odd at first, turning down a free offer to travel, but I had learnt the hard way that slowing down would in fact, speed me up.

Entrepreneurial Parallels

The emotional excitement attached to hitching a lift is not dissimilar to that of being on the cusp of starting a business. The desire to ‘want to get on’ can be so overwhelming that nothing gets in the way of launching the new venture. I’ve been there myself several times.

It’s as if all listening to rational advice stops. An inner self belief and independent ‘spirit’ is taken over by the power of anticipation. Doing something, in fact anything is the key. Patience is for wimps and/or hospitals.

No one doubts that entrepreneurs need plenty of energy, focus and a passionate desire to make something happen. But speed without thought produces the kind of results I experienced as a young hitchhiker.

Time for some deeper thinking…

I’m no Einstein, but…

Whilst I once destroyed a fence (aged 12) with homemade fireworks (Potassium Permanganate & Glycerine) and somehow passed a Physics ‘O’ Level in 1982, I’m no Einstein. However, from school, I do remember the following equation:

Momentum = Mass * Velocity

For entrepreneurs, I believe this formula to be extremely important. Momentum in my opinion is the force required to achieve business success and the stuff is required in abundance particularly in the early years of any new venture (akin to getting a rocket off the ground). To demonstrate the relevance of the equation in an entrepreneurial context, let’s apply the formula to a ‘new business idea’.

Momentum is key to New Ventures

For any new business the ‘Mass’ represents the quality of the idea. ‘Velocity’ can be defined as the speed in which the idea develops and becomes a business – in a given direction.

To create the necessary momentum to survive the early years, it is imperative that the entrepreneur takes time to work hard on the idea and shape it through research, skill and intelligent thinking. This work increases the quality of the idea and thus the overall value of the ‘Mass’. Importantly, work on the idea also informs the direction the business takes.

If the entrepreneur is then able to work at a reasonable velocity (it doesn’t have to be ‘breakneck’ speed) the business develops a high level of critical momentum and is thus far more likely to survive.

By contrast, if an entrepreneur fails to work on the idea (and just focuses on moving quickly) the business has very low mass but high speed. As a result of the equation (Momentum = Mass * Velocity) the business ultimately has insufficient force (energy) to survive. In practice, the early days for this type of venture can look bright, but unlike my fence-destroying fireworks, things fizzle out quickly.

Key Learning Points:  Failure is often the result of too much speed. Being patient as well as prepared to think through, research and test an idea fully is a strategy that is far more likely to lead to long-term success. 

 

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How teenage love can fire the entrepreneurial spirit

Posted on March 5, 2012 by Peter Harrington

To describe one of my first loves as a ‘big bag’ might be a little misleading, but it is quite true.

Like any other 16 year old, relationships were  important to me. I wasn’t necessarily looking for love, but 30 years later the hairs on my neck still stand on end when I think of that memorable first encounter. It was like this…

Nottingham

I’m in the city centre. It’s a busy autumn Saturday afternoon and the light is fading. Wandering through the last shop before catching the Number 72 bus back home, my gaze suddenly fell on this most beautiful of creations. Emotion swept through me and all logical reasoning went to pieces. I knew we were destined to be together and nothing was going to get in my way.

Unfortunately, the shop assistant (no, he wasn’t the apple of my eye) prevented the relationship from going any further. He told me that if I wanted to sweep my new love, literally off the floor from where it sat, I would have to part with £39.95. For in 1982, this was the price of a brand new Karrimor Jaguar 4 KS100 rucksack.

Passsion

Everything about its style and appearance was stunning. Electric blue in colour, the imperious size and rounded shape of the bag oozed confidence and authority.

Gone was the traditional clunky metal frame; built into this revolutionary leader of a pack was an internal figure-hugging system that redefined comfort. Attention to design detail was everywhere; even the thickly padded hip belt included a quick release buckle.  And of course, according to it’s large laminated label, Karrimor’s space age ‘KS100′ material was ’100% waterproof’. In truth, the fabric was so impenetrable, it would have stopped bullets.

Steve Jobs

I was able to save and make enough money to buy the Jag rucksack 6 weeks later. It then became my hitchhiking companion for over 12 years and travelled thousands of miles with me. But there is a much more important point  to this story for marketeers and entrepreneurs.

Walt Isaacson’s brilliant biography of Steve Jobs, describes very succinctly how the founder of Apple learnt how to market products successfully. On page 78, the book summarises the three principles Jobs learnt as a young man, to apply to all future products. The three points are:

Focus | Empathy | Impute

Being focused is a very important business mindset. Understanding your customer is vital in order to be able to supply goods that people need and want. The word ‘impute’ is all about the fact that customers do judge a book by its cover and make decisions on what they see. If the whole message being received is liked and consistent, the customer becomes compelled to purchase very quickly.

Apple now has a reported 150 billion dollars in its bank account. The iPad and iPhone are not cheap but just like my experience with a rucksack, people all over the world have fallen in love with the products because of their design, performance and image. Later on in Isaacson’s book he describes the lengths that Jobs went to in order to make Apple’s hardware and software perfect.

For Steve Jobs, 99.9% just wasn’t good enough. For reference, his hunger and desire to make the very most of his visionary talents is best revealed in this short TED film entitled ‘How to live before you die’.

As entrepreneurs we can learn so much from the Apple revolution and Steve Jobs’ passion for innovation and design perfection. If we think about products or services that we love to purchase and then apply the principles of craftsmanship to our own work, why can’t we make a dent in the universe too?

Key Learning Points: Long term business success is built on the creation of services and products that fully resonate with the customer. Being ‘average’ or even ‘good’ is not enough. Pay attention to every detail and seek to be different by being brilliant.

 

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Don’t wait! Make it happen

Posted on February 2, 2012 by Peter Harrington

Escaping the clutches of suburban Northampton by hitch hiking to west London might not be everyone’s idea of fun on a late Friday afternoon, but I was really up for it.

Being 19, I was completely confident of making the trip and turning up in time for my grandparent’s Golden Wedding celebrations. Even though it was 1985, I can vividly remember standing by the roadside in the spring sunshine and being excited by the possibility of what lay ahead. The idea of failure just didn’t exist. In my mind I was going to be in Ealing before sunset and I was going to enjoy the journey too*.

Four Years Later

Before you get concerned, the subtitle above isn’t a reference to the duration of the London journey.

Moreover, in 1989 I had just set up my first business in York and was finding it extremely difficult to attract any real demand for my fledgling research and marketing agency in a recession economy. But there was no way I was going to give up, even though the relentless rejection was tough. That said, without work I did find myself with time on my hands at 10am most mornings.

To help me through the problem a close friend urged me to ‘Read, read, read…’ otherwise he said, my mind would become ‘like a stagnant pond’. Having recently left university I can’t say I was desperate to bury myself in another text book, but I was discovering very quickly that I didn’t know as much about business as I thought.

Inspiration

Sir John Harvey-Jones was a maverick thinker, Britain’s first ‘reality TV entrepreneur’ (BBC Troubleshooter) and former chairman of industry giant ICI. In 1988, his first book ‘Making it Happen’ was published to high acclaim.

Based on the title alone I decided here was someone whose experience and approach t0 business might help me find a way through my own troubles. So I bought his book.

Very quickly I found myself liking the way he thought and the way he worked with people. His approach to business was unstuffy, pragmatic and often contrary to what the textbooks were saying.

For example, on the subject of planning, Harvey Jones said: “Planning is an unnatural process; it is much more fun to do something. And the nicest thing about not planning is that failure comes as a complete surprise rather than being preceded by a period of worry and depression.”

As someone who was becoming depressed by the subject of business plans, this insight and ethos was very refreshing.

Harvey-Jones also demonstrated in his book that he relished opportunities to get the best out of people; and he was quite frank about how he did this: ”My own experience of trying to train and teach managers” he said, “is that it is extremely difficult to teach grown-up people anything. It is, however, relatively easy to create conditions under which people will teach themselves.”

The insight provided and resilience shown by John Harvey-Jones was invaluable and spurred me on. Whilst my circumstances had not changed one iota, I discovered a new desire, confidence and skill-set to make business happen, and in the process met more people and developed better ideas. Results were not instantaneous, but if I hadn’t spent the time reading then, may be things would be completely different now.

It’s down to you

Increasingly employers want entrepreneurial thinkers and if you are going to start your own business no one else is going to do the hard work for you.

However, one of the fundamental problems of process driven education systems (a worldwide phenomenon) is that they often spoon-feed and inadvertently create a culture of dependency on the teacher. As a consequence, it’s all too easy for students to leave the safe clutches of an educational institution without realising the full nature and crippling potential of their dependent mindset.

Yet, it is the people who know their minds and the people who won’t wait to be told what to do who really make things happen and thrive, regardless of the economy. On that note, I highly recommend Walter Isaacson’s biography of Steve Jobs, a stunning and insightful book I refer to in the next article.

On reflection, I wish my early business confidence had been as strong as my teenage belief in hitch hiking. Ironically, I don’t think I would relish hitching from Northampton to London now; but back then one lift in under 2 hours in a white van was all it took to get me to my destination.

Key Learning Points: Whatever you want to do in life, get on with it and be the creator of change.  Take time out to learn from other people and always read and gather new sources of information to access fresh perspectives and learned insight.

*Further research has revealed that this was the precise weekend (25th May 1985) when Steve Jobs was sacked from his own company ‘Apple’. Ironic that this seemingly disastrous event turned out to be the inspiration for the maverick genius to make things happen, not just for himself, but billions of others too.

 


 

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The dark side of the moon

Posted on December 22, 2011 by Peter Harrington

Pink Floyd’s chart breaking 1973 album ‘Dark Side of the Moon’ brought a legendary band together in a highly creative and entrepreneurial manner.

The music was rich and expressive and importantly tangential to the popular but increasingly bland ‘Glam rock’. Charting for over 740 weeks, ‘Dark Side of the Moon’ opened the door to world fame and fortune for 4 young men.

Reading about the creation of the album, it is clear the group knew what they wanted to do and were very entrepreneurial and motivated in the way they saw their music progressing. Doubtless there were other bands like them, but Pink Floyd applied their talents to the full.

Fast-forward 38 years – Portland, Oregon

In October 2011 I was asked to deliver a presentation in the States about SimVenture and its application as a learning and teaching resource. Keen to use an original angle and make the points as clear as possible, I eventually settled on using Pink Floyd’s 1973 album title as the headline for the presentation. Stay with me here, there is some logic…

Research which led to the development of SimVenture showed us that teachers had few resources to use to help them bring the subjects of business and entrepreneurship to life. As a result, the subjects didn’t fully engage students and only really helped them to learn about things that happen before starting in business.

When planning my Portland presentation, I reasoned that issues like business planning, idea generation and business theory had value, but all related lessons only ever keep the student on the ‘light side’. By contrast, using an authentic simulation, students were able to venture to the ‘dark side’ and gain meaning from the application of theory. Critically, this journey also allows them to return to the light side and ask better questions and make more informed decisions.

Diving and Dancing

To emphasise the importance of the ‘Dark Side’ point in the presentation, I asked the audience to consider teaching subjects like high diving and dancing without involving students in practice and practical work.

“How many students would turn up for a dance class that involved no dancing and how many people could dive off a 10 metre board without first having practiced repeatedly and failed at much lower levels?” I posed the question. The audience laughed.

Hitch hiking is the same. To truly learn and understand what it is like to be a hitch hiker, you have to hitch.

Westminster Presentation

In January 2012, I’ll be using key elements of the Portland presentation in Westminster as part of a talk entitled ‘Driving the Economy Forward’. The message will largely be the same although the power of the dark side experience will also highlight how it encourages and allows  more people to start and survive in business.

Politicians from all sides of the House will be at the event and I will be very interested to hear (given Michael Gove’s desire to return to a traditional education system) their thoughts on the value of applied learning especially in this economic environment. Doubtless the following tune will not be far from my mind as I explain the importance and value of Dark Side of the Moon thinking.

http://www.youtube.com/watch?v=lwTpZpwjtIE

Key Learning Points: Passion and preparedness to go against mainstream thinking can yield huge dividends. Practice and practical experience makes theory and conceptual thinking much more meaningful. 

 

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Mind-blowing passion in the back bedroom

Posted on December 10, 2011 by Peter Harrington

Reading anything by Bill Bryson makes me smile and laugh out loud.

As a young man, Bill Bryson discovered the joys of hitch hiking. Driven by a thirst for adventure he spent two summers travelling around Europe with the aid of his thumb. He didn’t know it at the time, but the accumulated experience when combined with his journalist skills (acquired later) would make him a best-selling author (and a mint).

Whilst Bill Bryson has made a real success of his working life, he probably doesn’t see himself as an ‘entrepreneur’. Yet, his desire to explore and discover, his preparedness to learn and ultimately his ability to apply his talents, are the exact qualities needed to succeed in your own business. So what stops us matching Mr Bryson’s achievements?

