April 2008

Here is a food for thought just for you - have you ever wondered why people don’t want to listen to you?

Well, some people just don’t listen to you:

• Your family members
• Your friends
• Your colleagues
• Your employees

You see, the problem with the last two in the list - colleagues and employees is, that even if you are an influential person in your family and your circle of friends, you can’t always be an influential person in business world.

You might not want to agree with me, but in my opinion, the business world and the personal world are two different world. Yes, you can mix them - but most of the times it won’t work. And being influential in both worlds take practice and experience.

My own experience

In the past, I’ve been ‘bullied’ by my colleagues for being a passive person. I loved to wait and see. I didn’t have the guts to break the corporate culture and do what I think is right. Not much people dare enough to do so.

But, I learn from a relative that breaking the corporate culture might just be the right thing to do - she climbed the corporate ladder fast and left others in the dust - she was known as an influential person.

From others experience and mentorship, I finally on the right track to be an influential person. And being an introvert and a socio-phobia person, to be influential is a big milestone in my life.

How to be an influential person

Here’s a practical tip on how to be an influential person in both worlds:

• You have to initiate things - don’t sit in the corner and keep quiet.
• You have to be involved in social activities - busy in your own world just doesn’t help at all.
• You have to comment and communicate your opinion - people love to hear opinions; that’s why talk shows work.
• You have to be controversial - at least once in a while; controversies turn people’s head to you.
• You have to help others - genuinely.
• You have to lead by example - people just love doers.
• You have to be outspoken occasionally - don’t keep your opinion to yourself; by keeping it to yourself, others won’t know what values you have.
• You have to choose a side - you can’t stay in the middle of the road; it’s too dangerous.

Ivan Widjaya
Being influential

If you read blogs a lot, just make sure you visit BloggingMix.com.

To me, it’s some of the better, plain truth, blog about blogging.

No, this post is not a pay per post or paid to blog thing :) It’s my real personal experience in my visit to the blog.

Rocky or Rocai, the man behind the blog, really do a good job - very intriguing blog posts and, again, simple and plain truth.

While some other bloggers provide the usual and mainstream hints and tips on blogging, this blog really put things in different perspective and challenge you in your face. Reading the posts makes you say, “ouch!” - a lot - in a good way.

I found many posts are actually helping me in developing this blog and in growing me as a better blogger. His how-tos and lists-of-something are gold - original and you can’t simply find them anywhere on the Net. His reviews are fun to read and give you the right direction, like his recent take - I Didn’t Find ProjectWonderful Wonderful At All.

I truly recommend you visit his blog, BloggingMix, and profit from it to better you at blogging.

Ivan Widjaya
Plain truth blogger

A business must have an exit strategy. If things becoming too hot too handle, escape from it or face the consequences.

Well, there are so many tough and aggressive entrepreneurs out there. So tough, that many of them refuse to ‘give up’ when faced with adversities - disastrous cash flow, lackluster management, drowsy business, or backstabbing partner - even if they were destroying entrepreneurs’ life, let alone facing bankruptcy.

Of course, giving up is not good. But know when to stop worth more than gold.

There is a world of difference between giving up and having an exit strategy.

Giving up is when you react to problems negatively without even trying. Exiting is when you react to problems positively with proper evaluation and after trying anything an entrepreneur can.

So, for a quitter, just like me, here’s some tips on how to know when to quit - elegantly.

Plan to quit even before you start your business

One major, huge, mistake by entrepreneurs is to think that starting your business right will guarantee you success. Not always. In fact, only 1 in 5 startups survive beyond the first year of operation.

The essence of entrepreneurship is to succeed more than failing - failing 5 times is not a big deal if you succeed in 6 opportunities.

So, again, plan an exit strategy before you even start your business - this will actually save you from hard times later on and provides you with some kind of safety net to fall upon when anything goes wrong

Quit when your business is declining or being stagnant

It is apparent to quit as soon as possible if your business is declining, but even if your business is being stagnant for two or three years, then you should quit immediately. Businesses are meant to grow. Why? simple. Inflation devalue your asset, not mentioning a recession period will do to your business. Also, don’t forget about the rising price of supplies and workforce salaries. That’s why your business have to grow to cover the operating costs.

