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.

The beggining of the $100 challenge

 From the 5 proposals that I submitted, the first proposal is the one that I will do as $100 challenge:

1^st proposal:

Selling second-hand items on OLX. OLX is a Portuguese site where we can sell second-hand items.

I think this business is able to meet the requisites of the $ 100 challenge because many people do not want or do not afford to spend the amount of money required for a new item. They do not mind to get a second hand item by a much lower cost. For those who have used items in good conditions and wants to eliminate them and earn some money, this is a good option. The estimated cost to start this business: $0.  This the proposal that I choose.

To start this project I have started shooting some schoolbooks of my son, who went to mission, and put on OLX so they can be seen by potential buyers.

I enjoy reading the book”Purple Cow, Transform Your Business by Being Remarkable” by Seth Godin :

Godin defines a Purple Cow as anything phenomenal, counterintuitive, exciting . . . remarkable. The purple cow is the kind of product, and so the product can stand, it has to be exceptional, particularly spectacular and unique. The fact that it is purple is because it is remarkable, worth’s talking about it.

Advertising campaigns in the media are no longer viable but develop an extraordinary product that promotes itself and makes people speak about it is.

B 283 second lesson impressions

One of these themes talk about wisdom. because it is a word that always impressed me and I always wanted to use wisdom in my life I had an interest in knowing more about this article.

Josh Kaufman in his blog ( https://joshkaufman.net/essays/)

 shares his impressions about the primary qualities of wisdom :

1. Understanding

"Understanding requires learning as much as you can about the world, cultivating curiosity about how things work, considering novel information, expanding your worldview, updating your mental models whenever you have new information, and noticing when you’re wrong, surprised, or confused so you can change your mind and use the information in the future."
2. Prudence

"Acting in ways that are likely to produce the best possible outcomes for everyone involved. It’s usually prudent to look out for the best interests of everyone, not just yourself."

3. Discernment

"Discernment requires deciding what you want to do and why, looking for subtle clues to determine what’s best and avoid false trails, paying close attention to avoid being mislead or deceived, and being cautious and self-aware when you want very much for something to be true or false."

4. Foresight

"Foresight requires taking the time to think through likely future events, acting in ways that prevent problems from happening in the first place, and making investments and decisions in the present to make the future better in some specific way."

5. Control

"Acting in ways that will lead to more of what you want, less of what you don’t want, and avoid major unrecoverable errors. Many a person – even the most “successful” people for various definitions of the term – has been brought low by failing to control their emotions and actions, or failing to act when action was necessary. Inhibiting and tempering hubris, arrogance, anger, and despair is necessary if you want to make good decisions. Even then, you don’t want to be too controlled, and overlook the value of flexibility, intuition, and fun."

6. Flexibility

"Avoiding being tied to a single, permanent, static way of thinking and acting. Many things are possible if you’re willing to consider all of the possible paths and change your strategy. Rigidity is fragile, and it’s easy to over-constrain your options in a way that forces poor decisions. On the other hand, you don’t want to be too flexible – compromising on something critical doesn’t help anyone."

7. Persistence

"Moving toward the future you want and overcoming errors and setbacks. Everyone wants to have great results, but few are willing to put in the effort necessary to get them. The most important and valuable things in life require effort, and it’s easy to give up too early. Almost everyone who achieves or builds something important or valuable puts in years, often decades, of focused energy and attention.
... As long as Discernment says the goal is still worth pursuing, the wise person keeps going."

No doubt that this is a blog to take into account during this semester noT only because of this article but also because the others presented topics.

Right know I am pondering what type of business Am I going to choose to meet the  $100.00 challenge.

It is Kind of hard, because this is completely new to me and I do not know exactly what can I do.

Last Lecture

Last lecture

When thinking of my entire journey along this course as someone that wants to start a journey in entrepreneurship, some thoughts of what I learned comes to my mind.

I learned with Jim Ritchie about Personal Constitution, when he made us think which is our personal constitution “I am financially self-reliant, I am physically fit, I am identifying my skills and talents, I am a product of what I eat, I understand the value of humor, I am a leader”, I am creative”, I am mentally tough, I am a communicator, I can motivate without depreciating others, and I am like the great enlightened masters of history”.

Other thing that I have learned was to turn the word "I can" in one of my favorite words and believe in myself, even when sometimes I may fail. We need to understand that we are going to try again and again throughout our life, because there is no error effort and short coming. This will help us see what we can do and what we still need to learn. Certainly after taking the first step, no one will ever say we did not do it because we were afraid, but we will gain experience and a chance to continue on this path.

One of the things I took away is that we need to stay motivated and have a good attitude no matter what. There will be a lot of obstacles in the way while we will achieve our goals, but having that fear won't get us anywhere.

 I also enjoyed the article from Handy that says that the idea of business is not about profit, but about people, about helping others. The reason for any business must be for the good of the people. Our customers are the most important in our business and it's them we are trying to impress. Any good business will profit if it is centered on the people it is helping. And here enters integrity. The gospel teaches us to be an integrity person. President Joseph F. Smith called integrity “the cornerstone of character”. “Your word is who you are.” Our life must be a life of integrity. A moral life is actually a much easier and happier life. Handy said, "Trust, too, is fragile. Like a piece of china, once cracked it will never be the same." To keep our good name, trust is needed in fact.

I learned to be proactive. According to the book of Ministry of Success, it is very important to be proactive, begin with the end in mind, do  first things first, think Win-Win, first think to understand, then to be understood, create synergy, and sharpen the saw. Trust assumes an important role in this process, persistence in doing what is necessary becomes easier, not that the nature of tasks change but the ability to do it increases.

I learn never give up and keep my focus forward. The life of an entrepreneur is not easy, but if we have a good attitude and work hard difficulties can be bearable. There will always be stones on the road, which will help us become better helping us grow as a person and in our business. But in this process we need always to be self motivated and never dishearten.