Last Lecture

If you had one final lecture to share with a group of students on what you have learned from this course, what would you share?

I'd say you should learn as much as you can, because if you have a dream to become an entrepreneur and you want to start your own business, you need to be prepared. Of course you are going to go wrong on some things, but the more prepared you are, the better it will be for you. Do not give up on your dream nor procast, just prepare and observe, so that when an opportunity arises you can recognize it. In this course I had the opportunity to study some case studies and get to know the experience of some successful entrepreneurs, their advice was extraordinary.

What would be your last bit of advice to someone wanting to begin the entrepreneur journey?

Before entering into any business, it is important to learn about the industry of this business. This will help you with every aspect of your business. Being aware of the industry will allow you to see in a timely fashion any changes that have taken place in the industry over the years. This will allow you to adapt your business and adjust to industry changes.

What words of advice, direction, or caution would you give him or her if you had only one chance to give your own last lecture?

In managing a business, many different situations may arise. Some of these situations may shake the values if they are not well based on the personality of the entrepreneur. Regenerating our business by the values that define us and that we want to pass will define our actions. We must establish our limits now so that later we will never be in doubt whether to put them into practice or not.

Put God in everything you do, for He knows our desires and our abilities. He has the ability to bless us and open the doors that men do not know (or do not want) to open.

Set quality time for your family. Remember "No success compensates for failure in the home." Make your family a priority in your life.

Lesson 13 - Failing Forward

I am continuing with my “Fabulous Exchange Project” and I did the final presentation of the $100 Challenge and gave to my colleagues to appreciation.

From “Treat Life As an Experiment” by Tom Kelley, IDEO:  “Sometimes it works out, and sometimes it doesn't. Just ask Thomas Edison, the makers of WD-40, and vacuum guru James Dyson - who collectively tested thousands of ideas before finding a handful that stuck. But the point behind the practice of experimentation in innovative thinking, says IDEO General Manager Tom Kelley. Take risks frequently, and be prepared in case the resulting action fails to meet your expectations. Fail forward, and there will be learning from your mistakes along the way.”

From the speech of Thomas Monson “Great Expectations”

Prepare for the Race of Life

"The writer of the book of Ecclesiastes wrote,the race is not to the swift, nor the battle to  the strong” (Ecclesiastes 9:11); it is to him who endures to the end. The race of life is so important, the prize so valued, that great emphasis must necessarily be placed on adequate and thorough preparation."

Prepare Academically

"This is important because it is here that we learn the lessons which will help us meet the challenges of this changing world in which we live"

Put Forth the Effort

" Many years ago I had the opportunity to teach at the university level, and I remember that some students seemed to know where they were going. They applied themselves, they had objectives, they had goals, and they worked toward the achievement of these objectives and goals."

Prepare Spiritually

"Greater than our period of academic preparation is the matter of spiritual preparation. We must acquire for ourselves a testimony of the gospel of Jesus Christ, which testimony will be an anchor to our soul."

 "As your preparatory period at school comes to a close and you embark on the great

race of life, may I suggest some helpful hints which will assist you to achieve your great expectations."

Avoid Life’s Pitfalls

First, avoid the pitfalls in the track. Avoid the detours which will deprive you of your celestial reward. You can recognize them if you will.

They may be labeled “Oh, just this once won’t matter” or “My parents are so old-fashioned.” Bad habits also can be such pitfalls. At first we could break them if we would. Later, we would break them if we could.

Persevere Toward Goals

Second, beware of the flashy start and the fadeout finish. I love the simple wisdom found in this poem by an unknown author. I don’t think

it’s a literary masterpiece, but you can understand it.

Stick to your task till it sticks to you;

Beginners are many, but enders are few.

Honor, power, place, and praise

Will come, in time, to the one who stays.

Stick to your task till it sticks to you;

Bend at it, sweat at it, smile at it too;

For out of the bend and the sweat and the smile

Will come life’s victories, after awhile.

Help Others

Third, help others in their race of life.

Remember that when you help another up a mountain, you are a little nearer the top yourself. Try to look at your brother or your sister in the right perspective.

Seek the Lord’s Help

Fourth, and finally, seek the help of the Lord. Souls are precious—your soul and my soul. Our Heavenly Father Himself has said so.

Remember that we do not run alone in this great race of life; we are entitled to the help of the Lord. To the Hebrews the Apostle Paul urged: Lay aside . . . sin . . . , and let us run with patience the race that is set before us, Looking [for an example] unto Jesus the author and fi

Lesson 12 – Buyouts and Family Businesses

I am still working in mu $100 challenge and I am preparing its final Power point presentation.