Poor use of talents

Sir Ken Robinson (who I referenced in’Present Yourself: Principles and Pitfalls’) talks eloquently and brilliantly on the TED website about the fact that the world faces a crisis of human resources because we ‘make poor use of our natural talents’. What he means is that as human beings we are all extremely gifted but many of us fail to use those gifts.

Sir Ken says that he meets all kinds of people who don’t think they are any good at anything and ‘endure their lives’ and ‘wait for the weekend’. In contrast he also meets people who ‘love what they do and couldn’t imagine doing anything else’.

The latter group he contends includes people who have worked hard to discover their talents and have then been able to put them to good use. Robinson says that just like natural resources (gas, oil etc.) talents are not not just lying around; as individuals we have to ‘create the circumstances where they show themselves’.

Bill Bryson loves what he does and began creating the circumstances for himself by hitch hiking through Europe and seeing things in a way few others did. He created a reservoir of insightful knowledge that when mixed with an ability and passion to write, provided a real literary edge. And he has managed to exploit his talents to the full and in doing so has had a ball.

Discovery creates passion

My collective personal and business experience led me to discover my real passion in life in my mid thirties. At 34 I had been running businesses for 11 years but in doing so had discovered something that was nothing to do with the focus of the companies with which I was involved.

I could see overwhelming evidence that on their own, the traditional approaches to teaching budding entrepreneurs didn’t work – and no one seemed prepared to change the situation. Even though so many people were failing in their first 12 months of business (or making the same mistakes as everyone else) educational and enterprise training courses centred largely around one person telling many what he/she thought they needed to know.

Since no one in local, regional or central government really believed what I saw, I had no choice but to have the courage of my own conviction.

I persuaded my brother Paul (simulation designer), to work with me. To cut a long story short we spent 4 years (2002 – 2006) building ‘SimVenture’. He was based in Guildford and I was near York and in that time thousands of hours and thousands of pounds were spent. Ultimately we would create a resource allowing budding entrepreneurs to practice creating and growing a virtual business, and thus be able to learn in a highly personal, authentic and hands-on way.

Fuelled by a common desire to challenge the status quo as well as a burning passion to make a real difference, we worked tirelessly in two back bedrooms. The stakes were high but we always believed in ourselves and through those 4 years we learnt so much. On more than one occasion we nearly gave up.

But SimVenture launched in October 2006 and it’s been a joy to work with ever since. The team is a bit larger now but we all love what we do, learn new stuff everyday and are making the best use of our talents.

Key Learning Points: Look around, look to yourself and dig to discover your talents. When you combine skills with a real passion to do something, you are much better placed to make a difference and have fun with all aspects of your life. 

 

 

Posted in Entrepreneurship in Action, How to be more Self-Employable/Employable, The Business Simulation - 'SimVenture' | Tagged , , | 1 Comment

Fine tuning the music of entrepreneurial life

Posted on November 30, 2011 by Peter Harrington

One of my early entrepreneurial ventures involved the management of 5 talented musicians who formed the band ‘Twelve Angry Men’ in York in 1991.

It was my job to help make them ‘successful’…

Just listening to the lads perform in a dusty cold garage, it was obvious they had individual as well as collective talent. Not only could they sing and perform well, but the songs were thoughtfully crafted too. (Thanks to the digital remastering ability of their lead guitarist Duncan Bennetts, you can listen to a couple of their songs by scrolling to the foot of this article and clicking the links).

Success brings success

In a very short time, gigs were lined up in all the main York venues and the band started to get air time on the local radio station, Minster FM. Great reviews in the local papers duly followed, loyal fans began to emerge and it wasn’t long before the band had its first sell out gig. Everyone loved being part of it.

And with the success came money.

All band members agreed that the hard-earned income should be invested in new kit and an appropriate venue for weekly evening rehearsals. People were also keen to get into the recording studio so that tracks could be laid down (on tape) which were then sent off to the big record companies in London as well as the national music press.

Things just got better…

Within a few weeks of posting the tapes, an almost perfect review of ‘Twelve Angry Men’ appeared in the popular national music newspaper ‘Making Music’. Since my contact details appeared with the article it didn’t take long for the phone to start ringing with requests for the band to play on bigger stages in London, Essex and other far-flung places.

Excited by the prospects I invited the band around to my flat to discuss our next move. But that was the very meeting when everything fell apart.

Hard lessons

Two of the band members made it clear that they couldn’t commit to playing gigs more than a couple of hours’ drive away during the week because they had daytime jobs. And since the band had no guaranteed income they weren’t prepared to give up their work. The three that could play were gutted and a mood of misery set in. Three weeks later the band played its last gig and the lack of real interest that night on the lads’ faces was palpable.

Our inexperience of the industry had led us to wrongly believe that a record deal would always come first. Yet, if I had done just a bit of research at the outset I would have learnt that this was extremely unlikely. Likewise, if I had asked the lads what they wanted when I first met them (and what they would be prepared to sacrifice to achieve their goals), we would have all realised that different people held different ambitions.

Tip! As with hitchhiking, it’s vital you know where you’re headed when you start out. And when you’re working as a team it’s critical that expectations and aims are discussed early and preferably recorded.

I still have extremely good memories of Twelve Angry Men (even if it was an odd name for a band) and five of the six lads are very good friends and still in regular contact today. As importantly I realise that the music experience taught me some very important lessons.

I discovered that if one element of the overall mix isn’t right, any new venture or product is ultimately much more likely to fail. This is why many entrepreneurs fail on several occasions before they hit their jackpot. Alternatively, to get it right, you’ve got to take a little time, a time to think things over. It can save much heartache and pain (with apologies to Foreigner – ‘I want to know what love is’).

Key Learning Points for anything to have a chance of being really successful, absolutely everything (goals, talent, product quality, promotion, branding & packaging, price, timing, finances etc.) has to be aligned. It’s like threading a needle…

To sample the ‘wonders’ of Twelve Angry Men as you muse over the this article, click the links below. I hope you like the music.

Hit The Ground    The Real Me

 

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Power with the people

Posted on October 11, 2011 by Peter Harrington

The best things in life are the things that we…?

On reflection I recognise hitchhiking was a joy because I spent time with people and then on my own. The balance was good. I love good company but privacy is important too. Yet too much of either affects my sense of well-being at a surprisingly fast rate.

The Royal Society of the Arts (RSA) recently published a powerful and compelling article that carries an important message for entrepreneurs and people running micro businesses. The research behind the piece also has much wider implications for society.

Entitled ‘Lonely Planet’ the article appeared in the autumn edition of the RSA’s quarterly Journal. Written by Neuroscience specialists, John T Cacioppo, Louise C Hawkley and William Patrick, their research has examined how people are becoming increasingly isolated in society (A full link to the article is provided here).:

http://www.thersa.org/fellowship/journal/features/features/lonely-planet

Whilst we may have far greater social media connections, there are several sectors of society that increasingly have less physical contact with people. And since, the article contends, being with people is a key driver for wellbeing and happiness, this social disconnect is real cause for concern.

Isolated Entrepreneurs

The issue of isolation affects many people who start up and run businesses from home. Office cost savings make huge sense, especially in this economic climate; email and web technology solve many communication problems too. And since you’re the boss, there is complete freedom to choose how time is spent, which is a wonderful feeling.

However, long periods of time without the company of other people can, just like my standing on the side of the road for too long, adversely affect wellbeing. Ultimately we become lonely which can affect confidence, self-esteem and our behaviour when we do get to be with others. Not good for business.

With budgets being tight for everyone I don’t see a single sustainable solution to this problem. If anything there is going to be even greater levels of isolation amongst self employed people, which will only add to the stress of doing the job. However, I do think there is an opportunity for more business centres and under-used business office properties (that are suffering from poor occupancy levels) to become simple hubs for people to meet and connect with each other.

For this to work, hubs just need to provide inexpensive opportunities and incentives for people to be in the same place at the same time. Whilst Wifi will be vital, it is things like the coffee machine or kettle that will provide the common ground – something that used be called ‘pump party politics’. Peoples’ desire for company will do the rest.

Best things in life

The complex nature of the fast lives we lead often masks what really matters to us as human beings. As such, the simple fundamental things are lost, forgotten or become invisible.

So let’s get back to basics. What are the best things in life? Privacy and working from home allows us the freedom to choose and have control over our own lives. But if we are isolated, the joy is increasingly limited and the quality of life being led must be questioned.

My fondest memories of hitchhiking are not about my time alone at the side of the road. The best times were when I met people and learnt about their lives and told them stories about mine. Likewise, travelling away on business maybe an adventure, but without the company of others, (colleagues,  my wife Wendy and/or the children), the experience typically has a hollow sense to it. And the longer the trip, the deeper the need to be with friends and family.

And that’s because, the best things in life are not the things we do ourselves, where we go or what we achieve, either in our personal lives or in business. In my opinion, the best things in life are the things that we share.

Key Learning Points: Understand your own ‘balance’ for time spent with people & time spent alone. If you work solo, ensure you share time with others & avoid long periods of isolation, as this adversely affects personal wellbeing & business performance.

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Present yourself: Principles and pitfalls

Posted on September 27, 2011 by Peter Harrington

Stood by the roadside thumbing lifts was an empowering experience. Drivers who stopped validated what I was doing and thus hitchhiking became meaningful, worthwhile and rewarding.

Whilst it wasn’t rocket science, I always thought carefully in advance about my appearance as well as how and where I stood. And I looked at the driver as the vehicle approached. Simply put, by thinking what would influence the driver I was doing my best to sell the idea of being offered a lift.

As the pace of life speeds up, so we have to make more decisions and judgements than ever before. Consequently, our frontal brain lobes develop automatic short-cuts and become wired to rely more heavily on first impressions. We just can’t cope with the amount of information and data streaming into our heads. Hitchhikers today probably have a maximum of two seconds to influence a driver’s decision. So to get the desired result, a simple and audience-focused presentation style is critical.

Presentation Principles

Influencing a whole audience as part of a professional presentation is typically a more complicated process because there are far more people with whom to communicate and greater amounts of information to convey. However, the fundamental principles learnt from hitchhiking very much hold.

A sound presentation needs to inspire confidence in an audience and the message must be conveyed in a clear and easy to digest format. Presenters must also prepare and look the part. To see someone executing these principles brilliantly, watch this video of education guru ‘Sir Ken Robinson’.

http://www.ted.com/talks/lang/eng/sir_ken_robinson_bring_on_the_revolution.html

Presentation Failure

Unfortunately, far too many presentations fail to get close to the quality of Sir Ken’s work because keeping things simple (i.e. one man talking without a script to an audience on stage) typically requires a combination of: lots of practice; experience; confidence; and passion for the subject. Yet you can do it if you are prepared to put in the effort.

However, there’s another fundamental reason why presentations are not as good as they should be. And this one’s much easier to remedy. According to advertising guru Jon Steel, presentations are poorer because of the way ‘PowerPoint’ is used.

Jon’s excellent and highly recommendable book ‘Perfect Pitch’ highlights how and why we use PowerPoint as a crutch. Not only does this make us lazy but it also takes the focus of the presentation away from our ability to communicate directly and passionately with the audience. How many times have you sat and been bored by someone going through endless PowerPoint slides, each one packed with mind-numbing information? For top ‘tips’ on this subject, read the blog post: ‘If you’re going to screw up a pitch, here’s how’.

For over 25 years Jon Steel has experienced remarkable success at the top of the global advertising industry. His book outlines precisely how to present ideas convincingly (like hitchhiking; simple, personal and audience focus are key messages). Reading through the pages you will also discover how people like Sir Ken Robinson are able to stand on stage, talk for 20 minutes without barely moving and then receive a standing ovation.

Entrepreneurs must constantly pitch ideas. Employers are always looking for people who know how to deliver sound presentations and influence the thinking of others. If you can communicate with an audience in a confident, clear and meaningful manner you will have a special talent that will last you a lifetime.

Key Learning Points: Convey clear messages in presentations by thinking about your audience & keeping things clear. Watch presenters like Sir Ken Robinson to hone skills and avoid using PowerPoint if it detracts from and dilutes the quality of what you say.

 

Posted in How to be more Self-Employable/Employable, Sales and Marketing in Business | Tagged , , , , , , | 1 Comment

Start now and value the journey

Posted on September 6, 2011 by Peter Harrington

“Entrepreneurship often happens when people are on their way to something else”.

This excellent quote by Aldrich and Kenworthy (The Accidental Entrepreneur 1999, p. 18 *) is absolutely true – especially in these times of immense speed and connectivity.

Like the hitchhiker, the entrepreneur is often starting new things but what marks them out is their openness to fresh ideas and ability to remain flexible in their thinking. To demonstrate the point, watch this mindblowing presentation by entrepreneurial artist Janet Echelman: http://www.ted.com/talks/janet_echelman.html

Just start something

The very act of starting a new venture or hitching a lift exposes us to the possibility of experiencing new events, meeting new people and seeing life in a different perspective. But if you don’t start or are only prepared to repeat a previous life experience (I catch the bus, I always catch the bus) then you deny yourself countless opportunities.

