A New Era of Entrepreneurship

Whatever happened to the optimum size of the firm? You know the size at which the company was it’s most efficient? most productive” most manageable? Economies of scale did dictate making the firm larger UNTIL the company hit the law of diminishing returns meaning the optimum size had just been passed. It seems that somewhere along the line it was decided that the best way to compete in an evolving global economy was to keep getting bigger regardless of inefficiency and loss of control. Ironic isn’t it. Free enterprise following the example of bureaucratic Big Government. Build behemoths. If you get big enough there’s no way to get rid of you. But how? Well in order to make this happen create a wage pyramid so that those at the top who have very little idea what’s going on below them make outrageous salaries well beyond any possible contribution they can make to the organization. Sound good so far?

But what happens if things really do get negative? Don’t worry as long as you get big enough your cousin Big Government will have to bail you out. If small companies or individuals get hurt in the process they’re, well, collateral damage, just not as important as Big Business is to the world-expendable. This approach is pretty much out of touch with reality. Businesses do not last forever. Just look at the original list of the Fortune 500 to see how many have survived. In this era of 24/7 hyper-connectivity manifested in an ever increasing rate of change their life expectancy is going down. Size does matter but it’s becoming “Too Big to Survive”. Flexibility and Adaptability are the essential traits of business today. Social media is critical to deal with this new fast paced reality. The real watch words should be “Too Small to Fail”.  Entrepreneurs focused on opportunity, flexible enough to change quickly,, in touch with their business and all the key players are designed for the current environment.

Technology has opened up communication around the world making global business possible for small well lead companies who can gravitate to that desirable optimum size. For Big Business more independent divisions under a corporate umbrella, sized properly, will help but the era of domination by huge entities will weaken. Careers with one organization have already disappeared. We are a society of individuals. The most important skill for an individual will be the ability to create your own job. We are entering a New Age of Entrepreneurism.

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Ten Things Young Entrepreneurs Need to Know

This may well be the greatest era in which to be an Entrepreneur. A time when collective leadership is failing. A time when adaptability is critical. A time when large organizations are unwieldy and inflexible, belying the speed of change which is a dynamic of our lives. As a mentor I envy you the challenges and the opportunities. Here are ten things you should know and appreciate as you embark on an entrepreneurial career:

1. The most important skill to learn today is the ability to create your own job

2. The most dynamic, resilient team you will ever build may well be your first.

3. It can never be too early but you can leave it too late.

4. Youth makes you numb to risk that can cripple you when you are older

5. Live in a Quantum World where there are no limiting factors

6. Failure only happens when you give up. Learn from your mistakes but avoid failure.

7. Thrive on the chaos of your entrepreneurial startup. The excitement is unique and tangible. It may not happen again.

8. When you succeed mentor and nourish those just starting. You will not do it without help. Repay that debt.

9. Help foster entrepreneurship around the world. Too much talent is suppressed for reasons of race, gender, culture, education, location and more

10. There is no greater satisfaction than creating your own success but it is the process that we need not the project. Being an Entrepreneur is fulfilment of your talent and determination derived from how you go about it, not the reward.

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Common Startup Mistake-There is no fool like a busy fool

There are so many different levels of entrepreneurship, but from Tech to Mompreneur most of the business issues are common. For a starter, we all love growth. After all sales are the solution to all of our problems- at least on the surface. Patience is not an entrepreneurial forte. Increasing your top line feels good-it builds momentum – it motivates your team- it validates your idea. Maybe.

Buying market share is a losing strategy for a startup. It might work for an established company with deep pockets but even that is questionable. If you sacrifice margin to gain sales nothing else you do will produce a good result. It’s like starting a marathon twenty miles behind everyone else. You can run faster and work harder but you can’t win. Healthy sales growth comes from a unique product, a better product or superior service, successful entrepreneurs will find that better way. Sometimes we don’t know enough so study results and understand your numbers particularly margin. Regardless a loss leader reflects poor leadership and it’s still a loss. In the startup phase you can’t sustain losses for long. Plus losses are demotivating. There is nothing worse than working long hours only to find out that you are gong backwards. It undermines your leadership and your credibility. Your team can become demoralized. A loss from slow market penetration can be understood. One incurred in the midst of the chaos of rapid growth is difficult to comprehend.

It’s far better to run a lean ship, keep your costs down and build your top line on merit. Perhaps that’s old school but it’s prudent. Risk is part of the equation but reckless risk is overrated. You may know your product is exceptional but it takes time to prove it in the marketplace, especially when you’re immersed in all the challenges involved in your start-up. Your customers don’t care. If you down price they don’t expect it to be fatal for you. They assume that you know what you’re doing and besides it’s a short term benefit for them. It’s pretty simple: you’re expendable.

So hang tough on your margins and put yourself in a position to succeed. Otherwise you will become that storied “busy fool” and we all know there is no other fool like that one.