Acton Hero Erick Slaubaugh

When he was 19 years old, Erick Slabaugh did wanted to go to college but joined his father's business in a time of need after losing a major client.

Erick Slabaugh is the second generation of entrepreneurs in the family, as he said: “Entrepreneurship can be an adventure, but it also carries with it responsibility.”

At the beginning of his business, Erick had to work weekdays and weekends, and the profit from his work did not pay off as much as what his friends made and still had time to enjoy the weekend. But as he said, today the situation has reversed itself. There were times when he did not find himself a lucky one, especially when his friends had fun and he had to work.

He mentionated that:  to start a business, it takes courage. When he was a young entrepreneur, he did not asked questions so he would not frown on his salespeople, but he said that the older he is, the more mentors he has, and he recognizes how much would have been wise if he had recognized value of mentorship when he was young.

From his experience he tells us that we should invest in something that we know.

“There is a lot of accountability but it is incredibly rewarding if we use our values ​​to be our guides in difficult decisions.”

Succession planning

 Definition

Identification and development of potential successors for key positions in an organization, through a systematic evaluation process and training. Unlike replacement planning (which grades an individual solely on the basis of his or her past performance) succession planning is largely predictive in judging an individual for a position he or she might never have been in.
(http://www.businessdictionary.com/definition/succession-planning.html)

http://www.faithresources.com/assets/downloads/Succession_Planning.pdf

Ten Key Steps to Effective Succession Planning By William J. Rothwell, Ph.D., SPHR

“Succession planning requires more of a commitment to a longer-term, strategic view of how to meet talent needs than short term, and sometimes panic-driven, efforts to fill vacancies as they occur. It can be established and operated using ten key steps that have been field-tested in many organizations, industries, and economic sectors. 

Step One: A first step for any systematic succession effort is to clarify the senior leaders’ expectations and preferences for a succession program. After Sarbanes-Oxley, corporate Boards have become more active in succession planning. A fundamental mistake, and a formula for disaster, is to dump the responsibility for the succession effort on the Human Resources department.

While the Human Resources function or other parts of the organization must participate, the leadership responsibility for succession planning rests with the CEO. If he or she does not favor systematic succession planning, it cannot be successful.

Step Two: A second step is to establish competency models by talent pool considering the positions that will be fed by that pool. A competency model is a narrative description of the knowledge, skills, attitudes, and other abilities that lead to exemplary performance. Competency models provide blueprints of the talent to build at present and in the future. In short, a competency model describes “what should be” for such hierarchical levels as executives, managers, supervisors, salespersons, technical professionals, or other groups. Alternatively, competency models may be created for specific departments. A recent innovation in some corporations has been to articulate the organization’s ethics, values and code of conduct and then rate individuals against that as well as against competencies. Ethics, values and codes of conduct provide a basis by which to assess individuals against a dimension that goes beyond what it takes to get good results on the job

Step Three: A third step is to conduct individualized multi-rater, full-circle assessment. The idea is to assess individuals against the competencies required for success in an organization. The results of a multi-rater, full-circle assessment usually indicate gaps between what competencies an individual currently possesses and what he or she should possess to be successful.

Step Four: A fourth step is to establish (or reengineer) an organizational performance management system. One fact of life is that individuals are seldom eligible for promotion, advancement, or other developmental opportunities if they are not performing successfully in their current jobs. Individuals must thus be measured, as objectively as possible, against the performance expectations for their current level of responsibility.

Step five: A fifth step is to assess individual potential for success at higher levels of responsibility. Unlike past or present-oriented performance management, potential assessment focuses on the future. Some means must exist to examine the talent available for future possibilities--and advancement. Regular potential assessment provides the means to do just that.

 Step Six: A sixth step is to establish a means of regular, ongoing individual development planning. Once it is clear what present and future gaps exist for individuals as a result of performance assessment and potential assessment, some means should be established to help them prepare for the future by narrowing those gaps. To that end, individual workers--and their immediate supervisors--devise a plan to help individuals develop themselves and thereby prepare for possible future promotions.

Step Seven: A seventh step is to implement individual development plans (IDPs). There are various ways by which to do that. One way is to establish in-house leadership and management development programs. A second way is to develop competency menus, in print or online, that provide specific developmental suggestions for individuals. Examples of developmental suggestions might include books to read, classroom courses to attend, online courses in which to participate, on-the-job assignments to seek out, and action learning projects that bring together groups of people to solve practical business problems while simultaneously permitting the means by which to build competence in new areas.