Creating different experiences in our lives naturally involves an element of risk. However, it is important to maintain this simple attitude to doing new things because it keeps mind and body healthy. But unfortunately humans are creatures of habit.

As we age so we create patterns in our lives which become norms. And before we know it, it is very difficult to break the chains of safety that we have bound around ourselves for fear of squaring up to uncertainty, difference and failure. Ultimately, it is not just our actions that become imprisoned; habits incarcerate thinking and ideas. And once this happens, our capacity to do anything meaningful with our lives is reduced to almost nothing.

The value of Failure

Economist and author Tom Harford recently wrote the groundbreaking book ‘Adapt: Why Success always starts with Failure’. This blog can’t explain the tome in detail (for more, visit www.timhardford.com), but essentially this ‘must read’ book is about the importance of trial and error in solving problems (from local to global) and accepting that mistakes and failure are not only a necessary part of the process, but an essential one.

But there’s a problem. In chapter 8 of his book, Tim Harford illustrates clearly and brilliantly how humans are programmed to respond to mistakes and failure. If you hadn’t guessed it, we respond badly. We deny it; we choose to forget it; and/or we reshape our history in a different, more favourable light. Unfortunately, none of these self-preservation mechanisms help us to learn from mistakes, move forward, evolve and thus have the ability to create something better.

So, next time you are on your way to somewhere, whether it’s hitchhiking, a new course/job or even venture, look out for things you wouldn’t normally encounter. And if you try something new and it fails, don’t simply chastise yourself or take criticism from others. Carefully examine the value of what you have learnt along the journey and then make good use of the experience. Janet Echelman did and look where it got her.

Key Learning Points. Always be open to ideas and activities and use your initiative to start new things. Be aware of the crippling effect of habitual behaviour and instead be honest with yourself and embrace the learning value of failure.

* (1999) Howard E. Aldrich and Amy L. Kenworthy. The accidental entrepreneur: Campbellian antinomies and organizational foundings

 

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How to know when not to listen

Posted on June 27, 2011 by Peter Harrington

Tell others that you want to start your own business.

Don’t be surprised when more people than you thought advise against such action.

Regardless of the state of the economy, there is little doubt that the UK (and most, if not all other western societies) has become more risk averse over the past decade or three. Tightening health and safety regulations, irrational worries over litigation arising from supposed ‘mistakes’ and the general blame culture are key causes.

But feeding into this sad soup of reasoning is the fact we all have far greater access to instant information. And such is the competition for our attention that articles have tended to become more sensationalist. As a consequence, there are far more ‘experts’ in the world who possess a little knowledge on a wide range of headline subjects – one of them of course is setting up in business and the associated risks.

So when people wish to offer you advice about the problems and pitfalls of going it alone, check out their credentials and clarify the extent of their knowledge and the root of their wisdom. There’s no need to be rude or aggressive, but simply ask them about their experience of self employment or working with people like yourself and how they are able to gauge the risks involved.

It was the same with hitchhiking. There are not that many people with first-hand experience of thumbing lifts, yet the skewed advice I received on the subject combined with the sincere belief that the risks certainly outweighed the rewards was stunning. In the end I learnt to switch off to the uninformed pessimist – or try and convert them to my way of thinking.

Having said all that, when you do meet people who have first-hand experience of being their own boss, take all the advice you can get. If they are seeking to steer you on a path away from self employment it is worth listening to their thinking – so question and clarify the points being made so that you fully understand the guidance available. Even though you might not agree with what is being said, the advice is likely to be very valuable.

Ultimately, the decision about going it alone will probably be yours alone. It is the first of many decisions that will be made but if you can sort the wheat from the chaff early (in terms of the people whose judgement and advice you seek and trust) you are far more likely to be confident about the direction you are headed.

Key Learning Points: Whilst people might mean well, judge carefully who you listen to when seeking advice about self employment. Always counsel people who have personal experience of setting up and running their own business.

Posted in How to be more Self-Employable/Employable, Human Behaviour in Business, Teaching Entrepreneurship & Business | Tagged , , , | 3 Comments

Your need to achieve is greater than ewe think

Posted on June 24, 2011 by Peter Harrington

Leeds station, 11.35pm. It’s a dark, cold November evening. The last train to York departed 5 minutes before my train from Huddersfield arrived. But for the night-time usuals I’m on my own, frustrated and penniless. What next?

Impatience is a failing of mine. I can’t hang around and wait for things to happen. Built within me is an innate desire to get on and do things. And if like me you recognise the strong need to ‘achieve’ in yourself, then it’s quite possible you possess a powerful entrepreneurial streak within. But how do you really know?

Back in 1993 I attended a week-long sales training course where Frank Atkinson (the trainer who modelled buyer behaviour) talked about the deeper personal ‘needs’ we all possess. He summarised them into 6 key areas and we completed a test to establish which of our needs were most dominant. The 6 needs included:

Power; Achievement; Order; Safety; Recognition; and Affiliation

My score for ‘Achievement’ was the highest in the room and it was on that day I began to fit together the pieces of my behaviour into a model that made sense. In other words, I started to understand who I was and more importantly why I did things the way I did.

Further exploration into my personality showed I spend much of my time thinking about the future. I am driven by targets and reaching goals I set; this gives me a sense of purpose and identity.

For the record, my ‘Affiliation’ score in the needs test was extremely low; in other words, I don’t really seek reassurance or follow the herd when making decisions, nor really cherish being part of a team. And I discovered ‘Safety’ and ‘Order’ needs were not high priorities for me either.

Desire to do something

If you sense your need to achieve burns away (whether it’s learning a musical instrument, doing well in exams, getting fit etc.) then this side of your personality is going to help you should you start your own business. Entrepreneurs have to be hungry to succeed and impatience, whilst also being a weakness, is a vital energy source. It drives you.

That cold winter’s evening, the walk to the edge of Leeds on the A64 was a good 3 miles. I didn’t fancy hanging around the city centre and the idea of waiting over six hours for the first train of the next day was a non-starter. So off I went.

Aware of the risks and slightly nervous I spent 20 minutes hitching in the dark before the first car picked me up. I don’t remember anything about the journey apart from the fact the driver dropped me at the A1/A64 junction where it was pitch black and very little traffic going my way. It was 1.30am. Home was still 12 miles away.

The new inspires

Dark and alone I felt slightly vulnerable, uncertain but also curious about the new experience. I liked being out of my comfort zone but still in control of my destiny. There’s real freedom in this space but we often don’t go there because our fears trap us in what we know – hence why so many people don’t start in business.

Eventually, a large vehicle pulled off the A1 and rounded the bend towards me. In the gloom he would have seen the solitary figure late, but in those few seconds everything changed.

The brakes hissed, the engine screeched and the lorry ground to a halt by my side. Elated, I climbed into the cab, quickly judged the situation to be safe and said I was heading to York. Happy to give me a lift, the friendly driver drove off. In no time, all was good with the world and success was within my grasp.

Travelling the empty road, I discovered my new companion was destined for an early morning livestock market near Whitby. He was working all hours but loved his job – his own new business. The world had contrived to bring our lives together but in completely different ways the two of us were focused on and driven to make things happen for ourselves; we weren’t waiting for others to give us a lead to follow. The irony of the situation: – behind us in that lorry were 80 sheep!

Half an hour later, the wagon stopped right outside my student digs in the centre of York. The driver insisted on going out of his way to get me home safely. We shook hands and smiled knowing it was extremely unlikely we would never meet again.

It was 2.10am. In less than 6 hours I would be presenting an assessed piece of work in front of the whole lecture group. I didn’t mind, in fact in a strange way the experience had energised me. I loved the feeling of achieving something I had never done before.

Key Learning Points. The need to ‘Achieve’ creates impatience and drive. It helps to make the entrepreneurial mind ‘hungry’. Analyse your own deeper personal needs to better understand what motivates you to do things. Achievement makes us feel good.

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Beware the devil of self-importance

Posted on June 11, 2011 by Peter Harrington

As I climbed the tank crane’s 10 foot ladder to access the driver’s cab I knew this wasn’t going to be a typical hitchhiking experience.

The day was warm and I was heading to the south coast via Oxfordshire. Time was on my side, I had the the freedom of the road and all was good with the world. And then this monster truck growled to a halt.

“It’s the biggest vehicle on the road” said the army uniformed driver proudly, his hands spread across the steering wheel much like an angler showing off his catch. Sitting in my 15 foot high perch I listened intently as he carefully described the vehicle’s weight, length, defence systems and general wonder-powers  - whilst simultaneously crunching through the gazillion gears.

The enormous windscreen gave me a panoramic view from the cab. And my elevated status meant I could see everything and everybody could see me. Indeed, as we drove along I began to enjoy the attention we received from drivers and passers by. Popularity felt cool and I quickly forgot about being the humble hitchhiker.

But as the transporter arrived at a long incline on the outskirts of the town of Banbury, so my fortunes changed. Being titanic in tonnage, the vehicle struggled to get much above 5mph and thus crawled laboriously up the hill. And half way up the driver caught site of two attractive women walking along the pavement towards the vehicle.

All hell let loose.

Sirens screamed, lights shone, horns bellowed and the driver whooped from his open window. Other passers-by (there were quite a few) must have thought our vehicle was on heat. But of course no one could tell that it was only the driver and not me who had seemingly swallowed a bucket-load of Viagra that morning.

I felt a right idiot (in full view in my elevated perch) as the two women and then others returned ‘fire’. The driver seemed to enjoy the abusive attention; I just wanted to be anywhere but in the spotlight. I’ve never forgotten the embarrassment and the fact that I immediately realised being on show is a double-edged sword.

Self importance

There is no doubt that when you experience business success, you feel good about yourself, and want more of the same. People close to you are also much more likely to congratulate rather than question your achievements. However, unchecked, in relatively little time it’s easy to have a skewed view of who you are and what your achievements really mean – especially if events are played out in a public spotlight.

The entrepreneur whose sense of self-importance gets out of hand is in real danger of becoming a poor judge of people, situations and perhaps more importantly, their own business. As a consequence, egotistical self interest can take over and/or mask thinking. When wrong issues are prioritised success can quickly lead to financial failure and ‘friends’ melt away.

Not mincing words

The hilarious and very direct Encyclopedia Dramatica refers to the theory of ‘unwarranted self importance’ by saying “(It) is a disease that gives you the feeling that you are actually worth something despite not having made any contributions to anything at all, or actually making the world a much shittier place, thus making yourself look like a complete douche.”

A little strong perhaps but when peoples’ self-perception is clearly over-rated or at odds with reality, a quick cut down to size may be appropriate medicine.

Over 20+ years I have offered such insight to a jumped-up few who do little for the image of the entrepreneur; expensive suits, a throwing hand for cheap shiny business cards and a motor mouth were all common qualities. Of course, your now thinking I’ve described the gaggle who all seek fame and fortune on The Apprentice. I must write about that.

For me, even though I was only hitchhiking, I was fortunate enough to be quickly brought down to earth by events and learnt an important lesson. Public humiliation, whether it is a small crowd or the media spotlight, is a powerful and lasting force.

Key Learning Points: Entrepreneurs naturally seek new business opportunities and publicity. When success arrives, keep your feet on the ground and remind yourself not to be carried away by the hype & emotional highs. True friends will always respect you.

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How to plan and achieve sales effectively

Posted on June 10, 2011 by Peter Harrington

In the early nineties I employed a sales guy on a short-term 10 week contract. I gave him a sales target of £10k and suggested we meet each Friday to review progress.

Expecting great things, Steve got stuck into work but at the end of week 1 reported zero sales. I was somewhat disappointed but accepted he was still ‘learning the ropes’. Promising improvement, Steve worked solidly throughout week 2 only to report a total sales figure of £250 the following Friday.

In my mind I had expected £1k a week, so he was now nearly £2k behind target. I was less diplomatic with Steve and told him that things had to improve in week 3 since his fees were costing me dear.

We never got to the third Friday. Steve resigned on the Wednesday complaining the targets were impossible and I wasn’t providing enough support.

What went wrong?

The project was a complete failure but the experience provided huge learning value.  Whilst I should have given Steve more guidance and help, the real problem was actually the way the targets were being set and measured.

Linking targets with time is the wrong thing to do because sales rarely ever flow in a consistent manner. It’s like the hitchhiker trying to achieve a set distance each hour. It’s completely pointless because the opportunity to travel is heavily dependent on other key issues such as route choice and the volume of passing traffic.

To plan sales effectively, sales targets need to be linked to ‘sales activity’ and what are called ‘key ratios’. By doing this it’s possible to be much more scientific and thus confident about eventual sales outcomes. To help you learn faster ( and without the pain I experienced reference this article and/or follow the example explaining key ratios below.

