Serious Entrepreneurs Need To Understand That Being Smart Is Simply Not Enough!
Any idea “how many ” MBA types not only open (or or offline) new businesses (every year) and then eventually earn a real sustainable profit? Me either, but you have (no doubt) heard and unfortunately will continue to read and hear about that staggering statistic which reveals that 88% of all new businesses (on or offline) will be closed within 60 short months (five years) or less!
You’ve heard those dreadful stats,right? Well guess what, some of those failed entrepreneurs were incredibly smart (and I might add) extremely well educated men & women!
That’s correct! Some of those well educated Harvard MBA and Stanford educated men & women failed in business just like so many others do! So if the failure rate among them is at an alarming rate!
What does that say about the rest of us, if we don’t happen to have a prestigious degree from the likes of the famed “Wharton school of business ” or good old Harvard and or some other well respected Ivy league house of knowledge!
Well, let’s get something straight, your long term chances for success in business and or likelihood of failure in the business (make that) the passion of your choice, has far less to do with whether or not you graduated from this Ivy league school or that one and or whether or not you’ve got super intelligence or not!
If it did, far more incredibly bright men and women with prestigious degrees in hand, would have far better track records in business, don’t you agree?
For All The Serious Entrepreneurs That Think Being Smart Is Enough To Guarantee Success In Business!
(You Are In For A Rude Awakening!)
Just for clarity’s sake! No one is suggesting that being fairly smart and or super intelligent can’t be extremely useful assets to help you (not only start) but eventually grow a successful business or two!
But my friend, you will not simply hang your hat on the fact that you went to a really good school and got straight A’s in a classroom! Because if that’s the case,(unfortunately) you will quickly discover that a highly comfortable classroom setting is not the real world of business! (Not even close!)
Case in point: let’s suppose that you own a local retail nick knack shop. You sell wonderful little (rarely seen) items of joy in your area. And of course you get more than your fair share of local (positive) on or offline word of mouth buzz. And yes, a few of your best repeat customers are fairly active on social media and they routinely mention your business and even occasionally share your link etc.
But by in large, (entrepreneur) if you are under the misguided delusion that simply because you’re academically book smart, that somehow this will automatically translate into fabulous small business and or service provider success!
Think again! Because, the fact of the matter is,it most certainly will not! However, take a look at an all too common occurrence ( that practically) every small business owner ( but especially) a cash strapped retail small business owner encounters practically every day their offline business is busy attending to customers. Especially “brand new” first time customers.
After exchanging pleasantries at the cash register, your brand new “first time” customer pays and just after you and or one of your extremely valued employees and or associates hands them their receipt and their headed for the door!
You just dropped one of your “golden” (and least expensive) opportunities to nail down a potential (all important) repeat customer!Huh?
Entrepreneur, where is your passive residual income generating (money in the bank) VIP “bounce back” discount coupon offer? With an ever so slight marketing twist of course?
(FYI: In the interest of both time and space, for those of you not totally familiar with the basic marketing term “bounce back” offer, unfortunately, it will not be covered here! Just check out the link for immediate further clarification.)
You see a Mary plain Jane (vanilla) typical “bounce back” offer definitely beats the heck out of nothing! Granted: But one with a rather subtle marketing twist is even better! Don’t you agree?
Systematically Turn All Important New First Time Customers Or Clients Into a Powerful Long Term Money Making Asset!
Here’s how your typical “bounce back” offer with an ever so slight marketing twist would work; (remember this ) incredibly powerful and market tested strategy typically works best on ‘brand new” first time customers and or clients!
That being the case; no matter (how much or little) they spend the very first time that they shop at your store and or retail shop etc. You or your carefully trained staff (says as casually as possible!) “Oh BTW, Mr. or Mrs. first time customer and or client!”
Because of your purchase today, you’ve automatically qualified for a very special (exclusive bonus offer!) Say what? You have qualified to choose between two extremely exclusive offers! You can either:
1.) VIP new customer and or client exclusive offer # one: Take advantage of our exclusive (although extremely time sensitive) VIP “brand new first time customer” bounce back offer discount coupon.
Which entitles you to save 25% ( or X %off ) your very next purchase! Provided you come back to the store before the -hand written date- of no more than one month from the date it’s issued comes! Or it of course expires worthless!
2.) VIP new customer and or client exclusive offer # two: Or (better still) for just an annually renewable fee of just $7 dollars (or X!) they get this laminated card that entitles them to save 15% on every purchase for an entire year! Plus, automatically save 25% if they come in on their birthday and they save 20% off any purchase, (regardless of the amount!) even if it’s a close out sale and or being discontinued item as well!
Let Your Major Competitors Beat The Worthless Drum About How Smart Or Formally Educated They Are!
Plus, every time they bring a brand new first time customer (over 18) with them to the store, they automatically save 20% off their purchase, and that’s on top of the items sales price!
All that for just $7 dollars or X! And don’t forget, the card is renewable every year! Which choice (if any) would you choose? What’s important here is that you recognize the market tested strategy that’s being implemented here! Huh?
(It’s the old tried and true “alternative choice” marketing concept!) It doesn’t matter to you ultimately (whether) they choose A or B? It’s that they choose! Bingo! But if they happen to choose B, then you know their committed to shopping there more often!
So in the end, hopefully you can see and truly appreciate, really successful entrepreneurs don’t have to be smart! They just need to be semi decent marketers! Don’t you agree?