Step Eight: An eighth step is to establish a talent inventory. Increasingly, decision-makers must be able to find the organization’s talent on short notice. To that end, they must have information about the pools of talent that the organization is developing and has readily on tap so that teams can be marshaled on short notice to fight fires, seize opportunities, outdraw competitors, and fill vacancies. As part of this step, it may also be useful to create depth and development charts to show how many people fall into different categories. Different HR strategies may be needed to manage individuals in different talent grids. 

Step Nine: A ninth step is to establish accountability for the systematic succession planning effort. Individuals—and their bosses—must be held accountable, for cultivating their talents over time and closing developmental gaps. Otherwise, individual development plans will not be realized. Often, financial incentives for talent development can help. For instance, individuals can be given bonuses if they achieve their developmental objectives, and supervisors can be given bonuses if their workers achieve their developmental objectives. Alternatively, periodic meetings may be held in which individuals must report on how well they are implementing their individual development plans, and senior executives may report to the CEO or the Board on how well their employees have been progressing toward realizing their individual development plans.

Step Ten: A tenth and final step is to evaluate the results of the systematic succession planning effort. Often, the time-to-fill metric is a key measure of success. How long does it take to fill positions with qualified applicants? While not directly a financial measure, the time to fill does translate into financial terms. Productivity is lost, and so are opportunities, when vacancies exist in today’s right sized corporate settings

What Common Mistakes Are Made in Establishing Succession Planning, and How Can They Be Avoided?

Many mistakes are commonly made in establishing succession planning programs. They are worth enumerating. It is also worthwhile to describe some ways to avoid these common mistakes.

Mistake #1: Assuming that Success at One Level Will Guarantee Success at Higher Levels. An individual’s success at one level is no guarantee of success at higher levels of responsibility. The reason is simple: the competencies required for success at each level are different. Hence, it is important to separate thinking about how well someone does his or her current job and how well he or she might do a job at a higher responsibility level.

Mistake #2: Assuming that Bosses Are Always the Best Judges of Who Is Promotable. A second mistake is to assume that, for purposes of succession planning, bosses are always the best judges of who is promotable. That is not always true. Bosses are self-interested players in the succession game. They have a stake in what happens to people. Indeed, some bosses do not want to see their best people promoted for fear of an inability to replace them. Some bosses grade people by their own standards—with the result that some individuals who are quite unlike the boss are not considered for promotion. While the support of a boss is useful in developing individuals, more objective assessments, such as multi-rater assessment are excellent in aiding the manager’s assessment.

Mistake #3: Assuming that Promotions Are Rewards. Some employees have an entitlement mentality in which they feel that long service with an organization should always be rewarded with promotions. But business decisions must be based on who will do the best job, not who is “owed” a promotion because of greatest seniority. Workers must continually be reminded that doing jobs at each level requires different competencies, and the best way for them to compete is to prepare for future challenges rather than expect promotions for past performance at a different level of responsibility.

Mistake #4: Trying to Do Too Much Too Fast. The strong results-orientation of many organizations today emphasizes quick results. Senior leaders expect to see all the components of a comprehensive succession system in place immediately. That is not always realistic. It is advisable to think of implementing systematic succession in a phased way—either from the top down or else starting in specific divisions or locations with greatest need.

Mistake #5: Giving No Thought to What to Call It. A fifth mistake is to devote no time to considering what to call the succession program. As any marketer knows, product names do matter. It is not necessary to call a spade a spade. Many organizations choose alternative names--such as “leadership development program,” “human capital management program,” or even “talent program.”

Mistake #6: Assuming that Everyone Wants a Promotion. A sixth mistake is to assume that everyone wants a promotion. That is not always true today. In many downsized organizations, workers have seen what pressures their bosses have to deal with. Some say “leave me out of that.” Hence, it is unwise to assume that everyone wants a promotion—or even to assume that money will convince everyone. It will not. Check first. Find out what people want to do. For that reason, many organizations launch both a top-down succession planning program and a bottom-up career planning program to galvanize development efforts both among managers and among individuals. 

Lesson 11 Franchising

I am working on my $ 100.00 challenge. I continue to place the ads on the OLX site to sell second hand articles. This week I made two sales.

L12 Activity 05 Acton Hero Erick Slaubaugh

When he was 19 years old, Erick Slabaugh did wanted to go to college but joined his father's business in a time of need after losing a major client.

Erick Slabaugh is the second generation of entrepreneurs in the family, as he said: “Entrepreneurship can be an adventure, but it also carries with it responsibility.”

At the beginning of his business, Erick had to work weekdays and weekends, and the profit from his work did not pay off as much as what his friends made and still had time to enjoy the weekend. But as he said, today the situation has reversed itself. There were times when he did not find himself a lucky one, especially when his friends had fun and he had to work.