Jane Johnson’s online specialist furniture

Jane sells specialist furniture from her website. She sets herself a new business sales target of £100,000 for the year. She knows that the average sales value of her product is £1,000. As such, she needs to make 100 sales to hit her target.

After a bit of analysis Jane calculates that for every three new inquiries she receives, she sells one item. She also works out that to generate one inquiry she must send 5 emails or letters to qualified prospects. And Jane knows that her qualified prospects materialise from bought lists. Further analysis reveals that emailing 100 people from these lists generates 10 qualified prospect returns.

Jane writes down this information to see how much work has to be done to achieve her sales target:

100 sales are needed at an average value of £1,000

1 sale from 3 inquiries                                                            1:3

1 inquiry from 10 qualified prospects                                  1:5

1 qualified prospect from 20 unqualified prospects          1:10

Based on this information and resultant key ratios, Jane quickly establishes that for every 150 people she contacts she will make one sale. Therefore, as long as she contacts 15,000 people over 12 months, she will hit the target.

By doing a bit of maths, Jane knows that she has to contact 1,250 people a month in order to reach her goal. Confident in her own ability and strategy, Jane sets to work. Her first task is to source and purchase on-line databases that reflect her target audience; then she has to construct succinct emails and ensure 1,250 people are targeted each month with a well constructed message.

As long as Jane remains disciplined with her work and learns and adapts as she progresses, she has a far better chance of achieving her targets compared to Steve.

Key Learning Points: Wherever possible, set your own sales targets based on buyer behaviour data. Link targets to sales activity (key ratios) rather than time, because you have greater control over the outcome and much more confidence in the process.

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When the going gets tough…

Posted on May 15, 2011 by Peter Harrington

“Where ya goin?” The local van driver spoke as he leant over from his seat and looked at me shouldering my heavy rucksack and holding the passenger door open.

“Lake District!” I replied. The prospect of a lift always added eagerness to my voice.

“Get in… but I’m only going to ‘arrogate’.”

I forget how many times I had the ‘Harrogate’ conversation with drivers. I have nothing against the place; in fact it’s a beautiful Yorkshire Dales spa town and definitely worth a visit if you like good food, antique shops and a bit of healthy living. But it was a buggar of a place for hitch hiking because all the main roads went through rather than around Harrogate. As a consequence, I was typically dropped off on one side of town and then had to walk 2 or 3 miles to get somewhere suitable to hitch another lift.

Such occurrences were not too bad if the sun was shining and time was on my side. But when the rain was bouncing off the pavement or daylight hours were in short supply it wasn’t much fun. Being alone, ‘giving up’ was an option; however, I always sensed the situation was a problem to solve. Put another way, it was an opportunity to achieve something in difficult circumstances that would help ‘build character’ and perhaps teach me a thing a two.

Expect the hurdles

The journey for the entrepreneur is very similar. Whilst the freedom to make your own way can be exhilarating, there are always obstacles to overcome. Most of the time the test isn’t too trying, but the real trial is when a number of problems combine at the same time and you have to dig (sometimes quite deep) in order to get through.

Weak finances, personal stress and insufficient sales are common problems that most start-up businesses face. And when they combine, the task of resolving the overall situation can seem quite daunting.  The easy thing to do is to do nothing, pretend the problems don’t exist and/or run away from them. Unsurprisingly, this approach can have catastrophic consequences for the business.

What you must do is face up to and focus on the biggest problem first and address it properly. This may be uncomfortable initially and almost certainly means more work, but invariably the moment the extra effort goes in, things start to ease.

In addition, tackling/resolving the biggest issue, gives you confidence and energy to attend to the other problems. And as you make progress so you learn about business and discover things about yourself.

Interestingly, when you reflect on what you achieve, you discover one of the keys to sorting things out was simply getting out of the tunnel vision perspective you had on the original suite of problems.

You realise that just taking action allowed you the luxury of viewing things differently – and then you realise the issues were perhaps not as big as you thought. Whilst this might be the case, it is also the experience you have gained which has given you a new perspective and made you better, more resilient and more confident in the job.

Hitchhiking alone taught me the value of being able to depend on myself. Travelling thousands of miles, sometimes in difficult circumstances, also helped prepare me for the life of self-employment. Since starting in business I’ve discovered I am motivated by achievement because it gives me a sense of purpose and perhaps identity. And If like me you enjoy making things happen and get a buzz from overcoming difficult challenges, then running your own business is almost certainly always going to appeal to you.

Key Learning Points: Self-employment is not a fair-weather pastime and resilience, and preparedness for hard work are important character traits. When problems arrive simultaneously, tackle the biggest one first and always learn from the experience.

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Trust: The one thing that matters most

Posted on May 10, 2011 by Peter Harrington

Have you experienced a situation where one person trusts you when nobody else does? And what happens next?

In little time a strong bond can build between you both, sometimes at remarkable speed.

Why does this happen, what forces are at play and how can you apply the experience and knowledge to your own entrepreneurial journey?

Hitchhikers constantly seek one person who will believe in them. And I’ll never forget how countless drivers passed me one autumn afternoon as I grew increasingly desperate in the fading light for a lift to get me home. Rejection followed rejection but eventually a car pulled over.

Being a young 17 year-old, I naively (but eagerly) held out my last £1 note to the smartly dressed driver as I got in. Wiser and older, he waved away my offer but happily became engrossed in a fascinating conversation about his life as we sped northwards up the motorway.

Reciprocation 

The total journey lasted no more than an hour; he went five miles out of his way to get me to my parent’s home; and in that time he talked to me in detail about how the sad death of his wife had impacted on his recent life. We were like best friends when we said our goodbyes.

Critical to that meeting of minds and the speed at which things unfolded was the issue of trust. And underpinning the trust between us was a desire to give back to the other person because we both valued what was offered and wished to reciprocate.

In his excellent book ‘Influence: Science & Practice’, the author Robert Cialdini writes eloquently about the power of ‘Reciprocation’ and ‘Liking’ as highly influential forces. Giving first has powerful consequences but the potential value of such a gift only becomes fully apparent if the receiver really trusts you.

Speed of Trust

More recently, Stephen Covey has published ‘The Speed of Trust’ which is a truly ground-breaking piece of work. The author contends that Trust is at the heart of everything we do and once it is present, individuals and teams can achieve great things – very quickly (Covey refers to this as trust dividends). The opposite is true when there is a breakdown of trust (Covey refers to this as a trust tax).

Early on in his text, Covey even provides mathematical equations to demonstrate why trust can be gained at speed (as per the hitch hiking example) but also explains in detail how and why our behaviour can destroy relationships faster than they were built.

Entrepreneurs who typically find greatest success are very good at building strong long-term relationships with a lot of people. The glue that binds them together is the trust that they will behave consistently, congruently and reliably – in other words customers know they will provide their great service or product on-time and every time.

As an issue, ‘Trust’ sounds simple, yet making it really work for you is truly complex. But if you thumb through the pages of  ’The Speed of Trust’ and apply the recommendations Covey makes, I am certain you will get to where you want to be with your own project or business sooner than you think.

Key Learning Points: Trust (or mistrust) is at the heart of all the work we do with people. Understanding the key theoretical & practical principles that underpin this subject will accelerate you along your entrepreneurial journey.

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What to do when demand dries up

Posted on May 2, 2011 by Peter Harrington

After 5 hours stood by the roadside that hot summer’s day back in 1988 I was beginning to doubt my chances. Was I ever going to get out of Wales and reach home?

I was learning the hard way. Trying to hitch when everyone else was going away on holiday was proving to be a bad idea. The previous day on the road had been easy. But today cars were full of people and there was seemingly little appetite for picking up strangers; even though I was exactly the same person as the day before and was smiling at every passing driver…

With no other help to draw on, I wasn’t going to give up. My luck had to change at some point. Or so I thought.

Business parallels

And it’s the same in business. Customer demand is rarely constant and this can be the cause of much anxiety when orders unexpectedly dry up and cash stops flowing into the business – particularly if it’s for a sustained period. The process is all the more unnerving in the early years of business since you have no historical trading patterns from which to forecast demand lulls.

Self-reliance

Every business should have some kind of financial buffer for tougher times.  However, since it’s never pleasant spending reserves, you need to be able to draw from your own mental strength. Holding your nerve and staying focused on what makes your business perform is critical.

So what do you do?

  • First – since your business will be no different to the one that attracted high demand levels before the lull, you need to remind yourself that your product/service is sound. Don’t panic or do anything rash.
  • Second – research what’s happening in the market (e.g. talk to customers) and learn the cause for the lull. In most cases you will find demand is affected by external issues outside your control. Don’t think everyone as a collective has suddenly forgotten you. One business I work with (Print Revolution) learn much from their paper delivery drivers because these people know how much paper is being ordered by all printers. When it’s quiet, it’s typically quiet for everyone.
  • Third – Use the research to give you peace of mind and/or construct sensible promotional offers that can be communicated to the market at low cost to create demand. Don’t sit around waiting for things to happen and don’t give away your work.
  • Fourth – Ensure that the ‘sensible offers’ you make are justifiable for the moment in time and ensure they are time-bound so decisions to buy your product/service are made quickly.
  • Fifth - Use some of the available time to work on the business and get things done that you can’t when you are busy.

In all my experience of demand lulls (they’ve happened at least twice a year for 20+ years) I find I get some-way into the fourth action point only to find demand picking up quickly. And each time this has happened I have grown a little bit stronger and more resilient.

And so it was in South Wales. I was beginning to eye a place to sleep when after 5 and a half hours a car did eventually respond to my outstretched thumb. The driver was only going 30 miles but critically the lift re-energised my self belief, determination to get home as well as confidence in people who might pick me up. And once we reached the M5 motorway lifts became far more frequent and I was home just before nightfall.

Key Learning Points: Persistence and resilience are common traits in successful entrepreneurs. Since demand is rarely constant (because of external factors outside your control) develop strategies for managing the business when orders dry up.

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Get acquainted with risk

Posted on April 25, 2011 by Peter Harrington

Snakes are never going to be my best buddies. Ever since childhood I have had a deep-seated fear & loathing of the things. But whilst avoidance might keep me feeling safe, my lack of desire to do anything further serves to maintain an unimpressive level of ignorance about the subject.

Like snakes, hitch hiking should be handled with a degree of care. However, the true reality of roadside risks and perils are a fair distance from media headlines. Unfortunately, the tabloids would have us believe that mortal danger is around every bend in the road – and then readers respond accordingly.

As a result of media messages (combined with government legislation) people are seemingly becoming more risk averse – or more significantly, avoid risk altogether. And mass avoidance of risk is a real economic time-bomb; if people at a younger age avoid (rather than manage risk effectively through complementary activities) just how well prepared are they to start a business and deal with all the subsequent issues?

Manage risk

Learning how to manage risk well necessarily means being exposed to new situations and dealing with difficult and even dangerous issues – regularly! Good outdoor education for example is an excellent environment to learn and discover new talents, confront weaknesses and ultimately build self-confidence so that barriers in our minds are broken down and more can be achieved elsewhere.

Author Pema Chodron wrote in her famous book ‘When things fall apart’ that rather than running away from situations we don’t like, we should ‘stay a while’ and get used to our new surroundings. By immersing ourselves in difficult situations we begin to adapt and ultimately are far better prepared to deal with unsettling issues, writes Chodron.

Research shows that successful entrepreneurs have the ability to stick at what they are doing – through thick and thin. This necessarily means they are better prepared and able to handle the difficult times and manage the associated risks.

So if you like the idea of starting a business but don’t like the risks involved, start practicing with some small risks and build your confidence from there. Meanwhile, I’m off to the local zoo to volunteer to help in the reptile house…

Key Learning Points: Our ability to manage risk almost defines what we are capable of achieving. Extending ourselves equips us with new skills and develops mental strength; two key attributes of people who create and grow businesses.

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Travel: The catalyst for great Ideas…

Posted on March 1, 2011 by Peter Harrington

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It didn’t take long, about 2 hours in another country and I saw it…

Surprising how a bit of cloth surrounded by elastic grabs your attention. But as I was being driven from Johannesburg airport to my accommodation in the suburbs early that beautiful morning in May 2010, I was taken with something I had never seen before.

There on the wing mirrors of almost every other car I saw were ‘gloves’. Gloves?

Yes, but they were no ordinary gloves. The elasticated gloves tightly surrounded the rear of the driver and passenger mirrors and displayed the South African flag in full colour. 

The gloves were far more elegant than the flags waving from cars we have become accustomed to in the UK – although admittedly there were an abundance of these too.

World Cup football fever had created a simple but highly innovative idea.

My point: I’ve never seen these mirror gloves in the UK yet they would probably sell just as well as they did in South Africa. And then there’s all the other countries.