Quit when you lose interest in what you are doing

No passion, no business. Period. No matter how hard you work, if you lost interest in what you are doing, your business will ail. It’s time to let it go - sell it to someone passionate enough, and move on. Find a venture that will interest you at least up until the next 5 years or so.

Last advice - From my personal experience, you ought to quit if your family start nagging you about the family cash flow situation. Personal finances are the best indicator whether your venture well worth it or not. Sell your current business, and start a new one.

Ivan Widjaya
A dedicated quitter

Do you know what a MFA - Made for AdSense?

It’s a term that describes websites that are made optimised for Google AdSense. The layout and design of the websites allow the best possible location for AdSense ads to convert.

Well, there are also a Made for Google - that is, creating web applications that are created with a hope - that someday Google or Yahoo! might want it. FeedBurner and Blogger are the prominent examples of companies that are acquired by Google.

There are some rare real cases out there, but let’s take a look in a ’smaller’ case.

There’s a man, Gurbaksh Chahal - Not at Bill Gates’ prodigy level, but what he did is nearly as impressive. I found his interview from Entrepreneur.com.

In short, Gurbaksh Chahal dropped out of school at 16 to found the online ad network ClickAgents. Two years later, he sold it to ValueClick for $40 million in stock. Then, he started BlueLithium, a global onine ad network that implement behavioral targeting. In 2007, Yahoo! acquired the business for $300 million. And, he serial entrepreneurship plans more of this coming.

Impressive, indeed. Anyway, he is just 25 years old. His current net worth is more than $100 million. Do the math.

A tip or two from him, on how to create a company that is made for the behemoths:

- Of course, create something of high value - cutting edge, useful, web based technology with unlimited potential and be one of the top on the Net - this is the hardest part.
- To appeal to the likes of Google and Yahoo!, you might want to own a company that everybody wants that is not for sale.
- Make the behemoths realise that they needed you, not the other way around.
- Do a PR in such a way that Google or Yahoo! heard about your company from different sources in different ways - that will attract them to your company rather than you going to them.

Great tips. The next question is, how to find (and create) a cutting edge, useful, web based technology that will make you being chased around by Google?

Ivan Widjaya
Made for Google

There is one kind of web property flipping type that people hardly talk about on the Net.

I call the one who do it a flipper-developer - simple, he/she buy an ailing, undervalued, potential websites, ‘renovate’ them, and sell them on a higher price tag. Just like the ol’ real estate guy that buy ugly houses, renovate them, and sell them to market value.

Consider this: nowadays, what happen in the physical world, can happen online. Even there are people that live in the two worlds. For budding online entrepreneur, this area of website flipping is lucrative and different.

I tell you why. Regular website flippers will buy a website and sell it as the opportunity rises - without doing much of a work in developing and improving the website. There are also web property investors that buy a website, work on it, and keep it if possible - they would sell their portfolio if and only if the right buyer at the right price comes.

Those are not the case of flipper-developers - Their job is buying, RENOVATE, and sell it. Notice the capitals - that’s what flipper-developers do best - they do search engine optimisation, search engine marketing, building rep, building back links (increasing the number of sites linking back to their sites), upgrading and redeveloping, and many other activities that can improve the value of a website.

The selling part itself is not that hard - nowadays, people look for quality and proven web properties - not much buy on potential web properties - typically those that have high price tags with little or no income. Buyers want valuable web properties, and they want them NOW - high demand.

How to buy?

Find a marketplace where people buy and sell websites - try sitepoint.com, digitalpoint.com, or webmaster-talk.com.

Research, research, research - you will soon notice that some site owners are desperate to get their sites sold, for many reasons. Probe for reasons, check the validity of their offers (beware, scammers are everywhere), and value their sites right.

This takes a lot of practice. So again, research, research, research.

How to renovate?

Similar to those of real estate developers, you need a team - unless you are an expert Internet guy yourself, you need to outsource the work to others.