He mentionated that:  to start a business, it takes courage. When he was a young entrepreneur, he did not asked questions so he would not frown on his salespeople, but he said that the older he is, the more mentors he has, and he recognizes how much would have been wise if he had recognized value of mentorship when he was young.

The steps for a “Succession planning”

The steps outlined below provide a roadmap for larger organizations interested in developing succession plans. Different organizations will implement these activities differently. While there is no right or wrong way to develop a succession plan, the following provides important components that need to be considered.

Step 1

Identify key positions for your organization. These include the executive director, senior management and other staff members who would, for their specialized skills or level of experience, be hard to replace. Ask yourself which positions would need to be filled almost immediately to ensure your organization continues to function effectively.

Step 2

Review and list your current and emerging needs. This will involve examining your strategic and operational plans to clearly articulate priorities.

Step 3

Prepare a chart that identifies the key positions and individuals in the organization. The positions might include those listed in step 1 and/or others that are pertinent to your organization, such as volunteers.

Step 4

Identify and list the gaps by asking questions such as:

·         Which individuals are slated to or likely to leave (through retirement, project completion, etc.) and when?

·         Which new positions will be required to support the strategic plan?

·         Which positions have become or will become obsolete (for example, those related to a program that has been terminated)?

·         What skills and knowledge will need to be developed (for example, to support a new program)?

Step 5

Evaluate/assess all staff members with the goal of identifying those who have the skills and knowledge or the potential along with the desire to be promoted to existing and new positions.

·         The evaluation can be formal or informal and can include, but is not limited to, performance reviews, 360 degree assessments and informal conversations with the individuals under consideration.

·         The executive director may be aware that an employee has aspirations to and the capacity to move up. This may be an opportunity to recognize this goal and support it.

·         Take this opportunity to give younger workers a chance. Many young people enthusiastically enter the sector and then, finding few opportunities for advancement, leave. Younger workers can remain engaged if you help to match their interests to opportunities provided through effective succession planning.”

(http://hrcouncil.ca/hr-toolkit/planning-succession.cfm)

Lesson 10 production, operation and location

I am still working on my $ 100.00 challenge. I continue to place the ads on the OLX site to sell second hand articles. This week I made one sale.

Google co-founder Larry Page provides several tips for entrepreneurs. (Mai 1, 2002)

 Tip 1: Just don't settle.  Especially with employees, it is very important to find great people you are compatible with.

Tip 2: There is a benefit from being real experts.  Experience pays off.

 Tip 3: Have a healthy disregard for the impossible.  Stretch your goals.

Tip 4: It is OK to solve a hard problem. Solving hard problems is where you will get the biggest leverage.

Tip 5: Don't pay attention to the VC bandwagon. Don't start a company just because you can.  Instead, have a really good idea that is good regardless of the funding situation.

Acton Hero - Catherine Rohr

Catherine Rohr is a woman who has never rejected a challenge. She likes to turn a no into a yes. She found that has great persuasive power and can use its persuasive skills to influence society for good than to use them for her own agenda.

This woman went from being a successful Wall Street financial analyst to “the founder and CEO of Prison Entrepreneurship Program, a program that connects senior business executives with inmates to connect them with values-based entrepreneurial training enabling them to productively re-enter society”.

Catherine had no idea that her real journey would begin in a visit to a prison. After this visit Catherine felt that God had shown him something else, she had seen something unexpected in these men and in the process she discovered something within herself, too. She said she:"I saw a tremendous opportunity in these men to leverage their strength, to build them up to be leaders in their community." 

lesson 9 - Finding Great People

I am continuing working in my $100.00 challenge. I am still working on my $ 100.00 challenge. I continue to place the ads on the OLX site to sell the second hand articles. This week I made two more sales.

  From the speech “Journey to Higher ground” by Elder Joseph B. Wirthlin the quotes that stood out this week were:

“But those who journey to higher ground and keep the commandments of God “are blessed in all things, both temporal and spiritual; and if they hold out faithful to the end they are received into heaven, that thereby they may dwell with God in a state of never-ending happiness.”^…” Those who journey to higher ground love the Lord with all their hearts. We see in their lives manifestations of that love. They seek their God in prayer and plead for His Holy Spirit. They humble themselves and open their hearts to the teachings of the prophets. They magnify their callings and seek to serve rather than be served. They stand as witnesses of God. They obey His commandments and grow strong in their testimony of the truth.

They also love Heavenly Father’s children, and their lives manifest that love. They care for their brothers and sisters. They nurture, serve, and sustain their spouses and children. In the spirit of love and kindness, they build up those around them. They give freely of their substance to others. They mourn with those that mourn and comfort those that stand in need of comfort.