When travel is combined with the freedom to think, innovative & entrepreneurial thoughts flow far more freely than sitting in a room with a blank piece of paper. The late Anita Roddick built her Body Shop Empire after returning from her travels abroad (recommend her autobiography ‘Body & Soul’). http://www.anitaroddick.com/aboutanita.php

Of course hitchhiking is all about travel but crucially it adds that vital third dimension of meeting different people who provide both original ideas and objective feedback – all for free!

Since I made a point of asking questions and listening to answers, people who picked me up would often tell me about problems and difficulties they were facing in their work or personal life. Sometimes in incredible detail. Even as I write, I am toying with the idea of hitchhiking around the UK for a week just to meet others and learn about their lives; because the seeds of new ideas exist within the problems they talk about.

So, if you’re ambitious but a little short on great ideas, how about combining travel and research? You don’t have to hitchhike but the more you can engage with new surroundings the more information you will uncover. If you remain open-minded and wait for the ideas to flow you will undoubtedly be able to apply the appropriate entrepreneurial twist .

Key Learning Points: Travel broadens the mind. Discover and research new ideas by seeing new places and meeting new people. Applying a successful idea that is already being used in another country can significantly reduce the business risk too.

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Shape up and ship out

Posted on February 7, 2011 by Peter Harrington

After several years working hard on my first venture, an experienced mentor and friend drew me a simple diagram to demonstrate how to run a much more effective business.

“It’s all about getting the shape and direction right” Chris said, taking his pen off the paper and sitting back in his chair. I peered at the illustration. None the wiser I looked up at his smiling face and asked him to explain.

What he told me will stay with me forever.

Getting to Lands End

And Chris’ explanation also reminds me of the time I journeyed to Lands End with a friend who liked the idea of hitching but she didn’t want to travel to Cornwall alone. The distance was about 350 miles but other commitments meant we had to get there in a day (I had to be back in Nottingham the following evening).

When I hitched alone I normally just stuck out my thumb to passing motorists. However, given the distance, time constraints and novelty of the destination for this particular trip, we decided to create a clear sign with the obvious words ‘Lands End’ in large black ink. We knew we might put off some people who might otherwise have picked us up, but the idea was to only attract motorists who were going in our direction.

And it worked a treat! From the very first hitch at 8.40am (on Junction 26 of the M1) people going our way were drawn to the sign. We travelled by motorway around Birmingham and down to Exeter and then along ‘A’ roads to our destination. We arrived dead on 6pm.

The Lands End journey was a real success because we were very focused both in terms of what we wanted to achieve and how we appealed to people who might offer lifts. We were surprised by our speed and efficiency especially as we were travelling as a couple. However, if I had known the fundamental principles that Chris taught me years later, the swiftness of our journey should have come as no surprise.

So what did the drawing look like?

Chris drew the bow shape of a boat (see image above). And in common with so many solutions his accompanying explanation was remarkably simple.

Focus is everything in business

“Businesses that have a sharp focus not only progress quickly but actually draw the market to them. They know where they are going and offer something different and appealing – and it marks them out from the crowd” Chris explained. “In contrast, so many businesses have a flat bow end and spend far too much money and time trying to sell and market their product or service – and progress is laborious.”

Chris’ diagram and explanation went onto underpin the whole strategy for Venture Simulations and the creation of the business simulation ‘SimVenture‘. By understanding the market and competitor activity in detail it was possible to design a product that when accompanied by appropriate pricing and promotional strategies, cut through the market in a highly efficient and effective manner. Today, most of of new customers find us before we find them and the business has become a global leader within 4 years of launch.

Key Learning Points: Great businesses are ruthlessly market focused and everything they do is driven by customer demand rather than product need. Adopt this approach and your business will find success far more quickly.

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The team don’t work

Posted on January 15, 2011 by Peter Harrington

Flush with hitchhiking success, I often encouraged friends to thumb lifts and wherever possible join me on my travels. I genuinely wanted to share the road freedom I had discovered. However, only a few ever followed in my footsteps and on the odd occasion I hitched in company things rarely worked out as planned.

Pain across the Pennines

Easter 1984 was a scorcher. Three of us spent a week walking the Lake District mountains. Such thirsty work led us to the pub each night and on the last evening I persuaded the others to hitch home the following day. Train ticket money saved, the beer kitty overflowed.

The next morning (and with a collective hangover and hazy sense of discovery and adventure) we stood with our humungous rucksacks by the roadside.

Unfortunately, this trio of fluffy half-beards did little for passing motorists and it didn’t take long before I was getting abuse from the others. “You said we’d get picked up within 30 minutes Harrington…” and other similar but unrepeatable accusations were fired my way. It quickly dawned on me just how much easier it was to travel alone.

Eventually, a slightly battered motor-home did stop. Perfect! I felt vindicated. Rick and I scrambled in the back door and Adi arched his hulking frame on the passenger seat next to the driver.

For the first few minutes all seemed fine as we made headway along the A66. But the romantic rosy picture of hitchhiking I had painted the night before was about to be completely torn up.

Our Leeds-bound driver rarely broke 40 mph and chain smoked all the way. Between puffs she ranted continuously about ‘hating sport and competitive activities’ and we’d regularly hear a loud horn sound off as another angry driver risked life and vehicle to pass our chug-along.

Trying to maintain a degree of harmony in front, Adi never disagreed or questioned any of the driver’s opinions. She never asked him a question. He felt it was better not to mention he was off to the Seoul Olympics with the canoeing team that summer.

That nightmare 90 mile journey to Leeds took 5 long hours and included two stops. Delighted to escape we tried to hitch south to Nottingham but without success. With daylight hours running out and patience long gone we eventually gave up and walked to the Leeds railway station. Adi and Rick never hitched again and I decided not to encourage others to travel with me.

Lessons for the entrepreneur

When you think about starting a new business for the first time, it can be a scary experience if you’re going it alone. As a result, there is a natural tendency to want to reduce the sense of exposure and financial risk. One way of doing this is to involve others in the new venture.

Unfortunately, your own perceptions of how you want to run a business are unlikely to be the same as other people. Whilst every individual will have the best of intentions at the outset, it’s very easy for things to fall apart later – with potentially disastrous effects.

So if you do want to create a business with others, you need to dig deep so that all involved really understand and appreciate each others’ motives, values and goals. Taking time with this process pays real dividends and don’t be concerned if people choose to back out – much better that they do this at the outset.

I loved hitchhiking because I enjoyed the freedom to make my own decisions and deal with the uncertainty. If things went wrong I got a sense of achievement by overcoming the challenges that presented themselves. However, after the motor-home fiasco I realised that I didn’t want to hitch with other people unless it was absolutely necessary (I’ll write about a round trip to Lands End with another friend later).

Working solo is completely different to working in a team and if you are making career decisions it’s important you know the kind of environment where you work best. Teams can do amazing things but they can also stagnate as well as halt meaningful activity.

Whilst entrepreneurs do not always succeed, it is their single-minded determination and ability to act quickly and without time-consuming consultation that often makes them successful. And their working environment gives them plenty of freedom to make choices, something that is often much less easy when working in a team.

Key Learning Points: Entrepreneurs enjoy making things happen and can be very single-minded. Such behaviour is typically not as effective within a team. When starting a new business think carefully before committing to working with other people.

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Jump the job queue: Free is the way

Posted on January 14, 2011 by Peter Harrington

Frustrated, annoyed and angry are just three of the more polite descriptions for how I feel when I see waste.

Whether it’s a plate of half eaten good food or a quango created to check a tax dependant public body – in my opinion it’s senseless and myopic waste.

A shrink might say my take on waste led me to hitch hiking. No unnecessary money was spent and my carbon zero approach to travel left the ozone layer none the worse. That said, I was often skint – so don’t think I was some kind of evangelical environmentalist seeking a better world. I wasn’t that bright.

Respect time & money

Like hitchhiking, entrepreneurs quickly recognise that time and money must be treated respectfully and cannot be thoughtlessly wasted. Pennies and minutes really matter and if mistreated will kick the abuser hard sometime later. But orders rarely walk in the door and therefore decisions about spending money and time, so that work is won, need to be made all the time.

In this economy, entrepreneurs have had to develop more innovative and creative methods in order to find and secure income, orders and sales. One clear development is the array of free offers that are now available. Just look at digital applications. How many are not charged for in the hope that the prospect will test and subsequently pay for something later? This approach is far less wasteful than mass marketing and seemingly involves both customer and supplier in the building of a better and more sustainable relationship.

So what can the entrepreneur teach the job hunter?

If you are seeking work in these difficult economic times, you can benefit from the entrepreneur’s creativity and learn how to jump the job queue. So many people are sending out endless CVs and going to the job interviews (but without much success). If this is you, I suggest you put a stop to the expense and change your tactics.

Learn from Ivan Gonzalez

Ivan Gonzalez, a young Mexican man, lived in a cramped one bedroom flat in London with his wife. Keen to work in the pharmaceutical industry he wrote endless application letters, attended many recruitment fairs and secured a handful of interviews. But with thousands of people competing for the same space, and the economy in a nosedive, he never got a job – apart from being a poorly paid waiter working long shifts, often at an anti-social hour.

After a couple of months, Ivan reasoned he was probably wasting his time and money competing directly against other job hunters who might be better qualified or connected. So he stopped writing the letters and catching buses and trains; instead he found a new way to reach his employment goal.

Ivan researched small pharmaceutical companies on the internet and then wrote a personal letter to the boss (by email) offering his time for free for several weeks. It didn’t take long for one of his target employers to respond. Within a small space of time Ivan had thrown himself into work with a pharmaceutical research agency knowing that he had a short time to impress and build the necessary trust.

And the approach worked. Ivan was offered a full-time job by a highly satisfied employer who was delighted to find a hard working, entrepreneurial young man who he discovered would fit perfectly with the team. As a bonus, the employer hadn’t wasted any time in the recruitment process and certainly had not paid an agency a handsome fee to find Ivan.

More than ever, employers are seeking to take on people who demonstrate entrepreneurial thinking. If you can follow Ivan’s lead you’ll cut out waste, streamline your efforts and probably find the kind of job you are seeking, quicker than you think.

Key Learning Points: Don’t waste time & effort following the crowd and wasting money & time. Learn from the entrepreneur & offer work for ‘free’. This compelling price & approach gets you noticed. You’re attitude means you also more likely to be hired.

Posted in Entrepreneurship in Action, How to be more Self-Employable/Employable, Human Behaviour in Business, Teaching Entrepreneurship & Business | Tagged , , , , | 2 Comments

Figuring out pricing

Posted on January 7, 2011 by Peter Harrington

Many start-ups wrongly copy the hitch hiker when it comes to pricing. An outstretched thumb works by the road, but a finger in the air almost always plucks financially flawed figures.

Pricing products or services (especially the first time) isn’t easy, but considered calculation based on key principles can make all the difference between business success and failure.

Using the following fictitious example throughout, this article will highlight what needs to be done to price goods effectively.

Kay has started a business making specialist waistcoats and wants to sell them online. She is not confident about setting a price for the garments and is worried about being too expensive or too cheap. How does she price the waistcoats?

Know your ‘costs of sale’

It’s vital Kay knows what it costs her to make the waistcoats. Known as ‘costs of sale’ this information makes business and sales planning as well as pricing decisions much easier. After a bit of calculation she works out that the materials to make each garment cost £15 and it takes her less than half a day to make a waistcoat from scratch.

Kay is surprised at the inexpensive costs and thinks that by setting a price of £30 per garment she will be making £15 profit per garment – a 100% margin! But then she realises that the £15 profit in half a day has to also cover her own salary; and then there’s all the other bills such as energy, website costs, phone bills and bank charges etc. Before she does anything else Kay decides to work out her total costs each month.

Know your overheads

Kay discovers that including her salary, phone bill, energy costs etc. (but excluding all material costs to make the garments) she is committed to spending £2,000 per month on her business (these are her overheads). She reasons that she works 20 days a month which means each day costs £100 before she makes anything! Armed with this information, Kay is a little more confident about setting an appropriate price to make a profit. She scribbles the following information down on a piece of paper:

Waistcoats made in a day = 2  / Total Sales (Price * 2) ?

Total Cost of Sale = £30 / Total Overheads = £100  (Total costs per day = £130)

Breakeven Point

Kay immediately sees that if she sets a price of £65 per waistcoat and makes and sells 2 a day she will breakeven! Then she realises she could set a higher price and make more money. But will anyone buy waistcoats priced at £65?

Competitor Research

Information, Kay tells herself, brings power and she immediately searches online to see how comparable waistcoats are being priced. She discovers that garments are available from £50 upwards and those of similar quality are typically around and above the £75 mark.

Kay concludes that if she prices her waistcoats at £70, they will be affordable to the customer, competitively priced and will ensure she is selling at a profit. The information gleaned from the competitor review has also helped her to promote the waistcoats so that prospects feel (rightly) that they are paying a very reasonable price for a first class high quality garment.

Most importantly, Kay feels she has a robust formula for working out future prices which means she can much more strategic in her thinking. In addition, she is more confident and informed about her wider business finances and now understands the fundamental relationship between costs, prices and sales figures.

