Find The Biggest Smallest Niche

A niche is an area unoccupied by competitors. The biggest difference between a small business person and an entrepreneur is that a small business person starts a formula business (a restaurant, small retail or grocery store, etc.) something for which there is significant competition. An entrepreneur finds ways to avoid competition so he or she may take that same idea for that restaurant and combine that restaurant with some bizarre line of food that specializes only in wraps or drive-through salads. This allows them to find a way to be alone in their category. That's an entrepreneur.

Now, needless to say you need to have niche expertise. If you don't have it, that's ok. You can hire it or you can learn it. I prefer that you learn it. I prefer that whatever business you are in, you yourself be an expert in that businesses.

Who Are Your Customers?

A very tough step and a step that most people avoid is figuring out who your first three customers are. This is a question I like to ask guys that come to me for money (if I get that far). I'll say 'Alright. Who's going to buy this and why?' Tell me the names of the companies that will be your first, second and third customers. ... And I don't mean generically describe them. I mean, tell me who they are, who you know there and why that company is going to buy.

Hire Right

This is an area where people miss all the time. I'm a big believer in having a partner. It's important to have someone who at the end of the night you can pick up the phone and call them at home to commiserate. A lot of people miss this point. They go completely alone. And unless you have a confidante or a mentor it gets a bit hairy.

If you do or do not have a partner, make sure you hire people that compliment you. Find people that are the opposite of you.

Measure Results, Not Activity

I still get fooled from time to time by people who come to me and say 'Look at how hard I'm working. I worked until midnight last night.' or 'I burned the candle until 2 AM.' and I'll say ok - show me the baby, show me the results of that hard work. But there are still many people, myself included, who will fall for the 'look at how hard I'm working.' It's the "Cloud of Dust Theory". Guy kicks up a whole bunch of dust - stuff torn asunder. Then you say, where are the results? Show me the results of all that frenetic activity.

Don't Ignore Difficult Tasks

Generally speaking difficult tasks are the tasks that are going to advance the ball. And you should always be advancing the ball.

If it feels hard on the brain, then it's good. Did you ever lift weights or run to try and get yourself in shape? The best stuff is the stuff that hurts because that's when you are building muscle mass. The best stuff in business that you do is the stuff that hurts. It's the stuff that you would just as soon not think about but it's the stuff you've got to think about.

Life Is a Series of Daily Lessons

Every day that you get out of bed you are going to encounter X number of teachers. People that will teach you lessons. Some lessons you don't want to learn. A lot of lessons you don't want to learn. And lessons that you do want to learn. And you can chose to participate or opt out.

Once you decide to participate, then you have to decide wether you are going to value those lessons and incorporate those lessons into your own modus operandi. And if you get that right and you have the right teacher and so on and so forth then you might just accumulate some wisdom somewhere along the way. That wisdom can then be put to good use in decision making.

Because at the end of the day - I've said this a million times - all that I want in business is people that make a high percentage of good decisions every day. That's what I am looking for. Just give me someone that makes 60-70% of good decisions. 80% is better. 90% is even better than that. But give me somebody who makes more good decisions than bad and we'll go somewhere.

Give me somebody that makes a lot of bad decisions and give me a company that makes a lot of bad decisions and that company is going to go somewhere too... You'll be able to buy it real cheap on bankruptcy auction.

Life is lessons. Some of them are cloaked in mystery. Some of them are well concealed. Some lessons that I have learned, I didn't realize they were lessons until weeks, months, years later. Some lessons are oblique. Some are very very direct. But they are all learning experiences.