This journey to higher ground is the pathway of discipleship to the Lord Jesus Christ. It is a journey that will ultimately lead us to exaltation with our families in the presence of the Father and the Son. Consequently, our journey to higher ground must include the house of the Lord. As we come unto Christ and journey to higher ground, we will desire to spend more time in His temples, because the temples represent higher ground, sacred ground.”

From the Acton Hero about  Matt Stewart, Stewart diverged from a career in the legal profession. He started over 13 companies, 52 corporations, and 6 different industries all the country of United States. He sold business, had successes and failures along the way but the ones he failed were the one he tried to make money on it and the ones he succeeded, that have generated revenue for him were successful because they were focus on their mission.

It was when he lost his job while in college that he started his painting company. He started hiring paintings, managing paintings, selling to customers, and was in that time that he learned integrity, where he learned his value system changing his life.

One think that he pointed was a employee that was killed on the job, e apesar da luta interna, ele tirou do incidente uma lição e aproveitou para fazer melhorias na industria em que estavam inseridos.

His mission is to be the greatest professional learning experience that any of his team members ever have in their entire life. As he said “Entrepreneur is it a great way to leverage who you are, or who I am and turn it to something that other people can latch on to. To drive my personal values into my business values, into my employees. That is the power of entrepreneurship, and that it what caries to our success”.

Lesson 8

I keep working on my $ 100 project "Fabulous Exchanges". I have continued to promote my products on OLX website and have managed to sell a few.

So far I could already sell 5 items.

One thing that stood out for me was the Leadership Style Survey, in my survey I wrote:

 One of the principles that most characterizes me is being a good listener. Even in leadership positions I like to listen to all stakeholders, reflect and then, and among all make the best decision. However, in my circle of action, the culture is very important and it pains me to see someone who does not fit in the culture, even after being taught again and again. For me it is important the union team which I belong, because that makes us strong, communication becomes better and the projects progress more smoothly.

I think that although we have a kind of leadership marked as Delegative Style or as Participative Style, there are times when we have to use the Authoritarian Style. We do not want it to be nothing dominant, because it is not the more assertive style, and  what we want is that everyone has the opportunity to grow with the leadership style we use.

The two features that stood out were the participative and the Delegative, so I think my kind of leadership is developing in order to be a Delegative leader. As a person I am determined, I like to achieve the goals I set to  myself and I like to feel the team spirit when we are working together and see the results of this team effort. Fortune magazine's quote on leadership says, “Great business leaders ought to reveal all the traits of a great lover-passion, commitment, ferocity. Nothing less will do.”

I think my kind of leadership still has a lot to improve if I want to be more like Christ, and to see people with the potential that Christ sees them.

Christ exercised his leadership with wisdom, patient, pleading, and love. He ministered to others beyond the call of duty and he cared about the freedom of his followers to choose (with the responsibility that that choice brings), and he lead by example.

As Vince Lombardi, stated  “Leadership is based on a spiritual quality, the power to inspire, the power to inspire others to follow.” It is a good virtue, the power to inspire, and the power to inspire others to follow something “important”.

I think this quote tell us a lot about leadership , as it says that leadership is “the power to inspire others to follow something “important”.

I want to be that kind of leader. The leader that Leo C. Rosten wrote about  “I think the purpose of life is to be useful, to be responsible, to be honorable, to be compassionate. It is, after all, to matter: to count, to stand for something, to have made some difference that you lived at all.” The gospel teaches is that we are special and we have attributes divine to develop in this earth. It is a process during this life and the next life to become like our leader, our Heavenly Father and His Son Jesus Christ.”

About the Acton Hero: Ken Solot, I toke some notes “One of the values ​​that he brought from his childhood, he was transmitted by his parents taught him that all people are special and responsible. He took this lesson to his adult life and his professional career.

Ken Kolot spoke about the importance of realizing that, as a business that owner you are, you are working with special people, who have their own qualities and assets, and that they comes with these assets to you.

The biggest question that this entrepreneur does in every business, and which I can take advantage for my future professional life, is to ask "Who cares?", "Why?" or "Who are these people?" in all every new or existing enterprise business to be done. You have to ask yourself what is the problem you are solving for your customer.

One of the things Ken emphasized is that it is important to have empathy to understand the needs of the clients and then offer means to improve the life of that client or the client's community.”

Love your Customer

From my $100 challenge, I already sold two used school books of the 12^th grade to two different customers. The first book “Computer applications” was sold by $10 to a customer from Figueira da Foz. The book was sent by mail to the client that paid  the shipping costs .