You can read more about this subject on a number of good websites. The ‘Inc’ site is particularly useful and provides relevant pricing tips and advice. Likewise, if you are running a creative business, this financial information should prove very helpful.

Key Learning Points: To price effectively you must first work out your total cost of sales and overheads. Once you know your breakeven point and have researched competitors, you will make informed & confident decisions about pricing strategy.


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How to play the business dating game

Posted on January 3, 2011 by Peter Harrington

This article is accompanied by a warning.

Networking is a very important activity for people running start-up businesses, but it can kill you!

Worry not; there’s no evidence of widespread use of semi-automatics at events,  nor are consultants known for popping poisonous pills into pints.

However, there are some well-meaning people out there who regularly attend network meetings and possess a stealth-like ability to bore others completely to death.

The right mindset

Getting on with people is a very important skill in business. Entrepreneurial minds tend to be much more relaxed about meeting others for the first time and networking events are organised so that people can do just that.

Unfortunately, many people network with the wrong mindset – they focus on themselves and treat all the people they meet as potential customers or people to talk at. And unfortunately, the majority of people in business confuse selling with talking. To find out more on this dynamic, read: ‘Building sound business relationships from scratch’.

As a consequence, networking events are often dominated by people trying to sell to one another which can get rather dull. And once you have been talked at by more than one person on the subject of insurance, banking or image consultancy for example, you’ll notice that you become quite defensive and/or your concentration levels start to flag.

As a consequence, you’ll either get wound up and want to leave or you’ll fall into the same trap and start firing ‘talk salvoes’ back, all about yourself. It’s like two magnets with the same polarity squaring up to one another.

How should it work?

Ideally, networking events would attract buyers and sellers in equal measure but it’s a very rare thing. However, this powerful equilibrium is demonstrated perfectly in the world of hitchhiking because the hiker and driver are equal in number and actively seek something from the other person. Typically the hitchhiker is seeking transport and offers companionship; meanwhile the driver is seeking companionship and offers transport.

One of the underpinning reasons why hitch hiking works is the fact that neither party expects to pay or receive money (I did once offer to pay a driver because I was so relieved to get a lift but he rightly refused – we got on like a house on fire).

With no money changing hands there is no sense of expectation or failure. Everything is based on trust. People behave in a much more relaxed manner and are typically far more open and interested in the other person and their ideas.

Open mindedness

So to play the business dating game effectively, you need to focus not just on what you offer but critically on what you seek and might buy. Such an open-minded approach requires you to question and listen (avoids boring) and means you find suppliers as well as clients. By questioning and listening, you allow the other person to talk and discover all sorts of stuff which you didn’t know beforehand.

Importantly, being open minded also means you are able to discover creative ways to work in partnership with people. Rather than buying and selling from each other you can be innovative and work together to provide a fresh product or service to new markets that you had not previously considered. It doesn’t have to be complicated, it just requires you to look at what you both have, think laterally and be prepared to work together.

And if you can seek and forge effective partnerships, you will be very effective as well as popular on the business dating scene.

Key Learning Points: Networking is an important business activity but don’t fall into the trap of just telling people about what you do. Uncover new opportunities and partnerships by questioning, listening and keeping an open mind at all times.

Posted in Human Behaviour in Business, Sales and Marketing in Business | Tagged , , , | 2 Comments

Find success through continued failure

Posted on December 12, 2010 by Peter Harrington

At the start of any day hitchhiking, there’s always a feeling of nervousness. It typically happens just before you stick out your thumb or hold up a sign.

This is the moment of truth. You’re declaring your presence and your reason for being to all passing motorists.

On average, I reckon I would wait about 25 minutes for a lift. On a busy road, this meant a hell of a lot of vehicles passed me before one stopped. But when you are the exposed solo hitchhiker seeking that single lift, the cars don’t just pass you, they reject you! And after a while, it can hurt.

Rejection Hurts

But whilst many people gave me and my thumb the ‘thumbs down’, hitch hiking meant I faced up to rejection and learnt that the rejection process is ultimately a route to success. And it’s the same for the entrepreneur; you are rejected way more than you are accepted, especially in the early years.

 

Rejection implications

In the formative weeks and months of the first agency business I started aged 23, I went to countless meetings with ideas and proposals; but very few people wanted to buy  and sometimes not even listen. Failure to win work frustrated and dejected me but friends and advisers said not to take it personally and to persevere. Thankfully the occasional success kept me going and gradually the ratios improved.

Of course, no one likes to be told ‘No’ and therefore we are attuned to avoid it. And this behaviour is right at the heart of why many start-up businesses fail.

All businesses must sell to survive. This necessarily means spending time meeting new people and putting yourself in situations just like the hitchhiker who is seeking a lift. Unfortunately, fear of rejection cripples many people because they find it difficult and/or sometimes impossible to put themselves on the line with others. The result of course is no chance of a sale or insufficient sales. Either way the business ultimately dies.

Success strategies

No one has sold every time. Some of the most successful business people in the world have experienced the most rejection. Likewise, no hitch hiker has thumbed a lift with the very first car every time and the best travelled hikers are the ones who don’t give up. Important entrepreneurial qualities include a thick skin, perseverance and self-belief.

However, rejection is often accompanied by feedback and it’s crucial to take on board what people say in order to improve the chance of future success. Listening and acting on advice means your products/services have the opportunity to improve; and as sales increase so rejection ratios improve.

Finally, if you know you are bound for entrepreneurial life, my final suggestion is to find and attend an excellent sales training course. For reference, advice provided by the Sales Training Consultancy helped me a lot.

Unfortunately, sales has a bad name because most people who sell don’t receive quality training and/or think that sales is what a suited man does in a car showroom. A good course will help you to understand people and how to approach and handle sales as well as rejection. As a consequence you will be better able to start and grow your own business.

Key Learning Points: Rejection is part of entrepreneurial life. Whilst we don’t like being told ‘No’, you have to embrace it to succeed as an entrepreneur. Persevere & learn to improve business prospects & develop self-belief through the experience.

Posted in Entrepreneurship in Action, Human Behaviour in Business, Teaching Entrepreneurship & Business | Tagged , , , | 2 Comments

Open your mind to the behaviour of others

Posted on December 10, 2010 by Peter Harrington

Being able to read thinking and have an insight into peoples’ behaviour is a real advantage when it comes to entrepreneurial life. Some people find building relationships easier than others; but regardless of your own ability, the development of this skill is very important and it requires experience, practice and an appreciation of some behavioural theory (recommend Daniel Goleman – Emotional Intelligence).

In life we typically surround ourselves with people like ourselves. This necessarily limits our learning. Hitchhiking, much like business however, forces us to meet and get on with different people; and whilst I didn’t realise it at the time, the experience on the road taught me invaluable lessons that helped to make life in business easier.

Reading people and situations

Getting on with people in a car meant I travelled further. The questioning and listening strategy (highlighted in the previous article) typically worked very well but it didn’t take me long to tune into people who didn’t want to chat and/or reveal information about themselves. For the record, these people taught me how to deal with silence.

Then there were people who would happily talk but seemed to take no interest in me. The journey was memorable for the monologue – let’s say no more.  And occasionally I would get in a vehicle to be confronted by someone who was very strident with their opinions and seemed keen to argue.

But how do you draw meaning from these experiences?

In the nineties, a UK organisation (The Husthwaite Group) conducted extensive research into buying behaviour and as a result devised a behavioural model based on peoples’ levels of assertiveness and responsiveness (see diagram 1).

Diagram 1

The findings made for very interesting reading that not only concurred with my experience of working with people in business but also made sense of the behaviour of people I had met on the road.

The model divided people into 4 groups: Analysts; Drivers; Amiables; and Expressives each of which have their own behavioural characteristics based on levels of assertiveness and responsiveness.

Assertive people are confident and know what they want. They put forward opinions and listen to others. Conflict is not a problem and they will happily argue their case. People who are highly assertive can come over as aggressive (think about Alan Sugar). In contrast, people who lack assertiveness tend to focus more on the detail, are typically passive and others can take advantage.

Responsiveness is the extent to which people respond to us and our questions. Some people are very responsive and give lots of information about themselves, their problems and needs. Others are less willing or unable to respond in this way.

We are all different and few of us fit precisely into the model because our behaviour changes depending on the circumstances. But the value of this research-based theory however, is that it helps us to understand ourselves as well as other people. Used intelligently and regularly, this modelling helps us to nurture business relationships and helps us to understand people who are different to ourselves.

Hitchhiking taught me the value of reflecting the behaviour of the person I was with. The Husthwaite research reached the same conclusion about mirroring behaviour but takes this notion further because the model produces results in a meaningful manner.

As an outgoing person I am happy to voice my opinions and I like to talk with people – which puts me squarely in the ‘Expressive’ box’. However, when I recognise I am working with ‘analysts’, ‘amiables’ or ‘drivers’ I know I must alter my behaviour to get the very best out of them and the meeting.

Key Learning Points: Meeting different people expands our comfort zone and improves our ability to get on with people not like ourselves. Use experience and the theoretical model to understand behaviour and develop stronger business relationships.

Posted in Human Behaviour in Business, Sales and Marketing in Business, Teaching Entrepreneurship & Business | Tagged , , , | 1 Comment

Building sound relationships from scratch

Posted on November 19, 2010 by Peter Harrington

The car stops. Within seconds you’re opening the vehicle’s passenger door and eyeing the driver.

A short conversation ensues concerning the direction and destination of both parties. But in truth the verbal exchange simply masks the more important stuff, because the decision to accept a lift is never a small one. You’re checking out the driver’s appearance and the state of the vehicle; you listen to tone; smell the air. And if they’ve got company, there’s many more judgements to make.

Rugby legend

Sometimes the decision is easy and delightful. For example, whilst hitching north of Aberystwyth I opened the door of a large gleaming Mercedes only to set eyes on a world rugby legend sitting at the wheel. Then there’s the bizarre, like the time I slung back a minibus door to be greeted by a group of singing builders (with an unusual passion for scaffolding) . And of course, the real challenges; when your sixth sense (which is developed through experience) suggests something isn’t right.

And that ‘dynamic’ of meeting new people is the same in business. Entrepreneurs cannot wait for people to come to them. This necessarily means going out to see people and finding yourself in unfamiliar territory and different situations. This stretches the comfort zone and initially puts you out of control, but with practice and experience patterns of behaviour emerge and confidence grows.

It’s accepted that people are typically far less relaxed when they meet others for the first time. These first few critical seconds and minutes can be awkward. But just like the hitchhiker, the entrepreneur has a vested interest in developing their judgement skills, using time efficiently and being liked by people they meet. So get on with it!

Judgement Skills

First opinions about people are typically formed within 7 seconds.  As a hitchhiker I rarely spent much time talking about directions before getting in the vehicle. And I reckon I can count on one hand the lift offers I actually rejected. And these ratios reflect almost exactly my first-time meetings with people in business. Within 10 seconds I’ve decided the person in front of me isn’t a complete lunatic and it’s likely that the time will be well spent.

As with the hitchhiker, it’s important not to just listen to what people say when you first meet them. If you’re in their office what does the rest of the room tell you about them? How well do they dress? How much interest do they really take in you? How do they behave towards others who may be around? Answers to these questions provide clues about the person/people with whom you are dealing and you are able to adjust your own behaviour accordingly. You’ll find many other articles within this Blog that focus on the issue of Human Behaviour.

Getting people to like you

My unexpected meeting with Welsh rugby legend Gareth Edwards (and scorer of the greatest try in rugby history) will live with me forever. But  throughout that memorable journey winding through the valleys, I enjoyed listening to arguably the greatest Welsh rugby player to have lived, his take on that famous Barbarians try, how his career started and of course why he picked me up. As such, Gareth did most of the talking and I just listened. This simple dynamic works in a very powerful way and builds relationships because it is based on the following principle:

…the most important person in our own world is ourselves and given the opportunity we typically ‘like’ to talk about ourselves. 

Within the pages of the must read book ‘Influence: Science & Practice‘, author Robert Cialdini devotes a whole chapter to the issue of ‘Liking’. Critically, we like people who take a genuine interest in us and the easiest way to demonstrate this is to ask questions and listen to what people say.

The entrepreneur who bothers to take a genuine interest in prospects, customers, suppliers and staff makes people feel good about themselves and thus builds stronger relationships. By contrast, the person who talks endlessly about themselves falls into a common trap. They bore quickly and struggle to build quality relationships.

As a hitchhiker it was always my way to encourage the driver to talk about themselves. Not only was it interesting to learn about their lives, but they typically drove me further (Gareth very kindly went an extra 20 miles).

However, people are different and some are cautious about revealing information. When I hitched some didn’t want to talk at all. But by tuning into situations it was possible to adopt appropriate strategies that reflected the needs of the individual with whom I travelled.