You need a web developer, an internet marketer, and a web designer - don’t worry though. You don’t have to hire them - seek freelancers who, in my opinion, are as good as the company guys. Your biggest part of the job is finding one.

Contract them per project basis - so both of you can have an easy exit if something goes wrong.

The aim of renovating is to make your web properties more valuable and more profitable. Don’t neglect any one of them.

How to sell?

Just like the way you buy sites - go to online marketplace, and make the listing there.

You can actually do the selling offline - do a classified ad or the similar to market your site.

Just make sure you deal for an exit route that is comfortable for you and your web property buyer.

What is next?

Well, the best route for entrepreneur is to learn by doing. Better yet, find a mentor to help you during your learning curve. This flipping-developing thing is lucrative, so take action to capitalise on it.

Ivan Widjaya
Flipper-developer

Buying and selling properties are mind game.

Either offline (houses, office buildings, stores, etc) or online (blogs, websites, web retail, etc.), properties involve a level of strategy to get better deals. Usually, the buyer gets better deal than the seller, due to the nature of the industry.

You usually sell to cash in your assets. Set the price too high, buyers will go to other sellers. Period.

So, how to get higher price tag for your property sales?

If you can afford it, don’t list your properties for sale!

Having yours FSBO-ed actually reduce the overall value of your properties.

Consider this simple example - I look for FSBOs properties, and of course, I negotiate for price tags that are as low as possible. But if I fall in love in a property that is not FSBO, I’ll contact the owner and ask him/her whether his/her property is for sale - two possible answers:

1. No, thanks for the interest
2. Sure, if you want to, at the right price

You see, the second answer is tactical - as a buyer, I expect a higher than market value asking price - why? Logically speaking, I asked for it, not him! Because I want it, I have to prepare myself to put an offer higher than the appraised market value.

Get it? :) So, really, how to get higher price tag for your property sales?

1. Persuade your broker to disclose your property as an ‘insider’ property - not officially listed, but do offer as the right buyer comes - this will give the sense of scarcity and secrecy - people love it!
2. Don’t FSBO your property yourself - rather, ask your colleague or friend to mention about it to their clients and friends - word of mouth is powerful tool to spread the news without giving out the sense of urgency.
3. Related to number two above, don’t give the impression of urgency in your property sales - common things people do is to say “urgent! need money fast!” - so wrong! Your price tag will plummet accordingly.

Keep in mind that buyers are human, too - they react to the situation they are in. If they sense that you need the money badly, their offer will reflect this with lower than market value offer. Tease them a bit with secrecy and subtleness - and watch your price tag rises.

Ivan Widjaya
Property mind game

I love basketball - I am amazed how talented players are able to play under 48 minutes of high pressure basketball, let alone the aggressive home court fans.

I am also amazed how they manage their time - practice, travel throughout the season, family, personal… and entrepreneurship.

Entrepreneurship? Sure - US athletes are avid entrepreneur.

To highlight basketball, the presence of NBA has ‘monetise’ all aspects of basketball game and the players themselves. NBA is also a business school for rookie players and a business incubator for experienced players.

Each basketball player do personal branding - the better you are, the more exposure you have. The more ‘hype’ and ‘unique’ you are, your brand value rise accordingly.

Thus, NBA stars - let alone the elite club of superstars - are a great marketing material for endorsing a well-known, both sports and non-sports related, and for starting their own business.

Some donate their money. Some build a school or a community development organisation. Some just do the ol’ commercial thing - open a restaurant, open a fleet company, open a retail store, etc.

NBA players are entrepreneurs - and notably, social entrepreneurs - they understand how to build brand and start a business by capitalising their brand and money - often for the better of the community they involved in.

NBA players are good entrepreneurs - They know the value of hard work. They know how to deal with pressure on and off-court. They know how to carry themselves (well, most of them). Not all of them are entrepreneur by heart - but the environment they are in gives them all tools that are possible to make them good entrepreneurs.

Watch NBA playoff games - watch entrepreneurs battle on court!

Ivan Widjaya
NBA fan

My desire is to have businesses that runs on autopilot. Businesses that bring me passive income. Businesses that can be nurtured and grown without the need to get down and dirty.