The second book was “Mathematics” of the 12^th grade, and was sold by $13 to a customer that met with me to do the transaction.

I already made $23 for this challenge.

From "Defining the JetBlue Experience" by David Neeleman of the JetBlue Company:

As Neeleman said, they spent 4.5 years defining the customer experience, and they tried to put their money into things that mattered to people. Food is one example: “I have never heard a single soul say that they haven't had a good meal, and so they'll book an airline ticket”. During a year, they serve 10 million customers.” If we'd spent $5 on a meal for each customer, we'd have spent $50 million of food that wasn't appreciated. So we use humor to inform people that there won't be full meals, and we provide snacks at 17 cents apiece. We knew that televisions would be memorable. I remember one of the happiest days when we were starting JetBlue was when we found the company who installs direct TVs in planes. I wanted to give people control on an airplane. The cost of implementing the televisions was a fraction of the cost of serving full meals. Cleaning the airline was another example. And helping customers put bags away, to improve the gateway time.” I liked how they improve the customer service by serving them well.

From the entrepreneur Bud Brigham: The advice he gives to us is that we may study philosophy, or religion, or develop a core philosophy of life, in what we establish our value system to find out why we are here.

Other advice is that when we look around and see that we are surrounded by the smartest and brightest people that we are absolutely critical That You're surrounded by the most brilliant, hardworking people that you may know, but more important than that is to be surrounded with people who have similar values our, the same core of philosophy that complement us and allowing us to work together.

My Elevator Pitch, "Keys to Increasing Your Likability” by Guy Kawasaki and Suggestive Selling

From my $ 100 challenge I did my Elevator Pitch video. I think it was very important to do it because it made me stand up for my $ 100 challenge.

This week I started to put the photos of the articles in the OLX in order to sell them. Mainly, the articles are text books of my elder son that went to mission. Because he do not need them anymore I thought It would be nice to sell them and earn some money with this sell. The scholar year is just beginning and parents are always looking for  cheaper text books for their children.

From “Keys to Increasing Your Likability” by Guy Kawasaki, he explained how "likability" is a main component of a person's ability to be enchanting. In this clip, Kawasaki shares three physical keys to increasing your likability: using a great smile, dressing for a 'tie', and offering the perfect handshake.

From Suggestive Selling I learned that small acts can bring a good improvement to our business.

“The idea behind suggestive selling is that instead of trying to increase sales by finding new customers, you try to sell more to the customers you already have. Even if you don’t think of yourself as a great salesperson, you can begin practicing suggestive selling immediately by trying two simple techniques.

Up selling Items

Up selling is a way of turning an ordinary sale into a larger sale filled with more expensive or more comprehensive products or services. For example, if customers come into your store dressed in swimsuits and sandals (obviously dressed for a trip to the beach) and ask for SPF-IS sunscreen, you can up sell by showing them your selection of SPF-30 sunscreens (higher-priced items) that will likely protect them from sunburns even better than the original product they wanted to buy. If the customers are persuaded by your up selling tactic, they will buy a more expensive product and will leave the store happy with their purchase and with the help they received from you. And you’ll be happier because you will have turned a small sale into a slightly larger and more profitable sale.

Bundling Items

You can bundle items by doing one of two things: (1) combine several related products or services and try to sell them all together at a price below what the total price would be if the customer bought all of the products separately, or (2) notice that a customer wants to buy a product and then spontaneously create a group of items that would likely appeal to the customer.

For example, if while helping the customer, you learn that she and her family will be at the beach all weekend long, you might suggest that she prepare even more for the weekend by purchasing a sun-shading umbrella, some beach towels, and a pair of sunglasses as well as the sunscreen.

Or, if you anticipate that many customers will want to purchase items from your store in preparation for water destinations, you might prepare a bundle of goods in advance and then market them to customers as a great package deal. “

These both principles can be used together .

Lesson 5 - Funding Your Business

For the challenge of $ 100 US dollars, the business that I chose is to sell second hands items on the Internet, on OLX site for the entire territory of Portugal.

To initiate my business I will not need initial capital, but more a computer with internet access and a way to photograph the object that I want to sell (mobile phone).

The goal is to place photographs of the articles that I intend to sell at the desired price, (which may be negotiable or not) with my contact in the OLX site.

The delivery of goods to the customer can be personally (matching the buyer if it is close to where I live), or by mail if for the rest of the country (paying customer shipping costs beyond the stipulated price of the item)

The payment can be by bank transfer (preferred) or in cash if we meet personally.

Since I will use the OLX site, I will not need initial investment.

Articles that I will sell are items that I have, that I intend to discard them and that can be of some use to someone.