Key Learning Points: Regularly meeting new people makes you a better judge of others and situations. Actively seek non-verbal and verbal clues to help you assess others and create a positive influence by asking questions and listening to the answers.

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Bootstrapping: My way on the business highway

Posted on November 11, 2010 by Peter Harrington

BootstrappingshoesFailure has a wonderful capacity to reveal opportunities that otherwise remain hidden.

Disastrous ‘A’ Level results in 1984  forced me to take a gap year. Whilst I envied friends destined for university, part of me delighted in the chance to step off the education treadmill.

Suddenly I was making choices, dealing with consequences and relying less on others. I quickly found a job (earning a pittance) in a Cumbrian hotel and subsequently worked at a field centre, school and finally an office. And hitchhiking became a way of life. Yes it made travel between places and jobs affordable but I realise now how it chimed perfectly with my new independent lifestyle.

And if like me, you thrive on responsibility and enjoy control over your own destiny, you are probably far more likely to want to start a business one day without being financially dependant on others. In other words, you’ll probably want to ‘bootstrap’ your business.

I left university in June 1989 with a degree and a four figure overdraft. But by working every hour (as a security guard of all things) at events such as Wimbledon and Ascot I managed to get myself back in credit and even put some money aside for starting my first venture that autumn.

Bootstrapping

As a result, I was able to ‘bootstrap’ my business and I didn’t have to go ‘cap in hand’ to the banks. It certainly never crossed my mind to go down the investment/angel route probably because their services were far less prominent 20 years ago. As an aside, I am somewhat sceptical about the amount of money and effort universities in-particular put into ‘high growth’ support services – I believe this issue is more driven by available public funding rather than real  business demand, which is completely the wrong way round.

By bootstrapping the first business I was also able to start as a sole trader. This meant I wasn’t subject to complex and potentially expensive partnership or Limited Company agreements and my tax situation was much more straightforward too.

As a bonus, this also meant there was no one telling me I had to write the dreaded ‘plan’. This lean approach to start-up has been researched and written about by academics, among them Colin Jones from Tasmania who has posted relevant materials on the following useful website: http://www.teaching-entrepreneurship.com/lean-startups.html

Bootstrapping like hitchhiking keeps things simple and you just have to rely on yourself. You get out what you put in but of course when things go awry there’s only you to sort them out.

This might sound scary but the highs in almost every business case I’ve ever known outstrip the lows. And importantly, as you travel along this route so your horizons for what is possible in your life expand almost exponentially.

But whilst going solo has real merit, it won’t take long before you’re having to work with other people. Whether you work with external partners or hire staff, opportunities to grow your business will present themselves and it quickly becomes impossible to do everything yourself.

Key Learning Points: Bootstrapping a business gives you complete control and means you are not answerable to any external funder/investor. This simplest of routes not only makes life easier but it also means you benefit from everything you put into your work.

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Getting a lift with good branding

Posted on November 8, 2010 by Peter Harrington

‘Unsafe’, ‘risky’, ‘dangerous’, ‘uncommon’ and ‘unadvisable’ were some of the words that people used to describe hitchhiking in a recent straw poll I conducted.

Okay, it wasn’t scientific research. Nevertheless, I’m fairly sure these negative feelings (or brand perceptions in business speak) are relatively commonplace. Whether it’s justified or not, hitchhiking in the UK has got itself a bad name and it’s perhaps no surprise to see far fewer people on the roads now compared to 20 years ago.

What can budding entrepreneurs learn from hitchhiking’s misfortune?

Brands are like personalities. A key driver of human behaviour is the need to be liked by others; so we shape how we look and come across accordingly. The same principles apply when branding a business.

So the first tip is not to fall into the trap of the ‘me first’ process when creating a brand. It’s too easy to create a name, choose colours, fonts and materials etc. that are based solely around what you as the business owner likes. You need to take into consideration how the target audience will respond and feel.

If you think about and consult your potential customers when considering and developing a brand, your product or service offering is far more likely to appeal to prospective buyers.

More haste less speed

The second lesson is not to rush the process. The brand identity is your eternal shop window; and if the detail is not thought through at the beginning it will look wrong, date quickly and adversely affect trade. The only solution will then be to re-brand and in effect start again which of course costs money and time.

Finally, some people confuse brands with logos. Whilst the creation of a logo typically needs careful thought and attention, it is only a visual representation of your overall brand and thus a small part of the whole branding exercise.

For more information on brand principles take a look at Branding Strategy Insider and Brand Identity Essentials. You are bound to find some great ideas that will help you to build your business brand.

Developing a brand that performs

As mentioned at the start of this article, the two words ‘Hitch’ ‘Hiking’ when used together evoke strong feelings in peoples’ minds. Unfortunately they tend to be negative feelings. Only two days ago a friend said he thought I was crazy when I suggested I’d hitchhike again later this year; there is no evidence to show hitching has become a more dangerous method of travelling. It is all perception, but perception is everything.

So when creating a brand, you are creating a personality for your business. You will naturally want people to react in a positive way to it. For example, if you are developing a hi-tech business you will probably want your brand to evoke the following feelings: cutting edge; reliable; professional; dynamic etc.

Alternatively, if you are looking to start a courier company you will probably want your brand to convey: reliability; speed; no hassle; ease of use etc. And all of this has to be wrapped up in the name, design, use of colours, strap-line, materials; in-fact everything that is customer facing and thus communicates the brand values.

Getting the message absolutely right takes time and money; so there is a good argument for keeping things as simple as possible to start, rather than worrying about too much detail. As your business progresses so the brand can be developed and enhanced in line with feedback and your personal aspirations.

Consistency

Finally, the brands that perform best are ruthlessly consistent – that word again. Think of people’s personalities that you really like and you realise that you enjoy their company because you know where you stand with them – they are completely consistent; unlike people whose behaviour is erratic, leaving you and others on eggshells or at a distance.

Throughout my hitchhiking ‘career’ the brand personality I conveyed at the roadside remained consistent. I always wanted people to see me as a non-threatening, easygoing individual who was travelling with a purpose.  Given the chance, I would always look at the driver and if eye contact was gained (regardless of the Anglo Saxon expressions and gestures I occasionally received) I would smile.

It worked for me and when I go hitching later this year all those principles will be applied again. I look forward to thumbing lifts and travelling far this year…

Key Learning Points: Treat your business brand as a personality and shape it so that prospects and customers see you in a positive light. Being ruthlessly consistent with the brand means your customers won’t be confused about what you do and offer.

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The Importance of being focused

Posted on November 8, 2010 by Peter Harrington

From an early point in my self employment journey I regularly used the following four questions to help look forward in business and focus on what I wanted to do:

  • Where have I come from?
  • Where am I now?
  • Where do I want to go?
  • How do I get there?

Of course, the question structure isn’t rocket science and makes regular appearances in good strategic planning books; but it appealed to me because of its simplicity and link to everyday life. For the journeying hitchhiker of course these four questions are easy to translate. For example: I’ve come from Bristol; I’m at junction 2 of the M42; I want to go to Coventry; I’m going to hitch at least one more lift to get there today.

Business exercise

If you consider the 4 bullet points for own business (or business idea) you shouldn’t find it too difficult to answer the first two questions. Be brief (one side of A4 max), stick to key facts and focus on issues to do with: yourself, finance, customers, resources (including staff if you have them), sales and of course your own product/service.

Answering the third question however is typically more demanding. But importantly, the thinking process will help illustrate and define the true focus of your business. If you can write down in no more than 5 minutes precisely where your business is going and remain very confident about the answer, then you have focus.

However, if the question about where you are going ties you in knots, elicits different responses or leaves you without an answer, then the chances are that the direction of your business is in need of attention.

No direction? Danger…

Market and competitor research helps define clear target markets for businesses to aim at. However, a business that is unable to define its customer base (insufficient research) has little or no focus; as a consequence everyone is seen as a potential customer. And then this happens: Sales and marketing activity is based on guesswork and uninformed, generic promotional messages are written which hope to appeal to anyone who might see them.

This unscientific yet frighteningly common approach is not only highly inefficient, it also drives businesses to the wall.

And it’s easy to see the parallel with hitchhiking. The hitcher who accepts a lift with any passing vehicle, without first checking where the driver is going (research), ends up in trouble. Without focused direction there is little chance of reaching the destination on time if at all.

Being focused on a clear direction also helps to ensure that business strategies and processes are kept ‘simple’ and ‘consistent’,  two very important principles I will write about again.

Asda Walmart for example, has a very simple and consistent message of ‘lowest price’ and this mantra is known right throughout the organisation – and it means thousands of people who work there know always to focus on low cost and efficiency.

Finally, once you know where you are going, you have to work out how you are going to reach your goal. There may be many route options although practical stuff like your budget and time-scales will limit choice. But like the hitchhiker who is standing by the road for the very first time, you must not be daunted by the prospect of making decisions and thus mistakes – it’s inevitable. So decide how you are going to reach your goal and then go. You are at least guaranteed to learn much on the way.

Key Learning Points: Knowing the markets you want to serve should define the direction of your business. Use the 4 point plan to keep sales and marketing work focused and consistent; this way you are far more likely to reap returns.

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Why knowing your competitors gives you the advantage

Posted on November 8, 2010 by Peter Harrington

Watford Gap Service Station on the M1 is the only place where I have encountered real competition for a lift. Hitchhiking north from London one sunny Sunday afternoon, I was dropped off at the services only to find myself staring at a long queue of hitchhikers all desperate to travel my way. Buggar!

Fortunately I formed a quick plan to get around the problem. This idea was entirely based on knowing how my fellow travellers and drivers behaved. I just had to be different in order to get moving again.

And it’s the same in business. If you want to stand out from the crowd you have to know how the crowd behaves, so that you can be seen and chosen by customers.

Competitor research

Through observation, primary/secondary research, mystery shopping, in fact whatever legal information gathering approach works for you, you need to know what your competitors are doing. You need to know their prices, how they promote themselves, what makes their product/service special and more. You then can use this information alongside your market research to make informed decisions and thus position your product/service so that it has the greatest chance of being sold. The Stalker’s Guide to Competitive Research available on the Blueglass Blog offers a lot of practical ideas on this subject.

But for many businesses, understanding their true competitive situation is not necessarily as straightforward as observing the Watford Gap queue. Take Tourism attractions as an example; it’s not just other attractions they need to monitor. Tourism attractions are competing for peoples’ time and as such there is a lot of indirect competitor activity to consider. For more helpful theory see Michael Porter’s Five forces of Competitive Position Model or use the library of websites and articles collected by Cayenne Consulting which are all designed to help startups complete competitor research.

If you don’t think deeply enough about your competitive position you risk living with a false sense of security. People who believe they don’t have any competitors because their ‘product/service is unique’ are only kidding themselves and risk a painful fall much later.

Thinking differently

When I first saw the Watford Gap queue my heart sank because the reality of my situation was so stark. Yet these moments are defining. Starting and running a business is akin to walking into a meteorite storm – but you can’t just give up because you don’t like what’s being thrown at you. Invariably the solution to the problem being faced is closer than you think – you just have to assess your competitive position, think differently and if necessary be brave.

From all my market and competitor research I knew that hitch hiker queues were uncommon. I also knew that if a vehicle was going to pull over, the driver wanted time to judge the hiker and the relative safety of the situation. As a consequence, I reasoned that the best place to stand to get a lift was at the back of the queue, plus about 10 metres. Get on the edge and stand out from the crowd*.

Apologies if you were in that queue back in 1986; I was picked up within 5 minutes. Two guys in a car with canoes on the roof-rack screeched to a halt and shouted at me to get in quickly. They read the situation too. Looking in his mirror the driver could see several other peeved hitch hikers making for his car. But within 30 seconds we were gone. In the next five minutes I was moving again thanks to some basic analysis and preparedness to be different and work the situation to my advantage.

And that’s my last point in this post. So many businesses in every industry conform to unwritten rules and thus behave just like their competitors. As a result they camouflage themselves and make it difficult for people to make an informed choice. It’s only when a new player comes along, behaves differently and takes a chunk of the market that they sit up and take note – and sometimes it’s too late.

Key Learning Points: No product or service is unique and to stand out in any market you must know who you are up against. Innovate and be different so that potential customers not only know where to find you but also beat a path to your door.

 

*Not sure who first said this, but I heard the cricket commentator Phil Tuffnell quote it on the  radio. It’s very true. “If you’re not on the edge, you’re taking up space.” 

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How market focused businesses go further faster

Posted on November 8, 2010 by Peter Harrington

What is the best question to ask in market research?

When starting up far too many businesses don’t ask any meaningful questions at all. Instead they focus on the product or service they offer rather than the market being served. Research is considered a distraction rather than the guiding light to doing good business – and it’s a key reason why so many businesses fail early on.

If you want more evidence on this subject just watch ‘Dragon’s Den’ and see how many ‘failed’ presenters know their product inside out but their market knowledge is guesswork at best.