I’m on my way - I pursue it - I love the lifestyle, the way to do business, the way to take direct action on my and my family future, and the way I use my time. Or, perhaps I just too lazy?

One thing for sure, I don’t like office work - I don’t like hanging around in office or having a business trip. I love trips for my businesses - not for others.

You can call me ego-centric, but in my humble opinion, entrepreneurs should have a certain level of ego. The ego is one of the driving factors for entrepreneurs to thrive.

Having a business on autopilot relates to your ego - You don’t want to work yourself - you want other to do it for you.

My father is a true office worker - I admire him being one, because I can’t come even close to what he does and how he works. I like what my father’s boss respond to my father’s inquiry. He was asked by my father, “How would you deal with this (business issues)?” He answers, “If I knew the answer, I wouldn’t need you to help manage my business.”

So true. That’s ego. That’s autopilot entrepreneur.

Business on autopilot needs highly competent people to run the business. The owner’s role is directing where the business will go.

Having business on autopilot is beneficial:

• You will have more time to direct the future of your business.
• You will have more time for your family or doing anything you are passionate about.
• You will have more time to seek other business opportunities.
• You will have more time to start other, autopilot, businesses.
• You will have more time to think about the most important - how to be financially free and live the lifestyle you want.

I’m on my way. I’m doing the best I can to get my business on autopilot. I don’t care what people say about this - “You need to work hard and get your hand dirty to be rich,” “you can’t do that - your business will crumble without you,” “You will destroy your dream by handing out the control to people relatively unknown to you,” etc.

I don’t want to think about broken window - the people I trust will fix it. I don’t want to think about running out of supplies - the people I trust will manage it. I don’t want to think about how much cash I have today - my accountant will do that for me.

What I really want to think is the customers - because customers is the real business. No customer means no business.

What I really care is how my business can sail toward the destination I and the market want.

I decide on calculated risk - I wouldn’t trap myself in work hard, play hard lifestyle - I like to work smart, play hard. I take the risk to release a certain amount of control to a caretaker. I choose caretakers carefully, because they are the people I rest a part of my business future on. Wrong decision will affect your business in years to come.

I love a different kind of challenge, and I believe that having other people supervising your business and manage the supervisors as well as the business are two of the most fun things in entrepreneurship.

Enough about me. What about you?

Ivan Widjaya
On autopilot

People tends to forget the essence of franchising - No, it’s not getting a proven system in exchange for a franchise fee and royalty - it is a definition of franchise.

The essence of franchising is networking.

That’s why owning a unit from a franchise that only has 5 units in total is not recommended - it’s even an absurd way to enter franchise industry.

A franchise true power is the ability to network with other franchise unit owners - the more, the better. Not only you can trade best practices on how to run your franchise unit, but also you actually can get some business from them, even do business with them.

Franchise owners are professionals and entrepreneurs - They usually have their own network and team. They have their own inner-circle members. You can enter the inner-circle by build a genuine relationship with them. You may reap what you sow later on.

The key is being nice and genuine - don’t approach them by doing what a sales and marketing person did - It’s useless, and they may avoid you all the way.

You may find that networking and doing business with other franchise owners are actually more lucrative than the franchise itself - so, I conclude that buying a franchise is like buying a membership to enter the network of business owners.

That’s why you have to buy a franchise unit that is NOT your hobbies or interests-based. Buy a franchise unit due to the franchise’s business and network potential. With tens of thousand units worldwide, a McDonald unit would be nice, but it is way, way much expensive for the rest of us.

How to network with other franchise unit owners

Do a basic business relationship building - have a general conversation early on, then move to business conversation later.

Tell them a bit about yourself, out of topic. They might interest in your personal life than the business itself. But, by doing so you will get their respect and trust - important in any business dealings.

Contact regularly with them - at times, request for a business lunch or dinner - schmooze them. Then, soon it might be the right time to offer some business opportunities or request for contact from their inner-circle.

The basic rule of thumb, profits each other - don’t ask them something and not giving back to them in return. And, oh, don’t forget about timing - it’s very important.

There’s there :)

Ivan Widjaya
Franchisee networker