If I would not sell these items, I would certainly give them to someone else or would lay them out. But I found that the trash of someone can be the treasure to someone else.

The first items that I am going to put on sale are the schoolbooks of my eldest son who went to mission. There are always families in search of cheaper textbooks when the school year begins. I hope to earn good money from these sales.

From the interview of Desh Deshpande there were some insights that I considered very important to retain:

Dr. Deshpande said: "All the things that you think you need, you really do not need." This is so true, sometimes we think we need something that really do not need.

He went on to say: "If you know of something that can be done, then you can do it, but knowing the opportunity that can be done is probably the greatest gift you can have."

When things go wrong, when we think it's the end of the world actually is not, and when we go over this phase, we feel much more comfortable in difficult times. When we think of the hard times, things are not as bad as it seems.

Setbacks serve to increase our comfort zone.

No matter the origin of the person, but the passion and optimism that the person does things, that's what makes things happen. Being optimistic is a good quality for having entrepreneur.

Dr. Deshpande talked about something we always talk to our children. When we are born in a place where we have all the comfort, usually we consider for granted, but it is not. Have running water on tap, turn on the switch to light that there is actually an advantage that we only value when we do not.

It is important to have notion of the resources available. What we need is motivation and aspiration to achieve.

HOW TO AVOID COMMON STARTUP MISTAKES and MY BUSINESS PLAN

 In his interview entitled “HOW TO AVOID COMMON STARTUP MISTAKES”,  John Gachiri  thought that making mistakes is part of the process of building a company; quickly recovering from them is what’s most important.

He gave 4 steps to avoid when starting a business:

Step 1: Stay on Target
A mistake often associated with the first step is signaled by an entrepreneur’s inability to clearly and concisely convey his idea. You have to be able to generate buy-in from investors, partners and potential employees, so nail down your “elevator speech” — what you would say if you ran into an important potential investor in an elevator. Try using a Twitter-like template to refine the essence of your concept into just 140 characters. Once you’ve done that, expand your message to a maximum of 500 characters. Remember, the shorter your pitch is, the clearer it will be.

An associated error is lack of focus. If your start-up has been tagged as “the next big thing,” the adrenaline rush that comes with building buzz can lead to impetuous decisions and a loss of a sense of purpose. Many entrepreneurs end up sprinting in many directions instead of taking assertive steps toward their target. Clearly define your goals and strategies, then establish a timeline. Don’t let the other possibilities or hazy dreams distract you from achieving your goal.

Getting too far ahead of yourself is also dangerous. If your product or service is still on the drawing board, don’t get sidetracked by plans for future versions. As a general guideline, looking two or three years ahead is best, but the nature of your business and feedback from your investors will help you determine just how far ahead you should plan.

Be flexible, because just as a lack of planning can be a problem, adhering blindly to your plan is a surefire way to steer your company off a cliff. A successful entrepreneur will constantly adjust course without losing sight of the final destination.

Step 2: Be Realistic About Costs
Don’t shortchange your start-up when estimating the funds you will require — you’ll just diminish your chances of success. Keeping your expenses under control is vital, but don’t confuse capitalization with costs. The playing field is littered with undercapitalized start-ups that were doomed from the outset.

In the late ’90s, David Neeleman told me he needed $160 million in start-up capital for JetBlue — a huge sum, far more than most entrants to the industry manage to raise. Most of the so-called experts scoffed at the notion that he would be able to find the money and launch a low-cost airline when established companies were failing one after the other, but he stuck to his guns and raised the money. As a result, JetBlue had one of the most successful airline launches of all time, and turned a profit only six months after its launch in 2000.

Step 3: Hire the People You Need, Not the People You Like
As tempting as it may be to staff your new business with friends and relatives, this is likely to be a serious mistake. If they don’t work out, asking them to leave will be very tough.

When Virgin starts any new business, we always hire a core team of smart people who already know the industry and its inherent risks. Take full advantage of the knowledge pool you’ve created; when a problem comes up, remember that nobody has all the answers, including you. One of your goals should be to find a manager who truly shares your vision, and to whom you can someday confidently hand the reins so that you can carry out the next step.

Step 4: Know When to Say Goodbye 
A great entrepreneur knows when the time has come to leave the CEO role. It’s seldom easy, but it has to be done: few entrepreneurs make great managers. In my own case, managing the daily operations of a business simply isn’t in my DNA. (Or, as I’ve said to friends, “It’s not bloody likely.”)

Stepping back doesn’t mean turning your back on your business. At Virgin, I’m always involved in the launch of a new business, and then I gradually hand over control to the new management team as it starts to jell. But no matter how long it has been since I was at the helm, if I see something that I don’t like, I’m not at all shy about making my thoughts known and asking some very pointed questions.