Market research has to be right up there in the Hitchhiker’s Guide. If you don’t observe, note and understand the ‘rules of the road’ you won’t travel very far. And as a rule of thumbing (sorry), once I was in the vehicle I would typically start an early conversation by seeking to better understand why drivers chose to offer me a lift. And that’s the best question in market research: “Why?”

The question ‘why?’ naturally seeks deeper reasoning and thinking. Asked in the right tone, the respondent is invited to provide invaluable detail. And the resulting information allows you to learn about and ultimately make subtle but absolutely critical changes to aspects of your product or service. Basic market research (what? when? how? etc.) should highlight demand levels but if your offer doesn’t ‘unpack’ in just the right way to customers, then sales can be hugely affected.

Find out what people want & provide it

Hitching taught me very quickly that a large rucksack spoke volumes to passing drivers. A rucksack, I was told, was non threatening; it suggested I was travelling with a purpose; and people warmed to the idea that they were helping someone who they believed had been living in the great outdoors. On this note of behavioural understanding, I recommend you check out ‘semiotics’ because this fascinating subject is going to be a fast developing field of study over the next few years.

People also commented on the merit of where I should stand on the roadside – it was important to them that they had time to see me, make a judgement and pull over with relative safety. My appearance was also an issue to (I was never scruffy nor overdressed) but people were divided over whether I should be using a sign or just my thumb (more about this when I write about promotion).

Fortune favours the brave (and wise)

Observing peoples’ behaviour and using research to modify my roadside ‘offer’ never stopped. A journey that started in Fort William and ended in York (1988) demonstrates the benefit of knowing what people want.

I knew it was a long-shot covering the 350+ miles in a day so I needed to stack the odds as best I could. Research showed there was no ‘driver-friendly’ place to hitch from (on the road out of Fort William) and so I arranged for a friend to drive me a few miles into Glen Coe, where I was dropped off at a roadside lay-by with a great view back down the road.

There was very little traffic in the Glen that day. But the clarity of the air meant I saw every vehicle long before I heard it. After 25 minutes only 3 vehicles had passed by. Then a wagon became visible in the distance and it slowly made its way up the valley towards me. Stood at the end of the lay-by I put my thumb out so the driver had a good view of me for at least 200 yards. At the last minute, the air brakes went on and I knew I was in luck.

Better still, when I climbed the cab stairs and opened the door to tell him I was headed to York, his smile widened. With a friendly Yorkshire accent, he let me know it was my lucky day – he was off to Doncaster! Full of enthusiasm I got in the cab and it wasn’t long before I asked him the ‘why?’ question. He told me that he liked to pick up hitchhikers for the company, but if I had been stood anywhere else in the Glen he probably wouldn’t have seen me or been able to stop safely. My day could have been completely different.

And these and many other questions were asked every time I hitched – just as much as market research should be a continuous exercise with potential and existing customers. Like my travels, it doesn’t mean you have to devise formal questionnaires or organise expensive focus groups – so much gold-dust can be extracted by asking critical but simple questions of the right people at the right time.

But knowing the market is one thing; you must know your competitors too.

Key Learning Points: Focus on the market so that products or services you develop are demand led. Use the ‘why’ question to really understand what motivates your customers and drives them to make decisions that affect your business.

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Death by business planning?

Posted on November 8, 2010 by Peter Harrington

My decision to hitch that cold, blue-sky October morning, was pure instinct. In fact, if it had been planned in detail, it probably would never have happened.

Stood alone at the Keswick bus shelter not long after an autumn sunrise, I discovered it was going to cost me a whopping £12 to get to Nottingham. Aged 17, that was a lot of beer then (1983 – 65p per pint).

And it promised a dull 9 hour trip which somehow included a double ‘loop the loop’ around Lancaster’s University campus. Get me out of here…

With a freshening plan I hauled my bulging Jag rucksack onto my back. Sensing the start of something exciting and new I walked the mile or so through the sleepy Cumbrian town to a roundabout and more importantly the A66. My hitchhiking career was about to start.

Forethought

Given the reputation of hitchhiking, I hadn’t exactly spent much time carefully weighing up the pro’s and con’s of the activity. Nor had I given much thought to the best route; and certainly hadn’t bothered to phone anyone to tell them what I was doing.

I see it this way… the excitement brought about by doing something new combined with the joy of seeking to overcome the odds (on my own), simply took control. I knew I just wanted to hitch; time spent thinking and planning was a potential threat, because it might take away the emotional high I had just given myself.

Entrepreneurial parallels

Interestingly, I see this ‘instinctive action’ parallel all the time with budding entrepreneurs. People starting their first businesses often become completely focused on and tuned into what they want to do and can actively avoid both advice and what they may see later as common sense actions. Very occasionally people in this tunnel mode are right to do what they are doing, but most of the time they are making foolhardy mistakes and only seek advice later once they recognise its value.

So is sitting budding entrepreneurs down and getting them to think and write a business plan the answer? In my opinion, the answer is ‘probably not’. People keen to start a business, or get going with their idea, learn best by doing. No amount of formal planning will help them if there is no practical framework within their minds with which to attach the learning and thus make received wisdom meaningful.

Therefore, presenting business planning modules or competitions to budding entrepreneurs by way of an introduction to the subject is open to serious question. Without an applied context the subject is largely meaningless and is simply subject to student guesswork and hope. This excellent article from ‘Innovation Excellence’ fleshes this point out more thoroughly.

And in all my experience of reviewing plans formed in academia, the quality of the output bears this statement out. However, this does not mean that people shouldn’t develop the ability to plan and think ahead.

Building mental models creates meaning

Just like the hitchhiker, the budding entrepreneur learns quickest (and in the most meaningful way) by experiencing the journey first. Practical experience, mistakes and most importantly a contextual framework formed within the mind creates a desire (critical tipping point) to seek information and ask for relevant advice.

People will naturally find their own speed, path and level of dependence on the teacher/advisor and as a consequence they can be taught/trained in a flexible/personalised manner according to behaviour and need.

Nurtured well, the budding entrepreneur will ultimately recognise the business plan as a meaningful and valuable document which they can write with confidence and understanding. As this Harvard article shows, clarity of purpose and passion must come before the plan to seriously raise the chances of ultimate success. Of course, the plan then adds huge value if it is being used to raise money or attract stakeholders. But this all takes time and practice.

The journey from Keswick to Nottingham did in fact take over 9 hours. Arriving in the dark outside my parents’ house, I had received 6 different lifts, experienced much of the M6, walked nearly 5 miles between one hitch and even enjoyed the company of the 1983 ‘Veteran driver of the year’. I was ecstatic and full of stories. As importantly, I decided it would be a good idea to always hitch with a map in future. If I had journeyed over the A66 to the A1 (rather than down the M6), I would have arrived in Nottingham in half the time.

Key Learning Points: Well written, business plans are an important communication tool. However, creating plans as a starting point for learning is not a good use of time especially if the budding entrepreneur has no previous practical experience.  

 

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The Hitchhiker’s Guide to Entrepreneurship: Introduction

Posted on November 8, 2010 by Peter Harrington

Being entrepreneurial is an attitude of mind. It’s not so much a skill, it’s a way of thinking. It really is that simple and for me shouldn’t be over-complicated because more funds are made available for research.

I’m sceptical and occasionally cynical about the amount of research money that is devoted to the questions: ‘What makes an entrepreneur?’ and ‘Can you teach entrepreneurship?’ A research piece that answers the question ‘How much public funding is devoted to answering these two questions?’ would probably be far more definitive, revealing and eye-watering.

I always think about how and why I became a so called ‘entrepreneur’. The decision to start my first business in September 1989 (aged 23) may be considered a defining moment but there’s far more to it than that. One thing is for sure, I now know the choice to go it alone was inevitable, given who I am and what makes me tick.

So in seeking to understand myself, I’ve raked over my younger years and looked hard for the signs and clues that made self-employment the natural choice. And every-time I do, I find hitch-hiking holds so many of the answers – sometimes in spades.

I started hitch hiking aged 17 and last journeyed with the aid of my thumb just short of my thirtieth birthday. Tens of thousands of miles were covered (mostly in the UK) and I loved just about all of it. I met some extraordinary people, some idiots and even one very well known celebrity. Not once was I assaulted. Nor did I ever get into a vehicle and proceed to beat up the driver; even the limited talents of the occasional driver made me think I was facing certain death.

Over the next few weeks and months I’m going to write about my experiences, the mindset of the hitch hiker and how why I believe the entrepreneur lives in exactly the same space.

Please feel free to feedback your thoughts.

Peter Harrington

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Thanks to SimVenture

Posted on November 7, 2010 by Peter Harrington

Success with the business simulation ‘SimVenture’ means I now frequently travel to different parts of the world.

As with hitch hiking I love to be on the move. But unlike my hitch hiking days I now get to stay in decent accommodation at the end of the day – which with the aid of the Internet and a laptop I always turn into a temporary office.

On a recent trip to the States I arrived at my hotel late in the evening. Having journeyed across several time zones, bed was the only thing on my mind. But whilst I was dead to the world by 10pm, I found myself wide awake at 3am local time. Whether it was a dream or coincidence, hitch hiking in Cornwall of all places was on my mind. You know what it’s like when the most odd things go round and round in your head.

But thinking a little more in the darkness of the room and with the air con buzzing behind my ear, I began to make links between the entrepreneurial life I was leading and my time thumbing lifts on the roads around Britain. The more I thought the more links I made. Within ten minutes I was at my computer writing my first notes for this blog.

So thanks to my work with SimVenture, the The Hitch Hiker’s Guide to Entrepreneurship was started. I really hope you like it.

Peter Harrington – Author

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Bringing a revolutionary idea to life

Posted on May 20, 2013 by Peter Harrington

Birth2This month will see the launch of ground-breaking communication technology that will open up a whole new era of global possibilities for smart phone and tablet apps.

The functionality and quality of the product is jaw-droppingly impressive. And the market for this new technology is immense. But for me, this story is as much about the imagination and  perseverance of the people behind the product’s creation.

 

Inspiring

What is so inspiring and telling is the fact that a Yorkshire entrepreneurial duo came up with a highly innovative idea, developed it over 18 months and now stand on the edge of revolutionising how billions of people receive, interpret and share information.

Remarkably, neither of the two individuals has ever worked in a large corporation and only one possesses real technological expertise. And the idea for the product came about as a result of another conversation (read: Start now and value the journey) and throughout the R&D uncertainty and risk were constant companions.

Highs and lows

Over the last 18 months I’ve been fortunate enough to share some of the highs and lows of their enterprising journey. Concepts have been developed and ditched; trips to the extended development team in Hyderabad have been numerous but not always straightforward; securing investment was critical but far from easy; and persuading potential clients to view prototypes reinforced their belief in the product but absorbed immense amounts of time.

But when I met with the two entrepreneurs (James and Chris) in a quiet local pub earlier this month they showed me the first product that’s due for release by the end of May. My head was left spinning at the quality of their work and the implications for the technology’s use. I also quizzed them about market sectors and clients they could approach.

Creating demand

Over the next 5 minutes both James and Chris reeled off brand-leaders in the sport, media and tourism industries with whom they were already talking with or actually about to work. Doors it seemed were being opened for them. Their technology was in high demand on a global scale before the product was launched.

So I asked James whether it was time now to sit back and let the orders pour in.

“I wish it was,” he replied with a nervous smile. “The hard work is going to continue for a long time before I buy my first Sunseeker. We have some amazing clients lined up – in lots of different sectors, but rapid scaling up of our business to handle our anticipated growth is part of the challenge – and the fun!”

Back to the future technology

So what is their revolutionary idea and why is it going to make such a big impact?

Real people (or characters) are placed in augmented reality presentations that educate, inform and entertain viewers. Using your smart phone or tablet, static images appear and then are suddenly brought to life. Critically, our device automatically recognises the environment you are in – thus making the image highly authentic and believable.

The opportunities for this technology across industries are far-reaching. For example: Adverts will jump to life off the page or billboard; Kids anywhere in the world will watch their favourite footballers perform tricks in their own home; Museums and tourism attractions will interact far more with visitors yet at a fraction of the cost of using actors. And then there’s construction, transport and of course, education!

The company’s first apps include the official Guide to the City of York, an award winning museum, Rangers FC and their ownbrand ZooMob, which brings real wild animals into the home, school or elsewhere – and lets you take photographs of your friends and family with lions, tigers and bears amongst other exotic creatures.

I asked the two entrepreneurs how they had come to think up and invent such a radically new concept and Chris replied; “By starting out and asking ourselves what people might want from smartphones and then working out how to make it happen. We didn’t know much about phone apps when we began but, as Albert Einstein observed: ‘Imagination is more important than knowledge’”.

Key Learning Points: Technology offers widespread opportunities and there’s probably never been a better time ever to bring ideas to life. The powerful combination of imagination, talent, commitment and hard-work can have stunning results.  

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