Please list at least two simple spin off concepts (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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Mark i have very mixed feelings about this topic. Whether or not formal education will help someone become successful at opening a business. I personally have my Bachelors in Business with a focus in Entrepreneurship. I can almost promise you that your everyday person starting a business cannot properly read a balance sheet, income statement, cash flow statements, Statement of retained earnings, the list goes on.In addition to understand proper legality topics and HR practices to successfully launch a business. Not saying it can’t be learned or hire someone to deal with these things BUT I know for a fact if you receive a degree in the subject you do have a few extra steps ahead. I have successfully create and sustain an S-Corp and a LLC here in California. I know for a fact if I did not receive my degree in entrepreneurship i would have failed miserably on launching these businesses no matter how much drive I had for it. In my personal belief the word entrepreneur is thrown around way to much. With formal education I have learned what it takes to launch a successful venture, obtain investment money from angel investors and VC’s, properly file paper work – tax papers – contracts – workers comp – insurances – payroll and set up accounting sheets. There is a lot more than simply launching a website or selling crafts on the side to become what now people think entrepreneurship is.
BUT with all of that said. . . . . I DO believe ANYONE no matter you background, race, sex, political beliefs, schooling completed, etc can become an Entrepreneur. Just because I have a piece of paper called a degree that says i have excelled in a topic, does not make me anymore able to launch a business successfully and create residual income. Anyone with the passion, drive and determination with their heart and mind focused on one goal can do it.
Like i said i have very mixed feelings about this topic. I have a hard time when people say that anyone can do it without a degree because that makes me feel as if my formal education experience was worthless because it was not. I am not saying you said that or even hinting at that 🙂 Just saying as what it can come off as commonly. I have heard this “debate” many times on dozens of blogs, forums, networking events and general conversations haha. There is not a right or wrong answer. It takes what is in your heart 😉
I really enjoyed reading your article and will return soon!–Kyle
Kyle Nelson recently posted…Are You A Morning Person?
My friend you have most certainly nailed it!
Because what I’m referring to is exactly what you articulated so well! I’m just expressing it differently!
Meaning; let’s take two people, one graduates with honors and has a Masters Degree in English! Are they book smart? Absolutely!
Now then, the other just finished HS with a “C” average. Neither one has ever thought about owing their own business.
Both jump in and go all out, without having any prior real world experience with any of the necessary training that you just mentioned! My best guess is,
both are likely to eventually fail miserably! For a myriad of reasons!
That’s the real comparison that I’m making! Not to suggest, someone such as yourself, with not only the proper formal educationand training and
right think outside the box entrepreneurial thinking, would necessarily have a hard time!
But anyone with no prior training, but mistakenly believes, that simply because they’ve got a degree totally unrelated to
any given subject, is going to make it simply because of their academic prowess! They’re in for a rough time!
And by the same token, no serious small business owner and or service provider, without developing the necessary skills!
Their chances for real long term success are almost nil! So I think we’re both basically saying the exact same thing!
Just expressing it differently!
Also, it’s sort of like saying, just because you graduated from law school that automatically means you have enough
academic smarts to build a state of the art “sales funnel” of some kind!
Which without the proper training and or real world experience! I seriously doubt it!LOl!
So that’s why I say, it’s not about being book smarts per se!
It’s about what you learn and how effective you implement it! That will level practically any playing field!
In any event, I definitely appreciate your honesty and extremely valuable real world insights!
And for your continuous support as well! And like you, I too feel the the true spirit of the word “entrepreneur”
gets thrown around far more than it’s actually deserved!Thanks your points were spot on!
Fascinating thoughts Mark. So here’s a question from me. If 88% of businesses fail, is the way we teach businesses to prospective owners flawed? Do we have to adapt the techniques to now, rather than what was current and worked in the past? I understand even the top universities are 7 years behind what currently works, so that would indicate that they are only just teaching social media and blogging.
If so many entrepreneurs fail to succeed is it the fault of the entrepreneur or the system?
Sarah Arrow recently posted…Getting found by your ideal readers: Anchor Text and Bio Boxes
Wow Sarah!
Those are some great think outside the box” questions! Of course,
coming from you they really don’t surprise me, because you are without
a doubt, an incredibly original thinker!
I absolutely love your blog titles! They always inspire me to come up with a new or
at least creative wrinkle or two!LOL! Thanks!
I can’t say for sure what the real or best answer to your question is!
But I do know and realize that you’d better to listening to and following
the men & women that are actually in the trenches!
And not the Ivory tower theorists that only make their living giving lectures and speeches!
Great questions! And thanks so much for posing them and for your continuous support!
Both are greatly appreciated!
Hi Mark,
Thanks for shedding the light on the worth of formal education. I see far too many people staying stuck at he fear of not being smart enough. Regardless of their situation, everyone can look at where they are a genius–where do you excel, what special skills do you have, etc.
As you indicated, it doesn’t take a degree or some type of certification for you to be qualified. What
it takes is for you to realize where your brilliance is and you do that by asking, “where is my brilliance?”
Rachel Lavern recently posted…Gremlins Got You Trembling?
Absolutely Rachel!
in fact, how many academics teach child rearing, yet don’t have any kids of their own!
Or how many Ivory tower professors teach business classes, that have never actually had to
meet a payroll of any kind!
And don’t even get me started on the egg head career politicians that pass laws that never personally
affect them or theirs, and yet try to lecture the business community as to how or why you need to
do a thing a certain way!
Non sense! If they had to live under the same laws as they pass, lots of laws wouldn’t be laws!LOL!
But closer to Kyle’s point, it doesn’t matter what type of formal education and or lack thereof that you have.
Once you go into business and or manage one; you’ve got to rather quickly develop a whole set of skills
such as critical thinking and reasoning etc!
And if you don’t, you’re headed for the 88%!LOL!
As always Rachel thanks for sharing your real world insights and for your continuous support!
I definitely appreciate both!