This week I started my business plan related to the $100 challenge:

MY BUSINESS PLAN by Maria Dimitrov

Executive summary

"Fabulous Exchanges" (FE) is a sales service of second-hand products that serve customers throughout the Portuguese territory. Customers are willing to pay for a second-hand product with quality (in good condition) and pay a lower price for it.  Our motto is customer satisfaction. The growth rate for "Fabulous Exchanges" (FE) is great, given the low initial costs. FE is headquartered in Maria Dimitrov’s house. The initial business plan with reduced costs will help in growing the business in the near future.

Objectives

The objectives of the "Fabulous Exchanges" (FE) in the first two years of operation include: Create a company based on selling second hand services to all the continental territory of Portugal using the internet as a platform to sell second-hand products to,

 # 1 goal, exceed customer satisfaction.

 # 2 goal, meeting the growing demand for second-hand products but with quality to families with low income or to customers that do not want to spend much for a product (which, in many cases, will serve its purpose only temporarily)

# 3 goal intended to circulate and give life to products which otherwise would not be used. In making this re-use of products we concern about the environment.

# 4 goal pretend to increase the number of sales by 12% per year.

Initially, I pretend to develop the business in my own home to have the lowest possible cost.

Mission

The mission of the FE is to provide the customer with a professional and fully reliable service. We exist to win and maintain our customers and to provide them with the best products to a good price by attending their needs. In the future we will move to a store.

Company Summary

"Fabulous Exchanges" (FE) will work in the area of ​​Odivelas through all Portugal, offering second hand products and shipping them if necessary by mail.  "Fabulous Exchanges" (FE) will be managed by Maria Dimitrov and is responsible for the planning, estimates, orders, and customer service management. It will be a sole proprietorship, at the moment but with the potential of growth in a near future.

Property Company

"Fabulous Exchanges" (FE) will be a sole proprietorship, owned by Maria Dimitrov.

Summary start-up

Initial costs include the equipment required for business based on your own home, initial legal fees and marketing fees. Office equipment includes a computer and a cell phone. The legal fees are used for the formation of the company. Marketing fees revert to the production of brochures.

As I will use the existing web page of OLX to sell my products I do not need to pay anything for it.

Services

"Fabulous Exchanges" (FE) will provide the selling of second hand products by Internet to potential buyers. The formalization of the deal will be done by phone and will be completed by bank transfer.

  When necessary, the products will be shipped to the customer by mail with the postage to be paid by the customer.

Market Analysis Summary

"Fabulous Exchanges"  (FE) " will target families with low income or potential customers that want to save some money by providing a quality and honest  service. Marketing our products by word of mouth, by internet, or by pamphlets to our potential customers,  and further promoting  discounts to our best customers .In a near future I will create an internet site to be explore for the customers, with all the information of services  prices, and forms of deliveries and payments.

Strategy and Implementation Summary

"Fabulous Exchanges" (FE) is promoting second hand products to competitive prices and quality.

Competitiveness

Our competitive advantage is based on a more efficient, quality, and speedy service to our customers. Professionalism is a skill that will be used to show our reliability and competence. We will build a relationship of trust between the company and the customer. This bond of trust will bring to our customer loyalty and also the subsequent referral of their friends.

Sales strategy

The sales process starts with our marketing campaign. This campaign will promote interest through our leaflets appealing. Important to show what sets us apart from our competition and how the expectation will be surpassed by the presentation of our services.

Sales forecast

It is a business that can be started right now. The first step is to photograph the items you plan to sell and put on OLX. Depending on the product quality you establish an attractive price to the potential buyer. The amount of available items will not be an initial problem because I have many items in good conditions I want to rid of them but that may be useful to others, especially families with children. For a near future the business will expand to the purchase and sale of second-hand items, so there is an amount in inventory able to cope with demand.

Summary management

"Fabulous Exchanges" (FE) is owned and operated by Maria Dimitrov. It will be formed as a sole proprietorship. Maria Dimitrov, founder and owner, has an experience in selling second good items occasionally, and saw the potential of this business. Maria is studying Business Management at BYU Idaho. Maria has experience in working as management team and sales for about 5 years.

Plan staff

The team will be composed of Maria working full time to "Fabulous Exchanges" (FE). Initially Maria will work both in the activity itself and by the end of the year, with the expansion of the business and moving to store will employ at least one employee, to stay in the store while Maria manages all the business. Over time you will need to hire an accountant.  After the demonstration of a reliable and steady work, wages will raise accordance with the company's profits. Maria will have paid a monthly salary. The rest of the profits will remain within the company.