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Innovation versus Entrepreneurship

There is a misconception that all entrepreneurs are innovators and vice versa. There certainly can be an overlap but many innovators cannot implement their innovation. For every significant innovation there are thousands of entrepreneurs finding applications. The innovator has the idea. The entrepreneur puts it to work. It is the difference between development and application. A recent example is the iPhone/iPad- great innovations with thousands of applications being developed by independents. When the transistor was invented the innovators were solving a particular problem but overall they had no idea what would evolve from their innovation. The overall  result was the tech revolution still going on.

A fundamental difference is the focus- is it the project or the process? The innovator is immersed in the project-often finding a new approach to solve a specific problem. The entrepreneur thrives on the process of making things happen. Innovation takes entrepreneurs in  many directions. This is why tech is so critical to entrepreneurs and why the rewards for tech innovation are dramatic. Tech innovators who graduate to entrepreneurship are superstars. They are the high profile face which the public identifies as an entrepreneur. Steve Jobs was not a techy- he was a visionary who led his company to make things happen. He drove his tech support to produce the innovation that fulfilled his vision. In that sense he represents the ultimate entrepreneur. He identified the opportunity and knew enough to direct the development team into the innovation. He wasn’t satisfied until his vision did happen.

There are many different levels of entrepreneurship, more than ever in this age of mompreneurs and structural unemployment. The common bond is the ability to make things happen-the determination to do it yourself. As the 21st century evolves tech innovation will remain  at the epicentre but the ability to create your own job at any level will be the most important skill for the individual.

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Seven Factors Changing the Face of Entrepreneurship in the 21st Century

June 10, 2013

Entrepreneurship has never been more important as the global economy picks up speed  Here are seven solid reasons why the definition of an entrepreneur is expanding beyond the superstar expectations that we revere.

1. Big: Too Big To Fail is simply too big

2. Small: Small business creates local jobs for those structurally unemployed

3. Mompreneurs: Women are starting more small businesses than men

4. Control: The ability to create your own job is critical as job stability has been redefined

5. Adaptability: The dominant factor in our world is change. Small business is flexible

6. Need: Seniors can’t retire. Youth cannot find jobs. Startups are the answer.

7. Talent: If we choose to unleash it, there is so much talent suppressed around the world

The scope of entrepreneurship is expanding as problem solvers committed to making things happen offer solutions to problems that policy makers, awash in political infighting, are ignoring.

Fred Dawkins

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Exciting Times for Entrepreneurship

June 5 2013

The new normal based on a competitive global economy will be a boon period for entrepreneurs. Too big to fail really means too big to survive. Our fast moving world requires flexibility and adaptability. Ironically business has created behemoths more in the nature of bureaucratic government than independent free enterprise. Executives far removed from operations are paid huge bonuses for just holding their positions. In the west structural unemployment issues have compounded the diverging economic fortunes of the rich and the rest.

Small business with it’s local emphasis is the key to job creation and solving the structural issues. Localization will be important within the context of globalization. The ability to create your own job will become critical for many. Government needs to focus on education, funding and equality issues to unleash the power of entrepreneurs to dig in the corners and find solutions to pressing economic issues.  So for entrepreneurs who make things happen your tools will increase and you will be in demand.

We live in interesting times!

Fred Dawkins @fred

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What type of entrepreneur are you?

June 3 2013

The stereotypical entrepreneur is a risk taker, an overachiever and a formidable success. However, we’re not all superstars. As the importance of entrepreneurship increases the wide variety of forms it can take  becomes evident. You can even be a part-time entrepreneur finding your own balance. So who is the entrepreneur? The innovator who has the drive to found a company or the salesman that saves it through his determination to grow revenue? The answer- both with different strengths and different priorities. Not all of us are the total package.

The most fundamental difference in your form of entrepreneurship may well determine the path and nature of your success. Are you a generalist or a specialist? The former thrives on control making him or her a poor delegator who often settles for a weaker team. The generalist thrives on problem solving in a frenetic revolving door culture as staff parade through the office with every issue. Generalists are the masters of the lean start-up. While they welcome growth they are more likely to stay in the small business category. Not the superstars but job creators and stable part of the economy.

The specialist needs help early. They may be innovators but they need others to solve their business problems. Successful specialists are team builders who quickly learn to complement their strengths with those of others. Early days are a struggle but their companies often go further because they have to develop depth in their talent. A larger management group demands growth to support it. If the specialist can survive the higher cost start-up period his instincts and interest are likely to produce a larger company since it is founded on a culture of growth.

So which one are you?

Fred Dawkins

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Book Review

Book Review – The Kitchener Waterloo Record

TheRecord.com: 2020 Hindsight

Reviewed by Jon Fear, January 27, 2012

2020 Hindsight: The Year in Preview, by F.C. (Fred) Dawkins (Self-published, 354 pages, $19.95 oft

 Fred Dawkins of Guelph has written a clever and entertaining novel that looks just a few years into the future and plays with a few big “what ifs” that probably won’t seem so far-fetched to anyone with half an imagination who has been following the global political and economic scene in recent months.

First of all imagine that stem cell research has produced a way to stop humans from aging. And then imagine that the major Western governments, including those of the United States and Canada, have all but collapsed. Private militias control different regions and major cities such as Chicago, Toronto and Detroit are considered beyond recovery. One remaining source of power and influence in North America is the Mormon church, but another power centre is emerging at a community in the southwest called Nirodha that is protected by a private military force. Selected elites are moving there because Nirodha is home to the world’s only Extended Life Program. The thread that holds this fantasy together is the Wallace family. Dr. Gerry Wallace is the brains behind the program. Alarmed that the program’s goals are being subverted for political ends, his brother and other family members want to make the doctor see what’s happening. But even getting to Nirodha is a huge challenge.  

Dawkins holds an MA in Economics and has a website at www.fcdawkins.com. This is his first novel. This article is for personal use only courtesy of TheRecord.com – a division of Metroland Media Group Ltd.

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Now What? – The Journey to Find a Publisher:

All of us have a book inside, just screaming to get out. Of course we do. I knew that when I started. It couldn’t be that difficult. Two years later, after hours spent staring at a blank page, followed by extended   sessions of relentless padding to get the word count up, numerous plot changes and the creation of characters that came out of nowhere, I had it.  Five hundred and ten pages of insightful dialogue, my own creation. All my friends and family loved it. Getting published was inevitable.

Not quite. That was eighteen months ago, all spent enduring the dichotomy of never-ending evaluations combined with constantly hearing the lecture regarding the need for “shameless self promotion”.  Of course you must have a website, a blog and prepare an endless stream of submissions and query letters almost all of which will never be acknowledged. This masochistic practice of silent appraisal without feedback, leads to the inevitable conclusion that you have to self publish but under no circumstances use a ‘vanity publisher’ because that will seal your fate as a hopeless amateur. At this point confusion rules the day. You have no opinion that is remotely close to being objective, alternating between the fear that what you have produced is rubbish and the daydream of accepting the academy award for best original screenplay. Quiet evenings spent fanaticizing with your spouse about which of your favourite actors can play the key roles in your story. Weekends searching out potential publishers and agents, attending “how to” seminars on getting published, inevitably emphasizing that you are really on your own in a context totally unfamiliar, highlighting the adjective ‘self’ in that recurring, persistent theme of “shameless self promotion”.

Perhaps my favourite low point was a presentation by one of Canada’s most successful literary agents. She was quite blunt setting out the rules including:”Don’t ever send me anything other than an e-mail query letter. I get at least seventy five inquires a day. If I don’t like what I read in the first two lines I simply hit delete.” Then for emphasis, she stated with obvious pride:  “Incidentally I would have rejected The Da Vinci Code”. Now that’s encouragement. I still send her regular e-mails if for no other reason to keep her count up. So far my most brilliant prose, my most humourous anecdote, my most insightful analysis and my most heartfelt criticism of her methods, have all met the same fate she would have dealt Dan Brown – Delete! Delete! Delete!

Did you know that in this age of computerization there are far more books being generated than ever before? With total logic, in the face of this new flood of creativity, publishers have abandoned any attempt to assess unsolicited manuscripts. No longer are junior staffers assigned to look at unknowns. This is left to the few reputable literary agents in Canada and we all know how well that is working out.

Back to the drawing board, time to turn to the world of freelance professionals and get a frank assessment of the product. First was an evaluation by a professional editor with a $600 price tag, premised by the statement “75% of what I evaluate is garbage”.  Now waiting for that was tough. No-one wants to be classified as ‘garbage’ even if everyone else is – passed that one somehow. By the way, did I mention that the conventional wisdom is that a first novel should be 80,000 words and 300 pages, not 160,000 words and 510 pages like mine?  Remember all those nights padding the word count? Time to take those babies back out. Remember all those brilliant explanations included to save your less attentive readers from making incorrect assumptions- they have to go. “Remember ‘show’ the reader don’t ‘tell’ them. Let the reader discover for himself and also get serious:  pick up the pace!   Other than that you have something. Your characters don’t suck. Your plot is kind of interesting.” My freelance editor became my link to the industry, my literary personal trainer, part drill instructor, part sister confessor, she has kicked and coddled me down the road to self respect as an author and given me the will to put myself out there.

So now I was freshly inspired. With a little more effort, I might have something.  Five rewrites and numerous query letters later, I am there, ready to self publish. So what does this really mean? Well it means instead of having 20 photocopies of my manuscript I have spent a few thousand dollars to acquire 500 paperback copies that look and feel like a ‘real’ book.  This is certainly not ‘vanity’ publishing. Have I mentioned that after rewriting the book five times I now hate it with newfound passion?  Not really. It’s somewhat like the way you feel about your first born after three days of the runs and fifty diaper changes. You still love them but the ‘poop’ has got to stop.

So finally I get to shamelessly promote my book; 99,000 words of blood, sweat and tears.  I have learned so much and I want to do more. Like many others out there I am but a few reads away from reaching my goal. Look for me and my book at the VBA Arts and Craft Show and Sale November 5th

Fred Dawkins. www.fcdawkins.com @dawkinsfred

 

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